http://ar.cou.ac.bd:8080/xmlui/handle/123456789/383 2026-09-06T23:00:03Z http://ar.cou.ac.bd:8080/xmlui/handle/123456789/384 Determinants of Banks Profitability: An Analysis on Selected State-owned and Private Banks in Bangladesh Quasem, Kashpiya This report examines the determinants of profitability for 12 selected private commercial banks (PCBs) in Bangladesh, namely UCB, IFIC, City, BRAC, Dhaka Bank, Bank Asia, NCC, Mutual Trust, Mercantile, Dutch-Bangla, Prime, and Eastern Bank. The study covers a 10-year period from 2015 to 2024, utilizing a total of 60 observations through a quantitative research design. The core objective of the study was to analyze how bank-specific factors (NPL, Size, and LDR) and macroeconomic factors (GDP Growth and Remittance) influence bank performance, measured by Return on Assets (ROA). Using STATA to perform Pooled OLS and Random Effects regression with robust standard errors, the empirical findings reveal critical insights into the private banking sector. The results indicate that Non-Performing Loans (NPL) and Bank Size have a significant negative impact on ROA. This suggests that rising credit risks and high operational costs associated with large asset bases are the primary challenges to profitability for these private banks. Conversely, the Loan-to-Deposit Ratio (LDR), GDP Growth, and Remittance inflows were found to have a positive correlation with profitability, highlighting the importance of efficient lending and a stable macroeconomic environment. Based on these findings, the report recommends that private banks prioritize asset quality over aggressive asset expansion. Strengthening credit appraisal systems to curb NPLs and adopting digital banking solutions to optimize operational costs are essential. 2026-04-20T00:00:00Z