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Fund Management Practices of the Selected Nationalized Commercial Banks in Bangladesh

In: Business and Management

Submitted By smlincon
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ASA University Review, Vol. 6 No. 1, January–June, 2012

Fund Management Practices of the Selected Nationalized Commercial Banks in Bangladesh
Vhokto Kumar Biswas* Kartik Chandra Mondal** Abstract
Fund management of commercial bank is a significant issue for its growth and stability. The unusual difference between cost of fund and return on fund is alarming for the financial health of any commercial bank. The major objective of the study is to know the position of fund management, profitability, growth, stability, and productivity trends of Janata Bank Ltd and Agrani Bank Ltd during the period of 2000-2009 and 2004-2008 respectively. Here the secondary data are used. In fund management practices, the banks are not in a good position due to heavy stuck up advances, low recovery rates, excessive over dues, and outstanding advances. The management of the banks is alert enough to overcome this odd situation. The recent financial reforms introduced by the Ministry of Finance and Bangladesh Bank have improved the situation. The overall profitability, productivity, and stability of the banks are increasingly improving trough the application of modern fund management techniques.

Key Words:

Efficiency, stability, liquidity, profitability, productivity, growth rate, fund management.

Introduction
Banking system as a whole plays an important role in the economy of a country irrespective of its level of development. Bangladesh as one of the poorest countries in the world, no exception to this regard, inherited a poor banking system in terms of liquidity, personnel deposits, loan and advances, discipline and banking work at the time of liberation (1971). After the independence of Bangladesh, the development strategy which was followed in pre independence period, underwent a qualitative change. The Government of the People's Republic of Bangladesh adopted economic policies and...

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