Performance Appraisal of Prime Bank Limited.

Abstract

Banking is a business, which is run on the confidence and trust of people. This confidence enjoyed by banks and enables the bank to mobilize funds from various sources. The main function of bank may broadly be divided into two categories. firstly, borrowing money from public by accepting deposits and secondly, lending the money to public for development of trade, commerce, agriculture and industry. The profitability of a bank always depends on the efficient management of fund and exploring the genuine avenues in which its resources are invested to produce the maximum income. But everything is finally evaluated by the performance of the bank. This is why performance evaluation of a bank is very crucial in the process of fmance. Being a student of Finance, my focus was more on performance appraisal of the bank based on the financial indicators. In this report different indicators of performance evaluation are been described on the basis of which the position of Prime bank can easily be determined. I have considered their capital structure, total asset, investment, net income, dividend, EPS, income expenditure ratio, Market rice per share and some other indicators to evaluate the performance of PBL. Some of them showed satisfactory results where as some others did not. I also tried to compare with some of the indicators of four banks including PBL. In this case PBL showed a good performance compared to rest of the three banks.Though PSL is one of the leading banks among the entire private banks still it has some shortcomings. Some of those Problems and their solutions are also been presented in this report.