Bonik Barta first introduced its annual ranking of the country’s top banks back in 2013, evaluating 30 listed banks based on their audited financial statements. The ranking has been published every year since, typically released around June or July. The most recent edition’s process was delayed as several banks took longer to finalize their financial reports. The twelfth edition of the ranking of Bangladesh’s listed banks has now been completed, based on the 2024 audited financial statements.

An analysis of data from 31 publicly listed banks shows that BRAC Bank PLC has been ranked the best bank in the country, followed by City Bank and Prime Bank in second and third place, respectively. Eastern Bank and Pubali Bank secured the fourth and fifth positions, while Dutch-Bangla Bank ranked sixth.

Three banks scored above 40 points this time. BRAC Bank topped the list with a score of 47.08, followed by City Bank with 44.94 and Prime Bank with 40.81. Five banks scored below 10. For the first time, BRAC Bank and City Bank both achieved net profits exceeding BDT 10 billion, earning them the highest marks in the index. The banks ranked seventh to tenth are Uttara Bank, Trust Bank, Mutual Trust Bank (MTB), and Bank Asia.

Bonik Barta skipped the 2023 ranking amid concerns over the reliability of banks’ financial statements that year and a series of financial scandals that came to light following the July 2024 Uprising. As a result, no comparison has been drawn between the current ranking and that of 2023. The 2024 ranking was prepared using seven key performance indicators, following global standards to assess the banks’ financial performance through a detailed scoring system.

Of the 36 listed banks in the capital market, 31 were considered in this year’s rankings. EXIM Bank, First Security Islami Bank, Global Islami Bank, Social Islami Bank, and Union Bank were excluded as they are undergoing merger processes. Meanwhile, NRB Bank PLC was included for the first time. As in previous years, the ranking was prepared with assistance from several corporate research teams, with LankaBangla Asset Management Company Limited playing a key role.

Globally, specific indicators are used to assess a bank’s capacity, performance, and overall financial health. These include Return on Assets (ROA), Return on Equity (ROE), Non-Performing Loan (NPL) ratio, Net Profit after Tax (NPAT), net asset value per share (NAV), Capital Adequacy Ratio (CAR), and operating profit per branch (OPB).

For the ranking, the top benchmark for ROA was set at 5 percent, for ROE at 30 percent, for NPL at 1 percent, for CAR at 20 percent, for net profit at BDT 10 billion, for NAV at BDT 100, and for OPB at BDT 100 million. Each indicator carried a maximum score of 10, with a total of 70 points across the seven indicators. Separately, Bonik Barta has also been preparing a five-indicator ranking excluding net profit and NAV, with a total score of 50.

Md Mostafa Noman, manager at LankaBangla Asset Management Company, was involved in preparing this edition’s ranking. He told Bonik Barta, “The data analysis of the ranked banks shows a wide disparity in their performances. Leading banks such as BRAC Bank, City Bank, Dutch-Bangla Bank, and Eastern Bank have maintained strong positions throughout the year. In contrast, ICB Islami Bank and National Bank have continued to perform poorly. While the overall banking sector’s ROE in 2024 stood at 7.42 percent, the median ROE among the banks we analyzed was 4.8 percent. The average ROE of the top 10 banks was 16.78 percent, clearly highlighting the performance gap across the sector. The banking sector’s CAR was 3.08 percent at the end of December 2024, while the average among the ranked banks was 5.8 percent. For the top 10 banks, the average CAR was even higher at 14.9 percent, proving their financial strength. Among all performance indicators assessed last year, non-performing loans remained the most concerning issue.”

Md Mostafa Noman further explained, “In 2024, non-performing loans (NPLs) in the banking sector increased significantly. The main reason was the change in the central bank’s loan classification policy. The new policy exposed the real problems in the banking sector that had previously been concealed. In 2024, the country’s banks faced a deposit shortfall of over BDT 2.5 trillion. More than 53 percent of this total shortfall was concentrated in Islami Bank, First Security Islami Bank, and Social Islami Bank. Such a massive deposit deficit reveals a serious and highly concentrated structural weakness in the country’s banking system. This situation has developed over the years due to weak governance and the accumulation of unrecoverable default loans that were kept hidden.”

Based on five indicators excluding net profit and NAV, the top five banks in the Top Banks 2024 ranking are BRAC Bank, City Bank, Prime Bank, Eastern Bank, and Trust Bank, with scores of 32.67, 31.50, 30.08, 27.90, and 24.73, respectively. The remaining banks in the top 10 are Uttara Bank, Mutual Trust Bank, Bank Asia, NCC Bank, and Dutch-Bangla Bank.

After three consecutive years of decline, BRAC Bank had risen to the second place back in 2022. The bank has now secured the highest position in the Top Banks 2024 ranking. BRAC Bank ranked first in both the seven- and five-indicator categories, scoring 47.08 and 32.67 points, respectively.

In the seven-indicator ranking, BRAC Bank ranked first in four categories — NPL, CAR, net profit, and OPB. It stood third in ROA and ROE, and fourth in NAVPS. BRAC Bank’s strong scores in ROA, ROE, NPL, and OPB contributed to its overall top ranking.

Tareq Refat Ullah Khan, managing director and CEO of BRAC Bank PLC, described the recognition as a matter of pride. Speaking to Bonik Barta, he said, “The core principle of BRAC Bank is ‘Do what is right.’ Every employee of the bank embodies this principle. Our operations are built on three strong pillars — trust, innovation, and inclusion. Our highest priorities are good governance, transparency, and compliance. The consistent practice of these values has played a vital role in becoming the best bank.”

He added, “More than half of BRAC Bank’s disbursed loans have gone to the country’s SME sector. Despite this, our non-performing loan ratio remains under control. Last year, we achieved the highest net profit among all banks in the country. Our capital adequacy ratio is also quite strong. BRAC Bank now stands on a solid foundation, which will enable it to perform even better in the future.”

In the Top Banks 2024 ranking, City Bank secured second place on the 70-point scale and maintained the same position on the 50-point scale. Based on seven indicators, the bank scored 44.94 in 2024, while on the five-indicator scale, it scored 31.50. Among the seven parameters, City Bank ranked first in ROE, net profit, and OPB, second in ROA, and third in NPL. However, it lagged behind in NAV (sixth) and CAR (eighth).

Mashrur Arefin, who has been serving as City Bank’s managing director and CEO for nearly six years, said the bank is evolving into a fintech company. He told Bonik Barta, “Since 2007, City Bank’s vision has been to build a true ‘financial supermarket,’ powered by automation and digital strength. Our mission was to restructure the bank’s balance sheet — launch retail loans, reshape our card business through the American Express franchise, and rethink our corporate, commercial, and medium-loan segments. Since I became CEO in 2019, our loan portfolio has truly diversified. We entered the small and microcredit segments, even introducing digital nano loans. City Bank is now the country’s top lender in the power sector, while also leading in digital nano loans as small as BDT 4,000. We’ve already disbursed around BDT 50 billion in nano loans through the bKash platform, reaching over 6.7 million borrowers in more than 10 million transactions.”

He added, “Over the past six years, our operating profit has increased from BDT 6.99 billion to BDT 23.51 billion, while net profit has grown from BDT 2.22 billion to BDT 10.15 billion. What we are seeing today is the outcome of the transformation journey that began in 2007. The board of directors has truly acted as a capable guardian during this transformation. Last year, City Bank was one of the two private banks posting net profits exceeding BDT 10 billion. Every area of banking contributed to this achievement. Even amid political and economic turbulence, we managed to keep our non-performing loans under control.”

Prime Bank ranked third in the Top Banks 2024 list, scoring 40.81 on the seven-indicator scale and 30.08 on the five-indicator scale. The bank ranked second in ROE and CAR, and fourth in ROA and net profit. However, it fell slightly behind in NPL (fifth), NAVPS (seventh), and OPB (seventh).

Regarding consistent growth, Prime Bank’s CEO Hassan O Rashid said, “Prime Bank has introduced new services based on customer needs, simplified transactions through technology, and reduced risks. As a result, the bank has established itself as a symbol of discipline, good governance, and superior customer service. The investments we made in technological development over the past few years are now paying off. We have centralized the bank’s overall operations, which is playing a significant role in improving operational efficiency and net profit. On the other hand, we have become more cautious in loan disbursement and investment decisions. Ensuring the security of customers’ deposits has been our top priority. Our accountability, transparency, and regular service have strengthened customers’ trust in us. We are committed to maintaining this continuity.”

Eastern Bank, which ranked first in the seven indicators back in 2021 and 2022 as well, has dropped to fourth place in the Top Banks 2024 ranking. The bank scored 37.66 on a 70-point scale and 27.90 on a 50-point scale. Among the seven indicators, Eastern Bank ranked first in OPB and second in NPL. It placed fifth in ROA, ROE, and net profit. However, its weaker areas are CAR (11th) and NAV (9th).

Pubali Bank continues to make progress in Bonik Barta’s annual ranking. This year, the first-generation private bank secured fifth position. Its strong points are NAVPS (2nd) and net profit (3rd). The bank also ranked sixth in ROE and seventh in ROA. However, it lagged behind in CAR (14th) and OPB (18th).

Dutch-Bangla Bank ranked sixth on the 70-point scale and tenth on the 50-point scale, with scores of 32.71 and 22.10 respectively. The bank topped the NAVPS category and placed seventh in overall net profit. It stood eighth in profit per branch but fell behind in ROA (10th), ROE (10th), CAR (12th), and NPL (13th).

Uttara Bank ranked seventh with a score of 32.30. Its strengths lie in ROA and ROE, as well as a strong position in CRR. However, the bank performed weakly in profit per branch.

Trust Bank PLC ranked eighth, scoring 31.21 across seven indicators. The bank performed strongly in profit per branch, earning full marks in that category alongside five other banks. It also fared well in ROE and net profit. However, it lagged behind in CAR, ROA, NPL ratio, and NAVPS.

Trust Bank’s Managing Director Ahsan Zaman Chowdhury said, “The strength of this bank lies in ‘trust.’ People believe that Trust Bank will never act against their confidence. We are trying to honor that trust. Modern technology is being integrated into all aspects of the bank’s operations. When we started, our paid-up capital was only BDT 200 million, which is why our CAR is relatively low. But we are working to increase our capital. I hope Trust Bank will perform even better in the coming days.”

Mutual Trust Bank ranked ninth across seven indicators and seventh across five. It scored 29.59 overall, securing sixth place in OPB and ninth in ROA, ROE, and net profit. However, the bank performed poorly in CAR, ranking 17th in that category.

Mutual Trust Bank’s Managing Director and CEO, Syed Mahbubur Rahman, told Bonik Barta, “MTB has some legacy issues, which may have caused us to fall behind in a few indicators. But we have made steady progress over the past few years. All of our operations are now automated, and we have made digital platforms easily accessible to customers. Public confidence and trust in MTB have grown. The bank has emerged as a prominent brand in every respect.”

Bank Asia ranked tenth in the seven-indicator assessment and eighth in five. It earned full marks in the profit per branch category, with each branch generating over BDT 100 million in revenue. The bank also performed well in CAR but fell behind in NPL ratio, ROA, ROE, and NAV.

NCC Bank ranked 11th across seven indicators and ninth across five. It stood seventh in CAR and tenth in OPB but lagged behind in ROA, ROE, NPL, net profit, and NAVPS.

Jamuna Bank has secured 12th place on both the 70- and 50-point scales. The bank ranks fourth in CAR, eighth in ROA and ROE, and tenth in NPL. However, it lags in net profit, NAVPS, and OPB.

Dhaka Bank ranks 13th on the seven-indicator scale and 14th on the five-indicator scale. The bank is seventh in NPL and ninth in OPB but falls behind in the other five indicators.

Midland Bank holds 14th place on the seven-indicator ranking and 11th on the five-indicator scale. The bank ranks third in CAR, fourth in NPL, and sixth in ROA but trails in ROE, OPB, net profit, and NAVPS.

Shahjalal Islami Bank appears 15th on both the seven- and five-indicator scales. It ranks 12th in OPB and 13th in CAR and net profit but falls behind in ROA, ROE, NPL, and NAVPS.

One Bank is ranked 16th in the Top Banks 2024 list. It stands 13th in OPB and 15th in ROA, CAR, and net profit but trails in ROE, NPL, and NAV.

Southeast Bank ranks 17th on both the 70- and 50-point scales. The bank is 11th in OPB but lags in ROA, ROE, NPL, CAR, net profit, and NAVPS.

Standard Bank occupies 18th place in the 2024 performance ranking. It ranks ninth in CAR but is behind in the other six indicators.

The country’s largest bank by assets and liabilities, Islami Bank PLC, ranks 19th on the seven-indicator scale and 24th on the five-indicator scale. It is third in NAVPS but trails in the remaining indicators.

United Commercial Bank holds 20th place on the seven-indicator scale and 19th on the five-indicator scale. It ranks 13th in NAVPS and 14th in OPB but lags in NPL, CAR, ROA, ROE, and OPB.

Mercantile Bank ranks 21st in 2024. While slightly ahead in NAVPS, it falls behind in NPL, net profit, ROA, ROE, CAR, and OPB.

Al-Arafah Islami Bank ranks 19th in ROE and NPL but trails in ROA, CAR, net profit, NAV, and OPB, placing the bank 22nd on the seven-indicator scale.

NRB Bank PLC, a fourth-generation bank whose board was dissolved following the student-led mass uprising in 2024, ranks 23rd. The bank scored 13.37 out of 70. Among other banks that launched in 2013, South Bangla Agriculture & Commerce Bank (SBAC) and NRB Commercial Bank rank 24th and 26th, respectively.

NRB Bank Chairman Iqbal Ahmed OBE told Bonik Barta that the bank is recovering after its board was reconstituted. “The board and management are sincerely working to move the bank forward. The management now has a dedicated team of committed employees. As a fourth-generation bank, our scale is still small, but we are striving to grow. This bank is the bank of dreams for expatriate Bangladeshis. To preserve that dream, the bank must perform well,” he said.

Premier Bank ranks 25th on the 70-point scale and 26th on the 50-point scale. The bank is 14th in net profit but lags in ROA, ROE, NPL, CAR, NAV, and OPB. Rupali Bank, the only state-owned bank listed on the capital market, holds fifth place in NAVPS but falls behind in the other six indicators, ranking 27th overall. IFIC Bank is 28th, trailing in ROA, ROE, NPL, CAR, net profit, and OPB. Banks that fall behind in all indicators — AB Bank, National Bank, and ICB Islamic Bank—rank 29th, 30th, and 31st, respectively.

Capital reserve is a crucial factor in the ranking. A bank’s reserves are linked to its net profit and capital adequacy. If a bank has a reserve shortfall, it affects both net profit and CAR. Among the 31 banks included in the Top Banks 2024 ranking, 16 had significant reserve shortfalls at the end of 2024. These included Islami Bank (BDT 660.62 billion), National Bank (BDT 207.01 billion), AB Bank (BDT 197.7 billion), IFIC Bank (BDT 185.57 billion), Rupali Bank (BDT 153.75 billion), Premier Bank (BDT 61.88 billion), Al-Arafah Islami Bank (BDT 39.39 billion), Standard Bank (BDT 33.87 billion), United Commercial Bank (BDT 33.49 billion), One Bank (BDT 17.97 billion), Southeast Bank (BDT 15.39 billion), Mercantile Bank (BDT 17.01 billion), NRBC Bank (BDT 9.43 billion), SBAC (BDT 6.56 billion), Dhaka Bank (BDT 5 billion), and NRB Bank (BDT 2.7 billion).

These banks finalized their financial statements with the central bank’s approval under the condition that the reserve shortfall would be adjusted later. Had they been required to maintain these reserves fully, they would have reported net losses instead of net profits, and their capital adequacy ratios would have been significantly affected. This, in turn, would have influenced their rankings.