Awareness of Islamic Banking in the Society: A Case Study of Hyderabad

Abstract

The concept of Islamic banking is not new but the field of Islamic banking has not grown as fast as other financial service providers of Pakistan .This is because of lack of understanding of terms and operations of Islamic banks. Therefore this study has revealed the understanding and awareness of people of Hyderabad regarding Islamic banking, its operations, and products. This research is found very crucial keeping in view the importance and competition that prevails in the financial sector of Pakistan. Islamic banking is one of the important pillars of financial sector of Pakistan which is growing side by side and competing with conventional banks, insurance companies and mutual funds. The findings of this study are very much helpful to enhance the awareness and understanding of people regarding interest free products and services offered by Islamic banks. This research has been proved beneficial to the key officials of Islamic banks to improve their planning and understanding the need of advertisements and promotional campaigns about their products and services. The sample of this study is based on 120 people, which includes Business class, salaried class, and the key officials working in different banks operating in Hyderabad. The findings of this research suggests that the growth and development of Islamic banking industry is hugely dependent on awareness and understanding among the people , further in this study it has been identified that the slow growth in Islamic banking industry is due to lack information regarding products and operations of Islamic banks among the people ,less attractive products and services, low profits rates and people are less familiar and reluctant to avail services by this financial sector.