Abstract
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.
Highlights
Banking system has become an integral part for operating economic activities in every country
From this study, it is found that the private commercial banks are performing better during the working year than the previous years
Every year the banks are showing progress in itsperformance.The study shows that every private commercial bank is employing some more people every year
Summary
Banking system has become an integral part for operating economic activities in every country. The economic condition of a country depends on the soundness of its banking system (Teker, et al 2011). Just as without heart the existence of any human being can’t be thought, economic activities without the help of banking system is unthinkable (Stankeviciene and Mencaite, 2012). By giving financial support during business startups, providing loans to smooth and increase the level of production,controlling the supply of money in circulation, supporting modern trade and commerce, keeping people’s money safe,affecting spending and saving tendencies, providing capital for innovation and infrastructure, facilitating foreign trades and so on, banking sector is fueling the engine of development of a country. Any disturbance to this banking sector will surely have a severe impact on the country’s economic growth(Aspal and Malhotra, 2013)
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