Abstract:
This study examines the capital adequacy of Agrani Bank PLC from 2015 to 2024, focusing on how Non-Performing Loan Ratio (NPL), Loan-to-Deposit Ratio (LDR), Return on Assets (ROA), and bank size affect the Capital Adequacy Ratio (CAR). Using secondary data from annual reports, the study applied descriptive statistics, trend and correlation analysis, and multiple regression. Findings show that CAR declined over the period, with rising NPL and LDR indicating increasing credit risk and lending pressure. ROA was volatile, while bank size remained mostly stable. Regression results highlight LDR as the most influential factor on CAR, with other variables showing weaker effects. The study recommends that Agrani Bank focus on prudent credit expansion, improved loan monitoring, and profitability stabilization. Regulatory oversight should emphasize capital strength and lending behavior to ensure financial resilience. This institution specific analysis provides insights for both management and policymakers to strengthen capital adequacy in state-owned banks.
