Analyzing the Impact of Non-Performing Loan on Profitability: A Study On Janata Bank PLC

Abstract

Janata Bank PLC is one of the largest state owned commercial bank in Bangladesh. Janata Bank PLC operates over 900 branches across all 64 districts of Bangladesh, making it one of the most accessible banks in the country. This widespread network ensures that customers in both urban and rural areas can access banking services easily. The bank also has a presence in the United Arab Emirates, catering to the Bangladeshi diaspora. This extensive reach is amajor advantage for customers needing consistent service across different regions, though the sheer size of the network can sometimes mean variability in branch facilities and service levels. Within Dhaka, Janata Bank has over 100 branches, including key locations like Farmgate, Uttara Model Town, Topkhana Road, and Motijheel. This dense coverage in the capital city ensures that individuals and businesses have multiple options for convenient banking. The advantage here is proximity and choice, though some central branches may experience higher customer traffic, potentially affecting wait times. In this report, I have given ratio analysis of Janata Bank Limited. I have used financial ratio like NPL Ratio, Loan to Deposit Ratio, Debt to Asset Ratio, Capital Adequacy Ratio to analyzed Profitability of the bank. Without this I have also mentioned others side of the Bank like (Products, Service and Social responsibility). In the last chapter of the report, finding and recommendations were given to improve the financial performance of the bank