Internship Report On Performance Evaluation of Islamic Banks in Bangladesh

Islamic Banking is a financial system which runs its banking business on the basis of principles and procedures of Islamic Shariah. Since Bangladesh is a Muslim country, there is high potentials for the Islamic Banks to prosper and succeed. At present there are seven Islamic Banks operating in Bangladesh. The Islami Bank Bangladesh Limited is the highest profit making bank in the country.We have worked on Six Islamic Banks. These are: IBBL, Shahjalal Islami Bank, Exim Bank Limited, Social Islami Bank Limited, ICB Islami Bank Limited and Al Arafa Islami Bank Limited.
To analyze the financial health and performance of these banks, we have collected last five years financial information of these banks. We have done ratio analysis, Index analysis and regression to show the performance growth. We have also made comparison among the banks. From the analysis we found that all the banks are in increasing trend and their performance is well. From the study we found some problems facing by the Islamic Banks. There is lack of regulatory framework and Government support for the Islamic Banking. The customers are not fully oriented with the modes of Islamic banking.

Government should increase its supporting hand to the Islamic Banks. Each bank should establish research academy so that they can develop new modes of deposits and investment.