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Growth of Private Commercial Banks in Bangladesh

Received: 14 December 2013     Published: 30 January 2014
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Abstract

Now-a-days PCBs have succeeded to occupy a handsome portion of the total banking sector through their 23 years journey. For that matter, the study is done to verify how successfully PCBs have come across to today’s position. After liberation in 1971 all banks except few foreign banks’ branches were nationalized and reorganized. But the step of nationalization is viewed as a discouraging picture of NCBs because of some careless management activities. For that reason, PCBs had appeared in 1982 in the banking sector to improve the NCBs’ performance as well as the overall condition of the banking sector. The whole period has been segmented in to two parts and the growth of PCBs has been tried to find out according to the segments. Firstly, the denationalization and privatization period (1982-1989) and secondly, the financial liberalization period (1990-2004). We have tried to measure the growth of PCBs in the above mentioned time periods. To ascertain the PCBs’ growth we have used their branch expansion, deposit mobilization capability and credit deployment quality. With the help of these three components we can observe whether PCBs share in the total banking sector has been increased. We have also inquired that whether the performance of PCBs is better than that of NCBs. The study also covers NPL problems faced by the banks, and to what extent PCBs have recovered their NPL condition and what should be the further action to restrain the problem. Though PCBs have been playing the leading position, with the largest number of banks (30) in the banking sector, their overall performance is not as much appreciable as it should be. For that reason, PCBs should behold their full concentration to overcome their shortcomings.

Published in International Journal of Economics, Finance and Management Sciences (Volume 2, Issue 1)
DOI 10.11648/j.ijefm.20140201.17
Page(s) 53-67
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2014. Published by Science Publishing Group

Keywords

Banking, Industry, Growth, Private Commercial, Financial Institution, Growth, Performance

References
[1] Bangladesh Bank . 2004. Annual Report 2003-2004. Dhaka. Bangladesh Bank.
[2] Choudhury, Toufic A. 2004. "Private Banking In Bangladesh". Bangladesh Institute Of Bank Management .(Mime)
[3] Choudhury, Toufic A. 1990. "An Evaluation Of The Performance Of Commercial Banks Of Bangladesh". Himachal Pradesh University , Shimla.(Mime)
[4] Choudhury, Toufic A. 1998. "Impact OfDenationalisation and Privatisation in the Profitability and Productivity of the Commercial Banks of Bangladesh". Bank Parikroma. Vol.XIII, Nos 3 &4. pp.37-49
[5] Uddin, Mohammad Sohrab, Dr. Bandana Shaha, Toufic Ahmed Choudhury. 1998. "Growth and Structure of the Banking Sector in Bangladesh". Bank Parikrama. Vol. X. pp. 1-9.
[6] Huda, Md. Nazrul.1998. "Bangladesh’s Financial Sector: An Oveview". Bank Parikrama. Vol.XXII,Nos 3 & 4. pp. 33-54.
[7] Ahmed, Faruquddin.1999."Banking in Bangladesh- Evolution and Present Status".. Vol. XXIV, No.2,June,1999. pp. 5-12.
[8] Alam, Khorshed. 1994. "Reforms in Finance and Banking in Bangladesh". Bank Parikrama. Vol.XIX, Nos.3 & 4, September-December,1994. pp.1-6.
[9] Choudhuri, A.H.M. Nurul Islam, et al.1995. " An Evaluation of the Impact of Reforms in the Financial Sector". Bank Parikrama. Vol. XX, Nos.3 & 4.1995.pp.1-44
[10] Mason, D. Robert, Douglas A. Lind.1990. Statistical Techniques in BUSINESS & ECONOMICS. Ninth Edition. Irwin.
[11] Choudhury, Toufic Ahmed. "PRINCIPLES AND PRACTICES OF BANKING". Bangladesh Institute of Bank Management.(Mime)
[12] Bangladesh Bank, Scheduled Bank Statistics. Dhaka. Bangladesh Bank, 1983-2004.
[13] Bangladesh Bank, Economic Trend. Dhaka. Bangladesh Bank, 1983-2003.
[14] Bangladesh Bank, Bangladesh Bank Bulletin. Dhaka: Bangladesh Bank, 1983-2003.
[15] Zikmund, William G.2003. BUSINESS REASEARCH METHODS. Seventh edition. Thomson.
Cite This Article
  • APA Style

    Md. Ariful Islam, Mahmudul Hasan Siddiqui, Md. Rayhan Islam. (2014). Growth of Private Commercial Banks in Bangladesh. International Journal of Economics, Finance and Management Sciences, 2(1), 53-67. https://doi.org/10.11648/j.ijefm.20140201.17

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    ACS Style

    Md. Ariful Islam; Mahmudul Hasan Siddiqui; Md. Rayhan Islam. Growth of Private Commercial Banks in Bangladesh. Int. J. Econ. Finance Manag. Sci. 2014, 2(1), 53-67. doi: 10.11648/j.ijefm.20140201.17

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    AMA Style

    Md. Ariful Islam, Mahmudul Hasan Siddiqui, Md. Rayhan Islam. Growth of Private Commercial Banks in Bangladesh. Int J Econ Finance Manag Sci. 2014;2(1):53-67. doi: 10.11648/j.ijefm.20140201.17

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  • @article{10.11648/j.ijefm.20140201.17,
      author = {Md. Ariful Islam and Mahmudul Hasan Siddiqui and Md. Rayhan Islam},
      title = {Growth of Private Commercial Banks in Bangladesh},
      journal = {International Journal of Economics, Finance and Management Sciences},
      volume = {2},
      number = {1},
      pages = {53-67},
      doi = {10.11648/j.ijefm.20140201.17},
      url = {https://doi.org/10.11648/j.ijefm.20140201.17},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijefm.20140201.17},
      abstract = {Now-a-days PCBs have succeeded to occupy a handsome portion of the total banking sector through their 23 years journey. For that matter, the study is done to verify how successfully PCBs have come across to today’s position. After liberation in 1971 all banks except few foreign banks’ branches were nationalized and reorganized. But the step of nationalization is viewed as a discouraging picture of NCBs because of some careless management activities. For that reason, PCBs had appeared in 1982 in the banking sector to improve the NCBs’ performance as well as the overall condition of the banking sector. The whole period has been segmented in to two parts and the growth of PCBs has been tried to find out according to the segments. Firstly, the denationalization and privatization period (1982-1989) and secondly, the financial liberalization period (1990-2004). We have tried to measure the growth of PCBs in the above mentioned time periods. To ascertain the PCBs’ growth we have used their branch expansion, deposit mobilization capability and credit deployment quality. With the help of these three components we can observe whether PCBs share in the total banking sector has been increased. We have also inquired that whether the performance of PCBs is better than that of NCBs. The study also covers NPL problems faced by the banks, and to what extent PCBs have recovered their NPL condition and what should be the   further action to restrain the problem.  Though PCBs have been playing the leading position, with the largest number of banks (30) in the banking sector, their overall performance is not as much appreciable as it should be. For that reason, PCBs should behold their full concentration to overcome their shortcomings.},
     year = {2014}
    }
    

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  • TY  - JOUR
    T1  - Growth of Private Commercial Banks in Bangladesh
    AU  - Md. Ariful Islam
    AU  - Mahmudul Hasan Siddiqui
    AU  - Md. Rayhan Islam
    Y1  - 2014/01/30
    PY  - 2014
    N1  - https://doi.org/10.11648/j.ijefm.20140201.17
    DO  - 10.11648/j.ijefm.20140201.17
    T2  - International Journal of Economics, Finance and Management Sciences
    JF  - International Journal of Economics, Finance and Management Sciences
    JO  - International Journal of Economics, Finance and Management Sciences
    SP  - 53
    EP  - 67
    PB  - Science Publishing Group
    SN  - 2326-9561
    UR  - https://doi.org/10.11648/j.ijefm.20140201.17
    AB  - Now-a-days PCBs have succeeded to occupy a handsome portion of the total banking sector through their 23 years journey. For that matter, the study is done to verify how successfully PCBs have come across to today’s position. After liberation in 1971 all banks except few foreign banks’ branches were nationalized and reorganized. But the step of nationalization is viewed as a discouraging picture of NCBs because of some careless management activities. For that reason, PCBs had appeared in 1982 in the banking sector to improve the NCBs’ performance as well as the overall condition of the banking sector. The whole period has been segmented in to two parts and the growth of PCBs has been tried to find out according to the segments. Firstly, the denationalization and privatization period (1982-1989) and secondly, the financial liberalization period (1990-2004). We have tried to measure the growth of PCBs in the above mentioned time periods. To ascertain the PCBs’ growth we have used their branch expansion, deposit mobilization capability and credit deployment quality. With the help of these three components we can observe whether PCBs share in the total banking sector has been increased. We have also inquired that whether the performance of PCBs is better than that of NCBs. The study also covers NPL problems faced by the banks, and to what extent PCBs have recovered their NPL condition and what should be the   further action to restrain the problem.  Though PCBs have been playing the leading position, with the largest number of banks (30) in the banking sector, their overall performance is not as much appreciable as it should be. For that reason, PCBs should behold their full concentration to overcome their shortcomings.
    VL  - 2
    IS  - 1
    ER  - 

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Author Information
  • BASIC Bank Limited, Khulna, Bangladesh

  • Unilever Bangladesh Limited, Gulshan-1, Dhaka-1212, Bangladesh

  • Business Administration Discipline, Khulna University, Khulna-9208, Bangladesh

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