Performance Comparison of HBL and UBL after Privatization

Abstract

Privatization is a catchall term for the transfer of operating and/or financial control of State Owned Enterprises to the private sector. It is a process where by the activities of enterprises that was once performed operated by the government and its employees, are performed, managed or owned by private business and individuals. The present study specifically examines the performance comparison of UBL & HBL after privatization in Pakistan, the two largest commercial banks in the banking industry in terms of assets, which were privatized 2002 & 2004. This study aimed to see the performance of UBL & HBL after their privatization. For this purpose ratios and trend analysis were used to examine the performance of both the banks. The study takes into account the data from year 2002-2006. It has been observed from the analysis that after privatization, the performance of bank has improved to some extent both from financial and operational point of view. The study concludes that the decision to privatize UBL & HBL was a good decision as the banks have not only become more competitive and efficient but also the qualities of customer services and products have improved after privatization.