Performance of Dhaka Bank Limited in comparison with 2nd generation banks and BASEL-III Accord

Abstract

The objective of this report is to study the performance of Dhaka Bank Limited, a second-generation bank (Prime, Eastern, Southeast and NCC Bank) of Bangladesh, and paralleling with other second-generation banks and Basel III accord, which is prescribed by Basel committee for Banking Regulation, to appraise where Dhaka Bank Limited standpoints. All the financial data used for calculating has extracted from respective banks annual report. In order to evaluate the performance and ranking the banks, various financial ratios have been calculated for the CAMEL rating method and standardize score has been used to rank them. Weight allocation for each of the CAMEL element is entirely subjective. Result shows among all these five banks Eastern Bank Limited is the top performer and Southeast Bank Limited is the bottom performer. Dhaka Bank Limited is an average performing bank as the result shows. Dhaka Bank Limited has approximately 4.99% non-performing against their total loans and advance, their expense per employee is higher than income per employee, although DBL is increasing their investment but income from investment is declining year on year, their non-interest income is account for more than half of total operating income, liquidity coverage ratio is lowest among the five banks. However, overall score of all the banks is very close to each other. This implies that the banks are competing closely within tight regulation.