Evaluation of Some Private Commercial Banks in Bangladesh from Performance Perspectives

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.