Abstract
This research study aimed at to explore the performance and efficiency of selected sample bank after its privatization. Privatization is the process to sale and transfers the assets of public sector entities to private sector to boost the laissez fair economy in line with international trends in the wake of failure of socialism and communism.
 Pakistan’s banking sector was performing very poor after the nationalization of banks in 1974 and witnessed financial indiscipline due to political interference in day to day activities particularly in hiring and lending which badly affected the quality of service on one hand and accumulation of bad debts on other. Therefore need was felt to privatize the state owned organizations with main objective to restrict the role government interference so that performance of banking industry of the country could be improved.
 Prior researchers worked a lot to identify the positive and negative effects of privatization on the performance of newly privatized firms’ globally. This research has been carried out to evaluate and assess the performance of MCB (Formerly Muslim Commercial Bank Limited) after privatization. The research revealed that bank has performed very well in terms of growth, profitability, liquidity and solvency. Financial ratios have been used to evaluate the performance and efficiency and were represented by using graphs. Software SPSS (statistical package for social science) was also used to gauge and find descriptive & graphical analysis. It was concluded that bank has shown tremendous growth in building deposits base, generating profits and ensuring long term solvency.
Highlights
Privatization refers to the sale and transfer of shares & assets of sate owned enterprise to the private sector may include individuals and firms as well,this is a narrow concept broadly it means restriction of state interference in the affairs of privatized /private firms to boost the concept of free economy
Pakistan’s banking sector was performing very poor after the nationalization of banks in 1974 and witnessed financial indiscipline due to political interference in day to day activities in hiring and lending which badly affected the quality of service on one hand and accumulation of bad debts on other especially DFIs and NCBs contributed a lot in Non Performing Loans (NPLs) accounted for around 90 % of banking industry
Funds are raised in local as well as international capital market by way of divesting shares of the profitable government enterprises/ Sate Owned Enterprises (SOEs).Privatization of an SOE for strengthening the private sector cannot be evaluated for the amount of funds it brought to the state
Summary
Abstract:This research study aimed at to explore the performance and efficiency of selected sample bank after its privatization. Need was felt to privatize the state owned organizations with main objective to restrict the role government interference so that performance of banking industry of the country could be improved. Prior researchers worked a lot to identify the positive and negative effects of privatization on the performance of newly privatized firms’ globally. This research has been carried out to evaluate and assess the performance of MCB (Formerly Muslim Commercial Bank Limited) after privatization. The research revealed that bank has performed very well in terms of growth, profitability, liquidity and solvency. Financial ratios have been used to evaluate the performance and efficiency and were represented by using graphs. It was concluded that bank has shown tremendous growth in building deposits base, generating profits and ensuring long term solvency
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