Abstract:
It analyzes how inflation affects the profits of the banking sector of Bangladesh. The goal is
financial stability. Using secondary source data (annual reports, financial reports, economic
publications), this study employs a quantitative methodology to examine the impact of inflation
on interest rate, loan default ratios, and bank performance variables. It helps in the calculation of
key profitability measures like ROA, ROE, NPM, OPM, EPS, GPM, Degree of asset Utilization
under different Situations of bank Profitability and Inflation. We find that inflation has a doubleedged effect on profitability: moderate inflation boosts profitability through interest rate effects
while high inflation reduces it by lower purchasing power of consumers, rise in loan default and
shrink in profit margin. To mitigate the risk of inflationary pressure, bankers can adjust their risk
management practices through the creation of stress testing policies that take into account the
potential impact of inflation on cost of capital and asset quality. The research at hand offers useful
information that can facilitate banking institutions and policy makers’ decision making. In other
words, this will enhance financial resilience from economic troubles by synthesizing and assessing
macroeconomic factors on bank performance.
There are six sections to this report. This report's introduction is covered in the first chapter. The
study's introduction, origin, scope, objectives, methodology, data analysis and limitations are all
covered in Chapter 1.
The background, mission, vision, aims, objectives, goods, services, integrity, and promises of
Prime Bank PLC are all covered in detail in Chapter 2.
In Chapter 3, the theoretical framework is presented with an emphasis on profitability metrics like
ROA, ROE, NPM, OPM, EPS, GPM and DAU.
Chapter 4 provides a financial study of these metrics for a few chosen banks.
Chapter 5 emphasizes learning from internships, assignments, and real-world experiences.
Finally, chapter six indicates some recommendations and findings for the financial analysis are
provided in the final chapter, which also contains all of the conclusions.
