Use of CAMEL rating framework: a comparative performance evaluation of selected Bangladeshi public, private and foreign commercial banks

Abstract

Al- Arafah Islami Bank Ltd is an Islamic shariah based commercial bank in Bangladesh. It was listed as a Private limited company and registered on June, 1995 and listed in DSE in 1998. It started its Banking operation on 27th September 1995. Currently this bank has 182 branches of which 25 authorized dealers throughout the country with 3.682 employees (according to 31st December, 2018 update). AIBL has a objective that is achieving success in life here & hereafter following the way directed by the Holy Quran. The main idea of AIBL is to directing banking activities in accordance with Islamic Shariah where profit is the alternative of interest. AIBL introduce profit-loss distribution products to the customer which are getting more popular day by day. I was appointed in Investment department by AIBL VIP Road Branch Manager, Executive Vice President Engr Md. Idris Ali. Being an intern, I got a chance to gain knowledge on the investment products provided by AIBL. Islami Banking System is becoming more and more popular now a days due to the peoples irrespective of nations, religious. I am very happy to do my internship report on CAMEL rating as it is an international rating standard for banks. This report has been discussed in few chapters- the first chapter, I have given a brief of my internship experience, observation and recommendation. In second chapter, I have given introduction of AIBL including objectives, methodology, limitations of my report and industry and competitive analysis. Moreover, in third chapter I have given the outlook of Bangladesh banking industry, its performance, regulations, supervisions and banking system structer. Lastly, in chapter four, I have given a overview of selected banks and the analysis along with interpretation, provide CAMEL rating, I conclude with recommendation from my overall analysis.