ONE Bank Limited

ONE Bank Limited was incorporated in May, 1999 With the Registrar of Joint Stock Companies
under the Companies Act. 1994, as a commercial bank in the private sector. It is in the business
of taking deposits from public through various saving schemes and lending the fund in various
sectors at a higher margin. The Bank is pledge-bound to serve the customers and the community
with utmost dedication. The prime focus is on efficiency, transparency, precision and motivation
with the spirit and conviction to excel as ONE Bank in both value and image.

The Premier Bank Limited

The Premier Bank Limited was incorporated in Bangladesh as banking company on June 10, 1999
under Companies Act.1994. Bangladesh Bank, the central bank of Bangladesh, issued banking
license on June 17, 1999 under Banking Companies Act.1991. The Head Office of The Premier
Bank Limited is located at Banani, one of the main commercial and business areas of Dhaka city.

Prime Bank Limited

Prime Bank Limited is a private commercial bank in Bangladesh with its headquarters in Dhaka.
Prime Bank was created and commencement of business started on 17th April 1995. The
sponsors are reputed personalities in the field of trade and commerce and their stake ranges
from shipping to textile and finance to energy etc. As a fully licensed commercial bank, Prime
Bank is being managed by a highly professional and dedicated team with long experience in
banking. They constantly focus on understanding and anticipating customer needs. Prime Bank
offers all kinds of Commercial Corporate and Personal Banking services covering all segments of
society within the framework of Banking Company Act and rules and regulations laid down by
the central bank.

Pubali Bank Limited

Pubali Bank is the largest private commercial bank in Bangladesh having 465 branches and it has
the largest real time centralized online banking network. The Bank was initially emerged in the
Banking scenario of the then East Pakistan as Eastern Mercantile Bank Limited at the initiative of
some Bangali entrepreneurs in the year 1959 under Bank Companies Act 1913 for providing credit
to the Bangali entrepreneurs who had limited access to the credit in those days from other
financial institutions. After independence of Bangladesh in 1972 this Bank was nationalized as
per policy of the Government and renamed as Pubali Bank. Subsequently due to changed
circumstances this Bank was denationalized in the year 1983 as a private bank and renamed as
Pubali Bank Limited. Since inception this Bank has been playing a vital role in socio-economic,
industrial and agricultural development as well as in the overall economic development of the
country through savings mobilization and investment of funds.

Southeast Bank Limited

Southeast Bank Limited was established as a Public Limited Company on March 12, 1995. In the
Registrar of Joint Stock Companies and Firms issued the Certificate of Commencement of
Business of the Bank on the same date. The Southeast Bank received its Banking License from the
Bangladesh Bank on March 23, 1995. At present, 18.14% of SEBL's employees are women.

Standard Bank Limited

Standard Bank Limited (SBL) was incorporated as a Public Limited Company on May 11, 1999
under the Companies Act, 1994 and the bank achieved satisfactory progress from its commercial
operations on June 03, 1999. SBL has introduced several new products on credit and deposit
schemes. It also goes for Corporate and Retail Banking etc. The Bank also participated in fund
syndication with other banks. Through all these myriad activities SBL has created a positive
impact in the market.

The Farmers Bank Limited

The Farmers Bank Limited is a private commercial bank headquartered in Gulshan-

1,Dhaka, Bangladesh. The bank was established in 2013.The bank commenced its banking
operation on June 3, 2013. There are total 56 branches of The Farmers Bank Limited situated in
22 districts in Bangladesh.

Trust Bank Limited

Trust Bank Limited is a private commercial bank established in 1999 in Bangladesh. It is backed
by Army Welfare Trust of Bangladesh Army. It is one of the leading private commercial banks
having a network of 92 branches, 7 SME Service Centers, 162 ATM Booths and 60 POS in 50
Branches across Bangladesh. In 2001, the bank introduced automated branch banking system. In
2005, the bank introduced ATM services for its customers. In January 2007, Trust Bank launched
online banking services.

United Commercial Bank Ltd

United Commercial Bank Ltd (UCB) is one of the largest private sector commercial bank
in Bangladesh. The Bank was incorporated on 26 June 1983. The bank is listed in both Dhaka
Stock exchange and Chittagong stock exchange. With a vast network of 183 branches the Bank
has already made a distinct mark in the realm of Private Sector Banking through personalized
service, innovative practices, dynamic approach and efficient management. The Bank has
expanded its arena in different and diverse segments of banking like Retail Banking, SME Banking,
Corporate Banking, Off-shore Banking, and Remittance etc.

Uttara Bank Limited

Uttara Bank Limited is one of the largest and oldest private sector commercial banks
in Bangladesh. There are 233 branches at home and 600 affiliates worldwide. Uttara Bank Limited
(UBL) was established in 1965 with the head office located at Motijheel in Dhaka, East Pakistan as
a scheduled bank of the Eastern Banking Corporation. After the liberation war of Bangladesh, the
bank was nationalized under Bangladesh Banks Order 1972 and renamed it Uttara Bank. In 1983,
it became the first privatized bank of Bangladesh. he Bank operates through 233 fully On-line
branches ensuring best possible and fastest services and has a total number of employees is
3569 at present.

South Bangla Agriculture and Commerce Bank Limited

South Bangla Agriculture and Commerce Bank Limited is incorporated in Bangladesh as a banking
company on 2013 under Companies Act.1994. Bangladesh Bank, the central bank of Bangladesh,
issued banking license under Banking Companies Act.1991
Islamic Banks
Al-Arafah Islami Bank Limited

Al-Arafah Islami Bank Limited is a sharia compliant bank in Bangladesh founded on 27 September
1995. A sharia council of the bank is responsible for ensuring the bank activities meet sharia
requirements. The headquarters are located in Motijheel, Dhaka. Al Arafah Islami Bank was
established as a private limited company on June 18, 1995. The authorized capital of the bank is
Tk 15000 million. Renowned Islamic scholars and pious businessmen are the sponsors of the
bank.

Export Import Bank of Bangladesh Limited

Export Import Bank of Bangladesh Limited (EXIM Bank) is one of the leading private commercial
banks in Bangladesh. The Bank came into operation as a commercial bank on 3 August 1999 as
per rules and regulations of Bangladesh Bank. From its establishment the bank was known as
BEXIM Bank Limited. But due to legal constraints, the bank was renamed as EXIM Bank, which
stood for Export Import Bank of Bangladesh Limited. By July 2004 the bank has migrated all of its
conventional banking operation into Shariah based Islamic banking. the bank has operations
across the country with 88 branches and 45 ATM booths.

First Security Islami Bank Limited

First Security Islami Bank Limited was incorporated on 29 August 1999 as a commercial bank. It
started operations on 25 October 1999 with an authorized capital of 1 billion taka. From 2009
the bank started sharia banking. Its authorized capital was Tk.10,000 Million and paid up capital
Tk.7,840.99 Million.

ICB Islamic Bank Limited

The Bank has been incorporated on April, 1987 as a public limited company under the Companies
Act, 1913 to undertake and carry out all kinds of banking, financial and business activities,
transactions and operations in strict compliance with the principles of Islamic Law (Shariah)
relating to business activities in particular avoiding usury in credit and sales transactions and any
practice which amounts to usury. Certificate for commencement of business has been issued to
the bank on April, 30, 1987. The Bank has been authorized by the Bangladesh Bank to carry on
the banking business in Bangladesh with effect from May 4, 1987. However, actual banking
operations commenced on May 20, 1987.

Islami Bank Bangladesh Ltd.

Islami Bank Bangladesh Limited (IBBL)is the pioneer of Islamic banking in Bangladesh. It became
incorporated on 13 March 1983 as a public limited company under the Companies Act 1913. It
has 36.91% local and 63.09% foreign shareholders. Up to Dec 2016, IBBL has 332 branches
including 59 AD Branches & 03 Offshore Banking Units as well as has more than 13,500 staffs. In
addition to that IBBL maintains its own 497 ATM Booths, 33 IDM (IBBL Deposit Machine) along
with 6,000 shared ATM network across the country. IBBL mobilizes around 29% of the country
remittance. As such, IBBL is the largest private banking network in Bangladesh. When IBBL was
established, it was the first bank in south-east Asia to provide banking service based
on Shariah. The bank is listed with both Dhaka Stock Exchange Ltd. and Chittagong Stock
Exchange Ltd.

Shahjalal Islami Bank Limited

Shahjalal Islami Bank Limited (SJIBL) commenced its commercial operation in accordance with
principle of Islamic Shariah on the 10th May 2001 under the Bank Companies Act, 1991. During
these years SJIBL has diversified its service coverage by opening new branches at different
strategically important locations across the country offering various service products both
investment & deposit. Islamic Banking, in essence, is not only interest-free banking business, it
carries deal wise business product thereby generating real income and thus boosting GDP of the
economy.

Social Islami Bank Limited

Social Islamic Bank limited is private commercial bank in Bangladesh. The Bank was founded in
22 November 1995. The bank is an Islamic bank, based on Islamic Sharia law. The Bank engages
in corporate social responsibility through donation
Union Bank LImited

Union Bank Limited, one of the leading fourth generation banks in the region, was formed on 1st
April, 2013. with an authorized capital of Tk. 10000 million, paid up capital of Tk.4280 million
which is divided into 428 million shares of Tk.10 each.it renders all types of commercial banking
services in compliance with the Bank Companies Act,1991. The bank provides high quality
customer service through the integration of the latest banking technology and also Shariah based
product.

INTRO
In the modern world, banks are the center of all the economic and financial activities. As a key
component of the financial system, banks allocate funds from savers to borrowers in an efficient
manner. They provide specialized financial services, which reduce the cost of obtaining
information about both savings and borrowing opportunities. These financial services help to
make the overall economy more efficient. Each nation has various types of banks to run their
financial system. The banking sector of Bangladesh consists of banks such as conventional banks,
Islamic banks, foreign banks and government banks. Financial strength of these banks is of
utmost importance for the economic growth of the nation. Therefore, characterizing the financial
strength of these banks is essential. There are many components by which financial stability of
banks can be determined. One of the key factors is loan. By determining the loan maintenance
of a bank, it is conceivable to identify its financial strength. The performance of loan maintenance
mainly depends on factors such as classified loan and provision for loan.

JUSTIFICATION

Through this term paper we strive to give the readers a clear idea of the financial performance
of the conventional banks and Islamic Banks of Bangladesh. Although this report focuses on the
classified loan and provision for loan that affect the financial strength of the banks, it will also
help to know the impact on the whole economy of Bangladesh.

Limitations

 Due to limited access of the data, the study may not be perfect to the decent percent.
 Lack of enough experience in analyzing the data.
 Lack of using practical knowledge in the report.
 Lack of prior research studies on this topic.
 Lack of enough human resources.
 Due to inadequate information, in depth analysis could not be done in the report.

Objectives
• To present an overview of the banks in Bangladesh.

• To interpret the classified loan of conventional banks and Islamic banks.

• To compare the classified loans between Islamic banks and

Conventional banks.

• To present the provision for loan of different banks.

• To compare the provision for loan between Islamic banks and Conventional banks.

• To do regression analysis among classified loan and total asset, total deposit, number of

branch, age etc.

• To understand the effect of total asset, total loan, total deposit, number of branch and age

on classified loan.
Methodology
This study is mainly based on secondary data. But we have also taken help from our course instructor.

Procedure of collecting secondary data:

 Records and documents.

 Books, texts and publications.
 Related Websites.