Profitability and Liquidity of Conventional Banking and Islamic Banking in Bangladesh: A Comparative Study

The aim of this study is to examine and evaluate the profitability and liquidity of a group of 5 Conventional banks in Bangladesh with a group of 5 Bangladeshi Islamic banks. The study evaluates the profitability and liquidity of two types of banking system in Bangladesh for the period of 2008 to 2012. Different financial ratios i.e. Return on Asset (ROA), Return on Equity (ROE), Profit Expense Ratio (PER), Net Profit Margin (NPM), Earnings per Share (EPS), Profit per branch, Profit per employee have been used for evaluating profitability and Loan to Deposit ratio (LDR), Loan to Assets ratio (LAR) are used for evaluating liquidity of these 2 categories  banks. T-test and F-test have been used in determining the significance of the differential performance of the two groups of bank. The study found that Islamic Banks are less preferable than Conventional banks in the year 2008 and 2009 in all the profitability indicators. In 2010, Conventional banks had been more profitable than Islamic banks except ROE, PER. In 2011 and 2012, Islamic banks’ profitability performance is better than that of Conventional banks in the performance indicators except EPS, Profit per Branch and Profit per Employee. However, there is no significant difference in liquidity between the two sets of banks. LAR had been constantly higher in Islamic banks in all the years though LDR had not been higher during the same period. In 2010 and 2011, Conventional Banks’ LDR is higher than the Islamic Bank. The reasons are that conventional banks in Bangladesh have longer history and experience in doing banking business and hold dominating position in the financial sector with its large share in the overall financial assets of Bangladesh as compared to Islamic banks, which in true sense, started only a few years back with all letter and spirit. The study also found that Islamic Banks are less profitable having less liquidity position during 2008-2012. However, it had improved considerably in its profitability during 2011 and 2012. Key Words: Profitability, Liquidity, Conventional Banking, Islamic Banking

Nematocystis indicus Bandyopadhyay, Mitra & Bhowmik, 2006, sp. nov.

Nematocystis indicus sp. nov. (Figs. 1–4) Gamont Length (GL) 172.0–400.0 µm (257.0± 65.0 µm); Gamont Width (GW) 18.0–49.0 µm (25.0± 9.0 µm); Nucleus Length (NL) 18.0–26.0 µm (20.0± 3.3 µm); Nucleus Width (NW) 9.0–11.0 µm (9.5 ± 0.8 µm); Gametocyst Diameter (GD) 48.0–68.0 µm (56.0± 1.3 µm); Oocyst Length (OL) 7.0– 11.5 µm (9.3 ± 1.1 µm). Gamonts are elongated, with a cylindrical main body and a short wider anterior portion which contains the small nucleus. Both the ends are gradually narrowed like a ‘V’ to a nearly pointed tip. The anterior one­third of the cell is approximately two times wider than the posterior portion. Body length varies from 172.0–400.0 µm (257.0± 65.0 µm). The maximum body width ranges from 18.0–49.0 µm (25.0± 9.0 µm) while the average body width ranges from 5.5 –11.0 µm (7.0± 1.5 µm). Ectoplasm is thin, hyaline, about 1.0–2.0 µm wide. The width of ectoplasm is greatest at the anterior tip where it is 5.0–6.0 µm in thickness. At the posterior end the thickness of the ectoplasm is 1.5 –2.0 µm. Endoplasm is finely granular. Within the endoplasm very small spindle­shaped paraglycogen reserve granules of about 1.0 µm by 0.5 µm size have been observed. Nucleus is small, slightly elongate, measuring 18.0–26.0 x 9.0–11.0 µm, having karyosome diffused throughout the nucleoplasm, enclosed within a nuclear membrane. Gametocyst almost rounded with two almost equal gametocytes. Dimension of the gametocyst ranges from 48.0–68.0 µm (56.0± 1.3 µm). Oocysts biconical, measuring 7.0– 11.5 µm (9.3 ± 11.0 µm). Taxonomic summary Type Host: Perionyx excavatus (Perrier) Location of the parasite: Seminal vesicles of the host. Type Locality: Sandeshkhali, South 24 Parganas, West Bengal, India Symbiotype: Host PE 03– 16 / 11 / 2004 deposited in the museum of the Department of Zoology, University of Kalyani, Kalyani 741235, West Bengal, India. Type specimens: Syntypes on the slides no. NI/04, NI/ 12 and NI/ 14 are deposited in the Museum of the Zoological Survey of India, Kolkata­ 700016 (Registration no. 2901, 2903, 2904). Etymology: The species Nematocystis indicus sp. nov. has been named after our motherland, India.Published as part of Bandyopadhyay, Probir K., Mitra, Amlan Kumar & Bhowmik, Biplab, 2006, Nematocystis indicus sp. nov. (Apicomplexa: Monocystidae) from an Indian earthworm (Annelida: Oligochaeta) Perionyx excavatus (Perrier), pp. 63-68 in Zootaxa 1296 on page 65, DOI: 10.5281/zenodo.27353