Indian Journal of Finance
By: Associated Management Consultants (P) Ltd.Single Issue
Single Issue
- IJF-Feb12-Article5-DETERMINANTS OF BANK’S PROFITABILITY: EVIDENCE FROM BANGLADESH
- Price : 80.00
- Published on March 27, 2013
- Associated Management Consultants (P) Ltd.
- Issues 356
- Language - English
- Published daily
About this issue
This empirical study was conducted on randomly selected six commercial banks of Bangladesh. This study uses widely used determinants of banks’ profitabilities, which are ROA, ROE and ROD and these are also commonly used criterion of Bangladesh Bank to evaluate banks’ performance. In addition, this study evaluates the efficiency ratio, asset utilization ratio, asset size and ROD as a determinant of banks’ profitability measured by ROA. The results of the financial indicators reveal that the Prime Bank is considered to be out performing in terms of total assets, whereas Arab Bangladesh Bank is showing soaring performance in terms of profitability. The results of regression analysis found the explanatory variables - operational efficiency, asset size and ROD to be positively related and asset utilization to be negatively related to ROA, but these associations are statistically insignificant. Keywords: Profitability, Determinants, Bank, Dupont Analysis
About Indian Journal of Finance
Indian Journal of Finance, a source of sophisticated analysis of developments in the rapidly expanding world of finance, is a monthly journal with topics ranging from corporate to personal finance, insurance to financial economics and derivatives.