JATIYA KABI KAZI NAZRUL ISLAM UNIVERSITY

Trishal, Mymenshing-2224, Bangladesh

An assignment on Pre proposal of Research

Comparative financial performance of six Islami Bank in Bangladesh” under the basis of
assets, deposit, loan,and bad loan
(Including bank six Islami Bank are Al-Arafa Islamic Bank PLC, Islami Bank Bangladesh PLC , First Security
Islami Bank PLC, EXIM Bank PLC ,Shahajala Islami Bank PLC, Social Islami Bank PLC)

Submitted to
Monty Adttya
Assistant Professor
Department of Finance and Banking
Jatiya Kabi Kazi Nazrul Islam University

Submitted by
Joy Chandra Sarker
ID No: 19132601
Reg No: 8344
Session: 2022-2023
Department of Finance & Banking
Jatiya Kabi Kazi Nazrul Islam University

Submission Date: 21th April 2024

Table of Contents
1.Title of the Research .................................................................................................................................. 3
2.Introduction ................................................................................................................................................ 3
3.Objectives and goals ................................................................................................................................. 4
4.Research mathodology .............................................................................................................................. 5
5.Literature review ........................................................................................................................................ 6
6.Timetable and Milestones .......................................................................................................................... 7
7.Conclusion ................................................................................................................................................. 8
Bibliography .................................................................................................................................................. 8
1.Title of the Research
Comparative financial performance of six Islami Bank in Bangladesh” under the basis of assets,
deposit, loan,and bad loan

2.Introduction
In perspective of Banglaesh the Islami banks are most trustable among the private banks. The
banks are operating their business with goodwill. Among the Islami Bank I have selected six
major Islami banks these are bank Al-Arafa Islami Bank PLC, EXIM Bank PLC, First Security
Islami Bank PLC, Islami Bank Bangladesh PLC, Shahajala Islami Bank PLC and Social Islami
Bank PLC.

There are many items can be used as criteria for comparison among the banks and evaluating
performance and condition. I have selected under the basis of assets, deposit, loan,and bad
loan. Because I think so that this criteria directly and indirectly have great impact on future
growth performance and bankrupt. Here it is question why this research is important. Following
given a short descriptin.

Assets has impact on financial strength, diversification of opportunity , market influence,

customer confidence, investment opportunity , regulatory compliance cost efficiency and so
forth. Undoubtedly larger assets and smaller of a bank can clearly indicate future growth and
extension and overall present condition. In this report it is included all the assets analysis that
certainly clear the comparison of Rupali Bank PLC with bank Al-Arafa Islami Bank PLC,
EXIM Bank PLC, First Security Islami Bank PLC, Islami Bank Bangladesh PLC, Shahajala
Islami Bank PLC, Social Islami Bank PLC

The second criteria loan is an important element of bank. A bank take money as deposit from
their customer for loan out and absorb interest as profit. It involve the interest income,
diversification of revenue streams, risk management of pricing relationship building, economic
stimulus, market presence and competition interest rate spread, regulatory compliance, long-term
relationships etc.

Bad loans also known as non-performing loans (NPLs), can significantly impact the banking
sector in several ways. Bad loans directly affect a bank's balance sheet and financial health.
When borrowers default on loans, banks face a loss of principal and interest income. This
impacts profitability and can erode the bank's capital reserves. If bad loans accumulate, it may
impair the bank's ability to lend, reducing its overall liquidity.
Deposits play a crucial role in the functioning of a bank. They form the foundation of a bank's
operations and have several key aspects such as Liquidity and Stability, Loan Creation, Credit
Creation, Funding Operations and so forth.

3.Objectives and goals

1. Evaluate Financial Health: Assess the overall financial health and stability of each bank
by analyzing key financial indicators such as asset size, loan portfolio quality, deposit
growth, and the level of non-performing loans (bad loans).

2. Comparative Analysis: Conduct a comparative analysis to identify trends, patterns, and

differences in the financial performance of the six banks. This involves examining how
each bank's assets, loans, deposits, and bad loans compare to one another and to
industry benchmarks.

3. Identify Strengths and Weaknesses: Identify the strengths and weaknesses of each
bank's financial performance in relation to its peers. This includes identifying areas
where a bank excels, such as strong asset growth or low levels of bad loans, as well as
areas where it may need improvement, such as high levels of non-performing loans or
low deposit growth.

4. Risk Assessment: Assess the level of risk associated with each bank's financial
performance, particularly in terms of the quality of its loan portfolio and the potential
impact of bad loans on overall profitability and stability.

5. Inform Investment Decisions: Provide insights and information that can be used by
investors, analysts, regulators, and other stakeholders to make informed investment
decisions, evaluate the soundness of banking institutions, and mitigate risk.

6. Policy Implications: Explore the policy implications of the findings, including potential
regulatory interventions or policy changes aimed at strengthening the banking sector,
improving financial stability, and protecting consumers.

7. Recommendations for Improvement: Based on the analysis, provide recommendations

for each bank to improve its financial performance, manage risk more effectively, and
enhance overall stability and profitability.

By setting clear goals and objectives, researchers can focus their efforts on conducting a
comprehensive analysis of the financial performance of the six banks.
4.Research mathodology
Research methods are essential tools that enable researchers to conduct systematic inquiries,
produce reliable and valid findings, adhere to ethical standards, and contribute to the
advancement of knowledge in their respective fields.

Here are some methods included in

Trend Analysis: Examine the trends in key financial metrics over time to identify patterns
and changes in performance. This involves analyzing historical data on assets, loans,
deposits, and bad loans to understand how the banks' financial performance has evolved
over different periods.

Regression Analysis: Use regression analysis to identify relationships between various

factors and financial performance. For example, regression analysis can help determine the
impact of factors such as loan growth, interest rates, and economic indicators on the banks'
profitability and asset quality.

Variance Analysis: Conduct variance analysis to understand the reasons behind deviations
from expected performance. This involves comparing actual financial results with budgeted
or forecasted figures and investigating the factors driving any significant variances.

Qualitative Interviews and Surveys: Supplement quantitative analysis with qualitative

research methods such as interviews and surveys. This can provide insights into the banks'
strategic initiatives, risk management practices, and other qualitative factors that may
influence their financial performance.

Case Studies: Conduct in-depth case studies of individual banks to understand their unique
characteristics, strategies, and challenges. Case studies can provide rich insights into the
factors driving financial performance and can help identify best practices and lessons
learned.

By employing a combination of these methods, researchers can conduct a comprehensive

investigation of the financial performance of the six banks, providing valuable insights into their
strengths, weaknesses, and areas for improvement.
5.Literature review
Banking means deposit mobilization and deployment of those deposits into advances or
investments in different sectors. The element of interest has been for long used as main
instruments for deposit mobilization and the deployment of funds therefore.In the Muslim world,
it remains a deep cry in peoples` hearts to fashion and design their economic lives in accordance
with the percepts of Islam. It is committed to conduct all banking and investment activities on
the basis of interestfree unveiled a new horizon and ushered in a new silver lining of hope
towards materializing a long cherished dream of the people of Bangladesh for doing their
Banking transitions in line with what is prescribed by Islam. That is why, considering the
performance of IBBL, on attempt has been made in this paper to study the financial analysis
procedure of IBBL.We have rendered our knowledge to present this study on all Performance of
Islami Bank Bangladesh Limited. In this study, it is shown that various operational activities can
be used in the evaluation of operation of this Bank. Considering the productivity ratio, current
ratio quick ratio, profitability ratio,solvency ratio we can find that this bank is increasing its
performance efficiency. (Jaba Chakraborty1, 2015)

Banks are the most important parts of the financial system of any country. Specially, developing
country like Bangladesh, proper banking system is very important and essential to play a vital
role, because capital market system in Bangladesh is not advanced like other country’s capital
market. The study analyses published texts, articles, websites and annual report of this bank
through a content analysis. Key findings of this study manifest the contribution of this bank in
different areas of economic development in Bangladesh like generating employment, earning
foreign remittance, strengthening rural economy, promoting ecology and green banking,
boosting industrialization, developing the SMEs, assisting in foreign trade (import-export) and
developing the housing sector etc. This study also identifies FSIBL’s significant contribution to
the national exchequer. This paper contributes to the field of economic development of
Bangladesh and the role of FSIBL behind it and fills the gap of literature in this specific area.
The study suggests that Islamic banking has a great impact on the economic development in
Bangladesh. (Sarker1, 2015)
6.Timetable and Milestones
Creating a timetable and milestones for research largely depends on the nature of the research, its
scope, and the resources available.

Phase 1: Planning and Proposal

 Days 2-3 : Define Research Objectives

 Clearly articulate the research questions and objectives.

 Days 1-2: Literature Review

 Conduct a comprehensive review of existing literature related to your research

topic.

 Days 2-3: Develop Research Proposal

 Write and finalize the research proposal including methodology, research

questions, and objectives.

Phase 2: Data Collection and Analysis

 Days 6-8: Data Collection

 Collect data through experiments, surveys, interviews, or other relevant methods.

 Days 6-7: Data Analysis

 Analyze the collected data using appropriate statistical or qualitative methods.

Phase 3: Interpretation and Writing

 Days 13-4: Interpretation

 Interpret the findings in the context of the research questions and existing
literature.

 Days 8-10: Drafting

  Begin drafting the research paper or thesis, including introduction, methodology,
results, and discussion sections.

 Days 3-4: Review and Revision

 Review the draft for coherence, clarity, and accuracy, and revise accordingly.

7.Conclusion
Emphasize the significance of examining the financial performance of Islamic banks in
Bangladesh. Discuss the growing prominence of Islamic banking globally and its increasing role
in the country's financial sector. Highlight the relevance of understanding the financial health and
stability of these institutions for investors, regulators, policymakers, and other stakeholders
Recapitulate the main findings derived from the preliminary analysis of the financial
performance of the six Islamic banks in Bangladesh. Highlight any noteworthy trends, patterns,
or disparities identified in their financial statements, and key performance indicators.

Bibliography
Jaba Chakraborty1, *. F. (2015). Financial Performance Analysis of Islamic Banks in. nternational Journal
of Economics,, 1-8.

Sarker1, M. N. (2015). An Impact of Banking Activities of Private Commercial. Journal of Investment and
Management, 1-9.