General Banking Activities and Financial Performance Analysis: A case of Al Arafah Islamic Bank

Abstract

Bangladesh’s economy is one of the developing sites of this country. Just a few years back Bangladesh’s economic growth was at its highest point, but over time it gets affected by the pandemic crisis and it started dealing with a low economic crisis. Bangladesh’s most earning sources are from exporting sites, because of the pandemic and lockdown, there was no growth of it. so it gradually fell. This crisis affected this country’s banking sites also. This site is battling with interest rating criteria. There are 61 banks under the supervision of Bangladesh Bank. Among all these banks we are trying to analyze SIBL, AIBL, and IBM's financial ratios. SIBL was established in light of the shariah Principles and is the first three-level (Formal, Non-formal, Voluntary) bank in Bangladesh’s field. IBL is a joint venture public limited company with 63.09% foreign shareholders. It is recorded with both Dhaka and Chittagong stock exchanges. AIBL is a private limited organization. It offers some products and services which are, “Bai Mujjal '', “Bai Murhaba '', “Bai Salam” etc. It has deposit products like, ``Al Wadiah Current deposit”. Bangladesh has had extraordinary growth in the Islamic Banking system. Alongside, Bangladesh has no specific law for the Islamic Banking system as well as there is no Human Resources knowledge for the shariah-based banking system. There is a lack of a financial literacy program and government for project financing, which is a very challenging site for these Banks.