Performance Evaluation of Prime Bank Limited

Abstract

Prime Bank Ltd. started operation from April 17, 1995 with a commitment to play some social role in addition to normal banking. Its slogan is "Prime Bank Ltd. - a bank with a difference." From the very beginning, the bank has adopted the policy of diversifying its business. To achieve this objective, the bank started Consumer Credit Scheme, Lease Financing, Hire Purchase, loans in general Secured Overdrafts etc. Under the dynamic leadership of the Chief Executive Officer, the bank earned profit within December 1995 and raised its reserve. The bank started operation its business through four branches. The savings rate in Bangladesh is qne of the lowest in the world. In order to improve the savings rate, Financial Institutions responsible for mobilization of savings should offer attractive Savings schemes so that the marginal propensity to save increases. The savings do not, of course, depend only on the quantum of income but largely depend on the habit of savings ofthe people. Interest rate of Savings Deposit is 5.50%. The bank's deposits grew by 28 percent in 2005. Customer deposits of the bank grew by 33 percent. The growth was supported by branch network and high standard service provided to customers. The No cost and Low cost deposits comprised of 33 percent of the deposits. However, fixed deposits remained the main component of deposits contributing about 52 percent of the total deposits. The flavor of Insurance coverage of the fixed depositors has also increased the quantum. Average Interest cost of deposit increased 7.07 percent as against 6.62 percent of previous year.