Global Journal of Commerce & Management Perspective
Open Access

Abstract

Profitability Scenario of Public Sector Development Banks In Bangladesh

Dr. S. M Rabiul Alam

Bangladesh Shilpa Bank (BSB) and Bangladesh Shilpa Rin Sangstha (BSRS) were the two public sector development banks in Bangladesh. The profitability management of public sector development banks in Bangladesh was vey inefficient and poor during the ten years period from 1999-2009. The key financial indicators in the annual reports also demonstrate the same scenario of the selected development banks in Bangladesh. It is evident from the analysis and interpretation of collected information that the profitability performance of BSRS was somewhat better than BSB during the period of review. However, the profitability performance of BSRS (avg. 1.5 percent) was discouraging like BSB (avg. 0.14 percent). This situation was due to high burden ratio than spread ratio. In both the cases, the growth in burden ratio was more pronounced than spread ratio leaving a very low or negative profitability ratio. Spread to working fund ratio was too low in both the cases.