An Internship Report on

“Customer’s Perception of Islamic Banking: A Case Study on Bank

Asia Limited”

Submitted to:
Department of Banking and Insurance
Faculty of Business Studies
University of Dhaka

Supervised By:
Dr. Abdullah Al Mahmud
Professor
Department of Banking and Insurance
University of Dhaka

Submitted by:
Khadiza Akter
ID: 25-131
Section- B
Session: 2018-19

Date of Submission: December 20, 2023

 Letter of transmittal

20th December, 2023

Dr. Abdullah AI Mahmud
Professor,
Department of Banking and Insurance,
University of Dhaka.
Subject: Submission of internship report.

Dear Sir,
With due respect and humbleness, I want to state that I have submitted the internship report on
“Customer’s Perception of Islamic Banking: A Case Study on Bank Asia” as a compulsory
requirement of my BBA program. I would like to express my deep gratitude for your kind
guideline. I probably could not prepare the report without the directions and instructions you
provided me.
I leveraged my academic expertise along with practical experiences to compile this report.
Gathering data involved conducting customer interviews using a structured questionnaire. The
analysis of the collected data was performed through frequency analysis, correlation analysis and
statistical graphical analysis using the SERVQUAL model. I also tried to show a comparison
between conventional banking and Islamic banking of Bank Asia Limited to evaluate the
performance of the Islamic window of this bank. Additionally, I incorporated insights from
pertinent research papers, journals, and magazines to enhance the depth of this report.
May I, therefore, pray and hope that you would be kind enough to accept my internship report
and oblige thereby.

Sincerely Yours,
------------------------------
Khadiza Akter,
ID: 25-131
25th Batch
Department of Banking and Insurance, University of Dhaka.
 Acknowledgments

I want to start by expressing my gratitude to the Almighty Allah for granting me the blessings
and strength to complete my internship report.

I'd also like to extend my heartfelt thanks to my academic supervisor, Dr. Abdullah AI Mahmud
(PhD). He provided me with invaluable guidance, constructive advice, and unwavering support
throughout the process of preparing this report.

Furthermore, I'd like to acknowledge the contributions of Md. Mahbubul Alam, Manager and
Head of Hemayetpur Branch. His assistance, provision of essential information, and cooperation
were significant in completing this internship report.

I am also deeply appreciative of the Islamic Banking division of Bank Asia Limited, Hemayetpur
Branch, Savar, Dhaka, for allowing me to work and learn. Their encouragement and guidance
have encouraged me to think critically and apply practical insights from an organizational
perspective. Completing this internship report would have been a considerable challenge without
their support, guidance, kindness, and patience.

Lastly, I would like to express my thanks to all the personnel at Bank Asia Ltd. who shared their
experiences and helped me transition into the corporate world. Your contributions have been
invaluable to my learning experience.
 Student’s Declaration

I, Khadiza Akter with ID No: 25-131, hereby declare that I am submitting my internship report
on “Customer’s Perception of Islamic Banking: A Case Study on Bank Asia”. I am also
declaring that I have not shared this report with any other platform or individuals and I have not
copied any content from anyone else’s work. I am also declaring myself liable for any kind of
breach of the academic regulations for preparing an internship report

-----------------------------
Khadiza Akter
ID: 25-131
Section - B
BBA 25th Batch
Department of Banking and Insurance
University of Dhaka
 Certificate of Supervisor

This is to certify that Sharul Islam Shafin, a student of the Bachelor of Business Administration
(BBA), 25th batch, ID: 25-141, Department of Banking and Insurance at the University of Dhaka
is under my supervision as a requirement for the completion of the Bachelor of Business
Administration (BBA) program. He has completed the work under my direction and supervision.
The completion of this report has been a major focus for him. I pray that he achieves the utmost
success and prosperity.

-------------------------------------
Dr. Abdullah Al Mahmud
Professor
Department of Banking and Insurance
Faculty of Business Studies
University of Dhaka
 Executive Summary

This internship report's main objective is to fulfill the requirements of the BBA Program,
Department of Banking and Insurance, University of Dhaka. My report delves into assessing
customer perception using the SERVQUAL analysis model within the Islamic Banking division
of Bank Asia Limited.

The Islamic Banking sector in Bangladesh is expanding rapidly and has become highly
competitive. This environment offers an opportunity for banks to enhance their service
development and innovation through the SERVQUAL analysis model. Banks can better cater to
local customers through service marketing and modern banking practices. To gain a competitive
edge, commercial banks in our country are actively investing in service development within the
Islamic banking sector.

My internship report specifically concentrates on the customer service aspect of the Islamic
banking department at Bank Asia Limited, with a focus on service marketing. It includes a brief
overview of the bank's history and background. Additionally, the report provides a
comprehensive understanding of the subject, research analysis, findings, limitations, and
recommendations for improvement.

To ensure the report's authenticity, I have incorporated both primary and secondary data.
However, it's important to note that due to confidentiality and time constraints, certain sensitive
information could not be included in the report. I've applied a combination of academic
knowledge and real-life corporate experience, supported by data and facts provided by the
organization to create a well-rounded and informative report.
 Table of Contents
Chapter 1: Introduction....................................................................................................................9

1.1 Statement of Problem............................................................................................................9

1.2 Objective of the Report...................................................................................................11

1.3 Background of the Report...............................................................................................11

1.4 Scope of the Report.........................................................................................................12

1.5 Limitation of the Report..................................................................................................12

Chapter 2: Literature Review.........................................................................................................13

Chapter 3: Asia Bank Islamic Banking Overview.........................................................................16

3.1 Islamic Banking...................................................................................................................16

3.2 Conceptualization................................................................................................................17

3.3 Bank Asia & Islamic Banking.............................................................................................19

3.3.1 Income/ Revenue Recognition Principle......................................................................20

3.3.2 Cost Recognition Principle...........................................................................................21

3.3.3 Islamic Banking Deposit Products of Bank Asia:........................................................21

3.3.4 Deposit Collection and income Sharing Ratio (ISR) based Profit Distribution...........22

3.3.5 Investment Operation and Return Thereon...................................................................22

3.3.6 Other financing products..............................................................................................24

Chapter 4: Research Methodology................................................................................................25

4.1 Research Type.....................................................................................................................25

4.2 Data......................................................................................................................................25

4.2.1 Sources:.........................................................................................................................25

4.2.2 Target population..........................................................................................................25

4.2.3 Sample size...................................................................................................................26

4.2.4 Sampling Technique.....................................................................................................26

Chapter 5: Analysis and Finding...................................................................................................26

5.1 Survey Analysis...................................................................................................................26

5.1.1 Response Statistic for Question 1.................................................................................26

5.1.2 Response Statistics for question 2................................................................................28

5.1.3 Response Statistics for question 3................................................................................29

5.1.4 Response Statistics for question 4................................................................................31

5.1.5 Response Statistics for question 5................................................................................32

5.1.6 Response Statistics for question 6................................................................................33

5.1.7 Response Statistics for question 7................................................................................35

5.1.8 Response Statistics for question 8................................................................................36

5.1.9 Response Statistics for question 9................................................................................37

5.2 Frequency Analysis.............................................................................................................39

5.3 Correlation Analysis............................................................................................................39

5.4 Conventional banking and Islamic banking of Bank Asia Comparison..............................40

5.4.1 Asset Utilization...........................................................................................................41

5.4.2 Return of Assets............................................................................................................42

5.4.3 Net Interest Margin.......................................................................................................43

5.4 Finding of the Study............................................................................................................44

Chapter 6: Conclusion...................................................................................................................45

Reference.......................................................................................................................................46

Appendix........................................................................................................................................48

SERVQUAL Questionaries:......................................................................................................48
 Customer’s Perception of Islamic Banking: A Case Study on
Bank Asia limited

Chapter 1: Introduction
1.1 Statement of Problem

The banking sector of Bangladesh has undergone a significant transformation in recent years,
especially in the Islamic domain. The emergence of Islamic banking has revolutionized the
banking industry in Bangladesh. With the facilities like lower reserve requirements comparative
to conventional banking has increased the interest of founders for this type of banking. Being a
Muslim majority country, Bangladesh has vast population who are Muslim. and for the
globalization religiosity becomes widespread, that is why people are now more concern about
halal banking. So as a result, Islamic banking gain popularity. for all this reasons a good number
of Islamic banking institutions or windows are formed within last few years. However, the
success of Islamic banking services depends on customers' perception of the quality of service
provided. Bangladesh has witnessed tremendous growth in the adoption of Islamic banking
services in recent years. Therefore, it is crucial to evaluate the quality of Islamic banking
services provided by banks in Bangladesh from the customers' perspective. This study aims to
identify the factors that are related to the customers’ perception about services they use. Islamic
banking is changing global banking in many ways. Firstly, it offers a different option for people
who want banking services following Islamic rules. This adds variety to global banking, helping
different customers with different needs. Islamic banking is also known for being ethical. It
follows Shariah principles, which means no charging interest or risky transactions. This has led
to global talks about responsible and ethical banking. Some regular banks are even starting to be
more ethical because customers want it. Islamic finance, which shares profits and losses between
the bank and the customer, helps keep the money system stable. This was seen during the 2008
financial crisis when Islamic banks did better than regular ones. Islamic banking also helps with
money transactions between countries by offering ways to follow Shariah rules. This is good for
people and businesses in countries where most people are Muslim. Some big financial centers,
like London and Kuala Lumpur, are supporting Islamic finance. They are making rules to help
Islamic banks and products grow, trying to become important places for Shariah-compliant
banking. Islamic bonds, called Sukuk, have become popular globally. They offer a different way
for governments and companies to get money, attracting investors who want Islamic
investments. The ideas of Islamic finance, like sharing risks and using real assets, are changing
how risks are managed in the wider finance world. This is different from regular finance, which
often relies on debts and interest. Islamic banking is also helping discussions between different
religions through talking about ethical money and responsible banking. Even though Islamic
banking is still small compared to regular banking, it's growing. The ideas it brings are making
people talk about more ethical and sustainable banking for everyone.

Understanding how customers perceive the excellence of Islamic banking services is crucial for
Bangladeshi banks. Customers' satisfaction, loyalty, and propensity to implement and utilize
Islamic banking services are heavily influenced by their perception of service quality. This study
is anticipated to cast light on the factors that influence customers' perceptions of the quality of
Islamic banking service of bank Asia limited, including dependability, security, responsiveness,
convenience. The purpose of this thesis is to investigate and analyze the factors that influence
consumers' perceptions and loyalty of Islamic banking services in Bank Asia. By analyzing the
factors that influence customers' perceptions and loyalty, this study aims to provide the bank
with valuable insights and suggestions for enhancing its Islamic banking services.
1.2 Objective of the Report

There are two types of objectives for this study. One is a broad objective and another one is a
specific objective. The broad objective of this study is to evaluate the relationship between
customers' perceptions and factors affecting the perceptions. And to find the factors that
contribute the customers reliability on Islamic banking services in Bank Asia.

Specific objectives for this study are:

• To examine the factors that influence customers' perception of Islamic banking

services in Bank Asia.

• To assess the level of customer satisfaction with Islamic banking services in Bank
Asia.
• To identify the factors that positively and negatively influence the customer in using
Islamic banking services in Bank Asia.

• To provide recommendations to improve the quality of Islamic banking services in

Bank Asia.

• To identify the relationship between customer perception and Islamic banking.

1.3 Background of the Report

The landscape of Islamic banking in Bangladesh has witnessed notable changes recently, driven
primarily by technological advancements and the widespread adoption of digital solutions. E-
banking, in particular, has become a significant aspect of the financial sector, reshaping how
customers engage in Shariah-compliant financial transactions with the help of e banking or
digital banking. As the utilization of Islamic e-banking services continues to grow, understanding
customers' perceptions of service quality becomes pivotal for ensuring satisfaction and loyalty.
While Islamic e-banking presents various opportunities, it also encounters challenges,
particularly in terms of service quality. Factors such as dependability, security, responsiveness,
convenience, and user-friendliness play a crucial role in influencing customers' perceptions of
the quality of Islamic banking services. This research aims to illuminate the current status of
Islamic banking service quality in the bank by conducting a thorough analysis of the factors
influencing customers' perceptions and levels of satisfaction. Additionally, it will offer valuable
suggestions to Islamic banks for enhancing their e-banking services to meet the evolving needs
and preferences of customers adhering to Shariah principles. The findings of this study will
provide insights into the factors shaping customer perceptions of Islamic e-banking and pinpoint
areas where services can be improved. The study recommends targeted enhancements in
customer service, security measures, accessibility, and ease of use to elevate overall customer
satisfaction and encourage greater adoption of Islamic banking services in Bank Asia.

1.4 Scope of the Report

It is important to emphasize that the focus of this study will be on customers' perceptions of the
quality of Islamic banking services in Bank Asia. Due to differences in socio-cultural and
economic factors, the findings and recommendations may not be explicitly applicable to other
nations or regions. This research seeks to provide a comprehensive understanding of the unique
challenges and opportunities associated with the quality of Islamic banking services in Bank
Asia.

1.5 Limitation of the Report

The study of how customers in Bank Asia perceive Islamic banking services work, which uses
both primary and secondary data, has some shortcomings. This study is not free of errors. Many
limitations were faced while making this report, they are:
 • The sample may not be fully representative of the entire population, and the survey
responses may be subject to self-reporting biases which happen when people give
information that is biased or not dependable.

• Customers were unaware and confused about their perception of different services.

• The timeline for this study to be completed was noticeably short and was not enough
to collect the detailed information necessary for research and conduct the study from
a broad perspective.

• Lack of researcher experience, understanding of depth, and efficiency in preparing

the report.

Chapter 2: Literature Review

Islamic banking has become an essential part of banking services in Bangladesh. With the
increasing demand for Islamic banking services, banks provide high-quality banking services to
their customers. Islamic banking service quality has been recognized as one of the key factors
that determine customers' behavior towards Islamic banking. Therefore, it is important to
understand customers' behavior towards Islamic banking service quality. Several studies have
been conducted on the evaluation of Islamic banking service quality from the customers'
perspective.

M Amin, Z Isa (2008) [1], they did a statistical test was conducted by six dimensions tangible,
reliability, responsiveness, assurance, empathy, compliance on Muslim and non-Muslim
consumers. Consumers are very much satisfied with the products and services provided by
banks. RELIABILITY is the main factor for customer satisfaction.
According to Hoque at el (2022) [2] ETHICALITY and RELIGIOSITY affects customer
positively but benefits like interest affect customer satisfaction negatively, while doing the
research on 377 Islamic banking customers of Dhaka city using four dimensions like ethical
responsibility, religious value, benefits, and security.

M Aisyah (2018) [3] in this study they used six dimensions of CARTER. The satisfaction level
is high because of ASSURANCE according to customers in this research, banks maintain a good
awareness, politeness, and excellent communication with customers. They need to develop their
services quality more by increasing the number of branches, tellers, and customer service
counters. Also, they need to train their employees and Islamic banks should be digitalized and
new products and services are crucial for gaining more customer satisfaction.

S Ahmed, M Mohiuddin, M Rahman (2022) [4] this study evaluates the customers perception of
Islamic shariah compliance and its impact on customer satisfaction. the study finds that most of
the clients has Islamic faith and religiosity. So, that SHARIAH COMPLIANCE has a positive
relation with customer satisfaction it directly increases the quality of services and thus
satisfaction increases.

According to Ahmed et al (2022) [5] customers are satisfied with the bank's adherence to
SHARIAH COMPLIANCE. So, it is so much important for the banks while designing the
products and services, as shariah compliance is main factor for Islamic banking customer
satisfaction.

MA Fida, U Ahmed, Y AL-Balushi, D-Singh (2020) [6] this study examines the service quality
impact on customer satisfaction and loyalty of main four Islamic banks of Oman. They used the
SERVQUAL model to analysis. Analysis found that among all factors EMPATHY and
RESPONSIVENESS have an important relationship with customer satisfaction.

Customers trust in the bank, their level of religiosity significantly influences their satisfaction
according to (Mohsin Butt et al,2013) [7] The main objective of this study is to empirically
examine how consumers' attitudes towards Halal banking impact e-service quality and e-
satisfaction in the context of online Islamic banking. The proposed model also aims to explore
the connections between e-service quality, e-satisfaction, e-trust, and e-loyalty. The findings of
this research indicate that a positive attitude towards Halal banking has a favorable influence on
the perceived quality of online services provided by Islamic banks and leads to higher overall e-
satisfaction. Additionally, when customers perceive high online service quality, it results in
increased satisfaction and fosters stronger e-loyalty towards the bank. Similarly, e-trust plays a
mediating role in the relationship between e-satisfaction and e-loyalty.

Abdul Rehman (2012) [8] they narrated that they did research on 225 customers of Islamic banks
of Pakistan, UK and UAE. They used CARTER model to evaluate. analysis found that Pakistan
and UK Islamic banking customers considers assurance, reliability, and empathy as crucial factor
for satisfaction. and UAE considers tangible for customer satisfaction.

N Aswani, BM Sukoco, MA Fanani (2020) [9] stated that Islamic values, Shariah compliance,
honesty, modesty, humanness, and truth worthiness are considered as the main factor for Muslim
consumers service quality in this study. From all these factors HONESTY in profit sharing
affects the consumers satisfaction positively. Customer satisfaction causes customer loyalty.

AL Hunjra, MN Akhtar, SW Akbar (2011) [10] they used SERVQUAL model with four
dimensions they are compliance, assurance, empathy, representativeness. Their findings say that
empathy and representativeness is an important variable of service quality for gaining customer
satisfaction.

Parasuraman et al. (1988) [11] stated the SERVQUAL method originated from comprehensive
quantitative research which is the study that identifies the service quality & enlightens the
dimension.

Sadekin and Shaikh (2016) [12] observed that customers feel insecure from hijackers
withdrawing and depositing money from ATM booths and its risks; market risks; and liquidity
risks. Overall, the literature suggests that customers perception and customers loyalty is
influenced by the perception and loyalty factors like- brand image, bank environment, service
quality, security, use of technology, communication, mutual trust, money management etc.

HM Awan,KS Bukhari, A Iqbal (2011) [13] states that service architecture and customer focus is
positively significant and empathy is negatively significant for customer satisfaction for both
conventional and Islamic banking in Pakistan. They used servqual model with reliability,
responsiveness, assurance, empathy and tangible dimensions for evaluating satisfaction with
seven-point Likert scale.

SIS AI Hawary, WF AI Smeran (2017) [14] they used reliability, ease of use, efficiency, website
design, privacy and responsiveness factor for assessment of the electronic service quality of three
Islamic banks in Jordan, for 30 respondents. Among all these factors’ reliability, ease of use,
website design and privacy are statistically significant for customer satisfaction.

G-Zouari,M Abdelhadi (2021) [15] they did a research on 145 respondents of two leading
Islamic bank in Tunisia by using six dimensions of servqual model. Result of the study
represents that human skills, confidence, compliance and digitalization is statistically significant
but tangibles are not significant for customer satisfaction in this case.

AK Naveed (2010) [16] this study suggests some factors for the success of Islamic banks in
Pakistan. The respondents are highly educated and well –aware about Islamic banking services.
Here efficiency, confidentiality and convenient working hours can increase customer satisfaction
more.

According to, A Ahmed, MI Saif (2010) [17] there is a strong relation between service quality
and customer satisfaction of Pakistani Islamic banks, rather than conventional banks. by
evaluating 720 responses with servqual model on seven-point Likert scale basis.

FA Lone, AU Rehman (2017) [18] they conducted a comparative study between full-fledged
Islamic banking and Islamic banking windows. they used five dimensions of servqual model for
calculating gap. findings say that, aged people who has higher education and high work pressure
prefers full-fledged Islamic banks, while small aged people with low education and low work
pressure prefers Islamic banking windows. Aged people will be more satisfied with the better
quality of tangibles and responsiveness. On the other side, small aged people expect only
responsiveness to be more satisfied.

Chapter 3: Asia Bank Islamic Banking Overview

3.1 Islamic Banking

In recent years, Islamic banking has become important worldwide because of its unique way of
handling finances, following principles rooted in Islamic Sharia’a. What makes Islamic banking
significant is its ability to provide an alternative and ethical financial system that resonates with
the values of a large part of the world's population.

A key reason for the global importance of Islamic banking is its focus on ethical and socially
responsible practices. Islamic financial institutions stick to principles that forbid the payment or
receipt of interest (usury) and engage in ethical investment practices. This is attractive to
individuals and businesses looking for financial services that match their moral and ethical
values. Islamic banking also encourages risk-sharing and profit-and-loss-sharing mechanisms,
fostering a partnership-oriented approach between financial institutions and clients. This is
different from the conventional banking system, where transactions are primarily interest-based.
The collaborative nature of Islamic banking has the potential to contribute to financial stability
and resilience. In a time when ethical considerations, sustainable practices, and social
responsibility are central to global discussions, Islamic banking provides a financial model that
appeals to those who prioritize ethical finance. The global reach of Islamic banking has
expanded as financial institutions worldwide recognize the demand for alternative banking
solutions that respect cultural and religious beliefs.

Moreover, Islamic banking has become an appealing choice for investors seeking diversification
in their portfolios. The resilience of Islamic financial institutions during economic crises has
shown the potential stability of the Islamic banking system, drawing interest from a wider range
of investors. To sum it up, the significance of Islamic banking worldwide lies in its provision of
an ethical, inclusive, and sustainable financial alternative. As individuals and institutions
increasingly prioritize values-aligned financial services, Islamic banking continues to play a
crucial role in shaping the global financial landscape.

3.2 Conceptualization

Islamic banking is grounded in various key concepts that distinguish it from conventional
banking. Here are some important concepts associated with Islamic banking:

Shariah Compliance: The entire framework of Islamic banking revolves around adherence to
Shariah (Islamic law). All financial transactions and activities must comply with Shariah
principles, ensuring ethical and fair practices.

Riba (Usury/Interest): Islamic banking prohibits the payment or receipt of interest (Riba).
Instead, it promotes profit-and-loss sharing arrangements to ensure fairness and equity in
financial transactions.

Mudarabah: Mudarabah is a form of partnership where one party provides the capital (Rabb-ul-
Maal) and the other provides the labor and management (Mudarib). Profits are shared based on
pre-agreed ratios, while losses are borne by the capital provider.

Musharakah: Musharakah is a partnership where both parties contribute capital and share
profits and losses. Unlike Mudarabah, both partners actively participate in the management of
the business.

Murabaha: Murabaha is a cost-plus financing arrangement where the bank purchases a

commodity at the request of the customer and sells it to the customer at a marked-up price. This
allows the bank to earn a profit without charging interest.
Ijarah: Ijarah is a form of leasing where the Islamic bank purchases an asset and leases it to the
customer for an agreed-upon rental fee. At the end of the lease period, ownership of the asset
may be transferred to the lessee.

Takaful: Takaful is an Islamic insurance concept based on the principles of cooperation and
shared responsibility. Participants contribute to a common fund to provide mutual assistance in
case of loss.

Sukuk: Sukuk are Islamic bonds that represent ownership in an asset or project. Unlike
conventional bonds, Sukuk holders receive a share of profits generated by the underlying asset.

Wakalah: Wakalah refers to an agency contract where one-party acts as an agent to manage the
funds of another party. In Islamic banking, it is often used in investment and asset management
activities.
Qard al-Hasan: Qard al-Hasan is an interest-free loan provided for benevolent or charitable
purposes. The borrower is required to repay only the principal amount borrowed.

Islamic Microfinance: Islamic microfinance involves providing financial services to small-scale

entrepreneurs and individuals in a manner consistent with Islamic principles. It often employs
Mudarabah and Musharakah contracts.

Maqasid al-Shariah: The Maqasid al-Shariah, or objectives of Shariah, guide Islamic banking
towards the broader goals of promoting justice, social welfare, and economic stability.

Understanding these concepts is crucial for individuals, businesses, and policymakers engaging
with Islamic banking, as they form the foundation for the ethical and Shariah-compliant
operations of Islamic financial institutions.

3.3 Bank Asia & Islamic Banking

Bank Asia initiated its Islamic Banking operations on December 24, 2008, with a steadfast
commitment to providing Shariah-compliant banking services that adhere to Islamic principles.
The objective is to contribute to sustainable economic growth with a focus on justice and equity.
The Islamic banking services offered by Bank Asia are distinct, maintaining a clear separation
from conventional units in terms of human resources, operational modules, banking software,
investment portfolio, fund management, accounts, and balance sheets.

To ensure the highest standards of Shariah compliance, Bank Asia employs a unique module for
profit distribution among Mudaraba Depositors, based on the Income Sharing Ratio (ISR) – the
first of its kind in Bangladesh. Presently, the bank operates five Islamic Banking Windows under
the exclusive brand 'SALAMAH,' meaning purity. Over the past few years, SALAMAH Islamic
Banking Services have achieved significant recognition.

Bank Asia's Islamic Banking operation distinguishes itself from its conventional counterpart by
conducting business in accordance with Islamic Shariah principles. The accounting system plays
a crucial role in ensuring Shariah compliance in this banking segment. The Islamic Banking
operation is committed to following accounting principles that avoid interest. In summary, it
adheres to specific accounting principles under its Islamic Banking umbrella, facilitated by a
dedicated Islamic Banking software named i-HIKMAH.

3.3.1 Income/ Revenue Recognition Principle

The bank generates revenue through various channels, including charges, fees, commissions, and
investment income. To ensure adherence to Shariah principles, the bank follows specific
guidelines for recognizing different types of income. Typically, charges, fees, and commissions
are recognized. The recognition of income from investments is guided by the following
principles:

 Bai-Murabaha Muajjal Investment: In the case of Bai-Murabaha Muajjal mode of

investment, markup/profit is added to the bank's purchase cost during each deal. This
results in a credit to the unearned income account. Subsequently, the profit is recognized
 on an accrual basis through time apportionment at the end of each month from the
unearned income amount. The Bank may apply an allowance (rebate) for early repayment
at its discretion.
 Hire Purchase Shirkatul Melk (HPSM): For HPSM mode of investment, rent is charged
and recorded in the income account at the end of each month on an accrual basis. If there
is a gestation period provision in the account, no income is earned during this period.
Income commences after the gestation period ends. However, rent is chargeable even
during gestation if the delivery of assets is completed in a usable condition, such as
machinery or a building. All accrual income is subject to the prevailing classification and
provisioning rules of the Bangladesh Bank.
 Musharaka Investment: In the case of Musharaka Investment, revenue recognition
follows the actual (cash/realization) basis rather than accrual. This means that no income
is recognized until the results of the venture are determined.

3.3.2 Cost Recognition Principle

The recognition of costs related to profit paid on deposits is carried out on an accrual basis.
Monthly accruals are determined using the Income Sharing Ratio. Similarly, other costs are also
recognized on an accrual basis, aligning with the matching concept in accounting.
Bank Asia places a strong emphasis on ensuring Shariah compliance in its banking operations.
To oversee this compliance, the bank has established a proficient Shariah Supervisory
Committee. This committee is composed of distinguished Fuqaha, Islamic bankers, and
academicians with expertise in Islamic Economics and Finance. Their collective knowledge and
experience contribute to maintaining the bank's adherence to Shariah principles.

3.3.3 Islamic Banking Deposit Products of Bank Asia:

Bank Asia Islamic Banking presents a range of enticing deposit products operating under the Al-
Wadiah and Mudaraba Principles. These products are meticulously crafted to ensure Shariah
compliance while offering you optimal convenience and security, coupled with reasonable
profits where applicable. The Islamic Banking Deposit Products provided by Bank Asia include:
 Al Wadiah Current Account (AWCA)
 Smart Junior Saver (School Banking) Account
 Mudaraba Term Deposit Account (MTDA) for various tenures
 Mudaraba Savings Account (MSA)
 Mudaraba Savings Account (MSA) – Smart
 Corporate Term Deposit Account (CTDA) for different tenures
 Mudaraba Corporate Privilege Savings Account (MCPSA)
 Mudaraba Special Notice Deposit Account (MSNDA)
 Mudaraba Hajj Savings Scheme (MHSS) with tenures ranging from 1 to 10 years
 Mudaraba Deposit Pension Scheme (MDPS) with tenures spanning from 3 to 12
years
 Mudaraba Monthly Profit Paying Deposit Scheme (MMPPDS)
 Cash Waqf

3.3.4 Deposit Collection and income Sharing Ratio (ISR) based Profit Distribution

To secure funds from depositors, Islamic Banking adheres to the Al-Wadiah and Mudaraba
principles. In the context of Al-Wadiah Accounts, no profit is currently permitted. However, for
Mudaraba depositors, Bank Asia stands out as the pioneer in Bangladesh, employing the Income
Sharing technique, a departure from the traditional Weightage System practiced by other Islamic
Banking operators in the country.

The Income Sharing module developed by Bank Asia has garnered recognition from various
quarters, including the Central Shariah Board for Islamic Banks of Bangladesh and the Islamic
Banks Consultative Forum. Our module establishes pre-defined Income Sharing Ratios (ISR) for
each type of depositor and the Bank. The ISR delineates the share of income for depositors and
the Bank. For instance, an ISR of 75:25 signifies that a distributable income is to be shared by
the respective depositors, with the remainder allocated to the Bank.
The Income Sharing Ratios between each type of Mudaraba depositor and the Bank (Mudarib)
are transparently disclosed at the account opening or the beginning of the relevant period. Profit
rates are determined in real-time based on the actual income generated from deploying the
corresponding funds. Consequently, our profit rate on deposits under Islamic Banking is a
retrospective reflection of the agreed-upon sharing ratios, representing the output derived from
the Bank's earnings on investments.

3.3.5 Investment Operation and Return Thereon

Islamic Banking investments are broadly divided into two categories based on the type of
charging (rate of) return:
 Fixed return-based investment: The fixed return-based investment system applies to the
Bai-Murabaha Muajjal Investment mode. In this mode, the Bank sells goods to a client at
a predetermined profit/mark-up on deferred payment, including a post-import basis. The
Hire Purchase Shirkatul Melk (HPSM) also operates as a fixed return-based investment
model, where the rate of rent is fixed, but the rent amount varies based on the diminishing
balance method.
 Variable return-based investment: Variable return-based income is employed in the
MUSHARAKA mode of investment. In these cases, only the ratio of Income Sharing is
stipulated in the agreement. The Bank earns income based on the venture's performance
according to the agreed-upon ratio, similar to our Mudaraba deposit products. Any
genuine losses incurred are shared according to the capital ratio of the client and the
bank.

3.3.5.1 Investment Products of Bank Asia Islamic banking:

Bank Asia Islamic Banking investment modes open avenues for you to operate and expand your
business in a Shariah-compliant manner. Currently, we encompass various sectors of investment
through distinct Shariah-compliant modes, including Bai Murabaha Muajjal, Hire Purchase
Shirkatul Melk (HPSM), Musharaka, and more. The investment modes we offer are as follows:
 Bai Murabaha Muajjal (both Local and Post Import)
  Hire Purchase Shirkatul Melk (HPSM)
 Musharaka
 Murabaha Import Bills
 Quard against Accepted Bills
 Quard against MTDR & Schemes
 Istisna'a – Export
 Post Export Finance - Foreign (PEF-f)
 Musharakah Export Finance - Inland (MEF-i)

3.3.6 Other financing products

3.3.6.1 SME financing

Bank Asia has implemented several initiatives to support small and medium-sized entrepreneurs
(SMEs) by focusing on their creation, skill development, and overall growth. Here are the key
measures they've taken: 1. In every Bank Asia branch, a dedicated SME help desk has been
established. Additionally, women entrepreneurs have been specifically hired to offer special
benefits to this segment. 2. The bank has set up SME/Agriculture Branches with the aim of
expanding SME businesses. 3. Special loan programs have been introduced to support women
entrepreneurs in small and medium industries. A women-specific account system has been
initiated to provide women with easy access to loans. 4. Bank Asia is dedicated to promoting
sustainable and competitive facilities. They achieve this through innovative development,
technological advancements, and expansion efforts. The focus is on enhancing the efficiency of
entrepreneurs and marketing their products nationwide under the Cluster Development Policy. 5.
As part of this program, loans have been extended to clusters involved in electric and electronic
industries, cooling businesses, weaving industries, production of jamdani sarees, bamboo and bin
manufacturing, ready-made garments, potteries, and more. Islamic SME Financing Products are:
 SALAMAH Srishti
 SALAMAH Somriddhi
 SALAMAH Bahon
 SALAMAH Subidha
  SALAMAH Sondhi
 SALAMAH Suborno
 SALAMAH Sofol
 SALAMAH Seba Uttaran-Islamic for MSE Finance

3.3.6.2 AGRI financing

Financial support is needed to improve the welfare of farmers and the performance of the
agricultural sector. Islamic financing in agricultural sector of bangladesh is crutial for lower
complexity for farmers as well as for banks. Bank asia also provides various kind of sevices to
agri sector. The products are as follows:
 Islamic-Cropping Support
 Islamic-Dairy & Fattening Support
 Islamic-Poultry Support
 Islamic-Fishery Support
 Islamic-Equipment Support

Chapter 4: Research Methodology

4.1 Research Type

This research is a qualitative research. Customer’s perception is a psychological Factor it cannot

be measured in number as every person view is different from one another.

4.2 Data

4.2.1 Sources:
To prepare the study data sources are identified collected, classified, analyzed, interpreted, and
presented systematically. Data is collected from two sources:
Primary sources: Most of the information in this study has been collected from primary
sources.
 To collect data a questionnaire has been developed. This questionnaire consists of
9 questions and 50 responses are collected from different people.
Secondary sources: Some required and valuable information has been collected from different
secondary sources. They are different journals and articles.
 Previous research papers.
 Texts regarding customer’s perception.
 Printed outlines, documents and reports of different authors and institutions.

4.2.2 Target population

The population is considered as all the normal people those who have little knowledge or vast
knowledge about banking services and have some perceptions towards Islamic Shariah based
bank services. We considered the responses only for the populations who have bank account and
take service from the Islamic banking from Bank Asia Ltd.

4.2.3 Sample size

The size of the sample will be 50. A questionnaire survey will be conducted on 50 people to
collect data. The sample size is determined by the formula of the normal distribution technique
for an unknown population size using a 90% confidence interval.

4.2.4 Sampling Technique

By applying five-point Likert scales, a standard structured questionnaire will be developed. The
ranking will range from strongly agree to strongly disagree (ranging numerically from 1=
strongly disagree, 2=disagree, 3=neutral, 4=agree, and 5 = strongly agree). SPSS 25 has been
used for the evaluation. The SPSS (Statistical Package for the Social Sciences) is computer
software that provides statistical analysis of data and tables of statistics.

Chapter 5: Analysis and Finding

5.1 Survey Analysis

5.1.1 Response Statistic for Service Quality

For finding appropriate factors that influence customers overall perception we have created a
questionnaire containing 10 questions. All the questions were related to the probable factors that
may influence customers perception on Islamic banking of Bank Asia Limited. Below a bar chart
is given for the all the type of response of question “Is the service quality of bank of Asia Islamic
banking good”. In response of the question, we found most of customers voted for agree to the
question. Around 27 customers voted for “agree” to the question answer.

Figure 1: Bar Plot for Service Quality

We have also generated scattered plot. We observe from the scattered plot is that most of the
vote were placed on the upper side of the scatter plot. Since we assigned higher value for positive
answer and lower value for the negative plot. Therefore, the scatter plot reflects the positive
answer of most of voters for the question “Is the service quality of Bank Asia Islamic Banking
good?”. The scattered plot is shown below:
 Is the service quality of Bank Asia Islamic Banking
good?(Q1)
12

10

0
0 2 4 6 8 10 12

Figure 2: Scatter Plot for Service Quality

5.1.2 Response Statistics for Brand Image

For finding appropriate factors that influence customers overall perception we have created a
questionnaire containing 10 questions. All the questions were related to the probable factors that
may influence customers perception on Islamic banking of Bank Asia Limited. Below a bar chart
is given for the all the type of response of question “Do you rate Bank Asia as a good brand?”:
 Figure 3: Bar Plot for Brand Image

We have also generated scattered plot. We observe from the scattered plot is that most of the
vote were placed on the upper side of the scatter plot. Since we assigned higher value for positive
answer and lower value for the negative plot. Therefore, the scatter plot reflects the positive
answer of most of voters for the question “Do you rate Bank Asia as a good brand?”. The
scattered plot is shown below:

Do you rate Bank Asia as a good Brand?

(Q2)
12

10

0
0 2 4 6 8 10 12

Figure 4: Scatter Plot for Brand Image

5.1.3 Response Statistics for Halal & Fair
For finding appropriate factors that influence customers overall perception we have created a
questionnaire containing 10 questions. All the questions were related to the probable factors that
may influence customers perception on Islamic banking of Bank Asia Limited. Below a bar chart
is given for the all the type of response of question “Do you find Bank Asia Islamic Banking
Halal and fair?”:

Figure 5: Bar Plot for Halal & Fair

We have also generated scattered plot. We observe from the scattered plot is that most of the
vote were placed on the upper side of the scatter plot. Since we assigned higher value for positive
answer and lower value for the negative plot. Therefore, the scatter plot reflects the positive
answer of most of voters for the question “Do you find Bank Asia Islamic Banking Halal and
fair?”. The scattered plot is shown below:
 Do you find Bank Asia Islamic Banking halal and
fair?(Q3)
12

10

0
0 2 4 6 8 10 12

Figure 6: Scatter Plot for Halal & Fair

5.1.4 Response Statistics for Satisfaction

For finding appropriate factors that influence customers overall perception we have created a
questionnaire containing 10 questions. All the questions were related to the probable factors that
may influence customers perception on Islamic banking of Bank Asia Limited. Below a bar chart
is given for the all the type of response of question “Are you satisfied with Bank Asia Islamic
Banking?”:

Figure 7: Bar Plot for Satisfaction

We have also generated scattered plot. We observe from the scattered plot is that most of the
vote were placed on the upper side of the scatter plot. Since we assigned higher value for positive
answer and lower value for the negative plot. Therefore, the scatter plot reflects the positive
answer of most of voters for the question “Are you satisfied with Bank Asia Islamic Banking?”.
The scattered plot is shown below:

Are you satisfied with Bank Asia Islamic Banking?

(Q4)
12

10

0
0 2 4 6 8 10 12

Figure 8: Scatter Plot for Satisfaction

5.1.5 Response Statistics for Security

For finding appropriate factors that influence customers overall perception we have created a
questionnaire containing 10 questions. All the questions were related to the probable factors that
may influence customers perception on Islamic banking of Bank Asia Limited. Below a bar chart
is given for the all the type of response of question “Do you find Bank Asia Islamic secured?”:
 Figure 9: Bar Plot for Security

We have also generated scattered plot. We observe from the scattered plot is that most of the
vote were placed on the upper side of the scatter plot. Since we assigned higher value for positive
answer and lower value for the negative plot. Therefore, the scatter plot reflects the positive
answer of most of voters for the question “Do you find Bank Asia Islamic secured?”. The
scattered plot is shown below:

Is Islamic Banking of Bank Asia secured?(Q5)

12

10

0
0 2 4 6 8 10 12

Figure 10: Scatter Plot for Security

5.1.6 Response Statistics for Reliability
For finding appropriate factors that influence customers overall perception we have created a
questionnaire containing 10 questions. All the questions were related to the probable factors that
may influence customers perception on Islamic banking of Bank Asia Limited. Below a bar chart
is given for the all the type of response of question “Do you find Bank Asia Islamic Banking
reliable?”:

Figure 11: Bar Plot for Reliability

We have also generated scattered plot. We observe from the scattered plot is that most of the
vote were placed on the upper side of the scatter plot. Since we assigned higher value for positive
answer and lower value for the negative plot. Therefore, the scatter plot reflects the positive
answer of most of voters for the question “Do you find Bank Asia Islamic Banking reliable?”.
The scattered plot is shown below:
 Do you find Bank Asia Islamic Banking reliable?
(Q6)

12

10

0
0 2 4 6 8 10 12

Figure 12: Scatter Plot for Reliability

5.1.7 Response Statistics for Cooperativeness

For finding appropriate factors that influence customers overall perception we have created a
questionnaire containing 10 questions. All the questions were related to the probable factors that
may influence customers perception on Islamic banking of Bank Asia Limited. Below a bar chart
is given for the all the type of response of question “Do you find their employee cooperative
when ask for service and help?”

Figure 13: Bar Plot for Cooperativeness

We have also generated scattered plot. We observe from the scattered plot is that most of the
vote were placed on the upper side of the scatter plot. Since we assigned higher value for positive
answer and lower value for the negative plot. Therefore, the scatter plot reflects the positive
answer of most of voters for the question “Do you find their employee cooperative when ask for
service and help?”. The scattered plot is shown below:

Do you find their employee cooperative when

you ask for service? (Q7)
12

10

0
0 2 4 6 8 10 12

Figure 14: Scatter Plot for Cooperativeness

5.1.8 Response Statistics for Well Decorate Environment

For finding appropriate factors that influence customers overall perception we have created a
questionnaire containing 10 questions. All the questions were related to the probable factors that
may influence customers perception on Islamic banking of Bank Asia Limited. Below a bar chart
is given for the all the type of response of question “The Banking environment and decoration
condition is modern?”:
 Figure 15: Bar Plot for Well Decorate Environment

We have also generated scattered plot. We observe from the scattered plot is that most of the
vote were placed on the upper side of the scatter plot. Since we assigned higher value for positive
answer and lower value for the negative plot. Therefore, the scatter plot reflects the positive
answer of most of voters for the question “The Banking environment and decoration condition is
modern?”. The scattered plot is shown below:

The Banking environment and decoration condi-

tion is very tasteful?(Q8)
12

10

0
0 2 4 6 8 10 12

Figure 16: Scatter Plot for Well Decorate Environment

5.1.9 Response Statistics for Good Communication
For finding appropriate factors that influence customers overall perception we have created a
questionnaire containing 10 questions. All the questions were related to the probable factors that
may influence customers perception on Islamic banking of Bank Asia Limited. Below a bar chart
is given for the all the type of response of question “Do they maintain good communication?”:

Figure 17: Bar Plot for Good Communication

We have also generated scattered plot. We observe from the scattered plot is that most of the
vote were placed on the lower middle side of the scatter plot. Since we assigned higher value for
positive answer and lower value for the negative plot. Therefore, the scatter plot reflects the
negative answer of most of voters for the question “Do they maintain good communication?”.
The scattered plot is shown below:
 Do they maintain good communication?(Q9)
12

10

0
0 2 4 6 8 10 12

Figure 18: Scatter Plot for Good Communication

5.2 Frequency Analysis

We performed frequency analysis of the data obtained from the questionnaire. We checked the
mean, median, mode, variance, standard deviation, kurtosis, skewness, range, min value, max
value. The analysis is given below in tabular form. We observe the mean value of all the 9
questions which were between 3.5 to 4. Except for question “Q8” and “Q9” we didn’t receive
positive response. The average response for “Q8” was 3.102 which is close to neural response.
The average response value for “Q9” was 2.8776. Which is on the negative side of the responses.
Table 1: Frequency Analysis

5.3 Correlation Analysis

We have performed Pearson correlation test among all the questions. The significance of
correlation is shown in two level. One of the significance value levels is 0.01 and the other is
0.05. So, if the Pearson correlation value is less than 0.05 than the relation is significant by level
1 margin. And if the Pearson correlation value is less then 0.01 than the relation is significant by
level 2. The below shows the correlation coefficient among the 10 questions. We marked the
value with double star (**) for level 2 significance. And for level 1 significance we marked the
significance value with single star (*).
Table 2: Correlation Analysis

5.4 Conventional banking and Islamic banking of Bank Asia Comparison

The table 1 below show the total asset, net income, operating income, net interest income, total
outlets of conventional banking of Bank Asia. In table 2, we have shown the total asset, net
income, operating income, net investment income, total outlets. We have used this data for ROA
(return of assets), NIM (net interest margin) and Asset Utilization calculation per year from 2018
to 2022. Then we have used bar plot side by side to compare between conventional banking and
Islamic banking of Bank Asia.
Table 3: Convectional Banking Data

Yea Total Net ROA Operating Net Outl Asset

r Asset Income Income Interest et Utilization
Income
201 3.07291E+ 22662769 0.0073750 141225691 79026898 127 0.0459582
8 11 87 09 97 44 31
201 3.538E+11 19608111 0.0055421 160739226 84007590 128 0.0454321
9 40 4 12 37 81
202 4.08717E+ 20357066 0.0049807 131788880 31854215 129 0.0322445
0 11 83 22 17 00 19
202 4.38293E+ 27067359 0.0061756 166934088 56398833 129 0.0380873
1 11 81 27 16 50 02
202 4.68401E+ 30458717 0.0065027 202323605 55067269 135 0.0431945
2 11 05 02 28 06 34

Table 4: Islamic Banking Data

Year Total Asset Net ROA Operating Net Outlet Asset

Income Income Investment Utiliz
Income ation
2018 16034714774 29838843 0.018608902 40728856 316338244 5 0.025
6 6 4004
25
2019 19809708745 13600456 0.006865551 44547501 345117224 5 0.022
6 1 4877
11
2020 23963911480 - - 60870555 -53760927 5 0.002
19913828 0.008309924 5400
2 93
 2021 27381520295 19717661 0.007201084 33647537 57950471 5 0.012
7 3 2884
11
2022 33944590946 16903850 0.004979836 32357751 -28601330 5 0.009
5 4 5325
21

5.4.1 Asset Utilization

Asset utilization refers to the efficiency with which a company uses its assets to generate
revenue. It is measured here with the ratio of operating income with total asset. It can be
measured using various ratios, and it generally assesses how well a company is deploying its
resources to generate sales or income. The bar plot below shows the comparison of asset
utilization of conventional banking and Islamic banking of Bank Asia. We observe the asset
utilization of conventional banking is better in all the years from 2018 to 2022 than the Islamic
banking of Bank Asia.
 Asset Utilization
Conventional Asset Utilization Islamic Banking Asset Utilization
0.05
0.0459582310843949 0.0454321809896276
0.045 0.0431945340965992

0.04 0.038087301942685

0.035 0.0322445191969604
0.03
0.02540042
0.025 0.02248771
0.02

0.015 0.01228841
0.00953252
0.01

0.005 0.00254009
0
2018 2019 2020 2021 2022

Figure 19: Asset Utilization Analysis

5.4.2 Return of Assets

ROA is a financial metric that measures the efficiency of a company in using its assets to
generate earnings. It is calculated by dividing the net income by the average total assets. We
observe that in the year 2018, 2019, 2021 the ROA of Islamic Banking of Bank Asia is away
better than the conventional banking. The ROA values of Islamic banking of Bank Asia is
comparable in 2022. But in the year 2020 the ROA has a negative value due to loss occurred on
that year.
 ROA
0.025
0.018608902010769
0.02 3

0.015
0.007375009463003
0.01 0.006865551015954 0.007201083609517
0.006502701898446
18 0.005542139821704 0.006175627262459
67
63 0.004980722435360 82 0.004979836265192
98
28 39 04
0.005

0
2018 2019 2020 2021 2022
-0.005

-0.01 -
0.008309923952364
Conventional Banking ROA 73 Islamic Banking ROA

Figure 20: ROA Analysis

5.4.3 Net Interest Margin

NIM is a profitability ratio that measures the difference between interest income generated by
banks or financial institutions and the amount of interest paid out to their lenders, relative to the
amount of their interest-earning assets. In the year 2018 and 2019 the NIM values of Islamic
Banking of Bank Asia is pretty high than the conventional banking. But the NIM in the year
2020 to 2022 is bad for Islamic Banking of Bank Asia.
 NIM
Conventional NIM Islamic Banking NIM
1
0.776693161575275 0.774717358949681
0.8
0.559578765999514 0.522632790998285
0.6
0.4 0.337850909431655
0.241706394036507 0.272174218049304
0.172227971644154
0.2
0
2018 2019 2020 2021 2022
-0.2 -
0.088390968971966
-0.4 3
-0.6
-0.8
-1 -0.883200867808746

Figure 21: NIM Analysis

5.4 Finding of the Study

Initially, we have performed statistics analysis for the servqual questions with bar plot and
scatter plot. Then we performed frequency analysis. We also performed correlation analysis
among the questions. From the analysis we found that for most of the query customers had
positive response. They were quite impressed with the Islamic banking of Bank Asia. Then we
performed NIM, ROA, Asset Utilization analysis on both conventional banking and Islamic
banking of Bank Asia from 2018 to 2022. We found that the performance of Bank Asia was
quite impressive in the initial two years comparing Islamic banking and Conventional Banking.
But, in the later years the conventional banking of Bank Asia outperformed Islamic Banking of
Bank Asia. This might be due to the sudden economic imbalance throughout the country.

Both analysis from customers perspective and performance perspective was done for Islamic
banking of Bank Asia. We found that the customers have a positive impression on Islamic
Banking of Bank Asia. On the other hand, though the performance of Bank Asia Islamic Branch
was doing great at the beginning from 2018 to 2019. But performance dropped on the year 2020.
But it has recovered quite well in the year 2022.

In summary we can say that the customers have a positive impression on the overall sides of the
Islamic Banking of Bank Asia and also performance is satisfactory.

Chapter 6: Conclusion
Bangladesh has faced tremendous growth in Islamic banking section of its overall banking
system. This is because the lower Reserve requirements for the Islamic Shariah banking
compared to conventional banking. Islamic banking does not accepted interest or riba, they work
as partner of business with clients. As a result, they face low risk for providing benefit to clients
as interest. They share profit with clients. if bank faces loss, they have low obligations to bear
that loss alone. For all of this reasons, many full-fledged Islamic banks side by side many Islamic
windows are formed by last few years. Bank Asia also started Islamic Shariah banking beside its
conventional operation. Islamic banking, as a new concept of banking for Bangladeshi people,
customers satisfaction is a must for gaining customer’s loyalty and spreading the Islamic banking
service to every person in Bangladesh. This study will help to evaluate the factors which affects
customer satisfaction significantly. Customers satisfaction is important for creating the brand
awareness to maximum people of the country. Findings says that bank Asia have to focus on
their marketing for Islamic banking, it will help them to create a huge customer base.
Respondents generally expressed positive perceptions about Islamic banking, with customer
service and security measures standing out as significant factors influencing overall perceptions.
The study highlights the need for continuous improvement in Islamic banking services. It
recommends developing enhancing customer support services, and strengthening data security
measures. Moreover, addressing issues related to accessibility and ease of use can help make
Islamic banking services more inclusive and appealing to a wider range of customers. Education
and awareness initiatives are also recommended to bridge the gap between different educational
backgrounds and increase adoption rates. Overall, the study contributes to the understanding of
customer perceptions about Islamic banking and provides valuable insights for banks and
financial institutions to refine their strategies and improve customer satisfaction. By considering
the suggestions and recommendations outlined in this study, bank Asia can enhance their Islamic
banking services, deliver superior customer experiences, and foster stronger relationships with
their customers in the digital banking era.

Reference
1. Amin, M. and Isa, Z., 2008. An examination of the relationship between service quality perception and
customer satisfaction: A SEM approach towards Malaysian Islamic banking. International Journal of
Islamic and Middle Eastern Finance and Management, 1(3), pp.191-209.
2. Hoque, M.N., Rahman, M.K., Said, J., Begum, F. and Hossain, M.M., 2022. What factors influence
customer attitudes and mindsets towards the use of services and products of Islamic Banks in
Bangladesh? Sustainability, 14(8), p.4703.
3. Dandis, A.O. and Wright, L.T., 2020. The effects of CARTER model on attitudinal loyalty in Islamic
banks. International Journal of Quality and Service Sciences, 12(2), pp.149-171.
4. Ahmed, S., Mohiuddin, M., Rahman, M., Tarique, K.M. and Azim, M., 2022. The impact of Islamic
Shariah compliance on customer satisfaction in Islamic banking services: mediating role of service
quality. Journal of Islamic Marketing, 13(9), pp.1829-1842.
5. ALI, M.A.B., 2023. THE IMPACT OF SHARIAH COMPLIANCE ON THE FINANCIAL
PERFORMANCE OF MALAYSIAN ISLAMIC BANKS: MODERATING EFFECT OF SHARIAH
COMMITTEE.
6. Ananda, S., Kumar, R.P. and Singh, D., 2023. A mediation analysis of perceived service quality, customer
satisfaction and customer engagement in the banking sector. Journal of Financial Services
Marketing, 28(3), pp.570-584.
7. Mohsin Butt, M. and Aftab, M., 2013. Incorporating attitude towards Halal banking in an integrated service
quality, satisfaction, trust and loyalty model in online Islamic banking context. International Journal of
Bank Marketing, 31(1), pp.6-23.
8. Moosa, R., 2022. THE ROLE OF CUSTOMER SELECTION CRITERIA, BANKING OBJECTIVE, CSR
AND SERVICE QUALITY IN ENHANCING POSITIVE CUSTOMER PERCEPTION: AN ISLAMIC
BANKING PERSPECTIVE. International Journal of Economics and Finance Studies, 14(03), pp.388-408.
9. Asnawi, N., Sukoco, B.M. and Fanani, M.A., 2020. The role of service quality within Indonesian customers
satisfaction and loyalty and its impact on Islamic banks. Journal of Islamic Marketing, 11(1), pp.192-212.
10. Hunjra, A.I., Akhtar, M.N., Akbar, S.W. and Niazi, G.S.K., 2011. Relationship between customer
satisfaction and service quality of Islamic banks. World Applied Sciences Journal, 13(3), pp.453-459.
11. Nyeck, S., Morales, M., Ladhari, R. and Pons, F., 2002. 10 years of service quality measurement:
reviewing the use of the SERVQUAL instrument. Journal of Economics, Finance and Administrative
Science, 7(13), pp.101-107.
12. Sadekin, M.S., Mukta, S.N. and Shaikh, M.A.H., 2019. Customers’ trust on e-banking system in
Bangladesh. International Journal of Economics, Finance and Management Sciences, 7(6), pp.178-186.
13. Awan, H.M., Bukhari, K.S. and Iqbal, A., 2011. Service quality and customer satisfaction in the banking
sector: A comparative study of conventional and Islamic banks in Pakistan. Journal of Islamic
Marketing, 2(3), pp.203-224.
14. Utomo, T.Y. and Hidayat, A.M., 2023. The Intervening Role of E-Satisfaction in Relationships Between E-
Service Quality and E-Loyalty: Case of BNI mobile banking in Indonesia. Jurnal Aplikasi
Manajemen, 21(3).
15. Siddique, M.A., Rashid, A. and Tahir, U., 2023. Factors affecting the credibility of islamic banking
Sharī’ah approvals: Perception-based empirical study. Borsa Istanbul Review, 23(2), pp.426-442.
16. Naveed, A.K., 2010. Customer satisfaction and awareness of Islamic banking system in Pakistan. African
journal of business management, 4(5), pp.662-671.
17. Ahmad, A. and Saif, M.I., 2010. Islamic banking experience of Pakistan: comparison between Islamic and
conventional banks. International Journal of Business and management, 5(2), p.137.
18. Lone, F.A. and Rehman, A.U., 2017. Customer satisfaction in full-fledged Islamic banks and Islamic
banking windows: A comparative study. Journal of Internet Banking and Commerce, 22(S7).
19. https://www.tbsnews.net/
20. https://www.thedailystar.net/
21. https://www.bankasia-bd.com/
Appendix
SERVQUAL Questionaries:

Bank Asia Islamic Banking Customer’s Survey

1. Is the service quality of Bank Asia Islamic Banking good?

 Strongly Disagree
 Disagree
 Neutral
 Agree
 Strongly Agree

2. Do you rate Bank Asia as a good Brand?

 Strongly Disagree
 Disagree
 Neutral
 Agree
 Strongly Agree

3. Do you find Bank Asia Islamic Banking halal and fair?

 Strongly Disagree
 Disagree
 Neutral
 Agree
 Strongly Agree

4. Are you satisfied with Bank Asia Islamic Banking?

 Strongly Disagree
 Disagree
 Neutral
 Agree
 Strongly Agree

5. Is Islamic Banking of Bank Asia secured?

 Strongly Disagree
 Disagree
 Neutral
 Agree
 Strongly Agree

6. Do you find their employee cooperative when you ask for service?
 Strongly Disagree
 Disagree
 Neutral
 Agree
 Strongly Agree

7. The Banking environment and decoration condition is very tasteful?

 Strongly Disagree
 Disagree
 Neutral
 Agree
 Strongly Agree

8. Do they maintain good communication?

 Strongly Disagree
 Disagree
 Neutral
 Agree
 Strongly Agree

9. Do you find Bank Asia Islamic Banking reliable?

 Strongly Disagree
 Disagree
 Neutral
 Agree
 Strongly Agree