Analysing the Impact of Capital Structure on Financial Performance: An Empirical Study of State-owned Commercial Banks in Bangladesh

Abstract

This report focuses on the impact of capital structure on the profitability of state-owned commercial banks in Bangladesh. State-owned commercial banks play a vital role in the banking industry by engaging in genuine commercial activities with strong performance. This study analyzes data from the past ten years of these banks to understand how capital structure affects their profitability. The study is centered on examining the relationship between capital structure and financial performance of state-owned commercial banks. In Chapter 1, I explain the reasons behind choosing this topic and outline the objectives and scope of the study. Additionally, I discuss the significance of the research and the limitations encountered during the work. Chapter 2 reviews previous studies related to this topic, identifying gaps in the existing literature. In Chapter 3, I describe the sample size, the variables included, the types of data used, and the software tools employed for analysis. Chapter 4 provides an overview of Sonali Bank Limited, detailing its history, vision, mission, origin, and key objectives. Chapter 5 covers theoretical concepts related to capital structure and profitability. In Chapter 6, I conduct statistical analyses and offer interpretations of the results. Finally, in Chapter 7, I present recommendations for the bank to improve profitability and efficiency, followed by the conclusion of the report