Too many banks

Merge weak banks with strong ones: analysts

In a burgeoning yet small economy of Bangladesh, there are an immense amount of business activities. To support these businesses, a total of 56 banks are in operation in the country. Fifty Six. Naturally, these banks are not large scale banks, which means their profit margin is limited. Consequentially, to survive in the banking business, profit making efforts are exerted: through high interest rates. In a
banking reforms forum, this fact was stated and many attested to having too many banks in the country.

Trudging State Banks

State banks pass hard times as loan growth stalls

After the recent concern over the performance of State owned banks, it seems that this type is still facing similar waves of hurdles. The Advance-to-deposit ratio (ADR), indicating how much loaned out to the amount deposited, is down to below 52% for Agrani, BASIC, Janata, Rupali, BDBL, and Sonali banks. These State owned banks, thus cannot hope to earn as they expected. All of the other banking types have higher ADR. 39 Commercial banks had over 76% ADR, 9 foreign banks had close to 60% and Islami banks had over 80% as of August 87.