Productivity and Profitability Analysis of Nationalized Commercial Banks (NCBs) in Bangladesh

Md. Imtiaj Rahman; Debasish Adhikary; Salahuddin Yousuf

doi:doi:10.11648/j.ijefm.20140202.22

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Productivity and Profitability Analysis of Nationalized Commercial Banks (NCBs) in Bangladesh

Md. Imtiaj Rahman, Debasish Adhikary, Salahuddin Yousuf

Published in International Journal of Economics, Finance and Management Sciences (Volume 2, Issue 2)

Received: 29 March 2014 Accepted: 10 April 2014 Published: 20 April 2014

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Abstract

Banks, the leading financial institutions, are the major contributors in the economic & financial development of Bangladesh. Performance of banking sector in Bangladesh has invited a lot of comments in recent years. It is no doubt an important problem. Profitability, productivity and associated risks to these two components are the major criteria for evaluating the performance of banks. In this study, it has been tried to find out the performance of NCBs within a very short period (2008 to 2012). There are four nationalized commercialized banks in Bangladesh. For the convenient of this research study three banks have been taken. The study relies on secondary sources of data. The tables in the study highlights movements of banking variables as reflected in the branch expansion, deposit mobilization, deployment of credit, operational efficiency and relative risk measures. The results so far achieved through ratio analysis are not very encouraging. In the light of this finding, it can be realized that the confidence of the general public, who wants to rely on these NCBs, in the soundness of the banking system, remains unimpaired and the financial strength of the banks gets increased. Also some recommendations are put forward to move in an effective pace with regard to time covering the whole banking system, emphasize more on achieving core objectives

Published in	International Journal of Economics, Finance and Management Sciences (Volume 2, Issue 2)
DOI	10.11648/j.ijefm.20140202.22
Page(s)	197-205
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2014. Published by Science Publishing Group

Keywords

Profitability, Productivity, Performance, Nationalized, Commercialized, Banks

References

[1]	“Banks Since Nationalisation”. Birla Institute of Scientific Research Allied Publishers Ltd. New Delhi 1981.
[2]	Abbasoglu, O. F., Aysan, A. F., Gunes, A. (2007). Concentration, competition, efficiency, and profitability of the Turkish banking sector in the Post-Crisis Period. Banks and Bank Systems, 2 (3): 106–115
[3]	Agrani Bank (2008). Annual Report 2007-12. Dhaka: Agrani Bank.
[4]	Alpher, D. & Anbar, A. (2011), Bank Specific and Macroeconomic Determinants of Commercial Bank Profitability: Empirical Evidence from Turkey, Business and Economics Research Journal, Volume 2 . Number 2, pp. 139-152.
[5]	Bangladesh Bank (2013). Economic Trends. January. Dhaka: Statistics Department. Bangladesh Bank.
[6]	Berger, A. N. (1995). The Relationship between Capital and Earnings in Banking. Journal of Money, Credit and Banking, 27(2), 432-456.
[7]	Debnath. R. M. (2013). Bangaleer Bank Baybsa (Bengali). Dhaka. NabajugProkashoni.
[8]	Dietrich, A. &Wanzenried, G. (2009). What Determines the Profitability of Commercial Banks? New Evidence from Switzerland. 12th Conference of the Swiss Society for Financial Market Researches, Geneva. Discussion Paper.
[9]	Janata Bank (2008). Annual Report 2007-12. Dhaka: Janata Bank.
[10]	Lui, H. & Wilson, J. (2010). The Profitability of Banks in Japan. Applied Financial Economics, 20(24). pp.1851-1866.
[11]	Mishra, Sheila (1992). The Age of the Acheulian in India, Current Anthropology, Vol. 33, No. 3. (Jun., 1992), pp. 325-328.
[12]	Naceur, S. B. (2003). The Determinants of the Tunisian Banking Industry Profitability: Panel Evidence. UniversiteLibre de Tunis Working Papers.
[13]	Pervan, M., Pervan, I. &Guadagnino, A. (2010), Market Structure and Profitability of Croatian Commercial Banks, The Business Review, Cambridge, Vol. 16, No. 1.
[14]	Sonali Bank, Annual Report 2008-12. Dhaka: Sonali Bank.
[15]	Toor, N.S. (1994). Non-Performing Advances in Banks, New Delhi: Skylark Publication.

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APA Style

Md. Imtiaj Rahman, Debasish Adhikary, Salahuddin Yousuf. (2014). Productivity and Profitability Analysis of Nationalized Commercial Banks (NCBs) in Bangladesh. International Journal of Economics, Finance and Management Sciences, 2(2), 197-205. https://doi.org/10.11648/j.ijefm.20140202.22

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ACS Style

Md. Imtiaj Rahman; Debasish Adhikary; Salahuddin Yousuf. Productivity and Profitability Analysis of Nationalized Commercial Banks (NCBs) in Bangladesh. Int. J. Econ. Finance Manag. Sci. 2014, 2(2), 197-205. doi: 10.11648/j.ijefm.20140202.22

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AMA Style

Md. Imtiaj Rahman, Debasish Adhikary, Salahuddin Yousuf. Productivity and Profitability Analysis of Nationalized Commercial Banks (NCBs) in Bangladesh. Int J Econ Finance Manag Sci. 2014;2(2):197-205. doi: 10.11648/j.ijefm.20140202.22

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@article{10.11648/j.ijefm.20140202.22,
  author = {Md. Imtiaj Rahman and Debasish Adhikary and Salahuddin Yousuf},
  title = {Productivity and Profitability Analysis of Nationalized Commercial Banks (NCBs) in Bangladesh},
  journal = {International Journal of Economics, Finance and Management Sciences},
  volume = {2},
  number = {2},
  pages = {197-205},
  doi = {10.11648/j.ijefm.20140202.22},
  url = {https://doi.org/10.11648/j.ijefm.20140202.22},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijefm.20140202.22},
  abstract = {Banks, the leading financial institutions, are the major contributors in the economic & financial development of Bangladesh. Performance of banking sector in Bangladesh has invited a lot of comments in recent years. It is no doubt an important problem. Profitability, productivity and associated risks to these two components are the major criteria for evaluating the performance of banks. In this study, it has been tried to find out the performance of NCBs within a very short period (2008 to 2012). There are four nationalized commercialized banks in Bangladesh. For the convenient of this research study three banks have been taken. The study relies on secondary sources of data. The tables in the study highlights movements of banking variables as reflected in the branch expansion, deposit mobilization, deployment of credit, operational efficiency and relative risk measures. The results so far achieved through ratio analysis are not very encouraging. In the light of this finding, it can be realized that the confidence of the general public, who wants to rely on these NCBs, in the soundness of the banking system, remains unimpaired and the financial strength of the banks gets increased. Also some recommendations are put forward to move in an effective pace with regard to time covering the whole banking system, emphasize more on achieving core objectives},
 year = {2014}
}

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TY - JOUR
T1 - Productivity and Profitability Analysis of Nationalized Commercial Banks (NCBs) in Bangladesh
AU - Md. Imtiaj Rahman
AU - Debasish Adhikary
AU - Salahuddin Yousuf
Y1 - 2014/04/20
PY - 2014
N1 - https://doi.org/10.11648/j.ijefm.20140202.22
DO - 10.11648/j.ijefm.20140202.22
T2 - International Journal of Economics, Finance and Management Sciences
JF - International Journal of Economics, Finance and Management Sciences
JO - International Journal of Economics, Finance and Management Sciences
SP - 197
EP - 205
PB - Science Publishing Group
SN - 2326-9561
UR - https://doi.org/10.11648/j.ijefm.20140202.22
AB - Banks, the leading financial institutions, are the major contributors in the economic & financial development of Bangladesh. Performance of banking sector in Bangladesh has invited a lot of comments in recent years. It is no doubt an important problem. Profitability, productivity and associated risks to these two components are the major criteria for evaluating the performance of banks. In this study, it has been tried to find out the performance of NCBs within a very short period (2008 to 2012). There are four nationalized commercialized banks in Bangladesh. For the convenient of this research study three banks have been taken. The study relies on secondary sources of data. The tables in the study highlights movements of banking variables as reflected in the branch expansion, deposit mobilization, deployment of credit, operational efficiency and relative risk measures. The results so far achieved through ratio analysis are not very encouraging. In the light of this finding, it can be realized that the confidence of the general public, who wants to rely on these NCBs, in the soundness of the banking system, remains unimpaired and the financial strength of the banks gets increased. Also some recommendations are put forward to move in an effective pace with regard to time covering the whole banking system, emphasize more on achieving core objectives
VL - 2
IS - 2
ER -

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Author Information

Md. Imtiaj Rahman

School of Accounting and Finance, Charles Sturt University, Melbourne, Australia
Debasish Adhikary

Business Administration Discipline, Khulna University, Khulna, Bangladesh
Salahuddin Yousuf

Business Administration Discipline, Khulna University, Khulna, Bangladesh

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APA Style

Md. Imtiaj Rahman, Debasish Adhikary, Salahuddin Yousuf. (2014). Productivity and Profitability Analysis of Nationalized Commercial Banks (NCBs) in Bangladesh. International Journal of Economics, Finance and Management Sciences, 2(2), 197-205. https://doi.org/10.11648/j.ijefm.20140202.22

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ACS Style

Md. Imtiaj Rahman; Debasish Adhikary; Salahuddin Yousuf. Productivity and Profitability Analysis of Nationalized Commercial Banks (NCBs) in Bangladesh. Int. J. Econ. Finance Manag. Sci. 2014, 2(2), 197-205. doi: 10.11648/j.ijefm.20140202.22

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AMA Style

Md. Imtiaj Rahman, Debasish Adhikary, Salahuddin Yousuf. Productivity and Profitability Analysis of Nationalized Commercial Banks (NCBs) in Bangladesh. Int J Econ Finance Manag Sci. 2014;2(2):197-205. doi: 10.11648/j.ijefm.20140202.22

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@article{10.11648/j.ijefm.20140202.22,
  author = {Md. Imtiaj Rahman and Debasish Adhikary and Salahuddin Yousuf},
  title = {Productivity and Profitability Analysis of Nationalized Commercial Banks (NCBs) in Bangladesh},
  journal = {International Journal of Economics, Finance and Management Sciences},
  volume = {2},
  number = {2},
  pages = {197-205},
  doi = {10.11648/j.ijefm.20140202.22},
  url = {https://doi.org/10.11648/j.ijefm.20140202.22},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijefm.20140202.22},
  abstract = {Banks, the leading financial institutions, are the major contributors in the economic & financial development of Bangladesh. Performance of banking sector in Bangladesh has invited a lot of comments in recent years. It is no doubt an important problem. Profitability, productivity and associated risks to these two components are the major criteria for evaluating the performance of banks. In this study, it has been tried to find out the performance of NCBs within a very short period (2008 to 2012). There are four nationalized commercialized banks in Bangladesh. For the convenient of this research study three banks have been taken. The study relies on secondary sources of data. The tables in the study highlights movements of banking variables as reflected in the branch expansion, deposit mobilization, deployment of credit, operational efficiency and relative risk measures. The results so far achieved through ratio analysis are not very encouraging. In the light of this finding, it can be realized that the confidence of the general public, who wants to rely on these NCBs, in the soundness of the banking system, remains unimpaired and the financial strength of the banks gets increased. Also some recommendations are put forward to move in an effective pace with regard to time covering the whole banking system, emphasize more on achieving core objectives},
 year = {2014}
}

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