An Empirical Study on Effect of Productivity on Profitability in Some Selected Private Commercial Banks (PCBs) in Bangladesh

K. M. Anwarul Islam, Mahbuba Zaman


The study is based on a total number of 15 PCBs operating in Bangladesh. The study is the outcome of mainly secondary data. These data were collected from the annual reports of the selected banks. A few primary data regarding factors influencing productivity of the banks were collected on the basis of a structured questionnaire using direct interview method. For the empirical analysis, five financial years ranging from 2007–2011 was selected. The main objective of the study was to critically examine the impact of productivity on profitability covering the specific objects like determinants of productivity performance and analyzing productivity performances. The main findings of the study are: (i) the significant factors affecting productivity have been: change in deposit structure, change in liability structure, lack of skilled employee, policy of Bangladesh Bank, lack of accountability,lack of proper responsibility & accountability. (ii) It is seen that the productivity performances in terms of DPE, LAPE, EAPE, and BPE have been satisfactory in most of the banks during the study period. In case of other productivity measure, almost 50% of the banks have been good. (iii) There is a strong relationship between productivity and profitability which is proved from the analysis of correlation coefficient. (iv) It is further found that ROI of the selected banks has been influenced by EPE, DPE, LAPE, IPE, LAIPE, EAPE, BPE and EXPE to the extent of 81%. Therefore, it can be concluded that these variables need to be improved for the improvement of profitability of the selected banks.


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International Journal of Economics and Finance  ISSN  1916-971X (Print) ISSN  1916-9728 (Online)  Email:

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