INTERNSHIP REPORT

MEEZAN BANK LIMITED

SUBMITTED TO: SIR FARHAN GILLANI

SUBMITTED BY: SHAFAQ KHAN KHAKWANI

Student of BBA (Hons)
BBA-013R11-70
Session: 2011-2015
Specialization: Human Resource Management

DEPARTMENT OF BUSINESS ADMINISTRATION

INSTITUTE OF SOUTHERN PUNJAB, MULTAN

 ACKNOWLEDGMET

All praises belong to almighty Allah who the supreme authority knows the ultimate
relation underlying all sorts of phenomenon going on in this universe and my humblest
thanks to the Holy Prophet Hazrat Muhammad (PBUH) who is forever a torch of
guidance & knowledge for humanity as a whole.

In the preparation of this internship report, I acknowledge the encouragement and

assistance given by a number of people from Meezan Bank Ltd. I found every one very
co-operative and helpful for providing me the theoretical as well as practical knowledge
about the function and operation of the bank. I am heartily grateful to Branch Manager
Mr. Naveed Bari, Operation Manager, Mr. Hussain Abbas Saddique and Mr. Parvaiz
Akhtar Sahu.

I pay my special gratitude to all my honorable teachers who have been teaching me
various courses during the last 4 years at ISP and are a complete source of character
building and moral support for all of us.

May all of them live long and enjoy a happy life.

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 DEDICATION

I dedicate this report to my parents without their help and encouragement it would not have been
possible for me to accomplish this task within the specific time limit I was provided with
every facility by my parent which were necessary in order to complete this challenging
assignment. Specially, I dedicate this report to all my ISP teachers who guide me for completion
of this report & I want to dedicate all these efforts to the whole team of ISP management and
Sir Syed Farhan Gillani who helped me for completion of this report.

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 APPROVAL CERTIFICATE

The Board of Examiner approved internship report and recommends award of the degree of BBA
(Hons) as the student has successfully defended viva voce.

External Examiner:

Internal Examiner:

Dean / Chairman:

Viva Date:

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 DECLARATION

I hereby declare that the work contained in the report written by “Shafaq Khan Khakwani”
Roll No. 70 student of Bachelor of Business Administration has been carried out under the
supervision of “Sir Farhan Gillani”. I also hereby declare that this report has not been submitted
for any degree elsewhere.

------------------------------
Shafaq Khan Khakwani
Roll No. 70
BBA (Hons)
Session: 2011-2015

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 PREFACE

Business environment are becoming more and more complex with the passage of time.
To understand and deal with the new phenomenon, one need a lot of energy and
knowledge .So business education has become an evolving science, which help to solve
the business problems.

Internship is an integral part of the study of BBA course. It provides the opportunity of
peeping into the real economics of the country. It enables us to evaluate and understand
the practical application of all the terms & techniques that we have studied during our
course and report.

ISP issued me letter for internship at “Meezan Bank Ltd”. I submitted letter in HRM
office of Organization. After passing the internship interview and test, I joined the
organization on Thursday 20th August 2015.

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 TABLE OF CONTENTS

S.No. Particulars Page No.

1 Introduction to the Bank 7
2 Difference between Islamic and conventional banking 8
3 Riba or Interest 10
4 Modes of Islamic Banking 11
5 Meezan Bank Introduction (Vision, Mission) 13
6 Departments of Meezan Bank 14
 Customer Services Department 14
 Procedure for Account Opening 20
 Operation Department 21
 Clearing Department 21
 Cash Department 26
7 Meezan Products and Services 28
HRM
8 HR Process in the organization 41
9 HRP Process 41
10 forecasting HR Requirement 41
11 Staffing Mix 42
12 Action Plans 42
13 Promotion & Training 43
14 Methods to Forecast HR Needs 43
15 Employee Recruitment and Selection 44
16 Employee Recruitment & Selection Process 45
17 Training and Development 46
18 On Job Training 49
19 Benefits 52
20 SMS Alerts 57
21 SWOT Analysis 61
22 PESTEL Analysis 64
23 Recommendation 67
24 Observation and Conclusion 68
25 References 69

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 INTRODUCTION

What is a Bank?

Professor Reynolds defines Bank as:

“Banks do the business of money rather do business of lending and borrowing

money.''

Professor Barton says:

“Banks are the guardian and distributor of money”

Banking is the business of providing financial services to consumers and businesses. The
basic services a bank provides are checking accounts, which can be used like money to
make payments and purchase goods and services; savings accounts and time deposits that
can be used to save money for future use; loans that consumers and businesses can use to
purchase goods and services; and basic cash management services such as check cashing
and foreign currency exchange.

Islamic v/s Conventional Banking

The conventional banking, which is interest based is a banking system in which loans are
given to people at fixed interest rates and more the time period taken to pay, more
becomes the amount to repay.

What is Islamic Banking?

“Islamic banking is system of conducting trade and banking activities in line with the
principles of Islamic Shariah while avoiding all the prohibited activities such as interest
or riba, financing of haram trades & businesses etc.”

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It is not banking which is based on pricing money and earning interest as conventional
interest based bank do but it is a system of trade where goods and services are sold and
capital is invested by taking risk to earn halal profits.

It is also not just change of name as many mis-understood but it is based on the Quranic
injunctions of

‘God has permitted trade and forbidden interest.

(Surah al-Baqarah, Verses 275)

What Distinguished Islamic Banking With Conventional Banking?

The following are the main points that distinguished Islamic banking with conventional
banking.

 Transactions are asset-based

 It is socially-responsible banking because it operates under Shariah restrictions

 Does not permit financing of prohibited goods / Industries

 It starves evil out of the society Ethics and moral values play a major role in
investment decisions. Not a choice but a must.

Conventional Banking

Money
Bank Client

Money + Money (interest)

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 Islamic Banking

Bank Goods & Client

Services

Money

Distinguishing Features

Conventional Banking Islamic Banking

- Conventional banking prices money. - Islamic banking prices goods and services,
which creates real wealth in the society
leading to economic well-being.

- Is based on fixed return on both Sides of the - Is based on profit sharing on deposits side,
balance sheet. and on profit on assets side.

- Actively participates in trade and

- Does not involve itself in trade and business
production.

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- Depositors get a fixed rate regardless of the - Profit is shared with the depositor, higher
bank’s profitability, thus insulating them the bank’s profit, higher the depositors
from the bank’s true performance. income.

- Based on money trading. Money is the - Depositors get Encourage asset-based

medium of exchange and not a commodity. financing and based on commodity trading.

-Partners, investors and traders, buyers or

Creditor-Debtor relationship
seller relationship

Aims at maximizing profit without any Aims at maximizing profit but subject to
restriction. Shariah restrictions

Functions and operations are based on fully Functions and operations are based on
man made principles Shariah principles

Islamic bank can only guarantee deposits for

Conventional bank has to guarantee all its
deposit account, thus depositors are
deposits
guaranteed repayment of their fund

RIBA OR INTEREST
Definition of Riba

The word Riba means excess, increase or addition, which correctly interpreted according
to Shariah terminology, implies any excess compensation without due consideration.

(This definition of Riba is derived from Quran and is unanimously accepted by all
Islamic scholars).

Types of RIBA

There are two types of Riba .

 Riba An Nasiyah

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  Riba Al Fadl

1. RibaanNasiyah:

Defined as excess, which result from predetermined interest which a lender receives over
and above the principle (RasulMaal).

2. Riba Al Fadl:

Defined as excess compensation without any consideration resulting from a sale of

goods.

Riba in The Qur'an

1. First Revelation (Surah al-Rum, verse 39)

"That which you give as interest to increase the peoples' wealth increases not with
God; but that which you give in charity, seeking the goodwill of
God, multiplies manifold." (30: 39)

Quaid’s view of Islamic Banking

“We must work our destiny in our own way and present to the world an
economic system based on true Islamic concept of equality of manhood and social
justice”.

Modes of Islamic Banking

MURABAHA
Literally it means a sale on mutually agreed profit. Technically, it is a contract of sale in
which the seller declares his cost and profit. Islamic banks have adopted this as a mode of
financing. As a financing technique, it involves a request by the client to the bank to
purchase certain goods for him. The bank does that for a definite profit over the cost,
which is stipulated in advance.

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IJARAH
Ijarah is a contract of a known and proposed usufruct against a specified and lawful
return or consideration for the service or return for the benefit proposed to be taken, or
for the effort or work proposed to be expended. In other words, Ijarah or leasing is the
transfer of usufruct for a consideration which is rent in case of hiring of assets or things and
wage in case of hiring of persons.

IJARAH-WAL-IQTINA
A contract under which an Islamic bank provides equipment, building or other assets to
the client against an agreed rental together with a unilateral undertaking by the bank or
the client that at the end of the lease period, the ownership in the asset would be
transferred to the lessee. The undertaking or the promise does not become an integral part
of the lease contract to make it conditional. The rentals as well as the purchase price are
fixed in such manner that the bank gets back its principal sum alongwith with profit over
the period of lease.

MUDARABAH
A form of partnership where one party provides the funds while the other provides
expertise and management. The latter is referred to as the Mudarib. Any profits accrued
are shared between the two parties on a pre-agreed basis, while loss is borne only by the
provider of the capital.

MUSHARAKAH
Musharakah means a relationship established under a contract by the mutual consent of
the parties for sharing of profits and losses in the joint business. It is an agreement under
which the Islamic bank provides funds, which are mixed with the funds of the business
enterprise and others. All providers of capital are entitled to participate in management,
but not necessarily required to do so. The profit is distributed among the partners in pre-

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agreed ratios, while the loss is borne by each partner strictly in proportion to respective
capital contributions.

BAI SALAM

Salam means a contract in which advance payment is made for goods to be delivered
later on. The seller undertakes to supply some specific goods to the buyer at a future date
in exchange of an advance price fully paid at the time of contract. It is necessary that the
quality of the commodity intended to be purchased is fully specified leaving no
ambiguity leading to dispute. The objects of this sale are goods and cannot be gold, silver
or currencies. Barring this, Bai Salam covers almost everything, which is capable of
being definitely described as to quantity, quality and workmanship.

Introduction

During 1997, Al-Meezan Investment Bank was established as the first Islamic bank of
Pakistan. Mr. Irfan Siddiqui appointed as first and founding Chief Executive Officer.

Vision

Establish Islamic banking as banking of first choice to facilitate the

implementation of an equitable economic system, providing a
strong foundation for establishing a fair and just society for
mankind.

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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.

Branch Network:

Meezan Bank has a vast branch network in all the major cities of Pakistan. The branch
network is now rapidly growing and it has reached up to 390 branches in more than 100
cities of Pakistan. The management is still planning to increase this number there are also
chances that in near future this network will grow

DEPARTMENTS OF MEEZAN BANK LIMITED

There are 4 main departments at the branch:

 CUSTOMER SERVICES DEPARTMENT

 OPERATIONS DEPARTMENT

 CASH DEPARTMENT

 CREDIT DEPARTMENT

CUSTOMERSERVICES DEPARTMENT

Account opening and closing is the function of customer services department. The
bank’s customers includes individuals (single or joint), firm (partnership/
proprietorship), Autonomous corporations, Limited companies, Charitable
Institutions, associations, Educational Institutions or local bodies.

Brief Explanation of these accounts is as follows

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Products offered by this department:

a) Riba Free Rupee Savings Account

 Current account

 Saving Account

b) Riba Free Dollar Savings Account

 Foreign Currency Account

BASIC OF ACCOUNT OPENING

Account opening is the basic and first relationship, which is established between Bank
and the customer. In account opening extreme care has to be exercised in case of
completion of account opening documentation.

Whenever a client comes in the bank in order to open an account the first information that
is given to him/her about the types of accounts, which can be opened, so far this purpose
the client is given detailed information about the accounts and their respective profit
rates.

TYPE OF ACCOUNTS OPENED

 CURRENT

 SAVING

Sub-categories of Accounts and the Basic Requirements:

There are different types of account holders are required for all these types of account
holders. The operation/procedure requirement that is needed for “Individual Account”
differs greatly from the “Joint Accounts” proprietorship A/C, Partnership A/C, Private
Limited Company A/C and Public Limited Company A/C.

INDIVIDUAL’S ACCOUNT

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When a single man or woman opens an account in his or her own name and has the right
to operate, it is called individual A/C.

DOCUMENTATION

 Copy of National Identity Card.

 Proper Identification (Introduction).

 Any proof of employment/business if applicable.

OPERATIONS

 The person place in the type of account and type of operation required in the
account opening form.

 He/she fills in part 1 of the form, a fix his/her either two of four similar
signature ( or thumb expression in the signature space ) and get it introduced
and signed by a person who already has an account with the bank and write his
account number in the specific rows in a specific space.

 The person fills his or her father, mother, husband/wife or any other relative’s
name, his/her address, phone number, his or her sign to certify this
requirement. This requirement is needed because in his/her absence bank can
have correspondence with a specific person.

 The person deposits the initial amount for opening account onto the cash
counter. The person put his signature on form on two places in “authorized
Signature” and fills in the “Title of Account” space by writing his name.

 If the person put his signature in Urdu or any other language other than
English, he signed a “Vernacular Form”.

 The next day is opening of account.

MINOR ACCOUNT

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Minor account opens for kids and teens to save their money.

DOCUMENTATION

 Bay form and copy of passport minor

 National Identity card of Guardian

 Signature requirement of guardian

JOINT ACCOUNT

When two or more persons neither partners nor, trustees, open an account in their name is
joint account.

DOCUMENTATION

 Copy of N.I.C card.

 Identification (Introduction).

OPERATION

 The person checks the type of account and type of operation required in the
respective box on the form.

 The person fills the Part-1 and Part-II

 Signature of box or all persons are obtained on the formed in the area specified for
signature.

 In the title of account space names of all persons maintained.

 Account holders specified in the form that they will operate the form singly or
jointly.

ACCOUNTS OF ILLITERATE [Photo Account]

These accounts can be opened individually or jointly.

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For men, the right hand thumb impression and for women, the left hand thumb
impression is taken on account opening form.

The customer is given advice to come to bank by himself in order to withdraw any cash
or deposit the cheque.

REQUIREMENTS:

 Photocopy of NIC of Account Holder.

 Two-three passport size photographs.

CORPORATE ACCOUNTS

PROPRIETORSHIP ACCOUNT

When the owner of the firm operates singly, open an account in his firm name.

DOCUMENTATION

 Copy of N.I.C.

 Status of the firm.

 Copy of Sole Proprietorship Declaration.

 Account opening request &proprietorship letter on firms letter head.

OPERATION

All operation remains the same, except that the firm name is written in “title of account”
area and Signature of the proprietor in the specified area

PARTNERSHIP ACCOUNT

The account is opened in the firm name and all partners designate one or two persons to
act behalf of the partnership firm all acts of the firm jointly and severely.

DOCUMENTATION

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  Copy of N.I.C of all partners.

 Status of the firm ( In case of registered firm ).

 The attested copy of Partnership Deed (in case of registered firm ).

 Operation of the A/C (as per deed).

 Third party Mandate.

 Letter showing the authority of one or more partners to act on.

 Account opening request letter on firms letter head

OPERATION

All other requirements are same except that all partners dully sign the form, cards are
signed by all of those partners who will act on behalf of the firm.

PRIVATE LIMITED COMPANY ACCOUNT

DOCUMENTATION

 Copy of certificate of Incorporation

 N.I.C of all partners.

 Articles and Memorandum of association.

 List of directors.

 Resolution of Board of directors.

 Certificate of Incorporation Form 29 (B) (Lasted Copy).

 Latest copy of certified Form 29 (B)

 Company secretary will certify all these copies.

OPERATION

 The person authorized in the resolution of the board of directors put their signature
on the S.S Card.

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  Next of Kin requirement is not need in a case of Private Limited Company. Other
procedure is same.

 After completing each and every formalities are signed by all partners who will act
on behalf of the firm.

PUBIC LIMITED COMPANY ACCOUNT

DOCUMENTATION

 Copy of N.I.C of all partners.

 Articles and Memorandum of association.

 List of directors.

 Resolution of Board of Directors.

 Certificate of commencement of Business.

OPERATION

Operation is same as Private Limited Company

PROCEDURES FOR ACCOUNT OPENING

First of all, after inquiring from the customer what type of account he/she wants to open,
the account opening form is got filled from the customer and signed it. Along with the
account opening form, the customer is also signed two Specimen Signatures Cards.

After fulfilling all the formalities of account opening, the computer generated account
number is given to the customer that is of special series depending on the type of account.

REQUISITION SLIP

A requisition slip is given to the customer to sign it so that the customer can get cheque
book. Cheque book is issued after one day of receiving the requisition slip.

LETTER OF THANKS

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After opening the account “A Letter Of Thanks” is send to the customer in order to thank
the customer for opening an account in the Bank. This letter tells all the information
regarding his/her accounts, which are kept very confidential.

ACCOUNT OPENING REGISTER

After an account is opened, an entry is made in the account opening register, which has
the following columns:

 Date

 Account Number

 Name & Address

 Telephone Number

 Initial Deposit

Customer Services/Relation Officer enters the new account opened in computer and the
Specimen signature Cards are also scanned so that whenever a cheque of the respective
account comes for encashment, the signatures can be verified.

OPERATION DEPARTMENT

The banking operations division is mainly responsible to manage the operations i.e. work
processing functions in the bank. This division has a pivotal role, as it has to work in
close coordination with almost all the other Divisions/Departments for a smooth
functioning of the bank. The Banking Operations Division controls branch operations
besides supervising international Banking Department. The role played by the branch
operations department is important in the pretext that they implement operational
policies, procedures and ensures strict compliance of the same through liaison with
internal audit Division.

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In this Branch Mr. Ubaid Ali Asghar is Operations Manager. He carries and looks after
all the operations ofBranch. He build friendly environment to motivate the employees in
a very effective manner and promotes team work in them.

FUNCTIONS PERFOMED UNDER OPERATION DEPARTMENT:

1. CLEARING

2. REMITTANCE

CLEARING

In clearing process, if the account holder of MBL receives the cheque of other bank like
City Bank, Habib Bank Limited etc, and he submits it in MBL branch to be cashed. At
the same time the clearing process starts. First the bank name, Cheque number and the
amount are written in the register. After this three kind of stamps are required first bank
name stamp, secondly clearing stamp of next date and If the cheque is not local then the
intercity clearing stamp is required.

Some cheques are local and some are outstation. The institution N.I.F.T. provides the
services of clearing. They send the different cheque to different banks. The N.I.F.T
service is only in few cities, like Karachi, Lahore and Rawalpindi. The cheque of inter
city is send through N.I.F.T. And where, the N.I.F.T service is not available so the
cheque is sent through T.C.S.

The clearance of cheque is informed through advice. Some cheque is not passed so they
should return so Rs. 100 is deducted and if the cheque is intercity then the postage
charges is deducted. For this purpose the Debit & Credit voucher is used. When the
cheque is cleared the today stamp is required. Some cheque is drawn on MBL. This is
called outward clearing. These cheques will be entered in the outward clearing register.
And the advice is sent for the clearance of cheques. The account holder account is
credited.

 Inward clearing

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  Outward clearing

INWARD CLEARING

In the morning, the bank receives its own cheques, which have been presented by the
customers in some other bank to be deposited in their account. NIFT provides the facility
of bringing cheques for inward and also takes the cheques of outward clearing to other
banks. The cheques received in inward clearing are the cheques drawn on bank and the
bank has to pay for them. For this purpose the bank makes clearing in computer by
checking the balances of the respective customer, if their balances are up to the mark then
that cheque is cleared and the respective customer account is debited with the respective
amount. If the balances are short then that cheque is bounced back to the related bank.

Reasons for returning a cheque:

 All required stamps of Clearing, Crossing and Endorsement are not present on
cheques.

 Cheque is post date.

 Refer to drawer

 Effects not cleared, may be presented again

 Amounts in words and figures differ.

If any of these reasons exists then that cheque is returned through NIFT and deducts Rs.
300 from customer’ account as cheque returned charges.

Then the report of returning any cheque is sent through fax to the head office Karachi.
After this put the entry in Cheque return register showing the following columns:

 Date

 Title of account

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  Account number

 Cheque number

 Bank and Branch name

 Reason to return

OUTWARD CLEARING:

All the cheques of other banks which are deposited to MBL are presented in outward
clearing. This is said as outward clearing because they are presented on the very next day
after depositing a cheque.

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SERVICES PROVIDED BY CLEARING FUNCTION

1. TRANSFER OF AMOUNT

2. TELLING ACCOUNT BALANCES

3. ISSUING CHEQUES BOOKS

1. TRANSFER OF AMOUNT

If a customer holds two accounts in the bank and he/she wants to transfer money from
one account to other account, customer writes a cheque and fills deposit slip in which
he/she writes account number to which amount is to be transferred. After making transfer
entry in the computer, affix transfer stamp in the middle of the cheque, crossing on the
upper left and bank’s endorsement stamp on the backside of the cheque.

2. TELLING ACCOUNT BALANCES

Whenever clearing officer receives phone call from the customer inquiring about his/her
account balance after confirming the name, address and other information he tells the
balance throughcomputer.

3. ISSUING CHEQUE BOOKS

It is also the duty of department to issue a chequebook when an officer receives request
from the customer.

REMITTANCE

Another important department in MBL is Remittances Department. The remittances

department transfers the funds from one bank to other bank and from one place to another
place.

In remittances department the collection take place. The MBL made payment of only
open cheques on the counter and prohibits the payment of crossed cheques. MBL
transfers money from one place to another by the following means:

1. Pay order
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 2. Inward collection

3. Outward collection

1) PAY ORDER:

Pay order is an order to pay money but this payment is to be made within city. In other
words it can be said that the payee and the payer should be in one city.

In pay order the payment can be made in

A) Cash

B) Clearing

C) Transfer

PROCEDURE:

In case of pay order first of all the customer has to fill a pay order application form in
favoring section: name, account number, amount, beneficiary name, address, etc.

The data is entered in already set format of pay order in computer and pay order print out
is taken. An authorized person and manager operations are signed pay order.

The original copy of the pay order is given to the customer and carbon copy is kept with
bank for office record.

2) INWARD COLLECTION

When the bank receives cheques of any other bank from its any branch situated in the
some other city, and then those have been dealt as inward collection.

OTHER FUNCTIONS UNDER OPERATIONS DEPARTMENT

a) LOCKERS

Lockers operations shall not be permitted under power of attorney of a customer. A

customer wishing to allow another person or agent may be requested to open a new
locker account under joint names and close the existing account.

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In offering this facility branches have to be selective and should provide lockers to the
customers whose identity and integrity is verified, who should maintain account with the
branch and have potential for deposits and other banking business. It is reiterated that
honesty, creditability and good reputation of the customer is of utmost importance in the
selection of customer for lockers.

KEY FEATURES:

 Available in selected branches

 Available in 3 sizes (small, medium and large)

 For all eligible Account Holders

 Key security Deposit PKR 3000

Procedure

 Application on Prescribed Form duly filled

 Saving/Current Account with MBL

 02 Passport size Photographs

b) CHEQUE BOOK HANDLING

 Application for New Cheque Book

CASH DEPARTMENT
The cash department is the most important department of the bank. It receives cash from
customers and then deposits it into the accounts of the customers and maintained their
balances. This is the most important and critical department in a Bank. There are two
basic functions performed by the cash department. These are

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RECEIPTS

An individual who has account in the Bank can deposit money in his account. For deposit
of the money the individual has to fill the deposit slip in which the account holder writes
his name, Account number, amount of the money both in figures and in words.

After filling the deposit slip the Cash amount along with the deposit slip is submitted
with the cashier. The cashier collects the cash and counts it and after verification the
cashier stamps the deposit slip. One part of the deposit slip is given back to the customer
and the other part of the deposit slip remains with the bank for the record purposes.

The cashier also record the deposits made by the customers in credit sheets daily. The
deposits of all customers of the bank are controlled by mean of ledger account. Every
customer has its own ledger account and has separate ledger cards in which his / her total
record is kept.

Bill collection is also one of the main functions of bank. Cashier has to prepare a list of
bills’ serial number, a copy of which is to be sent to the corresponding organization.

PAYMENTS

The procedure of clearance of a cheque or payments is as following. First of all the

customer presents his cheque to the cashier. The cashier records the account number and
the amount, which is to be drawn. Then the cashier check the cheque number in the
computer for the verification whether the account holder has such amount in his account
which he is demanding or not. If the computer passes the cheque, the Passing officer
signs the cheque and sent it to the cash counter then cashier pays the written amount to
the customer and then in the end cashier records the amount paid in computer.

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 MEEZAN PRODUCTS AND SERVICES
MEEZAN BANK PERSONAL BANKING

Meezan bank personal banking provides the following products and services:

 Rupee Current Account

 Rupee saving Account

 MeezanBachat Account

 Meezan Business Plus

 Labbaik Saving Aassan

 Dollar Saving Account

 KarobariMunafa Account

Due to prohibition of interest in Islamic Shariah, all the deposits are based on the
principle of Modarabah. This is a kind of partnership where one partner gives money to
another for investing in a commercial enterprise. The investment comes from the first
partner who is called "Rab-ul-Maal" while the management and work is an exclusive
responsibility of the other, who is called "Mudarib" and the profits generated are shared
in a predetermined ratio.

TYPES OF MUDARABAH

There are 2 types of Mudarabah namely:

Al Mudarabah Al Muqayyadah: Rab-ul-Maal may specify a particular business or a

particular place for the mudarib, in which case he shall invest the money in that particular
business or place. This is called Al Mudarabah Al Muqayyadah (restricted Mudarabah).

Al Mudarabah Al Mutlaqah: However if Rab-ul-maal gives full freedom to Mudarib to

undertake whatever business he deems fit, this is called Al Mudarabah Al Mutlaqah
(unrestricted Mudarabah). However Mudarib cannot, without the consent of Rab-ul-Maal,

29
lend money to anyone. Mudarib is authorized to do anything, which is normally done in
the course of business. However if they want to have an extraordinary work, which is
beyond the normal routine of the traders, he cannot do so without express permission
from Rab-ul-Maal. He is also not authorized to:

a) Keep another Mudarib or a partner\

b) Mix his own investment in that particular Modarabah without the consent of Rab-
ulMaal.

Conditions of Offer & Acceptance are applicable to both. A Rab-ul-Maal can contract
Mudarabah with more than one person through a single transaction. It means that he can
offer his money to 'A' and 'B' both so that each one of them can act for him as Mudarib
and the capital of the Mudarabah shall be utilized by both of them jointly, and the share
of the Mudarib.

RUPEE CURRENT ACCOUNY

Meezan Current Account is a Rupee-based current account that provides you the
convenience of putting your money in a Riba-free account and accessing it without any
restrictions on withdrawal while enjoying a host of professional conveniences from
Meezan Bank.

Meezan Current Account is based on Qard contract where the Bank is liable to pay your
money back on demand. The Bank can use these funds for investment and other
purposes. This account allows you the peace of mind of having your money safely
deposited with a bank with the additional assurance that the Bank is not investing your
money in activities that contravene Shariah principles.

30
Meezan Current Account can be opened by Individuals, Sole-Proprietorships,
Partnerships and Limited Companies.

Basic product features:

 Minimum amount required to open account= Rs. 1,000

 Riba Free COII Holders may open accounts without any minimum balance
requirements.

 Free issuance of Cheque Book

 Free issuance of Pay Order

 Free Online banking service at all Meezan Bank branches

 Free Internet Banking facility

 No restriction on withdrawals or number of transactions

 No deduction on low balance maintained

What do I need to open an account?

Just fill in the Account Opening Form, bring in your original Identity Card, and get
introduced by an existing banker. This is all that you need to open a Current Account
with us and enjoy our personalized banking services.

RUPEE SAVING ACCOUNT

31
Basic features of Saving Account

A unique bank account that offers the opportunity to earn Halal profits, while
enjoying a range of added benefits. It can be opened with a minimum amount of only
Rs.100. The profit on this account is calculated on daily basis and paid on a monthly
basis, and comes with a variety of free benefits including personalized check books, no
restrictions on transactions, priority banking and so on.

 Minimum amount required to open account Rs. 100

 Riba Free COII Holders may open accounts without any minimum balance
requirements.

 Profit will be calculated on daily product basis

 Profit will be paid on monthly basis

 Free issuance of Cheque Book

 Free issuance of Pay Order

 Free Online Banking service at all Meezan Bank branches

 Free Internet Banking Facility

 No restriction on withdrawals or number of transactions

 Globally accepted Meezan VISA Debit Card

 Free bank balance certificates

What do I need to open an account?

Just fill in the Account Opening Form, bring in your original CNIC, and get
introduced by an existing banker. This is all that you need to open a Saving Account with
us and enjoy our personalized banking services.

32
How Saving Account works?

Riba-Free Rupee Saving Account works under the principles of Mudarabah and is
strictly in conformity with the rules of Islamic Shariah.

On agreeing to become an account holder, the customer enters into a relationship based
on Mudarabah with Meezan Bank. Under this relationship, the customer is an Investor
(Rabul Mal), and the bank is the Manager (Mudarib) of the funds deposited by the
customers.

The bank allocates the funds received from the customers to a deposit pool. These
funds from the pool are utilized to provide financing to customers under Islamic modes
that include, but are not restricted to, Murabaha and Ijarah.

MEEZAN BACHAT ACCOUNT

MeezanBachat Account is a unique saving account that provides high expected monthly
returns with the flexibility to withdraw savings if needed. MeezanBachat Account offers

a higher expected rate of return with nearly the same convenience and service of a regular
savings account.

MeezanBachat Account can be opened by Salaried or Self-employed, Housewives and

Retired individuals.

On agreeing to become a MeezanBachat Account holder, the customer enters into a

relationship based onMudarabah with Meezan Bank. Under this relationship, the
customer is an Investor (Rab-ul-Maal) and the Bank is the Manager (Mudarib) of the

33
funds deposited by the customers. The Bank allocates the funds received from the
customers to a deposit pool; funds from the pool are utilized to provide financing to
customers under Islamic modes that include, but are not restricted to Murabaha,
Ijarah, Istisna and Diminishing Musharkah.

Basic features of Bachat Account

 Minimum investment required to open an account is Rs. 25,000/-

 Maximum balance limit for getting a higher profit weightage is Rs. 5,000,000/-

 Free issuance of Cheque Book

 Free issuance of Pay Order

 Free Online Banking service at all Meezan Bank branches

 Free Internet Banking facility

 Profit will be calculated on the Daily Product Basis

 A lower weightage will be applicable for profit calculation if the daily closing
balance of the account exceeds a specified threshold (currently Rs. 5,000,000/.

 Profit payment is made to your Meezan Bank account on a monthly basis.

 Waiver of application fee for Car Ijarah & Easy Home for accounts with
minimum balance of Rs. 500,000

MEEZAN BUSINESS PLUS

Meezan Business Plus is a Mudaraba-based account that allows you to conduct your
banking transactions while availing a wide range of free services and therefore provides
you the ideal blend of convenience & flexibility that you deserve in Islamic banking.

34
Meezan Business Plus Account can be opened by Individuals and businesses including
Sole Proprietorships, Partnerships and Limited Companies.

On agreeing to become a Meezan Business Plus Account holder, the customer enters into
a relationship based on Mudarabah with Meezan Bank. Under this relationship, the
customer is an Investor (Rab-ul-Maal) and the Bank is the Manager (Mudarib) of the
funds deposited by the customers. The Bank allocates the funds received from the
customers to a deposit pool. These funds from the pool are utilized to provide financing
to customers under Islamic modes that include, but are not restricted to Murabaha,
Ijarah, Istisna and Diminishing Musharkah.

Key features:

 Minimum investment required to open an account is Rs. 100/-

 There is no restriction on withdrawals or numbers of transactions
 There is no deduction of service charges if the balance maintained is low
 You will have instant access to your account both through Internet Banking and
through Online Banking at all branches of Meezan Bank across Pakistan
 The following facilities will be provided free of charge* if an average monthly
balance of Rs. 25,000/-is maintained in the account
 Free Cheque books
 Free Pay Orders
 Free VISA Debit Card
 Free Account Statements
 Free Online Banking
 Free Internet Banking
 Free Hold Mail Facility
 Free SMS Alert services
 Free intercity clearing
 No charges for Pay Order Cancellation

35
LABBAIK SAVING ASAN

MeezanLabbaik Saving Aasaan is an ideal deposit product for you if you are an
individual saver and wish to save for your spouse, children, parents, etc. You can take
benefit from this special Mudarabah based Deposit account (available in six months to
twenty years plan) for Umrah & Hajj where you will also be entitled for profit on the
deposited amount, thus providing Customers a bigger incentive to save for Umrah/Hajj
through MeezanLabbaik Saving Aasaan.

On agreeing to become a Labbaik Saving Aasaan Account holder, you will enter into the
relationship of Mudarabah with the Bank. Under this relationship, you will be the
Investor (or Rab-ul- Maal) and the Bank will be the Manager (or Mudarib) of the funds
deposited by you in the Deposit pool. These funds will be utilized by the Bank to provide
financing to customers under Islamic modes of financing, including but not limited to
Murabaha, Ijarah, Istisna and Diminishing Musharakah.

Meezan Labbaik Saving Account can be opened by Individuals, Sole-Proprietorships,

Partnerships and Limited Companies.

Key Features:

MeezanLabbaik Savings Aasaan provides a number of features including:

 Available for individuals, where customers can open a single / joint account
with family members

 Minimum amount to open the account is Rs. 1,000/-

 Labbaik Saving Plan is available for six (06) months to twenty (20) years

 Labbaik Saving Account is a Pak Rupee account

 It will be a Recurring Deposit Account, where customers will deposit monthly

contribution as per the deposit schedule plan

36
  Labbaik Saving Account is a non-chequing account, where no cheque book or
VISA Debit Card will be issued

 Apart from regular monthly deposit contribution customers can deposit

additional amounts in order to complete the deposit amount and make the
desired journey earlier than initially scheduled

 After completion of the desired deposit amount, customers will have a right to
travel with Meezan Bank or redeem his funds to go with an alternate company
or utilize the funds for alternate purposes

 No pre-mature withdrawal schedule will be applied

DOLLER SAVING ACCOUNT

The Riba-free Dollar Savings Account is a Mudarabah-based savings account that you
can open and operate using US Dollars and is therefore an excellent business tool for
both individuals and corporate clients for meeting their business needs and for
diversifying their investment in different foreign currencies to safeguard against currency
fluctuations.

The Meezan Dollar Saving Account can be opened by individuals and businesses
including Sole Proprietorships, Partnerships and Limited Companies.

Dollar Savings Account works on the principle of Mudarabah under which the customer
is an Investor (Rab-ul-Maal), and the Bank is the Manager (Mudarib) of the funds
deposited by the customer. The Bank allocates the funds received from the customers to a
Deposit pool; funds in the pool are invested under Islamic modes of finance that include
but are not restricted to Murabaha, Sukuk and Ijarah.

37
Key Features:

Enjoy a range of accessible features including:

 Free Cheque book

 Minimum investment required to open an account is $100
 There is no deduction of service charges if the balance maintained is low
 Profit will be paid a on monthly basis
 Profit will be calculated on daily product basis, which ensures that you are
getting a return on your investment all the time
 Foreign Remittances

KAROBARI MUNAFA ACCOUNT

KarobariMunafa is a high profit savings account specifically tailored for large Corporate
or GoP-controlled entities. It allows customers to earn higher returns on surplus cash
balances, has no preset transaction limits and comes with a variety of benefits.

KarobariMunafa Account can be opened by Individuals, Sole-Proprietorships,

Partnerships and Limited Companies.

The KarobariMunafa Account works on the principle of Mudarabah under which the
customer is an Investor (Rab-ul-Maal), and the Bank is the Manager (Mudarib) of the
funds deposited by the customer. The Bank allocates the funds received from the
customers to a Deposit pool. Funds in the pool are invested under Islamic modes of
finance that include but are not restricted to Murabaha, Sukuk and Ijarah.

Key features:

 Minimum investment required to open an account is Rs. 10,00,000/-

 Profit will be calculated on daily product basis

 Profit will be paid on monthly basis

 Free issuance of Cheque Book

38
  Free issuance of Pay Order

 Free Online Banking service at all Meezan Bank Branches

 Free Internet Banking facility

 No restriction on withdrawals or number of transactions

 Dedicated Relationship Manager

How KarobariMunafa Account works?

Riba-Free KarobariMunafa Account works under the principles of Mudarabah and is

strictly in conformity with the rules of Islamic Shariah.

On agreeing to become an account holder, the customer enters into a relationship based
on Mudarabah with Meezan Bank. Under this relationship, the Customer is an Investor
(Rabul Mal), and the Bank is the Manager (Mudarib) of the funds deposited by the
customers.

The bank allocates the funds received from the customers to a deposit pool. These funds
from the pool are utilized to provide financing to customers under Islamic modes that
include, but are not restricted to, Murabaha and Ijarah.

How is profit calculated and distributed on Accounts?

 The bank calculates the profit of the deposit pool every month. Profit is distributed
at the Gross Income level. The Gross Income is calculated after deducting costs
and expenses directly incurred in deriving that Income.

 Gross income of the deposit pool is shared between the Bank (Mudarib) and
customers (Rabul Mal) on the basis of a pre-determined profit sharing ratio
announced at the beginning of the period.

 The Banks profit sharing ratio is 55% and Depositors profit sharing ratio is 45% of
Gross Income except dollar saving account

39
  The profit is distributed among the account holders on the basis of predetermined
weightages, announced at the beginning of the month, based on their respective
category/tiers.

 At the end of the month, the Bank may unilaterally reduce its profit sharing ratio
for the benefit of depositors.

 In case of a loss, as per the rules of Mudarabah, the deposit pool shall bear the loss
in the ratios of investment of depositors.

 Profits to be calculated on average monthly balance and disbursed every month

 The weightages used for profit calculation are in the following tiers

 Profit rates and weightages shall be derived and announced on a monthly basis

 If during the month the average deposit falls below Rs. 10,000 no profit/loss shall
be applicable

Note: All banking transactions at Meezan Bank Limited are in strict adherence to the
Islamic Shariah and are monitored by our Shariah Advisor and the Shariah Board

40
 HUMAN RESOURCE MANAGEMENT
MBL an organization that provides opportunities for its staff to have a challenging and rewarding
long-term career. To this end the Human Resource Group (HRG) encourages and motivates its
employees to excel in the responsibility that they have in the organization .It believes that
creativity and innovation comes from talent, knowledge and experience and it is MBL’s
endeavor to provide and maintain an environment which not only nourishes these strengths but
also provides opportunities for the staff to have a career which has multidimensional growth
opportunities.

In doing so, HRG has been restructuring and redesigning the overall structure of the
organization, which includes rationalization, cutting down the decision layers, improvement in
staff training and hiring professionals and MBAs at entry-level management.

The overall direction of HRG has been towards nurturing the strengths of the human capital to its
maximum with a defining principal to help create a progressive environment and sustain a
thorough commitment of our staff towards focused customer service.

HRG therefore recognizes the need to proactively invest in staff training and develop courses on
a regular basis. Under the umbrella of its Management and Organization Development Division
(MODD) its Management Development Institute (MDI) with its three fully equipped chapters at
Karachi, Lahore & Islamabad regularly conducts and outsource technical and personal
development courses for its all level of staff enabling them to meet the challenges of the ever-
changing business requirements and customer needs. During 2008, 529 courses, workshops, skill
development clinics and seminars in the disciplines of Service & Attitude, Market Research &
Selling, Management & Communication, Credit & Finance, I.T. & e-Banking, Treasury & Trade
Finance, Global/ Domestic Banking Operations and on other diverse subjects were conducted by
In / Ex-House professionally skilled, qualified and certified faculty and industry experts for
10233 people of senior / middle line management & staff carving 1334 days training days. There
is no budget limit for Training and Education at Meezan Bank.

HR Group aims to maintain and further improve the service-oriented culture and to make
employment not only satisfying but also enjoyable.
41
HRM PROCESS IN THE ORGANIZATION
HUMAN RESOURCE PLANNING AND FORECASTING

The processes by which management ensures that it has the right personnel, who are capable of
completing those tasks that help the organization, reach its objectives. Another part of the current
assessment is the job analysis.

Human resource planning can be condensed into three steps.

1. Assessing current human resources.

2. Assessing future human resource needs.

3. Developing a program to meet future.

HRP PROCESS
Major steps in the Human resource planning process are to ascertain:-

1. Goals and plans of organization

2. Current human resources situation

3. Human resource forecast

4. Implementation programs

5. Audit and adjustment

At Meezan bank of Pakistan this process of planning is done at Head Office Karachi and
Regional Offices implement all these strategies which are determined during the planning at
Head Office.

FORECASTING HR REQUIREMENTS

Forecasting of HR requirements, at MBL is made on the following parameters:-

 Staffing Level

Number of employees needed to meet the strategic plans of the bank.

42
 Staffing Mix

There are following categories of working staff in MBL as mentioned below:-

o Executives

o Officers

o Clerical staff

o Non-clerical staff

Organization and Job Design

 Proposed projects for launching as per the future requirements.

 Available / projected sources

As per following method e.g.:-

Projected employees 80

Available employees 60

_____

Net requirements __20_

Action Plans

 Staffing authorizations

The Regional office is authorized to hire employees by outsourced company’s e.g. Security
guards, Janitorial services, Sales & Marketing staff.

 Recruitment

All the new recruitments on permanent basis is made according to the laid down procedure
and policies at Head Office Level. So, all the major decisions are taken by the Senior
Executive management of the bank regarding recruitment of permanent staff.

43
 However, recommendations / suggestions are taken by the Head Office from Regional
Offices time to time.

 Promotion & Transfer

Normally after every 03 years Promotion / Move-over is given to the employees on the basis of
their ACRs (Annual Confidential Reports), performance reports, recommendations, seniority and
so on

 Organizational changes

As per the requirement of the bank, organizational changes are also taken whenever bank
management feels the changes necessary for the bank.

METHODS TO FORECAST HR NEEDS

At MBL, HR forecasting is being done according to the following model:-

Forecasting Model

Current Losses / Back-up In Future Surplus /

Strength Withdrawal Requirements Shortage

Plans of MBL may include the following course of actions:-

 Inauguration of new branches.

 No. of pensioners.
 No. of utility bills
 No. of A/c holders
 New products to go launching in future

44
 EMPLOYEE RECRUITMENT AND SELECTION

vacancy published in newspapers Applications received and Scanned

Eligible candidates are called for written test

Group Discussion Final Individual Interview

45
Employee Recruitment & Selection Process

The start of the recruitment process gives the business time to reassess the nature of people’s
jobs and consider future requirements.

The recruitment and selection process will be:

1. Vacancy arises

2. Job analysis

3. Job description

4. Job specification

5. Job advertised in appropriate media

6. Application forms and short listing

7. Interviews and selection

8. Vacancy filled Steps

Job Analysis

Job analysis is the foundation for forecasting the need for human resources.

Supply Analysis

Supply Analysis focuses on identifying organizational competencies, analyzing staff

demographics, and identifying employment trends.

Demand Analysis

Demand Analysis deals with measures of future activities and workloads, and describing the
competency set needed by the workforce of the future.

46
Gap Analysis

Gap analysis is the process of comparing information from the supply analysis and demand
analysis to identify the differences, the gaps, between the current organizational competencies
and the competency set needed in the future workforce.

Action Plan

Action Plan is the process of developing strategies for closing gaps in competencies and reducing
surplus competencies.

HR Planning

HRP is becoming more important in bank as a result of globalization, new technologies,

organizational restructuring and workforce diversity.

“The right number of people with the right skills, experiences, and competencies in the right jobs
at the right time”.

HR Process:

a. Determine the organizational mission:

It states MBL’s overall purpose and basic business scope and operations it provides information.

b. Scan the organization environment:

This is known as SWOT analysis through this process MBL’s HR department identify
opportunity, threat, strength and weakness that can be faced by the MBL.

c. Set strategic goals:

Set specific long term and short term goals and objectives. These goals are specific, challenging
and measureable.

47
d. Formulate a strategic plan:

Course of action is designed to meet strategic goals and departmental goals are selected at this
step.

These are steps of HRP process.

 Determining the objectives.

 Defining skills required to meet objectives

 Determine additional human resources requirements in light of current HR.

 Develop action to meet the anticipated HR needs.

Recruitment

Recruitment starts with the objectives of bank and the specification of HR requirements.

 Initial Screening

Initial screening is the basic step of employee recruitment. Here the separation down of the
qualified and un-qualified candidates.

 Selection

Selection of New employees by the bank through written tests, & interview process.

 Orientation

Orientation is particularly important for familiarization visual, presentation, briefing about

the MBL policy, procedures and benefits.

 Placement

After completion of recruitment process, the employees are posted at needy positions /
branches.

 Training

According to job descriptions and specifications training programmers are arranged in MBL.
48
Training and Development:

Training is the process of teaching new employees the basic skills they need to perform their jobs
and development is result of that training.

For training and developing MBL follows five steps process of training and development

 Needs analysis: Identify job performance skills needed, assess prospective trainee’s
skills, and develop objectives.

 Instructional design: Produce the training program content, including workbooks,

exercises, and activities.

 Validation: Presenting (trying out) the training to a small representative audience.

 Implement the program: Actually training the targeted employee group.

 Evaluation: Assesses the program’s successes or failures.

 Task analysis:

In this area a detailed study of a job to identify the specific skills required, especially for new
employees are analyzed.

 Performance analysis:

After analyze the main tasks required in performing jobs it is verified that there is a performance
deficiency and determining whether that deficiency should be corrected through training or
through some other means (such as transferring the employee). If there is found some deficiency
in performing job then training is highly recommended to recover deficiencies.

Training methods used by MBL:

 On-the-job Training

 Off-the-job Training

 Apprenticeship Training

 Informal learning

49
  Effective lectures

 On-the-job Training:

Having a person learn a job by actually doing the job is OJT. Methods of OJT are

 Coaching or understudy

 Job rotation

 Special assignments

 Action Learning

Coaching or understudy:

It is the OJT method in which employee is coached and taught by profession that how to do the
job in order to meet MBL’s goals and objectives. At managerial level the trainee works directly
with a senior manager or with the person he or she is to replace; the latter is responsible for the
trainee’s coaching.

It is done at all levels of job. New employees are trained through coaching and old employees
are also trained through this method like when some new innovation is introduced old employees
are trained in order to handle that new innovation. In 2008 all managers have been trained to
operate Misys Software (Automation of service provision and book management).

Job Rotation:

Moving a trainee from department to department to broaden his or her experience and identify
strong and weak points. Job rotation is usually done at managerial level. MBL’s Manager
Associate (MA) program is used for job rotation training.

Special Assignments:

Special assignments are also given to employees for special training. These assignments are
actually related to tasks within the branch by achieving those tasks assigned by trainer, employee
get training.

50
Action Learning:

Management trainees are allowed to work full-time analyzing and solving problems in other
departments. This OJT method is just for managerial level employees.

Off-the-job Training:

It is the method which is opposite to the OJT. In this method employee does not get training at
his/her work place. This method of training is only for managerial level employees. Off-the-job
training methods are

 Case study method

 Outside seminars

Case study methods:

Special case studies are given to employees which contains some dilemma about banking sector.
By solving those case study problems employee gets training to take bold and effective decision
in crucial situations.

Outside seminars:

MBL encourages its employees to participate in the seminars arranged by banking sectors not
just in the Pakistan but also beyond the boarders. By participating in outside seminars employee
gets authentic knowledge about the new horizons of banking sector which is useful for HBL and
makes it leading bank in Pakistan

Training need assessment:

In training need assessment following sources help HR department.

 New technology
 Customer complains
 Interview with managers

51
 Customer satisfaction survey
 Employee complaint
 Company records
 Observation etc
 Self assessments

Month Training for Selected Candidates:

 1 month at IBP( Institute of Bankers Pakistan)

 1.5 month at Staff College

 The staff college obtains low-ranking bank officers for more preparation in banking sector
with the course duration from six to nine weeks having 25 students in each course.

 The bank also employs officers to attend banking tutorial both in Pakistan and out of the
country and it adds immense significance to the flow of thoughts, information and facts
which can be helpfully add to from these get-togethers.

Meezan Bank of Pakistan has two essential training methods:

1. It is associated with the training and development of mid term plans, concerning new
customers & middle level staff.

2. Training & development for long-standing plans, concerning the job development of senior
level staff.

 Meezan Bank of Pakistan implements off-job and on-job policies to educate middle and
higher level its workers.

 Meezan Bank of Pakistan training & development school counsels Job rotation to make
sure and make easy the creating of all rounder.

 Meezan Bank of Pakistan has faith in pre-post training test for on hand staff and post
training test for new human resources.

52
 Benefits
1 Hospitalization

Free medical treatment to some limits, only for self and spouse,
children.

2 Life Takaful

Insurance only of employees.

3 Club membership

It is a kind of strategy so that more customers are attracted to

their bank. This membership is only for high authority.

4 Not extra profit

In-case of loan, car leasing, house financing etc. Profit is not

charged by the employees.

5 Leaves

a) Causal leaves (10)

b) Annual leaves (30)

c) Mandatory (10)

End service benefits

1 Provident fund:

Small part of salary is deducted from employee salary that amount is added to head office
account which is opened for the time of employee retirement.

2 Gratuity:

Time period of working months multiply by basic salary.

53
Meezan Bank’s personality
1) Sober

2) Truthful

3) Committed to Excellence

4) Empathetic

5) Professional

6) Extremely loyal

7) Trust worthy business partner

8) Committed to the cause of Islamic banking

Policies of Meezan Bank

1) Dress Code for Males:

An appropriate code includes trousers, dress shirts, tie and dress

shoes (black\brown) on all working days. For Friday ShalwarKameez. Formal dressing
code for Saturday, hair style according to their profession

2) Dress code for Females:

Female employee should dressed elegantly with head scarf and

abaya or any modest dressing, ShalwarKameez with abaya.

3) Women Harresment:

Meezan Bank is fully secured for women.

4) Staff Attendance & Punctuality:

Monday- Thursday 9:00am to 6:00pm (45 min for prayer or lunch)

54
 Friday 9:00am to 6:00pm (2hours for prayer or lunch)

5) Not internal Fraud

Strict legal action is taken by authority if any employee is

involved in any fraud or damage to customer or bank.

6) Bank ethics:

Accounts information is not given to others.

Service quality

Quality involves exceeding customer expectation. Quality is applied to products, services,

processes and environment. Customers are the focus of every business today. They are the one
who defined quality.

Service Mission

To develop a committed service culture which ensures the

consistent delivery of our products and services within the highest
quality service parameters, promoting Islamic values and ensuring
recognition and a quality banking experience to our customers.

OTHER SERVICES
You can stay in touch with your account via the following services

24/7 BANKING

24/7 Banking provides nonstop banking convenience, twenty four hours a day, seven
days a week. These services provide account access to you from any location within
Pakistan and abroad (via Internet Banking), even on holidays.

55
24/7 Debit Card

Accepted at most prominent outlets across Pakistan, the Meezan Bank Debit Card offers
you safety, convenience and control on spending 24 hours a day, seven days a week.
Unlike credit cards, there are no monthly bills, no service charges and no late payment
fees as it work on "Buy Now, Pay Now" principle.

Notes

 The purchase limit on your Debit Card is PKR 50,000 per day, subject to sufficient
funds being in your selected account to cover your transaction.

 Never tell your 4-digit PIN CODE to the merchant, always enter it yourself.

 At merchant outlets, make sure that your ATM / Debit card is swiped only ONCE,
in your presence, and on an Orix machine.

Internet Banking

Meezan Internet Banking is the smarter way to bank, providing you global access to your
account 24 hours a day, 7 days a week. With Meezan Internet Banking, you can get
secure and convenient access to the following facilities: -

 Balance inquiry of multiple accounts

 View account statement

 Real time cheque status and stop payment request

 Cheque book and payorder request

 Lodging and tracking status of complaints

 Account activity alerts

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To utilize the Meezan Bank internet banking facilities, simply follow the two-step
registration process by filling in the online registration form and submitting a hardcopy of
the same as an indemnity form at your branch.

ATM Network

Meezan Bank offers a wide network of ATMs located at its branches as well as
prominent offsite locations. You do not need to carry cash anymore; simply go to the
ATM and withdraw cash anywhere, anytime. We also offer access to more than 2,000
ATM locations country-wide via 1Link and MNET Network.

Features

 Transfer funds between your own accounts in the same branch via ATM.

 The cash withdrawal limit for Meezan Visa Debit Card per day subject to the
funds present in your selected account.

 You can withdraw cash from any other bank’s ATM which is the member of either
MNET or 1Link network

Notes

 Funds can only be transferred between accounts (of different nature) within the
same branch.

 Applies to same branch accounts which have been linked to the ATM card being
used.

 If using any non-Meezan ATM, the cash with drawl limit of that machine will be
applicable on you.

 For example if the machine's daily cash limit is PKR 25,000, then that machine
will only provide the customer PKR 25,000 during that day.

 Charges of PKR 15 per transaction will be applied when 1Link or MNET ATMs
are used for cash with drawl.

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SMS Alerts

Meezan SMS Alerts service makes your life easier and more convenient than ever before.
Now you do not need to call or visit the branch to inquire about your daily transactions.

Once you sign up for the Meezan SMS Alert service, you will receive an instant SMS
alert from Meezan Bank on your mobile phone whenever any of the following
transactions occur on your account(s).

Alerts Types

 Debit Alert: An instant SMS alert to inform you when any amount is deducted
from your Current or Savings account(s).

 Credit Alert: An instant SMS alert to inform you when any amount is added into
your Current or Savings account(s).

 Low Balance: An instant SMS alert is sent to inform you that your account(s) has
gone below the predefined low balance amount.

 Cheque Bounce: An instant SMS alert to inform you that your cheque has been
dishonoured.

Applying for SMS Alert Service

Please visit any Meezan Bank branch and submit your completed SMS Alert Registration
form (available at all branches). You will receive the SMS Activation alert within three
days of submission, acknowledging that you have successfully registered for the service.

Important

 SMS Alert service is applicable to all Current and Saving accounts (either or
survivor in case of joint accounts)

 The service is currently for customers residing in Pakistan.

 SMS Alert Service is not available on Mobile Network Portable (MNP) numbers

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24/7 Call Center

With our Call Centre facility, you no longer have to take time out to visit your branch for
your everyday banking needs. By simply dialing 111-331-331 (dial 00-92-21-111-331-
331 from outside Pakistan) you get access to a wide range of Tele-banking solutions and
personalized banking services including answers to questions on Islamic Banking. You
can also access our self-service banking, where you will be guided and assisted in all
transactions by our Interactive Voice Response System (IVR).

Services Provided on IVR

 Check your account balances

 Instruct issuance of pay orders and demand drafts

 Transfer funds between your own accounts

 Order issuance of chequebook

 Check transaction history of your accounts

 Receive information on various MBL products and services

 Issue stop payment instructions

 Report loss of your chequebook

 Register your comments and suggestions regarding MBL products and services

 Request or change T-PIN

 Report loss of Visa Debit Card or cheque(s)

 Request for new Internet Banking Username / Password.

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ATM Helpline

You may instantly contact our Call Center officers for any inquiry by just picking up the
phone located beside the ATM.

Customer Expect
1) Performance

2) Reliability

3) On-time delivery

4) Clear and correct transaction processing

How it achieved?
1) Customer focus

2) Obsession with quality

3) Problem solving

4) Long term commitment

5) Team work

6) Education and Training

Surprise visit
For this purpose regular branch surprise visits are scheduled to monitor or guide the branches on
regular basis following checks are made:

1) During the surprise visit

2) Flow time management

3) Notice board maintenance

4) Dress codes

5) Banks Stationery

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6) Hearing & Caring\Complaint box

7) ATM Rooms

8) Branch morning checklist

Mystery Shopping
It is done by use of agents acting as if they were customers. It helps us to identifying process,
training gaps, as well as mind set of any individual. It is used to get the real time observation of
how the branch is working or how the customers is attended in reality.

Segments of Mystery Shopping

1) Reception

2) Staff evaluation

3) Teller service

4) ATM

5) Branch Ambiance

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 SWOT ANALYSIS

Strengths

 Meezan have moved rapidly in expanding branches network nationally and

internationally. More than 390 branches are working presently throughout
Pakistan under Islamic banking divisions.

 Meezan have made a break-through in providing premier services at an affordable

cost to its customers.

 Bank having good friendly environment

 Customer satisfaction remains its priority. And this phenomenon is achieved possibly
only when they know their customers’ requirements and needs and want better and
efficiently.

 Increased profitability is no doubt the major goal to achieve for any organization rather
business entity so is an aim and goal of the Bank Meezan Limited.

 Core philosophy of honesty is attractive and impressive in the field.

 Transparency in customer dealings is the strength of bank in the sense that they do never
deceive their customers and fair deal is working motto.

 A premier organization operating locally

 Provides the complete range of financial services to all segments under one roof.

 Managing customer experience

 Because of good services customers feel proud to be an account holder

 Customers refer other people to enjoy different schemes and open their accounts.

 Online banking

 Higher management committed to the quality

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Weaknesses

 The majority of people are not well aware about the products of Bank Meezan.

 There should be advertisements especially for home, agri& car loans, RTC and
Credit Cards.

 Bank official time of closing is 6:00 pm but due Mismanagement of time

employees leave their desk at 8.00 pm which is so hectic and cause employee
frustration.

 A behavior has been noted that bank tries to feel at ease with good looking rich
and educated people and the un-educated and old customers feel some bit strange
in the environment of the bank.

 Proper guideline should be given to the customer about bank products.

 They must facilitate customers with current information.

 The number of cash counter must be increased

 Online payment slips need plenty of time to go through

Opportunities

 The policies of the new government to uplift the economy and pursue financial
sector reforms are expected to yield positive results in the banking industry of the
country. The Bank Meezan is very well praised to avail promising opportunities.

 As a result of the different steps taken by the Government regarding the

betterment of the economy, small borrowers are attracted to get the financing and
start small businesses. So, the Bank Meezan has an opportunity to attract the
customers by giving them attractive schemes.

 The need of privatization has made people to switch to banks to satisfy their needs
of lending and borrowing. This not only increases the deposits but also the credit
business.

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  Bank Meezan is surrounded by many competitors it has an opportunity to
aggressive marketing to increase its business.

Threats

 Bank Meezan has many competitors who are continuously increasing their
products and marketing aggressively it may cause its customer to shift to its
competitors.

 The decrease purchasing power of consumer in the current economic situation of

the country affecting the business activity speed too much and the result is the low
investment from the investors in new projects can create problem for the bank
because it is working a lot in trade.

 The privatization of other banks is also a threat for the Bank. Due to the
privatization of the different bank e.g. MCB; the competition has increased a lot.
Furthermore many private banks have come in the sector due to which it is
becoming more difficult day by day to attract the customers.

 The biggest threat in the banking sector is the continuous downfall of the country
economy since the last few years. If this downfall remains for more few years
then it may be the great hindrance in achieving the Bank’s objectives.

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 PESTEL ANALYSIS
Political Analysis:

Political forces also play an important role for the continual of smooth and regular operations
of the bank. The present political scenario of Pakistan is not favorable for the banking sector
however the present government is establishing and maintaining good relations with the
foreign nations due to which many of the banks have entered the Pakistani banking industry.

 State bank of Pakistan regulates the policies of all banks in Pakistan including
Meezan Bank so when the government changes policies are also changes which
ultimately affects the bank a lot.

 The present policies and instructions given by the SBP are favorable for the banks
and Meezan bank is also satisfied with the current government policies.

Economical Analysis:
In the banking industry the economic forces of the country matters a lot. Economic conditions
affect different variables like income, employment, recession and prosperity which influences
the demand for banking services in that country. So a bank must understand the Economic
forces. The Economic factors that I observe with respect to Islamic banking in Meezan bank are
as follows:

 In the current situation when economy is nearly at recession. So government needs to

borrow from the local banks, which would increase the demand for the loans by the
government.

 The rate of interest is increasing but as Meezan bank is a Riba free bank so it has no
impact on the operations of Meezan bank.

 If we look at the global economic situation than we see that nearly whole world is
passing through recession. Banks are shutting down because people are going bankrupt,
so most of the people globally are not keeping money in the bank. But not even a single
bank has been shut downed in Pakistan. Our banking industry is not facing the mistrust
situation by the government.

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Social Analysis:

Social environment of an organization plays an important role in the performance of an

organization. The analysis reveals the vital role of the culture and society in the success and
failure of an organization. An organization must carefully observe the cultural and societal forces
while performing its operations in that particular area. This analysis of Meezan bank analyzed
the following facts.

 Bank is open for every one and a person from social class can utilize its facilities by
completing its legal requirement. As it is an Islamic bank that’s why it’s culture is also
based on Islamic values.

 Another point is that Pakistan is an Islamic Country and according to Islamic teachings
interest is totally prohibited (haram) in Islam. People Advice the banks to involve in the
Islamic Banking system but the demand for the services of the bank is not much affected
by this concept.

 Lifestyle of most of the people is moderate because majority of the people are middle
class. In Pakistan the trend is different from foreign countries regarding the borrowing of
money of different purposes like buying house, car and education.

Technological Analysis:

 Technology plays an important role in providing the effective and efficient services to its
customers. Meezan bank is familiar with the latest technologies and also implements
them in Bank. Bank gets many advantages by the implementation of new technology.
The latest software used by MBL is T20 for handling the accounts and other services of
the customers.

 Now a day the latest and emerging trend is E-Banking. Through the internet banking
people can access their information without visiting the bank. Through E-banking people
are having 24 hours banking service at their home PC or pocket PC. Bank can get rid of
crowding of customers and also to deal with extra customers they would also have to hire
more employees. So by the electronic banking there would be few customers to visit the

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 bank directly which would reduce the cost of bank for hiring new employees.
Implementing the new technologies is too costly but the reduce costs in long run.

Environmental Analysis:
Meezan bank is an environment friendly organization. It is ISO 14000 certified.Meezan bank
has launched customer friendly products which I have discussed above in my report. Bank has
built a trust environment among its customers most of the customers now feel pleasure by
dealing with the bank. Banks deposits ratio have been increased when compared with the past
years with 131029 millions.

Legal Analysis:
Legal forces are important and play a vital role for the establishment and continuous successful
operation of the bank.In our country State Bank of Pakistan is the central bank which governs all
banks. All the banks need to work within the instructions and the permission of the SBP. Legal
forces of Meezan bank are:

 The most basic and important role of SBP is that it determines the policies which are
followed by every bank in Pakistan.

 Another legal instruction that is given by the government is that no bank is allowed to
leak out the personal information of any customer. But if some intelligence agencies like
FIA or governmental institutions like FBR need the personal information of someone
than the banks would have to provide the required information to the institution.

 To promote and develop Islamic Banking industry in line with best international
practices, ensuring Shariah Compliance and transparency SBP has issued certain rules

 Instructions and Guidelines for Shariah compliance

 Guidelines for Islamic Microfinance Business by Financial Institutions

 Fit & Proper Criteria for Appointment of Shariah Advisors

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 RECOMMENDATIONS

Finally, here are some suggestions for Bank Meezan Limited. These suggestions are
based on my observation while my stay at bank.

 This is a routine practice that in order to give personalized services to the

customer, bank staff tries to fill all the columns of AOF with their own
handwriting, which is wrong. AOF must be filled in by the customers. Bankers
should avoid filling in the AOF because it can create problem if the address, title
of account or any other information provided by the customer has not been written
properly. Customer may be affected or he may claim that the information was not
provided by him, but if AOF is filled by the customer then bankers will not held
responsible for any incorrect information provided by the customer.

 Under no circumstances chequebook should be given to the customer if the

account formalities are incomplete.

 Cheques, which are drawn on Bank Meezan 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.

 Audit should be held internally, rather there should be an audit department in the
branch to make audit on daily basis. This can become so, helpful as a different
banks are having this department of their own.

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 OBSERVATION & CONCLUSION

I observed the bank Meezan a financially sound bank. Its profits are increasingly year by
year. Its staff is very good and sincere with the bank

Bank Meezan views specialization and service excellence as the cornerstone of its
strategy. The people at bank realize that innovation; creativity, reliability, customized,
services and their execution are they key ingredients for their future growth.

They are aware that they have stepped into the 21st century and they must meet its
challenges by acquiring the highest level of the technology. They will thus be
accelerating their technological advance to enable them to distribute their products and
services through most efficient and high tech means. They say that they will continue to
invest in the modern tools and substantial allocation to resources will be made to achieve
this objective during the current year. The bank offers many free services to customers
which is the main reason of customer satisfaction. Overall my experience was good, I
have learnt so many things practically. Thanks to all the staff for their corporation.

**************!!!!!!!!!!!!***************

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 REFERENCES

Web Resources:

 MEEZAN BANK LIMITED (www.meezanbank.com)

 Wikipedia (www.wikipedia.com)
 State Bank of Pakistan (www.sbp.org.pk)

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