Camel rating analysis of Eastern Bank Limited and United Commercial Bank Limited

Abstract

In the executive summary section of the present internship report, a discussion of Eastern Bank PLC (EBL) is presented on a financial ratio basis, as reported under the CAMEL rating table, for comparison with industry and competitor averages. The internship held at EBL aimed to assess the bank's financial health, liquidity, profitability, capital adequacy, asset quality, and management. Through this analysis, we aimed to understand the performance of EBL and its position compared to other competing banks in Bangladesh. The main strengths of EBL identified in this report are a protective brand name, creative and diverse digital banking services, and a range of services offered to clients across various categories. The bank's performance is impressive, particularly in terms of profitability and capital adequacy, consistently outperforming the market. In addition, the customer-focused and digital transformation orientation, i.e., the adoption of payment wearables and the development of improved online banking services, has been beneficial in helping the firm significantly enhance its customer satisfaction rates and competitiveness. However, the report identifies weaknesses, such as the overall higher leveraged ratio of EBL, which puts the bank at financial risk and results in relatively higher operational costs compared to other competitors. The bank is also not responsive to the dynamically shifting trends of the digital-based banking in the financial sector, especially in some of its conventional banking networks. The report also guides the opportunities that EBL has in the areas of fintech market expansion, growing financial inclusion, and leveraging strategic partnerships. Nevertheless, it also discusses possible threats that may include intense competition, regulations, and an increase in cybersecurity risks. To sum up, EBL can maintain its competitive advantage by adhering to the principles of innovation, establishing systemic efficiency, and adapting to the evolving banking environment. The report recommends ways to improve the bank's financial position and enhance its market position.