1. To My
Presentation

2. Topic:
“Impact of Dividend policy on
firm Performance”
DIVIDEND POLICY
FIRM PERFORMANCE

3. Submitted By-
Neloy Kumar Roy
ID NO:2012010000297
Batch: 30th
Major: Finance
Southeast University,
Bangladesh

4. Submitted To-
Syed Abdulla Al Mamun,Ph.D., ACMA
Associate Professor & Director
School of Business Studies
Southeast University

5. The Topics will be cover:
Overview of the organization.
Objectives of the study.
Activities of General Banking.
Activities of Loans and Advanced Department.
Activities of Foreign Exchange Department.
Dividend Policy.
Impact of NCC Dividend on performance.
Recommendations.

6. Overview of the organization:
 NCC Bank started its journey as an investment
company back in 1985.
 Converted into a fully fledged private commercial
Bank in 1993 with the paid up capital of Tk. 39.00
core.
 At end of 2015 it is operating its activity through
104 branches with 22 authorized dealer branches
all over the Bangladesh.
 NCCBL started its DSE & CSE journey as a listed
bank from 2000.

7. Objectives of the study:
Primary Objectives:
• To merge with the practical
working knowledge with
Text book knowledge.
• To know the working
condition and how
employees make them fit
with the corporate culture.
Secondary Objectives:
• To know how the dividend
policy make impact on firm
performance.
• Knowing about the practice of
Banking in the Modern age.
• To have an idea of the existing
systems of all department that
practice by the NCCBL.

8. Functions of NCC Bank-
• Key functions of NCCBL are done through the
department wise.
Loans and Advanced Department
General Banking Department
Foreign Exchange Department

9. Activities through GB Department:
General
Banking
Current A/C:
Savings
Bank
Deposit
A/C:
Fixed deposit
Account:
Special
Savings
Scheme:

10. Activities through Loans and Advanced
Department:
Personal Loans:
House Building Financing
Car Loan:
Education Loan:

11. Activities through Foreign Exchange
Department:
Import section,
Export section,
Foreign remittance
section

12. Import Section:
L/C Letter of Credit:

13. Transmitting
the L/C
Amendment
of L/C:
Payment of L/C

14. Export section:
L/C
Advising of L / C:
Back to
Back
Foreign L/C:
Back to Back Local L / C:
Back to
Back L / C:
Foreign Remittance Section

15. Green Banking by NCC Bank:
Green Branch Sustainable
society
Green Finance
Green
MarketingAwareness

16. Dividend Policy
• Dividends may be in form of cash dividends in
which the company pays some cash amount
per share to share holder, or it may be in
terms of stock dividends, in which the
company issues new stocks to existing
shareholders in proportion of their existing
shares.

17. Theoretical Framework
Theoretical Framework
 Agency theory:
 Signaling Theory:
 Bird in hand theory:
 Dividend Irrelevance
Theory:
Prior Study on Dividend policy
 Dividend Policy Ratios has
an impact on Financial
Performance.
 Dividend Policy Ratios and
Financial Performance are
significantly correlated.
 All factors determine the
Dividend Policy Ratios is
significant

18. Conceptual frame work:
DEPENDEND VARIABLE
INDIPENDEND VARIABLE

19. Impact of NCC Dividend on performance:
Variables ROA EPS TQ
D/P Ratio 0.418766797 0.11325134 0.269361342
Correlation:

20. 0
0.005
0.01
0.015
0.02
0.025
0.03
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Series1
ROA
ROE
0
0.05
0.1
0.15
0.2
0.25
0.3
0.35
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Series1

21. 0
10
20
30
40
50
60
70
80
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Series1
TQ/Tobin's Q
0.85
0.86
0.87
0.88
0.89
0.9
0.91
0.92
0.93
0.94
0.95
0.96
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Series1
EPS

22. Recommendations:
Providing cash Dividend can boost the overall
performance.
Customer satisfaction
Product and services of the bank should be new,
competitive and innovative.
Ensuring of fastest services for customers
ATM Booth should need to be all over the county
with 24/7 facility.
Interest rate should be flexible to attract more
clients.