Dear Arifshah,
Islamic banking or otherwise, the main challenge of the humanity is to bridge gap between rich and poor. Day by day this gap is increasing and not decreasing. The gap is well evident in the member countries of Organisation of Islamic Conference (OIC).
Taliban rule in Afghanistan from 1996 to 2002, could not narrow down this gap. Not only in banking, but in all respects i.e. social, political, economical etc they had 100% Islamic rule. Their rule turned ordinary citizens into paupers.
What about India? Check the banks whose all the board members are Muslims. History of these banks (like any other bank) is fraught with scandals, frauds, corruption and so on. Bangalore's famous and very old bank is classic example. So forget about Islamic banking, let us find out whether we are able to run regular banks perfectly.
By the way JK Bank, whose head quarter is in Srinagar, has
Gross NPA 1.61% <link updated to site home> What does it indicates?
You may feel my views are little uncharitable. But then trouble with the truth is that it cannot be spoken without being severe in judgement!
Thanks,
Dinesh V Divekar