This paper investigates the financial performance of interest- based conventional commercial banks and interestfree Islamic banks in Bangladesh using descriptive statistics, ttest and test of hypotheses. Data has been processed through ‘Statistical Package for Social Science’ (SPSS) software. The data consist of accounting figures of 4 interests based conventional commercial banks and 4 interest free Islamic banks from 2009 to 2013. The study revealed mixed results. The study found that conventional commercial banks are superior in terms of performance regarding in commitment to economy and community development, productivity and efficiency where performance of Islamic banks in terms of business development, profitability, liquidity and solvency is superior to that of conventional banks.