In a developing country like Bangladesh, the banking system as a whole, play a vitalrole in the progress of economic development. In this paper it has been tried toanalyze the development and growth of Dutch Bangla Bank Ltd. of Bangladesh andevaluate its performance. It is observed that the DBBL bank has been playing a vitalrole in economic development as well as in development of banking industry inBangladesh. Eleven trend equations have been tested for different activities of thebank. Among them the trend value of branches, total deposits and net income are themain parameters concerning the performance of the bank. Square of correlationcoefficient (r
) has also been tested for all trend equations. The r
of branches,deposits and net income is more than 0.90. It indicates the prospect of Dutch Banglabank in Bangladesh is very bright.
1.1 BANKING SCENARIO IN BANGLADESH
Banking system plays a very important role in the economic life of the nation. Thehealth of the economy is closely related to the soundness of its banking system. In adeveloping country like Bangladesh the banking system as a whole play a vital role inthe progress of economic development. A bank as a matter of fact is just like a heartin the economic structure and the Capital provided by it is like blood in it. As long asblood is in circulation the organs will remain sound and healthy. If the blood is notsupplied to any organ then that part would become useless. So if the finance is notprovided to agriculture sector or industrial sector, it will be destroyed. Loan facilityprovided by banks works as an incentive to the producer to increase the production.Banking is now an essential part of our economic system. Modern trade andcommerce would almost be impossible without the availability of suitable bankingservices.First of all, banking promotes savings. All manner of people, from the ordinarylaborers and workers to the rich land owners and businessmen, can keep their moneysafely in banks and saving centers.Secondly, banking promotes investments. Banks easily invest the money they get inindustry, agriculture and trade. They either invest it directly or advance loans to otherinvestors.Thirdly, it is most through banks that foreign trade is carried on. Whether we exportor import, it is through banks that money is transferred from one country to another.