Abstract:
Islamic banking is based on sharia principles regarding finance and make the transaction without riba and avoid any illegal and unethical activity and trying to achieve the goals and objectives of a wellbeing of peoples / Islamic economy. This research work purpose is to analyze and examine the performance of Islamic banking that’s are working in Pakistani banking sector for this purpose we choose three Islamic banks of Pakistan. Meezan Bank, Bank Islamic And Dubai Islamic bank. We take the sample from year 2015 to 2019. Banking sector plays a vital role in the economic growth. In the present study an endeavor was made to evaluate the execution and financial accuracy of Islamic banks using CAMEL approach. It consists of five critical indicators to assess the soundness and execution of the bank. These segments are Capital adequacy, Asset quality, Management, Earning and Liquidity. The Capital adequacy, Asset quality, Management efficiency, Earning and Liquidity are taken as independent variables (financial measures) with a view to study their impact on the firm‘s performance. Earnings per share (EPS) is used as a dependent variable. Measurable apparatuses regression analysis were used to gauge the execution of the banks. The results reveal that capital ratio Gross, Advances to Total Deposits and Total Deposit to total Equity all have a negative as well as significant effect of performance , which are statistically significant at 5 percent level of significance. On the other hand, liquidity ratio, investment to total assets return on asstes return on equity all have a positive and significant effect of performance, which is significant at 5 percent level of significance
