http://ar.cou.ac.bd:8080/xmlui/handle/123456789/392 Sun, 06 Sep 2026 22:59:12 GMT 2026-09-06T22:59:12Z http://ar.cou.ac.bd:8080/xmlui/handle/123456789/393 A Comparative Study of Profitability Performance of Selected Private Commercial Banks in Bangladesh Shahajahan, Md. This study examines the profitability performance of selected private commercial banks in Bangladesh, with a particular focus on identifying the key determinants influencing financial performance. Profitability is measured using Return on Assets (ROA), while explanatory variables include financial leverage ratio (FLR), loan loss provision (LLP), liquidity ratio (LQR), cost-to income ratio (CIR), net interest margin (NIM), and bank size. The analysis is based on panel data comprising 96 observations, and multiple econometric techniques have been employed, including Ordinary Least Squares (OLS), Fixed Effects, and Random Effects models. Diagnostic tests such as the Variance Inflation Factor (VIF), Breusch Pagan test, Wooldridge test, and Hausman test were conducted to ensure the robustness and validity of the results. The Hausman test suggests that the Random Effects model is the most appropriate for this study. The empirical findings reveal that financial leverage ratio (FLR) and loan loss provision (LLP) have a statistically significant and negative impact on profitability across all models, indicating that higher leverage and increased credit risk adversely affect bank performance. Similarly, the cost-to-income ratio (CIR) shows a negative relationship with profitability, implying that operational inefficiency reduces overall financial performance. Net interest margin (NIM) also exhibits a negative effect in certain models, suggesting inefficiencies in interest income management. On the other hand, liquidity ratio (LQR) does not show a significant impact on profitability, indicating that maintaining liquidity alone does not necessarily enhance financial performance. Bank size demonstrates a negative but statistically insignificant relationship in the final model, suggesting that larger bank size does not guarantee higher profitability in the context of Bangladesh. The model explains approximately 48% to 54% of the variation in profitability, indicating a moderate explanatory power. Diagnostic results confirm the absence of multicollinearity and ii heteroskedasticity issues, although autocorrelation was detected and addressed using robust estimation techniques. In conclusion, the study highlights that efficient risk management, cost control, and prudent lending practices are critical for improving the profitability of private commercial banks in Bangladesh. The findings provide valuable insights for bank management, policymakers, and stakeholders to formulate strategies aimed at enhancing financial performance and ensuring sustainable growth in the banking sector. Mon, 20 Apr 2026 00:00:00 GMT http://ar.cou.ac.bd:8080/xmlui/handle/123456789/393 2026-04-20T00:00:00Z