Project Report on Financial Performance Analysis of Banking Industry in Bangladesh: Based on Eastern Bank limited, City Bank Limited and Mercantile Bank Limited.

Abstract

The thesis paper deals with financial performance analysis of banking industry based on selected banks: Eastern Bank Limited, City Bank Limited and Mercantile Bank Limited. Banking sector recently faces some sorts of challenges like liquidity crisis, dollar inadequacy, Ukraine- Russia War and economic stress. Banks must follow accountability, integrity and honesty. Banks have to follow rules and regulations in a described way. So performance analysis is the way where one can judge bank performance such as profitability, growth, liquidity status, liquidity gap, CAMEL management and asset utilization. In this paper, the author selected three commercial banks as sample size out of sixty one listed banks for doing research work. The selected banks are Eastern Bank Limited, City Bank Limited and Mercantile Bank Limited. It’s hard to consider all the banks in a study due to time constraints. In this section, the author presented brief introduction of those three banks and focused on banking industry in Bangladesh in brief. Banking industry has to face many challenges. In 2020 it had faced corona virus pandemic. Lockdown situation created a devastating situation in Bangladesh. But Ukraine- Russia war made the situation difficult. The price of crude oil and other natural resources have increased. The foreign reserve which was almost 50 billion USD is down to 31 billion U.SD. Therefore banks are currently facing difficulty in foreign trade. The main objective of the project paper is to submit this paper to fulfill the graduate requirement. To explore the performance analysis of Eastern Bank Limited (EBL), City Bank Limited (CBL) and Mercantile Bank Limited (MBL) is one of secondary objective of this paper. Secondary information in this research is basically annual report (2017, 2018, 2019, 2020 and 2021) of EBL, CBL and MBL. Financial ratios are the best analytical tools to assess the financial heath and performance of a particular business organization. Accounting & finance experts using financial ratios a lot like a skilled physician uses lab test results (Higgins, Robert C, 2017). In the long, run data which is found by using ratio analysis is considered valuable to see the financial health of an organization.