Study on financial performance analysis of islamic banking in Srilanka (special reference to Amana bank)

The Islamic banking industry is one of the most important and growth industry of Sri Lankan economy, not only the Sri Lankan economy but whole world also. There are many banking sectors such as commercial, private and public banks working in Sri Lanka. Banking sectors are growing faster and competition.This study investigates the financial performance Amana Bank, Sri Lanka during the period of 2011-2015.Gradual development of Islamic banking had created competition among Islamic windows and conventional banks. Since Islamic banks offered products under Islamic principles, most of Muslim preferred Islamic banks rather than conventional banks. Currently, even non-Muslim prefer Islamic banking as the banks starting to offer an attractive products and services. However, some people still in doubt and argued on Islamic banks’ performance. That is why, considering the performance of Amana bank, on attempt has been made in this paper to study the financial analysis of Amana bank. Researchers have rendered their knowledge to present this study on all Performance of Amana bank PLC. In this study, it is shown that various operational activities can be used in the evaluation of the operation of this Bank. This study’s main objective is tostudy the current assets and current liabilities so as to know whether the shareholders and normal customers could invest in Amana Bank or notand also evaluate how effectively the bank is utilizing its assets against the industry average, as well as measure the profitability,financial positionand liquidity position of the bank. The study is based on secondary data, which covers a period of five years, i.e. 2011-2015. To analyze the data and find out Ratio analysis was used as a method of analysis.Considering the productivity ratio, current ratio, quick ratio, profitability ratio, solvency ratio. This study found through its last year (2015) performance that this bank is trying to increase its performance efficiency.The findings of the study show the fluctuation of the financial position for Amana Bank and some of their financial factors influence the financial performance of the bank. Then, it is found that the overall financial performance of Amana Bank is fluctuating in terms of liquidity ratios, asset quality ratios and profitability ratios (ROA, ROE). This study suggests a set of recommendations regarding the development and enhancing of some banking operations, which will boost the bank's profitability and improve the financial performance of the bank

Impact of service quality on customer satisfaction: special reference to Amana bank PLC in Eastern province in Sri Lanka

The banking industry like many other financial service industries is facing a rapidly changing market, new technologies, economic uncertainties, fierce competition, and especially more demanding customers; and the changing climate has presented an unprecedented set of challenges. Amid intense competition and the dynamic business environment, surviving in the market has become a key challenge for many service organizations. Service quality has become one of the key tools for surviving and gaining competitive advantage in the banking industry, since its offering comprised mainly with intangible elements. The objective study is to examine service quality of Amana bank and its impact on customer satisfaction in Sri Lanka through the SERVQUAL model this was established by Zeithaml, Parasuramn and Berry. Service quality dimensions such as Tangibility, Reliability, Assurance, Responsiveness, Empathy and Shariah Compliance were considered as independent variables and customer satisfaction is considered as dependent variable. Customer satisfaction is appraised by Service facilities and Accessories, Convenience and Supporting service, Total customer value, and Total customer cost. This study is initiated the impact of the service quality on customer satisfaction with the convenience Sampling procedure was used to obtain 200 respondents from Amana bank customers in Eastern province. The primary data was collected through structured questionnaire. SPSS 20.0 and MS Excel was used to analyze the data. And also descriptive statistic, correlation, and regression analysis were used to analyze the data methodology. The results indicate that the higher the service quality, the more the costumer‟s satisfaction. The Dimensions of service quality plays an important role in this study. To conclude, the findings indicate that these six factors have positively association between the customer satisfactions. This study also identifies that the service quality is an appropriate tool to measure the quality of service in the banking sector in the Amana bank. Therefore, the banking sector practitioners regard this instrument a very important tool to evaluate, support, and improve the quality of their services