Comparative Performance of Old and New Generation Private Commercial Banks in Bangladesh

Abstract

There is no denying the fact that private commercial banking sector in Bangladesh is continuing to strengthen its position by expanding its core business activities. The Project paper is a comprehensive study of the private commercial banking Industry of our country. For this purpose, I have selected two private commercial banks of the country. One is an old generation bank which is the first private sector bank of Bangladesh named 'Arab Bangladesh Bank Limited' (AB Bank) and the other is a new generation bank named 'Mercantile Bank Limited' . The old generation private bank, AB Bank Limited has spread its operation throughout the country and thus provided its banking services to almost all classes of people. Being a new generation private bank, Mercantile Bank Limited could not yet spread that much but have occupied new computerized system of banking like online banking etc. Both the banks believe that building strong relationship with all stakeholders, customers, is crucial for their growth and prosperity. Technology and competition have made it vital for them to forge stronger bond with customers to meet their need at their convenience. They put emphasis on meeting this continuous challenge of managing relationship. Their significant achievements over the past years both financial and strategic are solid indications of their strength and potential. They have effective corporate governance practices and efficient sales force which are essential to achieving and marinating public trust and confidence in the banking sector, which are critical to the proper functioning of the banking sector and economy as a whole. Through the report, I tried to find out the efficiency and effectiveness of their performance in banking. So far they believe that they are well positioned to become a more important partner with their existing clients, to win more share of new business and to achieve their goal of generating positive operating leverage on a consistent basis. Looking forward, they remain confident that they have the right people and right strategies in place to maintain their growth and the bank will continue to successfully deliver excellent results, meeting their financial and operational objectives as well as the needs of their customers and their people.