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Table of Contents
Chapter 1..............................................................................................................................3
Introduction..........................................................................................................................3
Overview of Islamic Banking..............................................................................................3
Background of Islamic Banking......................................................................................3
Content offer by the Islamic banking..............................................................................4
ecent !istorical Background of Islamic Banking........................................................."
#tate level Islamic banking..............................................................................................$
Overview of Conventional Banking....................................................................................%
&odern Banking............................................................................................................1'
(evelopment of &odern Banking.................................................................................11
Banking in Indo)*akistan #ubcontinent........................................................................11
Banking in *akistan.......................................................................................................1+
Introduction of &ee,an Bank........................................................................................1"
+''3...........................................................................................................................1"
+''4...........................................................................................................................1-
+''$...........................................................................................................................1-
+''...........................................................................................................................1-
/ision.........................................................................................................................1$
Bur0 Islamic Bank of *akistan.......................................................................................1$
/ision.........................................................................................................................1
&ission......................................................................................................................1
BankIslami *akistan td................................................................................................1
+'11 *rogress eport of BankIslami.........................................................................1%
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/ision of BankIslamic...............................................................................................+'
&uslim Commercial Bank td 2&CB..........................................................................+'
Organi,ational ole in *akistan................................................................................+1
Organi,ation Overall *erformance in *akistan.........................................................+1
/ision.........................................................................................................................++
&ission......................................................................................................................++
ational Bank of *akistan.............................................................................................++
*roducts and #ervices of B*.......................................................................................+3
/ision.........................................................................................................................+4
&ission......................................................................................................................+4
Ob0ectives..................................................................................................................+4
Chapter 5wo.......................................................................................................................+-
I567586 6/I69...................................................................................................+-
*roblem #tatement.........................................................................................................3+
esearch Ob0ectives.......................................................................................................3+
ðodology..................................................................................................................33
:inancial #tatements..................................................................................................34
;uestionnaire.............................................................................................................34
#ample #i,e...............................................................................................................34
ðod of (ata collection and 7nalysis....................................................................34
:ield 6
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7ge.................................................................................................................................3$
Interpretation..............................................................................................................3$
#tatus..............................................................................................................................3
Interpretation..............................................................................................................3
;ualification..................................................................................................................3%
Interpretation..............................................................................................................3%
Income...........................................................................................................................4'
Interpretation..............................................................................................................4'
(o you have an account with bank?..............................................................................41
9hich type of account do you have?.............................................................................4+
Interpretation..............................................................................................................4+
In which bank you have an account?.............................................................................43
Interpretation..............................................................................................................43
9hy you prefer that particular 2above type of bank?...................................................44
Interpretation..............................................................................................................44
5ime period of dealing with banking sector..................................................................4"
Interpretation..............................................................................................................4"
If you have an account with a bank then in which form you are receiving your return?
.......................................................................................................................................4-
Interpretation..............................................................................................................4-
Interpretation..............................................................................................................4
(o you have knowledge about Islamic Banking?.........................................................4%
Interpretation..............................................................................................................4%
(o you know the difference between Islamic and conventional banking....................."'
Interpretation.............................................................................................................."'
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Islamic banks are working in the same manner as conventional banks are working...."1
Interpretation.............................................................................................................."1
Islamic banks are appropriately communing Islamic banking?...................................."+
Interpretation.............................................................................................................."+
Islamic banks are offering more services as compared to conventional banks............."3
Interpretation.............................................................................................................."3
5here is a proper network of Islamic banking as compared to conventional bank in
*akistan?........................................................................................................................"4
7pplication of Islamic banking system may lead *akistan to economic development.""
Interpretation..............................................................................................................""
#ervices of Islamic banks are more costly....................................................................."-
Interpretation.............................................................................................................."-
#ervices of commercial banks are more costly.............................................................."$
Interpretation.............................................................................................................."$
Islamic methods of finance are #hariah compliant........................................................"
Interpretation.............................................................................................................."
Islamic banks are maintaining Islamic environment in their offices............................."%
Interpretation.............................................................................................................."%
Islamic banking system can make the economy of *akistan interest free.....................-'
In future Islamic banking sector will be the most successful business of *akistan
because of its #hariah compliance.................................................................................-1
Interpretation..............................................................................................................-1
Conventional banks provide more loan facilities as compare to Islamic banks............-+
Interpretation..............................................................................................................-+
Conventional banks give more return than Islamic banks.............................................-3
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Interpretation..............................................................................................................-3
>rowth rate of conventional banking is more than Islamic banking in *akistan..........-4
Interpretation..............................................................................................................-4
esults and (iscussion..................................................................................................-"
1. &ee,an bank...........................................................................................................--
7ssets >rowth of &ee,an Bank................................................................................--
Interpretation..............................................................................................................--
(eposits >rowth of &ee,an Bank.............................................................................-$
Interpretation..............................................................................................................-$
Comparison of 5otal 7ssets@ (eposits and :inancing of &ee,an Bank....................-
Interpretation..............................................................................................................-
+. BankIslamiA.............................................................................................................-%
7ssets >rowth of BankIslami....................................................................................-%
Interpretation..............................................................................................................-%
(eposits >rowth of BankIslami................................................................................$'
Interpretation..............................................................................................................$'
Comparison of 5otal 7ssets@ (eposits and :inancing of BankIslami........................$1
Interpretation..............................................................................................................$1
3. Bur0 BankA..................................................................................................................$+
7ssets >rowth of Bur0 Bank..........................................................................................$+
Interpretation..............................................................................................................$+
(eposits >rowth of Bur0 Bank..................................................................................$3
Interpretation..............................................................................................................$3
Comparison of 5otal 7ssets@ (eposits and :inancing of Bur0 Bank.........................$4
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Interpretation..............................................................................................................$4
(eposits >rowth of national bank.............................................................................$-
Interpretation..............................................................................................................$-
Interpretation..............................................................................................................$$
4. ational BankA...........................................................................................................$
7ssets >rowth of national Bank................................................................................$
Interpretation..............................................................................................................$
". &uslim commercial BankA........................................................................................$%
7ssets >rowth of muslim commercial Bank.............................................................$%
Interpretation..............................................................................................................$%
Comparison of 5otal 7ssets@ (eposits and :inancing of muslim commercial Bank.'
Interpretation..............................................................................................................'
Comparison of 5otal 7ssets@ (eposits and :inancing of national Bank....................1
Interpretation..............................................................................................................1
Chapter 3............................................................................................................................+
Conclusion.........................................................................................................................+
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Abstract
5he ma0or part of this learning to calculated the growth and performance of
Islamic banking and conventional banking in *akistan with respect to growth of 7ssets
and (eposits 5he growth rate of Islamic banking of *akistan is more than conventional
bank. 5o complete this research which was the sample of five banks and the sample
consist of two conventional and three Islamic banks that include ational bank of
*akistan 2B*@ &uslim commercial bank 2&CB@ Bur0 bank imited@ BankIslami
imited@ &ee,an Bank imited. 5o conclude this research we suggested two variables
which are growth in assets and growth in deposits. :or this purpose to check the growth
in assets and deposits we used secondary data that is obtained from the financial
statements of these related banks. 5he total assets of ational bank are on the track of
growth@ followed by assets and deposits. 9e can see that their assets were around +
million in +'' and since +'1+ they were increased to around 13 million rupees@ deposits
were around -+ million and till the last year they were around 1' million so the ational
bank growth of financing is also low but significant. 5he above table and diagram shows
the 5otal assets of ational bank from the year +''$)+'1+. It is evident from the above
table that the growth of ational banks assets started with $.+ but it is fluctuated with a
high of 1".$1 in +'')+''% and low of %.-% in +''%)+'1'@ before ending at 13.%"
in last year 2+'1+. It can be concluded from this research study that the growth ofational banks assets is significant rather it has fluctuations. It can be concluded from
this research study that the growth of &uslim Commercial banks assets is significant
rather it has fluctuations. 5he growth of assets and deposits of Islamic banks is more than
conventional banks. 5he second techni=ue used in this research was =uestionnaire.
7ccording to the =uestionnaire result the Islamic bank got more positive responses as
compared to conventional bank. 9e applied #*## on the =uestionnaire which results are
attached.
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CHAPTER 1
Introduction
Overview of Islamic Banking
5here is no doubt that overview of Islamic banking is very attractive. #ince the
medieval era 21''')1"'' 7(@ in &iddle 6ast traders and businessmen were busy in
economic transactions. 7t that time in these dealings the same economic rules were used
as by the 6uropeans.
5he Islamic finance has absorbed worldly with a physically and passion. 7lmost
-' countries interest has proliferated@ going future than Islamic world to lead the global
finance center. #o this is better way to Islamic banking to improve the Islamic banking in
overall country especially &uslim country. 6ach day@ Islamic banking achieves the new
boundaries. #ingapore leads the Islamic banking. 9hereas the world now understands the
meaning of Islamic finance industry@ in *akistan@ &r. &uhammad 7li Dinnah observes the
=uality of Islamic principle in 1%4. 7nd in his address or appointed the state bank of
*akistan 2#B*.
I shall observe with intensity of your organi,ation developing the banking
practices compatible with social life economic life and Islamic ideas. Our responsibility
to work and density present the world true Islamic concept and economic system and
social 0ustice. *akistan has a e
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9hen the center 6ast E 7sian countries become more significant trading
associates for several 6uropean companies@ they open banks inside these countries@
ma0ority of the banks were base on interest bearing financial system. 9hen trading
relationships with 6uropeans continued to grow@ such financial institutions also started
their business outside the 6urope. !owever@ even when local traders and business owners
used these institutions@ they 0ust only transferred their money from one account to other.
5he depositing and borrowing money was very limited because the local population was
not interested in taking or getting interest which was involved in these transactions.
:urthermore@ several supportive institutions which were base on the true principal of
profit and loss sharing model were also available@ but they were situated in positive
locations.
7s monetary demands improved@ it was not possible for home traders and
industry people to avoid from banking institutions that were based on interest. &ore@ such
banks were eovernments have to apply these types of banks toward cope the need of time as it was
the only choice for them@ some e
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Recent Historical Background of Islamic Banking
5hroughout the 1th@ 1% thand the initial half of the +' thcentury appro
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&any &uslim economists and #hariah #cholars tried hard subse=uently that till
the finish of 1%-'s various type of a sketch of Islamic banking may be obtainable. 5his
effort is also done by the Bankers and businessmen so that they could be succeeded to
make a model of Islamic banking which is totally applicable and practical. Conditions of
7rab countries political structure were not good for any several programs at the situation
level. But such several programs can be made in the private sector.
5he initial speculative model was base going on two)tier &udaraba@ in which
profit distribution had replaced interest in deposits and borrowing. Islamic banks should
be monetary intermediaries@ 0ust like the conservative banks@ they will abolish the interest
of the all their operations@ they would only rely on partnership and profit and loss sharing
concept. 5hey were allowed to operate re=uire deposits like conservative banks and
competitors and offer services beside fees@ appro
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5he free 6nterprise e
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Iran stated interest free of charge banking throw presenting usury without charge laws
during 1%3. 6veryone the Iranian bank was public. 7ccording to instruct of Islamic rule
followed in Iran@ the will be paid to the depositors on their deposits if their deposits are
not loyal in progress. In home and outside trade the financing is complete on the basis of
mark up@ but distribution modes participate a ma0or position in financing farming and
industry. Interests without charge loans are obtainable for the reduced to meet such
re=uirements as accommodation etc.
#udan take initiative relating to Islamic banking in 1%4 later whole financial
sector covered in it up to 1%%. In industry and agriculture sector sharing modes of
finance is used and the government has planned to sale sharing based certificates to
general public funds collected through such procedure will be used in growth pro0ect. But
the reduced economic conditions are the main hurdle in this procedure. But the current
incident of oils as rising source of community revenue is possible to make a
differentiation.
&alaysias initial formally sponsored of Islamic bank established in 1%3. :urther
banks available in the country also offer Islamic products and services. 5he overall
supervision is done by the countrys essential bank bank egara &alaysia@ which have a
panel of #hariah scholars recommend it. &alaysian Islamic economic structure allows
sale of liability instruments based scheduled receivables from auction of actual
merchandise and services and individuals based in rental. 5he supervision issues bonds
and redeemed at par but moving coupons allow economic benefits that differ. In
&alaysia@ a dynamic Islamic capital market is available and which asset base securities
are traded.
Indonesias bank &uamlat@ recogni,ed in 1%%4 under situation deference@ and
there are 4'' branches of it in whole of the country. Its economic operations pursue the
&alaysian model. 5hey are only other minor Islamic banks.
5urkey does not adopt or implemented Islamic banking on the status level@
although some Islamic banks were established under particular license in behind 's.
5hey are silent performance@ along with additional non)Islamic banks or conventional
banks.
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Islamic banking has fast growth in many countries both number and si,e around
the world like 26rrico in +''+. 7lthough the Islamic banks total assets very small
compare internationally entire worlds banking assets. 5he rate of growth is e
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confidence of these private banks and work individuals without uncertainty. 7fter
omans the bank of /enice was introduce 11"$ 7.( and the bank follow some standing
banks 133- M 134% different cities in Italy. 5he fact of &odern Banking is the14 thcentury
in Barcelona. In 14'1 >erman was formed the public bank. 5he bank perform operation@
discounting and in 14'$ also formed new public banks by 1- thcentury !amburg and
uremberg.
uremberg from 1"4 M 1""1 banks needed the commercial interest growth of
the activities of transfer. But it is not successful and 1"" establish the state bank name
Banco (i ialto in the >enoa. 7nd also 1-'% formed 7msterdam bank improve the state
bank and till performs 1$%". 1-%' the bank !umbury and perform great services of goods
in the countries and this bank deal with until 1$3 and the !umbury bank was merged
with eich bank.
"odern Banking
5he Britain ombardy merchants in 14 thcentury came into the 6ngland. 7nd
settled in ondon city and now this is ondon #treet. 5he ombardy develops the
banking document credits and also trade and product of landing. 5he British king !enry
III compulsory issue the order to increase the interest rate charge 43 per annum. 5heyearn more money and establish the money e
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+evelo,ment of "odern Banking
In 1"4 opened the 0oint stock companies act corporations and 1"" striated
shareholder liabilities of the limited company. #o in 1%1 came 11 thbank perform today.
5he efforts of the 6ngland development banks to introduced the strong banking system in
the entire world. In 1%4- the labor government of 6ngland nationali,ed the 6ngland
bank. In 1%"" British banks perform the conventional banking through hire purchase
finance undertaking the companies. 8sing the hire purchase@ purchase industry e=uipment
plant and machinery and given the industry these machineries on high interest rates.
(ifferent modern banks like commercial banks introduce consumer banks saving banks
and also investments banks 6C5.
Banking in Indo(Pakistan $ubcontinent
5he Indian society was reasonable well)known banking correct from very start.
Indian society money is medium e
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Doint stock banks
Bank of imperial
5he bank of reserve India
Banking in Pakistan
5ime of independence@ *akistan only were producing raw material or
agriculture indo)*akistan subcontinent and only 4$ scheduled bank offices in *akistan.
7ct of 1%4$ study and find out the issue of banking in *akistan. 5he committee found
that the reserve bank of India perform the role in *akistan 3' th#eptember 1%4@ so that is
the problem find to the demand liability which is not settled in *akistan and India. #o
*akistan plan and announced in Dune 1%4$. *akistan transfer assets in India. 7fter 3'
0une1%4 the number scheduled banks offices in *akistan decrease from 4$ only 1%"remain after separation. eserve bank of India closes the offices in *akistan. But the
suppression of Indian government share $" corer pay cash at the time of suppression.
>overnment of *akistan establish the state bank of *akistan Duly I@ 1%4. ;uaid)6)7,am
&uhammad 7li Dinnah was first director of the #tate Bank of *akistan and 5he :ather of
ation.
&ay 1+@ 1%4 the 2#B* control the complete banking system and control
money in *akistan. 5he primary important duty of 2#B* issues the currency note which
is difficult to *akistan because India reserve bank issue the notes. In October 1%4
*akistan issue first currency notes "@1' and 1'' rupees and state bank of *akistan
establish another bank to control the *akistan system branches so the 2#B* establish the
national bank of *akistan in 1%4% and in 1%"+ the national bank of *akistan perform
strong agency function. 1%4% control the strong banking institution and companies
system in *akistan and also open the new branches foreign banks. *reparation the
banking sector and trained man power. 1%"' Gorean 9ar offer huge boom *akistan
e
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and provide industry commerce and trade credit facilities . 1%$+ economic crisis the
demoneti,ation currency of *akistan and create difficulty in *akistan banking so the
Fulfi=ar Bhutto in 1%$3 nationali,ed the banks. #o Danuary 1%%1 pass the law
disinvestment nationali,ed and privati,ation commercial banks. Open more than 4'''
branches to give the mobili,ed e
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It is well)known that the corporate banking commercial retail banking
regularly and treasury and investment usually as front workplace while the banking hold
up is performing backside office functions 2Chin@ 7pril +'1'
Current
7ccount
Branch
Operation
:oreign
6
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Introduction of "ee'an Bank
&ee,an bank listed in G#6 and also public listed company in *akistan and first
incorporated bank on Danuary +$@ 1%%$. It started the working as a first Islamic bank in
*akistan the year was same august@ 1%%$. 7nd &ee,an bank cleared by the listed of Jstate
bank of *akistanK to start working as Islamic commercial bank in *akistan Danuary 31@
+''+@ 2#B* establish. 5he first nations complete commercial banking like 2&B. It was
introduce innovative era in Islamic banking record in *akistan with the aim of 2&Btd.
the bank follow the rules and regulations of the Islamic #arah and no compromise the
rules and regulation of Islamic shariah and it is introduce first time in *akistan complete
and true Islamic bank.
5he &ee,an bank controls 1-- branches in 4' cities of *akistan appro
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using the guidelines of ;uran and !ades. *akistan governments award the mandates of
Islamic bank for international sukuk 2Bound offer to the 8#( "'' million. &B td is the
shariah compliance structuring consultant for the elobal Islamic 6mirates bank. In +''$ the &ee,an bank
working 1'' branches in *akistan.
/004
5he total 1-- branches working and plus 3" sub)branches working more than
41 cities in the *akistan. &ee,an bank now totally led the Islamic banking in the nation.
Create the structure of &ee,an bank latest head office in Garachi. In (ecember +''@
5otal nearest 1" million financing and investment collection of local banks. 7nd 13$.-
billion compared in (ecember +''$. #hare of the Islamic banking increase " during
+''. 5he Islamic banking whole assets reached s.+$1.1 billion (ec@ +'' and +''$
assets only s.+'" billion. #o the Islamic banking assets increase s.--.1 billion in
(ecember +''. 5his is better achievement and success to increase to potential of Islamic
banking in *akistan.
&ee,an bank establishes Jshariah supervisory boardK =ualified and high
Islamic scholars working in this board. 5he shariah supervisory boards check the
activities of Islamic bank and new products approved in Islamic banking. (r & Imran
8smani checks the every transaction of banks.
5ision
#et up Islamic banking as banking of original selection to make possible the
accomplishment of a fair financial structure@ provided that a physically powerful base for
establish a transparent and 0ust the social order for mankind.
"ission
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Become a first Islamic bank@ present a one)stop store for pioneering
value)added goods and facilitate to our consumers inside the limits of #hariah@ although
optimi,ing the stakeholders assessment during an e
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(evotion
5he above points are the main vision of the Bur0 Islamic banking. 5he bur0 bank has
work 7ccording to the shariah principal. 5hey are necessary to follow it otherwise they
do not work. 7nd shariah board check and balance of every Islamic bank and they are
introduced the many method for continue the Islamic bank. 7ll Islamic bank follow these
principal that are introduced the shariah scholar.
BankIslami Pakistan 6td
BankIslami imited@ the second complete profitable bank in *akistan. BankIslami
was established in *akistan October 1@ +''4. 5he purpose of bank to focused the main
wealth of management as the center region in *akistan business. 7nd also include the
shariah compliant wholesale banking products@ incorporated financial arrangement
services@ products of third party and proprietary services in shariah complaints products
available in BankIslamic.
5he bank main purpose to establish the intense full)fledge countrywide network
and end of the +'' year@ total 1'+ branches network working in 4% cities of *akistan.
5he BankIslamic is the fastest growing network banking history in *akistan network in
addition to offer the widest system of any Islamic bank in *akistan@ bank Islamic growing
fastely in the Islamic countries.
BankIslami provide the facilities to our customers like Jvisa (ebit Islamic cardK
globally accepted with outstanding features. 7nd also provide
75& cash facilities
Coverage of accidental takaful
&obile alerts #
7ccepted +$ million business outlets global
7ccepted more than 4"'' 75&s countrywide
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5he BankIslamic also brings the J&8#G8 !ome :inancingK to fulfill your dreams
homes follow the Islamic shariah ways. 5he &uskun home finance include the must be
verify the shariah board and the finance limited only s.1' million the term of payment
only +' year and only first year charge the down payment follow the shariah guiding
principle and most important in BankIslamic provide the fast processing to the customer
of BankIslami.
Islamic 7uto I0arah is the s=uarest way to fulfill your car dream.
o monthly payment till delivery
*rovide the 5akaful treatment services
*eriod of payment 3 to " year
7vailable every kind of car like new@ use@ and important
#mallest amount securities deposits
/011 Progress Re,ort of BankIslami
5otal deposits of BankIslamic s. "'."- million total 3+ of total deposits
7ssets of BankIslamic s. ".+' million total 3' assets
BankIslamic total :inancing is s.+'.111 million of +1 financing
BankIslamic total Investment is s. +1.'- million. "3 of total investment
5otal employees count 144$.employees $ in bank Islamic
+'11 is the best performance year of the BankIslami follows the shariah complaints
rules and regulations. BankIslami bank is normally known has the dawood Islamic bank
limited. 5he bank received the permit from the state bank of *akistan 2#B* from &ay
+''- and official starting the operation 7pril +$@ +''$.
5ision of BankIslamic
5he (ream of Islamic Banking to be #tandard as leading and reliable Islamic
Bank.
"ission of BankIslamic
:aithfulness
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Innovative
5houghtful our client desires
Commitment to fineness and
:ast progress of delivery solution as a growing institution
5he mission of BankIslamic provide these things and also worth of stakeholders by
contribution authentic@ shariah compliant and advance goods and services.
2Bankislamic Introduction@ &arch $@ +'1+
"uslim Commercial Bank 6td 7"CB8
&CB Bank imited have a hard groundwork of "' years in *akistan@ and 1'''
network branches in *akistan@ "' 7utomated Branches and also 3"' 75&s in 4' cities
countrywide 1+ banks on &CB 75& &65 control in 4' cities of *akistan.
&CB operations sustained focus on good reason and smooth productivity increase in
dispensation customer services and customer standards to provide the customer and also
bank introduce the better concept@ innovative ideas to trade services to improve the
=uality and efficiency of the bank and reduce the cost of banking with concern banking
e
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6specially this bank was established to provide the better banking services and
opportunity to south 7sian business community persons. But during the Fulfi=ar 7li
Bhutto >overnment all banks nationali,ed with &CB Bank in 1%$4. But the first bank
was privati,ed in 1%%1 ame &CB Bank. 5his was purchased ishat >roup.
&CB asset base fourth biggest bank in *akistan total asset of &CB is 8#H-. billion@ and
also large market in *akistan like capital market is 8#H 4'1 billion. 7ppro
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consumers. In responsibility so@ we guarantee that our shareholders can put in with
confidence in us.
9ational Bank of Pakistan
B* was start on ovember @ 1%4% during transitory of a uni=ue ordinance in
the *akistan parliament 7ssembly. 5he country need to bank working in the bank because
*akistan 0ust now born country was in front of economics crises. #o *akistan establishes
the central bank of *akistan on Duly 1%4.
Central bank of *akistan formed the ational bank of *akistan according to the
companys ordinance 1%4% and scheduled all *akistan stock e
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5oday the national bank performance is increased and efficient customer satisfaction
institution. It has urbani,ed wide range of manufactured goods and creates the diverse
segments of society. But B* design some handsome scheme low and middle income
persons who is not afford some products.B* scheme includes the B* gold and cash@
B* gives the 7dvance salary@ B* agriculture (ost@ etc. and also particular recognition
;ar,)e)!asna loan #cheme to the students. 7nother scheme like 0obless scheme@
transport public scheme@ employment scheme@ introduce and establish the 2B*.
2Introduction of ational Bank of *akistan@ ovember @+''$
Business volume of 9BP
(esignation 5otal 6mployees
6
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discharge our liability as a batter business resident of *akistan and in country wherever
we operates
Ob#ectives
5he aim of our study is to analy,e and evaluate the performance of new
Islamic commercial banks with same si,e of the conventional banks organi,e to sketch
the conclusion to the new Islamic banking can work in a competitive benefit and get
together the growth of their depositors. 5he reason of the learning to discover the
development of Islamic and conventional banking in *akistan. 9e have compare the
7ssets
(eposits
financing
7nd branches network in both Islamic and conventional banking in *akistan.
we find out the people knowledge and feelings about Islamic and conventional banking
through Islamic banking and conventional banking history and different banks
introduction find and analysis the performance of the branches of Islamic and
conventional banking which one is better performance in *akistan and customer is satisfy
the Islamic banking and conventional banking whether they know the difference bPw
conventional and Islamic banking in *akistan
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CHAPTER T.O
6ITERAT%RE RE5IE.
"iss $amraI
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banking in interest free@ lack of e
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administration and operations as outer factors are participant and financial system 2!abib@
+''%. 5he economic and essentially made a force on together Islamic E Conventional
banking. Islamic banking fi
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Islamic Banking. &ee,an bank is *akistans first bank providing complete Islamic
banking. 5hen other banks like &CB@ :aysal Bank and B* etc are also concentrating in
this field. 5his market has a huge potential in *akistan as well as in other Islamic
countries.
5he second ma0or area is consumer financing. &any small banks are
concentrating on consumer financing but the ma0or banks especially B* is neglecting
this opportunity. #ince B* has a huge amount of deposits@ so it should also look for
opportunities in this area.
In addition to the opportunities@ there are many problems in *akistans banking
industry. 5he bankers do not have sufficient knowledge of risk management. 5here was
no concept of risk management in the recent past. But now many ma0or banks have their
own risk management units and the small banks are hiring professionals to provide them
with the security of risk management techni=ues. 7lso the implementation of 5;& is still
missing in the industry. 5here is an abrupt need of institutionali,ing 5otal ;uality
&anagement tools and techni=ues to strengthen the industry.
In the end@ the writer has given a list of areas which still need improvements like
the audit and compliance area@ implementation of anti)money laundering practices and
creation of complaint cells etc.
5his paper is the research conducted to assess the changes that took place in the
*akistani banking industry as a result of this reformation and deregulation. 5he researcher
talks about the effects on productivity@ profitability@ revenue and cost generation and
efficiency of the banks. 7lso the effects on interest rates are observed. 5he researchers
have also taken into account the competitive location of the banks af ter the improvement
and privati,ation.
7fter analy,ing the outcome@ the researchers are of the view that this step of
reformation increased both revenues and cost of the industry. 5his shows that the
borrowers and the lenders are both given e=ual benefits from the step. 5he overall
profitability of the industry remains almost the same. 5he efficiency of the industry also
showed negative trend because usually in the privati,ed environment@ the ma0or banks
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+'1'. In +''3 the assets of Islamic banks were 13 billion now they have increased to 4$-
billion and divide of Islamic banking in value of assets is '.-@ which at this time better
to -. in +'1'. It has been concluded that performance of Islamic banking is
outstanding. >rowth of Islamic banking has a great increasing trend. (ue to strong
commitments of #B* towards Islamic banking they are on the track of rapid growth.
5hey have strong competition with conventional banks which creates competition and is
a great challenge for Islamic banking.7Hafsa and muna''a: ma /01/8
Islamic banking is a current incident as compare to the conventional banking
which operates and used for additional century. Islamic banking operates the threat
distribution concept as a substitute of iba and interest in conventional banking. Islamic
banks appropriate to its ma0or development is assets entire the globe have proved their
survival in on &uslim countries and also opening Islamic branchesPwindows to provide
the rising demand for its foodstuffs and services. 7Olson > ?oubi: /0048
5he conventional bank 2CB s differs in speculation and observes from Islamic
Bank 2IB. 5he ma0ority of differences can be summari,ed by stating that 5Bs
organi,ation is a debt)based and it allows for threat remove. 9hile IBs organi,ation is
asset)based and it is allow for risk distribution 2!asan E (ridi@ +''-.
5he learning of &alaysian banking customers create that a high stage of knowledge
about Islamic banking but lack of information of Islamic banking goods and products@
including lack of consideration of the differentiation among Islamic and conventional
banking. &ostly *eople know the conventional banking products and services and they
used these products against long@ short and medium term loans and deposits. 5hey also
believed that improved customer education will support in making people further
attentive of Islamic banking products.Hamid and 9ordin: /0018
7Barat!a: Arunagiri > Ravindran: /0118 Conducted a study on consumer
preferences of the products and services of Islamic banking to investigate the reasons that
why consumers prefer products and services of Islamic banking as compare to
conventional banking. But in past mostly people preferred conventional banking products
and services in their research they found that three variables awareness@ =uality and
profitability influence consumers to prefer Islamic banking. ;uality and profitability have
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higher degree of influence on consumers regarding Islamic banking. 5hey also said that
Islamic banks should improve their =uality and profitability. 5hey should take steps to
create awareness among the consumers regarding Islamic banking products and services
79aveed > @as!if(ur(Re!amn: /0108 5hey conducted a study in *akistan in order to
get information about the Islamic banking customers@ their usage and their awareness
regarding Islamic banking products and services. 5heir research findings e
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Researc! Ob#ectives
5he ob0ectives of this study are divided into two parts
1. 9hat is the development of Islamic banking?
5he ma0or part of this learning to calculated the growth and performance of
Islamic banking and conventional banking in *akistan with respect to growth of
i 7ssetsii (eposits
+. 9hat is the peoples attitude and knowledge about Islamic banking and
conventional banking?
5he other ob0ective of this study is the evaluation that do people have
knowledge of Islamic banking and conventional banking@ whether they know the
difference between Islamic banking and conventional banking or not and also to
study their attitude regarding their working pattern@ its compliance with #hariah@
its network@ services and their future prospect in *akistan.
"et!odolog
In order to calculate the growth of Islamic banking I am intended to take
=uantitative data available on the sites of Islamic banks and conventional banks. :or this
purpose three Islamic banks 2&ee,an Bank@ BankIslami and Bur0 Bank and two
conventional banks 2&uslim commercial Bank@ ational Bank of *akistan have been
selected.
5o investigate the customer attitude and knowledge a =uestionnaire has been
designed to collect =ualitative data. #*## and 6
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&uestionnaire
5he final draft of =uestionnaire consists of +4 =uestions e
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Inter,retation
In this =uestion different age of people did participate. 5here were 1+ people
who were less than +' of age. 5here were -4 people who were less than +1)3' of age.5here were +4 people who were less than 31)4' of age
/alid :re=uency *ercent /alid *ercent Cumulative *ercent
ess than +' - 1+.' 1+.' 1+.'
+1)3' 3+ -4.' -4.' $-.'
31)4' 1+ +4.' +4.' 1''.'
5otal "' 1''.' 1''.'
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$tatus
/alid :re=uency *ercent /alid *ercent Cumulative *ercent
#ingle ++ 44.' 44.' 44.'
&arried + "-.' "-.' 1''.'
5otal "' 1''.' 1''.'
.
Inter,retation
In this =uestion different status of people did participate. 5here were 44 people
who were single. 5here were "- people who were married
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&ualification
/alid :re=uency *ercent /alid *ercent Cumulative *ercent
Intermediate +4 4.' 4.' 4.'
Bachelor 13 +-.' +-.' $4.'
&aster - 1+.' 1+.' -.'
Other $ 14.' 14.' 1''.'
5otal "' 1''.' 1''.'
.
Inter,retation
In this =uestion different =ualification of people did participate. 5here were 4
people who were intermediate. 5here were +- people who were bachelor degree holder.
5here were 1+ people who were master degree holder. 5here were 14 people who
were other degree holders like 7CC7 or C
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Income
/alid :re=uency *ercent /alid *ercent Cumulative *ercent
1'''' or below 1 +.' +.' +.'
1'''')4'''' +% ".' ".' -'.'
4'''1)$'''' 1" 3'.' 3'.' %'.'
$'''1)1''@''' " 1'.' 1'.' 1''.'
5otal "' 1''.' 1''.'
Inter,retation
In this =uestion different income of people did participate. 5here were + people
whose income was J1'@''' or belowK. 5here were " people whose income was
J1'@''')4'@'''K. 5here were 3' people whose income was 4'''1)$''''. 5here were
1' people whose income was $'''1)1''@'''.
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+o ou !ave an account wit! bankF
/alid :re=uency *ercent /alid *ercent Cumulative *ercent
Qes "' 1''.' 1''.' 1''.'
Inter,retation
In this =uestion all people had banks account
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.!ic! t,e of account do ou !aveF
/alid :re=uency *ercent /alid *ercent Cumulative *ercent
:i
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Time ,eriod of dealing wit! banking sector
/alid :re=uency *ercent /alid *ercent Cumulative *ercent
ess than 1 year " 1'.' 1'.' 1'.'
1)" 3" $'.' $'.' '.'
-)1' $ 14.' 14.' %4.'
11)1" 3 -.' -.' 1''.'
5otal "' 1''.' 1''.'
Inter,retation
In this =uestion there were 1' people who have less than 1 year of e
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+o ou !ave knowledge about Islamic BankingF
/alid :re=uency *ercent /alid *ercent Cumulative *ercent
Qes 3" $'.' $'.' $'.'
o 1" 3'.' 3'.' 1''.'
5otal "' 1''.' 1''.'
Inter,retation
In this =uestion there were $' people who had Islam banking knowledge. 5here
were 3' people who not had Islam banking knowledge
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+o ou know t!e difference between Islamic and conventional
banking
/alid :re=uency *ercent /alid *ercent Cumulative *ercent
Qes 3+ -4.' -4.' -4.'
o 1" 3'.' 3'.' %4.'
eutral 3 -.' -.' 1''.'
5otal "' 1''.' 1''.'
Inter,retation
In this =uestion there were -4 people who know about Islamic and conventional
banking. 5here were 3' people who dont know about Islamic and conventional
banking. 5here were - people who neutral about Islamic and conventional banking.
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Islamic banks are working in t!e same manner as
conventional banks are working
/alid :re=uency *ercent /alid *ercent Cumulative *ercent
Qes 3$ $4.' $4.' $4.'
o 13 +-.' +-.' 1''.'
5otal "' 1''.' 1''.'
Inter,retation
In this =uestion there were $4 people who think Islamic and conventional
banking are same. 5here were +- people who think Islamic and conventional banking
are not same.
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Islamic banks are a,,ro,riatel communing Islamic bankingF
/alid :re=uency *ercent /alid *ercent Cumulative *ercent
#trongly 7gree 3 -.' -.' -.'
7gree 1" 3'.' 3'.' 3-.'
(isagree 31 -+.' -+.' %.'
#trongly (isagree 1 +.' +.' 1''.'
5otal "' 1''.' 1''.'
Inter,retation
In this =uestion there were - people who ticks strongly agree. 5here were 3'
people who ticks agree. 5here were -+ people who ticks disagree and there were +
people who ticks strongly disagree
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Islamic banks are offering more services as com,ared to
conventional banks
/alid :re=uency *ercent /alid *ercent Cumulative *ercent
#trongly 7gree 3 -.' -.' -.'
7gree 1" 3'.' 3'.' 3-.'
(isagree 31 -+.' -+.' %.'
#trongly (isagree 1 +.' +.' 1''.'
5otal "' 1''.' 1''.'
Inter,retation
In this =uestion there were - people who ticks strongly agree. 5here were 3'
people who ticks agree. 5here were -+ people who ticks disagree and there were +
people who ticks strongly disagree
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T!ere is a ,ro,er network of Islamic banking as com,ared to
conventional bank in PakistanF
/alid :re=uency *ercent /alid *ercent Cumulative *ercent
#trongly 7gree 3- $+.' $+.' $+.'
7gree 14 +.' +.' 1''.'
5otal "' 1''.' 1''.'
Inter,retation
In this =uestion there were $+ people who ticks strongly agree. 5here were +
people who ticks agree.
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$ervices of Islamic banks are more costl
/alid :re=uency *ercent /alid *ercent Cumulative *ercent
#trongly 7gree 1-.' 1-.' 1-.'
7gree +- "+.' "+.' -.'
(isagree 1-.' 1-.' 4.'
#trongly (isagree 1-.' 1-.' 1''.'
5otal "' 1''.' 1''.'
Inter,retation
In this =uestion there were 1- people who ticks strongly agree. 5here were "+
people who ticks agree. 5here were 1- people who ticks disagree and there were 1-
people who ticks strongly disagree
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$ervices of commercial banks are more costl
/alid :re=uency *ercent /alid *ercent Cumulative *ercent
#trongly 7gree 1-.' 1-.' 1-.'
7gree - 1+.' 1+.' +.'
(isagree + "-.' "-.' 4.'
#trongly (isagree 1-.' 1-.' 1''.'
5otal "' 1''.' 1''.'
Inter,retation
In this =uestion there were 1- people who ticks strongly agree. 5here were 1+
people who ticks agree. 5here were "- people who ticks disagree and there were 1-
people who ticks strongly disagree
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Islamic banking sstem can make t!e econom of Pakistan interest
free
/alid :re=uency *ercent /alid *ercent Cumulative *ercent
#trongly 7gree 1" 3'.' 3'.' 3'.'
7gree 4 .' .' 3.'
(isagree 13 +-.' +-.' -4.'
#trongly (isagree 1 3-.' 3-.' 1''.'
5otal "' 1''.' 1''.'
Inter,retation
In this =uestion there were 3' people who ticks strongly agree. 5here were
people who ticks agree. 5here were +- people who ticks disagree and there were 3-
people who ticks strongly disagree.
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In future Islamic banking sector will be t!e most successful
business of Pakistan because of its $!aria! com,liance
/alid :re=uency *ercent /alid *ercent Cumulative *ercent
Qes +3 4-.' 4-.' 4-.'
o +- "+.' "+.' %.'
eutral 1 +.' +.' 1''.'
5otal "' 1''.' 1''.'
Inter,retation
In this =uestion there were 4- people who tick yes. 5here were "+ people who
ticks o. 5here were + people who ticks disagree and there were 3- people who ticks
strongly disagree
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Conventional banks ,rovide more loan facilities as com,are
to Islamic banks
/alid :re=uency *ercent /alid *ercent Cumulative *ercent
Qes 3- $+.' $+.' $+.'
o 14 +.' +.' 1''.'
5otal "' 1''.' 1''.'
Inter,retation
In this =uestion there were $+ people who ticks Qes. 5here were + people
who ticks o.
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Conventional banks give more return t!an Islamic banks
/alid :re=uency *ercent /alid *ercent Cumulative *ercent
Qes 4' '.' '.' '.'
o 1' +'.' +'.' 1''.'
5otal "' 1''.' 1''.'
Inter,retation
In this =uestion there were ' people who ticks Qes. 5here were +' people
who ticks o.
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5he trade of Islamic banking continued its development throughout the last five years
regardless of diversify confronts the nation have been face. (evelopment of the Islamic
banks should be measured during a variety of factors. 7long with these factors@ there
include figure of branches@ enlarge in entire assets@ amount of deposits@ amount of
investment and number of employees.
5he growth of Islamic banking has been calculated on the basis of individual bank
performance by taking a sample of 3 full)fledged Islamic banks and + conventional
banks.
1 "ee'an Bank
/ Bur# Bank
BankIslami Pakistan
2 "uslim commercial bank
G 9ational bank of Pakistan5he growth of these banks has been calculated for the period of five years to get a
clear understanding of their position in banking industry.
5he following formula has been used to calculate per year growth
>rowth rate R 7-5P581t (1J
:/R :uture value */R *resent value
1 "ee'an bank
Assets rowt! of "ee'an Bank
Amount in millions
Kears Total Assets rowt! in L
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/003(/004 "@+$- +-.%3
/004(/00= 1+4@1-% 4".-1
/00=(/010 1"4@$"+ +4.-4
/010(/011 +''@""' +%."%
/011(/01/ +$4@43- 3-.4
-igure /1
2007-2008 2008-2009 2009-2010 2010-2011 2011-20120.00%
5.00%
10.00%
15.00%
20.00%25.00%
30.00%
35.00%
40.00%
45.00%
50.00%
Growth in %
Growth in %
Inter,retation
5he above table and diagram shows the 5otal assets of &ee,an bank from the
year +''$)+'1+. It is evident from the above table that the growth of &ee,an banks
assets started with +-.%3 in +''$)+'' but it is fluctuated with a increase of 4".-1 in
+''$)+'' and after +'' fluctuating the growth increase and decrease like end of +'11)
+'1+@ 3-.4.it can be concluded from this research study that the growth of &ee,an
banks assets is significant rather it has fluctuations.
+e,osits rowt! of "ee'an Bank
Amount in millions
Kears Total +e,osits rowt! in L
/003(/004 $'@+34 +%.''
/004(/00= 1''@333 43.''
/00=(/010 131@'$' 31.''
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/010(/011 1$'@'3' 3'.''
/011(/01/ +3'@4+" 3"."+
-igure //
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
45.00%
50.00%
Growth in %
Growth in %
Axis Title
Inter,retation
5he above table and diagram shows the growth of total deposits of &ee,an bank
in presented. 5he total deposit growth +%.'' in +''$)+'' but after this year increase
the growth 43 in +'')+''% but ended in the last year 2+'1+ 3"."+ so fluctuating the
deposit growth of &ee,an bank
Com,arison of Total Assets: +e,osits and -inancing of "ee'an Bank
Amount inmillions
Kears 5otal 7ssets 5otal (eposits/003(/004 "@+$- $'@+34
/004(/00= 1+4@1-% 1''@333
/00=(/010 1"4@$"+ 131@'$'
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/010(/011 +''@""' 1$'@'3'
/011(/01/ +$4@43- +3'@4+"
-igure /
2007-2008 2008-2009 2009-2010 2010-2011 2011-2012
0
50,000
100,000
150,000
200,000
250,000
300,000
Total Assets
Total Deposits
Inter,retation
5he above table and diagram show a comparison of &ee,an banks total assets@
deposits and financing. It can be noted that all three factors were rising with the time but
their increment is not same as shown in the table. In the fig 1." a comparison of all three
factors is presented. Increment in total assets was higher than financing and deposits. It is
also evident from the above fig that the rise is total financing of &ee,an bank is
significantly low as compared to total assets and financing.
/ BankIslami;
Assets rowt! of BankIslami
Amount in millions
Kears Total Assets rowt! in L
/003(/004 1%@'" 3+.11
/004(/00= 34@+$+ $%."
/00=(/010 4"@'3- 31.41
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/010(/011 "@+1 3'.-1
/011(/01/ $4+3- +-.+'
-igure /2
2007-2008 2008-2009 2009-2010 2010-2011 2011-2012
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
90.00%
Growth in %
Growth in %
Inter,retation
Bank Islamic is the +ndlargest Islamic bank in *akistan. :rom table and fig total
assets it can be 0udged that in the earlier years of their formation they have low growth in
their assets 3+.11@ but +'')+''% increase the tremendous growth of $%." this shows
their strength in the banking industry year but after+''%) +'1' it dropped to 31.41 and
+-.+' respectively.
+e,osits rowt! of BankIslami
Amount in millions
Kears Total +e,osits rowt! in L
/003(/004 1+@4$ +".-1
/004(/00= +$@%$ 1+4.+%/00=(/010 3@1% 3-.4
/010(/011 "'@"-% 3+.3%
/011(/01/ -4+1- +-.%
-igure /G
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2007-2008 2008-2009 2009-2010 2010-2011 2011-2012
0.00%
20.00%
40.00%
60.00%
80.00%
100.00%
120.00%
140.00%
Growth in %
Growth in %
Inter,retation
5he table and fig are showing that BankIslami has got a low share of public trust
in form of deposits in the first year of their operation as the growth rate of their deposits
in the 1styear was around +".-1 it was low deposits. In ne
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0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
Total Assets
Total DepositsAxis Title
Inter,retation
5he :ig and table are evident that total assets of BankIslami are on the track of
growth@ followed by deposits and financing. 9e can see that their assets were around 1%
million in +'' and since +'1+ they were increased to around $4 million rupees@ deposits
were around 1+ million and till the last year they were around -4 million so the &ee,an
bank growth of financing is also low but significant.
Bur# Bank;
Assets rowt! of Bur# Bank
Amount in millions
Qears Total Assets rowt! in L/003(/004 %@41 3.4'
/004(/00= 13@''% 3$.+1
/00=(/010 1$@-$- 3".%'
/010(/011 +$@-4" "-.4'/011(/01/ 4$@1" $'.-1
-igure /3
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2007-2008 2008-2009 2009-2010 2010-2011 2011-2012
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
Growth in %
Growth in %
Inter,retation
Bur0 Bank is also a growing Islamic bank of *akistan. 5heir total assets and
growth is obtainable in the table and figure from the table it can be seen that their total
assets are increasing rapidly. 5he amount of total assets was around % million in +''$)
and with a growth rate of 3.4'. In the period of +'')% the amount of their assets rose
with a growth rate of 3$.+1 and became 13''% million. 5heir growth rate was 3".%'
in +''%)1' slightly lower than the previous year and total assets were 1$-$- million. In
the period of +'1')11 there was an upward trend in the growth of assets. 5he growth rate
was "-.4' in that period with the 4$@1" million of total assets.
+e,osits rowt! of Bur# Bank
Amount in millions
Qears Total +e,osits rowt! in L/003(/004 "@'-3 3G/GL
/004(/00= -@$" 200L
/00=(/010 1+@-3- 4M/L
/010(/011 +'@341 M0=4L
/011(/01/ 3"%++ 3MG4L
-igure /4
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2007-2008 2008-2009 2009-2010 2010-2011 2011-2012
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
90.00%
100.00%
Growth in %
Growth in %
Inter,retation
(eposits growth of Bur0 bank is presented in table and figure. It can be noted that
there persists a great fluctuation in the growth of deposits. 7s it shown in figure 3.+ the
growth rate for +''$) was $".+" but ne
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2007-2008 2008-2009 2009-2010 2010-2011 2011-2012
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
50,000
Total Assets
Total Deposits
Inter,retation
5he progress of Bur0 banks is relatively is low as compared to previous two banks
but still it is satisfactory because it is new and it was formally known as (awood Islamic
Bank but later it was purchased by Bur0 Bank. Its financing progress is very low but it
continues to growing by leaps and bounds.
Argument
5he purpose of this reading was to calculate the development rate of the &ee,an
Bank@ BankIslami@ Bur0 Bank in terms of assets@ deposits@ financing and also to calculate
for the period of +'')1+. 5he growth of deposits@ assets and financing were determined
with the help of growth rate formula given at the start of this chapter. >rowth rates of
these banks are also given in graphical form to enhance the understanding and to derive
the better results.
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+e,osits rowt! of national bank
Amount in millions
Qears Total +e,osits rowt! in L/003(/004 -+4%3% GG4L
/004(/00= $+$"13 1M21L
/00=(/010 3+134 124L
/010(/011 %+$41' 1122L
/011(/01/ 1'3'%4 11=L
-igure /10
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2007-2008 2008-2009 2009-2010 2010-2011 2011-2012
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
16.00%
18.00%
Growth in %
Growth in %
Inter,retation
5he above table and figure shows that the growth of total deposits of ational
bank presented. It can be seen that from the above table that total deposits of ational
bank are decreasing with the time that shows their low position in the industry. But after
+''$) increase the deposits very high as compare to previous year increase 1-.41 in
+'')% and then against decrease every year 14.3 and 11.%3 in +''%)1' and +'11)
1+.
+e,osits rowt! of muslim commercial bank
Amount in millions
Qears Total +e,osits rowt! in L/003(/004 33'11 10L
/004(/00= 3-$"1 11/L
/00=(/010 431+%" 13L/010(/011 4%114- 143L
/011(/01/ "44% 10=ML
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2007-2008 2008-2009 2009-2010 2010-2011 2011-2012
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
16.00%
18.00%
20.00%
Growth in %
Growth in %
Inter,retation
5he above table and figure shows that the growth of total deposits of &uslim
commercial bank in presented. . It can be seen that from the above table that total
deposits of &uslim commercial bank are increasing with the time that shows their strong
position in the industry. But after +''$) decrease the deposits 11.3+ but ne
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2007-2008 2008-2009 2009-2010 2010-2011 2011-2012
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
16.00%
18.00%
Growth in %
Growth in %
Inter,retation
5he above table and diagram shows the 5otal assets of ational bank from the
year +''$)+'1+. It is evident from the above table that the growth of ational banks
assets started with $.+ but it is fluctuated with a high of 1".$1 in +'')+''% and low
of %.-% in +''%)+'1'@ before ending at 13.%" in last year 2+'1+.it can be concluded
from this research study that the growth of ational banks assets is significant rather it
has fluctuations.
G "uslim commercial Bank;
Assets rowt! of muslim commercial Bank
Amount in millions
Qears Total Assets rowt! in L/003(/004 443-1" .'$
/004(/00= "11$41 1".3"
/00=(/010 "$'41 11.4$
/010(/011 -"-3+4 1".'4
/011(/01/ $$'++ 1$.3-
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2007-2008 2008-2009 2009-2010 2010-2011 2011-2012
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
16.00%
18.00%
20.00%
Growth in %
Growth in %
Inter,retation
5he above table and diagram shows the 5otal assets of &uslim Commercial bank
from the year +''$)+'1+. It is evident from the above table that the growth of &uslim
Commercial banks assets started with .'$4 but it is fluctuated with a high of 1".3"
in +'')+''% and low of 11.4$ in +''%)+'1'@ before ending at 1$.3- in last year
2+'1+.it can be concluded from this research study that the growth of &uslim
Commercial banks assets is significant rather it has fluctuations.
Com,arison of Total Assets: +e,osits and -inancing of muslim commercial Bank
Amount in
millions
Kears Total Assets Total +e,osits
/003(/004 443-1" 33'11
/004(/00= "11$41 3-$"1
/00=(/010 "$'41 431+%"
/010(/011 -"-3+4 4%114-/011(/01/ $$'++ "44%
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2007-2008 2008-2009 2009-2010 2010-2011 2011-2012
0
100000
200000
300000
400000
500000
600000
700000
800000
900000
Total Assets
Total Deposits
Inter,retation
5he :ig and table are evident that total assets of &uslim Commercial bank are on
the track of growth@ followed by assets and deposits. 9e can see that their assets were
around 44 million in +'' and since +'1+ they were increased to around $$ million
rupees@ deposits were around 33 million and till the last year they were around "4 million
so the &uslim Commercial bank growth of financing is also low but significant.
Com,arison of Total Assets: +e,osits and -inancing of national Bank
Amount in
millions
Kears Total Assets Total +e,osits
/003(/004 1$$" -+4%3%
/004(/00= %4-+"3 $+$"13
/00=(/010 1'3'1 3+134/010(/011 11"4%-- %+$41'
/011(/01/ 131-1-' 1'3'%4
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2007-2008 2008-2009 2009-2010 2010-2011 2011-2012
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
Total Assets
Total Deposits
Inter,retation
5he :ig and table are evident that total assets of ational bank are on the track of
growth@ followed by assets and deposits. 9e can see that their assets were around +
million in +'' and since +'1+ they were increased to around 13 million rupees@ deposits
were around -+ million and till the last year they were around 1' million so the ational
bank growth of financing is also low but significant.
CHAPTER
Conclusion
5he growth rate of Islamic banking of *akistan is more than conventional bank.
5o complete this research which was the sample of five banks and the sample consist of
two conventional and three Islamic banks that include ational bank of *akistan 2B*@
&uslim commercial bank 2&CB@ Bur0 bank imited@ BankIslami imited@ &ee,an
Bank imited. 5o conclude this research we suggested two variables which are growth in
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assets and growth in deposits. :or this purpose to check the growth in assets and deposits
we used secondary data that is obtained from the financial statements of these related
banks. 5he total assets of ational bank are on the track of growth@ followed by assets
and deposits. 9e can see that their assets were around + million in +'' and since +'1+
they were increased to around 13 million rupees@ deposits were around -+ million and till
the last year they were around 1' million so the ational bank growth of financing is also
low but significant. 5he above table and diagram shows the 5otal assets of ational bank
from the year +''$)+'1+. It is evident from the above table that the growth of ational
banks assets started with $.+ but it is fluctuated with a high of 1".$1 in +'')+''%
and low of %.-% in +''%)+'1'@ before ending at 13.%" in last year 2+'1+.it can be
concluded from this research study that the growth of ational banks assets is significant
rather it has fluctuations. 5he above table and diagram shows the 5otal assets of &uslim
Commercial bank from the year +''$)+'1+. It is evident from the above table that the
growth of &uslim Commercial banks assets started with .'$4 but it is fluctuated with
a high of 1".3" in +'')+''% and low of 11.4$ in +''%)+'1'@ before ending at
1$.3- in last year 2+'1+. (eposits growth of Bur0 bank is presented in table and figure.
It can be noted that there persists a great fluctuation in the growth of deposits. 7s it
shown in figure 3.+ the growth rate for +''$) was $".+" but ne