Comparative Analysis Of The Business Products of Islamic and Conventional banks in Pakistan

The objective of this paper is to carry out comparative analysis of the business products of Islamic and conventional banks in Pakistan. For this purpose, we selected five banks each from both segments of banking sector as a sample of study. The sampling banks include: Meezan Bank Ltd, Al Baraka Bank Ltd, Habib Metropolitan Bank Ltd, Dubai Islamic Bank Ltd, Bank Islami Pakistan Ltd, Burj Bank Ltd, Askari Bank Ltd, Soneri Bank Ltd, Alfalah Bank Ltd and Bank Al Habib Ltd. Ratio analysis technique was used to analyze the financial indicators of these banks. The results show that profitability of greater than Islamic banks because conventional banks charge fixed interest against Islamic banks which provide financing to their clients on profit and loss basis. However, the customers of Islamic banks are more satisfied over efficient services and wide range of Shariah based business products. As Islamic banks have been established to promote real economy and to avoid being involved in speculative and unethical activities so their focus is on financial projects which are real and productive that will yield profit both for banks and entrepreneurs. Our results further show that conventional banks return on assets and deposits are more than