Banking is an indispensable industry that affects the public assistance of all other industry and the economic system as a whole. In fact. growing and development of a state significantly depend on the degree of growing and development attempted by the banking sector. There is a consensus sing the positive function played by the fiscal sector in advancing economic development ( Gerschenkron. 1962 ; Patrick. 1966 ; Galbis. 1977 ) . In Bangladesh. banking sector has flourished a batch compared to other sectors of the economic system. But the function of this key sector in national development is non satisfactory. There is non merely an highly strong capital stock but the rate of capital formation is besides really meager.

The current rates of domestic nest eggs and investings as a % of GDP are 20. 2 and 24. 4 % severally ( Bangladesh Bank Annual Report 2004-05 ) . In the yesteryear. the rate of nest eggs and investing were much lower than the present rate. Therefore. development programs of Bangladesh have been mostly aid development. Between 1972-73 and 1981-82. assistance has financed on an norm of 75 % of fixed investings and the king of beastss portion of the development budget ( ERD ) . Under these Fortunes. internal resource mobilisation is an pressing necessity for a autonomous Bangladesh. Towards this terminal. banking Industry may play a important function in mobilising community’s nest eggs and imparting the same into the socially desirable sectors of the economic system.

As fiscal mediators. Bankss can play a important function in of most economic systems. In the absence of effectual functional securities market. the banking sector in Bangladesh takes the lead in mobilizing resources and apportioning financess to profitable terminals. The effectivity of fiscal intermediation can impact economic growing. The fiscal intermediation affects the net return to nest eggs and gross return to investing. The prominence of fiscal establishments for rapid economic growing is consentaneous. The bank based position of fiscal system highlights the positive function of bank in mobilising resource. placing good undertakings. monitoring directors and pull offing hazards. The function of banking establishments as intermediary between the investor and enterpriser is of critical importance in a underdeveloped state like Bangladesh.

The rating of Banks public presentation is a complex procedure affecting interactions between the environments. internal operations. and external activities. In executing this rating concerned governments in the banking sector prior to independence felt for resource mobilisation and utilizing the same in the coveted sectors. For this ground all the commercial Bankss were nationalized instantly after independency ( Bhattacharjee. 1989 ) . Development of private sector is indispensable to get by with the challenges of globalisation. But sing the socio-economic status of Bangladesh. utmost denationalization. peculiarly in the banking sector. may non be desired.

Because. even though. the figure of private Bankss ( local & A ; foreign ) are increasing and the figure of nationalized Bankss are diminishing. still the NCBs occupy a dominant topographic point in the banking sector of the state and play a pioneering function in capital formation. exciting the degree of industrialisation. poorness relief and human development and in the overall economic development. NCBs provide loans to productive and precedence sectors both public and private covering agribusiness. industry. trade and commercialism. On the contrary. private Bankss chiefly operate in towns and metropolitan metropoliss and do concern with celebrated enterprisers and with the flush subdivisions of the society ; while foreign Bankss operate merely in the metropoliss and do concern with the elect subdivision of the society. Hence. this paper focused on the public presentation of the banking sector in general with a wider spear.

As fiscal mediators. Bankss can play a important function in the most economic systems. In the absence of effectual functional securities market. the banking sector in Bangladesh takes the lead in mobilizing resources and apportioning financess to profitable terminals. The effectivity of fiscal intermediation can impact economic growing. The fiscal intermediation affects the net return to nest eggs and gross return to investing. The prominence of fiscal establishments for rapid economic growing is consentaneous. The bank based position of fiscal system highlights the positive function of bank in mobilising resource. placing good undertakings. monitoring directors and pull offing hazards. The function of banking establishments as intermediary between the investor and enterpriser is of critical importance for a underdeveloped state like Bangladesh. So the survey is a demand of the clip for better advancement towards a developed hereafter.

2. 0 Conceptual Background of the Study Performance indicates the grade of management’s success in apportioning the beginnings of the firm’s capital to productive usage and is focused in the in the market value of the firm’s capital. Performance may be defined as the achievement of the ends which are taken into consideration. The word public presentation may be the equivalent word of efficiency in the context of concern phenomenon. Many bookmans opined that public presentation of a house may be considered as the term managerial public presentation. An rating of public presentation indicates to what extent an endeavor achieves its mark. Evaluation is a judgment worth of something and like all judicial affairs. it calls for justness. equity and good conscious on the portion of the individual doing the rating. It is to be considered an built-in portion of the direction control on a uninterrupted and systematic footing.

Performance rating is an indispensable tool of direction. It is relevant both in seeking reply to assorted inquiries to be asked about country of activities in which public presentation might be improved. The chief intent of public presentation rating is to help in determination on two degrees i. e. at a lower degree. It can be used to inform the twenty-four hours to twenty-four hours determination devising of the direction bespeaking how to keep the efficiency and effectivity of the Bankss in short term. At a higher degree it can be used to inform the one-year planning and budgeting procedure in which determinations are taken about the long term deployment of resources and mark for accomplishment. Thus it can be said that public presentation rating means a method under which the public presentation of an organisation is evaluated otherwise.

In Bangladesh public presentation of banking sector was considered with a really high note from the really get downing. It was felt that new born liberated state will necessitate the public presentation of banking sector to maintain the economic system unrecorded. In making so. after the war of release. the Bankss runing Bangladesh ( except those incorporated abroad ) were nationalized. These Bankss were merged and grouped for accomplishing the end of authorities and people. With the transition of clip the figure and types of bank expanded and the country of banking support is besides enlarged vividly. For this. survey becomes a necessity to happen out loop holes every bit good as countries so that service can be expanded towards all necessary terminals. For making so banking industry plays a polar function in capital formation and excite the degree of industrialisation. poorness relief and human development.

In a sense. healthy Bankss and healthy economic systems seem to travel together. Therefore. public presentation of such organisations peculiarly ; operational efficiency. direction soundness. productiveness. profitableness and societal profitableness are of great concern. An in-depth survey to analyse the public presentations of the banking industry of Bangladesh by using the most widely used indexs of bank public presentation could be deserving while. The banking industry of Bangladesh is composed of five types of Bankss viz. Nationalized Commercial Banks ( NCBs ) . Specialized Bankss ( SBs ) . private Commercial Banks ( PCBs ) . Foreign Commercial Banks ( FCBs ) and Muslim Banks ( IBs ) differ in their motivations. Different types of Bankss give precedence to different stakeholders. So. public presentation analysis as a whole can do the industry more originative and more supportive to accomplish their organisational end every bit good as can assist the state to avoid poorness and larn to take prospective lives. Because. public presentation analysis as a whole will convey out all cringle holes for back benchers in this sector and let them with information to travel in front with prospective outlook.

3. Aims of the Study The wide aim of this proposal is to do a comprehensive analysis of growing. productiveness. profitableness and public presentation of the banking industry in Bangladesh and to propose steps for bettering their public presentation. The specific aims of the proposal are as follows: • To analyse and compare the growing tendencies of banking facilities/services and end product of banking sector as an industry. • To step and compare the productiveness tendencies of banking sector. • To compare overall public presentation of the cross subdivision of Bankss from assorted angles. • To carry on an in-depth analysis of the causes of lower or higher degrees of productiveness and public presentation ( if any ) among all Bankss. • To measure bing remittal expense system and direct its profitable use through proper planning and action. • To propose the possible lines of actions to better the public presentation of assorted classs of Bankss.

4. Justification of The Study 1. Literature Review From a item literature reappraisal it is found that a good figure of researches were conducted in the field of public presentation rating in banking sector. But unluckily. Performance Analysis of Banking Industry in Bangladesh as a whole was non conducted. As such the literature reappraisal of the undermentioned articles. diaries and research work compelled me to hold a distinguishable thought that a research of holding a complete image of Banking industry is a demand of the clip. As such my literature reappraisal found following thoughts:

Abedin. Roy and Mustafi ( 1989 ) in a survey titled. “A Preliminary Note on Measurement of Productivity in the Commercial Banks of Bangladesh. ” mentioned that there was a steady growing of bank end product during 1975-1988. The end product was measured as the volume of working fund handled per employees. There were fluctuations in the degrees of productiveness of different types of Bankss. They besides mentioned about a falling tendency of productiveness index of private Bankss with small fluctuations during 1985-88. In instance of Foreign Bankss they reported a crisp autumn of productiveness index from 100 in 1985 to 37 in 1986. so a lifting tendency. The restrictions of his survey were that he did non considered the societal facets of the Banks.

The information on working fund were non comparable with any published informations of Bangladesh Bank ( BB ) due to utilizing the terminal June and stop December figures of every twelvemonth. The survey neither efforts to analyse the causes of lower or higher productiveness of Bankss nor strongly suggests the steps for increasing the degrees of the Bankss productiveness. Cookson ( 1989 ) in his article titled. “Productivity in the Banking Industry in Bangladesh” stated that productiveness in the banking industry is really hard to gauge by utilizing available informations. He besides said that the conceptual troubles limit comparings among the Bankss in Bangladesh. In this paper the writer tried to give a proper definition of labour productiveness in commercial banking. He pointed out that the productiveness of the entire commercial banking system was dead. However. he took a partial attack for mensurating productiveness of the Bankss. In no manner it reflected the entire productiveness scenario of the banking sector.

Shakoor ( 1989 ) ’s paper on “Measurement of Profitability in Commercial Banks in Bangladesh” investigated the nature of productiveness of four nationalized commercial Bankss ( NCBs ) during 1972-86 and that of five private commercial Bankss ( PCBs ) during 1983-86. The paper focused on some selected indexs of general productiveness and profitableness. such as sedimentations. progresss. income. spread. outgo etc. per employee and per subdivision. He used some statistical steps such as norms. standard divergence and coefficient of fluctuations both NCBs and PCBs. The other statistical steps like. tendency. correlativity. arrested development analysis etc. were non used by the writer. He observed that the productiveness of the NCBs in Bangladesh had an increasing tendency during 1972-86 and the productiveness of the selected private Bankss showed better state of affairs when compared with that of NCBs during the period under survey.

But. his survey had restrictions and in no manner that reflected the entire productiveness tendency of the commercial banking sector as a whole. Bhattacharjee and Saha ( 1989 ) in their joint eff0rt titled. “An Evaluation of Performance of NCBs In Bangladesh” tried to mensurate the public presentation of NCBs for th1973-1987. They analyzed the public presentation of NCBs on the footing of five sets of indexs. They are: ( a ) General concern steps in footings of entire concern. sedimentation. progresss. gross income and net net income ; ( B ) Social profitableness steps in footings of sedimentation mobilisation ( clip sedimentation ) . branch enlargement. ( figure of subdivisions ) and employment coevals ; ( degree Celsius ) Branch Performance Measures in footings of net income per subdivision. sedimentation per subdivision. concern per subdivision and gross income per subdivision ; ( vitamin D ) Employee public presentation steps in footings of net income per employee. income per employee and concern per employee ; ( vitamin E ) Profitableness steps in footings of rate of net income on equity. net income per unit of sedimentation and net income per unit of progresss.

The writers found upwards tendencies in about all the public presentation steps. Besides. inter bank and intra bank fluctuations in public presentation steps were besides observed by them. Detecting ‘means’ and ‘standard deviations’ of selected steps in NCBs. the writers reported that the NCBs could keep the lifting tendencies. They mentioned that in malice of disinvestment of two NCBs and turning importance attached to the development of private banking. the NCBs still played a dominant function in the banking sector. They hoped that accomplishment of the NCB sector may farther be enhanced if due attention is taken to better the bing planning and monitoring system of comparative operational public presentation facets of thee Bankss.

Abedin ( 1990 ) in his book titled “Commercial Banking in Bangladesh: A Role of commercial Study of Disparities of Regional and Sectoral Growth Trends ( 1846-1986 ) . ” examined the function of commercial Bankss under the private ownership ( 1846-1970 ) in increasing regional and sectoral disparities in rendering the banking services in Bangladesh. He besides investigated the portion played by the commercial Bankss under the public ownership ( 1971-1986 ) in extenuating any such disparities. In this position the writer tried to critically analyze the growing tendencies of banking installations in Bangladesh for the period from 1846 to 1986. This survey analysed the impacts of nationalisation of commercial Bankss on different parts and sectors of Bangladesh economic system after the independency of the state. The writer identified some factors act uponing recognition deployment such as legal demands of hard currency modesty. political force per unit area on the bank executive etc.

There are some other of import factors. which should non be overlooked. Such as. motive factor of the bank executives. occupation security. honestness etc. The survey justly identified that. regional economic disparities led to the growing of regional instabilities in the distribution of banking installations. The political economic system of the pecuniary policy and banking was besides responsible for this ( page 260 ) . To discourse about restrictions it can be said that. within the range of a individual thesis. to cover with a big figure of issues is neither possible nor desirable. The writer admitted that many current issues of banking operations could non be analyzed in this thesis. It would be more worthy and specific if some of the cardinal issues were mentioned.

Chowdhury ( 1990 ) in his thesis titled “An Evaluation of the Performance of Commercial Banks in Bangladesh” assessed the overall part of the commercial Bankss in the fiscal development of Bangladesh. He analyzed the tendency of commercial bank’s branch enlargement. sedimentation mobilisation and deployment of recognition for the period 1972-86. The productiveness and profitableness facets of the Nationalised Commercial Banks ( NCBs ) and Private Commercial Banks ( PCBs ) for the period 1983-1986 ( covering a period of four old ages ) were besides examined in the thesis. The survey covered all commercial Bankss excepting foreign and Muslim Bankss and used secondary informations. The survey stated that the growing form of the fiscal development and the part of commercial Bankss towards fiscal development in Bangladesh was non merely uneven but besides really slow.

The survey observed that the growing and development of commercial banking in Bangladesh during 1972-86 was non satisfactory. The writer observed that the tendencies of net incomes. profitableness and productiveness of the commercial Bankss. over the full mention period. were characterized by uneven fluctuations bespeaking unsystematic and unplanned concern enlargement of the commercial Bankss. The survey identified that the frequent fluctuations in the ‘burden’ of the commercial Bankss was chiefly responsible for the uneven tendencies in net incomes and profitableness.

Like any other survey. the survey had besides some defects. The station denationalisation and denationalization period 1983-86 ( four old ages ) was excessively short in comparing to the pre denationalisation or nationalized period 1972-1982 ( 11 old ages ) . The period considered ( 1983-1986 i. e. four old ages ) for the comparative analysis between the public presentation of NCBs and PCBs was really early to maturate. Since the survey measured the productiveness and profitableness public presentation utilizing individual steps such as ratio of net net income volume of working fund. ratio of entire income to entire outgo and ratio of entire income to manpower disbursals. those steps had bounds to warrant the consequences. If some extra steps had been used. so the consequences might be more realistic. So this survey has some restrictions and insufficiencies which are expected to be minimized in the present survey.

Moniruzzaman and Rahman ( 1991 ) made a comparative survey of pre and station denationalisation periods in the article titled. “Profitability Performance of Denationalized Banks- A Comparative Study of the Pre and Post Denationalization Periods. ” They Observed that the profitableness public presentation of Uttora Bank Limited and Rupali Bank Limited became unsatisfactory after denationalisation. But in the instance of Pubali Bank Limited. they observed a Decreasing tendency before denationalisation and increasing tendency after denationalisation. The restrictions of the paper are that. they had taken into consideration a really short period of three old ages before and three old ages after denationalisation of the two Bankss. They did non seek to happen out why net incomes of those denationalized Bankss ( Uttora. and Rupali Bank limted ) were falling. They used the variables like entire disbursals. entire income. net income and entire assets merely. They ignored other of import variables. such as sedimentations. progresss. figure of Bank subdivisions. figure if employees etc. So the survey was really limited and uncomplete.