Islamic Banking: Challenges and Opportunities in Jammu and Kashmir

This research paper is an attempt to understand Islamic banking in Jammu and Kashmir, analyzing the causes of financial exclusion of people from conventional banking and evaluating the implications of macro environment on Islamic banking in Jammu and Kashmir using PESTEL Analysis. In this paper, I made an effort to evaluate the polarity between conventional and Islamic banking on the basis of principles, finance, operation and investment (PFOI) by understanding their Respective laws. The Major contrast between the two theories has been the factor of interest. Comparison of Performance of Islamic banking in Malaysia, Saudi Arabia, Qatar,Turkey, Kuwait and UAE is considered. The variables include Asset growth, ROE, ROA, Financial growth, contribution, market share and cost income ratios. Qatar has outperformed in the chosen variables. The results of the research predicts that Islamic banking should be accepted in Jammu and Kashmir by providing a window for only authorized shariah complaint institutions to offer Islamic services and products.