Difference between islamic and conventional banking Islamic Banking 3) Aim at maximising profit but

subject to Sharia'h restrictions Conventional Banking 3) Aim at maximising profit without any restrictions





P E S T ANALYSIS POLITICAL FACTORS Political instability Westerns wrong perception of Islamic Banks that they
finance terrorism Our political parties either in government or in opposition not taking interest in banking setup.
ECONOMICAL FACTORS High inflation. IMF influence. Monetary Policy

PEST ANALYSIS:
P E S T ANALYSIS SOCIAL FACTORS Decreasing savings habit. Bank Theft Bank Frauds TECHNOLOGICAL
FACTORS Use of Outdated technology as advanced technology. Low knowledge of ERP Software. Lack of adopting
new technology. Lack of IT trained Staff.
Pest Analysis
Poitical
Employment practices are expected to change.
Unions, Associations are being allowed to work effectively which can affect the performance of the company both
positively or negatively.
Political interference regarding policies is expected to increase as current government is in race of power gain.
Due to lack of confidence on government investor is reluctant so mobilization of funds is going to decrease.

Economic
Inflation is very high which will decrease the demand as purchasing power is decreasing.
Staff cost is increasing as basic wage rate has increased and inflation has compelled to will compel to increase
salaries.
Operating costs are increasing due to inflation.
Interest rate is increasing so loan taking has decrerased.
Value of rupee is decreasing which is pressurizing the economy.

Social And Cultural
Lack of experts is in our country regarding management hence innovative activities are slow and conventional
methods are adopted.
Cultural strain to savings is the reason due to which investment remains low .
Declining work ethics is also our problem which is mainly due to poverty, lack of training.
Inadequate Accountability ,lack of good governance and lack of good infrastructure helps creditor to cheat and
heavy bad debts occur. Same situation is hoped to prevail.
Inadequate Empowerment is also a usual problem in our organization as every person want to get more power
hence there is less delegation of authority and decision making.

Technical
MCB has computerized its most of the branches but still some are manual there is need to computerized otherwise
customers will get bad image.
Now a days computerized system is used by banks whis is very effective. But MCB will have to improve its
computerized technology as some fake transactions occur by ATM.
Shortage of electricity is a big problem,
Employees of each organization need IT training and organization has this trend. MCB will have to follow it.