Business Internship Report On

Saddar Branch Hyderabad Submitted By Sehrish Habib (B07/MBA/059)

Seat No 64

SESSION: 2008-2009

All praise to Almighty Allah, the most merciful and compassionate, who give me skills and abilities to complete this report successfully I am grateful to my parents who are always been a source of encouragement for me throughout my life and from start to the end of this report I feel deeply indebted to all my teachers for provision of inestimable, priceless and valuable co operation and support. I would also like to thanks Meezan Bank Limited for provision of valuable guidance and information. 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. Last but not least I would prefer to convey the credit to Hiast Authorities without whose on time support and guidance it would be difficult for me to achieve this task successfully. Sehrish Habib (B07/MBA/059)


This Report is specially meant for the student of MBA. It is concerned to a brief study of the operation, Function, tasks and services of Meezan Bank of Pakistan. Banking play very important role in the commerce and economic development of a country. Now-a-days banks are using different modern technologies, which influence the managerial activities that are why I decided to do my internship Training in the bank.

Meezan Bank Limited, a publicly listed company, was incorporated on January 27, 1997 and started operations as an investment bank in August that year. In January, 2002 in a historic initiative, Meezan Bank was granted the nation’s first full-fledged commercial banking license as a dedicated Islamic Bank, by the State Bank of Pakistan. MBL is the largest Islamic Bank in Pakistan with a network of 201 branches in 54 cities.

In preparation of this Report I have tried my best to provide all possible information about the operation, function and tasks of MBL in brief and comprehensive form. The report begins with the purpose of making such report than detailed introduction of MBL discussed. It also includes management structure of MBL and different products and services offered by MBL along with their features. It also includes a brief department worked during internship and SWOT of MBL. I have also tried my best to use simple and easy words.

To discuss the financial position of MBL financial statements and ratios are also shown. The internship report ends with some recommendation after identification of some problems observed during the course of internship.

Chapter – 1



The study is about the general operations and management of Meezan Bank Limited main saddar branch Hyderabad, and focuses on its function and operations, which was conducted through interviews in the branch. Every student of MBA (Management of business administration) has to under go an internship program of six-eight weeks in any organization to get exposure to the real time business environment and to attain practical knowledge about daily operation of that entity. The real purpose of this internship program is to provide an opportunity to the students to see the practical applications of their background professional studies. The repot is a reflection of my experience when I was internee in MBL, main saddar branch, Hyderabad. Meezan Bank Limited, a publicly listed company, was incorporated on January 27, 1997 and started operations as an investment bank in August that year. In January, 2002 in a historic initiative, Meezan Bank was granted the nation’s first fullfledged commercial banking license as a dedicated Islamic Bank, by the State Bank of Pakistan



It is necessary for the student of MBA that they should be acquainted with practical applications of business studies and should gain business experience. In this connection every student is required to undergo an internship of at least six weeks in any organization. It not only gives us a chance to interact with the people already working there this enable us to get to know the financial institutions concern’s atmosphere and business stature in Hyderabad. Purpose of the study was two pronged.

1.2.1 General Purpose
• This study offers knowledge and experience of courses studied.

• •

To improve the writing and analytical skills of students. To familiarize the student with the practices and working environment during the internship.

Specific Purpose
• • • • A partial fulfillment as a requirement for the completion of MBA degree. To objectively observe the operations of Meezan Bank of Ltd in general and the operations of MBL, main saddar branch Hyderabad in specific. To get acquaintance to the banking operations. To make recommendations or implementation plans for the improvement of the operations of MBL, main saddar branch Hyderabad in the light of our professional studies.



The study covers two areas with its variables, which affects the operations of the branch directly, or indirectly. These two areas of variables are: • • Branch specific variable. Bank specific variable.

The branch specific variables are the variables under the control of the branch management and directly affect its operations e.g. • • • • • Layout of the branch. Customers’ relations. Departments in the branch ATM Online banking.

The bank specific variables are those variables, which are not in control of the branch management e.g. • • • History of MBL Services provided by MBL Role of MBL



During my internship while I was compiling I use the following research methodologies.

1.4.1 Data Sources
Both primary and secondary have been used in the compilation of this report. The methodology used is as under:


During the compilation of this report, I relied mainly on the primary data. The tools used for the collection of primary data are interviews and observation. To get primary data I also performed some practical work.


The secondary data was mainly used for as a background material and for purpose of references. The major sources of secondary data were the annual report 2010, management accountant’s journals, newspaper, books, and MBL website.

1.4.2 Research Approaches
Keeping in view my limitations during and the nature of the study, two research approaches were adopted. These research approaches are: • • Survey. Observation as.  Participant observation and  Non-participant observation.

1.4.3 Sampling Plan

Details of the sampling plan used during this report are given below.

Sampling Unit

The sampling unit constitutes of the following. • Manager of MBL main saddar branch Hyderabad. • Staff of MBL main saddar branch Hyderabad • Customers.

Sample Size

The sampling size constituted of • All the customers coming into the Bank. • • One bank managers. Six staff members.

Sampling Procedures

The sampling procedure used was non-probability judgmental and convenience procedure.

Contact Method

Personal contact method was used as a contact method, which included: • Structured interviews with managers and personnel from operations department. • Unstructured interviews with staff members.



The Study was subject to the following limitations, the absence of which could made this report more accurate, systematic and factual: •

The very limited period of time was available to conduct the detailed analysis, which hindered procurement of exhaustive and complete per day visit, which also cause some difficulties in obtaining adequate information.

The bank officials because of secrecy of the bank matters didn’t answer the number of questions.

The non cooperative behavior of some staff members.



The report has been divided into eight chapters. A brief introduction of these chapters is given below:

Chapter 1 This chapter contains a brief introduction of the report. Chapter 2 A brief organizational profiles and history of MBL is presented in this
chapter, and an overview of the services offered by MBL is given in this chapter.

Chapter 3 This chapter contains brief introduction of different departments
Of main sadder branch Hyderabad on which I worked.

Chapter 4 This chapter contains a brief introduction of the management of
Meezan Bank Limited

Chapter 5 It is consist of the product and services of the MBL. Chapter 6 It consists of SWOT analysis of the (MBL, main saddar branch

Chapter 7 Financial highlights of the MBL. This chapter is consist of the financial
statement of the MBL.

Chapter 8 It consists of the important findings of the study and the suggestions
developed in the light of these findings.

Chapter – 2



2.1.1 Islamic Finance Islamic finance was practiced predominantly in the Muslim world throughout the middle Ages, fostering trade and business activities with development of credit. In Spain and the Mediterranean and Baltic states , Islamic merchants became indispensable middleman for trading activities. In fact European financier and businessmen later adopted many concepts, techniques, and instruments of Islamic finance. The financial system is founded on the absolute prohibition of the payment or receipt of any predetermined. Granted rate of return .this closes the door to the concept of interest and precludes the use of debtbased instrument. The system encourages risk sharing promotes entrepreneurship, discourages speculative behavior, and emphasizes the sanctity of contracts. 2.1.2 The Islamic Economic System One of the forms of capitalism, which has been flourishing in non Islamic societies, is the interest based investment. There are normally two participants in such transaction. One is the investor who provides capital on loan and other manager who run the business. The investor has no concern whether the business run in to profit or loss he automatically get interest. 2.1.3 Riba 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 . 1. Riba An Nasiyah 2 .Riba Al Fadl

1. Riba An Nasiyah: Defined as excess, which result from predetermined interest which a lender receives over and above the principle (Ras ul Maal). 2. Riba Al Fadl: Defined as excess compensation without any consideration resulting from a sale of goods. 2.1.4 Commercial Interest And Usury: In 17th century two new technical terms of interest emerged after the established of banking system. • Tijarti Sood : Interest paid on loan taken for productive &profitable purposes. • Sarfi Sood : Interest paid on loan taken for personal need and expenses. 2.1.5 Islamic banking: The interest free system envisages the gainful use of one’s saving with other on the basis of profit and loss sharing in a defined manner. Effective from Jan 01, 1981, the Nationalized commercial banks and now all other commercial banks in Pakistan have introduced the profit and loss sharing (PLS) Deposit Scheme features of which as under . • PLS- Saving Accounts • PLS Term Deposit Accounts • Investment Of PLS Deposits

2.1.6 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. 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. MUSAWAMAH Musawamah is a general and regular kind of sale in which price of the commodity to be traded is bargained between seller and the buyer without any reference to the price paid or cost incurred by the former. Thus, it is different from Murabaha in respect of pricing formula. Unlike Murabaha, seller in Musawamah is not obliged to reveal his cost. Both the parties negotiate on the price. All other conditions relevant to Murabaha are valid for Musawamah as well. Musawamah can be used where the seller is not in a position to ascertain precisely the costs of commodities that he is offering to sell. ISTISNA_A It is a contractual agreement for manufacturing goods and commodities, allowing cash

payment in advance and future delivery or a future payment and future delivery. Istisna’a can be used for providing the facility of financing the manufacture or construction of houses, plants, projects and building of bridges, roads and highways. BAI MUAJJAL Literally it means a credit sale. Technically, it is a financing technique adopted by Islamic banks that takes the form of Murabaha Muajjal. It is a contract in which the bank earns a profit margin on his purchase price and allows the buyer to pay the price of the commodity at a future date in a lump sum or in installments. It has to expressly mention cost of the commodity and the margin of profit is mutually agreed. The price fixed for the commodity in such a transaction can be the same as the spot price or higher or lower than the spot price. 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 preagreed 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.

• Meezan Bank Limited, a publicly listed company, was incorporated on January 27, 1997 and started operations as an investment bank in August that year. In January, 2002 in a historic initiative, Meezan Bank was granted the nation’s first full-fledged commercial banking license as a dedicated Islamic Bank, by the State Bank of Pakistan. Meezan Bank has clearly established itself as the largest Islamic Bank in Pakistan with the largest Islamic Banking branch network in the country. The banking sector is showing a significant paradigm shift away from traditional means of business and is catering to an increasingly astute and demanding financial consumer, who is also becoming keenly aware of Islamic Banking. Meezan Bank bears the critical responsibility of leading the way forward in establishing a stable and dynamic Islamic Banking system replete with dynamic and cutting-edge products and services. During the eight years of its operations as an Islamic commercial bank offering universal banking services to customers, Meezan Bank has been one of the fastest growing banks in the history of Pakistan’s banking sector. Average growth in deposits has been 55% per annum during this period while the branch network grew from 4 to 201. The Bank has established a strong and credible management team comprised of experienced professionals, that have achieved a strong balance sheet with excellent operating profitability and strong ratios, which places the Bank at the top of the Islamic Banking industry. The Bank has been assigned a long-term entity rating of A+ with a ‘Stable’ outlook and a short-term entity rating of A1. The Bank’s main shareholders are leading financial institutions of the Region namely, Noor Financial Investment Company, Kuwait, a leading investment company based in Kuwait; Pak-Kuwait Investment Company, a AAA rated financial entity in the country and the Islamic Development Bank of Jeddah. The established position, reputation, strength and stability, of these institutions add significant value to the Bank through Board representation and applied synergies. The Bank has an internationally renowned Shariah Supervisory Board Chaired by Justice (Retd.) Maulana Muhammad Taqi Usmani, an internationally renowned figure in the field of Shariah, particularly Islamic Finance. He holds the position of Deputy Chairman at the Islamic Fiqh Academy, Jeddah and in his long and illustrious career has also served as a Judge in the Shariat Appellate Bench,

Supreme Court of Pakistan. The Board also includes Sheikh Essam M. Ishaq (Bahrain), Dr. Abdul Sattar Abu Ghuddah (Saudi Arabia) and Dr. Imran Usmani who is also the resident Shariah Advisor of the Bank. Dr. Imran is assisted by a team of professionals who strictly monitor the regular transactions of the Bank and are also responsible for Product Development.

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 world-class service excellence which our customers demand, all within the bounds of Shariah. Meezan Bank has a strong technology focus. It has invested heavily in state-ofthe-art software applications – namely Temenos T-24 and Oracle. It has also recently upgraded its hardware platform and also has a ‘hot’ disaster recovery site in place to cater to any unforeseen eventualities. By implementing robust and aggressive strategic and tactical initiatives on the side of consumer banking, Meezan Bank aims to fulfill its prime target of providing customers accessibility and convenience, within an atmosphere and culture of dedicated service and recognition of their needs. The Bank has a rapidly growing branch network across all major cities nation-wide. At Meezan Bank, we believe in adding value to our customers’ lives and businesses through dynamic and competitive products and services that fulfill their needs while conforming completely to the dictates of Shariah. At the same time, we endeavor to deliver competitive risk-adjusted returns to our stakeholders

1947 The inception of Pakistan as the first Islamic Republic created in the name of Islam. 1980 CII presents report on the elimination of Interest genuinely considered to be the first major comprehensive work in the world undertaken on Islamic banking and finance. 1985 Commercial banks transformed their nomenclature stating all Rupee Saving Accounts as interest-free. However, foreign currency deposits in Pakistan and foreign loans continued as before.

1991 Procedure adopted by banks in 1985 was declared un-Islamic by the Federal Shariat Court (FSC). The Government and some banks/DFIs made appeals to the Shariat Appellate Bench (SAB) of the Supreme Court of Pakistan.

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 the Supreme Court of Pakistan rejects the appeals and directs all laws on interest banking to cease. The government sets up a high level commission, task forces and committees to institute and promote Islamic banking on parallel basis with conventional system. 2001 The Shariah Supervisory Board is established at Al-Meezan Investment Bank led by Justice (Retd.) Muhammad Taqi Usmani as chairman. State Bank of Pakistan sets criteria for establishment of Islamic commercial banks in private sector and subsidiaries and stand-alone branches by existing commercial banks to conduct Islamic banking in the country. 2002 Meezan Bank acquires the Pakistan operations of Societe Generale and concurrently Al Meezan Investment Bank converts itself into a full fledged Islamic commercial bank. The first Islamic banking license is issued to the Bank and it is renamed Meezan Bank. President General Pervez Musharraf inaugurates the new Islamic Commercial Bank at a formal ceremony in Karachi. 2003 Meezan Bank establishes itself as the pioneer of Islamic Banking in Pakistan and quickly establishes branches in all major cities of the country. A wide range of products are developed and launched consolidating the Bank’s position as the premier Islamic Bank of the country Al Meezan Investment Management Limited (AMIM), the asset management arm of Meezan Bank, introduces Meezan Islamic Fund (MIF), the country’s first openend Islamic Mutual Fund. 2004 The State Bank establishes a dedicated Islamic Banking Department (IBD) by merging the Islamic Economics Division of the Research Department with the Islamic Banking

Division of the Banking Policy Department. A Shariah Board has been appointed to regulate and approve guidelines for the emerging Islamic Banking industry. The Government of Pakistan awards the mandate for debut of international Sukuk (Bond) offering for USD 500 million. The offering is a success and establishes a benchmark for Pakistan. Meezan Bank acts as the Shariah Structuring Advisor for this historic transaction. 2005 Meezan Bank becomes the first customer of Islamic Insurance (Takaful) by signing the first Memorandum of Understanding MoU with Pak-Kuwait Takaful Company Limited (PKTCL). The signing of this MoU has ushered Pakistan into a new era of Islamic Insurance (Takaful). 2006 A number of new dedicated Islamic Banks, namely Bank Islami and Dubai Islamic Bank, commence operations in Pakistan.Meezan continues its leadership position in the industry by more than doubling it branch network to a total of 62 branches in 21 cities, clearly establishing itself as the largest Islamic Bank of the country. Meezan Bank, becomes the first Islamic bank to introduce 8 am to 8 pm banking at selected branches in Karachi. 2007 Meezan Bank opens up its 100th branch. Two new dedicated Islamic Banks start operations in Pakistan, namely Emirates Global Islamic Bank and Dawood Islamic Bank. 2008 With 166 Branches (including 35 sub-branches) in 40 cities across Pakistan, Meezan Bank is clearly positioned as the leading Islamic Bank in the country. Work starts on the construction of Meezan Bank’s new Head Office building.The financing and investment portfolio of local Islamic banks reached Rs. 185 billion in December 2008 compared to Rs. 137.6 billion in December 2007. Market share in the overall banking increased to five per cent at end December 2008 compared with four per cent at end December 2007. Total assetsof Islamic banking reached Rs. 271.1 billion in December 2008 compared to Rs. 205.2 billion in December 2007. 2009 Branch network of six dedicated Islamic banks increases to 480 Branches (Including SubBranches) with Meezan Bank having a 42% share of the Islamic Banking branch network in the country with 201 branches in 54 cities accross the country. Islamic Banking's share grows to over 5.5% of the total Banking industry


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.


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.


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.

2.8 Meezan Bank entity rating of AA- for medium to long term and A-1 for short-term
Meezan Bank entity rating upgraded by JCR-VIS: Meezan Bank has received entity ratings of AA- (Double A Minus) for medium to long-term and A-1 (A-One) for shortterm. These ratings have been assigned by JCR-VIS Credit Rating Company, which has also set Meezan Bank’s outlook on medium to long-term rating as “Stable”. Meezan Bank’s ratings are based on its shareholding with world-renowned financial institutions, pioneering role in the industry, strong management initiatives in continuously introducing various range of Islamic products.

DEFINITIONS BEING USED BY JCR-VIS CREDIT RATING COMPANY Medium to Long Term AA+, AA, AAHigh: High credit quality. Protection factors are strong. Risk is modest but may vary slightly from time to time because of economic conditions. Short Term A-1: High certainity of timely payment. Liquidity factors are excellent and supported by good fundamental protection factors. Risk factors are minor.

Alhamdolillah, Meezan Bank has established 201 branches in 54 cities across Pakistan. This is a milestone that is not only the success story of Meezan Bank but also the continuing success story of Islamic Banking in Pakistan. With this extensive network, our existing and potential customers are now closer than ever in attaining Islamic Banking at their doorstep. All branches provide real time online banking facilities to customers.

As the first and largest dedicated Islamic Bank in Pakistan, Meezan Bank team continues to build on its Vision of establishing "Islamic Banking the Banking of First Choice". One of the key objectives of the Bank is to have its footprint strategically placed throughout the country enabling the public to avail the benefits of Shariah Compliant Banking in their neighborhood.

The Bank is currently segmented into three Regions of Pakistan. The cities in which the Bank presently operates are as follows:

Southern Region Hub (Lasbela) Hyderabad Karachi Mirpurkhas Nawabshah Quetta Sakrand Sukkur Tando Adam Tando-Allah-Yar

Central Region Arifwala Bahawalpur Burewala Chiniot Daska Dera Ghazi Khan Faisalabad Gojra Gujranwala Gujrat Hafizabad Jhang Kasur Khanpur Khushab Lahore Lalamusa Mandi Bahauddin Mian Channu

Northern Region Abbottabad Attock Dera Ismail Khan Dina Gujar Khan Haripur Havelian Islamabad Jhelum Kohat Mansehra Mardan Muzaffarabad Nowshera Peshawar Rawalpindi Swat

Multan Okara Rahim Yar Khan Sadiqabad Sahiwal Sargodha Sheikhupura Sialkot

• Meezan Bank Limited and Islamic Relief sign MOU for launching Islamic Microfinance: Meezan Bank signed an MOU with Islamic Relief, an independent International Relief and Development Organization founded in 1984 in UK with offices in more than 25 countries, for launching Islamic Microfinance in Pakistan. Under the MOU, Meezan Bank will assist Islamic Relief to enhance its Islamic Microfinance operations in Pakistan by capacity building, training and product development support. Public awareness seminars on Islamic Banking: Meezan Bank conducted 24 Islamic Banking seminars in 14 cities across Pakistan during 2009. Customers appreciated this initiative by Meezan Bank and requested that such seminars should be held more frequently since these help them in gaining a better understanding of Islamic Banking. Launch of MBA in Islamic Banking at Riphah University, Islamabad: Meezan Bank Limited and Riphah International University, Islamabad signed an MOU for jointly launching a programme on Islamic Business and Finance for students and finance professionals. Meezan Bank will provide expertise in structuring the course, provide faculty for conducting credit hour courses and for conducting workshops & seminars and share case studies and proprietary research.

Chapter – 3



• • • • • • • Branch Name : Hyderabad Branch Address : Saddar Bazar Cantonment, Hyderabad Phone : (92-22) 2787991-93 Fax : (92-22) 2782772 Email : Branch Manager : Irshad Ali Chachar ATM available

There are 5 main departments at the branch:


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 3.2.1 Products offered by this department: a) Riba Free Rupee Savings Account  Current account  Saving Account b) Riba Free Dollar Savings Account  Foreign Currency Account 3.2.2 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. 3.2.3 TYPE OF ACCOUNTS OPENED    CURRENT SAVING TERM DEPOSIT

3.2.4 Sub-categories of Accounts and the Basic Requirements:

MINOR ACCOUNT  Bay form and copy of passport minor  National Identity card of Guardian  Signature requirement of guardian

INDIVIDUAL ACCOUNT     Copy of national identity card Complete account opening form Letter of introduction if required Visiting Card (if the person is employed)

JOINT ACCOUNTS As evident from the name these accounts can be jointly opened by any number of persons. The minimum number of persons required to open a joint account is two but there is no maximum limit.

Requirements:         National Identity card of all Applicants. Signature of all Applicants. Zakat Affidavit of all Applicants (zakat Examption). Operation of account clearly mentioned. The options available to operate the account are: Jointly Either or Survivor Other(s)(Please specify)

CLUB /SOCIETY/ASSOCIATION [Requirements]:     Certified copy of resolution Certified copy of rules Copies of National Identity cards of all directors/passports Completed account opening form

Specimen Signature Card

TRUSTS ACCOUNTS      Completed account opening form Specimen Signature Card Certified copy of trust deed Copy of rules/by laws Copies of National Identity cards of all trustees

CORPORATE ACCOUNTS ACCOUNTS OF SOLE PROPRIETOR (Requirements)       Declaration Letter Copy of NIC/Passport of the proprietor National Tax Certificate Declaration of Sole Proprietor on company letterhead Business registration Certificate Specimen Signature Cards and completed account opening form. Partnership Deed, certified copy. Photocopies of NIC of all partners. Partnership Mandate (Prescribed Format).

ACCOUNT OF PARTNARSHIP (Requirements)   

ACCOUNT OF LIMITED COMPANIES (Requirements)    List of Directors of company. NIC of all Directors. Copy of certificate of Incorporation.

     

Memorandum of Association. Article of Association. Copy of Board Resolution. Latest Copy of Form-29 Stamp of Company, which is to be affixed on Certificate of Commencement of Business the account opening form.

ACCOUNTS OF LITERATE [Photo Account] These accounts can be opened individually or jointly. 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.

3.2.5 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 chequebook. Chequebook is issued after one day of receiving the requisition slip. LETTER OF THANKS

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. 3.2.6 Overall functions performed by Customer Services Department:    ACCOUNT OPENING ACCOUNT CLOSING GENERAL CLIENT DEALING

3.3.1 FUNCTIONS PERFOMED: CLEARING 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 inter city clearing stamp is required. Some cheques are local and some are outstation. The institution N.I.F.T. provides the services in clearing the cheque. They send the different cheque to different banks. The N.I.F.T service is only in few cities, like Karachi, Lahore, 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 inter city 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 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 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.


I. 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. II. 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 through computer.

III. 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: a) Pay order b) Demand drafts c) Inward collection d) Outward collection a) 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. b) DEMAND DRAFT An order to pay money to the payee who is residing outside the city. DD can be for a customer who may or may not have an account in the bank but the other person’s account must be maintained with the bank for which the payer has demanded the DD. c) INWARD COLLECTION When the bank receives cheques of any other bank from its any branch situated in the some other city, 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. 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 Books Handling  Application for New Cheque Book RIBA FREE TERM DEPOSITS OFFERED BY BANK The following products are handled under the operation department.      Certificate of Islamic Investment Monthly Mudarabah Certificates Dollar Mudarabah Certificates Meezan Amdan Certificates Meezan Providence Certificate

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 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. 3.4.3 In cash department following books are maintained.    Scroll book Paying book Cash balance book

SCROLL BOOK When cash is received at the customer it is recorded in the scroll book. PAYING CASH BOOK The cashier makes entry in the paying cashbook when cash is paid. CASH BALANCE BOOK The consolidated figure of receipt and payment of cash is entered in cash balance book.

3.5 CREDIT / FINANCE DEPARTMENT The basis function of the bank is to accept deposit and lend money to the borrowers against a spread so to be able to give some profit to the depositors as well as to earn profit for the bank. The main function of the credit department is to lend money to the customer. MBL lends money in the form of clean advances against promissory notes as well as secured advances against tangible and marketable securities. Islamic Financing for the following:    Corporate SME Personal

3.5.1 Type of customer and products offered by MEEZAN BANK LIMITED

Consumer finance • • Easy Home (housing finance) Car Ijara (auto finance)

Corporate Banking • • • • Working Capital Finance Project Financing for existing Corporate having expansion or BMR requirements Islamic Export Refinance Facility (Part I and Part II) Trade Related Services

Commercial Banking • • • • Working Capital Finance Project Financing, Expansion or BMR Requirements Islamic Export Refinance Facility Trade Related Services

SME Banking • • • • Working Capital Finance Project Financing, Expansion or BMR Requirments Islamic Export Refinance Facility Trade Related Services

Investment banking • • • Syndications & Structured Finance Project Financing Financial Advisory Services

The account dealing with the foreign currency is called foreign currency account. Meezan home Remittance provides Quick Remittance in major currencies i.e. • • • • • • • USD GBP Euro JPY


Product of MBL for foreign currency • • • • Riba Free Dollar Savings Account Foreign Currency Account Meezan visa dibit card Dollar Mudarabah Certificates

With a minimum of only $100 you can open a Dollar Saving Account with us under a Mudarabah arrangement that is strictly in conformity with the principles of Islamic Shariah. The return earned on the Mudarabah pool is calculated every month and the profit ratio for all investors is declared at the beginning of the month. If you maintain a minimum average monthly balance of $ 500, you shall be eligible to receive profits that shall be credited to your account every month.If any person wants to import goods from foreign, an account is required and for international trading the FC is needed. MBL provide foreign currency on Pak rupee at booking rate and the central office sent Rates In foreign currency department the remittance is sent through Foreign Telegraphic Transfer. The account holder can sent the amount in foreign bank account. If any transaction is made the daily report is given to the central office Karachi daily.

Different accounts can be open like joint account or company account. The thankful letter is sent for opening the foreign currency account to account holder and introducer. When any transaction is made the bank inform stock exchange daily. The foreign currency note is counted and recorded in the cash memo book. The people in the foreign country sent the amount through S.W.I.F.T. Weekly and monthly report of all the transaction is given to the stock exchange. Cheque book is also issued to the account holder & the foreign currency Account number is given to him. In this FBC & FBR is done. Debit Credit Voucher is used. The charges are deducted while closing the foreign currency account. And the cheque book is return while closing the account. The branch sent excess foreign currency to its main branch. If any branch needs foreign exchange they sent to this branch.

Chapter – 4



The letter and spirit of Islamic Banking rest upon absolute adherence to the Shariah. The foundations of a strong Shariah underpinning at Meezan Bank were laid from the beginning. A world renowned Shariah Supervisory Board and a highly qualified and experienced in house Shariah Advisor are fundamental aspects of the Bank's core USP. The primary role of this board is to maintain and further strengthen this commitment and to ensure strict Shariah compliance in all the Bank's operations. 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.

The members of the Board are:

• • • •

Justice (Retd.) Muhammad Taqi Usmani (Chairman) Dr. Abdul Sattar Abu Ghuddah Sheikh Essam M. Ishaq Dr. Muhammad Imran Ashraf Usmani (Advisor)

The Board of Directors of Meezan Bank are: • H. E. Sheikh Ebrahim Bin Khalifa Al-Khalifa (Chairman)(Minister of Housing, Ministry of Housing, Kingdom of Bahrain) • • • • Mr. Naser Abdul Mohsen Al-Marri (Vice Chairman) Mr. Jassar Dakheel Al-Jassar Mr. Rana Ahmed Humayun Mr. Mohammed Azzaroog Rajab

• • • • • •

Mr. Ahmed Abdul Rahim Mohamed Mr. Nawal Ahmed Mr. Alaa A. Al-Sarawi Mr. Mian Muhammad Younis Mr. Irfan Siddiqui (President & Chief Executive Officer) Mr. Ariful Islam (Chief Operating Officer)


Share Holders

Rs. in million


Noor Financial Investment Company, Kuwait



Pakistan Kuwait Investment Company (Pvt.) Limited



Islamic Development Bank, Jeddah



Others Paid up Capital

808 6,983

11.57 100 %

Meezan Bank is managed by a team of professional bankers committed to the cause of Islamic Banking. This single unifying factor unleashes the tremendous power of a dedicated and motivated team committed to fulfilling the Vision and Mission of this Bank. The business segments of the Bank are: • • • • • Corporate Banking Investment Banking Commercial Banking and SME Consumer Banking Treasury & Financial Institutions

Asset Management (managed through a subsidiary Al Meezan Investment Management Limited.)

Retail Banking is organized in seven regions across Pakistan, namely South-I Region, South-II Region, South-III Region, Lahore Region, Faisalabad Region, Multan Region, and North Region.

Chapter – 5



Chapter – I


Introduction to Report

Meezan bank personal banking provides the following products and services.

A variety of shariah compliant Rupee and Dollar accounts, with an opportunity to earn a high rate of return in the form of halal profits. Account holders may avail numerous special banking services including an exclusive 8am to 8 pm branch banking service, Debit card facility, access to ATMs nationwide and account accessibility through numerous alternate distribution channels including Internet Banking and Phone banking facilities. 1. RUPEE CURRENT ACCOUNT (Riba free) Meezan Bank is pleased to offer Riba-Free Current Account, a flexible Rupee based account that is ideal for individuals and businesses looking for Shariah compliant banking and professionalism both under one roof. The Meezan Bank Current Account, is a comprehensive Halal method of acquiring a secure and easily maintainable Riba Free bank account. Bundled with 24/7 and special banking services, the Meezan Bank Current Account is an innovative value added account which provides customers both ease of utility and unmatched service quality. Key features of the Riba -Free Current Account • Instant access to funds at any online branch • • • • • • • • • Free Real-time Online Banking Services across our branch network nationwide Visa Debit Card Free 24/7 Internet Banking No restriction on withdrawals or number of transactions No deduction on low balance maintained Bank balance certificates & duplicate statements of account SMS Alerts service Stop Payment & Hold Mail instructions 24/7 Call Center with complete Phone-banking services

• •

Personal financial consultancy services Specialized 8 to 8 Banking at selected branches

2. RUPEE SAVING ACCOUNT (Monthly Profit Payment) 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.10,000. The profit on this account is calculated and paid on a monthly basis, and comes with a variety of free benefits, no restrictions on transactions, priority banking and more. • • Minimum amount required to open an account is Rs. 10,000 Riba Free COII Holders may open accounts without any minimum balance requirements

Riba Free Rupee Saving Account works under the principles of Mudarabah and is strictly in conformity with the rules of Islamic Shariah. Profit calculation and all banking transactions are in strict adherence to the Islamic Shariah, monitored by our Shariah Advisor and the Shariah Supervisory Board Key features Apart from first class service and personalized attention that our customers get when they bank with us, we offer the following additional conveniences: • Profit will be calculated on daily product basis • • • • • • • • • • Distribution of profit on monthly basis Instant access to funds at any online branch Free Online Banking services at all Meezan Bank branches nationwide No restriction on withdrawals or number of transactions Bank balance certificates & duplicate statements of account Stop Payment & Hold Mail instructions Visa Debit Card 24/7 Call Center with complete Phone-banking services Personal financial consultancy services Specialized 8 to 8 Banking at selected branches

3. DOLLAR SAVING ACCOUNT (Foreign Currency based Investment Opportunity)

Meezan Bank is pleased to offer Riba-Free Dollar Saving Account, a foreign-currency based investment opportunity that is set up on the principles of Shariah and as a result is free from the element of interest. With a minimum of only $100 you can open a Dollar Saving Account with us under a Mudarabah arrangement that is strictly in conformity with the principles of Islamic Shariah. The return earned on the Mudarabah pool is calculated every month and the profit ratio for all investors is declared at the beginning of the month. If you maintain a minimum average monthly balance of $ 500, you shall be eligible to receive profits that shall be credited to your account every month. Additional Features Apart from first class service and personalized attention that our customers get when they bank with us, we offer the following additional conveniences to our customers: • Monthly profit payment • • • • • • No restriction on withdrawals or number of transactions. 24/7 Call Center with complete Phone-banking services Taking stop payment instructions Taking hold mail instructions Issuance of duplicate statement of account Personal financial consultancy services

4. MEEZAN BACHAT ACCOUNT (High expected Rate of Return) Meezan Bachat Account is a unique saving account that provides high monthly returns with the flexibility to withdraw savings if needed. Thus Meezan Bachat Account offers a higher expected rate of return with the convenience of a savings account. With a Meezan Bachat Account, you are entitled for a higher the profit with a higher account balance. You receive profit even if your balance falls below Rs. 25,000/- in any month. Profit is credited to your account every month and is calculated with reference to the minimum balance maintained in the account during the preceding month. The Riba-Free Meezan Bachat Account works under the principles of Mudarabah and is strictly in conformity with the rules of Islamic Shariah. Profit calculation and all banking transactions are in strict adherence to the Islamic Shariah, monitored by our Shariah Advisor and the Shariah Supervisory Board.

Key Features

Enjoy a range of valuable features including: • Halal & High Competitive returns • • • • • • • • • • • Profit payment on monthly basis open for individuals only Minimum balance for account opening is just Rs.25,000/Maximum balance limit for getting highest profit rate is Rs. 1,000,000/Waiver of application fee for Car Ijarah & Easy Home for accounts with minimum balance of Rs. 500,000 Free Realtime Online Banking services at all Meezan Bank branches nationwide Free bank balance certificates Visa Debit Card 24/7 Call Center with complete Phone-banking services 24/7 Internet Banking – free and instant access to your account(s) anytime & anywhere Personal financial consultancy services. Specialized 8 to 8 Banking at selected branches

5. KAROBARI MUNAFA ACCOUNT (For large Corporate Entities) Karobari Munafa 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. It has no preset transaction limits and comes with a variety of free packaged benefits. Key Features • Profit will be calculated on a Daily Product Basis • • • • Minimum balance requirement for account opening is Rs. 1 Million No restriction on deposits and withdrawals Free facilities: chequebooks and payorders Dedicated account / relationship manager

The Karobari Munafa Account works under the principles of Mudarabah and is strictly in conformity with the rules of Islamic Shariah. Profit calculation and all banking transactions are in strict adherence to the Islamic Shariah, monitored by our Shariah Advisor and the Shariah Supervisory Board 6. LABBAIK SAVING AASAAN Labbaik Saving Aasaan is ideal for you if you are a small saver and wish to save for your spouse, children, parents etc. You can take benefit from this special Mudarabah based Deposit account (available from 6 months to 20 year plans) for Umrah & Hajj where you will also be entitled for profit on the deposited amount thus providing you a bigger incentive to save for Umrah/Hajj through Labbaik Saving Aasaan. Our dedicated branch staff will guide you for the expected Hajj/Umrah package prices for the specific year in which you wish to undertake the Holy journey and set the monthly deposit amount as per plan. Once the deposited amount reaches the package price you can fulfill your objective of performing Umrah/Hajj. The Labbaik Saving Aasaan Account is a non-checking account i.e. no cheque book or ATM card will be issued to you, however you shall have the option to withdraw from the scheme any time by closing your Labbaik Saving Aasaan Account. Use our calculators to calculate your flexible payment plan • Hajj Saving Aasaan Calculator • Umrah Saving Aasaan Calculator

How it works 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 the Islamic modes, including but not limited to Murabaha, Ijarah, Istina and Diminishing Musharakah. The Bank will calculate the profit of the deposit pool every month and income will be shared between the Bank and the Customers on a Gross Income level, based on the pre agreed profit sharing ratios announced at the beginning of the period. The profit sharing ratios are available here or can also be requested from the branches. The profit will be distributed among the Labbaik Saving Aasaan Account holder as per the profit sharing Weightages announced at the beginning of the month. Accordingly your account will be credited with the proportionate profit amount. In case of any loss, as per the rules of Mudarabah, the Rab-ul-Maal shall bear the loss in the ratio of their investment.

7. MEEZAN BUSIENSS 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. Meezan Business Plus Account can be opened by: • Individuals • • • Sole Proprietorships Partnerships Limited Companies

Key features • Minimum investment required to open an account is Rs. 100,000/• • • • • • • • • • • • • 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. 100,000/-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

Meezan Bank provides a complete range of term certificates. From short term to long term with intermittent exchange in a range of currencies, the product menu is at once robust and dynamic. Our range of term deposit products include: 1. CERTIFICATE OF ISLAMIC INVESTMENT The Riba Free Certificate of Islamic Investment is a Shariah compliant investment certificate with a minimum investment of Rs. 50,000 and offering tenures from 3 months to 5 years. Profit on investment may be earned on the following basis: • • • Monthly profit on 1, 2, 3 and 5 years (Minimum Investment Rs. 200,000) Quarterly profit on 1, 2, 3 and 5 years At maturity profit payment for all tenures

Riba-Free Certificate of Islamic Investment (COII) works under the principles of Mudarabah and is strictly in conformity with the rules of Islamic Shariah. Profit calculation and all banking transactions are in strict adherence to the Islamic Shariah, monitored by our Shariah Advisor and the Shariah Supervisory Board. Enjoy a range of valuable features including: • Halal and high competitive returns • • • • Pre-mature withdrawal options available Free Online Banking services at any of our branches 24/7 Call Center with complete Phone-banking services Specialized 8 to 8 Banking at selected branches

2. MEEZAN AAMDAN CERTIFICATE The Riba-Free Meezan Aamdan Certificate (MAC) is a long-term deposit certificate with an exceptionally high monthly profit designed especially for those individuals and corporations who are in need of regular stream of monthly income. MAC is a monthly income (mahana aamdani) certificate with a variety of free packaged benefits. The certificate under the principles of Mudarabah, is strictly in conformity with the rules of Islamic Shariah. Profit calculation and all banking transactions are in strict adherence to the Islamic Shariah, monitored by our Shariah Advisor and the Shariah Supervisory Board.

Key Features Enjoy a range of valuable features including: • Halal high competitive returns • • • • • • • • • • • Minimum investment amount: Rs. 100,000/Special attraction for Widows and Senior citizens with minimum investment of PKR 50,000/Available tenures of 5½ years and 7 years Profit payment on monthly basis. Pre-mature withdrawal options available as per approved schedule Free cheque book Free ATM withdrawals (unlimited transactions per month) from Meezan Bank ATM outlet nationwide network Free Online Banking services at all Meezan Bank branches nationwide Free Internet banking facility 24/7 Call Center with complete Tele-banking services Specialized 8 to 8 Banking at selected branches

3. MEEZAN PROVIDENCE CERTIFICATE Meezan Providence Certificate is a long-term investment certificate specially designed to cater to the needs of corporate and business concerns for purposes of investing their Provident, Pension and Gratuity Funds. As any prudent investor, your main concerns would be total security along with the best returns possible, especially as these funds are a trust from your employees and one that bears an important responsibility. Meezan Providence rests on the well known and solid financial strength of Meezan Bank, which has a strong and credible balance sheet with excellent operating profitability, including a capital adequacy ratio that has placed the Bank at the top of the industry, a long-term entity rating of A+, and a short-term entity rating of A1. Furthermore, our sterling track record shows consistently beneficial and highly competitive returns for our broad range of investors. Finally, comes the benefit of truly Halal returns, a benefit you may not have had the opportunity to enjoy before and one that you can now pass on to your employees, many of whom would be grateful for such an opportunity. Riba-Free Meezan Providence Certificate (MPC) works under the principles of Mudarabah and is strictly in conformity with the rules of Islamic Shariah. Profit calculation and all banking transactions are in strict adherence to the Islamic Shariah, monitored by our Shariah Advisor and the Shariah Supervisory Board. Key Features Enjoy a range of valuable features including: • A 100% halal investment in strict compliance with Shariah • • • • • High Returns Long-term security ensured Minimum investment amount: PKR 1,000,000 Available tenures of 2, 3, 5 and 7 years Pre-mature withdrawal options available

Eligibility Criteria Investing is simple and easy, as all you need is: • To have a registered or unregistered Employee Provident/Gratuity/Pension Fund. • Have operations based in Pakistan.

4. MONTHLY MUDARBAH CERTIFICATE Riba Free Monthly Mudarabah Certificates is a flexible rupee based investment which has been designed to give you a monthly return. The minimum investment required is only Rs. 100,000 and you receive profit for each complete month of investment with the Bank. The Monthly Mudarabah Certificate works under the principles of Mudarabah and in strict conformity with the rules of Islamic Shariah, the Profit calculation of Monthly Mudarabah Certificates and all other banking transactions are in strict adherence to the Islamic Shariah, monitored by our Shariah Advisor and the Shariah Supervisory Board. Key Features During your relationship with us, you would be entitled to receive the following additional benefits. • • • • • • • • A 100% halal investment in strict compliance with Shariah Monthly profit payment to your current or saving account with us Pre-mature withdrawal option available as per approved schedule (applicable to all certificates) Bank balance certificates Free Online Banking services at all Meezan Bank branches 24/7 Call Center with complete Phone-banking services Personal financial consultancy services Specialized 8 to 8 Banking and Ladies Banking at selected branches

5. DOLLAR MUDARBAH CERTIFICATE The Riba-Free Dollar Mudarabah Certificate (DMC) is a flexible investment product which has been designed to give you profit payment options at monthly, quarterly and maturity. DMC works under the principles of Mudarabah and is strictly in conformity with the rules of Islamic Shariah. On agreeing to become a DMC holder, the customer enters into a relationship based on Mudarabah with Meezan Bank. Under this relationship, the customer is an investor (Rabul-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.Certificate works under the principles of Mudarabah and is strictly in conformity with the rules of Islamic Shariah. Profit calculation and all banking transactions are in strict adherence to the Islamic Shariah, monitored by our Shariah Advisor and the Shariah Supervisory Board. Key Features Enjoy a range of valuable features including: • Halal competitive returns • • • • • • • • • Minimum investment amount: USD 10,000/Available tenures of 3 months, 6 months, 1 year, and 3 years Profit payment option at maturity and six monthly basis Pre-mature withdrawal options available as per approved schedule Bank balance certificates Access to priority desk. Personal financial consultancy services 24/7 Call Center with complete phone banking services 8am to 8pm Banking and Ladies Banking at selected branches

Meezan bank consumer financing, provides Shariah Compliant financing solutions for individuals. 1. Car Ijarah (Auto Financing) As a step towards Meezan Bank’s mission to provide a one-stop shop for innovative value added Shariah compliant products, Meezan Bank’s Car Ijarah unit provides a car financing, based on the principles of Ijarah and is free of the element of interest. Car Ijarah is Pakistan’s first Interest Free car financing based on the Islamic financing mode of Ijarah (Islamic leasing). This product is ideal for individuals looking for car financing while avoiding an interest-based transaction. Meezan Bank’ Car Ijarah is a car rental agreement, under which the Bank purchases the car and rents it out to the customer for a period of 3 to 5 years, agreed at the time of the contract. Upon completion of the lease period the customer gets ownership of the car against his initial security deposit. Car Ijarah also features Used Vehicles! In addition to our leasing of new cars, Meezan Bank also provides the unique opportunity of leasing second hand, both locally assembled and imported vehicles. This feature is specifically designed as a highly economical option. The Used Car Ijarah facility is made available at a minimum-security deposit as low as 20%. Financing of used cars are subject to a selection criteria. Key Features of Car Ijarah • Low monthly rental • • • • • Rental paid after delivery, not in advanced Fastest processing and delivery Tracker option available Minimum security deposit as low as 10%* All new, used, local, imported and luxury vehicles can be financed

2. EASY HOME (Housing finance)

Easy Home is Pakistan’s first totally Shariah-compliant Home Finance facility! One that is comprehensive, affordable, and totally hassle-free. For at Meezan Bank, we are committed to meeting our customers’ needs, in a truly Shariah-compliant manner coupled with dedicated service excellence. With Easy Home you participate with Meezan Bank in a joint ownership of your property, where the Bank will provide a certain amount of financing (usually up to 80%). You agree to a monthly payment to the bank of which a component is for the use of the home, and another for your equity share. In fact, the total monthly payment is reduced regularly as your share in the property grows. When you have made the full investment, which had been agreed upon, you become the sole owner with a free and clear title to the property. What specifically makes Easy Home Shariah compliant? As a Diminishing Musharakah it conforms to Shariah laws specifically related to financing, ownership and trade. Taking ownership through a partnership and then transferring complete ownership to the consumer instead of simply lending money is the major factor that makes our product Shariah compliant. The nature of the contract is a coownership and not a loan because the transaction is not based on the lending and borrowing of money but on the joint ownership of an asset. Meezan Bank shares in the cost of the asset being purchased, for example in the case of buying a home. In conventional mortgages the interest charged is a mark-up on the money lent. The profit charged by Meezan Bank is the utilization payment for your use of our share throughout the life of the contract. Your payments to Meezan Bank are completely riba-free. Why is the profit margin charged by Meezan Bank correlated to the conventional mortgage market trends? At Meezan Bank, the profit margin is directly correlated to market trends to provide a competitive product to our customers. Shariah allows the use of any conventional market factor as a benchmark to determine the profit rate of a particular product. The mere fact that the applied profit rate of our product is based on similar factors used in determining the applied rate of interest of a mortgage does not render the transaction or the contract invalid from the Shariah perspective, and neither does it make the transaction an interestbearing one. On the other hand, it is the underlying structure of the product that determines its Shariah compliance. Payment Plan Step-up Model The Step-up Payment plan is introduced for customers who intend to avail maximum financing facility with lower installments. The step up model is based on Shariah Compliant structure of Diminishing Musharakah. In this model, the bank’s share s divided into more Musharakah units and in the initial half of the facility tenure, the customer purchases one Musharakah unit from bank every month and in the later half of the facility tenure, the customer purchases two Musharakah units from bank every month.

Thus the monthly installment during initial years is comparatively lower which is easily affordable. This model is a Shariah Compliant Alternative available to the customers who wish to avail maximum financing facility from bank. UMI Model Easy Home is structured under the concept of diminishing Musharakah where Meezan Bank and Customer enter into a Musharakah Agreement whereby both the parties provide their investments to be utilized for the purposes of purchase/construct/renovate the property. The Joint ownership is created in the property between Bank & customer by virtue of the Musharakah agreement. (This is based on the principle of Shirkat ul Milk) Bank’s share is divided into units and is given to the client on rent and Client promises to purchase Bank’s share (units) over the tenure of transaction Client purchases the units every month and will eventually become the owner of the property. Rental amount is adjusted according to the bank’s share (units) remaining in the property. In UMI , the Musharakah unit price remains constant through out the financing period. Buy, Build, Renovate, or Replace! • Buying a Home is Easy & Halal! Choose it and be ready to move in. Meezan Bank will finance up to maximum of 70%(Salaried, SEP, NRP) of the appraised value of your new home or up to a value of Rs. 40 million, and a maximum of 60%(Businessman) up to a value of Rs 5 Million with a financing tenor of up to 20 years. Click here for details • Building a home is Easy & Halal! For that special home you want to build yourself. Meezan Bank provides financing up to 70%(salaried, SEP, and NRP) of the appraised value or Rs. 40 million, and a maximum of 60%(Businessman) up to a value of Rs 5 Million for a tenor of up to 20 years. Click here for details • Renovating your home is Easy & Halal! Making your home even better or just repairing it. Meezan Bank helps with financing up to 30% and a financing tenor of up to 15 years. Click here for details • Replacing your existing Mortgage is Easy & Halal! The wait is over. Now continue to enjoy your home but with the added satisfaction and peace of mind you have always wanted. Meezan Bank will help you switch your existing liability over to us and let you enjoy the benefits of Halal and totally flexible financing. Financing up to Rs. 40 million(Salaried, SEP, NRP) and Rs 5 million(Businessman) and a tenor of up to 20 years. Click here for details

5.1.4 24/7 BANKING
24/7 Banking provides non stop 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. You can stay in touch with your account via the following services 1. Visa Debit Card Want access to your money anytime, anywhere? With a Meezan Visa Debit Card, you have access to the money in your account wherever you are, whenever you want, wherever you see the Visa symbol. The money is deducted from your balance straight away — there is no interest to pay, no bills & no late fees! Using your card is quicker than making a trip to the bank, more convenient than queuing for a cash dispenser and safer than carrying money. Features at a Glance • Use your own money at more than 30 million outlets and 160 countries worldwide. • • • • • • • Use it to buy both big and small items, wherever you see the Visa symbol. Each withdrawal taken directly from your Meezan Bank Linked Account. A safe and convenient alternative to carrying cash. You can call support 24 hours a day, 7 days a week with any queries. Simply call 111-331-331 All shopping transactions on your card are signature based. Simply swipe and sign! Your perfect travel companion Next time you’re planning to go abroad, you can use your Visa debit card for all your purchases and to withdraw cash at ATMs, just as you do at home wherever you see the Visa symbol. • • Convenient - No need to buy foreign currency or travellers’ cheques in advance. Safe - No need to take large amounts of cash with you.

Accepted all over the world - Pay for hotels, sightseeing, shopping and dining out.

2. 24/7 Debit Card (No Longer Issued) 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 works 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.

3. 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

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.

4. 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 10,000, then that machine will only provide the customer PKR 10,000 during that day. Charges of PKR 15 per transaction will be applied when 1Link or MNET ATMs are used for cash with drawl.

5. 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 Current or Savings 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

6. 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 00-92-21-111-331331 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 ATM PIN Reissuance Report loss of Visa Debit Card or cheque(s) Request for new Internet Banking Username / Password.

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

Available at selected branches, Meezan Bank's Special Banking services is part of our mission to focus on customer convenience and service quality and make Islamic Banking the banking of First Choice. Special Banking services include: 1. 8 to 8 Banking (8 am - 8 pm banking)

Meezan Bank is proud to be the first bank in Pakistan to introduce the concept of Eight to Eight banking, giving our customers access to the branch from 8 'o clock in the morning to 8 'o clock at night. This adds a completely new dimension to our banking service and has been designed so as to enable our customers to do banking at their convenience. Customers may visit their respective branch early in the morning before going to work, or can drop by in the evening on their way home and not have to worry about losing valuable office hours. From 8am till 5pm we offer the full range of our banking services. After 5pm and until 8pm our customers are able to carry out the numerous transactions (value next day) which meet most of their daily requirements. Services provided from 8am to 8pm • Acceptance of cash • • • • Acceptance of cheques for collection and clearing Acceptance of transfer instructions Acceptance of Cheque Book, Pay Order and Demand Draft requests Accepting ATM, telephone banking and Internet banking requests

Our 8 to 8 banking service is only a part of Meezan Banks mission to focus on customer convenience and service quality and make Islamic Banking the banking of First Choice. This service is presently being offered at select branches in Karachi, Lahore, Islamabad and Faisalabad and will be offered at some of our other branches very soon. Insha'Allah. 2. Ladies Banking The Bank is the first in the country to introduce 'Ladies Banking' a dedicated banking section only for ladies. This new service provides an exclusive banking area as per the set Shariah principles for our lady customers in a more comfortable environment. The dedicated Customer Services Officer in our ladies only banking area will provide consultancy for a full range of our Halal banking services including, 9am to 5pm Online Banking, Term Certificates, Current & Saving Accounts, Consumer Financing and 24/7 banking services. Services provided at the Ladies Banking Section include: • Special Baking Services: Dedicated Customer Services Officer in our ladies only banking area who provide consultancy for all Halal banking needs. • • Consumer Financing: Car Ijarah and Easy Home Retail Banking: Current & Savings Accounts, Foreign Currency Accounts, Term Deposits

24/7 Banking Services: ATM/Debit Card, Call Center, Internet Banking

Our ladies banking service is a part of Meezan Banks mission to focus on customer convenience and service quality and make Islamic Banking the banking of First Choice. This service is presently being offered at Barkat-e-Hyderi branch in Karachi, and will be offered at some of our other branches very soon. Insha'Allah.

Welcome to Meezan Bank’s Non-Resident Pakistani Banking! Where you are important and your needs exclusive. Our Remittance services are simple and reliable. They are available at your doorstep through a wide and efficient networfk of corresponding banks worldwide. Only leading global financial institutions form this network of correspondent banks. Advantages of Meezan Home Remittance: • Quick Remittance in major currencies i.e USD, GBP, EUR, JPY, CHF, SGD, AUD • • • Extensive branch network in all major cities of Pakistan Instant online transfer within our branch network without any charges Free Internet banking facility

1. Corporate Banking
We are dedicated to providing you Shariah-Compliant financing. With our extensive and dynamic product portfolio, we are continuously working not only to improve and strengthen our customer relationships but to further provide new and better products and services to our customers. At present, Corporate Banking has a large number of multinational and local clients representing various sectors of the economy. Client relationships are handled by dedicated Relationship Managers and fully supported by our Branch staff to provide high quality service at competitive and market driven pricing. We could extend financing to cater to your business needs in the following areas: • • • Working Capital Finance Project Financing for existing Corporates having expansion or BMR requirements Islamic Export Refinance Facility (Part I and Part II)

Trade Related Services

Corporate Banking Customers You are a Corporate Banking Customer if • Your annual sales turnover is Rs. 800 million or more • • You need funded and non-funded lines of over Rs. 150 million You have a successful business trade record for a minumum period of 3 years, backed by audited financials

2. Commercial Banking
As the first and largest Islamic Bank in Pakistan, we recognize the significance of the Commercial Banking sector in the country and the diverse business needs. Catering to the need for Shariah Compliant financial solutions in this sector, our evergrowing commercial banking clientele covers medium-size industries, traders, importers, exporters and distributors. The range of product is: • Working Capital Finance • • • Project Financing, Expansion or BMR Requirments Islamic Export Refinance Facility Trade Related Services

Commercial Banking Customers You are a Commercial Banking Customer if: • Your annual sales turnover is between Rs. 300 million to Rs. 800 million • You need funded and non-funded lines of upton Rs. 150 million

3. SME Banking
As the first and largest Islamic Bank in Pakistan, we are proud to be providing financial solutions for the needs of the Small and Medium Enterprise Sector (SME) in the country. SMEs are categorized in Pakistan as Trading and Service concerns employing maximum

50 staff and having total assets (excluding land and building) of Rs. 50 million (max) and the Manufacturing concerns employing maximum 250 staff and having total assets (excluding land and building) of Rs.100 Million (max). The growth in the SME sector in Pakistan in recent years has been a major contributor to the growth in the national economy. Meezan Bank is committed towards developing tailored financial solutions and expanding our footprint in the SME sector. The ranges of products are: • • • • Working Capital Finance Project Financing, Expansion or BMR Requirments Islamic Export Refinance Facility Trade Related Services

Small & Medium Enterprise (SME) You are a SME Banking Customer if: • Your annual sales turnover is upto Rs. 300 million • You need funded and non-funded lines of upto Rs. 75 million

Realizing the increasingly diverse needs of our customers for advisory and structured finance transactions, a specialized department focusing on Investment Banking is funtioning at Meezan Bank. The Investment Banking department provides unique structuring by using complex Shariah structures for transactions so as to meet customer's commercial needs. Meezan Bank as torchbearer of Islamic Banking has been making significant contribution in the Investment Banking industry by playing leading roles in business transactions. Key Services • Syndications & Structured Finance • • Project Financing Financial Advisory Services

Al Meezan Investment Management Limited (Al Meezan), the asset management and investment advisory arm of Meezan Bank Limited, specializes in the development and management of Shariah compliant investment solutions. Al Meezan Investments has one of the longest and the most successful track record of managing mutual funds in the private sector, spanning over fourteen years. Al Meezan is presently managing eight funds and an administrative plan i.e. Al Meezan Mutual Fund Limited (AMMF) - a closed end equity fund; Meezan Islamic Fund (MIF) an open-end equity fund; Meezan Balanced Fund (MBF) - a closed end balanced scheme; Meezan Islamic Income Fund (MIIF) - Pakistan’s first Shariah compliant open end income fund - Meezan Tahaffuz Pension Fund (MTPF) - a Voluntary Pension Scheme, Meezan Capital Protected Fund-I (MCPF-I) - Pakistan’s first Shariah compliant open end capital protected fund, Meezan Mahana Kharch Account (MMKA) - an administrative plan of MIIF to provide monthly income, Meezan Cash Fund (MCF) - Pakistan’s first Shariah compliant open end money market fund and Meezan Sovereign Fund (MSF) Pakistan’s first Shariah compliant open end government securities fund. The total size of these eight funds under management as at March 31, 2010 is over PKR 18.2 billion as compared to PKR 13.5 billion at the corresponding date last year. The increasing size of assets under management manifests the ability of the professional fund management team to consistently out-perform the peers and consequently build upon the investor confidence. Al Meezan is ranked among the best performing asset management companies in Pakistan. The fund wise break up of net assets as at March 31, 2010 is as under:

NET ASSETS FUND Meezan Cash Fund Meezan Islamic Fund Meezan Islamic Income Fund Al Meezan Mutual Fund PKR (Millions) March 31, 2010 4,633 4,436 3,738 1,521

Meezan Balanced Fund Meezan Capital Protected Fund-I Meezan Sovereign Fund Meezan Tahaffuz Pension Fund

1,319 633 536 246

Al Meezan has also achieved Management Quality Rating “AM2”, assigned by JCR-VIS. AM2 is currently the highest Management Quality Rating assigned by JCR-VIS to any Asset Management Company. This rating denotes high management quality rating with a stable outlook. Al Meezan’s funds carrying equity exposures including Meezan Islamic Fund and Al Meezan Mutual Fund have befen amongst the top performing funds in their respective categories for the calendar year 2009. The Shariah Advisor of Meezan Bank Limited, also being the Shariah Advisor of Al Meezan, supervises the operations in order to ensure Shariah compliance of the funds. In addition to the service quality, Shariah compliance and impressive performance in terms of returns to investors, Al Meezan also complies with the global best practices in asset management and has voluntarily adopted “Asset Manager Code of Professional Conduct” from CFA Institute, USA. Hence it has the distinction of being the first asset management company in Pakistan to comply with the global best practices in asset management. Units of all open end funds are available at the offices of Al Meezan and all branches of Meezan Bank Limited (MBL) across Pakistan. For the convenience of investors, Al Meezan has placed dedicated investment officers at the selected branches of MBL. These officers provide guidance and assist the investors in meeting their investment objectives.

Meezan Bank has extensive experience and expertise in developing and advising on the creation of Shariah-compliant financial products and services. The main objective of Meezan Bank’s Islamic Financial Advisory function is to assist Financial Institutions develop Islamic banking alternatives by sharing our expertise, research and success stories. This function works under the guidance of Shariah Supervisory Board which comprises of renowned Islamic Scholars from both Pakistan and abroad. This function primarily focuses on the following: • • • • • Product Development and Product Refinement Islamic Capital Market Advisory Services Establishing and Managing Islamic Market Indices Advisory Services to Start-up Firms Shariah-Compliant Corporate Restructuring

• •

Internal and External Training Sessions Shariah Audit, Compliance & Strengthening Internal Controls

Shar’iah Screening Criteria For any stock to be Shar’iah compliant, it must meet all six key criteria as below. 1. 2. 3. 4. 5. 6. Business of the Investee Company Interest Bearing Debt to Total Assets Non-Compliant Investments to Total Assets Non-complaint Income to Total revenue Illiquid Assets to Total Assets Net Liquid Assets/Share Vs Market Price/Share

Chapter – 6


Meezan Bank being a quality organization strives to provide quality to all its stakeholders, customers, employees and environment. In Pakistan, it is operating in a very volatile economic and political environment. I have summarized its major strengths, weaknesses, opportunities and threats in the following paragraphs.

• MBL has this privilege to be the first in the Islamic Banking sector which gives MBL a competitive edge over all other banks and being the pioneer of this industry MBL is enjoying major share of it. The largest Islamic Bank in Pakistan with a network of over 201 branches in 54 cities. 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. Being an Islamic bank, MBL has a wide national network. As an emerging markets bank, it has branches in all the major cities of Pakistan with the facility of online banking, it is very easy for its customers to transact all over the country. Online banking service means that a customer can withdraw and deposit his money at any branch in the country. Where this service is not present, cheque has to be presented only in that branch on which they are drawn. But with this facility, a person has access to its funds at any branch of the bank. That would mean that any person who has an account with the bank, has an account in 24 branches of it. It provides a lot of comfort and convenience to the customers. There are many value added features in the products offered by the bank. ATM cards are provided with every account. Other features are present in the various products. The priority customers enjoy a much-pampered status at the bank.

• •

The employees at the bank provide impeccable customer service to their customers. For them “the customer is the king’. Customers are treated with great respect and honored to the utmost degree. The working environment of the bank is very friendly and cooperative. There is no bossiness in the higher management. The upper management consults its staff in making decisions and provides them independence in their job areas. For the objective is performance and not conformance with the boss.

• Till the last year, MBL had a totally different perspective. The management was of the view that the customer should come to them and they don’t need to go to the customer. But in this era of mass marketing and advertising, it is not possible to stay in competition without these took. The bank has now changed its perception arid has started an effective marketing and advertising strategy. But the previous gaps are still there and there is lack of awareness in the people about the bank and its products. The bank needs to improve on its marketing and advertising areas. It was observed in the bank that the degree of satisfaction of the employees was quite low. First of all, the pays are lower those offered in other banks. Secondly, the employees are given targets that are too difficult to achieve. For example, the targets given to the personnel in sales and services department are higher than any other bank in the country, be it a local bank or a foreign bank. This makes the job too stressful and tensed It is good to keep the people under a continuous move, but to overstress them can be harmful to them and as well as to the organization. Due to the dissatisfaction of staff, there is high turnover among them. People who find other alternatives do not stay with the bank. Therefore, the bank incurs loss on their training and development. The bank should provide incentives to its employees so that they show more loyalty. For example, there is no commission provided to the sales personnel which otherwise is a general rule all over the world. There are no sorts of training programmes for the employees. The employees who are newly appointed are straight away placed at their positions with no prior orientation. This creates problem for new personnel because they find difficult to understand the environment and culture of the organization. The decision-making is carried out the upper management level and the subordinates are not included in this process. This creates a sense of insecurity in the lower managers and that is why there is a lack of loyalty among the personnel.

Although the upper management is very friendly with the lower managers but that is only to the extent of cordial relationships.

• • • • • • House financing sector can be targeted to maximize the profit. Growing demand of Islamic financial product and services. 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. Increase branch network within the country.

• Right now there are a few banks that are providing islamic banking services in addition to the Meezan Bank. These banks include Bank Islami, Al-Barkah Bank and some branches of Bank Alfalah which are dedicated for islamic banking services. That’s why we can say that although there is no intense threat for the Meezan Bank in the near future but it is not difficult to say that more banks may enter in this field as the awareness of islamic banking is increasing among the public. Therefore the Meezan Bank should not be contented to its present market share but should strive for providing better and better and modern services. Due to the increase in the number of conventional commercial banks, there is an increase in competition. Also there is a lot of aggressive marketing by the competitor banks. This is also a threat for MBL.

Reviewing this SWOT analysis from time to time would help evaluate the bank's position. It would help the management in comparing their strengths of the past with those of the present and to what extent the management has been able to overcome the weaknesses.

Chapter – 7


Despite the difficult economic conditions, Meezan Bank has achieved, Alhamdolillah, excellent results. Several historic milestones have been achieved in 2009:







Chapter – 8



I spent six weeks of my internship in MBL main sadder Hyderabad Branch. During these six weeks, I felt myself to be a part of bank. Even, this was my first experience of working in a bank, but I learned a lot from this experience. Based on my experience & observation regarding the operations and policies of Meezan Bank, I have tried to show some problems and recommendations for further improvement. 1. 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. 2. The year 2010 is expected to offer increased competition in the secured assets business as more Islamic banks are in the market. 3. Lack of awareness of Islamic banking in general public. 4. The employees usually face work over loaded problems. 5. Lack of job training program for employees. 6. Branches increases but business of Meezan bank may not increase with same speed. 7. Financial information of Meezan bank are not clearly disclose on any media. 8. Work activities among employees were not distributed equally. Some of the employees are overburdened while some sections are overstaffed. 9. Lack of job rotation that is one of the ways to increase employee job skills. 10. Meezan bank does not provide job security to the employees. Mostly are hired on contractual basis 11. Congested waiting room for customers. 12. Lack of market (competitors) research. 13. Lack of team work. 14. Lack of new and attractive schemes. 15. Non effective marketing strategy.


1. First of all, I would I like to suggest that the bank must pursue a very aggressive marketing and advertising strategy so that it can create awareness in the general public about its Islamic products and services 2. Secondly, there is a need for creating satisfaction among employees. They do not feel any attachment to the organization. There is a requirement for building up their loyalties so that the bank can curtail the dissatisfaction and turnover among employees. 3. The personnel in the bank should not be overstressed with workload. The workload is of a destructive level. At that level of load the employees loose all the comfort in their work and remain tense and frustrated. 4. Job training is a very important aspect that MBL is lacking in. New employees are recruited directly without any prior training or orientation. The result is that they do not understand the organizational structure and culture and become frustrated in their start. This reduces their productivity and efficiency. If such a training programmed is started, then the new employees would feel more comfortable and adapt easily to the environment. 5. Meezan Bank Limited should continue to expand its business, by increasing its deposit portfolio through aggressive market penetration strategies. 6. Meezan Bank Limited needs to improve its website. More information relating to financial performance of the bank should be available on the website. 7. Management should distribute work equally among different employees. 8. Related jobs should be assigned to the employees so that they can work more efficiently. 9. It is suggested that the employees signed jobs for specific period and than they should shifted to other department so that they gain knowledge of other jobs. 10. Increase the Size of waiting room. 11. RIBA FREE COMMERCIAL BANKING to be set up in all countries of the world/ Muslims & non-Muslims. This will greatly facilitate international export import trade without the fear of being involved in any riba dealing.

12. More people must be employed on permanent basis/ providing job security and satisfaction. 13. MBL should become very specific about its competitors, so that it can understand whose its competitor is in the first degree and who is in the second degree A  research cell should continuously try to gather information about the present action so its competitors and expected future actions. So in this way more effective strategies can be formulated. 14. The worker should be given sense of teamwork and the managers should be trained to manage the team as a good leader 15. New schemes should be introduced and maximum privileges should be given to customer, so that to win money market. 16. New marketing strategies should be developed to attract new customers.


Annual Report of Meezan Bank Limited 2009.

Practice and Law of Banking in Pakistan by Dr ASRAR H SIDDIQUI.

    

Money and Banking & Finance by M. SAEED NASIR.


DAWN Business Recorder

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