PCBs have highest interest income-asset ratio
Sunday, 16 November 2008
Shakhawat Hossain
The country's private commercial banks (PCBs) have the highest interest income-asset ratio while foreign commercial banks (FCBs) have recorded higher non-interest income asset ratio, said a Bangladesh Bank report.
"A comparison of total interest income and total assets by bank groups shows that, in December 2007, PCBs had the highest interest income-asset ratio followed by FCBs, SCBs, and SBs," according to the BB report.
For banks, one of the major sources of income is interest income. The main sources of interest income for banks are loans and advances, said the report.
The report, prepared by off-site supervision department of the central bank, said 30 PCBs made highest 8.3 per cent interest income-asset ratio until December 2007.
The PCBs interest income-asset ratio in the same period previous year was 8.2 per cent.
Nine FCBs are in the second position with 7.6 per cent interest income-asset ratio until December 2007 compared with 7.5 per cent just one year ago, said the report.
The lending share of PCBs is rising as their share in total term lending was 59.8 per cent in the third quarter of Fiscal Year (FY) 07, which reached 63.9 per cent in the fourth quarter of FY08.
The disbursement of term lending to industrial sector up to third quarter of the FY08 was Tk. 145.7 billion showing 66.2 per cent growth over the same period of FY07.
The country's four state-owned commercials banks (SCbs) and five specialised banks (SBs) were in the last position with 4.3 per cent and 3.5 percent until December 2007 in the interest income-asset ratio.
The SCBs and SBs, which are losing market share to the PCBs and FCBs fast, had 5.2 per cent and 3.2 per cent after December 2006.
The BB report said a changed scenario was, however, observed in the case of non-interest income as a share of total assets
"In December 2007, the ratio was highest for FCBs compared with other groups showing greater importance of non-interest income as income source for FCBs," it said.
The FCBs had highest 3.8 per cent non-interest income asset ratio until December 2007, although they made 4.1 per cent in the category in December 2006.
"The ratio was also higher for PCBs than SCBs and SBs," said the central bank report.
The country's private commercial banks (PCBs) have the highest interest income-asset ratio while foreign commercial banks (FCBs) have recorded higher non-interest income asset ratio, said a Bangladesh Bank report.
"A comparison of total interest income and total assets by bank groups shows that, in December 2007, PCBs had the highest interest income-asset ratio followed by FCBs, SCBs, and SBs," according to the BB report.
For banks, one of the major sources of income is interest income. The main sources of interest income for banks are loans and advances, said the report.
The report, prepared by off-site supervision department of the central bank, said 30 PCBs made highest 8.3 per cent interest income-asset ratio until December 2007.
The PCBs interest income-asset ratio in the same period previous year was 8.2 per cent.
Nine FCBs are in the second position with 7.6 per cent interest income-asset ratio until December 2007 compared with 7.5 per cent just one year ago, said the report.
The lending share of PCBs is rising as their share in total term lending was 59.8 per cent in the third quarter of Fiscal Year (FY) 07, which reached 63.9 per cent in the fourth quarter of FY08.
The disbursement of term lending to industrial sector up to third quarter of the FY08 was Tk. 145.7 billion showing 66.2 per cent growth over the same period of FY07.
The country's four state-owned commercials banks (SCbs) and five specialised banks (SBs) were in the last position with 4.3 per cent and 3.5 percent until December 2007 in the interest income-asset ratio.
The SCBs and SBs, which are losing market share to the PCBs and FCBs fast, had 5.2 per cent and 3.2 per cent after December 2006.
The BB report said a changed scenario was, however, observed in the case of non-interest income as a share of total assets
"In December 2007, the ratio was highest for FCBs compared with other groups showing greater importance of non-interest income as income source for FCBs," it said.
The FCBs had highest 3.8 per cent non-interest income asset ratio until December 2007, although they made 4.1 per cent in the category in December 2006.
"The ratio was also higher for PCBs than SCBs and SBs," said the central bank report.