A Comparative Analysis of Financial Performance of Banking Sector in Bangladesh

This paper examines the changing tendency of credit flows in Bangladesh based on the credit provided by the scheduled banks of Bangladesh. We observed the trend is slow as well as in some cases negative in the terms of growth of credit and disbursement to different sectors such as private and public sector, agriculture, SME, and industry sector in the near future. Three folds problems have been found in case of credit disbursement. First, the amount of non-performing loan is increasing second; Low profitability in banking sector. Third, state owned banks have to recapitalization from the government. We found that only 2 banks strong, 33 banks as Satisfactory, 9 banks as Fair, and 2 banks as Marginal (where 1 bank is found as Unsatisfactory) in 2011 out of 47 banks based upon CAMELS rating system.