Study on Management

Banking

Banking

of private banking sector should not be taken lightly. In our study, we will focus on the relative performance of the local privatized commercial banks (excluding Islamic banks) and nationalized commercial banks by analyzing their respective financial statements and some statistical data. Table B: Efficiency Ratios

Criteria Sub Criteria Ratios Deposit Per Employee Deposit Per Branch Operational Advance Per Branch Per Employee Administration Cost Efficiency Administration Cost Per Total Admin. Cost/Fund Utilized Taka Employed Fund Utilization Ratio Per Employee Fund Utilization Productive Profit-Employed Fund Ratio Advance-Deposit Ratio Total Advances/Total Deposits Composite Productivity Profit-Employed Fund Ratio/ Administration Cost Per Taka Employed Distributive Inequality Index Net Income/Fund Utilized Fund Utilized/Loanable Fund Fund Utilized/Total no. of Employees Formula/Operational Definition Total Deposit/Total no. of Employees Total Deposit/Total no. of Branches Total Advances/Total no. of Branches Total Admin. Cost/ Total no. of Employees

Banking

for PCBs and NCBs were 0.002 and 0.001. During the period 1999-2005 the average figures of ROE are 21.23% and 4.049% for PCBs and NCBs respectively. The average figure shows that the ROE of PCBs is very optimistic in relation to the ROE of NCBs. The standard deviations are 0.049 and 0.032 for PCBs and NCBs. The standard deviation suggests that the ROE of NCBs has little more consistency than that of PCBs. It is shown by the table that the profit expenses ratio for the PCBs and NCBs are 16.848% and 1.078% with standard deviation of 0.036 and 0.009. The figures clearly indicate that the ratio for PCBs is 15 times higher than NCBs. Net profit per branch on an average was BDT 2,729,692 and BDT 132,540 for PCBs and NCBs respectively with a inter year variation of BDT 945,199 and BDT 99,154. On average PCBs are 20 times profitable than NCBs. Apparently it is viewed that the volatility of the...