Impact of Covid-19 on profitability and efficiency of Private Commercial Banks (PCBs) through the lens of Bank Asia Limited

Abstract

This internship report wishes to analyze the overall situation of the banking sector during Covid-19 pandemic. Relevant parameters are used to streamline objective judgments. Those judgments being that even though we are currently enduring a pandemic, there is a positive growth in the amount of loans for most banks. However, all of the banks’ interest income had reduced significantly by the ongoing pandemic due to single digit interest rate, inefficiency and unwillingness of most banks to give out fresh loans in 2020. Amazingly, there is still a positive growth in the amount of deposit for most. It is wise to state that most banks saw a rise in deposits even though interest offered was very minimal due to depositors’ perception to save more money during the ongoing pandemic. All of the banks’ interest expense had reduced significantly. Most PCBs increased their investment portfolio with flying colors. All the banks reported a negative growth in their operating profit September 2020.