CAMEL-Based Performance of a Foreign Bank in Bangladesh: A Study on Commercial Bank of Ceylon

Abstract

The paper examined the strategic, operational, and financial performance of Commercial Bank of Ceylon Bangladesh Operations using its CAMEL-based performance record. For this study, financial data from the last seven years and organizational historical information, including updates to management structure, were collected. In addition, primary source of practical working experience and observance provided detailed operational information. Analysing the financial data through various key ratios and conducting CAMEL rating analysis has presented a thorough view from different sectors of the bank performance over time, which has ranged from outstanding to satisfactory in all sector parameters except for liability management. Comparison against local industry average has showed that the bank has been in quite a good position in local economy in terms of recent crises such as Non-Performing Loan (NPL) than banking industry. Despite the recommendation for an increase in manpower and promotion that will result in a decrease in liability, the paper also suggests an emphasis on reducing liability.