Financial Performance of Bangladesh Krishi Bank (BKB): An Analysis for the Period of 2006-2015

M. Samiul Islam, Md. Rais Uddin Mian and Mohammad Yousuf Ali

Bangladesh Journal of Agricultural Economics, 2024, vol. 44, issue 01&2

Abstract: The study has been designed to diagnose the financial soundness of BKB through the statement of changes in the financial position and ratio analysis for the period of 2006-2015. Keeping in view the objectives, secondary data of last one decade were collected from the Head Office of BKB through proper channel. Tabular and descriptive techniques were used to analyze the data. The study identified both annual interest income and total operating earnings as highly fluctuating. In addition, net profits after and before tax conditions were also unstable over the investigation period. Besides, net interest income and total operating income of BKB were in unsatisfactory situation. Changes in balance sheet items exhibited that all types of assets and liabilities were in unstable condition over the study period. Credit relation of BKB with clients was not satisfactory and operation of current liabilities was inefficient. It was found in some cases that BKB was facing a frustrating situation to finance its fixed assets. Moreover, operating ratio, gross profit margin, and fixed capital ratio were highly fluctuating or unstable over the decade. But, it was stated by fixed asset turnover ratio that BKB’s management was more or less efficient in utilization of fixed assets. The current ratio identified that BKB is holding of more current asset and cash than conventional requirement to meet its current liabilities as well. So, it was concluded that the overall performance of the BKB was not entirely satisfactory.

Keywords: Financial; Economics (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:ags:bdbjaf:348164

DOI: 10.22004/ag.econ.348164

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