A Comparative Study of Financial Performance of NBL and BRAC Bank in Bangladesh
[1]
Abu Zafar Mahmudul Haq, Department of Business Administration, City University, Urban Campus, Dhaka, Bangladesh.
The banking system of Bangladesh is facing crucial moment. In this context, the objective of the study is to analyze the performance evaluation of NBL and BRAC bank in Bangladesh. Data of this study come from secondary sources such as annual reports, websites, articles, newspapers and company profiles. Data has been analyzed through growth percentage, standard deviation, trend equation, square of correlation coefficient and correlation matrix for the purpose of evaluating the performance of NBL and BRAC banks of Bangladesh. Selected parameters of performance analyses are branches, employees, deposits, loans & advances and net income. It is observed that that the selected banks are able to attain growth. However, selected performance parameters of BRAC bank are stable compared to the NBL bank. Results of trend values of selected parameters are positive for the both banks except the net income trend value of NBL which is found negative. The square of correlation coefficient of branches, employees, deposits, loans & advances, net income is more than 0.80 except the NBL which indicates very low r2 i.e. 0.14. The results indicate that the prospect of BRAC bank is brighter than the NBL. It also thought that the prospect of private commercial banks in Bangladesh is mixed with bright and gloom pictures. This should be cautioned by the policymakers of Bangladesh in order to maintain stability of the banking sector of Bangladesh.
NBL, BRAC Bank, Performance Factors, Bangladesh
[1]
Annual reports of NBL 2009-2013.
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Annual reports of BRAC bank 2009-2013.
[3]
Aditya Sharma and Gopi Nath Modi (2014). A Comparative Study of Financial Performance of Syndicate bank and Canara bank. Indian Journal of Research. 3(9):27-29.
[4]
Dhevika, V.P.T, Latosri, O.T.V and Gayathri, H (2013). A Study on Financial Performance Analyses of City Union bank. Internatioonal Journal of Advanced Research in Management and Social Sciences. 2(7):53-57.
[5]
Hossain, M.K and Bhuiyan,R.H.((1990). Performance Dynamics of Nationalised Commercial Banks in Bangladesh-The Case of Sonali Bank. Journal of Business Studies. XI (1).
[6]
Muklesur Rahman (2015). Patience key to success for new banks. Star Business. May 24.pp.B1-B3.
[7]
Rezaul Karim Byron (2015). Bank make good cash recovery against bad loans. Star Business.pp. B1-B3.
[8]
Rezaul Karim Byron (2014). JS panel unhappy as no action taken against ex-chairman of BASIC Bank. Star Business. October.30.pp.B1-B3.
[9]
Rezaul Karim Byron (2013). Banks pass a gloomy year. Star Business. January 4. PP.B1-B3.
[10]
Sazzadur Rahman (2015). Patience key to success for new banks. Star Business. May 24.pp.B1-B3.
[11]
Sazzadur Rahman (2012). Private banks sitting on surplus funds. Star Business. November 21. pp. B1-B3.
[12]
Tanvir, A.C and Kashfia, A. (2009). Performance Evaluation of Selected Private Commercial Banks in Bangladesh. International Journal of Business and Management. 4(4):86-97.
[13]
Websites: www.bracbank.bd.
