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Meezan is a publicly listed company first incorporated on January 27, 1997. It started
operations as an investment bank in August of the same year. In January, 2002 in an
historic initiative, Meezan Bank was granted the nation's first full-fledged commercial
banking license dedicated to Islamic Banking, by the State Bank of Pakistan.
Our Vision
Our Mission
To be a premier Islamic bank, offering a one-stop shop for innovative value added
products and services to our customers within the bounds of Shariah, while optimizing the
stakeholders value through an organizational culture based on learning, fairness, respect
for individual enterprise and performance.
Introduction of Products
Musharakah
Mudarabah
Murabaha
Salam
Istisna
Ijarah
Net Profit
General banking department is concerned with daily operation of the branch. This
department is divided into four sections which are Cash section, Clearing section,
Credit department issues short term and long-term loan. MBL offer two types of loans or
finances, fund based finances and non-fund based finances. Funds based finances include
running finance, demand finance, cash finance and staff finance. Non fund base finance
include letter of credit and guarantees like performance guarantees, mobilization
guarantees shipping guarantees, bid bonds and security deposit guarantees.
Meezan Bank stands today at a noteworthy point along the evolution of Islamic
Banking in Pakistan. The banking sector is showing a significant paradigm shift
away from traditional means of business and is catering to an increasingly astute
and demanding financial consumer who is also becoming keenly aware of Islamic
Banking. Meezan Bank bears the critical responsibility of leading the way forward
in establishing a stable and dynamic Islamic Banking system replete with dynamic
and cutting-edge products and services.
The Bank has made fundamental and significant progress forward, and in doing so
has established a strong and credible management team comprised of experienced
professionals, which have achieved a strong balance sheet with excellent
operating profitability, including a capital adequacy ratio that places the Bank at
the top of the industry, a long-term entity rating of A+, and a short-term entity
rating of A1+, the highest short-term rating.
The Bank's main shareholders are leading local and international financial
institutions, including Pak-Kuwait Investment Company, the only AAA rated
financial entity in the country, the Islamic Development Bank of Jeddah, and the
renowned Shamil Bank of Bahrain, that in addition to their strength and stability,
add significant value to the Bank through Board representation and applied
synergies.
Furthermore, the Bank has built a strong Information Technology and customer
knowledge-based focus that continues to use state of the art technology and
systems. The Bank's Corporate and Investment Banking business unit is geared
towards nurturing and developing a long-term relationship with clients by
understanding their unique financing requirements and providing Shariah
compliant financing solutions across the horizon of corporate banking and
structured finance. The Bank is also implementing robust and aggressive strategic
and tactical initiatives on the consumer banking side. The Bank has a rapidly
growing branch network across all major cities nation-wide. Providing our
customers accessibility and convenience is a prime target, within an atmosphere
and culture of dedicated service and recognition of their needs.
"We must work our destiny in our own way and present to the works an economic
system based on true Islamic concept of equality of manhood and social justice
"Quaid's concept of Islamic Banking [Opening Ceremony of The State Bank of
Pakistan on July 1, 1948]
The Holy Quran did not give any definition for the term for the simple reason that
it was well known to its immediate audience. But many scholars defined Riba in
the following words.
Imam Abubakr Al-Jassas (D.380 AH) in his famous work Ahkamul Quran has
explained riba in the following words:
“And the riba which was known to and practiced by the Arabs was that they used
to advance loan in the form of Dirham (silver coin) or Dinar (gold coin) for a
certain term with an agreed increase on the amount of the principal advanced.”
Shariah Board
BOARD OF DIRECTORS
Tarik Kivanc
Our Vision
Our Mission
Types of products offered
It is a long term investment product especially designed for the need and to fulfil
the requirements of the corporate and business concerns for purpose of
investing their provident, pension and Gratuity Funds as any sensible and wise
person who wants to invest his earning, his main concerns would be total security
along with the best returns possible, especially as these earnings or funds are a
trust from his employees and one that bears an important responsibility.
Furthermore, its sterling track record shows consistently beneficial and highly
competitive returns for their broad range of investors. Finally, comes the benefit
of truly Halal returns, a benefit you may not have had the opportunity to enjoy
before and one that you can now pass on to your employees, many of whom
would be grateful for such an opportunity.
High returns
This investment product is designed to meet the short term and long term
needs. The minimum investment is PKR 50,000 and it is available in tenures
of 3 and 6 months, 1, 2, 3 and 5 years.
Furthermore, these certificates can be encashed at any time without any charge or
penalty, only the profit rates will be adjusted according to the tenure completed.
You can earn profit on your investment on the following basis:
In the Riba Free COII, you enter into the Musharakah agreement that is strictly
in conformity with the principles of Islamic Shariah. The deposits of the
customers together with the Bank’s contribution are invested in a pool that
consists of Ijarah and Murabaha financing. The profit/loss on this pool is
calculated every month on the basis of profit sharing ratio determined by
assigning weightings. Such weightings are assigned at the beginning of every
month and are displayed on the bank notice board and website. This facility is
available during the course of investment. However, profit shall be paid only
after completion of one month of investment.
The riba free Monthly Musharakah Certificates are a flexible investment product
which has been designed to give the depositor a monthly return which is
Halal. The depositors participate with the bank in the pool of investments
With a minimum of only $100 you can open a Dollar Saving Account with
us under a Mudarabah arrangement that is strictly in conformity with the
principles of Islamic Shariah. The return earned on the Mudarabah pool is
calculated every month and the profit ratio for all investors is declared at the
beginning of the month. If you maintain a minimum average monthly balance of $
500, you shall be eligible to receive profits that shall be disbursed to you every
month. Apart from first class service and personalized attention that our customers
get when they bank with us, we offer the following additional conveniences to our
customers.
• No restriction on withdrawals or number of transactions.
• Call centre facilities
• Monthly profit payment
• Free bank balance certificates
• Taking stop payment instructions.
• Taking hold mail instructions.
• Issuance of duplicate statement of account.
• Personal financial consultancy services.
• Access to priority desk.
With a minimum of only PKR 10,000 THE Rupee Saving Account can be opened
under musharakah agreement. The profit earned is calculated every month. And if
the client maintains a monthly balance of PKR 10,000 the client is eligible for the
profits that will be disbursed every month. However, the clients of COII may open
this account with any minimum balance.
trouble and loss. This bank account that is ideal for businesses and individuals
looking for Shariah compliant banking and ease of access. With a minimum
amount of only Rs.10,000 this product offers you a range of benefits
including personalized checking facility, no restrictions on the number of
transactions, free Call Centre facilities, free balance certificates, priority
banking and much more.
No application fee
Ease of acquiring any new locally assembled car
No upfront Insurance Payment
No advance Rental
Available in tenures of 3, 4 and 5 years
Minimum security deposit as low as 20%
These modes of financing have been written by Maulana Taqi Usmani who is the
former Chairman of Shariah board of Meezan Bank. After studying these we will
be in a position to understand the 90% working of the bank. The important modes
of financing are:
1. Musharakah
2. Mudarabah
3. Ijarah
Hadees-e-Qudsi
Allah SubhanoTAllah has declared that He will become a partner in a
business between two Mushariks until they indulge in cheating or breach of trust
(Khayanah).
Introduction:-
the debtor. If the debtor suffers a loss, it is unjust on the part of the creditor to
claim a fixed rate of return; and if the debtor earns a very high rate of profit, it is
injustice to the creditor to give him only a small proportion of the profit leaving
the rest for the debtor.
"Shirkah" means "Sharing" and in the terminology of Islamic Fiqh, it has been
divided into two kinds:
Let us now examine some objections raised from practical point of view against
using Musharakah as a mode of financing.
Risk of Loss:-
their savings will either remain idle or will be used in transactions outside of the
banking channels, which will not contribute to the economic development at
national level.
loss does not refrain them from investing in these shares. The case of the bank
and financial institutions is much stronger, because their Musharakah
Apart from this, 'an Islamic economy must create a mentality which
believes that any profit earned on money is the reward of bearing risks of the
business. This risk may be minimized through expertise and diversifying the
portfolio where it becomes a hypothetical or theoretical risk only. But there is no
way to eliminate this risk totally. The one, who wants to earn profit, must accept
this minimal risk. Since this understanding is already there in the case of normal
joint stock companies, nobody has ever raised the objection that the money of the
shareholders is exposed to loss. The problem is created by the system which
separates the banking and financing from the normal trade activities, and which
has Compelled the people to believe that banks and financial institutions deal in
money and papers only, and that they have nothing to do with the actual results
emerging in trade and industry. Therefore, it is argued that they deserve a fixed
return in any case. This separation of financing sector from the sector of trade
and industry has brought great harms to the economy at macro-level.
Obviously, when we speak of Islamic banking, we never mean that it will follow
this conventional system in each and every respect. Islam has its own values and
principles which do not believe in separation of financing from trade and industry.
Once this Islamic system is understood, the people will invest in the
financing sector, despite the theoretical risk of loss, more readily than they
invest in the profitable joint stock companies.
These steps will serve as strong deterrent against concealing the actual
profits or committing any other act of dishonesty. Otherwise also, the clients of
the banks cannot afford to show artificial losses constantly, because it will be
against their own interest in many respects. It is true that even after taking all
such precautions, there will remain a possibility of some cases where dishonest
clients may succeed in their evil designs, but the punitive steps and the general
atmosphere of the business will gradually reduce the number of such cases (Even
in an interest-based economy, the defaulters have always been creating the
of dishonesty is more severe for the Islamic Banks and Financial institutions
working in isolation from the main stream of conventional banks. They have
not much support from their respective governments and central Banks. They
cannot change the system, nor can they impose their own laws and regulations.
However, they should not forget that they are not just commercial institutions.
They have been established to introduce a new system of banking which has its
own philosophy. They are duty bound to promote this new system, even if they
apprehend that it will reduce the size of their profits to some extent. Therefore,
they should start using the instrument of musharakah, at least on a selective basis.
Each and every bank has a number of clients whose integrity is beyond all doubts.
The Islamic banks should, at least, start financing them on the basis of true
musharakah. It will help setting good precedents in the market and induce others
to follow suit. Moreover, there are some sectors of financing where musharakah
can be used easily. For example, the
use of musharakah instrument in financing exports has not much room for
dishonesty. The exporter has a specific order from abroad. The prices are
agreed. The cost is not difficult to determine. Payments are normally secured by
a letter of credit. The payments are made through the bank itself. There is no
reason in such cases why the musharakah arrangement should not be adopted.
Similarly, financing of imports may also be designed on the basis of
musharakah with some precautions, as explained earlier in this chapter.
Many a time, it is mentioned that the clients are not willing to share with the
Banks the actual profits of their business. The reluctance is based on two reasons:
1. They think that the bank has no right to share in the actual profit, which may be
substantial, because the bank has nothing to do with the management or running
of the business and why they should (the clients) share the fruit of their labor with
the Bank who merely provides funds. The Clients also argue that conventional
banks are content with a meager rate of interest and so should be the Islamic
Banks.
2. Even if the above was not a factor, the Clients are afraid to reveal their true
profits to the Banks, lest the information is also passed on to the tax authorities
and Clients' tax liability increases. The solution to the first part, though not easy,
is not difficult or impossible either. Such Clients need to be convinced and
persuaded that borrowing on interest is a cardinal sin, unless there is a dire
necessity for such borrowing. Mere expansion of business is not a dire
need, by any stretch of imagination. By making a legitimate arrangement for
obtaining funds for their business, by way of Musharakah, not only do they
earn Allah's pleasure but also a legitimate return for themselves, as well as for the
Islamic Banks.
well as their Clients must lobby with the governments and struggle to change
the laws which hamper the progress towards Islamic banking. The governments
should also try to appreciate the fact that if rates of taxation are reasonable and if
the tax-payers are convinced that they will benefit by honestly paying their taxes,
this would increase, and notdecrease, government revenues.
Termination of Musharakah
(1) Every partner has a right to terminate the musharakah at any time after giving
his partner a notice to this effect, whereby the musharakah will come to an end.
In this case, if the assets of the musharakah are in cash form, all of them will be
distributed pro rata between the partners. But if the assets are not liquidated,
the partners may agree either on the liquidation of the assets, or on their
distribution or partition between the partners as they are. If there is a dispute
between the partners in this matter i.e. one partner seeks liquidation while the
other wants Partition or distribution of the non-liquid assets themselves, the latter
shall be preferred, because after the termination of musharakah, all the assets are
in the joint ownership of the partners, and a co-owner has a right to seek partition
or separation, and no one can compel him on liquidation. However, if the assets
are such that they cannot be separated or partitioned, such as machinery, then they
shall be sold and the sale-proceeds shall be distributed.
(2) If any one of the partners dies during the currency of musharakah, the contract
of musharakah with him stands terminated. His heirs in this case, will have
the option either to draw the share of the deceased from the business, or to
continue with the contract of musharakah.
However, in this case, the price of the share of the leaving partner must be
determined by mutual consent, and if there is a dispute about the valuation of the
share and the partners do not arrive at an agreed price, the leaving partner may
compel other partners on the liquidation or on the distribution of the assets
themselves.
The question arises whether the partners can agree, while entering into the
contract of the musharakah, on a condition that the liquidation or separation
of the business shall not be effected unless all the partners, or the majority of
them wants to do so, and that a single partner who wants to come out of the
partnership shall have to sell his share to the other partners and shall not force
them on liquidation or separation.
Most of the traditional books of Islamic Fiqha seem to be silent on this question.
However, it appears that there is no bar from the Shariah point of view if the
partners agree to such a condition right at the beginning of the musharakah. This
is expressly permitted by some Hanbali jurists. This condition may be justified,
especially in the modern situations, on the ground that the nature of
business, in most cases today, requires continuity for its success, and the
If a particular business has been started with huge amounts of money which has
been invested in a long term project, and one of the partners seeks liquidation in
the infancy of the project, it may be fatal to the interests of the partners, as well as
to the economic growth of the society, to give him such an arbitrary power of
liquidation or separation.
Murabaha
Introduction
Most of the Islamic banks and financial institutions are using "Murabaha" as an
Islamic mode of financing, and most of their financing operations are based on
"Murabaha". That is why this term has been taken in the economic circles today
as a method of banking operations, while the original concept of "Murabaha" is
different from this assumption.
"Murabaha" is, in fact, a term of Islamic Fiqh and it refers to a particular kind of
sale having nothing to do with financing in its original sense. If a seller agrees
with his purchaser to provide him a specific commodity on a certain profit
added to his cost, it is called a "Murabaha" transaction. The basic ingredient
of "Murabaha" is that the seller discloses the actual cost he has incurred in
acquiring the commodity, and then adds some profit thereon. This profit may be
in lump sum or may be based on a percentage.
enormous rules governing the contract of sale, and the Muslim jurists have
written a large number of books, in a number of volumes, to elaborate them
in detail. What is meant here is to give a summary of only those rules which are
more relevant to the transactions of Murabaha as carried out by the financial
institutions.
1. The subject of sale must be existing at the time of sale. Thus, a thing which
has not yet come into existence cannot be sold. If a non-existent thing has
been sold, though by mutual consent, the sale is void according to Shari„ah.
Example: A sells the unborn calf of his cow to B. The sale is void.
2. The subject of sale must be in the ownership of the seller at the time of sale.
Thus, what is not owned by the seller cannot be sold. If he sells something before
acquiring its ownership, the sale is void.
Example: A sells to B a car which is presently owned by C, but A is hopeful that
he will buy it from C and shall deliver it to B subsequently. The sale is void,
because the car was not owned byA at the time of sale.
After explaining the concept of Murabaha and its relevant issues, it will be
pertinent to highlight some basic mistakes often committed by the financial
institutions in the practical implementation of the concept.
1. The first and the most glaring mistake is to assume that Murabaha is a
universal instrument which can be used for every type of financing offered by
Obviously this is a fictitious deal, and the Islamic financiers must be very careful
about it. It is their duty to make sure that the client really intends to
purchase a commodity which may be subject to Murabaha. This assurance
must be obtained by the authorities sanctioning the facility to the customer. Then,
all necessary steps must be taken to confirm that the transaction is genuine.
For example:
(a) Instead of giving funds to the customer, the purchase price should be
paid directly to the supplier.
(c) Where either one of the above two requirements is not possible to be
fulfilled, the financing institution should arrange for physical inspection of
the purchased commodities.
Anyhow, the Islamic financial institutions are under an obligation to make sure
that Murabaha is a real and genuine transaction of actual sale and is not
being misused to camouflage an interest-based loan.
3. In some cases, sale of commodity to the client is effected before the
commodity is acquired from the supplier. This mistake is invariably committed
in transactions where all the documents of Murabaha are signed at one time
without taking into account various stages of the Murabaha. Some
institutions have only one Murabaha agreement which is signed at the time of
disbursement of money, or in some cases, at the time of approving the facility.
This is totally against the basic principles of Murabaha. It has already been
explained in this article that the Murabaha arrangement practiced by the banks
is a package of different contracts which come into play one after another at
their respective stages. These stages have been fully highlighted earlier
while discussing the concept of 'Murabaha Financing'. Without observing this
basic feature of Murabaha financing, the whole transaction turns into an
interest-bearing loan. Merely changing the nomenclature does not make it
lawful in the eyes of Shariah.
The representatives of the Shariah Boards of the Islamic banks, when they check
the transactions of the bank with regard to their compliance with Shariah, must
make sure that all these stages have been really observed, and every transaction is
effected at its due time.
Uses of Murabaha
Murabaha can be used in following conditions:
Short / Medium / Long Term Finance for:
Inventory
Equipment
Asset financing
Import financing
Export financing (Preshipment)
Consumer goods financing
House financing
Vehicle financing
Land financing
Shop financing
PC financing
Ijarah
"Ijarah" is a term of Islamic fiqh. Lexically, it means 'to give something on rent'.
In the Islamic jurisprudence, the term 'Ijarah' is used for two different
situations. In the first place, it means 'to employ the services of a person on
wages given to him as a consideration for his hired services."
The employer is called 'musta‟jir' while the employee is called 'ajir'.
The second type of Ijarah relates to the usufructs of assets and properties, and not
to the services of human beings. 'Ijarah' in this sense means 'to transfer the
usufruct of a particular property to another person in exchange for a rent
claimed from him.' In this case, the term 'Ijarah' is analogous to the English term
'leasing'. Here the lessor is called 'Mu‟jir', the lessee is called 'musta‟jir' and the
rent payable to the lessor is called 'ujrah'
The rules of Ijarah, in the sense of leasing, are very much analogous to the rules
of sale, because in both cases something is transferred to another person for a
valuable consideration. The only difference between Ijarah and sale is that in
the latter case the corpus of the property is transferred to the purchaser,
while in the case of Ijarah, the corpus of the property remains in the
ownership of the transferor, but only its usufruct i.e. the right to use it, is
transferred to the lessee.
Therefore, it can easily be seen that ‘Ijarah’ is not a mode of financing in its
origin. It is a normal business activity like sale. However, due to certain
reasons, and in particular, due to some tax concessions it may carry, this
transaction is being used in the Western countries for the purpose of
3. It is necessary for a valid contract of lease that the corpus of the leased
property remains in the ownership of the seller, and only its usufruct is
transferred to the lessee. Thus, anything which cannot be used without consuming
cannot be leased out. Therefore, the lease cannot be effected in respect of money,
eatables, fuel and ammunition etc. because their use is not possible unless they are
consumed. If anything of this nature is leased out, it will be deemed to be a loan
and all the rules concerning the transaction of loan shall accordingly apply. Any
rent charged on this invalid lease shall be an interest charged on a loan.
Example:-
A has leased his house to B. The taxes referable to the property shall be borne by
A, while the water
tax, electricity bills and all expenses referable to the use of the house shall be
borne by B, the lessee.
6. The lessee cannot use the leased asset for any purpose other than the purpose
specified in the lease agreement. If no such purpose is specified in the agreement,
the lessee can use it for whatever purpose it is used in the normal course.
However if he wishes to use it for an abnormal purpose, he cannot do so unless
the lessor allows him in express terms.
8. The leased asset shall remain in the risk of the lessor throughout the lease
period in the sense that any harm or loss caused by the factors beyond the control
of the lessee shall be borne by the lessor.
9. A property jointly owned by two or more persons can be leased out, and
the rental shall be distributed between all the joint owners according to the
proportion of their respective shares in the property.
10. A joint owner of a property can lease his proportionate share to his co-sharer
only, and not to any other person.
11. It is necessary for a valid lease that the leased asset is fully identified
by the parties.
Example:-
A said to B. "I lease you one of my two shops." B agreed. The lease is void,
unless the leased shop is clearly determined and identified.
Determination of Rental:-
12. The rental must be determined at the time of contract for the whole
period of lease. It is permissible that different amounts of rent are fixed for
different phases during the lease period, provided that the amount of rent for each
phase is specifically agreed upon at the time of effecting a lease. If the rent for a
subsequent phase of the lease period has not been determined or has been left at
the option of the lessor, the lease is not valid.
A leases his house to B for a total period of 5 years. The rent for the first year is
fixed as Rs. 2000/- per month and it is agreed that the rent of every subsequent
year shall be 10% more than the previous one. The lease is valid.
Example (2):
In the above example, A puts a condition in the agreement that the rent of Rs.
2000/- per month is fixed for the first year only. The rent for the subsequent years
shall be fixed each year at the option of the lessor. The lease is void, because the
rent is uncertain.
The determination of rental on the basis of the aggregate cost incurred in the
purchase of the asset by the lessor, as normally done in financial leases, is
not against the rules of Shari„ah, if both parties agree to it, provided that all
other conditions of a valid lease prescribed by the Shari„ah are fully adhered
to.
14. The lessor cannot increase the rent unilaterally, and any agreement to to this
effect is void.
15. The rent or any part thereof may be payable in advance before the
delivery of the asset to the lessee, but the amount so collected by the lessor
shall remain with him as 'on account' payment and shall be adjusted towards the
rent after its being due.
16. The lease period shall commence from the date on which the leased asset has
been delivered to the lessee, no matter whether the lessee has started using it or
not.
When I have start internship of Islamic Meezan Bank at 2nd September 2008. In first day I
have sat with Mr. Subtain (Operation Manager). He has very good person and he have
help me in this department that they have customer relationship department and try to
good information to customer or me relative to Meezan Bank so I have under your work
of one week. All members of the branch are very committed to their work. According to
hierarchy chart from top to bottom are very committed of work and prove helpful for me
during my internship.
Bank has decided to open a branch in Rahim Yar khan due its business market or market
potential. Today there is only one branch in Rahim Yar khan. This branch has appointed
21 officers. Meezan Bank, stands today at a noteworthy point along the evolution of
Islamic Banking in Pakistan. The banking sector is showing a significant paradigm shift
away from traditional means of business, and is catering to an increasingly astute and
demanding financial consumer who is also becoming keenly aware of Islamic Banking.
Meezan Bank bears the critical responsibility of leading the way forward in establishing a
stable and dynamic Islamic Banking system replete with dynamic and cutting-edge
products and services.
I am started my internship program 1st July. 2007 and ending date of this program 31st of
August.
I have done in all mostly work in every department.
Training program
1st week
I started my first day of internship with the introduction of bank employees
and with introduction of bank departments. In This week just know how work done in the
various departments in the bank Like:
• Finance
• Marketing
• IT
• Operation Management etc
• I knew about the purpose of the bank and the functions of the bank and judge the
practical performance of the departments.
• I started my second day of internship with the lecture of the bank officer. He told
us about Riba and its types:
Riba al Nasiah
Riba al Fadl
I started this week with the lectures of the Bank officer about bank and its performance. I
learnt the actual means of practical work in the bank. First of all I started my work in the
ACCOUNT OPPENING DEPARTMENT of the bank in which I learnt how an account
can be opened in a bank, which documents are necessary to attach it with the account
opening form and how many kinds of account are used in bank like
• Single
• Joint personal
• Sole proprietorship
• The signatures are done on form as well as on the specimen signature card from
where the signature will be scanned as a record in computer
Partnership
Limited company
Trusts
Clubs
Association etc.
For partnership
Trusts a/c
"The most difficult task related to bank for a common citizen is to open an a/c in any
bank" said Sir Tanveer.
Then the two applicant forms are filled in front of me. It took too much time to gather the
information from applicant.
• I filled up some forms for practical practices and knew about the nature of the form.
• I practically performed how letter of thanks attached to the forms and send to the
customer.
• I learnt about the different types of stamps, which are necessary for the account
opening and learnt about the use of the stamps at the right place.
• I learnt how to attach signature specimen card to the account opening form for bank
record.
4th Week
I started my week of internship with the daily lectures of the bank officer (Mr. Subtain
[OGII]) who is the organizer of internship program for internees in meezan bank.
• First of all I learnt about ATM PIN ISSUANCE procedure and knew why it is
necessary for customer or account holder.
• Then he showed us module in computer that how he enters the data of customer
and how it proceeds.
• After proceeding computer shows a pin number that is issued for that customer
who filled the form for ATM. And this work is done means pin issuance by Head
Office.
Then I learnt about the term ATM Cash Replenish. He told us that how it works and
what its procedure and why it is used.
5th Week
I started my working day with some work, which has to complete from the previous week
with account opening forms.
• I learnt about inward and out ward clearing and learnt how the transactions are
made.
• I learnt how to write the inward clearing cheques in the transaction record book.
• I learnt to deduct the return cheques from the added amount of all cheques.
• I learnt the entry of pay orders in the record book.
THEN
I started my work again in Accounts Department. The officer also does/handle the other
work Like REMITTANCE department.
• I learnt about the PAY ORDER and DEMAND DRAFT. He told us the difference
of Pay Order and DD.
• I learnt also about the procedure of it. I also saw the Pay Order cheque and knew
about its attributes.
• But DD is not made in Sahiwal Branch. But sometimes if necessary then they
made it. But mostly Pay Orders are made and send it to other cities also. Only
Meezan Bank provide this opportunity of Pay Order to send outside the city also.
• I also learnt about the facility of LOCKERS and its functions.
• Lockers have 3 types of it:
• The officer told us its functions and charges and I knew about that how can hold
locker and which documents are required for getting the lockers. Lockers are the
fire proof.
I attended the weekly meeting of bank manager with employees and attended the
lecture about modern way of banking delivered by the bank manager for the
success if the branch’s business.
I started my day with the daily lecture and general discussion about banking and scope of
banking in Pakistan in coming years.
8th Week
I started my 8th week of internship with the lecture of the Bank Manager who is Mr.
Shoaib, the lecture was about Islamic banking and its differences in convention banking.
• Islamic Banking is a system of Trade where Goods and Services are sold and
Capital is invested to earn Halal profit by taking Risk.
• Interest Free Banking is subset of Islamic Banking concept representing a number
of Banking Operations which avoid Interest.
• I learnt about Convention Banking which is based on Pricing money and earning
Interest.
• Apparently Islamic and Convention Banking may look same but Islamic Banking
is permissible means “Allah has permitted trade and forbidden Riba”.
• I learnt about difference b/w Islamic and Convention Banking up to some extent.
• Then I moved to next department that was ACCOUNTS DEPRTMENT.(with the
hold of IT deptt, Remittance deptt)
• I started my work in Accounts Department.
• The Officer who is Mr. Faysal gave the overview of his working that he does.
• I learnt about cheques how to fill them and knew about its functions.
• I learnt that in banking cheque is known as Dr. Instrument.
Simple crossing
Special crossing
• I knew also another type of cheque that is Order Cheque and its purpose and
function. That day I learnt about cheque procedure and its use in different ways.
Net Profit
25
20
15
10
5
0
1 2 3 4
2005 2006 2007 2008
From above we can analyze that growth are decreasing as per year so the bank has to
work over to improve their net profit. Bank has to remove if there is any barrier.
With the Strategic Plan in place our task for 2008 will be very challenging in the current
political situation and economic slow down witnessed in the last three months. However,
the Bank has a positive outlook for the country and believes that the future government
will continue with the growth policies. Therefore, the Bank will continue to build market
share through an aggressive branch expansion plan supported by a strong technology
backbone. Meezan Bank plans to expand its branch network to approximately 140
branches by the end of the year that will further increase its customer out-reach
INSHALLAH.
The financing and investment portfolio of local Islamic banks reached Rs. 185 billion in
December 2008 compared to Rs. 137.6 billion in December 2007. Market share in the
overall banking increased to five per cent at end December 2008 compared with four per
cent at end December 2007. Total assets of Islamic banking reached Rs. 271.1 billion in
December 2008 compared to Rs. 205.2 billion in December 2007.
100000
80000
Value of 60000
Assets 40000
20000
0
1 2 3 4
2005 2006 2007 2008
Share Price
50
40
30
Series1
20
10
0
1 2 3 4
2005 2006 2007 2008
From above we can analyze that the share price is low as compared to previous year, so
we have to keep focus on it. Make a plan to improve or increase price to attract previous
share holders.
Meezan Bank continued to attract and recruit staff through 2008 for its aggressive branch
expansion plan as well as for its Head Office departments. Meezan Bank believes that its
3000+ employees are its greatest asset and a major reason for its growth and success.
3
2.59
2 2.1 2.1
1.4
1
0
1 2 3 4
2005 2006 2007 2008
Solvency Ratio
20
10
0
1 2 3 4
Series1 3.58 3.6 10.13 12.4
2005 2006 2007 2008
Profitability ratio
0.02
0.01
0
1 2 3 4
Series1 0.018 0.002 0.0022 0.0024
2005 2006 2007 2008
Investment Ratio
0
1 2 3 4
Series1 1.16 1.88 1.96 1.26
2005 2006 2007 2008
In 2007 the per share earning is good but it decreases in 2008 1.96 to 1.26 so the
management has to give attention here.
20
15.92 15.2 17.03
10 10.51
0
1 2 3 4
Series1 15.92 10.51 15.2 17.03
2005 2006 2007 2008
25
20 20
15 16
10 10 8.6
5
0
1 2 3 4
2005 2006 2007 2008
The dividend has decreased 20 to 8.6 R.s. This is very bad for company’s good will or
stock market. Management has to focus over it other wise the company has to bear more
loss in future.
Average Ratio
2
1.67 1.57 1.7
1.5
1
0.82
0.5
0
1 2 3 4
2005 2006 2007 2008
Average Equity
20 18.39
16.7 15.64
15
10 10.3
5
0
1 2 3 4
2005 2006 2007 208
A small survey was conducted by asking some of the bank employees to do a SWOT
analysis of the bank in light of their experience in the banking field. My analysis,
consolidated with theirs', is given below:
Strengths
• Karachi, August 20, 2008: Meezan Bank, the largest Islamic Bank in Pakistan has
been conferred the Best Islamic Bank Award by Rawalpindi Chamber of
Weaknesses
• High charges for different activities such as online or Demand Draft as compared
to competitors.
• The Islamic economic system is not something that can work in isolation of the
geo-political and legislative system, as well as, and more importantly the society's
behaviors towards the injunctions of Islamic Shariah in personal and collective
matters. Accordingly, one can easily imagine that in an economy whereby most of
the businessmen are not honest in fairly presenting the financial statements of
Opportunities
• Venturing into Islamic groups out side the countries as opportunity to expand
business in UAE and Golf states. i-e financial institutions.
• Coming up with. Products for the SME to targeting the medium level customers.
• Doing business with companies having Islamic mindset. I-e Islamic financial
Institutions.
Threats
• New competitors setting up their Islamic banking sections and they have the
infrastructure, skill, ability, resources & attitude to capture the market more than
the Meezan bank.
• Govt. policies are mostly for conventional banking system not for specially
designed for Islamic banking.
Reviewing this SWOT analysis from time to time would help evaluate the bank's
position. It would help the management in comparing their strengths of the past with
those of the present and to what extent the management has been able to overcome the
weaknesses.
Meezan Bank Limited should continue to expand its business, by increasing its
deposit portfolio through aggressive market penetration strategies.
Meezan Bank Limited needs to improve its website.
More information relating to financial performance of the bank should be
available on the website.
Management should distribute work equally among different employees.
Some of the employees are overburdened while some sections are overstaffed.
Related jobs should be assigned to the employees so that they can work more
efficiently.
Cheques, which are drawn on Meezan Bank Branch and returned unpaid in
clearing, are not reflected in the Statement of Account of the customers. These
cheques must be reflected in the accounts so that credibility of the customers may
be assessed.
The employees should be signed jobs for specific period and than they should
shifted to other department so that they gain knowledge of other jobs. Lockers,
ATM, all these facilities should be provided to attract more customers.
Increase the Size of waiting room.
Here it been a conventional bank equipped with an extensive network and complete
portfolio of products, we would have proposed….
"Early to bed, early to rise
Work like hell & ADVERTISE"
But this is not the case with Meezan Bank. The network and the portfolio of the products
offered are limited. For this we would propose...
“Early to bed, early to rise
Work like hell & IMPROVISE"
• Innovation
• Market perceptions
• Prudence
• Rifle approach
• Objectives clearly understood
• Vision
• Identifying & understanding customer needs
• Satisfying customer needs
• Educating the customers
The organization has been not growing both in size and profit for past few years
and but repute in the market is good. The employee turnover is very high which they have
to cut down as they are losing a number of good trained employees due to its poor policy.
The year 2007 is expected to offer increased competition in the secured assets business as
more Islamic banks are in the market. With their focused strategy and product
development initiatives planned for the year, Meezan Bank is strongly positioned to meet
these challenges. The bank has very well repute in the market. Overall bank is going well
and doing a good business but there are few problems for that I have tried to give few
recommendations that might help company to improve. So finally this internship program
has helped me a lot in gaining practical knowledge of job that will help me in the
practical life once I complete my BBA.
www.meezanbank.com.pk
www.almeezan.com.pk