Private Commercial Banks In Bangladesh Research Articles

Mediating role of organizational commitment in the relationship between human resource management practices and employee engagement

PurposeThe purpose of this paper is to examine the mediating role of organizational commitment (OC) on the relationship between human resource management (HRM) practices and employee engagement among banking employees in the context of an emerging economy namely Bangladesh.Design/methodology/approachThe survey data include 383 employees from 30 private commercial banks in Bangladesh. For analyzing the data, structural equation modeling is employed with the bootstrapping method.FindingsThis study finds that HRM practices such as career advancement, employee participation, job security, performance feedback, rewards and recognition, training and development are the significant predictors of employee engagement. Results also identify OC as a partial mediator on HRM practices and employee engagement relationship which suggest that direct relationship of predictors and criterion variables are stronger than indirect association. More interestingly, findings indicate that the mechanism of black-box stage is not always work on the relationship between HRM practices and employee performance.Originality/valueExploring the role of OC on the relationship between HRM practices and employees’ behavioral outcome, i.e. employee engagement, is appeared as an initial effort in the academic literature. Furthermore, empirical research that examines the association of different organizational factors with employee engagement through OC is rarely been investigated. Thus, the findings of this study act as a strategic tool for the bank managers to design their organizational policies in such a way that fosters their employee’ level of engagement.

Performance Evaluation of Private Commercial Banks of Bangladesh: A Trend Analysis

The study revealed the trend analysis of the private commercial banks and given an overview of the performance of private commercial banks of Bangladesh. Nowadays, the banking sector is the “lifeblood” of all economic activity. The study is empirical. To get the proper understanding about the trend of different variables such as, investment loan & advancement, total asset, total liability, total equity, profit after tax, return on investment, return on asset, and return on equity from 2013 to 2017 the sample was extracted from the scheduled commercial banks. The result shows that the banking system of Bangladesh is not running at a normal pace. The index of the various variable of PCBs has progressed in some years, but again it has been delayed for the next time. The ROI and the ROA result show the best output in 2014 and the worst in 2017. On the other side, the best return on equity shows in 2014, but it is in the lowest position in 2015 because of a sudden increase in an equity position. The trend of profit after tax is like a wave. In 2014 and 2016 it is increased than the last year. On the other hand, in 2013, 2015 & 2017 it is decreased in comparison to the previous year. The data shows that the PAT is rotated within 15,000 to 20000 million taka. It is studied that, the growth and development, as well as the performance trend, is not rhythmic. PCBs should get the proper rhythm of their development, and for the development of the state.

Factors Affecting Customers’ Experience in Mobile Banking of Bangladesh

Bangladesh is a densely populated country of the world. More than 170 million people live in this country. Mobile banking is a very important and new phenomenon in Bangladesh. In recent years, mobile banking has got highest importance by the customers in the country as it provides immense scope for consumers for banking transactions at any time with the option to access bank’s facilities anywhere of the country. It is a subset of electronic banking, the use of which is increasing day by day in Bangladesh. Hence, this paper aims at indentifying the factors that influence the customer experience in mobile banking in Bangladesh. This study is based on a survey of 231 mobile banking customers of nine private commercial banks of Bangladesh. Literature review identified some factors related to mobile banking like convenient and responsive system, transaction speed and accuracy, reliability, transaction security in ATM booth and technological difficulty that affect customers’ experience in mobile banking systems etc. Both descriptive and inferential statistics were used to analyze the data. Descriptive statistics were used to describe the present situation of the mobile banking systems in Bangladesh. Inferential statistics like factor analysis, multiple regression analysis and Structural Equation Modeling (SEM) were used to identify the relationships between the overall experience of the mobile banking customers and the specific factor(s) that affect customers experience in mobile banking. Results show that the convenient and responsive system, transaction security in ATM booth and technological difficulty are significant factors that affect the customers experience in mobile banking of Bangladesh. This study suggests that the policymakers should focus on the convenient and responsive system of mobile banking, transaction security in ATM booth and technological difficulty factors that affect customers experience in doing mobile banking for the improvement of the mobile banking services in Bangladesh.

The Impact of HR Policies over the Financial Soundness of Commercial Banks: A Study on Dhaka Bank Limited

Presently Human Resources (HR) Management has become one of the burning topics in our corporate world to operate overall activities of the organizations smoothly to ensure financial stability and banking industry is not an exception. Banking is one of the most significant sectors of the world economy and especially in a developing country like Bangladesh. Bank employees are the representative of the bank as it is a service-oriented organization, and they are providing banking services to the clients. The more customers’ retention will lead to more revenue as well as financial profit. The banks are now more concern about their employee’s development to make sure the highest productivity of their employees. The paper shows the importance of efficiency and effectiveness of HR policies to upward financial profit and sustainable growth of the bank. Dhaka Bank Limited (DBL) has taken as a sample bank among all the private commercial banks in Bangladesh to conduct the study. The study includes both descriptive as well as quantitative analysis like showing performance by using financial ratios and the impact of HR costs over the profitability. Sample survey has done among the DBL employees to collect data for the study. The study discloses that the banks are investing the huge amount of fund to develop HR strategies and to motivate employees so that the employee turnover will reduce and productivity will increase which leads to better performance to make sure financial profitability and growth. Usually to maintain all rules and regulation of HR, the banks have to expense more but its conveying long-term productive effect on business growth. It also creates a competitive advantage of the bank to compete with others bank. This study may be helpful for banks regarding dealing with profitability and HR strategies.

Does investment in human resource development affect financial performance? Empirical evidence from the banking sector of Bangladesh

The study aims at examining the impact of investment in human resource development (HRD) on the financial performance of the banking sector of Bangladesh. Using the economic data as well as survey data collected from purposively selected 120 bank executives of 20 private commercial banks of Bangladesh. The study through regression models finds that there is a significant positive correlations between HRD investment (in salaries and allowances, provident fund and gratuity, bonus and incentives, staff welfare and training, workshop, and seminar) and financial performance of the sample banks. Though, training is one of the important HRD indicators, the lowest investment was made in this sector by the sample banks. The findings of the study may be useful for bankers, policymakers, HR professionals, and the stakeholders of all types of organizations regardless of the geographical boundary. Finally, further investigations on manufacturing and other service sectors through case study, focus groups, and longitudinal study are also suggested.
 IIUC Studies Vol.14(2) December 2017: 35-54

Determinants of bank profitability for the selected private commercial banks in Bangladesh: a panel data analysis

This study aims to investigate the determinants of profitability of fifteen selected private commercial banks in Bangladesh over the period 2005‒2015. The study emphasizes on the internal factors that affect bank profitability. This research uses panel data to explore the impact of nonperforming loan, cost to income ratio, loan to deposit ratio, commission fees, cost of fund and operating expenses on the profitability indicators of banks like return on asset and return on equity. The experimental outcomes have found strong evidence that nonperforming loan (NPL) and operating expenses have a significant effect on the profitability. Moreover, the results have shown that higher NPL may lead to less profit due to provision of classified loans. Again, higher loan to deposit (LD) ratio and cost of fund contribute towards profitability, but their impacts are not significant in the private commercial banks of Bangladesh.

Influence of Corporate Attributes on Magnitude of Disclosure by Private Commercial Banks in Bangladesh

The study reports the results of an empirical investigation of the magnitude of disclosure by listed Private Commercial Banks (PCBs) in Bangladesh and the attributes influencing it. For the purpose of the study, samples were taken following the purposive sampling approach covering about 21 percent of the population. A researcher developed unweighted disclosure checklist containing 247 information items divided into ten groups, were utilized. Applying the Dichotomous scoring procedure, the study found an average disclosure of 75.76 percent with a constant growth during the study period. Significant differences were found while comparing the disclosure level among the years and among the sample banks under study. Out of the eight variables, the regression model used in the study found Log total assets, Return on Equity (ROE), and EPS as three influential contributors to disclosure; while other five variables were found to have insignificant influence on disclosure of PCBs in Bangladesh.Journal of Business and Technology (Dhaka) Vol.11(1-2) 2016; 111-118

Market Capitalization- Sustainability Practices Measurement of Private Commercial Banks of Bangladesh

The study investigates the sustainability practices of the private commercial banks of Bangladesh to consider these as measurement of the market capitalization of the same. In the research 30, private commercial banks have been taken into consideration where it is found that market capitalization is not wholly dependent on the issue of sustainability and there is no long run relationship between market capitalization and sustainability issues which could have an impact on the market capitalization or any direction of the market capitalization. Rather Granger Causality result shows that market capitalization could have an impact on the sustainability issues of the banks. The inclusion of some other explanatory variables in the model could deduce a better conclusion.

The Relationship between Employee Engagement, HRM practices and Perceived Organizational Support: Evidence from Banking Employees

The purpose of this study is to investigate the relationship between HRM practices and employee engagement. Although employee engagement has got a great attention among the industry practitioners in recent times, it requires more considerations particularly in the academic literature. Based on the norms of social exchange theory (SET), this study has developed the framework to examine the role of perceived organizational support (POS) on HRM practices-employee engagement linkage. Survey data has been collected from employees who are working in different private commercial banks in Bangladesh. This study has used a sample of 376 employees using cluster sampling technique. To analyze the data, this study has employed SmartPLS 3.0 version software. The results of structural equation modeling revealed that HRM practices namely career advancement, job security and performance were significantly and positively related to employee engagement. The results also showed that POS can moderate the relationship between HRM practices and employee engagement. It suggests that in the presence of POS, relatively low level of employees’ perceptions regarding job related resources will exert a high level of employees’ behavioral outcomes such as engagement. The implications and suggestions for future research have also been discussed.

Performance of banking industry in Bangladesh: Insights of CAMEL rating

This study attempts primarily to measure the financial performance of banking industry of Bangladesh for the periods 2013–2014 and to rate them according to the composite rating system. For this purpose, 10 private commercial banks (PCBs) have been selected from 38 PCBs. CAMEL has critically analyzed the financial performance of these banks. This finds that most of the banks get 2.14 with an average rating of composite range, where only Eastern Bank Ltd. gets “Strong” rating, seven PCBs get “Satisfactory” rating, AB Bank Ltd. and City Bank Ltd. lay middle of the range of composite score. From this ground, it is clearly reflected that most of the PCBs in Bangladesh have performed quite satisfactorily in recent years. The performance of most banks is dependent more on the managerial ability in formulating strategic plans and the efficient implementation of its strategies. Maintenance of asset quality is the major challenge in this year and is feared to remain so in 2014. The banking sector in Bangladesh has passed somewhat an average year regarding governance, profitability and soundness in 2013. Finally, it is recommended that the banks should be more careful to ensure the quality of assets and its uses, and increased their efficiency in managerial grids.

Corporate Social Responsibilities Performed by leading Private Commercial Banks in Bangladesh.

Corporate Social Responsibilities Performed by leading Private Commercial Banks in Bangladesh.

Analyzing the Factors Influencing Employee Turnover in Private Commercial Banks in Bangladesh

Employee turnover turn into central issue to focus for organization’s workforce development and strategy. Almost all private banks of Bangladesh have superior formation with excellent benefits but employee turnover occurs regularly. There are some factors that influence employee to leave the organization. The purpose of this research is to analyze the factors that influence employee turnover in private banking sector in Bangladesh. Time period of this is from 01 March, 2015 to 31 May, 2015. A total of 16 variables responsible for influencing employee turnover are selected from related literature. Factor analysis has been conducted to reduce the number of total variables. Bartlett’s test of Sphericity has been used along with the Kaiser-Meyer-Olkin (KMO) statistic. SPSS 16.0 has been used to analyze the data collected from primary sources through random sampling technique. This analysis reveals that tangible and intangible Compensation, physical stress out of organizational support, inconsistency of supervision and business status, underprovided hygiene factor, lack of proper training and development and transfer of jobs are the most important factors that may influence employee turnover. From this study the private banks of Bangladesh can get a clear view about the factors that may influence employee turnover of their respective organization in order to reduce turnover.

The role of devolution in HR‐line manager collaboration and HRM effectiveness relationship: A study of private commercial banks in Bangladesh

What impact does the relationship between human resource managers and line managers have on the effectiveness of an organization's human resource management (HRM) efforts? A study of 365 line managers in 25 private commercial banks in Bangladesh found that HR‐line collaboration is pivotal to achieving synergy between HRM strategy and business strategy. It also revealed that devolution—the delegation of power to a lower level—further enhances effectiveness. The findings suggest that both human resource managers and line managers play a critical role in executing an organization's HRM policies. More broadly, the study provides insights into how both agents can contribute to the overarching alignment needed to improve service quality.

Determining success factors for effective strategic change: Role of middle managers' strategic involvement

Middle managers are believed to play most crucial part in strategic change that in consequence leads to organizational success. The present study seeks to identify the underlying success factors for effective strategic change and, to investigate the relationship between middle management strategic involvement and effective strategic change. Data were collected following a survey administered among a group of mid-level managers (N=144) serving in twenty different private commercial banks in Bangladesh, and analyzed using various statistical tests including descriptive analysis, Pearson correlation, and simple and multiple regressions in STATA. Results uncovers that factors like relation with top management, strategy, role and skills are essential for effective strategic change. This study also reveals significant relationship between middle management strategic involvement and effective strategic change. Findings of this research suggest that organizations shall involve mid-level managers to formulate and implement strategy since middle mangers work as a bridge between top management and ground level workers.

Corporate Social Responsibility in Disaster Risk Management, A Study on Some Selected Private Commercial Banks of Bangladesh

Corporate Social Responsibility in Disaster Risk Management, A Study on Some Selected Private Commercial Banks of Bangladesh

Impact of Training Programs on Human Development: A study on Private Commercial Banks of Bangladesh

Impact of Training Programs on Human Development: A study on Private Commercial Banks of Bangladesh

A Study on Accounting Ratios to Determine Change in Market Share Price of Dhaka Stock Exchange With Reference to Commercial Banks of Bangladesh

The share market in Bangladesh has seen a major turmoil in 2010-2011. The reasons behind it are believed to be several and investigation is still going on. The paper aims to determine if change in company market share price could have been predicted by the financial indicators of the company. The study focuses on the private commercial banks in Bangladesh as it is a growing industry playing a significant role in the capital market of the nation. In Bangladesh, there are 30 private commercial banks listed in the Dhaka Stock Exchange. Of them, 23 banks are selected for the study on the basis of data availability for the ten-year period of January 2005 to December 2014. Accounting ratios indicating bank profitability, efficiency, risk, liquidity, and asset quality are chosen as bank financial indicators. Statistical tools as multivariate regression and correlation have been used on the 230 bank-year observations. Multi-collinearity among the final indicators has also been tested. It is seen that selective accounting ratios can be fine determinants of share price change in the financial market of Bangladesh.

Present Scenario of Green Banking Practices Followed by Private Commercial Banks in Bangladesh: A Descriptive Analysis

The study was conducted to find out the Present scenario of green banking practices in Bangladesh. Green banking is not just a corporate social responsibility activity; it is all about going beyond to keep the world livable without any significant damage. Green banking that considers all the social and environmental factors is also called ethical banking. The main objective of green Banking is to ensure the use of organizational resources in favor of the environment and society. Green banking as a concept is proactive and smart way of thinking with a vision for future sustainability of our only Spaceship earth. Bangladesh Bank is the first central bank in the world that has taken real initiatives to facilitate the way of Green banking practice. With some specific guidelines and legal frameworks the central bank of Bangladesh has been urging all the commercial banks in Bangladesh to develop their own Green Banking Policies.

Financial Health Soundness Measurement of Private Commercial Banks in Bangladesh: An Observation of Selected Banks

The financial sector is one of the most significant sectors for any country, especially if a country is a developing in nature. In such an environment, banking sector plays the vital role to strengthen the economic conditions. Economic growth and international business is increasing in Bangladesh and private commercial banks especially private sectors play the major roles. Thus it becomes important to measure the financial soundness of the private banks in order to judge their respective position. The study was conducted to measure the financial soundness of selected private commercial banks of Bangladesh for the period 2006-2010. In this paper, an attempt was made to analyze the financial soundness of selected banks using different statistical tools and financial indicators. The study reveals that different financial indicators showed upward trends during the period 2006 to 2010. The study also made a rank of the selected commercial banks based on financial indicators. It was found that a bank with higher deposits, loans & advances, investments, branches, employees does not always mean that has better profitability performance. The study also recommends measures that could be adopted by banks to ensure soundness in their operation.Journal of Nepalese Business Studies Vol. 9, No. 1, 2015 pp. 20-36

Corporate Governance Reporting in Bangladesh: A Study of Selected Listed Private Commercial Banks of Bangladesh

Corporate Governance (CG) largely determines how well the interests of the stakeholders are being maintained. This study has been opted for in-depth inquiry into the corporate governance disclosure practices in the annual reports of the selected listed banking companies in Bangladesh. The study finds that all the sample companies disclose corporate governance information as per regulatory requirements laid down in Clause 1.5 of the SEC Notification, 2012. The focus of this study was to empirically examine the mandatory corporate governance disclosure and the relationship between various corporate attributes and with the level of that mandatory disclosure of the banking companies of Bangladesh. The study revealed that Bangladeshi banking companies have high level of compliance to the mandatory corporate governance disclosure and the variables of board size, ownership, board composition, and profitability have significant impact in the corporate governance disclosure. However, the inclusion of the separate section of Corporate Governance Reporting in the annual reports and suggested guidelines for mandatory list of items to be included in the report is a milestone for Bangladesh. For the purpose, the study has developed a questionnaire based on recent literature survey and have gathered the opinions of the executives of three sample banks under the framework of likerts 5 point scale. The gathered primary data have been properly analysis by a number of descriptive statistics, such as, Mean, Standard Deviation, ANOVA and Post hoc multiple comparison tests.