Analysis and Discussion

Capital adequacy has come forth as one of the prominent indicators of the financial health of a banking system.
It is very useful for a bank to conserve & protect stakeholders confidence and preventing the bank from being bankrupt.
It reflects whether the bank has enough capital to bear unexpected losses arising in the future.

01. Capital Adequacy

1.1 CAPITAL ADEQUACY RATIO

Table 1.1
Capital Adequacy Ratio (%)
Serial No. Bank
2015 2014 2013 Average Rank
1 Standard Bank Limited 0.337 0.217 0.22 25.8 2
2 Brac Bank Limited 0.17 0.16 0.165 16.5 3
3 Uttara Bank Limited 0.268 0.273 0.263 26.8 1
4 Al Arafa Islami Bank Limited 0.002 0.001 0.001 0.133333 4
1.2 Debt Equity Ratio
Table 1.2
Debt Equity Ratio (Times)
Serial No. Bank
2015 2014 2013 Average Rank
1 Standard Bank Limited 0.098 0.345 0.431 29.13333 2
2 Brac Bank Limited 1.633 0.624 1.015 109.0667 4
3 Uttara Bank Limited 0.119 0.169 0.193 16.03333 1
4 Al Arafa Islami Bank Limited 0.234 0.536 0.73 50 3
1.3 Advance to Asset Ratio
Table 1.3
Advance /Assets Ratio (%)
Serial No. Bank
2015 2014 2013 Average Rank
1 Standard Bank Limited 0.841 0.845 0.858 84.8 1
2 Brac Bank Limited 0.703 0.712 0.703 70.6 3
3 Uttara Bank Limited 0.664 0.814 0.819 76.56667 2
4 Al Arafa Islami Bank Limited 0.006 0.008 0.725 24.63333 4
1.4 Govt. Securities to Total Investments Ratio
Table 1.4
Govt. Securities to Total Investments Ratio (%)
Serial No. Bank
2015 2014 2013 Average Rank
1 Standard Bank Limited 0.16 0.213 0.833 40.2 3
2 Brac Bank Limited 0.757 0.86 0.901 83.93333 2
3 Uttara Bank Limited 0.967 0.989 0.819 92.5 1
4 Al Arafa Islami Bank Limited 0.0394 0.049 0.0451 4.45 4
4.5 Composite Capital Adequacy
Table 1.5
CAR Debt Equity Advances/Assets
Serial No. Bank
% Rank Times Rank % Rank
1 Standard Bank Limited 25.8 2 29.13 2 84.8 1
 2 Brac Bank Limited 16.5 3 109.06 4 70.6 3
3 Uttara Bank Limited 26.8 1 16.03 1 76.57 2
4 Al Arafa Islami Bank Limited 0.13 4 50 3 24.63 4

For the composite capital adequacy ratio, Uttara Bank was ranked as number 1.
Uttara Bank had the highest CAR rating, highest debt rating (lower being higher), highest government security percen
The Standard Bank stood second, while Brac Bank stood third followed by Al-Arafah Islami Bank.

2. ASSET QUALITY

2.1 Net NPAs to Total Asset

Table 2.1
Net NPAs to Total Asset Ratio (%)
Serial No. Bank
2015 2014 2013 Average Rank
1 Standard Bank Limited 0.022 0.023 0.023 2.266667 2
2 Brac Bank Limited 0.615 0.557 0.553 57.5 4
3 Uttara Bank Limited 0.01 0.041 0.039 3 3
4 Al Arafa Islami Bank Limited 0.009 0.007 0.006 0.733333 1
2.2 Percentage Change in Net NPA
Table 2.2
Serial No. Percentage Change in Net NPA (%)
Bank
2015 2014 2013 Average Rank
1 Standard Bank Limited 0.037 0.097 0.689 27.43333 3
2 Brac Bank Limited 0.212 0.198 13.66667 2
3 Uttara Bank Limited -0.696 0.127 0.009 -18.6667 1
4 Al Arafa Islami Bank Limited 0.388 0.345 0.586 43.96667 4
2.3 Composite Asset Quality
Table 2.3
Net NPAs to Total % Change in Net Group Bank
Serial No. Bank Asset Ratio NPA
% Rank % Rank Avarage Rank
1 Standard Bank Limited 2.67 2 27.43 3 2.5 2.5
Brac Bank Limited 57.5 4 13.66 2 3 4
3 Uttara Bank Limited 3 3 -18.66 1 2 1
4 Al Arafa Islami Bank Limited 0.73 1 43.96 4 2.5 2.5

For the composite Asset quality, Uttara Bank ranked 1st, with the lowest percentage change in NPA.
and highest NPA to total asset ratio, followed by Brac bank at 2nd
and Standard bank at 3rd and Al Arafa bank at 4th.

3. MANAGEMENT EFFICIENCY

3.1 Total Advances to Total Deposit Ratio

Table 3.1
Serial No. Total Advances to Total Deposit Ratio (%)
Bank
Serial No.
Bank
2015 2014 2013 Average Rank
1 Standard Bank Limited 0.796 0.766 0.784 78.2 2
2 Brac Bank Limited 0.964 0.767 0.762 83.1 1
3 Uttara Bank Limited 0.674 0.649 0.582 63.5 3
4 Al Arafa Islami Bank Limited 0.41 0.318 0.496 40.8 4

3.2 Profit Per Employee Ratio

Table 3.2
Serial No. Profit per Employee (Lakhs)
Bank
2015 2014 2013 Average Rank
1 Standard Bank Limited 885918.5 654018.3 624862.9 721599.9 2
2 Brac Bank Limited 347824.5 303775.2 188152.7 279917.5 4
3 Uttara Bank Limited 401518.2 372482.9 347670.5 373890.5 3
4 Al Arafa Islami Bank Limited 790075.1 800325.9 859788.7 816729.9 1

3.3 Return on Equity

Table 3.3
Serial No. Return on Equity (%)
Bank
2015 2014 2013 Average Rank
1 Standard Bank Limited 0.125 0.104 0.093 10.73333 3
2 Brac Bank Limited 0.01 0.117 0.107 7.8 4
3 Uttara Bank Limited 0.13 0.114 0.12 12.13333 2
4 Al Arafa Islami Bank Limited 0.13 0.13 0.14 13.33333 1

Composite Management Efficiency

Table 3.4
Total Advances to
Total Deposit Ratio Profit per Employee
Serial No. Bank (%) Return on Equity (%)
% Rank Lakhs Rank % Rank
1 Standard Bank Limited 78.2 2 721600 2 1.73 3
2 Brac Bank Limited 83.1 1 279917 4 7.8 4
3 Uttara Bank Limited 63.5 3 373891 3 12.13 2
4 Al Arafa Islami Bank Limited 40.8 4 816730 1 13.33 1

In the composite management efficiency, the rank was headed by Al Arafa Islami Bank.
It had the lowest advances to deposit ratio, and highest profit per employee ratio, and highest return on equity.
Standard Bank followed in second position, with Uttara Bank at third and Brac at fourth position.

4.1 Operating Profit to Total Asset

Table 4.1
Serial No. Operating Profit to Total Asset (%)
Bank
2015 2014 2013 Average Rank
1 Standard Bank Limited 0.018 0.015 0.027 2 2
2 Brac Bank Limited 0.02 0.03 0.034 2.8 1
3 Uttara Bank Limited 0.014 0.02 0.02 1.8 3
 4 Al Arafa Islami Bank Limited 0.017 0.019 0.012 1.6 4

4.2 Net Profit to Total Asset

Table 4.2
Serial No. Net Profit to Total Asset (%)
Bank
2015 2014 2013 Average Rank
1 Standard Bank Limited 0.01 0.008 0.007 0.833333 4
2 Brac Bank Limited 0.01 0.01 0.007 0.9 2
3 Uttara Bank Limited 0.008 0.009 0.009 0.866667 3
4 Al Arafa Islami Bank Limited 0.009 0.01 0.012 1.033333 1

4.3 Interest Income to Total Asset

Table 4.3
Serial No. Interest Income to Total Asset (%)
Bank
2015 2014 2013 Average Rank
1 Standard Bank Limited 0.079 0.097 0.1 9.2 1
2 Brac Bank Limited 0.077 0.082 0.103 8.733333 3
3 Uttara Bank Limited 0.103 0.067 0.069 7.966667 4
4 Al Arafa Islami Bank Limited 0.08 0.092 0.099 9.033333 2

4.4 Net Interest Margin

Table 4.4
Serial No. Net Interest Margin (%)
Bank
2015 2014 2013 Average Rank
1 Standard Bank Limited 0.02 0.025 0.019 2.133333 1
2 Brac Bank Limited 0.043 0.037 0.038 0.039333 2
3 Uttara Bank Limited 0.038 0.015 0.007 0.02 4
4 Al Arafa Islami Bank Limited 0.029 0.03 0.028 0.029 3

Composite Earning Quality

Table 4.5
Operating Profit to Net Profit to Total Interest Income to
Serial No. Bank Total Asset (%) Asset (%) Total Asset (%)
% Rank % Rank % Rank
1 Standard Bank Limited 2 2 0.83 4 9.2 1
2 Brac Bank Limited 2.8 1 0.9 2 8.73 3
3 Uttara Bank Limited 1.8 3 0.86 3 7.96 4
4 Al Arafa Islami Bank Limited 1.6 4 1.03 1 9.03 2

For the composite earning quality, Standard Bank and Brac Bank both came at first position,
where Brac Bank was ranked 1 with highest operating profit to total asset ratio and subsequent rank 2 on Net interest
, while Standard Bank ranked 1 in Interest income to total asset ratio. Al Arafa Bank stood 3rd, while Uttara bank stoo

5. LIQUIDITY
5.1 Liquid Asset to Total Assets
 Table 5.1
Serial No. Liquid Asset to Total Assets (%)
Bank
2015 2014 2013 Average Rank
1 Standard Bank Limited 0.226 0.248 0.266 24.66667 2
2 Brac Bank Limited 0.245 0.228 0.302 25.83333 1
3 Uttara Bank Limited 0.139 0.147 0.127 13.76667 3
4 Al Arafa Islami Bank Limited 0.004 0.003 0.004 0.366667 4

5.2 Liquid Asset to Total Deposit

Table 5.2
Serial No. Liquid Asset to Total Deposit (%)
Bank
2015 2014 2013 Average Rank
1 Standard Bank Limited 0.278 0.304 0.33 30.4 2
2 Brac Bank Limited 0.383 0.315 0.416 37.13333 1
3 Uttara Bank Limited 0.212 0.182 0.151 18.16667 3
4 Al Arafa Islami Bank Limited 0.006 0.004 0.005 0.5 4

Composite Liquidity
Table 5.3
Liquid Asset to Total Liquid Asset to Total Group Bank
Serial No. Bank Assets Deposit
% Rank % Rank Avarage Rank
1 Standard Bank Limited 24.66 2 30.4 2 2 2
2 Brac Bank Limited 25.83 1 37.13 1 1 1
3 Uttara Bank Limited 13.76 3 18.16 3 3 3
4 Al Arafa Islami Bank Limited 0.36 4 0.5 4 4 3

In composite liquidity ratio, Brac Bank stood 1st, followed by standard bank,
and Al Arafa and Uttara bank at joint 3rd.
Brac had the highest liquid asset to total deposit ratio and highest liquid asset to to total asset ratio.

Composite Ranking (overall performance ) Group Bank

Table 06
Serial No. Bank C A M E L Average
1 Standard Bank Limited 2 2.5 2 1.5 2 2
2 Brac Bank Limited 3 4 4 1.5 1 2.7
3 Uttara Bank Limited 1 1 3 4 3 2.4
4 Al Arafa Islami Bank Limited 4 2.5 1 3 3 2.7

In the composite CAMEL ratio, Standard Bank stood 1st with the lowest average score,
followed by Uttara Bank at 2nd position, while bith Brac Bank and Al Arafa Islami Bank stood at joint third position.
anking system.
nk from being bankrupt.

Govt. Securities Group Rank

% Rank Avarage Rank
40.2 3 2 2
 83.93 2 3 3
92.5 1 1.25 1
4.45 4 3.75 4

government security percentage, and second highest advances to asset ratio.

 Group Bank

Avarage Rank
2.333333 2
3 4
2.666667 3
2 1

hest return on equity.

 Net Interest Margin Group Bank
(%)
% Rank Avarage Rank
2.13 1 2 1.5
0.039 2 2 1.5
0.2 4 3.5 4
0.029 3 2.5 3

quent rank 2 on Net interest Margin,

d 3rd, while Uttara bank stood 4th.
 Rank
1
3.5
2
3.5

oint third position.