Financial Performance Analysis of Janata Bank PLC

Abstract

This study is an endeavor to conduct with the objective of analyzing the financial performances of Janata Bank PLC. The main purpose of this paper is to find out the real scenario of financial performances of JBL through a comparative analysis.This report examines the financial performances of five years from 2017 to 2021 of Janata Bank PLC. Annual reports and other disclosures of JBL published in its website are used as the main source of data. Besides, some information directly collected from Savar Corporate Branch and some disclosures published by Bangladesh Bank are also used in this report. This report has basically been conducted through Ratio Analysis & Comparative analysis. In ratio analysis, five types of ratiohave been used. They are Liquidity ratio, Profitability ratio, Leverage ratio, Management efficiency and activity ratio and Credit risk ratio. The actual scenario of financial performances over the years of JBPLC has critically been analyzed by comparing with other peer Institutions. For measuring and comparing financial performances on basis of capital adequacy, asset quality, management capacity, earnings ability and liquidity of JBPLC and other banks, CAMEL rating analysis has been used. In this report, I have found that the financial performances of JBL are quite well compared with other banks. Operating profit of JBL has been increasing gradually. And the net profit of JBPLC has been also increasing compared with the last few consecutive years. I have also found that the operating expenses and NPL of JBPLC have been increasing consecutively over the last few years. This increasing trend of operating expenses and NPL indicate to the lack of management inefficacy JBPLC. I have suggested some remedial measures for JBPLC including taking new policies and strategies to reduce classified loan as well as to increase overall performing assets, investing in thrust sector like SME, adapting green banking activities and ensuring facilities of educational and training programs for the employee to overcome this difficult situation. Besides, the management should be more concerned about proper monitoring on recovery of classified loans and advances.