Impact of bank-specific internal factors on the profitability of state-owned commercial banks in Bangladesh

Indian Journal of Commerce and Management Studies

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Field Value
 
Title Impact of bank-specific internal factors on the profitability of state-owned commercial banks in Bangladesh
 
Creator Ahsan Ullah, Md
Nath, Subrata Deb
Biswas, Munna Rani
 
Subject Banking
Impact, internal factors, external factors, profitability, commercial banks
 
Description Purpose of the Research: The aim of this study is to identify the bank-specific internal factors that affect the profitability of state owned commercial banks of Bangladesh.Methodology:  The study applied explanatory research design and carried out based on secondary data only. The main source of data is annual reports (Audited Financial Statements) of the respective banks for the period of 2014 to 2018. Multiple Regression Model Descriptive Statistics are used for data analysis which is being done through MS Excel 2013 version. In Multiple Regression Model considered ROA as dependent variable and internal factors as an independent variable. VIF test is also employed to check the Multicollinearity problem.Findings: The regression analysis reveals that independent variables (bank- specific internal factors) of the banks are important enough to explain the variation of the dependent variable (ROA) of the study. Moreover, the results show that there is a significant and negative relationship between ROA and NPL ratio liquidity ratio. On the other hand, ROA and bank size have significant positive relationship. But leverage ratio and solvency ratio have statistically insignificant relationship with ROA. So, it is said that among five internal factors, NPL, liquidity and bank size are the most important bank specific internal factors that affect the profitability of banks.Implications: This study shall provide the regulators, managements, depositors and other concerned parties an important insight about State Owned Commercial Banks profitability and enhance the performance thereby.Originality: This study is a unique one in Bangladesh perspective because there is hardly any study about effect of bank-specific internal factors on the profitability of State Owned Commercial Banks of Bangladesh
 
Publisher Indian Journal of Commerce and Management Studies
 
Contributor
 
Date 2020-05-31
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier http://scholarshub.net/index.php/ijcms/article/view/517
 
Source Indian Journal of Commerce and Management Studies; Vol 11, No 2 (2020)
22295674
22490310
 
Language eng
 
Relation http://scholarshub.net/index.php/ijcms/article/view/517/505
 
Rights Copyright (c) 2020 Indian Journal of Commerce and Management Studies
https://creativecommons.org/licenses/by-sa/4.0
 

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