Professional Documents
Culture Documents
BY
Mubasher Nazir
BBA HONS (Finance)
ROLL NO: 8768
SESSION 2005-2010
Approval Sheet
Approval Committee
1. External Examiner
Mr. _____________________________________________
Signature_______________
2. Supervisor
Mr. ____________________________________________
Signature_______________
3. Head of Department
Mr. ___________________________________________
Signature ________________
My dearest Parents and My Respected Teachers who motivate and encourage me in every aspect
of my life and a few Special Friends who have been supporting and cooperating with me to
accomplish this task.
Modern banking system was introduced into the Muslim countries at a time when they were
politically and economically at low ebb, in the late 19th century. With the passage of time,
however, and other socio-economic forces demanding more involvement in national economic
and financial activities, avoiding the interaction with the banks became impossible. As countries
became independent, the need to engage in banking activities became unavoidable and urgent.
Governments, businesses and individuals began to transact business with the banks, with or
without liking it. This state of affairs drew the attention and concern of Muslim intellectuals. The
story of interest-free or Islamic banking begins here. The history of interest-free banking can be
divided into two parts. First, when it still remained an idea; second, when it became a reality.
The literature of the period begins with evaluations and ends with attempts at finding ways and
means of correcting and overcoming the problems encountered by the existing banks. During the
last few decades interest-free banking attracted more attention, partly because of the political
interest it created in Pakistan and partly because of the emergence of young Muslim economists.
Meezan bank is the first Islamic bank and is therefore recognized as one of the pioneer banks
that promotes Riba-free (interest free) banking activities all over the country. The bank has
developed an extraordinary research and development capability by combining investment
bankers, commercial bankers, Shariah scholars and legal experts to develop innovative, viable,
and competitive value propositions that not only meet the requirements of today’s complex
financial world, but do so with the world-class service excellence which our customers demand,
all within the bounds of Shariah.
Acknowledgments i
Preface ii
Executive Summary iii
CHAPTER 1
Introduction to Report
CHAPTER 2
Introduction to Banking 03
2.1 Evolution Of Banking 04
2.2 Fairly Growrh 04
2.3 (1628- 1786 BC ) 04
2.4 687 BC 04
2.5 Modern Banking 04
2.6 Type Of Banking 05
2.7 Development Of Banking In America 07
2.8 National Bank Act 07
2.9 Banking Act 1935 07
2.10 Banking in Pakistan 07
CHAPTER 4
History Of Meezan Bank ` 15
4.1 1997-2009 15
4.2 Meezan Bank Vision And Missions 16
4.3 Corporate Values 16
4.4 Background Review 19
CHAPTER 5
Comprehensive Business Solution 22
5.1 Corporate And Commercial Banking 22
5.2 Largest Branch Network 23
5.3 Financial Banking 24
5.4 Service Quality 25
5.5 Quaid’s Concept Of Islamic Banking 25
5.6 Riba Free Banking Objective 25
CHAPTER 7
What I Have Learn As A Internee 32
8.1 Account Opening 35
8.2 Issuance Of Cheque Book 26
8.3 Certificate Of Islamic Investment 39
8.4 Invest In Certificate Of Islamic Investment 39
8.5 Call Deposit Receipt 40
8.6 Cheques For Collection 42
8.7 7th And 8th Weeks At Meezan Bank 43
CHAPTER 9
Financial Analysis 46
9.1 Common Size Analysis 46
9.2 Ratio Analysis 53
CHAPTER 10
Swot Analysis 58
10.1 Strengths 58
10.2 Weaknesses 58
10.3 Opportunities 59
10.4 Threats 59
CHAPTER 11
Recommendation 66
12.1 Performance Appraisal 66
12.2 Proper Job Rotation 66
12.3 Fair Benefits 66
12.4 Overload Of Work 67
12.5 Credibility Of Customers 67
12.6 Customer Relationship 67
12.7 Empowerment Of Employees 68
12.8 Marketing Culture 68
12.9 Health Activities 68
References 70
Bibliography 71
Appndex 75
Allah is very Kind, Merciful and Compassionate. His benevolence and blessings have enabled
me to accomplish this task.
I highly appreciate Mr. ALAM ZEB KHAN, Area Manager and RAFIQUE AWAN, Operation
I pay special gratitude to all my honorable teachers who have been teaching me various courses
during the last five years at CIIT, with addict zeal and zest.
I wish to express my heartiest and sincere appreciation to my friends for their continuous help,
cooperation, and moral support.
The last but not least, I would feel incomplete without thanking to my parents who pray for my
brilliant success and bright future.
Mubasher Nazir
As per the requirement for the degree of BBA (Hon’s) of Hazara University Mansehra, I took
up the internship at Meezan Bank, Abbottabad Branch. This report is based on the experience
and knowledge which I got from my internship at Meezan Bank. In the first chapter I have
discussed about my time stay in the bank and introduction to the whole report. In second chapter
I have discussed about the introduction of the bank. Basic function of Meezan Bank. The story
begins with the incorporation of Meezan Commercial Bank limited in Pakistan on October 09,
1991, Meezan Bank Commenced (begin) to operations in April 1992, as a public limited
company.
The bank is listed on the Karachi, Lahore and Islamabad Stock Exchanges and the initial public
offering was over subscribed by 16 times. I have also mentioned the products which the bank is
offering to its customers and then I have given a brief overview of different policies of the bank.
In third chapter I have discussed about the concept of Islamic banking according to our religion.
this chapter begins with the Islamic finance and the economic growth of Islamic bankig.further I
have discussed the goals of Islamic banking., and Islamic theory have also discussed
Musharakah / Mudarabah and its uses .In forth chapter there is the history of Meezan bank, its
origin and basics, vision and mission statement, the corporate values and the organizational
structure.
In 5th and 6th chapter the business of meezan bank is discussed the products and services of the
meezan bank are discussed in this chapter. this chapter also tells us about the branch network of
Meezan bank. further I have discussed the meezan team. the 7th chapter is the detail of my whole
performance. In the 8th chapter I have discussed about financial analysis. I do the common size
analysis of the and company for this purpose I take the data of last five years. Then I do the ratio
analysis and in last I analyze the net income, EAT, deposits, EBIT, loans and advances of the
bank during last five years. In 9th chapter I have given the swot analysis of Mezan Bank. Swot
analysis is done keeping in the view what I have seen and felt in the branch during my intership.
In the 10th chapter I have give the conclusions of my internship that the Meezan bank is now
In 11th chapter I have give some personal recommend ions as how bank can improve its
performance and then I have write the conclusion about my internship as well as report. And in
last I mentioned some important references and web sights from where I get the help during
preparation of my reportrnship.
Meezan Bank Ltd has grown to become the largest Islamic bank in the country. The bank
claims to be the Pakistan premier Islamic bank determined to set higher standards of
achievements . The bank comes in to existence by the order promulgated by governor general
and standard functioning from Nov 20, 1997
Meezan Bank is the major business partner our government of Pakistan with special emphasis on
fostering Pakistan economic growth through aggressive and balanced lending polices,
technologically oriented products and services offered through its large network of 203
branches .
1.2) Purpose of study :
The purpose of study is to get more knowledge about the structure and function of the
department of MBL has clear picture of its financial health in particular . For this purpose a
through financial analysis through common sizing and ratio analysis of the bank, is carried out to
is to judge the actual financial standing of the bank .
Solid recommendations are given on all aspects to further improve the functioning of the bank .
CHAPTER 2
INTRODUCTION TO BANKING
WHAT IS BANK?
Before going to start we must know that what is bank? Like many other subjects and social
sciences no any precise definition can be given for the study of banking also. Different authors
have defined and described this subject, keeping in view the particular functions of banking.
Mr. Paget says “No one and no body corporate can be a banker who does not open:
1 Current Account
2 Pays cheques drawn upon him
3 Collects cheques for the customers
Mr. Kinly says “Bank is an institution which receives deposits and advances loans”.
The definition laid down in the Banking Companies Act 1962 is “Bankers means a person,
transacting the business of accepting for the purpose of lending or investment, of deposits of
money from public, repayable on demand or otherwise and withdrawals by cheques, drafts or
orders or otherwise and includes any Post Office Saving Bank.”
In view of the above definitions, in simple words a bank can be defined as an institution dealing
in money, accepting deposits and advancing loans.
Definition
There are different opinions about the origin of the word “Bank”. According to some authors the
Origin:
The opponents of this opinion argue that if it was so, then how is it that the Italian
moneychangers were never called Bunchier in the middle ages. Other authorities hold the
opinion that Bank is derived from German word back which mean joint stock fund. Later on,
when the German occupied major part of Italy, the Back was italicized into Bank.
1.Commercial Banks:
2. Merchant banks :
Merchant banks are those which have been mainly financing the domestic and international
trade in united king Dom . During the late 18th and 19th century the trade between countries
was financed by bills of exchange by well reputed merchant houses for which they would
charge a commission for their service .
3.Saving Banks :
The basic purpose of these banks is to inculcate the habit of savings in the people . The
saving bank deposits are not repayable upon the written orders of the depositor but the
depositor or his agent has to appear personally at saving bank to make withdrawal , and for
this purpose he must present a pass book, a certificate of deposit or some similar documents
to prove his right to receive payment.
4. Mortgage Banks :
These banks mainly deal in loans for the acquisition or construction of real estate against the
security of mortgages . Saving and loans associations and farm _loan associations are some
of the well known forms of the mortgage banks .
5. Consumer Banks :
These banks provides finance for purchasing consumption goods for the use of the borrowers
. sales finance and credit unions are some of the popular forms of consumer banks
6. Investment Banks :
7. Development Banks :
The banks have been established to provide long-term development finance to the trade,
commerce, and industry.
8. Cooperative Banks :
These are the banks established and registered as a cooperative venture to provide banking
facilities to the members of the cooperative .
9. Eximp Banks :
These are the banks which provide finance for promotion of import and exports to trade,
commerce and industry .The bank are contributing greatly toward the expansion of
international trade .
10. Central Banks :
Central banks occupy unique position in the banking structure of a country , because they
have been entrusted with the responsibility of controlling the money supply, interest rates and
financial market of the country for the purpose of economic development .
Distribution Of Wealth
The distribution of wealth is one of most important and controversial subject concerning the
economic life of man which has given birth to global revolution in today’s world and affected
every sphere of human activity from international policies down to the private life of the
individual .
1 Capital :
2 Labor :
3 Land :
Defined as “natural resources” those thing which are being used as means of
production without having previously undergone my process of human production .
4 Entrepreneur Or Organization:
The fourth factor that brings together the other three factors, exploits them and bears
risk of profit and loss in production .
From Islamic point of view there are two kinds of people who have right to wealth .
1 Private Business
The man who invest capital may himself run the business without the help of any partners or
shareholders. In this case the return which he gets may be called profit from the legal or
popular point of view, but in economic terms, this reward would be made up of .
2 Profit in as much as capital has been invested .
3 Wages, as earning of management .
4 Partnership;
The second form of investment is that several persons may jointly invest capital, jointly
manage the business and jointly bear the risk of profit and loss. In the terminology of the
Fiqh, such a venture is called Shirkat-Aqd or Partnership in contract .
2 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 .
3 This definition of Riba is derived from Quran and is unanimously accepted by all Islamic
scholars
.
4 TYPES OF RIBA
There are two types of Riba .
1. Riba An Nasiyah
2 .Riba Al Fadl
Riba An Nasiyah :
Defined as excess, which result from predetermined interest which a lender receives
over and above the principle (Ras ul Maal).
1 Riba Al Fadl :
Defined as excess compensation without any consideration resulting from a sale of goods .
Riba Al Fadl will be covered in greater detail later .
2 Tijarti Sood :
Interest paid on loan taken for productive &profitable purposes .
3 Sarfi Sood :
Interest paid on loan taken for personal need and expenses .
Islamic banking:
Ijarah ( Leasing
Ijara as “an agreement whereby a person agrees to transfer the usufruct of a property to
another person for a mutually agreed rent, terms, and conditions while the ownership of the
corpus of the leased property remain vested in lesser .
Mudarabah Financing :
Mudarabah is a business in which a person participates with his money while the other
with his skill or efforts or both his skill and efforts . NIT Units and Mutual Funds are the
best example of Modaraba in Pakistan .
Types Of Mudarabah :
1 Al Mudarabah Al Muqayyadah
2 Al Mudarabah Al Mutlaqah
1. Al Mudarabah Al Muqayyadah :
Particular business or particular place for the the mudarib, in which case he shall
invest the money in the particular business or place . This is called Al Mudarabah Al
2. Al Mudarrabah Al Mutlaqah :
Rab-ul-maal gives full freedom to mudarib undertake whatever business he deems, fit
this is called Al Mudarabah Al Mutlaqah .
1997
Al Meezan Investment Bank is established with a mandate to pursue Islamic Banking . Mr. Irfan
Siddiqui appointed as first and founding Chief Executive Officer .
1999 :
The Shariat Appellate Bench of supreme court of Pakistan reject the appeal and direct all laws on
interest banking to cease but the Government set in a high level commission, task and
committees to institute and promotes Islamic banking .
2001 :
Muhammad Taqi Usmani as a chairmen established the shariah supervisory Board at Al Meezan
Investment Bank . State Bank of Pakistan set a criteria of Islamic commercial bank in private
sector and subsidiaries and stand alone branches by existing commercial banks to conduct
Islamic banking in the country .
2002 :
Al Meezan convert itself in to a full fledge Islamic commercial bank . The first Islamic banking
license is issued to the bank and is renamed Meezan Bank . President general Pervaz Musharraf
2003-----2009 :
2 Meezan Bank established itself a pioneer of Islamic Banking in Pakistan and
wide range of products are developed .
3 The state Bank establishes a dedicated Islamic banking development by
merging the Islamic economic division .
4 Meezan bank becomes the first customer of Islamic issuance by signing the
first memorandum of understanding MOU with pak Kuwait Takafal
company ltd .
5 Meezan banks becomes the first Islamic bank to introduce 8am to 8pm
banking at selected branches in Karachi
6 Meezan banks open up its 100th branch
7 With 166 branches in 40 cities across Pakistan. Works start on the
construction of Meezan Banks new Head Office building
.
4.2) Meezan Bank Vision and Missions:
1 Vision:
Established Islamic banking as banking of first choice to facilitate implementation of an
equitable economic system, providing a strong foundation for establishing a fair and just
society for mankind .
2 Mission statement :
To be a premier Islamic bank offering a one-stop shop for innovative value-added product
and services to our customers within the bounds of Shariah, while optimizing the stake
holder’s value through an organizational culture based on learning, fairness, respect for
individual enterprises and performances .
3 Core Values :
Shariah Compliance, Integrity, Professionalism, Service Excellence, Social Responsibility .
4 Brand Personality :
A sober and established, strong, empathic, professional person; who is an extremely loyal
and dependable friend and business partner, and is committed to offering comprehensive
value-based Shariah compliant financial solutions .
5 Staff :
Committed, motivated and professionally trained employees who are empathic to their
customer ‘s needs .
Relationships : Are long tem with Meezan Bank . we recognize and our customer’s needs
and strive to ensure their fulfillment . All customers are treated professionally and in a
friendly
manner .
It is our endeavor to ensure that they receive efficient and timely service .
The Meezan Bank experience is a unique one .
Are long tem with Meezan Bank . we recognize and our customer’s needs and strive to
ensure their fulfillment . All customers are treated professionally and in a friendly
manner .
It is our endeavor to ensure that they receive efficient and timely se. The Meezan Bank
experience is a unique one .
AL Meezan Bank started its commercial operations in sept in 1997 and got its scheduled
commercial status in May 2002 Meezan Bank Limited .The soundness of the Bank , which is
normally measured by reference to the Tier 1 capital Adequacy Ratio, is above 80%. The
internationally acceptable standard, which is also the minimum requirement of the state Bank
of Pakistan, is 8%. MBL capital adequacy ratio placed the bank at the top of the industry .
Meezan Bank Limited is the first schedule Islamic bank in Pakistan, which has been
licensed by the state Bank of Pakistan to operate as an Islamic Commercial bank .The bank
pirates strictly under the principles of Islamic Shariah . our in dependable Shariah
Supervisory board, comprising of internationally renowned Islamic scholars, regularly
reviews the bank’s activities .
Retail Banking :
Rupee Saving Account certificate of Islamic Investment
Current Account Monthly Mudarabah Certificate
Dollar Saving Account Dollar Mudarabah certificate
Karobari Munafa Account Meezan Amdan Certificate
Meezan Islamic Institution Deposit Account Meezan Providence Certificate
Consumer Financing :
Car Ijarah-Islamic Auto Finance
Easy Home – Islamic Housing Finance
“We must work our sestiny in our own way and present to the world an economic system based
on true Islamic concept of equality of manhood and social justice”.
MEEZAN TEAM
The business segments of the banks are :
Corporate Banking
Investment Banking
Corporate Banking :
Corporate Banking plays an important role in the growth of the bank’s financing
activities and profitability. During the year Meezan Bank maintained a cautions approach in
booking new assets and focused on reducing large exposures to a single obligor so as to mitigate
concentration of risk .
Corporate Banking successfully introduced a new product called Tijarah this product is
designed to allow customers to raise funds for financing of stocks of finished goods .Istisna
which is introduced in 2008 was very successfully and extensively deployed across the Meezan
bank network .
Investment Banking :
The investment banking department was set-up in 2006 and focuses primarily on the
following activities :
1Syndicated & Structured finance
2Project Finance
3Corporate & Financial Advisory Services
Investment banking has developed unique Shariah structuring capability in a very short period of
time and is actively involved in innovative product development initiatives required to meet the
long term project finance needs of customers .
Commercial Banking :
Commercial Banking target the middle market . This market represent the back-bone of
Pakistan ‘s economy and has high growth potential. Since the inception of this department in
2005, Meezan Bank has maintained a cautious and well balanced approach in booking
commercial Banking assets as a result of which portfolio assets quality has been very good –
Consumer Finance :
Consumer Finance is responsible for managing the retail assets products of auto finance----Car
Ijarah and house mortgage ---- Easy Home . With pioneering and prime- mover initiatives in
both products, the department has now established itself on sound business infrastructures,
penetrated key market segments, and built recognizable brand identities in not only the Islamic
but the overall banking sector .
Car Ijarah application is usually processed within two days, while the document intensive and
complex process of Easy Home – home mortgage based on the concept of Diminishing
Musharakah is available in a record setting average of 15 days .
Auto Finance :
The auto finance business has a 7 years track record and its portfolio now stands at Rs.4,356
million comprised of over 9000 active vehicle contracts. Growth has been steady during this
period, within depressed and uncertain economic conditions
.
Housing finance :
The nation’s first Islamic Housing Finance facility .Meezan Bank’s Easy Home completed its
5th year in December 2009 and consolidated its market position by undertaking rs. 1.5 billion
new disbursement during the year.
Operating Results
Despite the gloomy economic outlook, Meezan continued with its branch expansion
strategy, By the Grace of Allah, the Bank now has 166 branches located in 40 cities in Pakistan,
an addition of 66 branches including 35 sub branches during 2009, This significant achievement
of establishing an extensive network within a short span of 7 years enabled Meezan Bank to
maintain its leading position an among the Islamic Banks operating in Pakistan. As a result the
CHAPTER 7
It was very good experience of internship at Meezan Bank . I was introduced to different aspect
of money , banking and finance and found this field very interesting .This report comprises my
• 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
• Then he told about important element Basic Mode of Financing in which Mudaraba and
Musharaka lies.
• I learnt about characteristics and procedure of Mudaraba and Musharaka.
• Then I moved to Accounts Department for learning something new.
• I learnt about IBTDR (Islamic Bank Term Deposit Receipts) and knew what its meaning
and functions.
• Basically IBTDR involves Accounts:
• Saving Deposit accounts
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
Partnership
Limited company
Trusts
Clubs
Association etc.
• Resolution of Board of Directors for opening of a/c specifying the person(s) authorized to
operate the company 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.
• 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.
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.
• I learnt about the role of STATE BANK OF PAKISTAN in Pakistan’s economy from the
lecture and know about the prudential regulations briefly not explanatory which are
Regulation M-1 Know Your Customer (KYC)
Regulation M-2 Anti-Money Laundering Measures
Regulation M-3 Record Retention
Regulation M-4 Correspondent Banking
Regulation M-5 Suspicious Transactions
• In account opening department I learnt the use of ATM card and learnt how to fill ATM
form.
• 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.
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.
• 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.
• I revised all practices according to account opening departments and cleared my all
confusion related to that department trough got work in that field.
• After that I went to ACCOUNTS DEPARTMENT and started my work. First of all I
cleared my all confusions about the previous topics then I started to learn further.
• I learnt about FTT (Foreign Telegraphy Transfer) also known as SWIFT Message.
• In it I knew that how can get and send money from and to foreign countries.
• He told us its procedure and function. I knew about how the message can create and
what sources are used for it.
• Then I learnt about SMS ALERTS. He told us its function and I knew about that
what information is required for its activation and what information it gives to
customer through SMS.
• I learnt what are the Local Posting and Online Transferring and how it is done.
• Then I learnt what Stop Payment is and how it is performing and what its terms and
conditions.
• I knew about what Account Closing is and what its procedures to close it and what
charges are required for it.
• Then I saw the module of daily Accounts and Expense Entries posting. And knew
about the reason of entering it.
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.
• Then I learnt about cross cheque and cross cheque has two types:
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.
0
1 2 3 4
20
10
0
1 2 3 4
Profitability ratio
0.02
0.01
0
1 2 3 4
Investment Ratio
0
1 2 3 4
In 2008the per share earning is good but it decreases in 2009 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
25
20 20
15 16
10 10 8.6
5
0
1 2 3 4
Average Ratio
2
1.67 1.57 1.7
1.5
1
0.82
0.5
0
1 2 3 4
20 18.39
15 16.7 15.64
10 10.3
5
0
1 2 3 4
SWOT ANALYSIS
9.1 Strengths
• First exclusive Islamic bank.
• The largest Islamic Bank in Pakistan with a network of over 204 branches in 54 cities.
And ending this year they have increase his branches in Pakistan to 280 branches.
• Strong growth of its Islamic banking SBU.
• The members of the Shariah Supervisory Board of Meezan Bank are Internationally-
renowned scholars, serving on the boards of many Islamic banks operating in different
countries.
• Karachi, August 20, 2008: Meezan Bank, the largest Islamic Bank in Pakistan has been
conferred the Best Islamic Bank Award by Rawalpindi Chamber of Commerce and
Industry.
• The Chief Minister of Punjab Mr. Shahbaz Sharif bestowed this award to Mr. Saleem
Khan Regional Manger - North, Meezan Bank at 21st RCCI achievement awards
ceremony held at the Convention Center in Islamabad.
• Dedicated and professional staff
• Shariah board of renowned scholars
9.2 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 their
businesses, how difficult it is to introduce a profit-and-loss sharing based financial
solution.
• 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.
9.4 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.
• Disassociation of Maulana Taqi Usmani from the Shariah advisory board of Meezan
Bank.
• Govt. policies are mostly for conventional banking system not for specially designed for
Islamic banking.
• Fears on the credibility of Islamic banking ethical compliance and monitoring systems.
CONCLUSIONS
One of the most important aims of the student life is to express him / her correctly and
adequately. This was believed in my mind when I first decided to go to Islamic Meezan Bank
Limited to complete my internship program.
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
2008 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.
RECOMMENDATIONS
On the basis of my experience with bank during the course of internship, I recommend following
suggestions:
In the case of performance appraisal, management should evaluate the performance of the
employees on merit and recommend their increments and promotions only on the basis of real
performance. Employees should be treated unbiased and appraisal should be performance based
not favoritism and likeness based. This not only appreciates the employee but also improves his
work and satisfaction, his practice will surely encourage and motivate the employees for
improving their individual performances, which will lead towards overall improve in the
situation.
Employees should be rotated after certain periods in order to enhance their capabilities and make
them able to compete in the changing environment of the market. In this way, they will feel
interested during working in different departments. The best way to improve employee’s
performance is to revolve them within organization often a specified period of time. They will
not only have leaning and training opportunities butt also they feel attractiveness in doing new
job and his performance improves.
Although most of the employees are unsatisfied but even then turnover rate is low. This is due to
the reason that some of them are on contractual bases so that they cannot avail market offered
opportunities. On the other side they may not be getting better opportunities. Although the return
is low for them yet it is reasonable, that’s why they are still hero. They should be awarded with
more benefits to improve their performance and overall productivity, as satisfaction of internal
customers leads towards satisfaction of external employees.
The problem, which I have noticed faced by the employees in absence of an employee, can be
removed by hiring two employees in each department. In absence of any of the employee other
will be able to do whole work and employee from other department have not to interfere in this
department This will decrease over load of work.
Problem of shortage of employees can also be removed by adopting the above- mentioned
recommendation.
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.
Knowing the customers and their needs is the key to business success. By attitude the manager
can improve the relationship with the customers. By having the understanding, what a customer
wants, the manager can improve the relationship with the customers.
Commitment is a function of empowerment down the line, therefore, the future of Meezan Bank
lies in the fact that they should remain committed and necessary empowerment should flow
regularly to lower levels of hierarchy, so that the performance delivery is made more flexible.
With the empowerment of lower level employees they will feel secure in the organization and
they will work with devotion for the betterment of the organization.
The employees should be given special training for marketing. Proper action should be taken for
marketing so that the increased sale of different products will result in increase of the profit of
the bank. The employees of the bank should be trained with the basic concepts of the marketing
under the guidance of the experts.
There is lack of healthy and entertainment activities like excursions on weekend, parties and
other important days, celebration in their tidy life. Such activities should be encouraged at once
in a month.
FINDINGS:-