Effect of Automation on the Performance of Commercial Banks in Bangladesh

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01. Introduction:
AB bank limited first started on line banking service in Dhaka city. After that all branches of AB bank started online banking service. By flowing AB bank limited, now all private commercial banks are providing any branch banking service by online banking technology. On line banking is one of most important service of commercial bank. All commercial banks in Bangladesh trying to improve their service by using modern technology like online banking. And time to time they are improving their performance in different parts of banking. Commercial banks are generating more revenue and deposit, providing more advance, generating more assets and maximizing equity. All of these are possible for efficient and faster service. I decide to work on effect of automation on the performance of private commercial bank because I belief banking automation has a big effect on total banking performance of commercial bank in Bangladesh. So I tried to find that effect.

1.1. Objectives of the Study:
This study is aimed at providing me invaluable practical knowledge about banking operation. Especially online banking in Bangladesh. Major objectives of the study are as follows:

1.5.1. To asses the degree of automation of commercial bank.

1.5.2 To examine the impact of automation on performance of commercial bank.

1.2. Purpose:
Knowledge and learning become perfect when it is associated with theory and practice. Theoretical knowledge gets its perfection with practical application. As our educational system predominantly text based, inclusion practical orientation program, as an academic component is as exception to the norm. As the parties’ educational institution and the organization substantially benefit from such a program, it seems a "win-win situation". It establishes contracts and networking contracts. Contracts may help to get a job. That is, students can train and prepare themselves for the job market. A poor country like Bangladesh has an overwhelming number of unemployed educated graduates. As they have no internship experience they have not been able to gain normal professional experience or establish networking system, which is important in getting a job. That's why practical orientation is a positive development in professional area. Recognizing the importance of practical experience, Faculty of Business Studies has introduced a three months practical exposure as a part of the curriculum of Bachelor of Business Administration program. In such state of affairs the present aiming at analyzing the experience of practical orientation I did intern under Dr. Md. Sadiqul Islam.

1.3. SCOPE:
The report covers about online banking performance of all private commercial bank in Bangladesh, and the impact of online banking on


2.1. Methodology:
This report has been prepared on the basis of experience gather during the period of internship. For preparing this report, I have undergone group discussion, collected data and sent some questionnaires to the selected person and interviewed with some of them. I also studied different circulars and files of the bank information provide over internet, annual report and DSE library.

2.1.1. Technique of Analysis:
The effect of automation on the performance of commercial banks is examined by cross tabulation and regression analysis. The average of performance indicator was estimated for automated branches and non-automated branches. Since the cross tabulation show the effect of factors on the performance. A regression analysis was conducted, an ordinary least sequence regression was not appropriate for the cross sectional time series data. Such a random effect generalized least sequence regression was conducted on the key performance indicators....
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