Asset Size

Table of Contents
EXECUTIVE SUMMARY ....................................................................................................... 4

1.1 INTRODUCTION ............................................................................................................... 7
1.2 Objective of the study .......................................................................................................... 8
1.3 Rationale of the Study .......................................................................................................... 8
1.4 Methodology ........................................................................................................................ 8
1.5 Limitations ......................................................................................................................... 10
2.0 EMPIRICAL STUDIES BASED ON DETERMINANTS OF OPERATING
PERFORMANCE OF BANKING INDUSTRY ..................................................................... 12
3.0 AN OVERVIEW OF THE BANKING INDUSTRY IN BANGLADESH....................... 19
3.1 Institutional Framework Governing Banking Sector in Bangladesh ............................. 20
3.2 Legal Framework of the Banking Sector in Bangladesh ............................................... 21
3.3 Legal Reforms and Prudential Regulations ................................................................... 23
3.4 Competition Of Banking Sector In Bangladesh............................................................. 26
4.0 ASSET SIZE OF THE BANKING INDUSTRY .............................................................. 28
4.1 Breakdown of the Asset Size of the industry overtime...................................................... 29
4.2 Benchmark of the Analysis ............................................................................................ 33
5.0 ANALYSIS AND FINDINGS .......................................................................................... 35
5.1 Profitability Ratios ......................................................................................................... 35
5.2 Efficiency Ratios ............................................................................................................ 41
5.3 NPL to Total Loan Ratio (NPLTL) ............................................................................... 49
5.4 Findings.......................................................................................................................... 52
6.0 CONCLUSION .................................................................................................................. 55
REFERENCES ........................................................................................................................ 56
APPENDIX .............................................................................................................................. 58
APPENDIX-B ...................................................................................................................... 61
APPENDIX-C ...................................................................................................................... 63
APPENDIX-D...................................................................................................................... 65
APPENDIX-E ...................................................................................................................... 68
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List of Tables
Particulars Page no.

Table 1.1: list of banks 5
Table3.1: Banking system structure 18
Table 3.2: NPL to Loan Ratio (Ind over the years) 19
Table 5.1: Category wise ROE For 2007 to 2011.
34
Table 5.2: Category wise ROA For 2007 to 2011.
36
Table 5.3: Category wise PM For 2007 to 2011.
38
Table 5.4: Category wise ROD For 2007 to 2011.
40
Table 5.5: Category wise IEE For 2007 to 2011.
42
Table 5.6: Category wise OEA For 2007 to 2011.
44
Table 5.7: Category wise OIA For 2007 to 2011.
46
Table 5.8: Category wise ATO For 2007 to 2011.
48
Table 5.9: Category wise NIM For 2007 to 2011.
50
Table 5.10: Category wise NPLTL For 2007 to 2011.
52
List of Figures
Particulars Page no.

Figure 4.1: Asset Size (Benchmark) 27
Figure 4.2: Asset Size individual Banks for 2007 28
Figure 4.5:Asset Size individual Banks for 2010 32
Figure 5.1: Category wise ROE For 2007 to 2011. 34
Figure .8: Category wise ROA For 2007 to 2011 36
Figure 3.9: Category wise PM For 2007 to 2011 38
Figure 6.1: Category wise ROD For 2007 to 2011 40
Figure 6.2 : Category wise IEE For 2007 to 2011 42
Figure 6.2 : Category wise OEA For 2007 to 2011 44
Figure 6.2 : Category wise OIA For 2007 to 2011 46
Figure 6.2 : Category wise ATO For 2007 to 2011 48
Figure 6.2 : Category wise NIM For 2007 to 2011 50
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EXECUTIVE SUMMARY
The performance of the banking industry is vital for the socio-economic development and
sustainable growth of a country. Bangladesh is a developing country where banking sector
has been playing a crucial role in the economic development of the country. The soundness of
the banking system of a country is closely related to the health of its economy because in a
developing country like Bangladesh the banking system as a whole play a vital role in the
progress of economic development. The financial system in Bangladesh is mainly composed
of two types of institutions: banks and non-bank financial institutions (NBFIs). The banking
sector is supervised and regulated by the Bangladesh Bank, the central Bank of Bangladesh.
The banking sector alone accounts for a substantial share of financial sector assets, with 48
banks accounting for about 95percent of the sectors total assets as of the end of December
2011. Since 2002, the domination of the banking system by the state-owned commercial
banks has been declining while private commercial banks and foreign commercial banks have
been gaining market share in both deposits and bank loans and advances. In 2011, the SCBs
held 27.8 percent of the total industry assets as against 28.5 percent in 2010, as against 28.6
percent in 2009. PCBs' share rose to 60.0 percent in 2011 from 58.8 percent in 2010 and
57.4% in 2009. The FCBs' share in total industry assets remained unchanged at 6.6 percent in
2011. In 2011, the FCBs and the PCBs had the lowest and the DFIs had the highest ratio of
gross NPLs to total loans. The SCBs had a gross NPLs ratio of 11.3 percent whereas in case
of the PCBs, the FCBs and the DFIs, the ratios were 2.9, 2.9 and 24.6 percent respectively, at
the end of December 2011. At the end of fiscal year 2012, the gross NPL ratios for the SCBs,
the PCBs and the FCBs increased to 13.5, 3.8 and 3.2 percent respectively and that of the
DFIs declined to 23.8 percent.
A bank with a higher degree of operating performance efficiency than its competitors which
means if the bank has a relatively low cost of production structure can adopt two different
strategies. The first option is to maximise profits by maintaining the present levels of prices
and company size. The second alternative is to maximise profits by reducing prices and
expanding the size of the company. If the bank chooses the second option, the most efficient
banks will gain market share and bank efficiency will be the driving force behind the process
of market concentration without necessarily reducing the competitiveness. whether the large
sized banks have efficient operating performance compared to that of the small sized banks,
this is a burning question. With a view to performing this analysis a benchmark should be
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selected & that benchmark would be the average asset size of the industry over the years.
Upon which, the banks are categorized into two forms- large sized and small sized banks.
ROE of large-sized banks have outperformed the industry and small-sized banks in most of
the cases. So large sized banks have higher return on equity compared to small-sized banks.
Large-sized banks use the assets more efficiently to generate earnings. Large sized Banks
have higher return on deposits in most of the years; which indicates efficient use of deposits
compared to Small sized Banks. Operating expense to asset ratio, the Large-sized banks have
lower percentage compared to the industry and small sized banks which indicates the cost
efficiency of Large-sized banks. In this report operating performance of the banking sector is
measured from analyzing correspondent determinants of it. Profitability and Efficiency of the
selected banks are measured by calculating different ratios.
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Chapter- 01
Introduction
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1.1 Introduction
Bangladesh is a developing country where banking sector has been playing a crucial role in
the economic development of the country. The soundness of the banking system of a country
is closely related to the health of its economy because in a developing country like
Bangladesh the banking system as a whole play a vital role in the progress of economic
development. If different sectors of an economy is not properly financed, the economy will
be destroyed and the overall economic growth will be slowed down. Thus in the country, the
loan facility provided by banks works as an incentive to the producer to increase the
production. So banking is now an essential part of our economic system.
Actually the banks are very old form of financial institution that channel excess funds from
surplus unit to deficit unit in consideration of a price called the interest. With regards to this
B. Yuosre and J. Juththip (2010) stated that banking business definitely established on a
relationship of debtor-creditor between the surplus unit called depositors and the bank and
between the deficit unit called borrowers and the bank. Here, opportunity cost of money
works as interest is considered the price of the credit. For the overall development of an
economy, bank provides a huge contribution and the modern economy cant be imagined
without the proper service of the banking sector. The development of a countrys economy
requires a properly organized, smoothly maintained, easy to reach and efficient saving-
investment process.
In a view of IMF it was stated that the recent financial crisis showed many weaknesses within
the on hand financial system around the world and these triggers many important issues
linking to the proper protection of the banking institutions against possible future non-
expected several risks associated with the periods of insecurity (International Monetary Fund,
2009). Banking regulatory authorities are directly responsible to evaluate the overall
performance of each of the banking business to search out any flaw that existed. So the
regulatory authorities should have to presume any of the upcoming difficulties about the
performance of different banks.
From the above perspective it can be said that the modern trade and commerce would
completely be impossible without the availability of suitable banking services. So, examining
the impact of banking industry to the economic development of Bangladesh is very crucial
and it will have significant implicational importance. In this paper it has been tried to
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evaluate the operating efficiency and competitive market structure of banking industry of
Bangladesh.
1.2 Objective of the study
The thesis paper is developed to explore several objectives by critically examining the
commercial banks of Bangladesh. Its major objectives are given below-
To analyse the determinants of operating performance of Banks.
To categorize the banks based on the asset size & evaluate the performance of each
category.
To analyze the recovery performance of the selected banks.
1.3 Rationale of the Study
Analyzing the operating efficiency and performance of a bank is very important for the all
stakeholders of the banks. A bank with smooth performance gains the loyalty from all of its
stakeholders. The smooth run of the banks mainly depends on the efficiency of their own
operation. Thus to achieve and retain the operating efficiency is very much crucial from the
perspective of any bank. On the other hand, competitive market structure is as well important.
1.4 Methodology
There are two research methods including qualitative research method and quantitative
research method. The paper will use a blend of qualitative and quantitative research method
for this particular research. The overall methodology to prepare this paper has been discussed
in detail below:
Data Source: All the information required for this study will be collected from mainly from
the secondary sources. These sources DSE Library, manuals and brochures of different banks
and published annual reports of the banks are the major sources used to collect the data.
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Sampling Design: There are 30 (Thirty) enlisted banks in Dhaka Stock Exchange (DSE). To
examine the operating efficiency and market competitive structure of the banking industry a
sample of 15 (Fifteen) banks are selected. The sample units have been chosen for the study
based on the availability of required financial data for the sample year 2007-2011. The
regressions that have been conducted in this paper are panel regression and several variables
are used in these regression models. Under each variable 75 observations have been collected
which are also found by selected 15 banks for the 5 years mentioned earlier. So in this study,
the paper deals with a panel dataset where n=15 and t=5. Total number of observations in the
dataset is 75.
Name of the Banks
AB Bank Limited Exim Bank of Bangladesh

Al-Arafah Islami Bank First Security Islami Bank Limited
Bank Asia Ltd. ICB Islamic Bank Limited
BRAC Bank Ltd. IFIC Bank
City Bank Islami Bank
Dhaka Bank Jamuna Bank Ltd.
Dutch-Bangla Bank Mercantile Bank Ltd.
Eastern Bank
Table 1.1: list of banks
Analytical Framework: In the study mainly different types of statistical analysis have been
performed to show and judge operating performance of the banking industry of Bangladesh.
In the first part, a general overview of the banking industry of Bangladesh is given. Here, the
state of the banking industry in Bangladesh over the years is going to be discussed. These
data are collected from the secondary sources mainly from Bangladesh Bank. The structure of
the banking system, different types of ratios such as NPL to Loan, capital to risk-weighted
asset ratio etc. will be discussed here from the perspective of four types of banking institution
in our country. In this section, the different types of reform and financial regulation regarding
banking sector will be discussed.
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In the next part of the paper, based on the sample data of the 15 (Fifteen) banks, the industry
average of different types of bank ratios will be discussed such as profitability ratios,
efficiency ratios, asset quality indicators, liquidity ratios etc. these ratios will be calculated to
find the industry average of each one based on our sample data.
In the next part of the analysis, the focus is given on analyzing the efficiency and
performance of the banking institutions a comparative analysis of the two broad categories
those are Large-sized Banks and Small-sized Banks.
In the last segment the determinants of operating performance has been judged. In this
section, based on the analysis of the previous section the necessary recommendations will be
provided.
1.5 Limitations
Though utmost effort has been given to prepare this paper but there are some limitations
of the study. Those limitations are given below-
Only five years data is not sufficient to analyze the long run efficiency of the selected
banks compared to their overall commercial private banking sector.
Most of the data used in this report are based on the secondary sources, so there may
be errors in the data set.
Above are the main two limitations of the report that should be kept in mind while using the
information provided by the report.
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Chapter-2
Literature Review
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2.0 Empirical Studies Based on Determinants of Operating
Performance of Banking Industry
The performance of the banking industry is vital for the socio-economic development and
sustainable growth of a country. As a result, the overall performance of the banking industry
of a country is a topic of mass discussion among scholars and other relevant bodies. Among
overall performance of banking industry, the operating performance is very crucial .So a
number of researches have been conducted and numerous studies have been published in
different countries on the operating performance and determinants of operating performance
of the banking industry. The key findings of some of these important studies are mentioned in
this section. The study of the effect on bank efficiency of structural and environmental factors
by Neff, Dixon, and Zhu (1994) found that a higher agricultural loan ratio reduces cost
inefficiency but increases profit inefficiency. Large banks in metropolitan areas, through their
many local branches, can reap economies of scale. The existence of other large rival banks in
an urban area fosters competition and drives banks to operate more efficiently. Levonian
(1996) showed that banks headquartered in metropolitan areas, even though they have
branches in agricultural areas, are less likely to engage in agricultural lending.
Featherstone (1996) observed that small rural banks are likely to be acquired by large banks
specializing in agricultural loans. As a result, mergers and acquisitions do not affect the rural
economy. Although large banks in the future are likely to dominate rural areas, recent
changes in banking regulation are favorable to small banks in reducing their regulatory
burden. They are now allowed to expand into new businesses. Gilbert (1997) showed
evidence that competition from new entrants of large banks would also compel small banks in
the rural areas to operate more efficiently. As small rural banks specializing in agricultural
loans had not been the primary targets of interstate mergers and acquisitions, Neff and
Ellinger (1996) argued that those small rural agricultural banks can continue to retain the old
agricultural business as well as expanding into consumer loans.
Weber and Devaney (1998) indicated that local banks in rural areas usually make only local
loans and tend to be less technically efficient due to small-scale operations. After the
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deregulation of interstate branching in 1997, Gilbert (1997, 2000) asserts that large banks
with more resources are likely to expand into rural areas leading to greater competition and
efficiency. However, there is another view by Gilbert and Belongia (1988) that argues that
large banks, being able to diversify, may be less inclined to invest in agricultural loans. The
entry of large banks into rural areas, therefore, may actually lower credit availability in rural
areas. Jayartne and Strahan (1996) found the liberalization of branch restrictions stimulates
the rural economy by increasing competition.
The increasing competition in the national and international banking markets, the change
over towards monetary unions and the new technological innovations herald major changes in
banking environment, and challenge all banks to make timely preparations in order to enter
into new competitive financial environment. ( Spathis, and Doumpos, 2002 ) investigated the
effectiveness of Greek banks based on their assets size. They used in their study a multi
criteria methodology to classify Greek banks according to the return and operation factors,
and to show the differences of the banks profitability and efficiency between small and large
banks.(Chine Ho, and Song Zhu, 2004 ) showed in their study that most previous studies
concerning company performance evaluation focus merely on operational efficiency and
operational effectiveness which might directly influence the survival of a company.
A paper in the title of efficiency, customer service and financing performance among
Australian financial institutions (Elizabeth Duncan, and Elliott, 2004) showed that all
financial performance measures as interest margin, return on assets, and capital adequacy are
positively correlated with customer service quality scores. Generally, the concept of
efficiency can be regarded as the relationship between outputs of a system and the
corresponding inputs used in their production.
Private commercial banks in Bangladesh play a crucial role not only in the growth of the
banking sector but also in the progress of economic development of the country. Actually the
overall banking industry of Bangladesh especially the private commercial banks of
Bangladesh are able to achieve a stable growth of branches, employees, deposits, loans &
advances, net income and also of some other factors. Among all of these factors the loans &
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advances and deposit has most significant impact on the operating performance of the
banking industry (Chowdhury and Ahmed, 2009).
Besides this it is to be noted that the operating performance and efficiency of the banking
industry of a country can be best measured by the financial variables and different ratios.
Actually higher asset, larger size, higher credit expansion or more deposit does not mean
that the banking industry has better profitability performance.
The operating performance and efficiency of a bank actually largely dependent on the
effective and efficient use of different indicators like deposit, credit, efficiency etc.; not on
the size of these indicators. So while a bank has the ability of operating these indicators in
both an efficient and effective way, only then the bank can achieve better operating
performance within its industry. In the same way, the overall banking industry of country
may be able to attain a greater profitability performance if all the banks within the industry
can operate its resources in the aforementioned way ( Asche, Bremnes,and Wessells 1999 ;
Ahmed and Arif 2011).
Bank ownership and bank operating efficiency may be closely related to each other in a sense
that private banks are considered to be more efficient than public or state-owned banks
(Barth, Caprio 2003). As the economy grows and more and more opportunities come into the
system, banks must focus on increasing their efficiency so that they can provide a firm
support in the financial market for the industries to develop (Rajput & Handa, 2011). An
efficient banking sector is able to absorb negative shocks and enhance financial system
stability.
Competition has greater impact on operating performance of banks. Measurement of the

competition may be divided into two broad categories: structural methods and non-structural
methods. The structural method analyses the banking competition starting from some
structural indicators such as the rate of concentration (the market share held by the top three
or five banks in the system). It assumes that a concentration in banking within the banking
system implies a weaker competition in the banking system and an increase in profitability.
According to the development of structural approach, it can be divided into two school of
thoughts basedon the traditional industrial organisation theory of banks. The first school of
thought emphasised on the structure conduct performance (SCP) paradigm. SCP hypothesis
assumes a causal relationship running from the structure of the market to the price setting
behaviour of banks and ultimately to profitability through the market power channel (Prasad
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and Ghosh 2005). It attempts to infer the degree of competition in an industry from its
structural features (Bain 1951).
On the other hand, the second school of thought contradicts the traditional SCP hypothesis
and proposes a competing explanation of the relation between market structure and operating
performance. This hypothesis is called efficient structure hypothesis (ESH) (Demsetz, 1973
& Peltzman, 1977). While analysing the validity of these two hypotheses from the
perspective of banking sector in Bangladesh, with empirical evidence EHS provides
explanation for market performance in Bangladesh (Samad, 2008).
The non-structural models or the new approach to empirical industrial organisation implies
that, the banks behave differently in terms of a particular market structure. So the operating
performance also differ for different banks.The non-structural indicators with regards to
market competition are based on ways of measuring market power developed by the H-
statistic proposed by Panzar and Rosse (1987) and the Lerner index (Lerner, 1934) .The H-
statistic expresses the sum of revenue elasticities with respect to input prices, which measures
the extent to which a change in factor input prices is reflected in the banks equilibrium
revenue. H 0 expresses the monopoly or conjectural variations short term oligopoly, where
as 0 < H < 1 means monopolistic competition characterised by free entry equilibrium excess
capacity and H = 1shows the perfect competition which could imply full entry equilibrium
with full and efficient capacity utilization.
High bank concentration erodes market power, as a result banks face lower profit margins
which means worse operating performance and accordingly it reduces banks franchise value
that encourages bank risk taking to increase return (Jimenez, Lopez et al. 2007). There is an
alternative view regarding this matter which expresses that, more market power in the loan
market will increase bank risk as high interest rates on loans result in the default of loan
customer and aggravate moral hazards incentives of borrowers to shift into risks. Highly
concentrated banking market motivate institutions to accept more risk as they believe that
they are too big to fail and that they are explicitly or implicitly protected by the government
safety net. This is well supported by recent empirical studies stating that the risk of bank
failure rises in more concentrated market.
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A bank with a higher degree of operating performance efficiency than its competitors which
means if the bank has a relatively low cost of production structure can adopt two different
strategies. The first option is to maximise profits by maintaining the present levels of prices
and company size. The second alternative is to maximise profits by reducing prices and
expanding the size of the company. If the bank chooses the second option, the most efficient
banks will gain market share and bank efficiency will be the driving force behind the process
of market concentration without necessarily reducing the competitiveness (Ahmed, 2012).
Besides this it is to be noted that the operating performance of the banking industry of a
country can be best measured by the financial variables and different ratios. Actually higher
asset, larger size, higher credit expansion or more deposit does not mean that the banking
industry has better profitability performance. Almazari (2011) figured out that among
different variables bank size, operating efficiency, total deposit, total credit and
shareholders equity plays a determinant role on the profitability and operating performance
of the banking industry
Along with these it should be mentioned that different trends in the banking industry have
greater impact on its operating performance and overall contribution to the economic
expansion of a country. If there is rapid change in the size and activity of the banking
industry, it may sometimes affect negatively on the operating performance of the bank. As a
result of this adverse performance of the banking sector there may be a creation of banking
crisis which can hamper the growth of the overall economy of a country. Beside this, a
positive trend in the growth of credit is always expected to contribute in the acceleration of
economic growth of a country. Sapkota (2012) gave the same view about the impact of
banking industry on economic expansion and depression. But over expansion of credit
sometimes causes crisis in the banking sector and an economic depression over the country.
Kominek (2003) gave a quite similar view about the operating performance of the industry
and the economic growth of the country.
In another sense, the operating performance of the banking industry is also related to its asset
liability management and also some other factors that contributes to performance. The status
and the efficient management of the asset and liability of the bank can be represented through
different indicators. But only asset liability management is not a good indicator but also some
other factors as operating efficiency contributed to the operating performance of banking
sector (Asche 2008 ; Gupta, Shashi K. and Joshi 2010).
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In this report, the determinants of operating performance of Banking sector of Bangladesh
will be analysed through panel data analysis from the year 2007 to 2011. Where the key
variables will be total operating income, operating profit, total assets, board size, audit
committee size, audit committee meeting etc.
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Chapter-3
An overview of Banking Industry
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3.0 An overview of the Banking industry in Bangladesh
The financial system in Bangladesh is mainly composed of two types of institutions: banks
and non-bank financial institutions (NBFIs). The banking sector is supervised and regulated
by the Bangladesh Bank, the central Bank of Bangladesh. The banking sector alone accounts
for a substantial share of financial sector assets, with 48 banks accounting for about 95per
cent of the sectors total assets as of the end of December 2011. In recent days, seven new
banks get licensed to operate banking services within the country. This increases the share of
the banking institutions in the financial systems in the country. Since 2002, the domination
of the banking system by the state-owned commercial banks has been declining while private
commercial banks and foreign commercial banks have been gaining market share in both
deposits and bank loans and advances (Bhattacharya and Chowdhury 2003), reflecting an
increased competition in the banking industry.
(Amounts in Billion Taka)
Particulars 2010 2011 2012

Bank Nbank TA % of TD % of TA % of TD % of TA % of TD % of
Type TA Td Td TD TA TD
SCB 4 1136 29 869 29 1384 29 1045 28 1629 28 1236 27
DFI 5 262 7 161 5 295 6 183 5 329 6 214 5
PCB 30 2276 57 1792 59 2855 59 2267 61 3524 60 2788 62
FCB 9 293 7 215 7 321 7 227 6 385 7 272 6
Total 48 3966 100 3038 100 4855 100 3722 100 5868 100 4510 100
Table 3.1: Banking System Structure. (Source- BB)
In 2011, the SCBs held 27.8 percent of the total industry assets as against 28.5 percent in
2010, as against 28.6 percent in 2009. PCBs' share rose to 60.0 percent in 2011 from 58.8
percent in 2010 and 57.4% in 2009. The FCBs' share in total industry assets remained
unchanged at 6.6 percent in 2011. The DFIs' share of assets was 5.6 percent in 2011 against
6.1 percent in 2010.
Total deposits of the banks in 2010 rose to Taka 3721.9 billion from Taka 3037.6 billion in
2009 showing an overall increase by 22.5 percent. In 2011, it rose to Taka 4509.7 billion
from Taka 3721.9 billion in 2010 showing an overall increase of 21.2percent. The SCBs'
share in deposits decreased from 28.1 percent in 2010 to 27.4 percent in 2011. The PCBs'
deposits in 2011 amounted to Taka 2787.5 billion or 61.8 percent of the total industry
deposits against Taka 2266.5 billion or 60.9 percent in 2010. The FCBs' deposits in 2011 rose
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by Taka 45.1 billion over the year. The DFIs' deposits in 2011 were Taka 214.4 billion
against Taka 183.4 billion in 2010 showing an increase of 16.9 percent over the year.
The most important indicator of bank asset quality in the loan portfolio is the ratio of gross
non-performing loans (NPLs) to total loans and the ratio of net NPLs to net total loans.
(Percentage)
NPL/ TL 2004 2005 2006 2007 2008 2009 2010 2011 2012
SCB 25.3 21.4 22.9 29.9 25.4 21.4 15.7 11.3 13.5
DFI 42.9 34.9 33.7 28.6 25.5 25.9 24.2 24.6 23.8
PCB 8.5 5.6 5.5 5.0 4.4 3.9 3.2 2.9 3.8
FCB 1.5 1.3 0.8 1.4 1.9 2.3 3.0 2.9 3.2
Total 17.6 13.6 13.2 13.2 10.8 9.2 7.3 6.1 7.2
Table 3.2: NPL to Total Loan Ratio (source: BB)
In 2011, the FCBs and the PCBs had the lowest and the DFIs had the highest ratio of gross
NPLs to total loans. The SCBs had a gross NPLs ratio of 11.3 percent whereas in case of the
PCBs, the FCBs and the DFIs, the ratios were 2.9, 2.9 and 24.6 percent respectively, at the
end of December 2011. At the end of fiscal year 2012, the gross NPL ratios for the SCBs, the
PCBs and the FCBs increased to 13.5, 3.8 and 3.2 percent respectively and that of the DFIs
declined to 23.8 percent. The ratio of NPL to total loans of all the banks has shown an
encouraging trend declining from the peak (34.9 percent) in 2000. Nevertheless, the
aggregate ratio was still as high as 6.1 percent in 2011, resulting from the high NPL of the
SCBs and the DFIs and it further increased to 7.2 percent at the end of year 2012.
3.1 Institutional Framework Governing Banking Sector in Bangladesh
A countrys legal system may influence financial reporting disclosure. The common law
country is typified by solutions to specific cases drawn from practice and may create an
environment to increase disclosure to meet the increased demand of the stockholders.
Accounting practices in public sector commercial banks in Bangladesh are regulated by the
Bangladesh (Nationalization) Order 1972, the Companies Act 1994, Securities Exchange
Rule 1987 and other statutes such as the Bank Companies Act 1991, the Insurance Act 1938
and the Income Tax Act 1922.
The audit of corporate entities and the professional responsibilities and conduct of chartered
accountants are governed by the Bangladesh Chartered Accountants Bye-laws 1973. The
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Companies Act 1994 does not require mandatory compliance with the adopted standards or
any other law backing compliance. Because of the absence of a mandatory legal requirement
for compliance, IAS and/or BAS compliance is voluntary.
The Bangladesh Securities and Exchange Commission and the Institute of Chartered
Accountants of Bangladesh have demonstrated a keen interest in implementing International
Accounting Standards (IAS) and International Standards on Auditing (ISA) to upgrade the
quality of corporate financial reporting.
The accounting and auditing practices in Bangladesh suffer from institutional weaknesses in
regulation, compliance, and enforcement of standards and rules. The preparation of financial
statements and conduct of audits, in many cases, are not consistent with internationally
acceptable standards and practices.
For that reasons, the Bangladesh institutional framework and capacity needed to ensure the
quality of corporate financial reporting and to focus on improving statutory framework,
strengthening enforcement mechanisms, upgrading professional education and training, and
enhancing capacity of regulatory and professional bodies. A major recommendation is that an
independent oversight body. Financial Reporting Council should be established. The
Financial Reporting Council will be responsible for adoption, monitoring, and enforcement of
IAS and ISA with respect to financial reporting by the public- interest entities.
Under the Securities and Exchange Commission Act 1993, the Securities and Exchange
Commission (SEC) is the assigned regulatory body to regulate institutions engaged in capital
market activities. Under the Financial Institutions Act 1993, Bangladesh Bank regulates
institutions engaged in financing activities including leasing companies and venture capital
companies
3.2 Legal Framework of the Banking Sector in Bangladesh
A sound banking system requires an effective legal framework, which enables the central
bank to supervise and/or regulate the money market with sufficient authority to maintain
money market discipline. This should also enable the central bank to maintain an honest and
disciplined lender-borrower relationship to facilitate loan recoveries and discourage defaults
with provisions of punishment when default is willfully made. A strong and effective legal
framework would enable the central bank to function properly and with confidence that there
would be prompt and effective recourse in case any party feels wronged and aggrieved.
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Impetus created by competition among the financial intermediaries and the fast changing
banking environment along with the financial sector developments require more appropriate
regulatory and supervisory framework. The following section largely draws from the
Financial Sector Review (2006) that maps the recent reforms on the legal framework for the
banking sector.
Bangladesh Bank was given regulatory power by the Bangladesh Bank Order (1972) and the
Bank Companies Act (1991). In order to provide greater operational and policy autonomy
amendments of the Bangladesh Bank Order (1972), Bangladesh Bank (Nationalization) Order
(1972) and Bank Company Act (1991) were ratified by the parliament in 2003. Amendment
of the Bangladesh Bank Order (1972) redefined central bank functions in a more focused way
by awarding enhanced authority and making it accountable for its performance. Bangladesh
Bank (nationalization) order amendment was done with a view to improving governance of
the NCBs. Amendment of the Bank Company Act (1991) gave Bangladesh Bank more
authority and increased powers to regulate and supervise the banking sector. In addition, a
new Financial (Money) Loan Court Act (2003) was setup to deal with problem of bad loans
or loan default; and Money Laundering Prevention Act was formalized in 2002 to deal with
the problem that has severe impact on the countrys money reserves. The Money Loan Court
was established as per the Money Loan Court Act of 1991. It is yet to make a mark on the
loan default scenario. Financial Institutions Act (1993), Deposit Insurance Act (1999),
Securities and Exchange Commission Act (1993) were designed to improve the money
market discipline.
Bangladesh Bank has put into place rules and procedures to improve off-site and on-site
supervision of the commercial banks and non-bank financial institutions. In the recent years,
the central bank has formulated new corporate governance guidelines, prudential regulations
and some other guidelines for the commercial banks and non-bank financial institutions,
guidelines for core areas of risk management under the jurisdiction of the central bank. These
are designed to structure the banking sector and harmonize them with international standards.
Nationalized commercial banks (NCBs), owned by the government, have different
governance structures. These new rules and procedures have limited applicability and
effectiveness on the NCBs. However, the central bank has introduced new procedures on loan
classification and provisioning along with other aspects of this problem.
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3.3 Legal Reforms and Prudential Regulations
As part of the ongoing efforts to strengthen the banking system through the adoption of
policies aimed at both improving the financial strength of banks as well as bringing about
greater transparency in their operations, several policy measures were initiated in 2010.
Capital Adequacy of the Banks
BB has introduced a new Risk Based Capital (RBCA) framework for banks from 2009 in line
with Basel-II. One year parallel run of Basel-II with Basel-I was in practice for capital
adequacy during 2009. Basel-II has fully come in to force from January 2010 as a regulatory
compliance. Under the new capital adequacy framework (Basel-II), BB is entrusted with
ensuring that banks are accurately assessing all the risk they are exposed to and maintaining
the required capital in commensurate with their risk profile.
Rationalization of Schedule of charges
Bangladesh Bank has rationalized the charges of some services to ensure the interest of
depositors/investors/customers and advised all Scheduled Banks to display the complete
schedule of charges in suitable visible places in their Branches and Head Offices' for their
customer's information and up-load the same in their respective websites for the convenience
of the customers. Considering the interest of the small depositors it has been decided that no
charge can be imposed as account maintenance fee for average deposit balance up to Taka
5000.
Rationalization of Rate of Interest
Banks in general are free to charge/fix their deposit and lending rate. However, the maximum
cap of 7% interest on export credit has been fixed since 10 January 2004 by Bangladesh Bank
to facilitate export earnings. Considering the existing inflation rate and global economic
situation, the maximum rate of interest on agriculture, term loans and working capital for
large and medium scale industry, housing sector loan, trade financing and financing to
NBFI's by banks has been fixed at 13%.
Loan Rescheduling Policy
Banks have been advised that rescheduling with down payment may take place for Short
Term Agricultural Credit as per clause 1.02 of BRPD circular No.01/2003. Bangladesh Bank
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issued necessary instructions to the banks to facilitate the borrowers affected due to global
recession by providing them with rescheduling facility without necessary down payment till
30 June 2010 on the basis of banker-customer relationship considering merit of the case.
Bank Account for Farmers
Considering contribution of the farmers to the economic activities especially in agricultural

activities, it has been decided that a farmer can open an account by depositing 10 Taka only
at any state owned commercial and specialized bank against National ID Card/Birth
Registration Card and Agricultural Equipment Assistance Card issued by the Department of
Agricultural Extension.
Assistance for Export Oriented Ship Industry
Bangladesh Bank has issued necessary instructions to facilitate export oriented ship industry
in the backdrop of increasing demand of ocean going ship in the world market. Those
instructions issued with a view to increasing export earnings as well as creating huge
employment.
Cash Reserve Requirement of Scheduled Banks with Bangladesh Bank
In pursuance of the objectives of monetary policy, the amount of Cash Reserve Requirement
(CRR) has been increased to 5 percent from 4.5 percent of the banks' total demand and time
liabilities effective from 1 October 2005 and remained unchanged thereafter. However, the
banks are allowed to maintain CRR at the rate of 5.5 percent bi-weekly average basis subject
to the condition that the amount of CRR maintained should not be less than 5.0 percent in any
day from 15 May 2010.
Statutory Liquidity Requirement of Scheduled Banks
Statutory Liquidity Requirement (SLR) of scheduled banks, excluding those banks and
branches of conventional banks based and operated on Islamic Shariah and also the
specialised banks (except Basic Bank Ltd.), has been increased to 18.5 percent (of total
demand and time liabilities excluding inter-bank items) effective from 15 May 2010.
Corporate Governance in Banks
Liquidity and solvency problems caused by poor governance in banks can have harmful
systematic consequences in the broader economy reliant on banks for credit and payment
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services. High priority is therefore accorded to give corporate governance in banks, putting in
place checks and balances comprising a mix of legal, regulatory and institutional provisions
specifying the roles and accountabilities of the board, the executive management, external
and internal audit, disclosure and transparency prescriptions.
Corporate Social Responsibility
Corporate social responsibility (CSR) is mainly about the awareness of and actions in support
of environmentally sustainable societal development. CSR actions aim at mitigating the
diverse environmental impacts of the activities of the business, and at reducing inequalities
and alleviating deprivation and poverty in the communities across the country. Out of forty
seven scheduled banks in Bangladesh, forty six had engagement in CSR practices in some
form or other in 2009.
Activities of Credit Information Bureau
In the backdrop of huge NPLs of the banks/financial institutions of the country during the
decade of the 1980s, a full-fledged Credit Information Bureau (CIB) was set up on 18 August
1992 in BB under Financial Sector Reform Project of the World Bank. The main objective
behind setting up the Bureau was to minimize the extent of default loan by facilitating the
banks and financial institutions with credit reports of the loan applicants so that the lending
institutions do not encounter any credit risk while extending any lending or rescheduling
facility.
Supervision of Banks
With a view to promoting and maintaining soundness, solvency and systematic stability of
the financial sector as well as protection of depositors interest, BB carries out two types of
supervision namely (i) off-site supervision and (ii) on-site supervision. Department of Off-
site Supervision (DOS) is vigilant to conduct off-site supervision on banks. The operations of
DOS are discussed in earlier sections of this, chapter.
On-site Inspection of Banks
BB, being the Central Bank of the country, is entrusted with the responsibility to Banking
Sector Performance, Regulation and Bank Supervision Chapter-557 regulates and supervises
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the banks and financial institutions operating in the country. Inspection of banking companies
is assigned on BB under article 7A (f) of the Bangladesh Bank Order 1972 and section 44 of
the Banking Company Ain 1991. Commercial Banks having CAMELS rating between 3-5
are inspected every year. Banks rated 1 or 2 are inspected once in every two years. Branches
of scheduled banks covering around 60-70 percent of total loans and advances are normally
brought under the comprehensive inspection programmed. This system has been adopted to
enhance the effectiveness of on-site inspection and to reduce the time gap between on-site
and off-site supervision.
3.4 COMPETITION OF BANKING SECTOR IN BANGLADESH
The banking industry in Bangladesh has flourished over the years, making double-digit profit
percentages, sustaining growth and surviving cut-throat competition while providing
attractive returns to shareholders. However, the greed for more without befitting platform and
fundamentals brings its own challenges and questions in people's minds. Not only are the
institutions competing, the regulators and customers are also pitting one against the other,
making the situation extremely difficult giving you the feeling of being stuck between a rock
and a hard wall. The economy of Bangladesh is growing steadily with a rise of new consumer
groups who are showing their interest to invest in new innovative products with secured
return.
Competition in the banking industry is also hitting from the capital market end, with the
corporate increasingly going to the equity market to rise funding. This not only hits the banks
in the belly by affecting their core business but also indirectly affects their contribution to
market cap which dropped from 59% in 2010 to less than 25% in June 2011. More
importantly it forces them to risk their position by over exposing them to volatile capital
market through proprietary trading and position taking in order to maintain profitability.
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Chapter- 04
Asset size Determination
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4.0 Asset size of the banking industry
The economy of Bangladesh is largely dependent on Banking industry. A sound banking

environment ensures the smooth run of the economy in long term. Thus it is very essential to
identify and analyze the size of this industry. In this section of our analysis, the focus is
mainly given on this topic. To identify and analyse the size of the banking industry, a sample
of 15 (Fifteen) banks have selected, through which a clear picture regarding the size of the
industry can be assumed.
In the analysis, as discussed previously the asset size of the industry will be analysed on basis
of five years data ranging from 2007 to 2011. To observe the asset size of the industry, the
mean value is considered in each year. Through the below graph, it can be explained more
precisely,
Asset size
140000.00
120000.00
100000.00
80000.00
60000.00 Asset size
40000.00
20000.00
0.00
2008 2009 2010 2011 2012
Figure 4.1: Asset Size from 2008-12.
The asset size of the industry shows an increasing trend over the last five years. In the year
2007, the asset size of the industry was Tk. 52,098.97 million. In the very next year, it
increased to Tk. 64,943.91 million increased at a rate of 24.65% than the previous year. In
the year 2009 the asset size grew to Tk. 82,243.67 million and increase at a rate of 26.64%
than the previous year. The very next year the asset size increased at a decreased rate of
21.48% compared to previous year and the correspondent amount was Tk. 99,908.92 million.
28 | P a g e
4.1 Breakdown of the Asset Size of the industry overtime
In the previous section of this chapter, the emphasise was given on the aggregate asset size
position of the industry over time. In this section, the breakdown of the asset size of the
banking industry will be discussed based on the data ranging from 2007 to 2011.
This study is based on the 15 (Fifteen) publicly traded commercial banks. While analyzing
the breakdown of the asset size of the industry, it can be seen that, the large portion of the
asset size is comprised of the assets of four commercial banks.
In the year 2007, the total asset size of the industry was nearly 52,098 million in which Islami
Bank Bangladesh Ltd. had the most significant asset size while comparing to the banks
individually.
ASSET SIZE-2007
200,000.00
150,000.00
ASSET SIZE-2007
100,000.00
50,000.00
-
DBL
MBL
FSIB
IBBL
DBBL
EXIM BANK
AL-ARAFAH
EBL
BRAC BANK
ICB ISLAMIC
BANK ASIA
CITY BANK
AB Bank
JAMUNA
IFIC
Figure 4.2: Asset Size of individual banks for the year 2007.
AB Bank, Islami Bank, EXIM Bank and Dhaka Bank captured significant portion of the total
asset size for the year 2007. While the other 11 (Eleven) banks each has very low portion of
contribution to the total asset size. In this year, ICB Islamic Bank Limited had the lowest
portion of the total asset size and the correspondent amount was Tk.17,481.06 million.
In the very next year, Islamic Bank Bangladesh Limited maintained its dominant position in
the industry in terms of the asset size. In this year, the asset size of the IBBL increased at a
rate of 20.65% compared to the previous year and the correspondent amount was Tk.
230,879.14 million. Again the top few banks had the potential contribution to the total asset
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size of the industry. In this year, the most significant improvement achieved by the bank was
BRAC Bank Limited, which increased at a rate of 56.08% compared to the previous year and
the correspondent amount was Tk.72,441 million.
Asset size-2008
250,000.00
200,000.00 Asset size-2008
150,000.00
100,000.00
50,000.00
-
FSIB
IBBL
DBL
DBBL
MBL
AL-ARAFAH
CITY BANK
EBL
BANK ASIA
JAMUNA
IFIC
AB Bank
BRAC BANK
EXIM BANK
ICB ISLAMIC
AB Bank, Islami Bank, EXIM Bank, Dhaka Bank and BRAC Bank captured significant
portion of the total asset size for the year 2008. While the other 10 (Ten) banks each has very
low portion of contribution to the total asset size. In this year, ICB Islamic Bank Limited
maintained the same position that is, the lowest portion of the total asset size and the
correspondent amount was Tk.19,631 million.
In the year 2009, the total asset size of the industry was 82,243 million in which IBBL had
the most significant asset size while comparing to the banks individually.
Asset Size-2009
300,000.00
Asset Size-2009
200,000.00
100,000.00
-
ICB
BRAC
IBBL
DBL
FSIB
MBL
DBBL
EBL
AL-ARAFAH
BANK ASIA
CITY BANK
EXIM BANK
IFIC
AB Bank
JAMUNA
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AB Bank, Islami Bank, EXIM Bank and BRAC Bank achieved significant portion of the total
asset size for the year 2009. But the interesting fact is, DBL could not maintain the prominent
position in the total asset size. While the other 10 (Ten) banks each has very low portion of
contribution to the total asset size. In this year, ICB Islamic Bank Limited maintained the
same position as before and its total assets decreased significantly with comparison to
previous year and the correspondent amount was Tk. 18,882 million.
In the very next year, Islamic Bank Bangladesh Limited continued lead in terms of the asset
size. In this year, the asset size of the IBBL increased at a rate of 18.86% compared to the
previous year and the correspondent amount was Tk. 330785.17 million. Again the top few
banks had the potential contribution to the total asset size of the industry. In this year, the
most significant improvement achieved by the bank was DBBL which increased at a rate of
24.18% compared to previous year and the correspondent amount was Tk.101,185 million.
Asset Size-2010
400,000.00
Asset Size-2010
300,000.00
200,000.00
100,000.00
-
DBL
MBL
IBBL
DBBL
EBL
FSIB
BRAC BANK
EXIM BANK
AL-ARAFAH
BANK ASIA
CITY BANK
IFIC
AB Bank
JAMUNA
ICB ISLAMIC
The above graph shows that, IBBL has the significant portion. The other significant portion
achieved by the banks named AB Bank, Islami Bank, EXIM Bank, Dutch Bangla Bank and
BRAC Bank respectively for the year 2010. While the other 11 (Eleven) banks each has very
low portion of contribution to the total asset size. In this year, ICB Islamic Bank Limited
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maintained the same position as before that is, the lowest portion of the total asset size and
the correspondent amount was Tk.18,641 million.
Islami Bank Limited is the most dominant market player in the banking industry Bangladesh.
And it has showed the same sign over the years. In the year 2010, the asset size of the IBBL
increased at a rate of 20.56% compared to the previous year and the correspondent amount
was Tk. 389,375 million. Again the top few banks had the potential contribution to the total
asset size of the industry.
Asset Size- 2011

400,000.00
Asset Size- 2011
300,000.00
200,000.00
100,000.00
-
DBL
MBL
IBBL
DBBL
EBL
FSIB
AL-ARAFAH
BANK ASIA
CITY BANK
AB Bank
BRAC BANK
EXIM BANK
IFIC
JAMUNA
ICB ISLAMIC
The above graph shows the same trend like previous year where AB Bank, Islami Bank,
EXIM Bank, Dutch Bangla Bank and BRAC Bank captured significant portion of the total
asset size for the year 2011. While the other 11 (Eleven) banks each has very low portion of
contribution to the total asset size. In this year, ICB Islamic Bank Limited maintained the
lowest position as before that is, the lowest portion of the total asset size and the
correspondent amount was Tk.18,015 million decreased 3.21% compared to its total assets of
2010.
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4.2 Benchmark of the Analysis
In this part of the analysis, the focus is given on whether the large sized banks have efficient
operating performance compared to that of the small sized banks. With a view to performing
this analysis a benchmark should be selected to make a comparison of this topic and find a
clear insight about this.
The emphasise is given on the average asset size of the industry in each year and make a
comparison of its with the individual banks. Banks those were performing above average that
means those had high total asset value in each year compared to the average asset size of the
industry are considered as the Large-Sized Banks and the banks those had lower asset size in
comparison with the average asset size in each year are regarded as the Small-Sized Banks.
The comparison is done on each year that means there may be one or more changes in each
category of banks. A large sized bank in one year can be degraded to the small sized bank in
following year due to its lower asset value compared to the average asset size of the industry
in the respective year.
In this analysis based on the 15 (Fifteen) commercial banks five years time series data, it can
can be seen that, Islami Bank Bangladesh Limited, EXIM Bank Ltd., Dutch Bangla Bank
Ltd., BRAC Bank Ltd. has the dominant position in the industry in terms of asset size. They
are regarded as the large sized banks in the analysis.
On the other hand, there are most of the banks had the asset size below to the industry
average asset size and few banks had very low asset size compared to the industry average.
ICB Islamic Bank Limited, First Security Islamic Bank Limited, Jamuna Bank Limited, IFIC
Bank Limited are the ones who had the below average asset size throughout the period 2007
to 2011.
After categorizing the 15 (Fifteen) banks into two category- Large sized Banks and Small
Sized Banks, both of these two are compared with the industry operating profitability and
efficiency ratios in each year. Actually, before categorizing the banks, the industry operating
profitability and efficiency ratios are calculated in each year to make a comparison with the
Large sized Banks and Small sized Banks. Through analyzing these ratios in each year, it will
provide a clear insight whether the large sized banks has higher operating efficiency
compared to the small sized banks and to find out the influential determinants of the
operating performance of banks.
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Chapter- 05
Analysis & Findings
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5.0 ANALYSIS AND FINDINGS
In this report several ratios have been calculated which are very important for showing the
performance of a bank company from different perspective. After calculating these ratios a
specific result has been found for all the selected banks. Result of calculation for all of these
ratios is presented in a panel which shows the operating performance of the banks at a point
in time as well as performance of a particular bank over the time. When performance of
different banks are presented and compared for a particular point of time or for a particular
year then it is called cross sectional analysis. Again when the performance of a bank is
compared over the time or over the years then it is called time series analysis. So a panel at a
time presents two dimensions which make it quite easy for the analysts to perform further
analysis.
In this report profitability ratio, operating efficiency ratios, risk weighted capital adequacy
ratio and non performing loan ratios are calculated, analyzed and presented. Again under
each of the above mentioned titles several ratios are calculated as well.
5.1 PROFITABILITY RATIOS
To show and analyze the profitability of the Large Sized Banks, Small Sized Banks and
Banking industrys ROE, ROA, Return on Deposit, Profit Margin, equity multiplier are
calculated. Following part of the report shows the profitability condition of the banks by
category.
5.1.1 Return on Equity:
In the year 2007, return on equity for the banking industry based on the sample data was
17.7%. At the same time, the ROE for Large-sized Banks was 25.8% which is much more
higher than the industry ROE. On the other hand, the ROE for the Small-sized Banks was
14.7%, which implies that the small sized Banks had lower ROE compare to Industry and
Large-sized Banks.
YEAR SMALL LARGE INDUSTRY
2007 14.7% 25.8% 17.7%
2008 17.7% 19.2% 18.2%
2009 22.6% 19.4% 21.7%
2010 23.9% 24.9% 25.0%
2011 18.1% 16.3% 16.8%
Table 5.1: Category wise ROE For 2007 to 2011.
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In the following year, the ROE of the banking industry based on the sample data of the study
was 18.2%, which shows an increasing trend compared to that of 2007. But from the
perspective of the Large-sized banks the ROE shows a decreasing trend and the respective
figure was 19.2% which is still higher than the industry ROE. In case of the Small-sized
Banks the ROE for the year 2008 shows an increasing trend and the correspondent figure is
17.7%. But it is still lower than the industry ROE.
Figure 5.1: Category wise ROE For 2007 to 2011.
In the next year 2009, industry ROE continued its increasing trend and the respective figure
was 21.7%. while the ROE for the Large-sized Banks increased very insignificantly and
surprisingly in this year the Large-sized Banks ROE is lower than that of the industry. Small
sized Banks ROE shows a significant growth and it was higher than the industry ROE. The
respective figure for the Small-sized Banks ROE was 23.9%.
In the following year 2010, industry ROE showed a significant increasing trend, increased at
a rate of 15.27% compared to the previous year and the respective figure was 21.7%. while
the ROE for the Large-sized Banks increased very significantly and in this year the Large-
sized Banks ROE is lower than that of the industry. Small sized Banks ROE shows a
insignificant growth and it was lower than the industry ROE. The respective figure for the
Small-sized Banks ROE was 22.6%.
In the year 2011, the Industry ROE decreased significantly and the decreasing rate was 32.7%
than 2010. Large-sized Banks ROE decreased more than the industry ROE and the
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decreasing rate was 34.57% compared to that of 2010 and the respective ROE was 16.3%,
which is lower than industry ROE. But the Small Sized Banks ROE is higher than that of the
industry and the respective figure was 18.1%.
5.1.2 Return on Asset
In the year 2007, return on Asset for the banking industry based on the sample data was
1.43%. At the same time, the ROA for Large-sized Banks was 1.72% which is much more
higher than the industry ROA. On the other hand, the ROA for the Small-sized Banks was
1.33%, which implies that the small sized Banks had lower ROA compared to Industry and
Large-sized Banks.

2007 1.33% 1.72% 1.43%
2008 0.64% 1.61% 0.96%
2009 0.34% 1.93% 0.77%
2010 1.02% 2.21% 1.53%
2011 2.32% 1.34% 2.01%
Table 5.2: Category wise ROA For 2007 to 2011.
In the following year, the ROA of the banking industry based on the sample data of the study
was 0.96%, which shows an decreasing trend compared to that of 2007. And from the
perspective of the Large-sized banks the ROA shows a decreasing trend and the respective
figure was 1.61% which is lower than the industry ROA. In case of the Small-sized Banks
the ROA for the year 2008 shows a decreasing trend and the correspondent figure is 0.64%.
But it is still lower than the industry ROA.
Figure 5.2: Category wise ROA For 2007 to 2011.
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In the next year 2009, industry ROA continued its decreasing trend and the respective figure
was 0.77%. The ROA for the Large-sized Banks increased very insignificantly and in this
year the Large-sized Banks ROA is higher than that of the industry. Small sized Banks
ROA shows a significant decrease and it was lower than the industry ROA. The respective
figure for the Small-sized Banks ROA was 0.34%.
In the following year 2010, industry ROA showed a significant increasing trend, increased at
the ROA for the Large-sized Banks increased very significantly and in this year the Large-
sized Banks ROA is higher than that of the industry. Small sized Banks ROA shows a
significant growth and it was lower than the industry ROA. The respective figure for the
Small-sized Banks ROA was 1.02%.
In the year 2011, the Industry ROA increased significantly and the decreasing rate was 31.3%
than 2010. Large-sized Banks ROA decreased at the decreasing rate was 65.68% compared
to that of 2010 and the respective ROA was 1.34%, which is lower than industry ROA. But
the Small Sized Banks ROA is higher than that of the industry and the respective figure was
2.32%.
5.1.3 Operating Profit Margin
In the year 2007, operating profit margin for the banking industry based on the sample data
was 39.56%. At the same time, the OPM for Large-sized Banks was 43.87% which is much
more higher than the industry OPM. On the other hand, the OPM for the Small-sized Banks
was 38%, which implies that the small sized Banks had lower OPM compared to Industry and
Large-sized Banks.

2007 38.00% 43.87% 39.56%
2008 10.74% 53.33% 24.94%
2009 341.25% 66.02% 268.35%
2010 268.49% 49.38% 197.74%
2011 -555.26% 40.98% -356.38%
Table 5.3: Category wise OPM For 2007 to 2011.
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In the following year, the OPM of the banking industry based on the sample data of the study
was 24.94%, which shows a decreasing trend compared to that of 2007. And from the
perspective of the Large-sized banks the OPM shows a increasing trend and the respective
figure was 53.33% which is higher than the industry OPM. In case of the Small-sized Banks
the OPM for the year 2008 shows a decreasing trend and the correspondent figure is 0.64%.
But it is still lower than the industry OPM.
Figure 5.3: Category wise OPM For 2007 to 2011.
In the next year 2009, industry OPM increased significantly and the respective figure was
268.35%. The OPM for the Large-sized Banks increased and in this year the Large-sized
Banks OPM is lower than that of the industry. Small sized Banks OPM shows a significant
increase and it was higher than the industry OPM. The respective figure for the Small-sized
Banks OPM was 341.25%,that is due to the unusual increase in the operating profit of ICB
Islamic Bank Limited in this year.
In the following year 2010, industry OPM showed a significant decreasing trend, decreased at
the OPM for the Large-sized Banks decreased very significantly and in this year the Large-
sized Banks OPM is lower than that of the industry. Small sized Banks OPM shows a
significant growth and it was higher than the industry OPM. The respective figure for the
Small-sized Banks OPM was 268.35%. But both the figure of the Small sized Banks and
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Industry are not the representative one because of unusual higher OPM of ICB Islamic Bank
in this year.
In the year 2011, the Industry OPM decreased significantly and the decreasing rate was -
555.25% than 2010. Large-sized Banks OPM decreased at the decreasing rate was 18.35%
compared to that of 2010 and the respective OPM was 40.92%, which is higher than industry
OPM. But both the figure of the Small sized Banks and Industry are not the representative
one because of unusual higher OPM of ICB Islamic Bank in this year. So these sort of
problem should be deal with caution for the concerning authority.
5.1.4 Return On Deposit
In the year 2007, return on deposit for the banking industry based on the sample data was
2.80%. At the same time, the ROD for Large-sized Banks was 25.81% which is much more
higher than the industry ROD. On the other hand, the ROD for the Small-sized Banks was
1.61%, which implies that the small sized Banks had lower ROD compared to Industry and
Large-sized Banks.

2007 1.61% 25.81% 2.80%
2008 0.68% 5.30% 2.22%
2009 2.66% 2.37% 2.59%
2010 1.23% 2.83% 1.92%
2011 0.35% 1.66% 0.82%
Table 5.4: Category wise ROD For 2007 to 2011.
In the following year, the ROD of the banking industry based on the sample data of the study
was 2.22%, which shows a decreasing trend compared to that of 2007. And from the
perspective of the Large-sized banks the ROD shows an increasing trend and the respective
figure was 5.30% which is higher than the industry ROD. In case of the Small-sized Banks
the ROD for the year 2008 shows a decreasing trend and the correspondent figure is 0.68%.
But it is still lower than the industry ROD.
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In the next year 2009, industry ROD increased significantly and the respective figure was
2.59%. The ROD for the Large-sized Banks decreased and in this year the Large-sized
Banks ROD is lower than that of the industry. Small sized Banks ROD shows a significant
increase and it was higher than the industry ROD. The respective figure for the Small-sized
Banks ROD was 2.66%.
Figure 5.4: Category wise ROD For 2007 to 2011.
In the following year 2010, industry ROD showed a significant decreasing trend, decreased at
the ROD for the Large-sized Banks increased very significantly and in this year the Large-
sized Banks ROD is higher than that of the industry. Small sized Banks ROD shows a
significant growth and it was higher than the industry ROD. The respective figure for the
Small-sized Banks ROD was 1.23%.
In the year 2011, the Industry ROD decreased significantly and the decreasing rate was
72.41% than 2010. Large-sized Banks ROD decreased at the decreasing rate was 42%
compared to that of 2010 and the respective ROD was 1.66%, which is higher than industry
ROD.
5.2 EFFICIENCY RATIOS
To show and analyze the efficiency of the Large Sized Banks, Small Sized Banks and
Banking industrys interest income to expense ratio, operating expense to asset ratio,
operating income to asset ratio, operating expense to revenue ratio, asset turnover, net interest
41 | P a g e
margin are calculated. Following part of the report shows the profitability condition of the
banks by category.
5.2.1 Operating Income to Expense Ratio(IEE)
In the year 2007, IEE for the banking industry based on the sample data was 3.58%. At the
same time, the IEE for Large-sized Banks was 3.48% which is lower than the industry IEE.
On the other hand, the IEE for the Small-sized Banks was 3.62%, which implies that the
small sized Banks had higher IEE compared to Industry and Large-sized Banks.

2007 3.62% 3.48% 3.58%
2008 3.37% 4.26% 3.66%
2009 3.79% 4.39% 3.88%
2010 3.31% 4.13% 3.79%
2011 2.98% 4.20% 3.59%
Table 5.5: Category wise IEE For 2007 to 2011.
In the following year, the IEE of the banking industry based on the sample data of the study
was 3.66%, which shows an increasing trend compared to that of 2007. And from the
perspective of the Large-sized banks the IEE shows an increasing trend and the respective
figure was 4.26% which is higher than the industry IEE. In case of the Small-sized Banks the
IEE for the year 2008 shows a decreasing trend and the correspondent figure is 3.37%. It is
still lower than the industry IEE.
Figure 5.5: Category wise IEE For 2007 to 2011.
42 | P a g e
In the next year 2009, industry IEE increased significantly and the respective figure was
3.88%. The IEE for the Large-sized Banks decreased and in this year the Large-sized Banks
IEE is higher than that of the industry. Small sized Banks IEE shows a significant increase
and it was still lower than the industry IEE. The respective figure for the Small-sized Banks
IEE was 3.79%.
In the following year 2010, industry IEE showed a significant decreasing trend, decreased at
a rate of 2.37% compared to the previous year and the respective figure was 3.79%. while the
IEE for the Large-sized Banks decreased and in this year the Large-sized Banks IEE is
higher than that of the industry. Small sized Banks IEE shows a decline and it was lower
than the industry IEE. The respective figure for the Small-sized Banks IEE was 3.31%.
In the year 2011, the Industry IEE decreased and the decreasing rate was 5.27% than 2010.
Large-sized Banks IEE increased at the rate of 8.21% compared to that of 2010 and the
respective IEE was 4.20%, which is higher than industry IEE.
5.2.2 Operating Expense to Asset Ratio
In the year 2007, OEA for the banking industry based on the sample data was 7.40%. At the
same time, the OEA for Large-sized Banks was 1.81% which is lower than the industry OEA.
On the other hand, the OEA for the Small-sized Banks was 9.44%, which implies that the
small sized Banks had higher OEA compared to Industry and Large-sized Banks.

2007 9.44% 1.81% 7.40%
2008 10.59% 2.86% 8.01%
2009 8.59% 3.13% 7.13%
2010 8.67% 3.58% 6.90%
2011 8.97% 3.58% 7.23%
Table 5.6: Category wise OEA For 2007 to 2011.
In the following year, the OEA of the banking industry based on the sample data of the study
perspective of the Large-sized banks the OEA shows an increasing trend and the respective
figure was 2.86% which is lower than the industry OEA. In case of the Small-sized Banks
43 | P a g e
the OEA for the year 2008 shows an increasing trend and the correspondent figure is 10.59%.
It is still higher than the industry OEA.
In the next year 2009, industry OEA increased significantly and the respective figure was
7.13%. The OEA for the Large-sized Banks increased and in this year the Large-sized Banks
OEA is lower than that of the industry. Small sized Banks OEA shows a decline and it was
still higher than the industry OEA. The respective figure for the Small-sized Banks OEA
was 8.59%.
Figure 5.6: Category wise OEA For 2007 to 2011.
In the following year 2010, industry OEA showed a significant decreasing trend, decreased at
a rate of 3% compared to the previous year and the respective figure was 6.90%. while the
OEA for the Large-sized Banks increased and in this year the Large-sized Banks OEA is
lower than that of the industry. Small sized Banks OEA shows an increase and it was higher
than the industry OEA. The respective figure for the Small-sized Banks OEA was 8.67%.
In the year 2011, the Industry OEA increased and the increasing rate was 4.75% than 2010.
Large-sized Banks OEA decreased at the rate of 9.84% compared to that of 2010 and the
respective OEA was 3.58%, which is higher than industry OEA.
44 | P a g e
5.2.3 Operating Income to Asset Ratio (OIA)
In the year 2007, OIA for the banking industry based on the sample data was 10.83%. At the
same time, the OIA for Large-sized Banks was 5.59% which is lower than the industry OIA.
On the other hand, the OIA for the Small-sized Banks was 12.73%, which implies that the
small sized Banks had higher OIA compared to Industry and Large-sized Banks.

2007 12.73% 5.59% 10.83%
2008 13.62% 6.28% 11.17%
2009 11.56% 6.43% 10.15%
2010 12.53% 7.69% 11.03%
2011 15.80% 6.84% 12.89%
Table 5.7: Category wise OIA For 2007 to 2011.
In the following year, the OIA of the banking industry based on the sample data of the study
perspective of the Large-sized banks the OIA shows an increasing trend and the respective
figure was 6.28% which is lower than the industry OIA. In case of the Small-sized Banks the
OIA for the year 2008 shows an increasing trend and the correspondent figure is 13.62%. It is
still higher than the industry OIA.
Figure 5.7: Category wise OIA For 2007 to 2011.
45 | P a g e
In the next year 2009, industry OIA increased significantly and the respective figure was
10.15%. The OIA for the Large-sized Banks increased and in this year the Large-sized
Banks OIA is lower than that of the industry. Small sized Banks OIA shows a decline and it
was still higher than the industry OIA. The respective figure for the Small-sized Banks OIA
was 11.56%.
In the following year 2010, industry OIA showed an increasing trend, increased at a rate of
8.69% compared to the previous year and the respective figure was 11.03%. while the OIA
for the Large-sized Banks increased and in this year the Large-sized Banks OIA is lower
than that of the industry. Small sized Banks OIA shows an increase and it was higher than
the industry OIA. The respective figure for the Small-sized Banks OIA was 12.53%.
In the year 2011, the Industry OIA increased and the increasing rate was 16.85% than 2010.
Large-sized Banks OIA decreased at the rate of 11.02% compared to that of 2010 and the
respective OIA was 6.84%, which is higher than industry OIA.
5.2.4 Asset Turnover (ATO)
In the year 2007, ATO for the banking industry based on the sample data was 8.43%. At the
same time, the ATO for Large-sized Banks was 8.51% which is higher than the industry
ATO. On the other hand, the ATO for the Small-sized Banks was 8.40%, which implies that
the small sized Banks had lower ATO compared to Industry and Large-sized Banks.

2007 8.40% 8.51% 8.43%
2008 8.46% 9.60% 8.84%
2009 7.85% 9.18% 8.12%
2010 6.90% 8.09% 7.25%
2011 16.37% 8.96% 13.83%
Table 5.8: Category wise ATO For 2007 to 2011
In the following year, the ATO of the banking industry based on the sample data of the study
perspective of the Large-sized banks the ATO shows an increasing trend and the respective
figure was 9.60% which is higher than the industry ATO. In case of the Small-sized Banks
46 | P a g e
the ATO for the year 2008 shows an increasing trend and the correspondent figure is 8.46%.
It is still lower than the industry ATO.
Figure 5.8: Category wise ATO For 2007 to 2011.
In the next year 2009, industry ATO decreased significantly and the respective figure was
8.12%. The ATO for the Large-sized Banks increased and in this year the Large-sized Banks
ATO is higher than that of the industry. Small sized Banks ATO shows a decline and it was
still lower than the industry ATO. The respective figure for the Small-sized Banks ATO was
7.85%.
In the following year 2010, industry ATO showed decreasing trend, decreased at a rate of
11% compared to the previous year and the respective figure was 7.25%. while the ATO for
the Large-sized Banks decreased and in this year the Large-sized Banks ATO is higher than
that of the industry. Small sized Banks ATO shows decrease and it was lower than the
industry ATO. The respective figure for the Small-sized Banks ATO was 6.90%.
In the year 2011, the Industry ATO increased and the increasing rate was 91% than 2010.
Large-sized Banks ATO increased at the rate of 11.02% compared to that of 2010 and the
respective ATO was 8.96%, which is higher than industry ATO. Whereas the small sized
banks increased significantly and outperformed the industry.
47 | P a g e
5.2.5 Net Interest Margin (NIM)
In the year 2007, NIM for the banking industry based on the sample data was 2.52%. At the
same time, the NIM for Large-sized Banks was 2.48% which is lower than the industry NIM.
On the other hand, the NIM for the Small-sized Banks was 2.53%, which implies that the
small sized Banks had higher NIM compared to Industry and Large-sized Banks.

2007 2.53% 2.48% 2.52%
2008 2.37% 3.06% 2.60%
2009 2.55% 3.17% 2.64%
2010 2.42% 3.14% 2.81%
2011 4.13% 2.89% 3.85%
Table 5.9: Category wise NIM For 2007 to 2011
In the following year, the NIM of the banking industry based on the sample data of the study
perspective of the Large-sized banks the NIM shows an increasing trend and the respective
figure was 3.06% which is higher than the industry NIM. In case of the Small-sized Banks
the NIM for the year 2008 shows an decreasing trend and the correspondent figure is 2.37%.
It is still lower than the industry NIM.
Figure 5.9: Category wise NIM For 2007 to 2011.
48 | P a g e
In the next year 2009, industry NIM decreased significantly and the respective figure was
2.64%. The NIM for the Large-sized Banks increased and in this year the Large-sized Banks
NIM is higher than that of the industry. Small sized Banks NIM shows a growth and it was
still lower than the industry NIM. The respective figure for the Small-sized Banks NIM was
2.55%.
In the following year 2010, industry NIM showed increasing trend, increased at a rate of 6%
compared to the previous year and the respective figure was 2.81%. while the NIM for the
Large-sized Banks decreased and in this year the Large-sized Banks NIM is higher than that
of the industry. Small sized Banks NIM shows decrease and it was lower than the industry
NIM. The respective figure for the Small-sized Banks NIM was 2.42%.
In the year 2011, the Industry NIM increased and the increasing rate was 37% than 2010.
Large-sized Banks NIM decreased at the rate of 18.72% compared to that of 2010 and the
respective NIM was 2.89%, which is higher than industry NIM. Whereas the small sized
banks increased significantly and outperformed the industry.
5.3 NPL to Total Loan Ratio (NPLTL)
In the year 2007, NPL to Total Loan Ratio for the banking industry based on the sample data
was 19.42%. At the same time, the NPLTL for Large-sized Banks was 6.39% which is lower
than the industry NPLTL. On the other hand, the NPLTL for the Small-sized Banks was
24.16%, which implies that the small sized Banks had higher NPLTL compared to Industry
and Large-sized Banks.

2007 24.16% 6.39% 19.42%
2008 15.57% 4.11% 11.75%
2009 14.12% 3.79% 11.45%
2010 27.56% 22.77% 25.92%
2011 27.06% 26.84% 27.03%
Table 5.10: Category wise NPLTL For 2007 to 2011
49 | P a g e
In the following year, the NPLTL of the banking industry based on the sample data of the
study was 11.75%, which shows a decreasing trend compared to that of 2007. And from the
perspective of the Large-sized banks the NPLTL shows a decreasing trend and the respective
figure was 4.11% which is lower than the industry NPLTL. In case of the Small-sized Banks
the NPLTL for the year 2008 shows a decreasing trend and the correspondent figure is
15.57%. It is still higher than the industry NPLTL.
Figure 5.10: Category wise NPLTL For 2007 to 2011.
In the next year 2009, industry NPLTL decreased and the respective figure was 11.45%. The
NPLTL for the Large-sized Banks decreased and in this year the Large-sized Banks NPLTL
is lower than that of the industry. Small sized Banks NPLTL shows a decline and it was still
higher than the industry NPLTL. The respective figure for the Small-sized Banks NPLTL
was 2.55%.
In the following year 2010, industry NPLTL showed increasing trend, increased at a rate of
126% compared to the previous year and the respective figure was 25.92%. while the
NPLTL for the Large-sized Banks increased and in this year the Large-sized Banks NPLTL
is lower than that of the industry. Small sized Banks NPLTL shows increase and it was
higher than the industry NPLTL. The respective figure for the Small-sized Banks NPLTL
was 27.56%.
In the year 2011, the Industry NPLTL increased and the increasing rate was 4% than 2010.
Large-sized Banks NPLTL increased at the rate of 5% compared to that of 2010 and the
50 | P a g e
respective NPLTL was 26.84%, which is lower than industry NPLTL. Whereas the small
sized banks decreased significantly, although outperformed the industry.
51 | P a g e
5.4 FINDINGS
The paper focused on the determinants of operating performance of banking industry of

Bangladesh based on the sample data of 15 (fifteen) publicly traded commercial banks and a
comparative performance analysis on . Different types of ratio analysis have been conducted
to attain the objectives and the findings of all of these analyses have been presented in detail
in the previous chapters. A key aspects of all of the major findings from the analyses done
before is presented in this section in brief:
Return on equity measures a corporation's profitability by revealing how much profit

a company generates with the money shareholders have invested. In the analysis, the
overall ROE for the industry (based on sample data) shows an increasing trend over
the time period (except for 2011). ROE of large-sized banks have outperformed the
industry and small-sized banks in most of the cases. So large sized banks have higher
return on equity compared to small-sized banks.
Return of Asset indicates the measurement of efficient uses of assets to generate

earnings. In our analysis, it shows that large-sized banks use the assets more
efficiently to generate earnings.
Return on Deposit means how profitably the deposits are invested. In the analysis,
Large sized Banks have higher return on deposits in most of the years; which
indicates efficient use of deposits compared to Small sized Banks.
Profit margin over the last three years of the time period of the analysis shows
somewhat misleading results because of the unusual profit and losses of ICB Islamic
Bank Limited. Omitting these three years, Large-sized banks outperformed the
industry and Small-sized Banks profit margin in each year. which indicates that,
Large-sized Banks are more profitable and have better control over their costs.
In case of operating expense to asset ratio, the Large-sized banks have lower
percentage compared to the industry and small sized banks which indicates the cost
efficiency of Large-sized banks.
Small sized banks have higher position in the operating income to asset ratio
compared to the industry and Large sized banks. As the banks are categorized on the
52 | P a g e
basis of the asset size. So small sized banks have the higher value of this ratio
throughout of the period.
In case of the asset turnover ratio, Large sized Banks are more efficient to generate
more interest income for each taka of assets over the five years.
Net Interest Margin ratio examines how successful a bank's investment decisions are
compared to its debt situations. Except the year 2007 and 2011 NIM of Large sized
banks is higher than the small-sized Banks in each year.
Large sized Banks have less non-performing loans compared to the Small-sized
Banks, upto 2009 Large sized banks have decreasing trend of NPL to total loan ratio
then two consequent years it faced increasing trend in the NPL to total loan ratio.
These are the major findings from this report. These findings are consistent to the objectives
of the report.
53 | P a g e
Chapter- 06
Concluding part
54 | P a g e
6.0 CONCLUSION
All the three objectives specified in the first section of the report is achieved in the report
through the different types of profitability and efficiency ratio analysis, category wise
analysis of each ratio and non-performing loan ratio analysis.
In this report operating performance of the banking sector is measured from analyzing
correspondent determinants of it. Profitability and Efficiency of the selected banks are
measured by calculating different ratios. Here, the dataset is categorized based on the asset
size. These ratios of the 15 different banks are compared at a particular point in time and
over the time to show any trend or any specific characteristics. Therefore main objective of
this report is to analyse the determinants of operating performance of selected banks which is
achieved in the report.
55 | P a g e
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57 | P a g e
APPENDIX
APPENDIX- A
SL Bank
No. Name Year Op. Inc. Op. Exp op.profit Net.Profit Total Asset Fixed Asset Total Liab
AB Bank 2007 4656581245 1331287400 3325293845 1903493845 63,549,864,403 2381004409 59038275138
AB Bank 2008 6217589424 4330106864 1887482560 2332340348 84,190,890,928 2444761466 77373585336
1
AB Bank 2009 8374277041 5869625615 2504651426 3417185111 107,093,007,184 2441036589 96872223464
AB Bank 2010 12004676277 4895560102 7109116175 3989519974 133,706,824,450 4087964621 119559947093
AB Bank 2011 8665997427 5193440299 3472557128 1390385050 154,404,751,243 4568190907 139389318058

AL
ARAFAH 2007 1738149940 515670052 1222479888 534593830 29,741,777,021 317411032 27577184414
AL
ARAFAH 2008 2172687425 644587565 1528099860 668242288 37,177,221,276 396763790 34471480517
2 AL
ARAFAH 2009 2638293982 908465434 1729828548 858987708 48,515,787,384 466297269 44951058918
AL
ARAFAH 2010 4399858451 1154766800 3245091650 1649063617 38,436,069,093 498428682 35858653628
AL
ARAFAH 2011 5866477934 1539689067 4326788867 2198751489 106,768,180,918 968132029 82186976770
BANK
ASIA 2007 4959020000 3384300000 1574720000 725640000 38,436,069,093 498428682 35858653628
BANK
ASIA 2008 6631543368 4726665273 1904878095 686699313 53,371,196,629 644249356 50038289716
3 BANK
ASIA 2009 8627511372 6010473990 2617037383 1327178673 68,663,131,337 1018378982 63709055419
BANK
ASIA 2010 10749402528 6972170237 3777232291 1715394690 93,520,961,252 1633340083 96039144709
BANK
ASIA 2011 11492052919 7541213175 3950839744 1873007129 115,075,082,722 4481186736 105537521658
BRAC
BANK 2007 3546246530 1600754004 1945492526 618335637 46,382,595,418 942929286 43310566744
BRAC
BANK 2008 6036183837 2862277587 3173906250 973450830 72,441,893,391 1472024279 67004367741
4 BRAC
BANK 2009 7264162137 3660592607 3603569530 1373364872 94,615,341,505 166593932 85784100360
BRAC
BANK 2010 10399476002 4880383156 5519092846 2073059083 122,801,151,189 1854245194 112249831364
BRAC
BANK 2011 10795786834 5597004619 5198782215 1812444190 140,922,122,974 2599931447 130440477104
CITY
BANK 2007 2572192720 1316315576 1255877144 34544471 48,755,403,018 1390732198 45881036032
5 CITY
BANK 2008 3510266937 1755346344 1754920593 38114892 57,114,576,058 2514383969 52897099529
CITY
BANK 2009 4367880343 2112244711 2255635632 818719600 76,466,801,564 2788065869 70602567286
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CITY
BANK 2010 7301070396 3200831696 4100238700 1849238709 90,898,051,972 3206205668 79379126182
CITY
BANK 2011 7756141753 3559814530 4196327223 2018327223 115,735,967,684 5950305758 97880049519
DBL 2007 3169485074 1159004257 2010480817 703782843 57,443,251,307 291259210 54317562594
DBL 2008 3886363851 1353038498 2533325353 838764573 71,136,842,020 386594140 67137329964
6
DBL 2009 4234778143 1424451281 2810326862 959372816 77,767,413,094 424462708 72801731124
DBL 2010 5555178105 1714736557 3840441548 1678976188 90,139,480,260 977385392 83559750872
DBL 2011 6407739427 1963053365 4444686062 2242648272 10,503,213,825 1721436551 95743416946
DBBL 2007 2678037179 1239369209 1438667970 479810510 49,371,346,238 1147295998 47036921368
DBBL 2008 3639509604 1703637577 1935872027 821665049 60,618,968,787 1340291114 57455369083
7
DBBL 2009 4818521809 2122801392 2695720417 1137698057 81,480,529,482 1773599221 77128732223
DBBL 2010 9546750000 5348254199 4198495802 2002297998 101,181,498,818 2934397066 101181498818
DBBL 2011 12703140000 7923244780 4779895220 2130954751 121,897,257,096 3981896018 123266876733
EBL 2007 2822226065 951826679 1870399386 419142203 42,579,485,856 871267743 6063465758
EBL 2008 3704003340 1318463869 2385539471 797774068 54,598,268,072 1246107178 49865488535
8
EBL 2009 4630151975 1649990445 2980161530 1454541675 69,870,738,519 1804049534 61441586101
EBL 2010 6460720650 2073766734 4386953916 2424789795 82,530,978,439 3626121162 70273534050
EBL 2011 7792604822 2685240130 5107364692 2520704413 117,564,320,732 4465566721 102972118140

EXIM
BANK 2007 3016932017 876301295 2140630722 932132989 58,179,494,400 249499684 53938672737
EXIM
BANK 2008 3549331785 1030942700 2518389085 1096627046 68,446,464,000 293529040 63457262044
9 EXIM
BANK 2009 4440754020 1258972608 3181781412 1694095372 86,213,373,094 381982985 79496161423
EXIM
BANK 2010 7715015498 1841170427 5873845071 3456063638 113,047,466,849 467930909 100600737816
EXIM
BANK 2011 6615081184 2529423403 4085657781 2017715667 129,709,816,841 472209683 115240334074
FSIB 2007 414531487 286000759 128530728 30630728 26,941,780,871 135223386 25807489929
FSIB 2008 572782959 383179206 189603753 104282064 31,239,393,418 184368432 28700820412

10
FSIB 2009 1327633708 576795959 750837749 326837749 47,978,552,952 376477387 45113142197
FSIB 2010 1526778764 663315353 863463411 375863411 55,175,335,895 432948995 51880113527
59 | P a g e
FSIB 2011 1755795579 762812656 992982923 432242923 63,451,636,279 497891344 59662130556
IBBL 2007 8288935430 3126575311 5162360119 2049053457 191,362,349,717 17076455162 179521013463
IBBL 2008 11594234096 4115805498 7478428598 2674796768 230,879,135,344 4407218653 216818643365
11
IBBL 2009 12326862480 4545974409 7780888071 3403551874 278,302,839,706 6512363381 258197295853
IBBL 2010 15711946305 6107165143 9604781162 4485479032 330,785,171,734 6757093310 307268895003
IBBL 2011 21123408425 8291655115 12831753310 4624593651 389,375,604,320 7110249574 361761849327

ICB
ISLAMIC 2007 79319930 -531561911 610881841 610881841 17,481,062,951 461671231 25769315471
ICB
ISLAMIC 2008 696113776 359888752 336225024 -776740602 19,631,494,594 480035627 22561407181
12 ICB -
ISLAMIC 2009 393058889 455322584 -62263695 2062209895 18,887,824,773 1269753910 23327118795
ICB -
ISLAMIC 2010 506140515 565245253 -59104738 1358237479 18,641,604,702 1282731754 24446346736
ICB -
ISLAMIC 2011 566332164 536209570 30122594 1796150107 18,015,163,087 1218725148 25616055228
IFIC 2007 32994967005 31491842853 1503124152 965254157 39,914,149,418 5987122413 37300367309
IFIC 2008 37944212056 36321958928 1622253128 657251824 45,729,490,694 6859423604 42536754897
13
IFIC 2009 43635843864 41675589608 1960254256 900124111 62,902,192,726 9435328909 48917268132
IFIC 2010 45817636057 41990183842 3827452215 1647245271 69,565,251,867 10434787780 56254858351
IFIC 2011 48108517860 45423096835 2685421025 705001254 91,508,627,391 13726294109 64693087104
Jamuna 2007 1664876682 840668212 824208470 89110861 26,405,404,056 3960810608 24748914018
Jamuna 2008 1752501771 712298837 1040202934 479437923 31,646,629,499 4746994425 29485897657
14
Jamuna 2009 2927987790 1013741503 1914246287 923123207 48,730,951,557 7309642734 44750076511
Jamuna 2010 3744245647 1333609099 2410636548 1066012186 71,063,772,785 10659565918 64655581533
Jamuna 2011 4864288834 2046887537 2817401297 1330201528 87,065,135,297 13059770295 79783622613
MBL 2007 2401659325 1016510459 1385148866 540499295 44,940,537,108 6741080566 42011233229
MBL 2008 2831532117 1250016629 1581515488 615882381 55,928,721,449 8389308217 52458627717
15
MBL 2009 3491910760 1580212891 1911697869 807516869 66,166,515,602 9924977340 61870263861
MBL 2010 4775811506 1928685597 2847125909 1425338409 87,140,109,470 13071016421 79954424207
MBL 2011 6169333864 2637163197 3532170667 1734175489 116,551,023,659 17482653549 106891692403
60 | P a g e
APPENDIX-B
Bank NDi D NA MAu

Name Year r M InD M d Age Paid Cap Ret.Earn
AB
Bank 2007 10 9 1 5 3 25 743261800 1695795728
AB
Bank 2008 13 11 1 9 3 26 2229785400 1847870125
AB
Bank 2009 13 18 1 11 3 27 3639530366 2564253200
AB
Bank 2010 14 13 1 12 3 28 3205316500 4979826528
AB
Bank 2011 14 16 1 12 5 29 3686113900 5373409897
AL
ARAFA
H 2007 14 18 1 5 3 12 1245429360 374942387
AL
ARAFA
H 2008 15 13 1 5 3 13 1383810400 416602652
AL
ARAFA
H 2009 15 17 1 7 3 14 1798953600 542599113
AL
ARAFA
H 2010 15 16 1 11 3 15 1395000000 47139274
AL
ARAFA
H 2011 20 14 1 12 4 16 5893371990 1503534242
BANK
ASIA 2007 11 19 1 10 3 8 1395000000 47139274
BANK
ASIA 2008 11 25 1 14 3 9 1743750000 1629409771
BANK
ASIA 2009 12 22 1 17 3 10 2144880000 2809327191
BANK
ASIA 2010 14 21 1 19 3 11 3002740000 3606431949
BANK
ASIA 2011 14 23 1 25 3 12 5254790000 7224132776
BRAC
BANK 2007 8 17 1 5 3 6 1200000000 517911751
BRAC
BANK 2008 7 15 1 4 3 7 1584000000 919872415
BRAC
BANK 2009 7 13 2 6 3 8 2059200000 1331987555
BRAC 2010 6 14 1 6 3 9 2676960000 1956125242
61 | P a g e
BANK
BRAC
BANK 2011 6 13 2 7 3 10 3212352000 2282951075
CITY
BANK 2007 11 17 1 5 3 24 1188000000 38114892
CITY
BANK 2008 11 13 1 4 3 25 1366200000 28468017
CITY
BANK 2009 13 16 1 3 3 26 1571130000 575180687
CITY
BANK 2010 13 12 1 5 3 27 3888547200 1437393453
CITY
BANK 2011 13 20 1 4 5 28 5055111300 1601095430
DBL 2007 15 12 1 3 3 12 1547402300 397600709
DBL 2008 12 8 1 3 3 13 1934252875 465985098
DBL 2009 21 11 1 3 3 14 2127678163 532284207
DBL 2010 20 17 2 3 3 15 2659597800 1095477121
DBL 2011 19 14 2 3 5 16 3590457030 1511819326
DBBL 2007 6 8 1 5 3 11 202135000 210880514
DBBL 2008 7 11 1 4 3 12 1000000000 177329775
DBBL 2009 10 13 1 7 4 13 1500000000 12552712
DBBL 2010 9 7 1 6 4 14 2000000000 13933510
DBBL 2011 8 9 1 8 3 15 2000000000 15466196
EBL 2007 11 27 1 5 3 15 1035000000 -
EBL 2008 10 28 1 5 3 16 1386900000 445874068
EBL 2009 10 28 1 5 3 17 2496420000 914401943
EBL 2010 10 28 1 5 3 18 2920811400 1669294772
EBL 2011 10 28 1 5 5 19 4527257670 1769737547
EXIM
BANK 2007 21 13 1 3 3 8 2276084100 608710974
EXIM
BANK 2008 21 11 1 5 3 9 2677746000 716130558
EXIM
BANK 2009 21 18 1 3 3 10 3373959900 1187502441
EXIM
BANK 2010 21 15 1 4 3 11 6832268790 2394870098
EXIM
BANK 2011 22 11 1 8 4 12 9223562860 1321550384
FSIB 2007 26 18 1 5 3 8 1000000000 14129544
FSIB 2008 26 15 1 5 3 9 2300000000 80490857
FSIB 2009 26 21 1 4 3 10 2300000000 277961056
FSIB 2010 26 17 1 5 3 11 2300000000 319655214
FSIB 2011 12 13 1 5 3 12 2300000000 367603497
IBBL 2007 14 9 1 6 3 24 3801600000 1572091043
IBBL 2008 14 13 1 4 3 25 4,752,000,00 1425600000
62 | P a g e
0
6
IBBL 2009 14 12 1 5 3 26 ,177,600,000 1853280000
IBBL 2010 17 11 1 5 3 27 7413120000 2616599517
IBBL 2011 17 17 1 4 4 28 10007712000 3015952005
ICB
ISLAMI -
C 2007 7 11 1 5 3 20 519106000 8887235171
ICB
ISLAMI -
C 2008 7 16 1 4 3 21 6647023000 9664079543
ICB -
ISLAMI 1172628943
C 2009 5 7 1 3 3 22 6647023000 8
ICB -
ISLAMI 1308452691
C 2010 5 13 1 5 3 23 6647023000 7
ICB -
ISLAMI 1488067702
C 2011 5 9 1 4 3 24 6647023000 4
IFIC 2007 19 13 1 0 3 24 670715700 837961166
IFIC 2008 14 15 1 3 3 25 1341431400 561094024
IFIC 2009 13 19 1 5 3 26 1542646110 645258128
IFIC 2010 13 22 1 10 3 27 1774043027 742046847
IFIC 2011 13 16 1 7 3 28 2040149480 853353874
Jamuna 2007 19 25 0 17 3 6 1247601940 298219875
Jamuna 2008 19 23 1 15 3 7 1313265200 313915658
Jamuna 2009 19 21 1 21 3 8 1621882500 615781504
Jamuna 2010 18 28 1 8 3 9 2230088400 660609143
Jamuna 2011 18 29 1 9 3 10 3648403760 842477016
MBL 2007 12 20 0 12 3 8 1498898300 302870428
MBL 2008 14 17 1 11 3 9 1796677900 361812407
MBL 2009 21 20 1 14 3 10 2156413400 477053778
MBL 2010 22 20 1 10 3 11 4072206600 940356103
MBL 2011 22 20 1 13 3 12 4968092000 1197589947
APPENDIX-C
Bank
Name Year INT INC INT EXP NINC EPS Cash
AB Bank 2007 5269904660 3830623489 1439281171 256 4299269940
AB Bank 2008 7368464534 5347854381 2020610153 91 4096044155
AB Bank 2009 9111374896 6147007707 2964367189 133 5354881576
AB Bank 2010 10716860160 6631922938 4084937222 10 6615787687
AB Bank 2011 13795334719 10472018460 3323316259 4 9361503594
63 | P a g e
AL ARAFAH 2007 2243150000 1628630000 614520000 25 224642008
AL ARAFAH 2008 3456338527 2220465915 1235872612 37 280802510
AL ARAFAH 2009 4004536370 2667338759 1337197611 48 392891238
AL ARAFAH 2010 62691955 45138208 17553747 3 2210534338
AL ARAFAH 2011 745610062 161359397 584250665 3 809438237
BANK ASIA 2007 3662378055 2705032734 957345321 52 2210534338
BANK ASIA 2008 4973111164 4498016814 475094350 32 330107498
BANK ASIA 2009 6247494941 3739016507 2508478434 62 473828721
BANK ASIA 2010 8381354215 5420584211 2960770004 5 5878497950
BANK ASIA 2011 10919699005 8202658439 2717040566 4 7027684197
BRAC
BANK 2007 4633346578 2571236238 2062110340 55 511730011
BRAC
BANK 2008 8021101674 4865091805 3156009869 45 4315888000
BRAC
BANK 2009 9202348192 6073232757 3129115435 64 6619082263
BRAC
BANK 2010 11028458556 5886828345 5141630211 6 9853046264
BRAC
BANK 2011 14283148334 8645101681 5638046653 6 11979216569
CITY BANK 2007 4183256254 3235650021 947606233 25 3477567051
CITY BANK 2008 4669584720 3163254145 1506330575 25 3120173304
CITY BANK 2009 5743254241 3672891782 2070362459 52 5142660582
CITY BANK 2010 7090857989 3516597830 3574260159 4 6158464314
CITY BANK 2011 9415792854 4997830297 4417962557 4 7492229859
DBL 2007 5635855271 4048903967 1586951304 46 3026111944
DBL 2008 7171329773 5213697657 1957632116 39 3797376032
DBL 2009 7466348667 5555556578 1910792089 36 5035699739
DBL 2010 7404568227 4944107729 2460460498 5 8769479993
DBL 2011 9945254450 7611213092 2334041358 6 9510508375
DBBL 2007 4865945313 3689541720 1176403593 24 987934330
DBBL 2008 5453919587 3636244111 1817675476 6 5126685324
DBBL 2009 6162588658 4095761110 2066827548 6 6653900520
DBBL 2010 7582147254 5401258947 2180888307 10 0
DBBL 2011 8902124547 6715485685 2186638862 11 0
EBL 2007 3814759263 2502489623 1312269640 3 382927615
EBL 2008 5233658855 3682446554 1551212301 3 3518546161
EBL 2009 6216212276 4051306641 2164905635 5 3402440722
EBL 2010 6995727668 4011262529 2984465139 5 3681327496
EBL 2011 9745615263 6374755156 3370860107 6 6022765771
EXIM BANK 2007 4852654875 3566291548 1286363327 35 5797364516
EXIM BANK 2008 6575384481 4807489009 1767895472 41 6587914223
EXIM BANK 2009 8147113948 5942862461 2204251487 50 9216163312
EXIM BANK 2010 9606185898 6020054097 3586131801 4 10085576043
EXIM BANK 2011 13266077269 9339884935 3926192334 2 14913052257
FSIB 2007 2180308712 2130328088 49980624 3 1186903866
64 | P a g e
FSIB 2008 3141799470 2939155779 202643691 7 1394671407
FSIB 2009 4348674553 3333800367 1014874186 1 5033532439
FSIB 2010 5547047795 4125826500 1421221295 2 5788562305
FSIB 2011 7215233200 5320125410 1895107790 2 6656846651
IBBL 2007 14572195381 9410596284 5161599097 3 17076455162
IBBL 2008 19543842567 12162105764 7381736803 4 31330319841
IBBL 2009 21370532457 13076994258 8293538199 5 37485668446
IBBL 2010 24766263541 14471892573 10294370968 4 39053405096
IBBL 2011 32019532497 18401225364 13618307133 5 40631914271
ICB
ISLAMIC 2007 819313101 21761103 797551998 1177 980261440
ICB
ISLAMIC 2008 528605586 46524720 482080866 -157 937954187
ICB
ISLAMIC 2009 493017780 202116827 290900953 -310 1,178,079,01
ICB
ISLAMIC 2010 702977622 275512247 427465375 -2 1447410404
ICB
ISLAMIC 2011 833987015 338014806 495972209 -3 1417353219
IFIC 2007 2775251248 1897254259 877996989 14 3593513841
IFIC 2008 3515025450 2347254256 1167771194 5 3340418678
IFIC 2009 3872152348 2770215248 1101937100 5 4633980079
IFIC 2010 4641012548 2565256241 2075756307 8 4570170747
IFIC 2011 6655251428 4647256254 2007995174 3 6635581452
Jamuna 2007 2230265913 1774389203 455876710 1 1025622557
Jamuna 2008 2890654531 2321887137 568767394 4 1864959818
Jamuna 2009 3788896436 2888743474 900152962 6 3211254058
Jamuna 2010 5207523275 3726520759 1481002516 3 4487942759
Jamuna 2011 8473445294 6678002514 1795442780 4 4874872975
MBL 2007 4385453847 3159295007 1226158840 30 3717354095
MBL 2008 5423137314 3424865486 1998271828 29 4374119340
MBL 2009 6529977880 4154550199 2375427681 31 4790155210
MBL 2010 6019996929 3392701934 2627294995 3 4877118983
MBL 2011 9760577255 8022591397 1737985858 4 6948621454
APPENDIX-D
Bank
Name Year Dep. Share EQ Loans & Adv Uncl.Loan CL.Loans
AB Bank 2007 53375348391 4511589265 39303901301 37541265301 1762636000
AB Bank 2008 68558989354 6817305592 54412358249 52716976672 1695381577
AB Bank 2009 83082628680 10220783720 69732552194 67783383381 1949168813
AB Bank 2010 94780200605 14146877357 92395623505 83745316492 85597797263
AB Bank 2011 115825485296 15015433185 99504751956 90739391962 93411192735
65 | P a g e
AL
ARAFAH 2007 23752096926 2164592607 20166382167 11091510192 9074871975
AL
ARAFAH 2008 29690121157 2705740759 25207977709 13864387740 11343589969
AL
ARAFAH 2009 38355496820 3564728466 32854774321 21355603309 11499171012
AL
ARAFAH 2010 30004088738 2577415465 28456944137 27482783528 695664609
AL
ARAFAH 2011 82186976770 11989109322 69140245957 78594334449 751100000
BANK
ASIA 2007 30004088738 2577415465 28456944137 27482783528 695664609
BANK
ASIA 2008 42435197565 3332956667 39974960025 351428908 644771371
BANK
ASIA 2009 54283941968 4904593646 49765190532 427128965 355381065
BANK
ASIA 2010 76645532681 7059532940 79504232613 78219981396 1284251217
BANK
ASIA 2011 93975732791 11079480395 82819973884 80570011884 2249962000
BRAC
BANK 2007 37368407773 3072028674 32461102180 31016324650 32461102180
BRAC
BANK 2008 58006887011 5437525647 52676716740 50203704950 2473011790
BRAC
BANK 2009 74455677860 8358263004 64150835159 60273178416 3877656743
BRAC
BANK 2010 88154867683 9852519851 97478364517 82856609839 14621754678
BRAC
BANK 2011 103648725771 10160209935 86573913596 73587826557 12986087039
CITY
BANK 2007 40539634035 2874366986 26788466138 25116633138 1671833000
CITY
BANK 2008 45034334502 4217476529 34420944980 32251136980 2169808000
CITY
BANK 2009 62384280002 5864234278 43486421803 36963458533 6522963270
CITY
BANK 2010 67419801730 11518925790 60326545084 57657847084 2668698000
CITY
BANK 2011 87817787900 17885918166 76807031331 74162718331 2644313000
DBL 2007 48730676322 3125688713 39971903240 38714399107 1257504133
DBL 2008 56985924645 3999512056 49697705621 47789447123 1908258498
DBL 2009 60918374023 4965681970 52909814017 49963675747 2946138271
DBL 2010 70420380740 6579729388 63591387406 60682801406 63591387406
DBL 2011 85276888686 9293796879 75983291662 73359259770 75983291662
DBBL 2007 42110147036 2334424870 28369578068 28299329498 70248570
DBBL 2008 51575667260 3163599704 41698321269 40335146633 1363174636
DBBL 2009 67788533035 4351797259 48410989619 47217672410 1193317209
66 | P a g e
DBBL 2010 83244716755 7000992999 67657632342 65991934008 1665698334
DBBL 2011 100710899289 8939591060 79660620339 62931890068 16728730271
EBL 2007 30091769096 3711807755 30961802829 29562000242 1333706052
EBL 2008 41572767785 4732779537 39662162813 38118531724 1308852167
EBL 2009 4918954218 8429152418 47667987118 44957845968 1171676115
EBL 2010 56105405810 12106474131 58607085693 4951255284 53655830409
EBL 2011 75203463872 14441522148 81057922762 6341059545 74716863217
EXIM
BANK 2007 5177096022 4390497721 47201155851 40120982473 7080173378
EXIM
BANK 2008 5883063661 4989201956 53637677103 52629832302 1007844801
EXIM
BANK 2009 73835461825 6717211671 68609907470 66770216403 1839691067
EXIM
BANK 2010 94855718361 12446729033 93296648855 91441403261 1855245594
EXIM
BANK 2011 107515298597 14469482767 99699627656 98073092387 1626535269
FSIB 2007 23504045031 1134290942 18616225315 17405582315 1210643000
FSIB 2008 25854541500 2538573006 25094658077 24041245372 1053412705
FSIB 2009 42423092722 2865410755 38725874774 37895359774 830515000
FSIB 2010 48786556630 3295222368 44534755990 42308018191 2226737800
FSIB 2011 56104540125 3789505723 51214969389 48654220919 2560748469
IBBL 2007 166325286292 11841336254 144920609595 140674589595 4246020000
IBBL 2008 202115445098 230879135344 169830762745 157942609353 11888153392
IBBL 2009 244292144333 278302839706 202885879274 192741585310 10144293964
IBBL 2010 291937493665 23516276731 263225131026 258569499026 4655632000
IBBL 2011 341855262815 27613754893 305840563170 297548239170 8292324000
ICB
ISLAMIC 2007 17194223583 -8288252520 15309027671 2296354151 13012673520
ICB
ISLAMIC 2008 13014350677 -2929912587 14756492006 2889935006 11866557000
ICB
ISLAMIC 2009 13046153819 -4439294022 13419642011 2550716080 10868925931
ICB
ISLAMIC 2010 13594547691 -5804742034 13904840155 5338857533 8565982622
ICB
ISLAMIC 2011 12619163785 -7600892141 14222446393 6077063017 8145383376
IFIC 2007 29900052990 2613782109 28361456225 26061273678 2300182547
IFIC 2008 36092169540 3797012254 33018385382 31065120108 1953265274
IFIC 2009 50018251496 4197251224 37794256240 35474127676 2320128564
IFIC 2010 54660238937 5748521458 47563120128 45298937734 2264182394
IFIC 2011 73106252528 6568251459 63558241256 60979721492 2578519764
Jamuna 2007 20924021090 1656490038 16617450517 15777105263 840345254
67 | P a g e
Jamuna 2008 27307936141 2160731842 21036861012 20438548485 598312527
Jamuna 2009 42356203562 3980875046 32287661155 31576795932 710865223
Jamuna 2010 60673564672 6408191252 49734800806 48829280678 905520128
Jamuna 2011 70508052687 7281512684 56611795826 54993069568 1618726258
MBL 2007 38139901767 2929303879 31877860104 30983867720 893992384
MBL 2008 46374178835 3470093732 43419362481 42176889884 1242472597
MBL 2009 55553083656 4296251741 48295546954 47043496700 1252050254
MBL 2010 73739392053 7185685263 66377697326 65189885314 1187812012
MBL 2011 102262021546 9659331256 79998056293 77913433756 2084622537
APPENDIX-E
CATEG BANK NPL

YEAR ORY NAME SIZE ROA ROE PM ROD IEE OEA OIA OER ATO NIM TL
191362349 0.010 0.173 0.396 0.012 0.035 0.016 0.043 0.377 0.076 0.027 0.029
IBBL 717 7 0 9 3 6 3 3 2 1 0 3
635498644
LARGE AB Bank 03 0.030 0.422 0.572 0.036 0.037 0.021 0.073 0.286 0.083 0.023 0.045
BANKS
EXIM 581794944
BANK 00 0.016 0.212 0.435 0.180 0.027 0.015 0.052 0.290 0.083 0.022 0.150
574432513
DBL 07 0.012 0.225 0.350 0.014 0.040 0.020 0.055 0.366 0.098 0.028 0.031
AVERA 926337399
GE 57 0.017 0.258 0.439 0.061 0.035 0.018 0.056 0.330 0.085 0.025 0.064
ICB 174810629 - - -
ISLAMIC 51 0.035 0.074 1.000 0.036 0.052 0.030 0.005 6.701 0.047 0.046 0.850
264054040
JAMUNA 56 0.003 0.054 0.108 0.004 0.027 0.032 0.063 0.505 0.084 0.017 0.051
2007
269417808
FSIB 71 0.001 0.027 0.238 0.001 0.003 0.011 0.015 0.690 0.081 0.002 0.065
AL- 297417770
ARAFAH 21 0.018 0.247 0.437 0.023 0.030 0.017 0.058 0.297 0.075 0.021 0.450
SMALL
BANKS BANK 384360690
ASIA 93 0.019 0.282 0.461 0.024 0.034 0.088 0.129 0.682 0.095 0.025 0.024
BRAC 463825954
BANK 18 0.013 0.201 0.318 0.017 0.064 0.035 0.076 0.451 0.100 0.044 1.000
CITY 487554030
BANK 18 0.001 0.012 0.028 0.001 0.035 0.027 0.053 0.512 0.086 0.019 0.062
493713462
DBBL 38 0.010 0.206 0.334 0.011 0.041 0.025 0.054 0.463 0.099 0.024 0.002
42,579,485 0.009 0.112 0.224 0.013 0.042 0.022 0.066 0.337 0.089 0.030 0.043
EBL ,856 8 9 1 9 4 4 3 3 6 8 1
68 | P a g e
39,914,149
IFIC ,418 0.024 0.369 0.642 0.032 0.031 0.789 0.827 0.954 0.070 0.022 0.081
449405371
MBL 08 0.012 0.185 0.390 0.014 0.038 0.023 0.053 0.423 0.098 0.027 0.028
AVERA 373590555 -
GE 50 0.013 0.147 0.380 0.016 0.036 0.094 0.127 0.126 0.084 0.025 0.242
230879135 0.011 0.011 0.357 0.013 0.043 0.017 0.050 0.355 0.084 0.032 0.070
IBBL 344 6 6 7 2 5 8 2 0 6 0 0
841908909
AB Bank 28 0.028 0.342 1.236 0.034 0.037 0.051 0.074 0.696 0.088 0.024 0.031
LARGE
BANKS BRAC 724418933
BANK 91 0.013 0.179 0.307 0.017 0.060 0.040 0.083 0.474 0.111 0.044 0.047
71,136,842
DBL ,020 0.012 0.210 0.331 0.015 0.039 0.019 0.055 0.348 0.101 0.028 0.038
EXIM 68,446,464
BANK ,000 0.016 0.220 0.435 0.186 0.033 0.015 0.052 0.290 0.096 0.026 0.019
AVERA #########
GE ### 0.016 0.192 0.533 0.053 0.043 0.029 0.063 0.433 0.096 0.031 0.041
ICB 196314945 - - -
ISLAMIC 94 0.040 0.265 2.310 0.060 0.033 0.018 0.035 0.517 0.027 0.025 0.804
316466294
JAMUNA 99 0.015 0.222 0.461 0.018 0.027 0.023 0.055 0.406 0.091 0.018 0.028
2008
312393934
FSIB 18 0.003 0.041 0.550 0.004 0.008 0.012 0.018 0.669 0.101 0.006 0.042
AL- 371772212
ARAFAH 76 0.018 0.247 0.437 0.023 0.049 0.017 0.058 0.297 0.093 0.033 0.450
BANK 533711966
SMALL ASIA 29 0.013 0.206 0.360 0.016 0.012 0.089 0.124 0.713 0.093 0.009 0.016
BANKS
CITY 571145760
BANK 58 0.001 0.009 0.022 0.001 0.044 0.031 0.061 0.500 0.082 0.026 0.063
606189687
DBBL 87 0.014 0.260 0.424 0.016 0.044 0.028 0.060 0.468 0.090 0.030 0.033
545982680
EBL 72 0.015 0.169 0.334 0.019 0.039 0.024 0.068 0.356 0.096 0.028 0.033
45,729,490
IFIC ,694 0.014 0.173 0.405 0.018 0.035 0.794 0.830 0.957 0.077 0.026 0.059
55,928,721
MBL ,449 0.011 0.177 0.389 0.013 0.046 0.022 0.051 0.441 0.097 0.036 0.029
AVERA #########
GE ### 0.006 0.177 0.107 0.007 0.034 0.106 0.136 0.532 0.085 0.024 0.156
#########
LARGE AB Bank ### 0.032 0.334 1.364 0.041 0.043 0.055 0.078 0.701 0.085 0.028 0.028
2009
BANKS
BRAC 94,615,341
BANK ,505 0.013 0.179 0.307 0.017 0.060 0.040 0.083 0.474 0.111 0.044 0.047
69 | P a g e
EXIM 86,213,373
BANK ,094 0.020 0.252 0.532 0.023 0.032 0.015 0.052 0.284 0.094 0.026 0.027
#########
IBBL ### 0.012 0.012 0.437 0.014 0.041 0.016 0.044 0.369 0.077 0.030 0.050
AVERA #########
GE ### 0.019 0.194 0.660 0.024 0.044 0.031 0.064 0.457 0.092 0.032 0.038
AL- 48,515,787
ARAFAH ,384 0.018 0.241 0.497 0.022 0.041 0.019 0.054 0.344 0.083 0.028 0.350
BANK 68,663,131
ASIA ,337 0.019 0.271 0.507 0.024 0.050 0.088 0.126 0.697 0.091 0.037 0.007
CITY 76,466,801
BANK ,564 0.011 0.140 0.363 0.013 0.048 0.028 0.057 0.484 0.075 0.027 0.150
77,767,413
DBL ,094 0.012 0.193 0.341 0.016 0.036 0.018 0.054 0.336 0.096 0.025 0.056
81,480,529
DBBL ,482 0.014 0.261 0.422 0.017 0.043 0.026 0.059 0.441 0.076 0.025 0.025
SMALL
BANKS 69,870,738
EBL ,519 0.021 0.173 0.488 0.296 0.045 0.024 0.066 0.356 0.089 0.031 0.025
47,978,552
FSIB ,952 0.007 0.114 0.435 0.008 0.026 0.012 0.028 0.434 0.091 0.021 0.021
ICB 18,887,824 - 33.12 -

ISLAMIC ,773 0.109 0.465 1 0.158 0.022 0.024 0.021 1.158 0.026 0.015 0.810
62,902,192
IFIC ,726 0.014 0.214 0.459 0.018 0.029 0.663 0.694 0.955 0.062 0.018 0.061
48,730,951
JAMUNA ,557 0.019 0.232 0.482 0.022 0.028 0.021 0.060 0.346 0.078 0.018 0.022
66,166,515
MBL ,602 0.012 0.188 0.422 0.015 0.049 0.024 0.053 0.453 0.099 0.036 0.026
AVERA #########
GE ### 0.003 0.226 3.413 0.027 0.038 0.086 0.116 0.546 0.079 0.026 0.141
133706824
AB Bank 450 0.030 0.282 0.561 0.042 0.044 0.037 0.090 0.408 0.080 0.031 0.926
BRAC 122801151
BANK 189 0.017 0.210 0.376 0.024 0.053 0.040 0.085 0.469 0.090 0.042 0.150
LARGE
BANKS EXIM 113047466
2010 BANK 849 0.031 0.278 0.588 0.036 0.038 0.016 0.068 0.239 0.085 0.032 0.020
BENCHM
ARK Tk.
#########
99,908,915
IBBL ### 0.014 0.191 0.467 0.015 0.039 0.018 0.047 0.389 0.075 0.031 0.018
,252
#########
DBBL ### 0.020 0.286 0.477 0.024 0.032 0.053 0.094 0.560 0.075 0.022 0.025
AVERA #########
GE ### 0.022 0.249 0.494 0.028 0.041 0.033 0.077 0.413 0.081 0.031 0.228
SMALL
BANKS AL- 38,436,069
ARAFAH ,093 0.043 0.640 0.508 0.055 0.001 0.030 0.114 0.262 0.002 0.000 0.024
70 | P a g e
BANK 935209612
ASIA 52 0.018 0.243 0.454 0.022 0.037 0.075 0.115 0.649 0.090 0.032 0.016
CITY 908980519
BANK 72 0.003 0.054 0.108 0.004 0.027 0.032 0.063 0.505 0.084 0.017 0.051
901394802
DBL 60 0.019 0.255 0.437 0.024 0.039 0.019 0.062 0.309 0.082 0.027 1.000
825309784
EBL 39 0.029 0.200 0.553 0.043 0.051 0.025 0.078 0.321 0.085 0.036 0.916
551753358
FSIB 95 0.007 0.114 0.435 0.008 0.032 0.012 0.028 0.434 0.101 0.026 0.050
ICB 186416047 - 22.98 -

ISLAMIC 02 0.073 0.234 0 0.100 0.031 0.030 0.027 1.117 0.038 0.023 0.616
695652518
IFIC 67 0.024 0.287 0.430 0.030 0.044 0.604 0.659 0.916 0.067 0.030 0.048
710637727
JAMUNA 85 0.015 0.166 0.442 0.018 0.030 0.019 0.053 0.356 0.073 0.021 0.018
871401094
MBL 70 0.016 0.198 0.501 0.019 0.040 0.022 0.055 0.404 0.069 0.030 0.018
AVERA 697111615
GE 73 0.010 0.239 2.685 0.012 0.033 0.087 0.125 0.527 0.069 0.024 0.276
154404751
AB Bank 243 0.009 0.093 0.400 0.012 0.033 0.034 0.056 0.599 0.089 0.022 0.939
BRAC 140922122
BANK 974 0.013 0.178 0.349 0.017 0.065 0.040 0.077 0.518 0.101 0.040 0.150
LARGE
BANKS EXIM 129709816
BANK 841 0.016 0.139 0.494 0.019 0.039 0.020 0.051 0.382 0.102 0.030 0.016
389375604
IBBL 320 0.012 0.167 0.360 0.014 0.045 0.021 0.054 0.393 0.082 0.035 0.027
121897257
DBBL 096 0.017 0.238 0.446 0.021 0.027 0.065 0.104 0.624 0.073 0.018 0.210
AVERA 187261910
2011 GE 495 0.013 0.163 0.410 0.017 0.042 0.036 0.068 0.503 0.090 0.029 0.268
BENCHM
ARK Tk. AL- 106768180
118,569,86 ARAFAH 918 0.021 0.183 0.508 0.027 0.008 0.014 0.055 0.262 0.007 0.005 0.011
0,271
BANK 115075082
ASIA 722 0.016 0.169 0.474 0.020 0.033 0.066 0.100 0.656 0.095 0.024 0.027
CITY 115735967
BANK 684 0.015 0.222 0.461 0.018 0.027 0.023 0.055 0.406 0.091 0.018 0.028
SMALL
BANKS 105032138
DBL 25 0.214 0.241 0.505 0.026 0.031 0.187 0.610 0.306 0.947 0.222 1.000
117564320
EBL 732 0.021 0.175 0.494 0.034 0.042 0.023 0.066 0.345 0.083 0.029 0.922
634516362
FSIB 79 0.007 0.114 0.435 0.008 0.037 0.012 0.028 0.434 0.114 0.030 0.050
-
ICB 180151630 - 59.62 -
ISLAMIC 87 0.100 0.236 8 0.142 0.035 0.030 0.031 0.947 0.046 0.028 0.573
71 | P a g e
915086273
IFIC 91 0.008 0.107 0.263 0.010 0.032 0.496 0.526 0.944 0.073 0.022 0.041
870651352
JAMUNA 97 0.015 0.183 0.472 0.019 0.032 0.024 0.056 0.421 0.097 0.021 0.029
116551023
MBL 659 0.015 0.180 0.491 0.017 0.022 0.023 0.053 0.427 0.084 0.015 0.026
AVERA 842238351 -
GE 59 0.023 0.181 5.553 0.003 0.030 0.090 0.158 0.515 0.164 0.041 0.271
72 | P a g e

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Table of Contents

EXECUTIVE SUMMARY ....................................................................................................... 4

Particulars Page no.

Particulars Page no.

1.2 Objective of the study

To analyse the determinants of operating performance of Banks.

To analyze the recovery performance of the selected banks.

1.3 Rationale of the Study

Name of the Banks

AB Bank Limited Exim Bank of Bangladesh

Table 1.1: list of banks

Performance of Banking Industry

Competition has greater impact on operating performance of banks. Measurement of the

An overview of Banking Industry

Particulars 2010 2011 2012

Table 3.1: Banking System Structure. (Source- BB)

3.1 Institutional Framework Governing Banking Sector in Bangladesh

3.2 Legal Framework of the Banking Sector in Bangladesh

Capital Adequacy of the Banks

Rationalization of Schedule of charges

Rationalization of Rate of Interest

Loan Rescheduling Policy

Bank Account for Farmers

Considering contribution of the farmers to the economic activities especially in agricultural

Assistance for Export Oriented Ship Industry

Cash Reserve Requirement of Scheduled Banks with Bangladesh Bank

Statutory Liquidity Requirement of Scheduled Banks

Corporate Governance in Banks

Corporate Social Responsibility

Activities of Credit Information Bureau

On-site Inspection of Banks

3.4 COMPETITION OF BANKING SECTOR IN BANGLADESH

Asset size Determination

The economy of Bangladesh is largely dependent on Banking industry. A sound banking

60000.00 Asset size

Figure 4.1: Asset Size from 2008-12.

Asset Size- 2011

Analysis & Findings

5.1 PROFITABILITY RATIOS

5.1.1 Return on Equity:

Table 5.1: Category wise ROE For 2007 to 2011.

Figure 5.1: Category wise ROE For 2007 to 2011.

5.1.2 Return on Asset

YEAR SMALL LARGE INDUSTRY

Figure 5.2: Category wise ROA For 2007 to 2011.

5.1.3 Operating Profit Margin

YEAR SMALL LARGE INDUSTRY

Table 5.3: Category wise OPM For 2007 to 2011.

Figure 5.3: Category wise OPM For 2007 to 2011.

5.1.4 Return On Deposit

YEAR SMALL LARGE INDUSTRY

Table 5.4: Category wise ROD For 2007 to 2011.

Figure 5.4: Category wise ROD For 2007 to 2011.

5.2 EFFICIENCY RATIOS

5.2.1 Operating Income to Expense Ratio(IEE)

YEAR SMALL LARGE INDUSTRY

Table 5.5: Category wise IEE For 2007 to 2011.

Figure 5.5: Category wise IEE For 2007 to 2011.

5.2.2 Operating Expense to Asset Ratio

YEAR SMALL LARGE INDUSTRY

Table 5.6: Category wise OEA For 2007 to 2011.

Figure 5.6: Category wise OEA For 2007 to 2011.

YEAR SMALL LARGE INDUSTRY

Table 5.7: Category wise OIA For 2007 to 2011.