Influence of Bank Specific Factors on Profitability: A Study on Janata Bank Limited

Abstract

This research aims to investigate the effect of banks' specific factors on its profitability; with the ordinary course of business and in the medium term (10 years). Secondary data is used to evaluate the performance of the last ten years (2014 -2023) of the annual report of Janata Bank. The internship report is based on “ Influence of Bank Specific Factors on Profitability: A study on Janata Bank PLC”. Starting of the report the introduction, background, problem statement, scope, question and objectives are discussed. The main objective of this report is to “The Impact of bank specific factors on Banks Profitability” of Janata Bank Ltd. Literature review is given. It demonstrates the issue (the impact of bank specific factors on Banks profitability) investigating. It allows to develop a more theoretical framework for your research. Here, we find out the application of this topic in different terms and condition.Then, the methodology of the study is conducted with both primary & secondary data which shows that the efficiency of report carry forward with the help of some determined ratio.conceptual framework shows the clear picture of 2 different types of variable and overview of Janata Bank PLC is given it organizational optimization.. It covers that this report is based on secondary data which is collected from annual reports, journals and several web pages etc. the rofitability management process ,SOWT analysis are discussed. The financial analysis and findings are drawn. In financial analysis part, different ratios of Janata Bank Limited over last 10 years with graphical presentation are shown. Descriptive analysis, Regression analysis, Correlation analysis and Heteroskedasticity test, multicollinearity test has been establish for making decision for the report using EViews 12. In the ending, The conclusions iisNon performing loan are increasimf in a alarming rate & CRR is not significantly impacted here. Recommendations in one sentence might be “Operational efficiency should maintained as well as increase to increase the profitability” and limitation of the study are given. Proposed variables are: NPLR, SLR, CRAR, CDR, CRR is the bank specific factors and ROA is the profitability representation. Two hypotheses have been established to assess the effect of bank specific factors on profitability. Following a correlation and regression analysis, it is observed that NPLR, SLR and CDR had a substantial effect on the profitability measured as ROA, but CRARand CRR proved insignificant. Therefore, it can be concluded that, in general, the impact of bank specific factors has a significant effect on the profitability in the commercial banking sector (Janata Bank) Bangladesh. By relying on this report; Janata bank will be best positioned to keep equality towards uts factors