IDEAS home Printed from https://ideas.repec.org/a/aif/journl/v3y2019i6p118-126.html
   My bibliography  Save this article

A comparative Analysis of liquidity, solvency and profitability of State-owned Commercial Banks (SCBs) and Private Commercial Banks (PCBs) of Bangladesh

Author

Listed:
  • Mohammad Main Uddin
  • Rabiul Islam
  • Md. Jamal Uddin
  • Md. Mostafizur Rahman
  • Mst. Helen Parvin

Abstract

This study based on analysis of liquidity, solvency and profitability between state owned commercial banks (SCBs) and private commercial banks (PCBs). To obtain the empirical results secondary data is used from the annual reports of the banks. A financial statement analysis technique especially ratio analysis is applied. The analysis is shown by different tables and graphs and interpretations are made. Under this study liquidity ratios, profitability ratios and profitability ratios are drawn. After the analysis of liquidity SCBs are higher than PCBs. Under quick ratio PCBs is higher than SCBs. Cash flows from operations ratio had a fluctuating mode in all the banks from 2013-2017 but in 2017 PCBs are better than SCBs. Under solvency ratio PCBs in better position than SCBs. Under profitability ratio the gross profit margin of PCBs is higher than SCBs, in case of net profit margin it’s fluctuating year to year and banks to banks. In case of earnings per share SCBs is far better than the PCBs. It is observed that the overall performance of commercial banks is comparatively better than state owned commercial banks. The main limitation of this study is small sample size that is only two state owned commercial banks and two private commercial banks are taken as sample. And the ratio analysis is conducted based on only 5 years’ data. This study emphasis only quantitative variables but only quantitative variables are not adequate to build an overall measurement of financial presentation. To know the liquidity, solvency, profitability of the banks, future studies may be conducted in the same contest by comparing activities of foreign commercial banks, specialized banks and banks that have started their journey currently.

Suggested Citation

  • Mohammad Main Uddin & Rabiul Islam & Md. Jamal Uddin & Md. Mostafizur Rahman & Mst. Helen Parvin, 2019. "A comparative Analysis of liquidity, solvency and profitability of State-owned Commercial Banks (SCBs) and Private Commercial Banks (PCBs) of Bangladesh," International Journal of Science and Business, IJSAB International, vol. 3(6), pages 118-126.
    • Handle: RePEc:aif:journl:v:3:y:2019:i:6:p:118-126
    as

    Download full text from publisher

    File URL: https://ijsab.com/wp-content/uploads/421.pdf
    Download Restriction: no
    File URL: https://ijsab.com/volume-3-issue-6/2483
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Mukdad Ibrahim, 2015. "A Comparative Study of Financial Performance between Conventional and Islamic Banking in United Arab Emirates," International Journal of Economics and Financial Issues, Econjournals, vol. 5(4), pages 868-874.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sa'adah Yuliana & Suhel & Abdul Bashir, 2017. "Comparative Analysis of Profit Sharing Financing Between Islamic Banks (BUS) and Islamic Rural Bank (BPRS) in Indonesia," International Journal of Economics and Financial Issues, Econjournals, vol. 7(2), pages 266-270.
    2. Dinc, Yusuf, 2017. "The Effect of Retail Loans on Bank Profitability A Comparative Empirical Analysis," MPRA Paper 85332, University Library of Munich, Germany.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aif:journl:v:3:y:2019:i:6:p:118-126. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Farjana Rahman (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.