This study attempts primarily to measure the financial performance of some selected private
commercial banks in Bangladesh for the period 2006-2011 and to identify whether any relationship exists
between a bank’s years of operation and its performance. For this purpose five banks have been selected from
different generations. The financial performances of these banks have been scrutinized from the following four
dimensions: (1) profitability (2) liquidity (3) credit risk and (4) efficiency. The study concluded that there is no
specific relationship between the generation of banks and its performance. The performances of banks are
dependent more on the management’s ability in formulating strategic plans and the efficient implementation of
its strategies. The study findings can be helpful for management of private commercial banks in Bangladesh to
improve their financial performance and formulate policies that will improve their performance. The study also
identified specific areas for each bank to work on which can ensure sustainable growth for these banks
A STUDY ON THE FINANCIAL PERFORMANCE OF FOREIGN COMMERCIAL BANKS IN SRI LANKA...ectijjournal
Banks serve as backbone to the financial sector, which facilitate the proper utilization of financial
resources of a country. The banking sector is increasingly growing and it has witnessed a huge flow of
investment. The banking sector of developing countries is different from the developed countries in term of
performance. The banking sector, especially commercial banks of Sri Lanka plays a vital role in the Sri
Lankan economy. The focus of this study was to investigate the financial performance of foreign
commercial banks in Sri Lanka. Many studies are conducted in different countries to study the financial
performance of banking sector using the various statistical methods. In this study, the CAMEL rating
system is used to study the financial performance of foreign commercial banks in Sri Lanka. The study
selects three foreign banks for the analysis. Data was collected for the time period of 2008-2014.
According to the findings foreign sector banks are good in the performance of capital adequacy and
earnings while other variables show an average performance.
Analysis of Financial Health of the New Private Sector Banks in India throug...inventionjournals
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
Analysis of Internal, Market & Economic Based Financial Performance Measureme...IOSRJBM
The aim of this study is to investigate the financial performance of 10 commercial banks listed on Dhaka Stock Exchange. In this paper, financial performance has been measured by using three indicators. Internal–based performance measured by Return on Assets, Market-based performance measured by Tobin’s Q model (Price / Book value of Equity) and Economic–based performance measured by Economic Value adds. The correlation and multiple regression of annual time series data is used to find the impact of bank size, credit risk, operational efficiency and asset management on financial performance measured by the three indicators, The study rejected the null hypothesis and it is found that there exist statistically significant impact of bank size, credit risk, operational efficiency and asset management with ROA and Economic Value Added. On the other hand Tobin’s Q has insignificant impact on financial performance of commercial banks
Financial sector plays a pivotal role in the economic development, but, in recent time, it has witnessed that the World Economy is passing through some intricate circumstances as bankruptcy of banking & financial institutions, debt crisis in major economies of the world and euro zone crisis. The scenario has become very uncertain causing recession in major economies like US and Europe. The tempo of development for the Indian banking industry has been remarkable over the past decade. It is evident from the higher pace of credit expansion, expanding profitability and productivity similar to banks in developed markets, lower incidence of non- performing assets and focus on financial inclusion have contributed to making Indian banking vibrant and strong. Indian banks have begun to revise their growth approach and re-evaluate the prospects on hand to keep the economy rolling. It is generally agreed that a strong and healthy banking system is a prerequisite for sustainable economic growth. The banking sector has always been one of the important sectors for investment. In the time of uncertainty, some are arguing that the economies are in the process of recovery, and while others are opining that the world is set for another recession soon. In order to resist negative shocks and maintain financial stability, it is important to identify the Performance of Indian Banking Sector. The current study is mainly concerned with the analysis of Performance Of banking sector in India, that reflects the impact of new competitive environment on the bank’s performance in terms of various selected parameters. The article considered the variables like balance sheet operations, efficiency, profitability ,Capital Adequacy, Asset Quality, Sect oral deployment of bank credit, Technological Development, Customer services and Financial Inclusion for a period of 6 years from 2011 to 16. The Data was collected through secondary sources from Statistical Tables relating to banks in India. The results have found strong evidence poor profitability and inefficiency of managing the assets in the year 2016.
A STUDY ON THE FINANCIAL PERFORMANCE OF FOREIGN COMMERCIAL BANKS IN SRI LANKA...ectijjournal
Banks serve as backbone to the financial sector, which facilitate the proper utilization of financial
resources of a country. The banking sector is increasingly growing and it has witnessed a huge flow of
investment. The banking sector of developing countries is different from the developed countries in term of
performance. The banking sector, especially commercial banks of Sri Lanka plays a vital role in the Sri
Lankan economy. The focus of this study was to investigate the financial performance of foreign
commercial banks in Sri Lanka. Many studies are conducted in different countries to study the financial
performance of banking sector using the various statistical methods. In this study, the CAMEL rating
system is used to study the financial performance of foreign commercial banks in Sri Lanka. The study
selects three foreign banks for the analysis. Data was collected for the time period of 2008-2014.
According to the findings foreign sector banks are good in the performance of capital adequacy and
earnings while other variables show an average performance.
Analysis of Financial Health of the New Private Sector Banks in India throug...inventionjournals
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
Analysis of Internal, Market & Economic Based Financial Performance Measureme...IOSRJBM
The aim of this study is to investigate the financial performance of 10 commercial banks listed on Dhaka Stock Exchange. In this paper, financial performance has been measured by using three indicators. Internal–based performance measured by Return on Assets, Market-based performance measured by Tobin’s Q model (Price / Book value of Equity) and Economic–based performance measured by Economic Value adds. The correlation and multiple regression of annual time series data is used to find the impact of bank size, credit risk, operational efficiency and asset management on financial performance measured by the three indicators, The study rejected the null hypothesis and it is found that there exist statistically significant impact of bank size, credit risk, operational efficiency and asset management with ROA and Economic Value Added. On the other hand Tobin’s Q has insignificant impact on financial performance of commercial banks
Financial sector plays a pivotal role in the economic development, but, in recent time, it has witnessed that the World Economy is passing through some intricate circumstances as bankruptcy of banking & financial institutions, debt crisis in major economies of the world and euro zone crisis. The scenario has become very uncertain causing recession in major economies like US and Europe. The tempo of development for the Indian banking industry has been remarkable over the past decade. It is evident from the higher pace of credit expansion, expanding profitability and productivity similar to banks in developed markets, lower incidence of non- performing assets and focus on financial inclusion have contributed to making Indian banking vibrant and strong. Indian banks have begun to revise their growth approach and re-evaluate the prospects on hand to keep the economy rolling. It is generally agreed that a strong and healthy banking system is a prerequisite for sustainable economic growth. The banking sector has always been one of the important sectors for investment. In the time of uncertainty, some are arguing that the economies are in the process of recovery, and while others are opining that the world is set for another recession soon. In order to resist negative shocks and maintain financial stability, it is important to identify the Performance of Indian Banking Sector. The current study is mainly concerned with the analysis of Performance Of banking sector in India, that reflects the impact of new competitive environment on the bank’s performance in terms of various selected parameters. The article considered the variables like balance sheet operations, efficiency, profitability ,Capital Adequacy, Asset Quality, Sect oral deployment of bank credit, Technological Development, Customer services and Financial Inclusion for a period of 6 years from 2011 to 16. The Data was collected through secondary sources from Statistical Tables relating to banks in India. The results have found strong evidence poor profitability and inefficiency of managing the assets in the year 2016.
Evaluation of some private commercial banks in bangladesh from performance pe...ijmvsc
Banks operate on a huge scale at the heart of the modern economy and the banking system has become an
integral part in the progress of economic development in Bangladesh. Besides, the banking sector has
made their innovation and efficiency crucial to the economy as it competes in an e-commerce world. The
role of banking system in this situation cannot be denied at all. This report intends to evaluate the
performance of selected private commercial banks in Bangladesh. In the study, best efforts have been put
on evaluating the performance. The growing pattern of branches, employees, deposits, loans and
advances, classified loan, net income and earnings per share of selected private commercial banks has
been considered to make an analysis on the performance evaluation of the selected private commercial
banks. To evaluate the performance, data have been collected from the secondary sources. Then the
collected data have been analyzed. From the analysis, it has been found that all of the selected banks are
in a position to make a sustainable growth in respect of branches, employees, deposits, loans and
advances, classified loan, net income and earnings per share during the period of 2007-2011 with some
fluctuation. Besides the growth pattern, other forms of calculations have been used for every selected
variable and they are trend equation and square of correlation coefficient. Under trend equation analysis,
the variables named branches, employees, deposits and net incomes hold more positive value than the
other variables considered. As the value of the slope always shows the positive number, it is a clear
indication that Bangladesh has a very good prospect in case of private commercial banks
The profitability of commercial banks is influenced by a number of internal and external factors. This paper attempts to identify the internal factors which significantly influence the profitability of commercial banks in Bangladesh. In this study, profitability is measured by ROA and ROE which may be significantly influenced by the internal factors such as IRS, NIM, CAR, CR, DG, LD, CTI and SIZE of the bank. Data are collected from published annual reports during 2014--2018 of 23 commercial banks. Using simple regression model, it is found that CR has significant effect on the profitability and CAR has significant influence on ROA only. In addition to this, DG has significant effects on PCBs’ profitability (ROE only) where as IRS and CTI have significant influence on profitability (ROA only) of ICBs. Further, none of these variables have significant effects on the profitability of SCBs but CAR and CR are correlated with profitability (ROA only) and the causes may be the nature of services provided by SCBs to its clients. The internal policy makers should manage the influential internal factors of the banks in order to increase their profitability so that they can meet stakeholders’ expectations.
The Impact of Liquidity on Profitability on Selected Banks of Bangladesh Samia Ibrahim
This research seeks to establish a relationship between liquidity and profitability which may assess in liquidity management in the banks in Bangladesh.There has been a wide range of study on the concepts of liquidity and profitability. My research differs from the previous works as such research was not done in the context of Bangladeshi banking sector using recent data.
A STUDY ON IMPACT OF BARCODE AND RADIO FREQUENCY IDENTIFICATION TECHNOLOGY ON...IAEME Publication
Bar-code technology has now widespread that many customers take it for granted as this technology continues to offer infinite benefits in a wide extent of businesses. The theoretical frame work is intended to gain responses with maximum users about automation and optimization of production using Barcode and RFID; since there is a limited user of RFID, the researcher was supposed to go with barcode users only. This study observed the importance and implementation of Barcode in manufacturing industries, how it works and appreciates productivity, its influence over the manufacturing chain and about its integration among the different units and frames of this sector
A Dissertation Report On "Study Of Net Interest Margin {NIM} Of Selected INDIAN Public & Private Sector Banks"
Has Undertaken 10 Years Financial Data Of Selected Banks i.e. 2008-2017 for the Study.
The Effect of Capital Structure on Firm Performance: Empirical Evidence from ...inventionjournals
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
EFFECT OF CAPITAL ADEQUACY, EARNINGS QUALITY AND LEVERAGE ON ISLAMIC BANKING ...IJSB
The development of the economic system of a nation is closely related with the banking system of that nation. Islamic banking system has been introduced in every Muslim country. As a Muslim country Bangladesh was started practicing this non-interest bearing banking in 1983. This study focused on the determinants like capital adequacy, earnings quality and leverage those affect the profitability of Islamic banking. For this study researchers selected five Islamic banks and collected secondary data from the financial statements of the banks during 2011-2014. The study showed that capital adequacy and leverage were positively related with profitability but there was a negative correlation between cost to income ratio and return on asset (ROA) of the selected bank during that period. It is also found that the independent variables were sufficient to explain the changes of dependent variable ROA.
It's about the strategies that Radio Bhumi Bangladesh. Analysis of their Business Insight. Also some recommendation on their future strategy and goals.
Evaluation of some private commercial banks in bangladesh from performance pe...ijmvsc
Banks operate on a huge scale at the heart of the modern economy and the banking system has become an
integral part in the progress of economic development in Bangladesh. Besides, the banking sector has
made their innovation and efficiency crucial to the economy as it competes in an e-commerce world. The
role of banking system in this situation cannot be denied at all. This report intends to evaluate the
performance of selected private commercial banks in Bangladesh. In the study, best efforts have been put
on evaluating the performance. The growing pattern of branches, employees, deposits, loans and
advances, classified loan, net income and earnings per share of selected private commercial banks has
been considered to make an analysis on the performance evaluation of the selected private commercial
banks. To evaluate the performance, data have been collected from the secondary sources. Then the
collected data have been analyzed. From the analysis, it has been found that all of the selected banks are
in a position to make a sustainable growth in respect of branches, employees, deposits, loans and
advances, classified loan, net income and earnings per share during the period of 2007-2011 with some
fluctuation. Besides the growth pattern, other forms of calculations have been used for every selected
variable and they are trend equation and square of correlation coefficient. Under trend equation analysis,
the variables named branches, employees, deposits and net incomes hold more positive value than the
other variables considered. As the value of the slope always shows the positive number, it is a clear
indication that Bangladesh has a very good prospect in case of private commercial banks
The profitability of commercial banks is influenced by a number of internal and external factors. This paper attempts to identify the internal factors which significantly influence the profitability of commercial banks in Bangladesh. In this study, profitability is measured by ROA and ROE which may be significantly influenced by the internal factors such as IRS, NIM, CAR, CR, DG, LD, CTI and SIZE of the bank. Data are collected from published annual reports during 2014--2018 of 23 commercial banks. Using simple regression model, it is found that CR has significant effect on the profitability and CAR has significant influence on ROA only. In addition to this, DG has significant effects on PCBs’ profitability (ROE only) where as IRS and CTI have significant influence on profitability (ROA only) of ICBs. Further, none of these variables have significant effects on the profitability of SCBs but CAR and CR are correlated with profitability (ROA only) and the causes may be the nature of services provided by SCBs to its clients. The internal policy makers should manage the influential internal factors of the banks in order to increase their profitability so that they can meet stakeholders’ expectations.
The Impact of Liquidity on Profitability on Selected Banks of Bangladesh Samia Ibrahim
This research seeks to establish a relationship between liquidity and profitability which may assess in liquidity management in the banks in Bangladesh.There has been a wide range of study on the concepts of liquidity and profitability. My research differs from the previous works as such research was not done in the context of Bangladeshi banking sector using recent data.
A STUDY ON IMPACT OF BARCODE AND RADIO FREQUENCY IDENTIFICATION TECHNOLOGY ON...IAEME Publication
Bar-code technology has now widespread that many customers take it for granted as this technology continues to offer infinite benefits in a wide extent of businesses. The theoretical frame work is intended to gain responses with maximum users about automation and optimization of production using Barcode and RFID; since there is a limited user of RFID, the researcher was supposed to go with barcode users only. This study observed the importance and implementation of Barcode in manufacturing industries, how it works and appreciates productivity, its influence over the manufacturing chain and about its integration among the different units and frames of this sector
A Dissertation Report On "Study Of Net Interest Margin {NIM} Of Selected INDIAN Public & Private Sector Banks"
Has Undertaken 10 Years Financial Data Of Selected Banks i.e. 2008-2017 for the Study.
The Effect of Capital Structure on Firm Performance: Empirical Evidence from ...inventionjournals
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
EFFECT OF CAPITAL ADEQUACY, EARNINGS QUALITY AND LEVERAGE ON ISLAMIC BANKING ...IJSB
The development of the economic system of a nation is closely related with the banking system of that nation. Islamic banking system has been introduced in every Muslim country. As a Muslim country Bangladesh was started practicing this non-interest bearing banking in 1983. This study focused on the determinants like capital adequacy, earnings quality and leverage those affect the profitability of Islamic banking. For this study researchers selected five Islamic banks and collected secondary data from the financial statements of the banks during 2011-2014. The study showed that capital adequacy and leverage were positively related with profitability but there was a negative correlation between cost to income ratio and return on asset (ROA) of the selected bank during that period. It is also found that the independent variables were sufficient to explain the changes of dependent variable ROA.
It's about the strategies that Radio Bhumi Bangladesh. Analysis of their Business Insight. Also some recommendation on their future strategy and goals.
The report is originated in result of my internship, which I have done, as a requirement of BBA program. This report is done based on my three months internship in Janata Bank Limited.
During my stay at the office as an internee I never felt vague and ambiguous. The environment of the Janata Bank Ltd. is well and friendly. The staffs are specialized in their respective fields. Each of them works on their own and there id supervised from the top management. The motivation of the staff, I believe comes from the very sense of responsibility.
The Top Skills That Can Get You Hired in 2017LinkedIn
We analyzed all the recruiting activity on LinkedIn this year and identified the Top Skills employers seek. Starting Oct 24, learn these skills and much more for free during the Week of Learning.
#AlwaysBeLearning https://learning.linkedin.com/week-of-learning
A COMPARATIVE STUDY ON FINANCIAL PERFORMANCE OF PUBLIC SECTOR BANKS IN INDIA:...kishoremeghani
Banking sector is one of the fastest growing sectors in India. Today’s banking sector becoming more complex. The objective of this study is to analyze the Financial Position and Performance of the Bank of Baroda and Punjab National Bank in India based on their financial characteristics. This study attempts to measure the relative performance of Indian banks. For this study, we have used public sector banks. We know that in the service sector, it is difficult to quantify the output because it is intangible. We have chosen the CAMEL model and t-test which measures the performance of bank from each of the important parameter like capital adequacy, asset quality, management efficiency, earning quality, liquidity and Sensitivity.
Determinants of Profitability of Commercial Banks in BangladeshPremier Publishers
The paper examined the profitability determinants of private commercial banks of Bangladesh for the year 2014 and 2015. The study employed annual data for all the 11 private commercial banks of Bangladesh for the year 2014 and 2015. Multiple regression analyses were run to capture the significant determinants of profitability and to test hypothesis. The empirical findings from this study suggested that asset size and Net Interest Margin ratio had no significant effect on the profitability. But the impact of non-performing loans to total loans (NPL) on profitability was observed as the most significant among various variables. Furthermore, investment activities, mainly in shares and debentures of private sectors also have some positive impact on return on equity (ROE). The findings also suggested that diversified banking activities including the investment activities made these banks more profitable. Diversified banking activities are welcomed but if these activities include higher proportion of volatile trading activity rather than low risk income streams like fees and commission, the risk may become higher. The policy direction should be directed in such a way which will enhance the resilience and efficiency of the financial institutions with the aim of intensifying the sturdiness as well as strength of the banking sector.
Financial Performance Analysis of Bank of Bhutan Limited using Regression Ana...ijtsrd
This study analyses the financial performance of the Bank of Bhutan Limited BOBL . To measure the performance of BOBL, the factors affecting the profitability of the bank have been analysed. The data for the study are collected from the published annual reports of BOBL for the period of 2009 2020. Regression analysis is used to evaluate the financial performance of the bank. Return on Investment ROI is used as a dependent variable, and Return on Assets ROA , Total Expense Ratio TER , Loans and Advances to Total Assets Ratio LTAR and Spread to Total Deposit Ratio STDR are used as independent variables. The findings of the study indicate that TER has a positive relationship with the profitability of BOBL whereas LTAR has a negative relation with BOBL’s profitability. Hence, it is concluded that among four independent variables, ROA and TER had significant impact on the profitability of BOBL. Dr. Aaditya Pradhan | Mr. Ugyen Thinlay "Financial Performance Analysis of Bank of Bhutan Limited using Regression Analysis" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-7 | Issue-3 , June 2023, URL: https://www.ijtsrd.com.com/papers/ijtsrd58589.pdf Paper URL: https://www.ijtsrd.com.com/management/accounting-and-finance/58589/financial-performance-analysis-of-bank-of-bhutan-limited-using-regression-analysis/dr-aaditya-pradhan
Determinants of Banks’ Financial Performance: A Comparative Study between Nat...inventionjournals
Financial performance is one of the most critical factors having impact on the decision making of the resource providers. And thus to ensure the existence in the ever growing competitive business environment, every institution should be more concerned about the factors affecting their financial performance. This paper specially focuses on identifying the factors having impact on the financial performance of the commercial banks operating in Bangladesh. An effort has also been exerted to determine whether the extent of influence of various factors on financial performance varies with respect to local private and nationalized commercial banks. For this purpose 10 local private commercial banks (PCB) and all nationalized commercial banks (NCB) have been taken covering the period from 2008-2014. Here, data has been collected from the annual reports of the banks under consideration. To draw conclusion a multiple regression has been run by considering financial performance (profitability) as dependent variable and operating efficiency, asset utilization , liquidity, credit risk, capital adequacy and size of the company as independent variables. The study finds that asset utilization and operating efficiency have significant positive impact on banks' financial performance (profitability) whereas credit risk has significant negative impact. However, for PCBs asset utilization is the most critical factor to performance. On the other hand, result shows that in case of NCB 1 taka increase in credit risk is responsible for negative return of 0.968 taka. It is found that financial performance has no significant relationship with size and liquidity of the banks
A Study on Factors Influencing the Financial Performance Analysis Selected Pr...Dr. Amarjeet Singh
The growth of a country's banking sector has a significant impact on its economic development. The banking sector plays a critical role in determining a country's economic future. A well-planned, structured, efficient, and viable banking system is an essential component of an economy's economic and social infrastructure. In modern society, a strong banking system is required because it meets the financial needs of the modern society. In a country's economy, the banking system plays a crucial role. Because it connects surplus and deficit economic agents, the bank is the most important financial intermediary in the economy. The banking system is regarded as the economy's lifeline. It meets the financial needs of commerce, industry, and agriculture. As a result, the country's development and the banking system are intertwined. They are critical in the mobilisation of savings and the distribution of credit to various sectors of the economy. India's private sector banks play a critical role in the country's economic development. So The financial performance of private sector banks must be evaluated carefully.
The purpose of this study is to determine the factors that influence risk management, capital, GCG,
and efficiency on the financial performance of Islamic commercial banks in Indonesia. The population in this
study were Islamic commercial banks in Indonesia and selected by purposive sampling and selected 10 Islamic
commercial banks.
Impact on NPAs on the performance of UCO Bank: A Studyijtsrd
Indian banking sector has been facing terrible problem due to the deterioration quality of assets which is increasing gradually. The growth of NPA has a direct impact on the overall performance of the bank. The problems of NPAs not only affecting the bank but also affect the entire economy. The present study is analytical in nature and completely based on secondary data analysed by using accounting and statistical tools. The UCO Bank was established before the independence and worked successfully, but now facing various problems due to NPAs. In this above background the present study assess the financial strength, quality of loan assets and NPA management and also discussed the impact of NPAs on the performance of UCO Bank as well as the recovery performance of NPAs. Sanjay Dawn | Dr. Subhas Chandra Sarkar"Impact on NPAs on the performance of UCO Bank: A Study" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-2 | Issue-5 , August 2018, URL: http://www.ijtsrd.com/papers/ijtsrd18218.pdf http://www.ijtsrd.com/management/accounting-and-finance/18218/impact-on-npas-on-the-performance-of-uco-bank-a-study/sanjay-dawn
This paper empirically examines the impact of bank specific characteristics in determining the Islamic banking profitability in Bangladesh. Research period covers 2010–2017. Research method is a panel analysis. Fixed effects model is applied based on the Hausman test. The study takes return on assets (ROA) as the proxy of profitability. Company specific explanatory variables for the study are bank size, capital-to-risk assets (CRAR), investment-to-deposit (liquidity), non-performing investment (NPI), and cost-to-income. The study finds 4 out of 5 variables statistically significant. However, liquidity slightly misses the significance level. We have found CRAR and cost-to-income are negatively correlated, and liquidity is positively correlated to bank profitability as our expectation. On the other hand, estimation shows a negative correlation between bank size and profitability. Moreover, NPI is found to be positively correlated to ROA because Islamic banking industry’s very low percentage of non-performing investment (3.3%) could not inversely affect the profitability.
DETERMINANTS OF BANK PROFITABILITY: EVIDENCE FROM COMMERCIAL BANKS OF BANGLADESHMd. Shohel Rana
This paper attempts to investigate the impact of different bank specific
and macroeconomic variables on bank profitability by considering 23
commercial banks of Bangladesh based on data availability during the
period 2013-17. These data are collected from the individual banks
annual reports, Bangladesh Bureau of Statistics (BBS) and a variety of
publications of the Bangladesh Bank. The fixed effect model for panel
data has been applied to operate the regression analysis among the
variables. In the study, three identical measures of profitability namely
Return on Asset (ROA), Return on Equity (ROE) and Net Interest
Margin (NIM) are used. In the model for ROA, the result indicated
that earning variable (TIN, NII), and asset structure (DPST) have a
significant positive relationship with ROA, and asset quality (NPL) has
significant negative impact on ROA. For ROE, earning (TIN and NII)
and capital strength (CAP) have a significant positive relationship of
the entire explanatory variable with ROE. Only asset quality (NPL)
has significant negative impact on ROE. For NIM, earning variables
(TIN), capital strength (CAP) and liquidity (LTA) have a significant
positive relationship with NIM. This study find no significant impact
of the macroeconomic factors namely growth rate of GDP and rate
inflation and rate of interest included in the models on profitability.
For decision making and developing the performance of financial
organization in the future the findings of this study can assist the
investors, policymakers, management body and other stakeholders
Enterprise Excellence is Inclusive Excellence.pdfKaiNexus
Enterprise excellence and inclusive excellence are closely linked, and real-world challenges have shown that both are essential to the success of any organization. To achieve enterprise excellence, organizations must focus on improving their operations and processes while creating an inclusive environment that engages everyone. In this interactive session, the facilitator will highlight commonly established business practices and how they limit our ability to engage everyone every day. More importantly, though, participants will likely gain increased awareness of what we can do differently to maximize enterprise excellence through deliberate inclusion.
What is Enterprise Excellence?
Enterprise Excellence is a holistic approach that's aimed at achieving world-class performance across all aspects of the organization.
What might I learn?
A way to engage all in creating Inclusive Excellence. Lessons from the US military and their parallels to the story of Harry Potter. How belt systems and CI teams can destroy inclusive practices. How leadership language invites people to the party. There are three things leaders can do to engage everyone every day: maximizing psychological safety to create environments where folks learn, contribute, and challenge the status quo.
Who might benefit? Anyone and everyone leading folks from the shop floor to top floor.
Dr. William Harvey is a seasoned Operations Leader with extensive experience in chemical processing, manufacturing, and operations management. At Michelman, he currently oversees multiple sites, leading teams in strategic planning and coaching/practicing continuous improvement. William is set to start his eighth year of teaching at the University of Cincinnati where he teaches marketing, finance, and management. William holds various certifications in change management, quality, leadership, operational excellence, team building, and DiSC, among others.
As a business owner in Delaware, staying on top of your tax obligations is paramount, especially with the annual deadline for Delaware Franchise Tax looming on March 1. One such obligation is the annual Delaware Franchise Tax, which serves as a crucial requirement for maintaining your company’s legal standing within the state. While the prospect of handling tax matters may seem daunting, rest assured that the process can be straightforward with the right guidance. In this comprehensive guide, we’ll walk you through the steps of filing your Delaware Franchise Tax and provide insights to help you navigate the process effectively.
Premium MEAN Stack Development Solutions for Modern BusinessesSynapseIndia
Stay ahead of the curve with our premium MEAN Stack Development Solutions. Our expert developers utilize MongoDB, Express.js, AngularJS, and Node.js to create modern and responsive web applications. Trust us for cutting-edge solutions that drive your business growth and success.
Know more: https://www.synapseindia.com/technology/mean-stack-development-company.html
The world of search engine optimization (SEO) is buzzing with discussions after Google confirmed that around 2,500 leaked internal documents related to its Search feature are indeed authentic. The revelation has sparked significant concerns within the SEO community. The leaked documents were initially reported by SEO experts Rand Fishkin and Mike King, igniting widespread analysis and discourse. For More Info:- https://news.arihantwebtech.com/search-disrupted-googles-leaked-documents-rock-the-seo-world/
Affordable Stationery Printing Services in Jaipur | Navpack n PrintNavpack & Print
Looking for professional printing services in Jaipur? Navpack n Print offers high-quality and affordable stationery printing for all your business needs. Stand out with custom stationery designs and fast turnaround times. Contact us today for a quote!
"𝑩𝑬𝑮𝑼𝑵 𝑾𝑰𝑻𝑯 𝑻𝑱 𝑰𝑺 𝑯𝑨𝑳𝑭 𝑫𝑶𝑵𝑬"
𝐓𝐉 𝐂𝐨𝐦𝐬 (𝐓𝐉 𝐂𝐨𝐦𝐦𝐮𝐧𝐢𝐜𝐚𝐭𝐢𝐨𝐧𝐬) is a professional event agency that includes experts in the event-organizing market in Vietnam, Korea, and ASEAN countries. We provide unlimited types of events from Music concerts, Fan meetings, and Culture festivals to Corporate events, Internal company events, Golf tournaments, MICE events, and Exhibitions.
𝐓𝐉 𝐂𝐨𝐦𝐬 provides unlimited package services including such as Event organizing, Event planning, Event production, Manpower, PR marketing, Design 2D/3D, VIP protocols, Interpreter agency, etc.
Sports events - Golf competitions/billiards competitions/company sports events: dynamic and challenging
⭐ 𝐅𝐞𝐚𝐭𝐮𝐫𝐞𝐝 𝐩𝐫𝐨𝐣𝐞𝐜𝐭𝐬:
➢ 2024 BAEKHYUN [Lonsdaleite] IN HO CHI MINH
➢ SUPER JUNIOR-L.S.S. THE SHOW : Th3ee Guys in HO CHI MINH
➢FreenBecky 1st Fan Meeting in Vietnam
➢CHILDREN ART EXHIBITION 2024: BEYOND BARRIERS
➢ WOW K-Music Festival 2023
➢ Winner [CROSS] Tour in HCM
➢ Super Show 9 in HCM with Super Junior
➢ HCMC - Gyeongsangbuk-do Culture and Tourism Festival
➢ Korean Vietnam Partnership - Fair with LG
➢ Korean President visits Samsung Electronics R&D Center
➢ Vietnam Food Expo with Lotte Wellfood
"𝐄𝐯𝐞𝐫𝐲 𝐞𝐯𝐞𝐧𝐭 𝐢𝐬 𝐚 𝐬𝐭𝐨𝐫𝐲, 𝐚 𝐬𝐩𝐞𝐜𝐢𝐚𝐥 𝐣𝐨𝐮𝐫𝐧𝐞𝐲. 𝐖𝐞 𝐚𝐥𝐰𝐚𝐲𝐬 𝐛𝐞𝐥𝐢𝐞𝐯𝐞 𝐭𝐡𝐚𝐭 𝐬𝐡𝐨𝐫𝐭𝐥𝐲 𝐲𝐨𝐮 𝐰𝐢𝐥𝐥 𝐛𝐞 𝐚 𝐩𝐚𝐫𝐭 𝐨𝐟 𝐨𝐮𝐫 𝐬𝐭𝐨𝐫𝐢𝐞𝐬."
Cracking the Workplace Discipline Code Main.pptxWorkforce Group
Cultivating and maintaining discipline within teams is a critical differentiator for successful organisations.
Forward-thinking leaders and business managers understand the impact that discipline has on organisational success. A disciplined workforce operates with clarity, focus, and a shared understanding of expectations, ultimately driving better results, optimising productivity, and facilitating seamless collaboration.
Although discipline is not a one-size-fits-all approach, it can help create a work environment that encourages personal growth and accountability rather than solely relying on punitive measures.
In this deck, you will learn the significance of workplace discipline for organisational success. You’ll also learn
• Four (4) workplace discipline methods you should consider
• The best and most practical approach to implementing workplace discipline.
• Three (3) key tips to maintain a disciplined workplace.
India Orthopedic Devices Market: Unlocking Growth Secrets, Trends and Develop...Kumar Satyam
According to TechSci Research report, “India Orthopedic Devices Market -Industry Size, Share, Trends, Competition Forecast & Opportunities, 2030”, the India Orthopedic Devices Market stood at USD 1,280.54 Million in 2024 and is anticipated to grow with a CAGR of 7.84% in the forecast period, 2026-2030F. The India Orthopedic Devices Market is being driven by several factors. The most prominent ones include an increase in the elderly population, who are more prone to orthopedic conditions such as osteoporosis and arthritis. Moreover, the rise in sports injuries and road accidents are also contributing to the demand for orthopedic devices. Advances in technology and the introduction of innovative implants and prosthetics have further propelled the market growth. Additionally, government initiatives aimed at improving healthcare infrastructure and the increasing prevalence of lifestyle diseases have led to an upward trend in orthopedic surgeries, thereby fueling the market demand for these devices.
RMD24 | Debunking the non-endemic revenue myth Marvin Vacquier Droop | First ...BBPMedia1
Marvin neemt je in deze presentatie mee in de voordelen van non-endemic advertising op retail media netwerken. Hij brengt ook de uitdagingen in beeld die de markt op dit moment heeft op het gebied van retail media voor niet-leveranciers.
Retail media wordt gezien als het nieuwe advertising-medium en ook mediabureaus richten massaal retail media-afdelingen op. Merken die niet in de betreffende winkel liggen staan ook nog niet in de rij om op de retail media netwerken te adverteren. Marvin belicht de uitdagingen die er zijn om echt aansluiting te vinden op die markt van non-endemic advertising.
[Note: This is a partial preview. To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
Sustainability has become an increasingly critical topic as the world recognizes the need to protect our planet and its resources for future generations. Sustainability means meeting our current needs without compromising the ability of future generations to meet theirs. It involves long-term planning and consideration of the consequences of our actions. The goal is to create strategies that ensure the long-term viability of People, Planet, and Profit.
Leading companies such as Nike, Toyota, and Siemens are prioritizing sustainable innovation in their business models, setting an example for others to follow. In this Sustainability training presentation, you will learn key concepts, principles, and practices of sustainability applicable across industries. This training aims to create awareness and educate employees, senior executives, consultants, and other key stakeholders, including investors, policymakers, and supply chain partners, on the importance and implementation of sustainability.
LEARNING OBJECTIVES
1. Develop a comprehensive understanding of the fundamental principles and concepts that form the foundation of sustainability within corporate environments.
2. Explore the sustainability implementation model, focusing on effective measures and reporting strategies to track and communicate sustainability efforts.
3. Identify and define best practices and critical success factors essential for achieving sustainability goals within organizations.
CONTENTS
1. Introduction and Key Concepts of Sustainability
2. Principles and Practices of Sustainability
3. Measures and Reporting in Sustainability
4. Sustainability Implementation & Best Practices
To download the complete presentation, visit: https://www.oeconsulting.com.sg/training-presentations
Personal Brand Statement:
As an Army veteran dedicated to lifelong learning, I bring a disciplined, strategic mindset to my pursuits. I am constantly expanding my knowledge to innovate and lead effectively. My journey is driven by a commitment to excellence, and to make a meaningful impact in the world.
Taurus Zodiac Sign_ Personality Traits and Sign Dates.pptxmy Pandit
Explore the world of the Taurus zodiac sign. Learn about their stability, determination, and appreciation for beauty. Discover how Taureans' grounded nature and hardworking mindset define their unique personality.
Taurus Zodiac Sign_ Personality Traits and Sign Dates.pptx
The Performance Analysis of Private Conventional Banks: A Case Study of Bangladesh
1. IOSR Journal of Business and Management (IOSR-JBM)
e-ISSN: 2278-487X, p-ISSN: 2319-7668. Volume 12, Issue 1 (Jul. - Aug. 2013), PP 19-25
www.iosrjournals.org
www.iosrjournals.org 19 | Page
The Performance Analysis of Private Conventional Banks: A
Case Study of Bangladesh
Samina Haque
BRAC Business School, BRAC University, Bangladesh
Abstract : This study attempts primarily to measure the financial performance of some selected private
commercial banks in Bangladesh for the period 2006-2011 and to identify whether any relationship exists
between a bank’s years of operation and its performance. For this purpose five banks have been selected from
different generations. The financial performances of these banks have been scrutinized from the following four
dimensions: (1) profitability (2) liquidity (3) credit risk and (4) efficiency. The study concluded that there is no
specific relationship between the generation of banks and its performance. The performances of banks are
dependent more on the management’s ability in formulating strategic plans and the efficient implementation of
its strategies. The study findings can be helpful for management of private commercial banks in Bangladesh to
improve their financial performance and formulate policies that will improve their performance. The study also
identified specific areas for each bank to work on which can ensure sustainable growth for these banks.
Keywords: Private commercial banks, performance analysis, financial ratios.
I. Introduction
The banking sector of Bangladesh is comparatively larger than many comparable economies with
similar level of development and per capita income. The total size of the sector at present is 61% of GDP, which
is proportionately large for a country with a per capita income of only about US$870. [Source: Bangladesh Bank
Quarterly Review, 2011]
The Banking sector of Bangladesh is divided into four categories of scheduled Banks. These are
Nationalized Commercial Banks (NCBs), Government Owned Development Financial Institutions (DFIs),
Private Commercial Banks (PCBs), and Foreign Commercial Banks (FCBs). Of them, the commercial banks are
the most dominant one, accounting for more than 80% of all financial system assets. These commercial banks
are subdivided based on ownership as state-owned commercial banks (SOCBs), private commercial banks
(PCBs) and foreign commercial banks (FCBs). At present there are 43 commercial banks in Bangladesh,
comprising 4 SOCBs, 30 PCBs and 9 FCBs.
The banking sector of Bangladesh is continuously growing with new banks coming in every now and
then. Considering the year of establishment the banking sector of Bangladesh is classified in three generations.
Banks who have started its’ operation from the period of 1971-1990 are classified as first generation
banks. Banks incorporated from the period of 1991-2000 are classified as second generation banks. All banks
getting license from 2000 till now are classified as third generation banks. As such this study has taken sample
from all the three generations to get an overall idea about the financial performance of commercial banks of
Bangladesh.
As discussed banking industry is a vital part of the financial system in Bangladesh. Thus, its successes
or failure strongly affect the growth of the economy as well as its future prospect. In view of the above, a study
of financial performance of banks in Bangladesh is useful to various interest groups such as the government,
central bank and the community.
The study has been designed to measure the financial performance of some selected private
commercial banks in Bangladesh through financial rations and trend analysis for the period 2006-2011. The
selected banks have been evaluated from four dimensions: 1) Profitability, 2) Liquidity, 3) Credit Risk,4)
Efficiency. The trend analysis has been undertaken to identify whether these banks are moving forward and how
effectively these banks are coping up with the overall growth of other players in the industry. Moreover, the
sample has been taken from different generations of banks to determine whether there exists any relationship
between a bank’s years of operation and its financial performance.
II. Literature Review
Different authors across the globe have measured financial performance of banks based on different
techniques. Of which financial ratio analysis, trend analysis, CAMEL rating, are the most common tools used.
Almazari (2011) in his study measured the financial performance of some selected Jordanian
commercial banks for the period 2005-2009. The study used simple regression analysis. In the study, bank size,
asset management, and operational efficiency were taken as independent variable and dependent variable was
2. The Performance Analysis of Private Conventional Banks: A Case Study of Bangladesh
www.iosrjournals.org 20 | Page
taken as financial performance represented by; return on assets and interest income. The study concluded that
banks with higher total deposits, credits, assets, and shareholders’ equity does not always result in better
profitability performance.
Ashraf and Rehman (2011) compared and analyzed performance of Islamic banking and conventional
banking system in Pakistan by using of financial measures. The study analyzed the financial performance of
selected banks from five different dimensions; i) Profitability, ii) Earnings, iii) Liquidity, iv) Credit risk and v)
Asset activity for the period 2007-2010. The study concluded that the performance of Islamic Banks in Pakistan
is lagging behind on the basis of performance because of increased operating cost and inefficiency from the part
of management.
Kouser and Saba (2012) compared the performance of Pure Islamic banks, mixed banks and
conventional banks in Pakistan using CAMEL rating. The study revealed the following facts i) Islamic banks
have adequate capital and have strong asset quality compared to other banks in sample, ii) Islamic banks in
general have more competent management compared to conventional banks, iii) the earnings of Islamic
branches of conventional banks are greater than other banks.
Nimalathasan (2008) undertook a comparative study of financial performance of banking sector in
Bangladesh using CAMELS rating system. The study was done on 6562 Branches of 48 Banks in Bangladesh
for the financial year 1999-2006. The study revealed that out of 48 banks, 3 banks were rated 01 or Strong, 31
banks were rated 02 or satisfactory, 7 banks were rated 03 or Fair, 5 banks were rated 04 or Marginal and 2
banks obtained 05 or unsatisfactorily rating. 1 Nationalized Commercial Bank (NCB) had unsatisfactorily rating
and other 3 NCBs had marginal rating.
Chowdhury (2002) in his study portrayed the state of banking industry of Bangladesh. In his study he
emphasized that performance of banks requires knowledge about the profitability and the relationships between
variables like market size, bank's risk and bank's market size with profitability. The study shed a light on the
importance of performance evaluation of commercial banks in today’s world. The study concluded that the
banking industry in Bangladesh is experiencing major transition for the last two decades. The author
recommended that the banks should endure the pressure arising from both internal and external factors and
prove to be profitable.
Siddique and Islam (2001) undertook a study on commercial banks of Bangladesh for the financial year
1980-1995. The study revealed that the Commercial Banks, as a whole, are performing well and contributing to
the economic development of the country. The average profitability of all Bangladeshi banks collectively was
0.09% during 1980 to 1995. The study concluded that although banking sector contributes to the national
economy as well as to the individual organization, the performances of different categories of banks were not
equally attractive.
III. Methodology
To analyze the performance of Bangladeshi banks, the method of ratio analysis has been used. The
ratio measure method is very simple and has been commonly used by many previous researchers. For example,
Libby in 1975 and O’Cornor in 1973, Shimerda & Chen in 1981, Sabi in 1996, Samad in 1999, Ahmed, Hassan
in 2007, Ashraf and Rehman in 2011 used this method in their research work. The main advantage of this
method is that it removes the disparities and makes the data more comparable. Five private commercial banks
(National Bank Ltd., IFIC Bank Ltd., Dhaka Bank Ltd., Islami Bank of Bangladesh Ltd., and BRAC Bank Ltd.)
have been considered for this research. The Financial Statements from 2006-2011 of all five banks were used
for data analysis.
3.1 Data Collection
The data for this study have been gathered from secondary sources-the bank's financial statements for
the year (2006-2011). These data have been used to compute key financial ratios of the selected commercial
banks of Bangladesh for the mentioned period. This study has used a descriptive financial analysis to describe,
measure, compare the financial performance of the selected commercial banks in Bangladesh.
3.2 Sample Design
For the study purpose five private commercial banks were chosen. Of them one was 1st
generation bank
(AB Bank Ltd.), two were from 2nd
generation banks (Dhaka Bank Ltd. and Bank Asia) and two were from 3rd
generation banks (BRAC Bank Ltd. and Southeast Bank Ltd).
For the purpose of analysis, this study has used the major financial indicators comprised of total assets,
total deposits, total credits, total shareholder equity, interest income. Under ratio analysis four dimensions have
been used such as profitability, liquidity, credit risk and efficiency. Profitability dimension includes return on
asset, return on equity, return on deposit, net profit margin, liquidity dimension includes cash ratio and loans to
3. The Performance Analysis of Private Conventional Banks: A Case Study of Bangladesh
www.iosrjournals.org 21 | Page
total deposit ratio, credit risk dimension includes equity to total asset and equity to net loans ratio and finally
efficiency dimension includes fixed asset turnover and net asset turnover ratio.
IV. Results and Discussion
Table 1 shows the total assets of all selected private commercial banks of Bangladesh for the year
2006-2011 and provides the growth rate of assets, taking 2006 as the base year. From the table it is clear that
Southeast Bank had the highest acceleration in asset base, whereas Dhaka Bank encountered the lowest growth
during these years. From the perspective of asset growth it can be said that both the selected 3rd
generation
banks had the highest growth during the years under consideration.
Table 1: Total Assets of the Selected Bangladeshi Commercial Banks (2006-2011)
Total Asset (in million
Taka)
2006 2007 2008 2009 2010 2011
Growth
Rate
Average
1st
Generation AB Bank 47,989 63,549 84,053 106,912 132,691 152,962 219% 98,026
2nd
Generation
Bank Asia 30,478 38,436 53,371 68,663 105,198 117,729 286% 68,979
Dhaka
Bank 47,593 57,443 71,136 77,767 90,140 105,037 121% 74,853
3rd
Generation
Southeast
Bank 6,265 64,370 81,181 112,676 131,943 518,078 8169% 152,419,
BRAC
Bank 30,011 46,382 72,441 94,581 117,297 133,201 344% 82,319
Based on average asset, again Southeast bank tops the chart with an average asset of BDT 152,419
million, whereas Dhaka Bank had the lowest average asset of BDT 74,853 million from the year 2006-2011.
Table 2 shows total deposit of all selected commercial banks in Bangladesh with its growth rate and
average. The table reveals that of all the banks under study, BRAC Bank was able to achieve the highest growth
in total deposit. Bank Asia holds the second position with regard to deposit growth. Dhaka bank bottoms the
chart with a deposit growth rate of 105%.
Table 2: Total Deposits of the Selected Bangladeshi Commercial Banks (2006-2011)
Total Deposit (in million
Taka) 2006 2007 2008 2009 2010 2011
Growth
Rate Average
1st
Generation AB Bank 42,076 53,375 68,560 83,087 95,701 116,151 176% 76,492
2nd
Generation
Bank Asia 25,289 30,004 42,435 54,832 86,365 95,131 276% 55,676
Dhaka
Bank 41,553 48,730 56,985 60,918 70,420 85,276 105% 60,647
3rd
Generation
Southeast
Bank 46,056 55,474 68,714 96,669 107,253 127,178 176% 83,557
BRAC
Bank 22,888 36,903 57,582 74,765 87,136 102,957 350% 63,705
Based on average deposit for the year 2006-2011 Southeast bank tops the list with an average deposit
of BDT 83,557 million. Whereas Bank Asia who had the second highest deposit growth, had the lowest average
deposit of BDT 55,676 million.
Table 3 shows the total credit, the growth rate of credit and the average of total credit for the year
2006-2011. From the table it is clear that Southeast bank had the highest credit growth with a growth rate of
908%, whereas Dhaka Bank had the lowest growth in credit. The second highest growth was achieved by AB
bank.
Table 3: Total Credits of the Selected Bangladeshi Commercial Banks (2006-2011)
Total Credit (in million Taka) 2006 2007 2008 2009 2010 2011
Growth
Rate Average
1st Generation AB Bank 1,297 1,872 6,125 3,193 14,200 10,248 690% 6,156
2nd Generation
Bank Asia 22,255 28,456 39,974 50,267 79,504 82,819 272% 50,546
Dhaka
Bank 34,048 39,971 49,697 52,909 63,591 75,983 123% 52,700
3rd Generation
Southeast
Bank 314 48,164 60,281 261 976 3,168 908% 18,861
BRAC
Bank 19,557 32,461 52,676 64,150 82,461 90,822 364% 57,021
4. The Performance Analysis of Private Conventional Banks: A Case Study of Bangladesh
www.iosrjournals.org 22 | Page
Based on average credit, BRAC Bank tops the chart with an average credit of BDT 57,021 million. AB
bank had the lowest average credit of BDT 6,156 million, even after having the second highest growth in credit
during the years.
According to table 4, Bank Asia gained the highest growth rate of 540% in total owner’s equity during
2006-2011. The second on the list was AB bank with a growth rate of 475%. Dhaka bank had the lowest growth
among the banks under study.
Table 4: Total Owner’s Equity of the Selected Bangladeshi Commercial Banks (2006-2011)
Total Equity (in million Taka) 2006 2007 2008 2009 2010 2011
Growth
Rate Average
1st Generation AB Bank 2,582 4,511 6,722 10,086 13,866 14,852 475% 8,770
2nd Generation
Bank Asia 1,949 2,577 3,332 4,954 7,059 12,478 540% 5,392
Dhaka Bank 2,550 3,125 3,999 4,965 6,579 9,293 264% 5,085
3rd Generation
Southeast
Bank 5,059 6,144 7,357 11,329 17,145 19,383 283% 11,069
BRAC Bank 2,117 3,072 5,437 8,150 9,417 9,602 354% 6,299
Based on average of total owner’s equity Southeast bank tops the chart with an average of BDT 11,069
million, AB bank holds the second position with an average of BDT 8,770 million. Even though Bank Asia
ranks first in equity growth it had near about the lowest average equity during the years.
Table 5 reveals that BRAC Bank gained the highest growth in total interest income during the years
under study, whereas Dhaka Bank had the lowest growth. AB bank has the second highest growth. The findings
in this table reinforces that results in table 4 regarding credit growth, as interest income is the income earned on
total credit.
Table 5: Total Interest Income of the Selected Bangladeshi Commercial Banks (2006-2011)
Interest Income (in million Taka) 2006 2007 2008 2009 2010 2011
Growth
Rate Average
1st Generation AB Bank 3,378 5,269 7,366 9,047 9,840 12,830 280% 7,955
2nd Generation
Bank Asia 2,842 3,662 4,973 6,247 8,381 10,619 274% 6,121
Dhaka Bank 4,341 5,635 7,171 7,466 7,404 9,945 129% 6,994
3rd Generation
Southeast
Bank 5,107 6,408 7,530 8,962 10,257 13,874 172% 8,690
BRAC Bank 2,077 3,546 6,036 7,264 9,539 10,795 420% 6,543
Based on average interest income Southeast bank tops the list with an average of BDT 8,690 million,
followed by AB Bank ranking second with an average of BDT 7,955 million. Bank Asia had the lowest average
interest income among the banks under study.
4.1 Profitability Dimension
The return on equity ratio reflects the bank management’s ability to generate net profits from using the
owner’s equity as one of the source of finance. Table 6 reveals that Southeast Bank was able to generate the
highest ROE during the years with an average of 40% with AB bank having the second highest average ROE of
28%. BRAC Bank had the lowest average ROE. The table reveals that based on average ROE, both the top
ranked and the bottom ranked banks belong to the same 3rd
generation of banks.
Table 6: Return on Equity Ratios of Selected Bangladeshi Banks (2006-2011)
ROE 2006 2007 2008 2009 2010 2011 Average
1st Generation AB Bank 21% 42% 34% 33% 27% 9% 28%
2nd Generation
Bank Asia 24.40% 25.60% 20.60% 26.79% 27.33% 12.95% 23%
Dhaka Bank 22.76% 22.52% 20.97% 19.32% 25.52% 23.30% 22%
3rd Generation
Southeast Bank 40.77% 47.46% 40.95% 40.73% 39.40% 29.99% 40%
BRAC Bank 15.79% 20.13% 17.90% 15.99% 22.01% 18.87% 18%
Net Profit Margit reflects a bank’s financial position and efficiency. Table 7 indicates that Southeast
Bank had the highest NPM (48%) compared to other banks under study, followed by AB bank in the second
position with an average NPM of 28%. Both Bank Asia and BRAC Bank had the lowest average NPM.
5. The Performance Analysis of Private Conventional Banks: A Case Study of Bangladesh
www.iosrjournals.org 23 | Page
Table 7: Net Profit Margin Ratios of Selected Bangladeshi Banks (2006-2011)
2006 2007 2008 2009 2010 2011 Average
1st Generation AB Bank 16% 36% 31% 37% 38% 10% 28%
2nd Generation
Bank Asia 16.74% 18.01% 13.81% 21.24% 23.02% 15.22% 18%
Dhaka Bank 28.17% 22.20% 21.58% 23.48% 30.22% 34.77% 27%
3rd Generation
Southeast Bank 40.38% 45.50% 40.00% 51.49% 65.86% 41.90% 48%
BRAC Bank 16.09% 17.44% 16.13% 17.95% 21.73% 16.79% 18%
4.2 Liquidity Dimension
Cash ratio measures the extent to which a bank can quickly liquidate assets and cover short-term
liabilities, and therefore is of interest to short-term depositors. Table 8 reflects that Southeast bank has the
highest average cash ratio (0.16) followed by AB Bank (0.12) in the second position. Dhaka Bank bottoms the
list with an average cash ratio of 0.01 over the years under study.
Table 8: Cash Ratios of Selected Bangladeshi Banks (2006-2011)
Cash Ratio 2006 2007 2008 2009 2010 2011 Average
1st Generation AB Bank 0.11 0.12 0.09 0.11 0.13 0.15 0.12
2nd Generation
Bank Asia 0.07 0.07 0.07 0.07 0.07 0.07 0.07
Dhaka Bank 0.01 0.01 0.01 0.01 0.01 0.01 0.01
3rd Generation
Southeast Bank 0.06 0.06 0.18 0.22 0.18 0.23 0.16
BRAC Bank 0.02 0.01 0.02 0.02 0.04 0.04 0.02
Loans to deposit ratio indicates a banks liquidity position. A low ratio of loans to deposits indicates
excess liquidity, and potentially low profits, compared to other banks. A high loan-to-deposit ratio presents the
risk that some loans may have to be sold at a loss to meet depositors' claims. Table 9 reveals that Southeast bank
has the strongest liquidity position based on average of loans to deposit ratios with other banks having an
average loan to deposit ratios varying within a narrow range.
Table 9: Loans to Deposit Ratios of Selected Bangladeshi Banks (2006-2011)
Loans to Total Deposit 2006 2007 2008 2009 2010 2011 Average
1st
Generation AB Bank 0.74 0.77 0.83 0.85 0.92 0.81 0.82
2nd
Generation
Bank Asia 0.88 0.95 0.94 0.92 0.92 0.87 0.91
Dhaka Bank 0.82 0.82 0.87 0.87 0.90 0.89 0.86
3rd
Generation
Southeast
Bank 0.01 0.87 0.88 0.00 0.01 0.02 0.30
BRAC Bank 0.85 0.88 0.91 0.86 0.95 0.88 0.89
4.3 Credit Risk Dimension
Equity to total asset ratio indicates a bank’s ability to absorb credit risk in case of default by the
borrowers. A high equity to total asset ratio indicates a higher ability of a bank to absorb credit default. Table
10 shows that Southeast bank had the highest average ratio (0.09) with Dhaka bank (0.06) in the bottom during
the years under study.
Table 10: Equity to Total Asset Ratios of Selected Bangladeshi Banks (2006-2011)
Equity to Total Asset 2006 2007 2008 2009 2010 2011 Average
1st Generation AB Bank 0.05 0.07 0.08 0.09 0.10 0.10 0.08
2nd
Generation
Bank Asia 0.064 0.067 0.062 0.072 0.067 0.106 0.07
Dhaka Bank 0.054 0.054 0.056 0.064 0.073 0.088 0.06
3rd
Generation
Southeast
Bank 0.09 0.10 0.09 0.10 0.13 0.04 0.09
BRAC Bank 0.07 0.07 0.08 0.09 0.08 0.07 0.08
4.4 Efficiency Dimension
The fixed-asset turnover ratio measures bank’s ability to generate net sales from fixed-asset
investments. A higher fixed-asset turnover ratio shows that the bank has been more effective in using the
investment in fixed assets to generate revenues. Table 11 reveals that Dhaka bank has the highest average ratio
compared to other banks under study with Bank Asia in the second position. Southeast bank has the lowest
average ratio during the year 2006-2011.
6. The Performance Analysis of Private Conventional Banks: A Case Study of Bangladesh
www.iosrjournals.org 24 | Page
Table 11: Fixed Asset Turnover Ratios of Selected Bangladeshi Banks (2006-2011)
Fixed Asset Turnover 2006 2007 2008 2009 2010 2011 Average
1st Generation AB Bank 2.94 2.21 3.01 3.71 2.51 3.33 2.95
2nd
Generation
Bank Asia 5.88 7.35 7.72 6.13 4.56 2.32 5.66
Dhaka Bank 9.48 10.88 10.05 9.62 5.68 3.62 8.22
3rd
Generation
Southeast Bank 2.09 2.24 1.50 1.36 1.90 1.10 1.70
BRAC Bank 5.34 3.76 4.10 4.44 5.45 4.31 4.57
Net Asset turnover ratio indicates a bank’s efficiency in utilizing its asset. Table 12 indicates that Bank
Asia had the highest average ratio compared to other banks under study, whereas Dhaka Bank had the lowest
average ratio indicating the lowest efficiency in utilizing its asset to generate revenue during the years under
study.
Table 12: Net Asset Turnover Ratios of Selected Bangladeshi Banks (2006-2011)
Net Asset Turnover 2006 2007 2008 2009 2010 2011 Average
1st Generation AB Bank 0.07 0.08 0.09 0.08 0.07 0.08 0.08
2nd
Generation
Bank Asia 1.46 1.42 1.49 1.26 1.19 0.85 1.28
Dhaka Bank 0.04 0.06 0.05 0.05 0.06 0.06 0.05
3rd
Generation
Southeast Bank 0.54 0.62 0.55 0.52 0.49 0.42 0.52
BRAC Bank 0.07 0.08 0.08 0.08 0.08 0.08 0.08
Table 13 summarizes the rating of the banks based on their activities and ratios. According to Table 13,
Southeast bank is ranked first based on most indicators under study except for total credit, fixed asset turnover
and net asset turnover. Therefore it is very clear that Southeast bank needs to improve its efficiency in asset
management.
AB Bank holds the second position based on profitability, liquidity, credit risk but holds fourth and
third position in fixed asset turnover and net asset turnover respectively. Moreover it is ranked fifth on total
credit. Therefore AB bank needs to work on utilizing both its fixed and net asset management, at the same time
it should try to tap more credit by expanding its market base.
BRAC bank is ranked first based on avg. of total credit, but is ranked third in total asset, total deposit,
total equity, equity to total asset ratio, fixed asset turnover ratio, ranked fourth in interest income and cash ratio,
loans to total deposit ratio, net asset turnover ratio and ranked fifth in ROE and NPM. Therefore BRAC bank
needs to put more emphasis on profitability, liquidity, credit risk and efficiency respectively. And maintain its
total credit at the present level.
Table 13: Summary of Bank’s ranking based on activities and Ratios
Banks/Indicators
Southeast
(3rd
Generation
AB Bank
(1st
Generation)
BRAC
(3rd
Generation)
Bank Asia
(2nd
Generation)
Dhaka
(2nd
Generation)
Avg. of Total Asset 1 2 3 5 4
Avg. of Total Deposit 1 2 3 5 4
Avg. of Total Credit 4 5 1 3 2
Avg. of Total Equity 1 2 3 4 5
Avg. of Interest
Income 1 2 4 5 3
Return on Equity 1 2 5 3 4
Net Profit Margin 1 2 5 4 3
Cash Ratio 1 2 4 3 5
Loans to Total
Deposit 1 2 4 5 3
Equity to Total Asset 1 2 3 4 5
Fixed Asset Turnover 5 4 3 2 1
Net Asset Turnover 2 3 4 1 5
Bank Asia is ranked first based on net asset turnover ratio, second on fixed asset turnover ratio, third on
total credit, ROE and cash ratio, fourth on total equity, NPM, equity to total asset ratio and ranked fifth on total
asset, total deposit, interest income, loans to total deposit ratio. So it should try to improve its overall
performance in most of the indicators under study except for asset utilization.
Dhaka bank is ranked first on the basis of fixed asset turnover, ranked second on total credit, ranked
third on interest income, NPM, loans to deposit ratio, ranked fourth on total asset to deposit, ROE, and ranked
fifth on total equity, cash ratio, equity to total asset ratio and net asset turnover ratio. Therefore strong effort
7. The Performance Analysis of Private Conventional Banks: A Case Study of Bangladesh
www.iosrjournals.org 25 | Page
must be given by the bank’s management to improve the overall performance of the bank based on all the
parameters under study.
From Table 13 it is clear that there exists no relationship between banks years of operation and its
performance. Southeast bank being a third generation bank tops the list whereas BRAC bank being in the same
generation was not able to perform in the same pace. Moreover AB Bank being a first generation bank was not
able to outperform Southeast bank. The study finding has been reinforced by the fact that there is no co-relation
between the performance of Bank Asia and Dhaka bank, both being a second generation bank.
V. Conclusion
The importance of this study stems from the relative size and importance of banking sector in Bangladesh,
comprising of 61% of GDP. The study is considered to make huge contribution not only in the field of academic
research but also in helping managers to improve bank’s performance.
This study will help managers to pay more attention to the aspects where these banks are lagging
behind which may result in improving both their financial performance and ranking. This study will also pave
the way of efficient and effective strategic decision making by the managers. From the academic point of view
this research will provide a new perspective in evaluating the financial performance of Bangladeshi commercial
banks that belongs to different generations. The findings of this study will enrich the present literature and it will
help researchers in their future endeavor.
The result of the study reveals that Southeast bank, a third generation bank in Bangladesh is ranked
first based on most of the indicators except for total credit, fixed asset turnover and net asset turnover. AB Bank,
a first generation bank in Bangladesh, holds the second position based on profitability, liquidity, credit risk but
holds fourth and third position in fixed asset turnover and net asset turnover respectively. Moreover it is ranked
fifth on total credit. BRAC bank, again a third generation bank in Bangladesh, is ranked first based on avg. of
total credit, but is ranked third in total asset, total deposit, total equity, equity to total asset ratio, fixed asset
turnover ratio, ranked fourth in interest income and cash ratio, loans to total deposit ratio, net asset turnover ratio
and ranked fifth in ROE and NPM. Bank Asia, a second generation bank in Bangladesh, is ranked first based on
net asset turnover ratio, second on fixed asset turnover ratio, third on total credit, ROE and cash ratio, fourth on
total equity, NPM, equity to total asset ratio and ranked fifth on total asset, total deposit, interest income, loans
to total deposit ratio. Dhaka bank, a second generation bank in Bangladesh, is ranked first on the basis of fixed
asset turnover, ranked second on total credit, ranked third on interest income, NPM, loans to deposit ratio,
ranked fourth on total asset to deposit, ROE, and ranked fifth on total equity, cash ratio, equity to total asset
ratio and net asset turnover ratio.
The study findings reveal that there is no specific relationship between the generation of banks and its
performance. The performances of banks are dependent more on the management’s ability in formulating
strategic plans and the efficient implementation of their strategies. The study had its limitation of having a small
sample size, but it will definitely help future researches to work more in depth on the topic.
Reference
[1] Ahmed A. Almazari, Financial Performance Evaluation of Some Selected Jordanian Commercial Banks, International Research
Journal of Finance and Economics 68, 2011, ISSN 1450-2887.
[2] Ashraf M. and Rehman Z.,The Performance Analysis of Islamic and Conventional Banks: The Pakistan’s Perspective, Journal of
Money, Investment and Banking 22, 2011,ISSN 1450-288X.
[3] Rehman K. and Saba I, Gauging The Financial Performance of Banking Sector Using CAMEL Model: Comparison of
Conventional, Mixed and Pure Islamic Banks in Pakistan, International Research Journal of Finance and Economics 82, 2012,
ISSN 1450-2887.
[4] Nimalathasan, A Comparative Study of Financial Performance of Banking Sector in Bangladesh – An Application of CAMEL
Rating System, Annals of University of Bucharest, Economic and Administrative Series. Nr. 2, 2008, pp 141-152.
[5] Chowdhury, A, Politics, Society and Financial Sector Reform in Bangladesh, International Journal of Social Economics, 29(12),
2002, pp 963-988.
[6] Siddique, S. H., and Islam, A. F. M. M. Banking Sector in Bangladesh: Its Contribution and Performance, Journal of Business
Research, Jahangirnagar University, Vol. 3, 2001.
[7] Libby, R, Accounting Ratios and Prediction of Failure: Some Behavioral Evidence, Journal of Accounting Research Spring, 1975,
pp 150-161.
[8] O’Cornor and Malvin C., On the Usefulness of Financial Ratios to Investors in Common Stock, The Accounting Review, April,
1973, pp 339-83.
[9] Thomas A. Shimerda and Kung H. Chen, An Empirical Analysis of Useful Financial Ratios, Blackwell Publishers, Vol. 10, 1981,
pp 51-60.
[10] Samad, A., Hasan, M. K., The Performance of Malayasian Islamic Bank During 1984-1997: An Explanatory Study, International
Journal of Islamic Financial Service, 1 (3), 1999.
[11] Sabi, M., Comparative Analysis of Foreign and Domestic Bank Operations in Hungary, Journal of Comparative Economics 22, no.
2, 1996, pp 1979-88.
[12] Ahmed and Hasan, Regulations and Performance of Islamic Banking System in Bangladesh, Thunderbird International Business
Review, Vol. 49(2), 2007, pp 251-277.