The inspiration steers behind this workout is to weigh up the financial performance of Specialized Banks of Bangladesh based on their financial attributes especially prioritizing the financial proportions as specialized banks are playing pivotal in financial advancement of Bangladesh. Two particular banks out of three are picked for this research. This paper presents the through scrutinization of financial performance for the period 2015–2019 by enacting financial proportions (ratio). The proportions which have been taken into consideration are the bank's deposit, credits, total assets, shareholders’ equity, ROE, ROD, ROA, ROI, profit margin ratio and interest income. Simple linear regression is taken to test the effect of bank size on the financial execution of these aforesaid Financial Institutions. The investigation unleashed that the banks maintaining higher deposit, credits, or assets don't generally imply that has better benefit execution. The examination additionally acknowledged the two hypotheses and found that the financial performance of these banks is emphatically affected by the bank size.
In the case of business organizations, it is considered that the banking sector is one of the main sources of finance. The most common assumption in financial performance researches is that when financial performances increase, it comes up with improved financial functions and activities in the organization. The subject of the research mainly goes upon the fields of finance and management. It is argued that ‘institution size’ is a principal factor that performs a vital role in the case of improving the financial performances of the institutions. There have been few research papers published on the impact of this principal factor on financial performance where it is rarely done on the specialized banks in Bangladesh.
The study hypothesizes that the linkage between the factor ‘bank size’ and financial performance is determinable. This study has the objective of analyzing the financial data from 2015-2019 of different commercial banks in Bangladesh and concluding the ultimate impact of the size of the banks on their interest income. In this study, a comparison made among the performances of the banks and they are ranked in terms of it.
That’s why the study goes intending to classify the specialized banks in Bangladesh in terms of their financial indicators’ indications. These can also be used in further financial analysis as a guideline for development in future. In this case, the financial indicators are determined from the financial statements of the banks at the year-end. ROD, ROA, ROE are the common financial indicators used by most of the financial institutions where the banks’ assets and income are considered. It is assumed here that there is a positive correlation between the size of the bank and the size of income from interest. That’s why it is concluded that the institutional size has a significant impact on organizational performance. Thus, the study is done by introducing the banking sector and developing the study objectives. Afterwards, some relevant literature is reviewed and the research hypothesis is determined thereon. Along with this, the section on the limitations of the study is also added with relevant points. Research methodologies are also determined later on and using those methodologies, data collection and analytical discussion on the findings and results are included afterwards. Finally, the study is concluded with a brief discussion of the study and its results.
Banking Industry in Bangladesh
After independence, banking industry of Bangladesh started its excursion with six popular nationalized banks, three specialized banks claimed by the State and nine foreign banks. With the passage of private banks, the banking sector achieved enormous growth in the 1980s. At present, Bangladeshi banks are basically of two kinds:
Scheduled Banks: The banks remaining in the rundown of banks held under the 1972 Bangladesh Bank Order
Non-Scheduled Banks: However, the banks that are set up with a clear and constructive purpose and run under any demonstration are not the Scheduled Banks. All the elements of expected banks can't be played out by those banks
There are 59 scheduled banks in Bangladesh functioning under the full supervision and oversight of Bangladesh Bank which is devoted to doing so because of the 1972 Bangladesh Bank Order and the 1991 Bank Company Act. Anticipated Banks present the following types:
State-Owned Commercial Banks (SOCBs): There are 6 SOCBs which become entirely or substantially claimed by the Government of Bangladesh
Specialized banks (SDBs): 3 separate banks that have been set up for specific purposes such as the agrarian or modern turn of events are currently operating. Likewise, these banks are entirely or substantially claimed by the Government of Bangladesh
Private Commercial Banks (PCBs): There are mainly 41 private business banking that tells considerably about people/private substances. It is feasible to organize PCBs into two sessions
Conventional PCBs: 33 ordinary PCBs are currently involved in the business. In customary architecture i.e., interest-based operations, we play out the financial capabilities.
Islami Shariah-based PCBs: In Bangladesh, there are 8 Islami Shariah-based PCBs and they conduct banking exercises, such as Profit Loss Sharing (PLS) mode, as per Islami Shariah-based standards.
Financial Commercial Banks (FCBs): In Bangladesh, 9 FCBs act as components of banks which are consolidated abroad.
Bangladesh now has five non-scheduled banks, which are:
Ansar VDP Unnayan Bank
Karmashangosthan Bank
Grameen Bank
Jubilee Bank
Palli Sanchay Bank
Objectives of the Study
The major objective of this study is to know about the operational efficiency and asset utilization on the financial performance of the specialized banks in Bangladesh. The specific objectives of the study include:
Some financial metrics are used to measure the existence of specialized banks
The financial output is considered in inspecting the relationship between the size of specialized banks determined by the size of total assets and the size of interest income
Literature Review
Financial performance s of the financial institutions including commercial banks are done through different ratio analysis, budget versus performance analysis, benchmarking and mix of all of these techniques. In the case of financial institutions in Bangladesh, they use to publish various financial ratios which indicate the performance efficiency of the financial institutions.
There are some limitations of the financial indicators discussed in various accounting literature although those financial ratios like the Return of Assets (ROA), the Return Of Deposit (ROD), Return On Equity (ROE), etc. rank the commercial banks in a relevant way. Bank performance reflects on the interest income and bank size reflects on the total assets. These two are studied here to identify the relation between them.
The monetary presentation of banks and other monetary pillars has, for the most part, been calculated using a combination of inquiry of monetary dimensions, benchmarking, calculating execution against expenditure schedule or a mixture of these techniques [1]. The fiscal accounts of the frequently circulated banks in Bangladesh contain an array of monetary proportions meant to be a symbol of the company's show.
There are impediments relating to the use of such monetary proportions, as is understood in accounting. Nevertheless, in this study, the ROA proportion of the interest pay size is used to quantify the execution of commercial banks in Bangladesh. To explore the relations between them and the monetary introduction, the tools of the board, the bank scale and organizational effectiveness are used together.
In essence, much of the latest writing on bank execution presents the purpose of monetary associations as that of achieving acceptable returns and minimizing the risks required to achieve this return [2]. The relation between danger and return is mostly understood, i.e. the higher the risk, the higher the usual return. Therefore, traditional bank execution ratios have calculated all costs and returns.
Thabet [3], completed a study in Kuwait taking the banking customers as a research sample. In the study, he tried to find out the selection factors that the customers or clients consider while taking a bank-based investment decision. The findings of the study show that the customers usually consider the bank size or its asset size there in terms of choosing a bank whether to invest or not.
The increasing competition in the public and global financial market sectors, the transition to financial alliances and the latest mechanical technologies are bringing about dramatic changes in the banking system and calling for all banks to make convenient plans for a new, severe monetary environment. The adequacy of Greek banks based on their capital size was investigated [4]. They used a multi-standard philosophy in their research to classify Greek banks according to the factors of return and operation and to explain the disparities between small and big banks in the profit and competitiveness of banks.
In their study, it appeared that most historical evaluations of organizational execution evaluation focus only on managerial competence and operational adequacy that can have a significant effect on an organization's endurance. The revolutionary outcome of this analysis is that an institution with greater expertise does not normally mean that by using an innovative two-stage knowledge envelopment investigative model in their examination. A paper titled Competitiveness, Customer Service and Financing Execution among Australian Monetary Foundations showed that all monetary execution metrics such as interest margin, asset return and capital adequacy are closely linked to highest volume for customer care.
Sufian and Chong [5], discussed on the confusion between the bank size and the asset size. The study said that asset size is a proxy variable of bank size where the asset value indicates its size. These are the independent variable to analyze the bank performance where it is assumed that the banks having higher assets, tend to perform better and earn more profit in comparison with the banks having fewer assets.
Chiorazzo et al. [6], also addressed the assets as the bank size where they stated that those banks having a higher size, usually have greater resources through which they can efficiently utilize the technologies and manages the arisen risks at a minimum level. Thus, the banks can maintain the economies of scale through impacting on the revenue.
A research to analyze the financial success in Pakistan across the capital system was conducted by Siddiqui and Shoaib, [7]. The analysis found that the scale of the branch played an important role in the estimation of the bank's profitability as calculated by ROE. The report also used Tobin's Q model to calculate the efficiency of banks. The study concluded that Tobin's Q is impacted by the bank's size, leverage ratio and the bank's follow-up investments.
Alkhatib and A. A research to examine the financial performance of five Palestinian commercial banks at the three levels of internal, business and economic performance was undertaken by Harasheh, M. [8]. In order to measure the financial performance of these banks, the analysis used three indicators; Return on Investment, Tobin's Q model and Economic to Value add. They used a correlation and regression model to catch the implications of bank size, credit risk, operating productivity and asset management in order to predict potential financial results. The study showed that bank size, credit risk, operating efficiency and asset management had no statistically important impact on the financial performance of those banks.
A research focused on the financial performance of private commercial banks in Bangladesh [9], found that an overview of bank size, credit risk, asset management and operating efficiency would classify financial performance. They found that bank size correlated negatively with the ratio of ROA and P/B (price to book value). They also noted that the risk of declining ROA is greater with the rise in the size of the asset of the bank.
Gaddam L. et al., [10], showed the impact of the bank size on banks’ profitability through a simple regression where it is found that profitability positively reacts on increasing the bank size impacting on interest income as well. Al-Obaidan [11], claimed in his study that the banks having higher sizes are more operationally efficient in comparison with the small size banks. Tarawneh [12], did a study where it is found that the bank size positive influences the performance of the banks.
Mohammad M Rahman, [13], reveals the influence of bank size on bank regulatory capital levels and risk-taking and also acknowledges that the reciprocal relationship between capital and risk, where the capital is greater, the risk is less, but where the capital is less, the risk is more.
A research focused on Financial Performance Analysis of Scheduled Commercial Banks in Bangladesh, Mohammad Mizanur Rahman [14], studied that the profitability ratio-a financial metrics-and the demand ratio demonstrates the potential of the business to make a profit. In this sense, when measuring efficiency, the profitability ratio, the demand ratio and value-added metrics were used.
Thus, analyzing the literature discussed above, the research hypothesizes can be developed as follows:
H1: The bank performance and its asset size and interest income are in a positive correlation
H2: There is no relation between the bank size and bank performance or there is no impact of bank size or asset size on the bank performance and interest income
Limitations of the Study
The main contribution of this study is to compare specialized banks in Bangladesh based on certain key metrics including return on assets, return on equity, return on the deposit, return on investment and other performing-determining financial banking activities such as loans and deposits. The present analysis is fundamentally evaluated in nature, drawing only secondary data from sources of information. This paper aimed to look only at the main relationship between the size of the assets and the financial results of specialized banks operating in Bangladesh in order to consider a feasible comparison.
The data is obtained from the banks' financial statements of two selected specialized banks in Bangladesh in order to achieve the study objectives. Data from 2015 to 2019 was used to measure the financial ratios for the purpose of obtaining the banks' financial results. Data from books and associated papers and articles are also used.
To calculate, compare, define and classify the financial performance of the specialist banks, we used a descriptive financial analysis. Two specialized banks are used as a sample, namely Bangladesh Krishi Bank and Probashi Kallyan Bank.
Analysis of variance (ANOVA) and Pearson correlation coefficient were used by the SPSS software package to evaluate the hypotheses and to investigate the correlation between each variable at a 5 percent confidence level respectively.
Interest is viewed as a predictor of financial performance and is regarded as a dependent variable. Bank scale, on the other hand, is known as an independent variable.
We have considered main financial metrics such as total deposits, total assets, total credits, ROA, ROE, total shareholder equity, etc. for the ranking of the banks in order to understand the financial output of two selected specialized banks.
The effect of an independent variable on the dependent variable was evaluated and compared using correlations, simple regression and ratio analysis.
Definition of Key Financial Ratios and Variables
ROE: It means the return on equity that determines the profit returns against the invested amount of the shareholders. The calculation of this ratio is to divide the net profit by the denominator shareholders’ equity. Bashir and Hassan stated that the ROE is an important ratio that indicates the firms’ profitability
ROA: It means the return on assets that a bank occupies. This is calculated through net income or net profit divided by the total assets of the bank. Hassoune stated that ROA is the ratio that is used to identify the effectiveness of the bank’s performance in terms of the level of assets it has. Bashir and Hassan also said in their paper that this ratio is the investment efficiency indicator in terms of the total assets of the organization
ROD: It means the return of deposit which are made by the customers of the banks. It is measured by dividing the net income by the total deposit. Gaddam et al. [10], stated that ROD is one of the important ratios of determining performance efficiency. It indicates the management efficiency in terms of utilizing the depositors’ deposits properly
Profit Margin
The profit margin is an extent of a company's advantage (bargains less all costs) separated by its pay. The net income extent dissects advantage to arrangements and uncovers to you how well the company is dealing with its assets as a rule. It's continually conveyed as a rate. The general income condition just takes the formula for advantage and segments it by the pay.
Interest Income
This is a dependent variable which depends on the independent variable bank size or its asset size. Interest income means the income of the banks from investing money as loans to the clients or providing security of the deposits of the depositors. Ben Naceur said in his study that interest income is the indicator of the performance of banks’ operation.
Size of the Bank
The size of the bank is associated with this examination as an autonomous variable. In most of the composing like Sufian and Chong [5], referred to that the entireties assets of the banks are used as a middle person for bank size. Hard and fast asset size is used to get the way that greater banks are ideal spot over more unassuming banks in outfitting economies of scale in trades to the plain effect that they will all in all like a huger degree of advantages. Chiorazzo et al. [6], used the variable of the complete asset for getting bank size. They referred to that greater banks have more resources to create specialized ability and headways for brilliant danger the executives. They also added that a greater size allows the bank to mishandle economies of scale and therefore to influence pay.
Comparisons of the bank’s deposits, credits, assets, owners’ equity, ROE, ROD and ROA
Furthermore, Table 1 indicates that growth rates of Bangladesh Krishi Bank, Probashi Kallyan Bank are 30% and 27% respectively. To rank the banks based on their average total deposits, Bangladesh Krishi Bank is considered to be number one.
Table 1: Total deposits of Two Bangladeshi Specialized Banks
| Bank Name | 2015 | 2016 | 2017 | 2018 | 2019 | Growth | Average |
| Bangladesh Krishi Bank | 197428.40 | 210676.60 | 226249.60 | 2407047.00 | 256128.20 | 30% | 659506 |
| Probashi Kallyan Bank | 751.71 | 944.66 | 120.11 | 415.99 | 953.90 | 27% | 637.27 |
*in million, Source: Calculated from the audit report (2015-2019) of Bangladesh Krishi Bank and Probashi Kallyan Bank
Table 2 shows total credits, average credit and growth of the total credits from the period 2015-2019 for Bangladesh Krishi Bank and Probashi Kallyan Bank. Credit growth of Bangladesh Krishi Bank is lower than that of Probashi Kallyan Bank. But the average credit of Bangladesh Krishi Bank is higher than that of Probashi Kallyan Bank.
Table 2: Total credits of Two selected specialized Banks in Bangladesh
| Bank Name | 2015 | 2016 | 2017 | 2018 | 2019 | Growth | Average |
| Bangladesh Krishi Bank | 179960.17 | 186419.99 | 193672.56 | 200246.95 | 219227.16 | 22% | 195905.40 |
| Probashi Kallyan Bank | 435.50 | 860.40 | 1126.20 | 1337.11 | 1839.60 | 322% | 1119.76 |
*in million, Source: Calculated from the audit report (2015-2019) of Bangladesh Krishi Bank and Probashi Kallyan Bank
Table 3 illustrates the Total Assets for those two specialized banks for the period 2015-2019 and also shows the growth rate in Assets and the Average of Total Assets. It is clear from table 3 that Krishi Bank has the lowest growth rate (17%) than Probashi Kallyan Bank (191%) in Total Assets. However, ranking based on the Average Total assets has shown that Krishi Bank position is so much higher than Probashi Kallyan Bank.
Table 3: Total assets of Two selected specialized Banks in Bangladesh
| Bank Name | 2015 | 2016 | 2017 | 2018 | 2019 | Growth | Average |
| Bangladesh Krishi Bank | 229959 | 234448 | 241255 | 253501 | 268020 | 17% | 245437 |
| Probashi Kallyan Bank | 2159 | 2438 | 2627 | 5380 | 6288 | 191% | 3778 |
*in million, Source: auditor's report (2015-2019) of Bangladesh Krishi Bank and Probashi Kallyan Bank
According to the Table 4, Probashi Kallyan Bank shows the highest growth rate in its total shareholders’ equity (286%) in the year 2019 comparing with its owners’ equity in the year 2015. But it is mentioned in Table 4 Bangladesh Krishi Bank has a low growth rate in its equity comparing with Probashi Kallyan Banks. Though Probashi Kallyan Bank is ranked in the second position between the two specialized banks in the table (4) based on their average of total shareholder’s equity. As mentioned in table (4) Bangladesh Krishi Bank is ranked number one considering the total amount of equity even it does not have the highest growth rate in its equity. The return on equity (ROE) is considered to be one of the profitability performance ratios.
The Return on Equity (ROE indicates the profitability performance ratios. The lowest mean ROE ratio is 9.67% for Bangladesh Krishi Bank while Probashi Kallyan Bank got an average ROE of 9.87% during the period 2015-2019. It identifies the bank management’s ability to yield net benefit from using equity.
Table 4: Shareholder's equity of Two selected specialized Banks in Bangladesh
| Bank Name | 2015 | 2016 | 2017 | 2018 | 2019 | Growth | Average |
| Bangladesh Krishi Bank | 45390 | 52177 | 57771 | 60024 | 65483 | 44% | 56169 |
| Probashi Kallyan Bank | 1157 | 1178 | 1708 | 4272 | 4468 | 286% | 2556.6 |
*in million, Source: auditor's report (2015-2019) of Bangladesh Krishi Bank and Probashi Kallyan Bank
Table 5: Return on Equity (ROE) ratio at the Bangladeshi Specialized Banks
| Bank Name | 2015 | 2016 | 2017 | 2018 | 2019 | Average |
| Bangladesh Krishi Bank | 4.74% | 13.01% | 9.80% | 10.43% | 10.37% | 9.67% |
| Probashi Kallyan Bank | 12.25% | 10.95% | 9.98% | 6.41% | 9.61% | 9.84% |
*in million, Source: Calculated from the audit report (2015-2019) of Bangladesh Krishi Bank and Probashi Kallyan Bank
Table 6 shows that all Return on deposit (ROD) ratios in every year from 2015 to 2019 of Bangladesh Krishi Bank (BKB) is opposite while the ROD ratios of Probashi Kallyan Bank are positive. So, obliviously average ROD of Probashi Kallyan Bank is higher than those of Bangladesh Krishi Bank. It is shown that overall ROD ratios fluttered through the duration of the banks. It is computed by dividing net profit by whole deposits. Due to earn profits, this ratio mirrored the bank management capability to exert the customers’ deposit. The table shows that the average of Bangladesh Krishi Bank (BKB) is -2.41% and Probashi Kallyan Bank average is 16.08% that is higher than Bangladesh Krishi Bank (BKB).
Table 6: Return on deposit (ROD) ratio of two selected specialized Banks of Bangladesh
| Bank Name | 2015 | 2016 | 2017 | 2018 | 2019 | Average |
| Bangladesh Krishi Bank | -1.09% | -3.22% | -2.50% | -2.60% | -2.65% | -2.41% |
| Probashi Kallyan Bank | 4.16% | 3.41% | 33.08% | 19.87% | 19.88% | 16.08% |
*in million, Source: Calculated from the audit report (2015-2019) of Bangladesh Krishi Bank and Probashi Kallyan Bank
As shown the Table 7, the summery of ROA during the period of 2015b to 2019 for the specialized bank (Bangladesh Krishi Bank and Probashi Kallyan Bank) in Bangladesh. We can see that PKB’S average ratio is 2.612 where BKB’S ratio is 2.238%.
The Return on Investment (ROI) is not good at all. The lowest average ROI ratio is 2.90% for Probashi Kallyan Bank while Bangladesh Krishi Bank got an average ROE of 7.36% during the period 2015-2019. The ROI is net profit divided by the cost of investment. Return on Investment (ROI) is a performance measure used to appreciate the efficiency of an investment or compare the efficiency of a number of various investments.
The table shows a profit margin ratio from the duration 2015-2019 for Bangladesh Krishi Bank and Probashi Kallyan Bank. Profit margin ratio of Bangladesh Krishi Bank is in negative figure than that of Probashi Kallyan Bank. So, the average of Probashi Kallyan Bank is higher than that of Bangladesh Krishi Bank. The profit margin ratio is a performance measure that shows how well the company is controlling its overall finances. The ratio is computed by dividing a company's profit, or sales minus all expenses, by its revenue.
The table shows Interest Income from the duration 2015-2019 for Bangladesh Krishi Bank and Probashi Kallyan Bank. The average of Bangladesh Krishi Bank is higher than that of Probashi Kallyan Bank. The Interest Income is the indicator of the performance of banks’ operation.
Table 7: Return on Assets (ROA) of selected 2 Specialized Banks of Bangladesh
| Bank Name | 2015 | 2016 | 2017 | 2018 | 2019 | Average |
| Bangladesh Krishi Bank | -.94% | -2.90% | -2.35% | -2.47% | -2.53% | -2.238% |
| Probashi Kallyan Bank | 1.69% | 1.38% | 1.60% | 3.36% | 5.03% | 2.612% |
*in million, Source: Calculated from the audit report (2015-2019) of Bangladesh Krishi Bank and Probashi Kallyan Bank
Table 8: Return on Investment (ROI) ratio at the Bangladeshi Specialized Banks
| Bank Name | 2015 | 2016 | 2017 | 2018 | 2019 | Average |
| Bangladesh Krishi Bank | 8.16% | 7.73% | 8.11% | 6.67% | 6.14% | 7.36% |
| Probashi Kallyan Bank | 2.11% | 2.34% | 3.10% | 2.20% | 4.74% | 2.90% |
*in million, Source: Calculated from the audit report (2015-2019) of Bangladesh Krishi Bank and Probashi Kallyan Bank
Table 9: Profit margin ratio of two selected specialized Banks in Bangladesh
| Bank Name | 2015 | 2016 | 2017 | 2018 | 2019 | Average |
| Bangladesh Krishi Bank | -14.66% | -47.07% | -36.04% | -46.89% | -50.49% | -0.3903 |
| Probashi Kallyan Bank | 14.90% | 17.13% | 21.79% | 28.37% | 39.21% | 0.2428 |
*in million, Source: Calculated from the audit report (2015-2019) of Bangladesh Krishi Bank and Probashi Kallyan Bank
Table 10: Interest income of Two selected specializes Banks in Bangladesh
| Bank Name | 2015 | 2016 | 2017 | 2018 | 2019 | Average |
| Bangladesh Krishi Bank | 14684.00 | 14418.08 | 15697.25 | 13347.89 | 12455.98 | 14320.65 |
| Probashi Kallyan Bank | 208.67 | 181.92 | 179.03 | 289.94 | 482.13 | 268.34 |
*in million, Source: Calculated from the audit report (2015-2019) of Bangladesh Krishi Bank and Probashi Kallyan Bank
In order to summarize the classification of the banks based on rank of their activities and profitability ratios, Table 11 contains ranks of the positions for these banks. As it is shown in this Table, rank of Bangladesh Krishi Bank is good position in total deposits, total credits, total assets, Return on Investment(ROI) and Interest Income. The Probashi Kallyan Bank is ranked in the first position in the profitability performance i.e Return on Asset(ROA), Return on Equity (ROE), Return on Deposit (ROD) and Profit Margin.
Table: 11: Bangladesh Specialized Banks: Main Average Data (2015-2019)
Bank Variables | BKB | PKB |
| Variant 1* Interest Income | 14320.65 | 268.3413 |
| Variant 2** Asset Size | 245437 | 3778 |
*The dependent V1, **The Independent V2
Table 12: Correlations
| Parameters | Interest Income (V1) | Total Asset(V2) | |
| Interest Income | Pearson Correlation | 1 | .830** |
| Sig. (2-tailed) | - | .003 | |
| N | 10 | 10 | |
| Total Asset | Pearson Correlation | 0.830** | 1 |
| Sig. (2-tailed) | 0.003 | - | |
| N | 10 | 10 | |
**. Correlation is significant at the 0.05 level (2-tailed)
Checking of Hypotheses
There are two hypotheses, as delineated in this study: the primary one expressed that:
H0: There's no relationship between the financial output calculated by the size of interest income and the size of the bank determined by total assets.
It was claimed that the alternative hypothesis was,
H1: There's a positive relationship between the financial output measured by the size of interest income and the size of the bank measured by total assets
Based on the analysis of the common knowledge for all study variables over the amount 2015-2019 as shown in Table 11, correlations and variance analysis were estimated to analyze the consequence of independent variables on dependent variables.
Based on the analysis of the average data for the study variables over the period 2015-2019 as shown in Table 11, the correlations and variance analysis were calculable to judge the consequence of certain variables on the measure.
The outcome of the independent variable and dependent variable correlation test indicated that there was a strong positive association between financial performance and bank size. The financial output (interest income size) and the independent variable with a correlation coefficient indicator of 83.0% are substantially positive correlations. The first hypothesis is justified based on this correlation. The strong relationship between interest income and the size of the bank is also positive.
To test the second hypothesis, the overview result of the study of variance (ANOVA) is shown in table 13. If F is determined, the testing rule is to consider the second hypothesis (H2) less than Sig 0.05. There is a positive effect of an independent variable, calculated by the size of interest income, on financial results. It is evident from table 13 that the F. Sig value of 0.003 is less than the amount of 0.05. The second hypothesis is therefore accepted, implying that the financial performance of the Bangladesh Specialized Bank is influenced by the size of the bank.
Table 13: ANOVA a
| Model | df | F | Sig. | Results | Inference |
| Regression | 1 | 17.784 | .003b | Sig Diff. | Accept H1 |
| Residual | 8 | - | - | - | - |
| Total | 9 | - | - | - | - |
The findings of this study revealed that based on their total deposits, total credits, total assets and total shareholder equity, Bangladesh Krishi Bank is perceived to be the first. The study also found that Probashi Kallyan Bank is in a higher position than Bangladesh Krishi Bank based on its Return on Asset (ROA), Return on Equity (ROE) and Return on Deposit (ROD), but Bangladesh Krishi Bank is in a higher position based on Return on Investment. Based on the Probashi Kallyan Bank profit margin ratio, it is ranked first, but the first is considered to be Bangladesh Krishi Bank for interest income ratio. The results of the study show that a bank with higher predictors of total assets, loans, deposits, or shareholder equity does not necessarily mean that it has better performance in terms of profitability. This study also explored the effect of these predictors on the financial performance of Bangladesh's specialized banks. The study's regression analysis showed that these banks' financial output is positively affected by the size of the bank. The outcome of this study's correlation analysis among variables that also revealed the existence of positive relationships. Finally, the study allows the management of banks to recognize operations that would improve the financial efficiency of their banks. The outcome of this study revealed that it may be important for these bank management to take all the steps necessary to increase the bank's financial positions.
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