Performance Appraisal of Selected Islamic Banks in Bangladesh

Abstract

The banking system in Bangladesh plays a vital role in the progress of economic development. It works as the backbone of our economic progress and prosperity. In this paper, our attempt is to analyze the performance, development and growth of selected Islamic Banks of Bangladesh. The time span used for the study was elaborated from 2008 to 2012. For assessment, statistics were composed from five Islamic banks of Bangladesh i.e. Islami Bank Bangladesh Ltd., Al-Arafa Islami Bank Ltd., Shahjalal Islami Bank Ltd., Export Import Bank Ltd., and Social Islami Bank Ltd. There were following variables used in this research to compose statistics i.e. No. of Branches, No. of Employees, Total Deposits, Total Investments, Total Remittance, Net Income and Earning per Share. It is observed that all sample banks are achieved the strong growth of employees, branches, deposits, investments, remittance, net asset per value share, net income and earnings per share. The different activities of Islamic Banks have been tested by eight trend equations. Among them the trend value of branches, employees, deposits and net income are positive in case of all the selected banks. Square of correlation coefficient (r²) has also been tested for all trend equations. The r² of branches, deposits and net income is more than 0.5. It indicates that the future of the Islamic Banks in Bangladesh is very bright.

Keywords: [Islamic Banking System, Deposit, Investment]