Impact of Strategic Planning on the Financial Performance of Small and Medium Banks in Islamabad

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.