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Journal of Applied Sciences
  Year: 2005 | Volume: 5 | Issue: 10 | Page No.: 1814-1818
DOI: 10.3923/jas.2005.1814.1818
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Performance of Nationalized and Private Commercial Banks in Bangladesh

Saidul Hasan and Azizul Baten

This study was conducted to evaluate the comparative performance of the public and private commercial banks operating in Bangladesh with loan default as a big concern. Janata Bank (JB) has been taken as the sample bank to represent the Nationalized Commercial Banks (NCBs) and National Bank Ltd. (NBL) has been selected as the sample bank to represent the Private Commercial Banks (PCBs), respectively. A statistical analysis of dummy variables and log linear method have been used to compare the performance of NCBs and PCBs with respect to their loan default. The study (both dummy variable and log linear) reveals that the rate of default is the highest in NCBs as compared to PCBs. In sample banks’ default rate, we observe that both JB and NBL have alarming default rate while NBL’s default rate is a bit lower than that of JB. However, better situation of NBL in terms of loan recovery than JB. The study suggests that if the bank can successfully screen out the fake entrepreneurs and identify the genuine entrepreneurs; the recovery rate will automatically rise.
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How to cite this article:

Saidul Hasan and Azizul Baten , 2005. Performance of Nationalized and Private Commercial Banks in Bangladesh. Journal of Applied Sciences, 5: 1814-1818.

DOI: 10.3923/jas.2005.1814.1818






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