Chapter: is presented and evaluated previous literature used in


2.1 Literature Review:

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In this part (section) is presented
and evaluated previous literature used in the performance of commercial banks. Literature review refers to the collect of
the results of the different writer relating to the present study. It takes
into through the research of the past researchers those are related to the
current research in any path. Here are the view of the old researches related
with the actual study.

In their
study on “Financial Performance of Selected Public Sector Banks  explained that the banks have to re-orient
their strategies in the light of their own strengths and the kind of market in
which they are likely to operate on. In the perspective of this domestic and
international development, the banking sector has to chart out a perfect path
for the development in its own. (M. Dhanabhakyam, Feb-Mar-2016,). Based on the literature review of these authors can conclude that in
general there are two general approaches to measuring the representation of
banks. The first approach is based on accounting data, is the main financial
coefficients applying to banks while the second approach is based on
econometric techniques. (Gulf, 2014).

Islamic banking is banking or banking activity that is balanced with the
principles of Shariah law and its practical appeal through the development of
Islamic economics. Shariah prohibits the fixed or floating payment or
acceptance of specific interest or fees (known as riba, or usury) for loans of
money. Investing in businesses that provide goods or services calculated
contrary to Islamic principles is also haram (“sinful and
prohibited”) Although these principles have been applied in varying
degrees by historical Islamic economies due to lack of Islamic practice, only in
the late 20th century were a number of Islamic banks formed to apply these
principles to private or semi-private commercial institutions within the Muslim
community. Islamic banking has the same motive as conventional banking except
that it operates in accordance with the rules of Shariah, known as Fiqh
al-Muamalat. Amongst the common Islamic concepts used in Islamic banking are
profit sharing (Mudarabah), safekeeping (Wadiah), joint venture (Musharaka),
cost plus (Murabaha), and leasing (Ijara). Some of the salient features of
Islamic Banking may be collect above