Abstract:
PURPOSE
The purpose of this research is to study the impact of discount rate on the profitability of
Islamic & Conventional bank (2009-2013).
METHODOLOGY
This study involved the data obtained from annual reports of Islamic and Conventional
Banks from 2009 to 2013 for secondary purpose. To analyze the data one sample test and
Correlation have applied through SPSS. This analysis is done to check the relationship
between the independent and dependent variables.
FINDINGS
The aftereffects of the study are exceptionally empowering on the grounds that the
execution and productivity of Islamic banks are obviously better than Conventional
banks. Islamic banks beat Conventional banks in profitability.
PRACTICAL IMPLICATION
The outcomes of the research help the Conventional Banking Sector to review their
policies or procedures as they are not working well or it is better to convert to Islamic
Banking Sector rather than opening Islamic window and also help Islamic Banking Sector
to provide awareness to the public about the Islamic products as they are growing rapidly
as well as also help the State bank of Pakistan to shut down the Conventional Banking
and promote Islamic Banking Sector so that Muslims are free from Interest.
