The profitability of the banking sector in Bangladesh is the lowest in South Asia due to the prevalence of higher non-performing loans, lower efficiency, and an elevated level of costs of funds.
The return on assets (ROA), also known as profitability, was 0.52 percent in Bangladesh in 2022 and it further slipped to 0.43 percent in June last year, Bangladesh Bank data showed.
In 2022, the ROA was 5 percent in the Maldives, 2.05 percent in Nepal, 1.98 percent in Bhutan, and 1.48 percent in Pakistan, according to data from central banks of the respective countries and media reports.
In…