Impact of Strategic Planning on the Financial Performance of Small and Medium Banks in Islamabad
Keywords:
Strategic Planning, Financial Performance, Return On Assets (ROA), Return On Equity (ROE), Kashaf Bank,, Khaushhali Bank, WaseelaMicrofinance Bank,, Tameer Microfinance Bank,, Pakistan, IslamabadAbstract
Strategic planning is the ongoing practice of organizations and firms to improve the firm’s
performance. This study plans to find out the relationship between strategic planning and
financial performance of microfinance banks in Pakistan. For this purpose, questionnaire has
been designed. Population of this study were the professionals and top management of four
microfinance banks of Islamabad region i.e. study i) Kashaf Bank ii) Khushhali Bank iii)
Waseela Microfinance Bank iv) Tameer Microfinance Bank. Sample size of forty one top
management professionals of microfinance banks was selected. For analysis purpose, SPSS was
used and descriptive and inferential statistics i.e. t-test, ANOVA and regression analysis has been
applied. In this study, we find financial performance has positive and substantial relationship
with independent variables of strategic planning and regression results reveals significant
relation between strategic planning and Return on assets, insignificant relationship among formal
and non-formal planning and financial performance and Return on Equity with strategic planning
also shows significant relationship.
