Eastern Bank Analysis

EXECUTIVE SUMMARY

 The goal of Eastern Bank Limited was to reah !anking s"stem more losel" to the general #eo#le$ In addition% this made this !ank &# to this time$ 'ow Eastern Bank Limited is an im#ro(ed and moderni)ed !ank where the !anking s"stem has !een easier than the ontin&ing !anking s"stem$ *irst% I looked at the o(er(iew of the !ank$  Then% in the literat&re literat&re re(iew setion% I look at some +nanial data regar egardi ding ng the the #erf #erfor orma man ne e of East Easter ern n Bank Bank and and some some of the the most most ommon terminologies of !anking setor$ 'e,t% I look into the anal"sis #art$ In this setion% I &se ratio anal"sis to e(al&ate the #erformane and om#are it with another om#etitor !ank named United Commerial Bank Limited -UCBL.$ /ere ere

I

&se

some ome

om ommon

ratio atio

re0e e0eti ting ng

!anki anking ng

#erfo erforrmane ane

o!ser(ation for e(al&ation o(er the #eriod of 122341255$ The anal"sis is done thro&gh inter#retation of the ratios fo&nd$  The ne,t #art onsists of some reommendations reommendations a!o&t how to im#ro(e im#ro(e the the ond ondit itio ions ns of the the !ank !ank in term terms s of li6& li6&id idit it"% "% le(e le(era rage ge%% e7i e7ien en" "%% #ro+ta!ilit" and market #osition$ At last% I onl&de !" dis&ssing the o(erall #erformane e(al&ation of the !ank$

1 | 8age

I'TR9:UCTI9' Banking ind&str" is one of the #ri(ate setors that ha(e !een attrating in(estors so m&h to in(est in the +nanial market$ To ens&re eonomi sta! st a!ili ilit" t"%% an and d to de de(e (elo lo# # th the e r& r&ra rall an and d &r &r!a !an n ar area eas s wi with th ne nee ess ssar ar" " +nan +n ani ial al

assi as sist stan ane e%%

go(e go (errnm nmen entt

nati na tion onal ali) i)ed ed

omm o mmer eri ial al

!ank !a nkin ing$ g$

8re(io&sl" onl" go(ernment !anks were here to ser(e the +nanial needs of ons&mers% !&t later #ri(ate !anks started dominating the market with lots of !ranhes and man" ser(ies all o(er the o&ntr"$ The" ha(e ;oined the !anking ind&str" to ser(e the ommon and or#orate setor and to enhane their #ro+ta!ilit" in the eonom" eonom"$$ Bangladesh Bank has reated a fa(ora!le en(ironment for the #ri(ate !anking setor$ It has eno&raged in(estments in !anking in a wa" that most of the #ri(ate !anks ha(e !een r&nning their o#eration #ro+ta!l"$ R&les and reg&lations are im#lemented !" the go(ernment to ens&re ao&nta!ilit" of the !anks% and also to ease the #roess of the &stomers to deal with !anking ati(ities$

Among Am ong so ma man" n" do domes mesti ti and m& m<i ltinat nation ional al !an !anks ks o# o#era eratin ting g list listed ed in :haka Stok e,hange I ha(e randoml" seleted 8rime Bank as the !ank for m" anal"sis and Eastern Bank Ltd as its om#etitor$ 8rime Bank Ltd$ has !een esta!lished in the #ri(ate setor to #ro(ide all !anking ser(ies and +nanial ser(ies to failitate Bangladeshi #eo#le$ The Bank o