Analysis of Bank Asia Limited, BRAC Bank Limited, and Eastern Bank Limited based on CAMELS rating

Abstract

The primary objective of this research is to assess the effectiveness of the CAMELS rating system in assessing the financial performance and standing of the banking sector in Bangladesh, with a particular emphasis on Bank Asia Limited (BAL). Three of the nation's most well-known banks, Eastern Bank Limited (EBL), BRAC Bank Limited (BBL), and Bank Asia Limited (BAL), have had their CAMELS ratings thoroughly examined. The examination offers a thorough comparison and spans the previous three years, i.e., 2020, 2021, and 2022. There were a few reasons why I opted for BRAC Bank Limited (BBL) and Eastern Bank Limited (EBL) to compare with Bank Asia Limited (BAL). For instance, the fact that the financial information and annual reports for the years 2020, 2021 and 2022 were easily accessible that enabled me to effectively calculate the CAMELS rating measures for these banks. Moreover, all these three banks are located in the same zone at Elephant Road. BRAC Bank Limited’s branch and Eastern Bank Limited’s ATM booth are just opposite and beside Bank Asia Limited respectively. Moreover, all these banks have their origin in Bangladesh which also came into play for choosing BRAC Bank Limited and Eastern Bank Limited. I also got approval of my on-site supervisor after consulting with him about my choice of these banks. Three chapters make up the report's structure. The first chapter contains first-hand accounts of the student's internship experience, including suggestions for future internships, obstacles encountered, benefits received, and contributions to the company, all of which have greatly enabled me experience the real-life banking sector up close along with allowing me implement my theoretical knowledge where possible. The second chapter explores organizational factors, providing information on finance and accounting procedures, operations management, marketing and management strategies, industry and competitive analysis, and corporate profile. In short, chapter 2 is a summary of Bank Asia Limited. Working on this chapter has greatly enlightened me about my internship workplace. The report's major focus, the third chapter, provides the analysis and key findings. It offers a thorough analysis of the CAMELS rating, explaining its relevance and growing worldwide significance. This chapter describes the elements that make up the CAMELS rating system and shows the computation of several indicators contained in the term CAMELS, along with viii extensive comparisons between the three financial institutions that would be helpful for bank regulators, potential investors and customers. In conclusion, the internship experience at Bank Asia Limited has been a huge learning experience for me. And working on this internship report simultaneously, which is my final prerequisite to the completion of my BBA degree, has been equally worthwhile