Table 1: Top Banks in Pakistan

Sr.# Bank Rating

1 Standard Chartered Bank (Pakistan) Limited AAA
2 MCB Bank Limited AAA
3 National Bank of Pakistan AAA
4 Habib Bank Limited AAA
5 Bank Al Habib Limited AA+
6 Allied Bank Limited AA+
7 Habib Metropolitan Bank Limited AA+
8 United Bank Limited AA+
9 Faysal Bank AA
10 Askari Bank AA
Source: The Patents and Companies Registration Agency (PACRA) March 2015

The study on the banking sector is done by Bikker and Haaf (2002) which measures the
concentration ratio and the competition of banks by using Herfindahl-Hirschman Index (HHI)
and Hall-Tideman Index (HTI) ratios. In Pakistan Hasan Khan (2009) measures the extent of
competition. The study used Herfindahl-Hirschman Index (HHI) and k-bank concentration
ratios to get results. It is also mandatory to know that banks in Pakistan, specially private banks
are growing at a fast pace after the time period in which the previous studies are conducted due
to the policies regulated by State Bank of Pakistan and development of financial sector during
the present time. Therefore, this research covers the gap with respect to the competition of
banks and their impact on the performance of banks; moreover it also provides help for the
regulatory authorities for the implications of policies