Performance analysis and competitive analysis in the state owned or operated commercial lender in Bangladesh Essay

Performance evaluation and competitive research of the point out owned industrial bank in Bangladesh

Research Log of Financial and Accounting

ISSN 2222-1697 (Paper) ISSN 2222-2847 (Online)

Vol two, No several, 2011

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Performance Evaluation and Competitive Analysis of State

Owned Commercial Financial institutions in Bangladesh

Shah Johir Rayhan (Corresponding author)

Office of Supervision & Fund

Sher-e-Bangla Farming University

Sher-e-Bangla Nagar, Dhaka-1207, Bangladesh.

Cell: +8801712700906

E-mail: [email protected] com

Alternative Email-based: [email protected] com

S. Meters. Sohel Ahmed

Department of Marketing

Northern University Bangladesh (Sister Concern of North University Bangladesh) Dhaka-1207, Bangladesh.

Cell: +88 01711053120

E-mail: [email protected] com

Alternative E-mail: [email protected] com

Ripon Kumar Mondal

Department of Farming Economics

Sher-e-Bangla Agricultural University or college

Sher-e-Bangla Nagar, Dhaka-1207, Bangladesh.

Cell: +8801712953758

E-mail: rkumar. [email protected] com

Abstract

The broad aim of this study is Functionality Evaluation and Competitive Research of condition owned commercial banks in Bangladesh. This paper detects the development and growth of express owned industrial banks in Bangladesh. Second data utilized for the study. The study reveals all the state owned industrial banks in Bangladesh can no longer achieve a secure growth, net profit, making per Discuss, return in equity, return on property, net property value per share but are capable to achieve a stable regarding deposit, bank loan and developments, equity. It is additionally observed that the of state held commercial financial institutions have large non performing loan/classified bank loan and % of grouped loan to perform loan is incredibly high. Staff of all express owned business banks will be negative growth. Trend equations have been tested for different activities of the express owned industrial Banks. Confident growth was found in first deposit, assets and expense although negative craze was present in number of workers. In case of no performing financial loan and % of categorized loan positive trend was found in Sonali Bank Limited and Rupali Bank Limited while negative trend is at Janata Lender Limited and Agrani Financial institution Limited. Sq of correlation coefficient (r2) has also been examined for all pattern equations. The r2 of branches, personnel, deposit, possessions are more than 0. your five. It indicates which the prospects of those indicators of state possessed commercial banking companies are dazzling. All other signals like net profit following tax, profits per reveal, non performing loan, and % of classified financial loan to total mortgage r2 are generally not more than 0. 5 for any banks. This proves that most state possessed commercial banking institutions do not obtain these indicators during the period of 2005-2009.

Key words: Point out owned commercial bank, Competitive evaluation, Overall performance, Equity. 1 ) Introduction

Banks play very important roles throughout the economy life of your nation. The healthiness of an economic climate is strongly related to the soundness of its banking system. Even though banks make no fresh wealth but their borrowing,

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lending and related actions facilitate the production circulation, exchange and consumption of wealth. In this way they become incredibly efficient associates in the process of economic creation. Today modern banks are incredibly useful for the use of the solutions of the country. The financial institutions are mobilizing the cost savings of the people for the investment goal. If generally there would simply no banks then a great percentage of a portion of any capital from the country will remain nonproductive. A traditional bank as a matter of fact is actually a heart in the financial structure and the capital furnished by it is just like blood in it. So long as blood is in circulation the organ will remain sound and healthy and balanced. If the bloodstream is certainly not supplied to any organ it part could become worthless. So in case the finance is usually not offered to farming sector or perhaps industrial sector it will be ruined. Loan center provided by financial institutions as...

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