Performance analysis of selective private commercial banks of Bangladesh through CAMEL rating

Abstract

To analyze the comparative financial position and an overall assessment of three private commercial banks (The City Bank Limited, Eastern Bank Limited and Jamuna Bank Limited) of Bangladesh CAMEL rating is used in this study. Among the three banks the capital adequacy of EBL is the most impressive whereas the ROE is the highest in JBL. Then the asset quality of EBL is the best as it has the least portion of non-performing loans (NPLs). The management capacity of The City Bank Limited is the highest in terms of income per employee and on the contrary the expense per employee is the highest in EBL. The earnings ability and liquidity ratios indicate that the best performing bank is EBL among the three banks.