Objectives and profitability efficiency.· To find out the

Objectives
of this study:The focal points of this study are given below:·        
To provide a clear
observation of state owned commercial banks in Bangladesh.·        
to evaluate the
performance of state owned commercial banks in Bangladesh based on some
variables. ·        
To make an estimate
about the contriution of the state owned banks in the society and the economy
of Bangladesh.·        
To examine the
performance of the state-owned banks and financial institutions based on
productive efficiency, cost management ability and profitability efficiency.·        
To find out the
strength and weaknesses of the selected state-owned banks and financial
instituitions. ·        
To suggest some
measures to improve the performance of the state-owned banks in Bangladesh.·        
To demonestrate some
recommendation on the finding of this study.Hypothesis:Key measures that have been considered for this study are
return on asset (ROA), loan to asset ratio (LAR), credit deposit ratio (CDR), non
performing loan ratio (NPL), percentage of classified loan (POCL). Here this
study wants to reveal the relationship among those variables and their
subsequent impact on the performance of the banks. Logically, performance of
the banks is the dependent variable that has been expressed by return on asset
(ROA) . Whereas, this study proposes that NPL , LAR, CDR and total POCL have
significant impact on the overall performance of banks. Therefore, these are
considered as independent variables. H1: There is a significant relationship between LAR and
performance of the state owned banks.H2: There is a significant relationship between CDR and performance
of the state owned banks.H3: There is a significant relationship between NPL and
performance of the state owned banks.H3: There is a significant relationship between POCL and
performance of the state owned banks. Methodology:This
section deals with the method employed to obtain relevant information on
selected state-owned banks of Bangladesh to evaluate their performance. The purpose of this study is to evaluate the factors
determining the performance of the State-owned banks and financial institutions
of Bangladesh.Data source and
description:The data are mainly obtained from the Annual Reports of the
State-owned Banks of Bangladesh, Annual Reports of Bangladesh Bank. Average of
five years ratios from 2011 to 2015 was evaluated to assess the financial
performance of the state-owned banks and financial institutions in Bangladesh. Model
specification:The financial ratios were used to assess bank performance.
All the ratios were used to test the hypothesis. This study uses a descriptive
financial analysis to describe, measure, and compare the financial situations
of State-owned commercial banks as well as applied an econometric multivariate
regression model to test the significance of variables on performance of
State-owned commercial banks of Bangladesh. The profitability ratios ROA is
assumed as dependent variables while loan to asset ratio (LAR), non performing
loan ratio (NPL), credit to deposit ratio (CDR) and percentage of classified
loan (POCL) are as independents variables.ROA = ? + ?1CDR + ?2LAR + ?NPL + ?POCL + ?Where, ROA = Return on Asset             LAR = Loan to Asset
Ratio             CDR = Credit Deposit
Ratio             NPL = Non Performing Loan Ratio             POCL = Percentage of
Classified Loans  This study will also rank the state-owned banks of Bangladesh
based on some major banking activities. These activities are total deposits,
total credits, total assets, total shareholderds equity, return on equty,
return on assets, credit deposit ratio, non performing loan ratio, percentage
of classified loan, cost to asset ratio, cost to deposit ratio, return on
deposits, cost of borrowing, cost to total asset rati, net interest margin and
yield on investment.Limitations
and Assumptions of the study:1. This study is limited to five years data only. (2011-2015)2. This study considered only some selected state-owned banks
of Bangladesh. Therefore, it did not consider other banks and financial
institutions to evaluate the performance of banks.3. Here, this report is prepared based on the secondary data
that has been published in annual reports of the banks.4. There was significant limitation of time and money to
prepare this report.    

 Result and analysis:Comparison of the bank’s deposits,
credits, assets, owners’ equity, net interest income, ROE, ROD, ROA, POCL, CRD,
CoB, CIA, NIM and YOI.

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Table
(1) shows total deposits for all the selected state-owned banks and financial
institutions though 2011-2015, and provides the growth rate of deposits based
on 2011 as base year. The average of total deposits for Bangladesh Development
Bank Limited (BDBL) is tk. 15,766.88 million with very high growth rate of
234.98% in year 2015 comparing with year 2011 whereas the growth rate of Rupali
Bank (RBL) is 67.35% with average total deposits of tk. 179,455.09 million.

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