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Submitted To Mr. Faisal Aziz
First of all, we are thankful to ALLAH, Who has given us the ability to show our skills. We are thankful to the management and the staff of “MEEZAN BANK Ltd”, who provided us valuable information during our internship and given us chance to take a step towards the practical life. More over, we are thankful to Sir Shujjat Saleem (Course Instructor) who provided us an opportunity to excel our skills. Special Thanks to Mr. Junaid Ahmed (Branch Manager) Mr. Imran Mirza Rizki (Operation Manager) for their unconditional support and help in making us learn in a good environment, who also provided us valuable information regarding our first fieldwork of management.
THANK YOU ALL
introduction of the Meezan Bank, Basic Functions of Meezan Bank and objectives of Meezan Bank Ltd. Then I introduced Meezan Bank (Garden West Branch). I have also mentioned the products, packages, which the Meezan Bank Ltd. offers to its customers and then I have given a brief overview of different accounts opened and Investment Certificates issued by Meezan Bank Ltd. And in the last I have shown the Balance Sheet and Income Statement of Meezan Bank Ltd.
Meezan Bank is publicly listed company, first incorporated on January 27, 1997. It started operations as an Islamic investment bank in August of the same year, which has been licensed by the “State Bank of Pakistan” to operate as an Islamic Commercial bank on 31st January 2002. State Bank of Pakistan granted the Nations first full-fleged commercial banking license of Islamic Banking to Meezan bank Ltd. It was a new era in banking Sector history in Pakistan that Meezan Bank Ltd adheres strictly to the principles of Islamic Shariah with absolutely no compromise, and is recognized as Pakistan’s truly premier Islamic Bank. Meezan Bank is operating approximately more than 166 branches in 40 different cities. In addition, the “State Bank of Pakistan” itself governs the activities of Meezan Bank and its Shareholders. Meezan bank Ltd has a strong Balance sheet with excellent operating profitability, including a capital adequacy ratio that has placed the Bank at the top of industry, a long-term entity rating of A+, and a short-term entity rating of A1+.
Planning and managing the work efficiency is the key factor of the Meezan Bank’s Managers. The
Vision of Meezan bank is “Establish Islamic Banking As banking of First Choice”. And our Mission is “To Be A Premier Islamic Bank”.
Meezan Bank has a very high-caliber of “Shariah
Supervisory Board” Shariah monitors
internationally activities Usmani, bank. and who The
renowned Islamic Scholars. The “Shariah Supervisory regularly advisor. reviews Dr. bank’s Imran of approves all new products. The bank also has a resident Muhammad transactions day-to-day the
Shariah Board comprises of the following members: • Justice (Retd.) Muhammad Taqi Usmani
(Pakistan)-Chairman. • Dr. Abdul Sattar Abu Ghuddah (Saudi
Sheikh Essam M. Ishaq (Bahrain). Dr. Muhammad Imran Ashraf Usmani
Share Holders in Meezan Bank
• • • •
Pakistan Kuwait Investment Company (Pvt) Ltd. Shamil Bank of Bahrain E.C. Islamic Development Bank. KUWAIT Awqaf Public Foundation.
Saudi-Pak Industrial & Agriculture Investment Company (Pvt) Ltd.
Our Head Office:
Our Head Office is located at, 3rd Floor PNSC Building, Moulvi Tameezuddin Khan Road Karachi, Sindh, Pakistan. Tel: (92-21) 5610582/5610679. Fax: (92-21) 5610375. www.meezanbank.com
24/7 Call Center 111-331-331.
Introduction to Meezan Bank Ltd
(Garden West Branch Karachi) know that Meezan Bank As we all is operating
approximately more than 166 branches in 40 different cities. So, inspite of that a new branch of Meezan Bank Ltd is opened area) at on Garden 12th of West (a beautiful 2008, and commercial November having
address: Plot#130/1, Amin Center, Garden West, Karachi. Garden West area has a largest oil distributors market in Karachi, and auto parts distributors. Its residential area
is beautiful and well organized. The residents are well educated and belong to different categories, some of them belong to noble families, some belongs to poor family, but the Meezan Bank Ltd is trying its level best to fulfill their banking needs according to Islamic banking.
To be a premier Islamic Bank. To fulfill the banking requirements of the
customer according to the Islam.
Bank policies & requirements regarding different types of accounts. Assist first time customer in opening bank
accounts. To promote the highest level of customer
services and responsiveness to customer base of the branch. Intelligently access the needs and problems of
the existing customer and guide them in the best solution of their queries and concern as per bank policies. To operate the accounts of such customers who earns HALAL & Riba-free income. To represents the bank in professional manner. To facilitate the Customer to avail our services happily and easily. Assure customer of a truly Halal absolutely Ribafree investment.
(MEEZAN BANK LTD GARDEN WEST BRANCH KARACHI)
1. Junaid Ahmed 2. Imran Mirza Rizki Manager 3. Bakhtiyar Ullah Incharge 4. Bilal Mehmood Officer 1 5. Muhammad Ehsan-Ul-Haleem Officer 6. Irfan Mehar Hussain 7. Aneel Kumar 8. Arsalan Arif Siddiqui Officer 9. Humera Siddiqui Controller
De si gna ti on
Branch Manager Operation
Cash Officer/Teller Team Leader Assistant Operation
10.Mohsin Ahmed Development Officer
13. Erum Ansari
As we already introduced Meezan bank Ltd (Garden West Branch Karachi). So, this Branch is comprises of a Branch Manager, who reports to the Area Manager about the work & performance of the branch employees. A separate area has been set aside for operations which are monitor by an Operation Manager, who reports to Branch Manager about daily cash transactions, clearance, remittances & accounts opening. There are also PBO (Personal Banking Officer) and BDOs (Business Development Officers), who
are directly related to Branch Manager and reports him about customer relationship & services provided to them, and about deposits targets of concerned bank.
Branch Manager Operation Manager
Chief Cash Officer
Cash Deposit Officer
Accounts opening Officer
Personal Banking Officer
Accounts Offered by Meezan Bank Ltd on e Mudarabah basis.
Clearing Mudarabah: Officer
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-Mal” (Investor).
The management and work is an exclusive responsibility of the other, who is called “Mudarib” (Working Partner). Profit is shared as per agreed ratio. In case of Mudarbah all losses are borne by Rab-ul-Mal.
The Structure is based on the principle of
Mudarabah and is strictly in conformity with the rules of Islamic Shariah. It has been approved by the Shariah Supervisory Board of Meezan Bank. On agreeing to become an account holder, the customer enters into a relationship based on
Mudarabah with Meezan Bank. Under this relationship:
funds deposited by the customers. The Customer is an Investor (Rab-ul-Mal),
and •The bank allocates the funds received from the customers to a deposit pool. These funds to but from the pool are utilized Islamic to, to provide that and
financing include, Ijarah.
customers are not
Profit Distribution Structure:
Murabah Ijarah Diminishing Musharakah
The Gross Income will be shared between the bank (as Mudarib) and Depositors (Rab-ul-Mal) in a predetermined ratio (%) of the actual profit earned.
Meezan Accounts under:
1. Current Accounts. Currents Accounts are the business accounts offered to all types of business owners. The bank doesn’t earn any type of profit from these accounts but these are opened only due to the facilitation of the customers. Current accounts can be opened jointly, singly, company etc. Free online services from all branches. No restrictions on number of transactions of withdrawals. 2 . Saving Accounts. Saving accounts are opened due to the saving of money. The bank also provides profit to the customers. That profit is calculated & paid on monthly basis. If during the month average deposits falls below 1000/-, then no profit no Loss. 3. KMA (Karobari Munafa Accounts.)
specially business card,
those earn 1
million each month. So, the bank facilitates them with cheques and book, free free ATM free The Telephone minimum Banking Internet Banking.
investment for this account is 1 million. And the bank provides them profit at different rates.
4. MBA (Meezan Bachat Accounts). This can account it required easily. In minimum these investment bank of also 25000. This account is opened for all customers, who operate accounts provides profits to the customers. These accounts also provide facility of withdraw of cash any time. 5 . US DOLLAR SAVING ACCOUNTS. These accounts are opened for those customers who are residents of Pakistan but earning outside of the country anywhere so he deposits his amount in dollar or other currency and our bank provides him more profit as compared to the local investors & on monthly basis. $500. The minimum investment for this account is
monthly basis. The rates declared every month before your maturity or profit period shall be applicable on your investment. These all current and saving accounts can be opened in any category of the following types of accounts.
• Individual Accounts • Joint Accounts • Minor Account • Sole Proprietorship Accounts • Illiterate Customer Account • Partnership Accounts • Limited Liability Companies Accounts • Associations, Committee, Societies or Club Accounts etc. • Non-Resident Rupees Account • Trust Accounts (with prior permission from the HO) • Executors, Administrators Accounts (with prior permission from the HO) • Local Bodies Accounts. • Special Convertible Rupees Account (SCRA) • Staff Accounts.
1. Individual Accounts. Accounts of Individuals, who are resident or non-resident, are to be opened under this category. 2. Joint Accounts. Joint Account is an account in the names of two or more persons (other than Partners or Trustees). In this regard it to be ensured that: • The “Survivorship Mandate” is signed by all the parties to the account and instructions for the operation of account are clearly stated and filled in the Mandate. • In case of death, cheques signed by DECEASED Account Holder presented for payment will not be entertained and therefore must be returned. • When the balance of Joint Account is repayable to either party or survivor, the Specimen Signature Card should be marked to effect the arrangement.
3. Minor Account A person who has not attained the age of 18
years is minor. However, incase Court has appointed a Guardian for the property of a Minor, and then the period of his / her maturity extends to the age of 21.
4. Sole Proprietorship Accounts. A formally stamped written request on the official Letter Head of the Business / Firm of the Sole Proprietor in order to open a Sole Proprietor Account must be submitted along with AOF (Accounts Opening Form). This request for opening of a Sole Proprietorship Account
should comprise the following clause: "I am a Sole Proprietor of the Firm and as such, I am entirely responsible for all transactions carried out in the name of the Firm and I am personally liable for any overdraft or other obligations arising in or in connection with this account and the Bank is hereby and / or authorized other to debit the account and with
incurred in connection with this account”. Additional care must be taken while opening of sole proprietor account. Beside other documents the customer should be ask to produce the original NTN (National Tax Number) certificate issued to his name in the capacity as sole proprietor of said firm.
5. Illiterate Customer Account. These types of accounts are opened only for those persons who are illiterate. This account is also known as “PHOTO ACCOUNT”,
that during opening this account we paste the current passport size photographs with AOF (Accounts Opening Form). Illiterate person could only open Saving Accounts. Furthermore, all withdrawals undertaken by illiterate Customers must be witnessed by two Bank officials and countersigned by Manager Operation.
6. Partnership Accounts. Partnership is an association of two or more persons who have agreed to share profits of a business carried on by all or by any one of them acting for all. The terms and conditions must be spelled out in the “Partnership Deed” formally agreed upon among Partners by incorporating the same in the Deed. It should be ensured that: • Accounts of only Registered Partnership concerns will be opened and the “Partnership Deed” will be obtained and critically reviewed. • The AOF must be signed by all the Partners in their capacity as individuals and not as member of the Partnership The signing and delegation of powers of those authorized to operate the account should be clearly stated on the AOF documentation in accordance with Partnership Deed. 7. Limited Liabilities Company Accounts. There are two types of Limited Companies i.e., Public Limited and Private Limited. The Public and Private Limited Companies are both incorporated and governed under the provisions of Companies Ordinance 1984.
A Limited Liability Company may open an account with the Bank only if it is authorized to do so by a resolution of the Board of Directors of the company. Furthermore, such resolution must specify the titles / designation of the officials authorized to open and operate the account, the extent of their authority and the manner in which the account will be operated.
8. Associations, Committee, Societies or Club Accounts etc. An Association, Committee, Society or Club may open an account with the Bank only if authorized to do so by the Governing Body of the said Association / Committee / Society or Club. Account of the Association, Committee, Society or Club should not be allowed to be overdrawn. No cheques drawn on the accounts of Association, Committee, Society or Club shall be collected for the credit of personal / private accounts of any of the Office-Bearers of Association, Committee, Society or Club.
9. Non-Residential Rupees Account. Accounts of Individuals, Firms or Companies who are resident in countries outside Pakistan and all nationals of Pakistan and persons domiciled in Pakistan, who visit abroad for the purpose of employment, study and business etc., are treated as Non-residents as long as they remain outside Pakistan. Accounts of all foreign nationals who are resident in Pakistan may be treated as Resident Accounts.
10. Trust Accounts. A Trust Account maybe opened exceptionally with the prior approval of Head of Operations. Trust account may only be open for parties whose integrity and standing is beyond any doubt. Before sending the to HO (Head Office) BM (Branch Manager) and MO (Manager Operation) will go through the “Trust Deed” to ensure that no undue onus is placed on the Bank.
11. Executors and Administrators Accounts. Executors and Administrators Accounts shall only be opened with the prior permission from the HO. Moreover, whenever application for the opening of Executors and Administrators account is received, the matter should be referred to the Regional Manager who will forward the full details of the matter to HO for guidance and permission to open such account. No Executor and Administrator will be allowed to transfer the fund from the account to their personal accounts. 12. Local Bodies Accounts. City Governments, Municipalities, District Boards, Development Bodies etc are included in Local bodies. Functions and powers of these Local Bodies are governed by the relevant Local Acts and Rules / Byelaws made in accordance with such Act. These Local Bodies are regarded as desirable Customers because they have substantial amount of funds at their disposal. However, operations on these accounts must be conducted strictly in accordance with the statutory rules and regulations.
13. Special Convertible Rupees Account (SCRA). As per the Foreign Exchange Manual Chapter 20, SCRA can be open by Nonresidents for the purpose to trade in the shares quoted on the Stock Exchanges in Pakistan. Such accounts can be fed by remittances from abroad or by transfer from a foreign currency account maintained by the non-resident investor in Pakistan. The balance available there in can be used for purchase of any share quoted on the Stock Exchange. Branches will be required to submit weekly statement in the prescribed Performa (V-92) of FE- Manual showing the position in respect of SCRA accounts as on each Saturday. 14. Staff Accounts. Staffs can open only one saving or current account singly or jointly with his / her spouse at the time of appointment in the respective branch of Meezan Bank Limited. The account will be opened for the purpose of salary disbursement (like salary, bonus, increments, allowance or any form of reimbursement from Meezan Bank Limited against services rendered by employee).
Documentation of Opening an Account.
1. Individual accounts: 1. 2. 3. Copy of CNIC. Any proof of Income (salary slip/ NTN). Any Utility Bill (for Address Verification).
2. Proprietorship Account: 1. Copy of CNIC. 2. Proof of proprietorship (NTN Certificate). 3. Account Opening Request & Proprietorship letter on Firms Letter Head. 4. Any Utility Bill (for Address Verification).
3. Minor Account:
1. Copy of CNIC of Guardian. 2. Copy of Birth Certificate.
3. CNIC copy of Guardian. 4. Partnership Accounts: 1. Registered Partnership Deed (Certified Copy). 2. Letter of Authority & Mandate. 3. Copies of CNICs of all partners. 4. Account opening Request Letter on firm’s Letter Head.
5. Limited Company: 1. Copy of Certificate of Incorporation. 2. List of Directors. 3. Memorandum & Articles of Association. 4. Board Resolution. 5. Certificate of Commencement of Business (for Public Ltd. Co.). 6. Copies of CNICs of all Directors/Signatories. 7. Latest copy of certified Form-29. 6. Club/ Society/ Association: 1. Copy of Rules/By-Laws. 2. Copy of Registration (if applicable) 3. List of executive Member/Management Committee/Management Board etc. 4. Certified Copy of Resolution. 5. CNICs of all Members of Management Body & Signatories. 6. Undertakings to immediate inform the bank in writing about any changes in Management Committee/ Authorized persons.
NOTE: These all documents are required original, bank itself get the photocopy of these documents. Housewives/Students/Retired Personal: Documents as requested by branch.
Investment Certificate issued by Meezan Bank Ltd.
To facilitate the customer through opening
accounts of different types, Meezan Bank also issues some could investment benefit certificates The through customer which could they easily
invest in different types of certificates of different investments and could get profit at attractive rates. These certificates are as under:
1. Certificate of Islamic Investment-COII.
investment of 50,000/=. These certificates are of three types one of them is for 3 months-5 years and the profit distribution of this type certificate is at the maturity of payment. 2
is for 1year-5 years
and profit distribution of this is quarterly and the 3
distribution is on monthly basis but its investment is minimum 200,000/= rupees.
2. Monthly Mudarabah Certificate-MMC. The flexible Monthly Mudarabah product, Certificate which has is the been
designed to give customers a monthly return, which is purely halal. These certificates require the
100,000/= rupees, and
the profit distribution is on monthly basis. As the investment increases. increases the distribution rate also
3. Meezan Aamdan Certificate-MAC. Meezan Aamdan Certificate (MAC) is the long
term investment with high monthly profit especially designed who are for in those need is of individuals regular and corporations of monthly income
(Mahana Aamdani) certificate with a variety of free packaged this benefits. is The 1, minimum investment These for are
issued for two different tenures i.e. for 51/2 and 7 years. The 7 year certificate has more attractive profit distribution as compared to 51/2.
4. Meezan Providence Certificate.
certificates registered or
Provident / Gratuity / Pension Fund, Which wants invest in such reputed Riba-free for and Islamic The of
to earn totally
different tenures; it starts from 2 years to 7 years. As the tenure grows the rate of profit also
5. Dollar Mudarabah Certificate. This Monthly Mudarabah Certificate is same as the above Monthly Mudarabah Certificate, but the difference is this certificate requires
investment in Dollars and that is $ 10,000/=. And the profit is distributed in Dollars.
Packages Bank Ltd.
only strive the
betterment pure banking
customers, Banking, to
according to Islam. Those attractive products are:
1. Meezan Labbaik Umrah. 2. Meezan Labbaik Ramadan Umrah. 3. Meezan Labbaik Hajj.
1. Meezan Labbaik Umrah: Meezan bank launches Umrah packages (a Holy Journey With Comfort & Convenience) for their
valuable customers at attractive rates. The Meezan Labbaik Umrah product is classified into three categories: I. Labbaik Travel Aasaan – Pay today and Perform
II. Labbaik Travel Aasaan (Installment Option)- Perform Umrah now and pay later
Umrah or Hajj.
I. Labbaik Travel Asaan: Pay today & perform Umrah or Hajj now after processing and documentation. As per Saudi Pak Bank and EGIB experience; approximately 50% of
our target customers will likely opt for Travel Aasaan as most of the pilgrims are not satisfied with the services of travel agents and prefer Bank as Banking is a trust business. Bank will act as a commission agent of the travel agent and will
announce the package as its partner. Bank will charge a lump sum fee and agent will provide the agreed
services; here Bank will make sure the services are provided as per commitment by using continuous monitoring & follow ups.
The package charges schedule is as under:
Description No. Of People Airfare + Package Total
Child (75% of Adult) Infant (10%of Adult)
2 1 1
55,700+40,000 41,775+30,000 5,570+4,000
1,91,400 71,775 9,570 2,72,745
II. Labbaik Travel Aasaan (Installment Plan):
Perform Umrah now and pay within 12 easy monthly
installments. MBL will collect 10% of package price as Down Payment and first installment. As per Financing Contract bank approves or disapprove the application, in case of approval bank sends Customer for Umrah after processing of Visa, documentations and other arrangement. Incase of Rejection, Bank will pay back the Deposited amount. Processing Charges at Actual: The Bank will conduct credit assessments like NADRA, ECIB, Data Check and Physical Verifications and Documentations and debit customer account with the actual direct expenses. These Charges will be applicable in case of approval or rejection both.
12Equal Monthly Installments
2 1 1
55,700+40,000 41,775+30,000 5,570+4,000
1,91,400 71,775 9,570
19,140 7,178 957
14,355 5,383 718
of Adult) Infant (10%of Adult)
The salient points of Labbaik Travel Aasaan (Installment Plan) are: Riba free 12 months financing. Package price for Upfront & Installment Plan would be the same. Success is based on the processing time. Account Opening Mandatory. Default is likely very low, pilgrimage being an Islamic duty.
III. Labbaik Saving Aasaan: Save today and plan for Umrah or Hajj. Select Monthly Deposit plan according to expected package price. Deposit Calculator will be available at branches & on Bank’s website. Customer will deposit fixed amount each month. Once the deposited amount reaches the package price the Customer can fulfill the desire to
perform Umrah/ Hajj. Pilgrimage to be performed on some future date (6 months to 20yrs).
Bank will give special profit to the Customer on Mudarabah basis. The saving account will be a non-checking
account i.e. no ATM or check book will be issued.
Withdrawal from the Scheme Option available any time, without any penalty imposed by closing his account. At maturity Customer will have the option to take his deposited amount with profit and utilize for any purpose he may deem fit. It will not be mandatory to utilize the amount for Meezan Bank Hajj or Umrah Scheme. The Customer may select packages by other tour operators.
Change of Plan Customer will have the option to switch from Labbaik Saving Aasaan to Labbaik Travel Aasaan or in case of Umrah to Labbaik Payment Aasaan any time without having any penalty subject to the fulfillment of eligibility criteria. In this scenario the customer will enjoy the benefits of the profits as per the Labbaik Saving Aasaan.
Package Features. These Umrah Packages are only for 15 days. Recommended for families and groups. Stay in KSA is 14 nights i.e. 4-Ngts. In Makkah, 7-Nghts. In Madinah & 3-Nights. In Makkah. Accommodation in A-Category Hotels in Makkah & Madinah. Roundtrip transfer in Air-Conditioned Buses (Jed-Mak-MedMeeqat-Mak-Jed). Complete Umrah Visa Processing. Meet & assist services through trained staff in KSA. Ziarat in Makkah & Madinah with Urdu speaking guide. Weekly group flights with confirmed returned air ticket. Double Umrah Facility. Tawaf Al-widaa. Arrangement of Zam Zam 10 liter can (subject to availability).
NOTE: Qurbani (NAHR) is not a part of the Package. Airfare is not included in the package price, which will be charged at actual; after announcement of rates from selected Airlines. Complete advance payment shall be made at the time of booking.
st Last date for booking is July 31 2009.
MBL is just facilitating the sales whereas travel arrangements are the responsibilities of the selected Travel agent.
Copy of Machine Readable Passport with at least 1 year validity. 12 Photographs 4x6 cm (light blue background). Copy of CNIC. Copy of deposit slip.
Consumer Banking Products
Offers By Meezan
bank Ltd. on Musharakah Basis.
Musharakah: Musharakah is the type of Partnership in which both the partners invest equally, and share their
profit & losses equally.
Difference B/w Musharakah & Mudarabah. Musharakah: In Musharakah both parties invest. Both parties work.
Mudarabah: In Mudarabah one party invest (Rab-ul- Mal) and other party work (Mudarib). Profit is shared as per agreed ratio. In case of Mudarabah all losses are borne by
Consumer Banking Products are: 1. 2. 3. Murabah. Car Ijarah. Easy Home.
which Bank is the owner of product and purchase that for the customer. Like other banks Meezan bank is not providing the loan to the customer, but if they need any type of product like
Machinery etc for his use. Bank has no expertise, so banks make the agent to that person, he will buy himself and then hand it over to the bank. Then bank will give him on cost plus profit. If
during buying any type of sudden accident occurs, the whole loss will be borne by the bank because the is owner of that material.
2. Car Ijarah. Car Ijarah Pakistan’s First Islamic Car Financing:
As a step towards our mission of providing a onestop shop for innovative value added Shariah
compliant products to Our customers Meezan Bank is pleased to offer ‘ Car Ijarah’a car of financing, and is that free is of based the on the of
Car Ijarah Car Ijarah is Pakistan’s first “Interest Free” car financing based on Islamic financing mode of Ijarah or Islamic leasing. This product is ideal for interest averse individuals, looking for a car financing that
provides the convenience of a well designed product while avoiding an interest based transaction.
Car Ijarah is simply a rental agreement under which the car will be given to the customer on rent for a period, agreed at the Bank purchases for of of a the time of the contract. Meezan car of and 3, rents 4 or he his it 5 out to the Upon gets
customer completion ownership deposit.
What makes Car Ijarah unique? Some of the key characteristics of Car Ijarah are as follows
Rights & liabilities of Owner v/s User
An Islamic Ijarah is an asset-based contract, i.e. the lesser should have ownership of the asset during the currency of the contract. Under Islamic Shariah, all ownership related rights and liabilities should lie with the owner should while lie does all with not usagethe related A rights and
conventional between the
natures of these liabilities and dumps all liabilities on the user, which is contradictory to Islamic Shariah. Under Ijarah, all ownership- related risks lie with the Bank while all usage related risks lie with the user, thus making the Lesser the true owner of the asset and making the income generated through the
contract permissible (Halal) for the Bank.
loss or theft of vehicle
continue charging the lease rent till the settlement of the Insurance/Takaful claim. Under the Islamic
system, rent is consideration for usage of the leased asset, and if the asset has been stolen or destroyed, the concept for rental becomes void. As such, in the above-mentioned eventualities, Meezan bank does not charge the lease rental.
insurance to insure its vehicles? MBL is insuring its Car Ijarah vehicles through Takaful Company, arrangement Pakistan’s with first Pak Kuwait provider. Takaful These
company has started operations in Karachi and Car Ijarah vehicles of Karachi are now being covered
through Takaful Ijarah
operations cities will of
arrangement will be available for cities where Takaful is not presently to be available insured since Leased the law. assets are
Meezan Bank’s Ijarah arrangement clearly states that Meezan Bank will use conventional Insurance only as long as Takaful on the is not to available, having and we are now
vehicles insured through Takaful.
Is there a Penalty for Late Payment of Rent and how is this permissible under Islamic Shariah?
monetary amount is charged if rent is not paid on time. This extra amount is the considered as Riba and is Haram. The leasing institution in their income
takes this amount. Under Ijarah, the Lessee may be asked to undertake that if he fails to pay rent on its due date, he will pay certain amount to a charity, which will be administered through the Islamic Bank. For this purpose the bank maintains a charity fund where such amounts may be credited and disbursed for charitable purposes.
Key Features of Car Ijarah No application fee Ease of acquiring any new l9ocally assembled car No upfront insurance/Takaful Payment
No advance Rental Available in tenures of 3, 4 and 5 years Minimum-security deposit as low as 15%
Car Ijarah also features used Vehicles In addition the to our leasing of new of cars, leasing we also
hand locally assembled vehicles as well. This feature is specifically designed as a very economical option as well. With a minimum-security deposit as low as 20%, our used Car Ijarah facility is at your service.
Used Car Selection Criteria
Selecting a used car is very simple, all you need to ensure is:
That the second hand car you select should be from its first owner. The Vehicle should not be older than 5 years when selected by you for Car Ijarah. The
minimum-security deposit for a vehicle up to 2 years of age is 20%, while minimum security deposit for a vehicle over 2 years of age is 30%. At the time of termination of our Ijarah agreement, the vehicle
should MPT NE ,PRE TJAM 8 YEARS OLD. This means that if a car is 5 years old, the Car Ijarah tenure is not more than 3 years and if its 4 years old, the
tenure may be set for a 3year or 4 year term. This facility Toyota, is for locally new manufactured model Second of cars of Suzuki,
should not be worth more than Rs.1 million or less than Rs.250,000/-. Meezan Bank will have the vehicle valued by an independent valuation company
Approved by Meezan Bank’s Shariah Board Car Ijarah is designed under the supervision of Meezan Bank’s Shariah Supervisory Board and is
approved by the Board.
Rental Calculations To calculate the monthly rentals simply multiply the cost of the car with the rental factors given in the table below
Rental Calculation for new cars Security Deposit 10% 15% 20% 25% 30% 35% 40% 45% 50% 0.033988 0.032303 0.030619 0.028934 0.027249 0.025565 0.023880 0.022195 0.020511 0.028131 0.026765 0.025398 0.024032 0.022666 0.021299 0.019933 0.018567 0.017200 0.025341 0.024125 0.022909 0.021693 0.020478 0.019262 0.018046 0.016830 0.015614 3 years 4 years 5 years
costing Rs.300,000 for a tenure of 5 years and are willing to pay a 50% Security Deposit, your monthly rental would be,
Rs. 300,000 X 0.015614 = Rs. 4,84/- per month for 5 years (** All other costs will be charged at actual)
Rental Calculation for used cars Security Deposit 15% 20% 25% 30% 35% 40% 45% 50% 0.032519 0.030823 0.029126 0.027429 0.024572 0.024036 0.022339 0.020642 0.026990 0.025611 0.024232 0.022853 0.021474 0.020095 0.018716 0.017338 0.024364 0.023135 0.021906 0.020676 0.019447 0.018218 0.016989 0.015760 3 years 4 years 5 years
costing Rs. 300,000 for tenure of 5 years
And are willing to pay a 50% Security Deposit, your total monthly rental would be:
Rs. 300,000 X 0.015760 = Rs. 4,728 per month for 5 years (** All other costs will be charged at actual)
Documentation required for Car Ijarah It is very easy to apply for Car Ijarah, just bring the following documents. Copy of CNICs. Two recent passport sized photographs Recent Utility Bill (Electric/Gas/Water) received
at the residential address Last Six Month Bank Statement Last Six Month Bank Statement of Business (for Businessmen) Certified/Original copy of Recent Pay slip (for
Salaried Individuals) Copy of Rent Agreement (if applicable)
How can I apply?
customer documents financing
form, in the
required get your
approved in a 1-2 working days. To experience the comfort of our personalized services just visit your nearest Meezan Bank Branch.
3. Easy Home.
Meezan Bank’s “Easy Home” Your own home, the Riba-Free way.
First complete Islamic Home Finance Facility in Pakistan!
Welcome to Pakistan’s long awaited totally Shariahcompliant Housing Finance facility; approved by Meezan Bank’s renowned Shariah supervisory Board Easy Home is
For at Meezan Bank, we are committed to meeting our customers’ needs, in a truly Shariahcomplaint
manner coupled with dedicated service excellence.
Why is Halal home finance so important to you? Owning your own home is one of life’s most
important achievements. It represents your security, stability, and is a great blessing in itself. It provides that your all-important loved safety and comfort in for you and often the
required money can take a lifetime in itself. Rising property prices, taxes, inflation, currency
devaluation… it’s all a very hard bargain. In the other hand, owning your own home you and paying by step an easy
complete ownership, is so much better than paying a rent which ultimately only adds to your expenses. Added to that is your desire to stay away from interest based financing and be totally Riba-Free,
thus achieving that inner satisfaction and peace of mind you desire so much. Why not have the best of both world? Isn’t that why you are working so hard for anyway
Bank in a joint ownership of your property, where the Bank will provide a certain amount of financing –
usually up to 85% . You agree to a monthly payment to the Bank of which a component is for the use of the home (rent), and another for your equity share. In fact, the total monthly payment is reduced regularly as your share into the property grows. When you have made the full investment that had been agreed, you become the sole owner with a free clear title to the property.
Easy Home offers you a comprehensive solution : Easy Buyer – Buying a home is Easy & Halal Easy Builder- Building a home is Easy &Halal Easy Halal RenovateRenovating a home is Easy &
mortgage is Easy & Halal Within these wonderful options come the special
Flexible Financing Tailored to Support You High financing amounts. Flexibility to make partial prepayments. Minimal processing charges. Very affordable plan with and a competitive monthly rental
Quick Processing Time Absolutely hassle-free. Quick turn-around-times, with no burdensome complexities or excess paper work. It’s simple, Halal, and easy!
financing for your home, made easy with Meezan Bank’s Easy Home!
Easy Home Buying a Home is Easy & Halal! Choose it and be ready to move in. Meezan Bank will finance up to 85% of the appraised value of your new home.
Easy selection of financing tenure from 3 years up to a maximum of 20 years.
Easy Builder Building a Home is Easy & Halal!
that or to
have already started. Meezan Bank will finance up to 70% of the appraised value of your home cost. Flexible financing from PKR 300,000/- to PKR 40 million. Easy selection of financing tenure from a minimum of 2years (excluding construction period of max 12
months) up to a maximum of 20 years.
Easy Renovate Renovating your Home is Easy & Halal!
Meezan Bank’s Easy Renovate!
Meezan Bank may finance up to a maximum of 80% of the appraised value of your existing home
already in a “livable” state. Flexible financing, 30% value of the property.
Easy selection of financing tenure from 2 years up to a maximum of 15 years. Maximum 6months required for renovation work.
Easy Replacement Replacing your existing mortgage is Easy & Halal
Replacing an existing Mortgage facility from another institution. Bungalow. Applies to the residential apartment or
salaried persons and 70% for Businesspersons. Flexible Million. financing from PKR 300,000/to PKR 40
Documents Required for Easy Home:
Income Information. Salaried Person: Copy of recent pay slip/employer letter. Employer Certificate for Salaried employees
including tenor, designation & salary. Last 6 months Bank statement. Business person: Copy of management accounts (if applicable). Bank Statement of Business.
Certificate). Professional Association Membership
Certificate/Practice License. Professional Degrees/Certificates. Property Documents: Copy of all related Property documents. Approved Building Plan. Processing Fee: With Application. Processing fee Legal Charges 5,000/5,000/-
Income Estimation Charges 4,000/Property Valuation Charges After Approval: Legal documentation Charges. 3,500/-
Rs. 1,000(Up to 1M) Rs. 2,500(Above 1M) Rs. 10,000(Above 10M).
Finally, blessing, thanks we to Allah, able due to to His bounteous this
comprehensive report towards the deep knowledge of ocean already exist. Heart is warm with love and
thoughts have turned to the city of knowledge. Before joining Meezan bank, we were thinking that all banks either Islamic or Conventional works under the same policies but, after joining the Meezan Bank
Ltd. we recognized that we were wrong. we don’t know about the other banks but I could say confidently that Meezan Bank Ltd. is working under the policies of Islam and tries its level best towards the Islamic banking. In this modern era in the competition of thousands of conventional banks Meezan Bank Ltd. is fulfilling the customer banking needs being in the “SHARIAH”. By the grace of Allah, 166 Branches of Meezan Bank Ltd. are servicing the customer in different 40 cities.
cause of Riba-free banking”.
Meezan Bank Ltd
KASHIF AFZAL JUNEJO SYED ARSALAN MANNAN M.MUSSAIB ASIM AHSAN MAQBOOL
(FA07-BB-0033) (FA07-BB-0087) (FA07-BB-0035) (FA07-BB-0040)
02- Dec – 2009
SUBMITTED TO SIR SHUJJAAT SALEEM FOR THE COURSE FINANCIAL INSTITUTIONS
Table of Contents
Acknowledgement……………………………………………………1 Executive Summary…………………………………………………2 Introduction…………………………………………………………..3 Shariah Board…………………………………………………………4 Share Holders in Meezan
Bank……………………………………5 Our Head Office………………………………………………………6 Introduction to Meezan
Bank……………………………………...7 (Garden West Branch Karachi) Objectives………………………………………………………………8 Staff (Garden West Branch Karachi)
………………………………9 Organizational …….10 (Garden West Branch Karachi) Accounts offered by Meezan bank on Mudarabah 11 Basis……………………………………………………… Structure……………………………………..
Opening…………………………….21 Investment Certificate Issued By Meezan
bank………………..23 Packages Launched by Meezan
Bank……………………………..25 Consumer Banking Products Offered by Meezan
bank………..36 Difference B/w Musharakah &
Mudarabah………………………36 Murabah………………………………………………………………… 37 Car Ijarah……………………………………………………………….37 What Makes Car Ijarah Unique?
Documentation Required for Car Ijarah………………………….45 Easy Home………………………………………………………………46 Easy Buying……………………………………………….48 Easy builder………………………..……………………..49 Easy Renovate…………………………………………….49 Easy Replacement………………………………………..50 Documentation Required for Easy home…………………………..50 Balance Sheet of Meezan Bank………..……………………………52 Profit & Loss Account Meezan bank……………………………….53 What I Learned During My Internship in Meezan Bank (Garden West Branch Karachi)
………………………………………54 Conclusion………………………………………………………………. 56
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