INTERNSHIP REPORT

JULY 19TH, 2011 SEPTEMBER 18TH, 2011

SUBMITTED BY :

SIDRHA SHAIKH

SUBMITTED TO :

MR. RIAZ AHMED AKBANI

IQRA UNIVERSITY, MAIN CAMPUS, DEFENCE VIEW, KARACHI

ACKNOWLEDGEMENT
After Allah Almighty, I am thankful to the Branch Manager Mr. Riaz Ahmed Akbani who gave me a chance to do this internship and to understand the dynamics of retail banking, as it was not only a learning experience but a good and challenging exercise to prove my potential and building extensive knowledge about retail banking. I am also grateful to Operation Manager Mrs. Seema Arshad for assigning this project, which will further help me in evaluating many interrelated dimensions of banking and professional implementation on any other area of banking sector. Finally I bestow my thanks to Mr. Raheel, Mr. Faraz, Mr. Adnan, Mr. Sikander and all employees of Meezan Bank Hussainabad Branch who has directly or indirectly supported me with their assistance and guidance to compose this report and accomplish broader vision to visualize things in each department of branch operations.

Thank You

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WHAT IS BANK?
A bank is a financial institution, which deals with money and credit. It accepts deposits from individuals, firm and companies at a lower rate of interest and gives at a higher rate of interest to those who need them. The difference between the terms at which it borrows and those at which it lends form the source of its profit. A bank, thus, is a profit earning institution

ISLAMIC BANKIBNG
Islamic banking has been defined as banking in consonance with the ethos and value system of Islam and governed by the principles laid down by Islamic Shariah. It is expected not only to avoid interest based transactions, prohibited in Islamic Shariah, but also to avoid unethical practices actively in achieving the goals and objectives of an Islamic economy. Islamic banking system is based on risk sharing, owning and handling of physical goods, involvement in the process of trading, leasing and construction contracts using various Islamic modes o finance. As such, Islamic banks deal with the asset management for the purpose of income generation. The successful launching and operation of Islamic banks has established the fact that banking without interest is feasible. Secondly, the launching of Islamic banks has shown the need for an Islamic Money Market. Thirdly, Islamic banks have brought together many depositors and entrepreneurs who had long avoided interest-based banking on grounds of religious injunctions. Future depends upon the kind of innovation to enhance liquidity, develop secondary money and capital markets and introduce public finance instruments. Demand for commercial banks loans is globally declining for various reasons. The conventional banks are looking forward to reforms that could allow them to expand the span and mode of their activities and some of their demands if accepted may open new horizons for the Islamic banking too. As a part of Twenty First Century vision for financial reform, regulators can be persuaded to grant this flexibility. They may envisage this flexibility, not only for Islamic banks but also for the sake of enhancing competitive environment in the financial market. T he regulators, of course, will have to develop innovative safeguards to ensure that banking activities continue to operate smoothly and depositors or small business interests are not unduly put at stake by the reforms.

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MEEZAN BANK LIMITED

VISION
Establish Islamic banking as banking of first choice to facilitate the implementation of an equitable economic system, providing a strong foundation for establishing a fair and just society for mankind.

MISSION
To be a premier Islamic bank, offering a one-stop shop for innovative value-added products and services to our customers within the bounds of Shariah, while optimizing the stakeholders value through an organizational culture based on learning, fairness, respect for individual enterprise and performance.

SERVICE MISSION

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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.

ISLAMIC VS CONVENTIONAL BANKS:

Conventional Banks 1. The functions and operating modes of conventional banks are based on fully manmade principles. Islamic Banks 1. The functions and operating modes of Islamic banks are based on the principles of Islamic Shariah.

2. The investor is assured of a predetermined rate of interest.

2. In contrast, it promotes risk sharing between provider of capital (investor) and the user of funds (entrepreneur).

3. It aims at maximizing profit without any restriction.

3. It also aims at maximizing profit but subject to Shariah restrictions.

4. It does not deal with Zakat.

4. In the modern Islamic banking system, it has become one of the service-oriented functions of the Islamic banks to be a Zakat Collection Centre and they also pay out their Zakat.

5. Lending money and getting it back with compounding interest is the fundamental function of the conventional banks.

5. Participation in partnership business is the fundamental function of the Islamic banks. So we have to understand our customers business very well.

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6. It can charge additional money (penalty and compounded interest) in case of defaulters.

6. The Islamic banks have no provision to charge any extra money from the defaulters. Only small amount of compensation and these proceeds is given to charity. Rebates are give for early settlement at the Banks discretion.

7. Very often it results in the banks own interest becoming prominent. It makes no effort to ensure growth with equity.

7. It gives due importance to the public interest. Its ultimate aim is to ensure growth with equity.

8. For interest-based commercial banks, borrowing from the money market is relatively easier.

8. For the Islamic banks, it must be based on a Shariah approved underlying transaction.

9. Since income from the advances is fixed, it gives little importance to developing expertise in project appraisal and evaluations.

9. Since it shares profit and loss, the Islamic banks pay greater attention to developing project appraisal and evaluations.

10. The conventional banks give greater emphasis on credit-worthiness of the clients.

10. The Islamic banks, on the other hand, give greater emphasis on the viability of the projects.

11. The status of a conventional bank, in relation to its clients, is that of creditor and debtors.

11. The status of Islamic bank in relation to its clients is that of partners, investors and trader, buyer and seller.

12. A conventional bank has to guarantee all its deposits.

12. Islamic bank can only guarantee deposits for deposit account, which is based on the principle of al-wadiah, thus the depositors are guaranteed repayment
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IQRA UNIVERSITY, MAIN CAMPUS, DEFENCE VIEW, KARACHI

of their funds, however if the account is based on the mudarabah concept, client have to share in a loss position..

MEEZAN BANK The Premier Islamic Bank

Meezan Bank began operations as Al Meezan Investment Bank, a joint-venture between Pak Kuwait Investment Company and Islamic Investment of the Gulf (the former Investment Banking arm of the Dar ul Maal Islami Group) in October 1997. In 2002, the Bank acquired the Pakistan operations of Societe Generale and concurrently converted itself into a full-fledged scheduled Islamic commercial bank. At that time, the Bank was issued the first-ever Islamic commercial banking license by the State Bank of Pakistan and renamed Meezan Bank. Meezan Bank operates strictly under the principles of Islamic Shariah and has an in-house Shariah Advisor and a Shariah Supervisory Board comprising of internationally renowned shariah scholars. The Management team comprises of highly qualified and experienced professionals sharing a strong commitment to Islamic finance and customer service. Meezan Bank has a paid-up capital of over Rs. 6.98 billion and shareholders equity of over Rs.10.7 billion. The Bank is sponsored by leading financial institutions from Pakistan and the Middle East that include Noor Financial Investment Co., Kuwait, Pakistan Kuwait Investment Company (Pvt.) Limited and Islamic Development Bank, Jeddah. Meezan Bank is the first and largest Islamic bank in Pakistan with a branch network of over 230 branches in over 63 cities. It had a deposit figure of Rs. 131 billion and Import/Export business of Rs. 143 billion at the end of 2010. Chief Executive:

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Mr. Irfan Siddiqui President & Chief Executive Officer Meezan Bank Limite Mr. Irfan Siddiqui is the founding President & CEO of Meezan Bank Ltd. He initiated the formation of Al-Meezan Investment Bank in 1997, which was converted into a full fledged scheduled Islamic Commercial Bank in May 2002. This was the first ever license to be given for Islamic Commercial Banking in Pakistan. Meezan Bank is now the largest Islamic Commercial Bank in Pakistan. Mr. Siddiqui is a Chartered Accountant from England & Wales and has extensive financial sector experience with Abu Dhabi Investment Authority, Abu Dhabi Investment Company, Kuwait Investment Authority and Pakistan Kuwait Investment Company. Meezan Bank has now clearly established itself as the largest Islamic Bank in Pakistan with a large network of branches in all major cities of 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 first five years of its operation as an Islamic commercial bank (from 2002 to 2007), offering universal banking services to customers, Meezan Bank has been one of the fastest growing banks in the history of the banking sector. Average growth in deposits has been 60% per annum during this period while the branch network grew from 4 to 100. 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, that places the Bank at the top of the industry. The Bank has been assigned a long-term entity rating of A+ and a short-term entity rating of A-1 The Bank has an internationally renowned, very high caliber and pro-active Shariah Supervisory Board Chaired by Justice (Retd.) Maulana Muhammad Taqi Usmani, an internationally renowned figure in the field of Shariah, particularly Islamic Finance. The
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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 (otherwise referred to as the Product Development and who strictly monitors the regular transactions of the Bank. Meezan Bank has built a strong Information Technology and customer knowledgebased focus that continues to use state of the art technology and systems. 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 nationwide.

History:
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 Banks position as the premier Islamic Bank of he country. Al Meezan Investment Management Limited (AMIM), the asset management arm of Meezan Bank, introduces Meezan Islamic Fund (MIF), the countrys first open-end 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.
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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 continuesits 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 select branches in Karachi.

2007 Meezan Bank creates a significant milestone in the history of Islamic Banking by opening its 100th branch in the city of Karachi. With 100 branches in 31 cities, the Bank is clearly positioned as the leading Islamic Bank in Pakistan. Two new dedicated Islamic Banks start operations in Pakistan, namely Emirates Islamic Bank and Dawood Islamic Bank.

2008 Meezan Bank achieves over 125 branches across Pakistan. Al Meezan Investments and Karachi Stock Exchange jointly launch Pakistans First Co-Branded Islamic Index KSE Meezan Index (KMI). The Bank joins IFC Global Trade Finance Program boosting access to finance to entrepreneurs also launched new financing facility Meezan Tijarah. Meezan Bank & Al Meezan Investments jointly launch Meezan Capital Protected Fund the bank launched Meezan SMS Alerts Service for all its customers nationwide. Meezan Bank and Pak Oman Asset Management Sign Agreement.

2009 Meezan Bank announces robust earnings growth. The Bank restores Banking Operations in Mingora, Swat also launched Meezan Visa Debit Card, Hajj and Umrah product Meezan Labbaik, provided Utility Bills Payment Facility to Customers Through its ATMs, signed Trade Accord with Asian Development Bank. The banks credit rating maintained went Live
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on Temenos T24 Core Banking Application, issued Shariah Compliance Certificate to USL for its Diyanat installment sale facility.

2010 Meezan bank inaugurates its 204 th branch in Pakistan, Launched Indus Motors with Toyota Cars Financing, contributed towards rehabilitation of Flood affected people. Meezan Bank extends cooperation and assistance to Afzaal Memorial Thalassemia Foundation, launched "Meezan Business Plus", a Mudarabah based Business Account, facilitated Umrah Pilgrims with Meezan Labbaik , established 150 ATMs across Pakistan.

LATEST CORPORATE NEWS 2011

Meezan Bank establishes 230 branches in 63 cities across Pakistan 28-Jul-2011 Meezan Bank and Al Meezan Investment Management launch Second Shariah Compliant Capital Protected Fund MCPF-II 28-Jun-2011 Alliance between Meezan Bank and Western Union for Home Remittance Payments in Pakistan 30-May-2011 Meezan Bank launches Laptop Financing 26-Apr-2011

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SWOT ANALYSIS
Strengths:
Meezan is the first ever private bank that runs their operations according to Islamic rules. It is the first Islamic bank which has more than 230 branches in all big cities of Pakistan Well-built shareholding Shariah-complaint and interest free banking. Quality customer services like ATM, telephone, online and Internet banking. Board of scholars of Shariah. .

Weaknesses:
Lacks Islamic mode of exchange using KIBOR. The main weakness of Meezan bank is that they have lack of advertisement. Excess documents requirement so it is not very friendly from customers perspective. Centralized processing is very slow. Less training programs to enhance employee's management and operational skills. Market Positioning is not clear and its products are confusing. Audit is not good enough to make control over the system.

Opportunities:
Market has potential but not yet exploited. Adherents of Islam want transaction of their money without interest. Islamic banking sector is expanding and growing with accolade performance.
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More and more people are coming towards Islamic Banking System. Introduction of innovative products.

Threats:
The main threat for them is the entry of new competitors in the market so they must build their strong reputation. If SBP announced high interest rate then they will suffer from this announcement. Functioning of banks without interest rate and Operations of Islamic banking system in current prevailing system is subject of study and matter of great debate. Lacking proper sales and marketing efforts Conventional banks are providing easy and customized customer financing.

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PRODUCTS & SERVICES - PERSONAL BANKING

Meezan Bank provides a range of products and services for Personal Banking needs, the products offered are as follows;

1. DEPOSIT ACCOUNTS
Local Currency Accounts

Rupee Current Account - A Convenient, Secure and Stable Deposit Account Rupee Savings Account - Ensuring Truly Halal Savings with Comprehensive Returns Meezan Bachat Account - The convenience of a Saving Account with Halal Profit Labbaik Saving Aasaan - A specialized Saving Account designed to save for Umrah & Hajj Business Plus Account - Serving you the perfect blend of convenience and flexibility Foreign Currency Accounts

Dollar Saving Account - A Truly Halal Dollar Saving Account Euro Saving Account - A Truly Halal Euro Saving Account Pound Saving Account - A Truly Halal Pound Saving Account

2. TERM CERTIFICATES
Meezan Bank provides a complete range of short term and long term deposit certificates with the flexibility of monthly, quarterly, semi-annual and annual returns. Certificate of Islamic Investment - Offering a range of investment from 3months to 5 years Meezan Amdan Certificate - A long-term investment with a monthly high expected return Monthly Mudarabah Certificate - A short-term investment certificate designed to provide regular monthly returns
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3. CONSUMER FINANCING
Car Ijarah - Car financing based on the principles of Ijarah

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

Easy Home - A comprehensive, affordable, and totally hassle-free house financing facility

Easy Home works on a Diminishing Musharakah basis. With Easy Home you participate with Meezan Bank in joint ownership of your property, where the Bank will provide a certain amount of financing. You agree to a monthly payment to the bank of which one component is for 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.

Laptop Ease - Monthly installment as low as Rs.2,750/-

Meezan Bank provides Shariah Compliant Laptop financing facility for individuals as well as
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Corporate groups.

Special Features

Easy Installment options for financing period for 3 to 24 months. 2 years warranty with parts provided by vendor. Absolutely Free Takaful Coverage. All laptops acquired through Meezan Laptop Ease will be covered by Takaful (Islamic Insurance) before delivery to the customers Laptop model offerings will vary from time to time in consistence with the latest & upgraded features and market demand.

4. SERVICES
Meezan Bank is dedicated in its effort to provide a quality banking experience to our customers via a range of unique Banking Services Labbaik Travel Aasaan - A specialized service to assist you in making arrangements for Umrah & Hajj Online Banking - Conduct banking transactions from any of Meezan bank's branches nationwide 8 to 8 Banking - Giving our customers access to our branches from 8am to 8pm Ladies Banking - An exclusive banking area to provide a comfortable enviornment to female customers Home Remittance - Remittance services via a wide network of corresponding banks worldwide. Western Union Money Transfer - Convenient money remittance within minutes to Pakistan.

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5. ELECTRONIC BANKING
Visa Debit Card - Access your money anytime - anywhere! Internet Banking - Global access to your account 24 hours a day, 7 days a week ATM Network - A wide network of ATMs located at branches and at offsite locations SMS Alerts - Receive alerts on your account transactions 24/7 Call Center - Access a wide range of Tele-banking and personalized banking services

6. ASSET MANAGEMENT
Al Meezan Investment Management Limited (Al Meezan), the asset management and investment advisory arm of Meezan Bank, specializes exclusively in the development and management of Shariah compliant investment products. Al Meezan has one of the longest and the most successful track record of managing mutual funds in the private sector, spanning over fifteen years.Al Meezan is presently managing the following funds:

Open End Funds

Meezan Islamic Fund (MIF) - open end equity fund Meezan Islamic Income Fund (MIIF) - open end income fund Meezan Cash Fund (MCF) - open end money market fund securities fund Meezan Capital Protected Fund-I (MCPF-I) open end capital protected fund

Pension Funds

Meezan Tahaffuz Pension Fund (MTPF)- Voluntary Pension Scheme

Closed End Funds

Al Meezan Mutual Fund Limited (AMMF)- closed end equity fund Meezan Balanced Fund (MBF)- closed end balanced scheme
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PRODUCT & SERVICES - BUSINESS BANKING

Meezan Banks Business Banking is geared towards providing comprehensive and innovative financial solutions through a diverse product offering. Aimed at nurturing and developing long-term relationships with our clients we take great care in understanding each clients unique requirement and accordingly provide Shariah-compliant solutions At present we cater to a large number of multinational and local clients representing various sectors of the economy.

1. CORPORATE BANKING - Financial Solutions for Corporate, Commercial and

SMEs.

2. INVESTMENT BANKING - Consultation on investments and arranging finance for

corporate. The key services provided by investment banks are as follows: Syndications & Structured Finance

MBLs Investment Banking department offers uniquely structured transactions for its customers based on various modes of Islamic finance including Ijarah, Diminishing Musharakah and Istisna. Project Financing

Project financing involves financing of long-term infrastructure and industrial projects. These are non-recourse or limited recourse financings where project debt and equity used to finance the project are paid back from the cash flows generated by the project. Meezan Banks Investment Banking department has a proven track record of successfully executing numerous Project Finance transactions despite its recent entry in the financial market. Meezan also has the honour of being the pioneer in successfully executing the first ever project financing transaction in the Islamic banking sector of the country. Advisory Services

The Investment Banking department at Meezan Bank has recently set up a team to handle its Corporate Advisory business. The department is currently strengthening its existing
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expertise of providing Advisory Services by employing professionals to help the bank customers decide the best financial approach for their businesses. KEY TRANSACTIONS Meezan Bank as torch-bearer of Islamic Banking in Pakistan has been making significant contributions in the Investment Banking industry by playing leading roles in business transactions.
2010 August 2010 Ufone - Pakistan Telecommunication Corporation Limited Syndicated Musharaka PKR 1,000 million Lead Advisor & Arranger To finance its network expansion

2009 Libery Power Tech Limited Febraury 2009 Liberty Power Tech Limited

Rated Privately Placed Sukook Issue PKR 12,650 million Lead Arranger Shariah Structuring Advisor October 2009

Pakistan International Airlines (PIA) SLR eligible Sukuk Issue PKR 6,000 million Lead Advisor & Arranger 19 IQRA UNIVERSITY, MAIN CAMPUS, DEFENCE VIEW, KARACHI

To re-finance PIA's existing nonfleet local & foreign currency debt

December 2009 Amreli Steels Limited Sukuk Issue PKR 880 million Lead Advisor & Arranger To finance permanent working capital 2007 Attock Power Gen Limited September 2007 Attock Power Gen Limited Syndicated Finance Facility PKR 7,800 million Co-Arranger Shariah Structuring Advisor September 2007 Engro Chemicals Limited Privately Placed Sukook Issue PKR 3,000 million Joint Lead Advisor & Arranger September 2007 Dawood Hercules Chemicals Limited Privately Placed Sukook Issue PKR 6,500 million Lead Advisor & Arranger Shariah Structuring Advisor

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3. DEPOSIT ACCOUNTS
Deposit Accounts for Business Banking

Business Plus Account - Serving you the perfect blend of convenience and flexibility Karobari Munafa Account - Specially tailored for Corporate entities Islamic Institution Deposit Account - A unique Deposit Account for Islamic Financial Institutions (IFIs) Rupee Current Account - A Convenient, Secure and Stable Deposit Account Rupee Savings Account - Ensuring Truly Halal Savings with Comprehensive Returns Meezan Bachat Account - The convenience of a Saving Account with Halal Profit Labbaik Saving Aasaan - A specialized Saving Account designed to save for Umrah & Hajj Dollar Saving Account - A Truly Halal Dollar Saving Account Euro Saving Account - A Truly Halal Euro Saving Account Pound Saving Account - A Truly Halal Pound Saving Account

4.TERM CERTIFICATES
Specialized Long and Short term certificates for businesses Meezan Providence Certificate - An investment certificate for businesses to invest Provident, Pension and Gratuity Funds Certificate of Islamic Investment - Offering a range of investment tenures from 3months to 5 years Meezan Amdan Certificate - A long-term investment with a monthly high expected return
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Monthly Mudarabah Certificate - A short-term investment certificate designed to provide regular monthly returns Dollar Mudarabah Certificate - An investment certificate to invest US Dollars and earn semiannual or profit at maturity Asset Management - Investments via Al-Meezan Investments

5. TREASURY - Providing domestic and international Treasury-frelated operations. 6. FINANCIAL INSTITUTIONS - Focused on building and maintaining
relationships within the Financial sector

International Trade Services

Financial Institutions, a part of the Treasury, primarily focuses on building and maintaining relationships within the Financial sector. Relations range from authenticated communication links by way of SWIFT RMA to Trade, Treasury and account maintenance in different currencies worldwide. With over 258 banks in 80 countries, our 600 globally located correspondents provide all trade services, seeking to add value and service to our branches and functional units. Services include advising, confirmation, discounting of letter of credits, reimbursement undertakings and standby LCs and guarantees. Our network of correspondent banks comprises of leading financial institutions around the globe. The services provided by our correspondent banks have been classified in terms of Remittance & Payments (R/P), Advising (Adv) & Confirmation (Conf).

"Issuing Bank" member of International Finance Corporation (IFC) Global Trade Finance Programme (GTFP) Meezan Bank, the first and the largest Islamic bank in Pakistan, joined the IFC (International Finance corporation) Global Trade Finance Program as an issuing bank in
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July 2008, boosting access to trade finance for entrepreneurs and businesses in Pakistan.

"Issuing Bank" member of ADB Trade Finance Facilitation Programme Meezan Bank and Asian Development Bank (ADB) signed an agreement on May 15, 2009 in order to facilitate the opening of Letters of Credits under ADBs Trade Finance Facilitation Program (TFFP). TFFP is the financing facility for banks operating in Pakistan enabling them to open Letters of Credit (LCs) in areas where Pakistani credit line is not being accepted. Under the agreement, the ADB will indirectly confirm Meezan Banks letters of credit. ADB will effectively act as a guarantor for import L/Cs established by Pakistani businessmen through Meezan Bank and the facility will provide much needed support to Pakistani importers in these challenging times for the global economy.

6. ISLAMIC ADVISORY SERVICES

Assisting the development of Islamic Financial Institutions & Corporations

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CREDIT RATING
JCR-VIS, the Banks Credit Rating Agency has maintained Banks medium to longterm rating from at AA- (Double A Minus) with Stable Outlook and upgraded short-term rating from A-1 (A-One) to A-1+ (A-One Plus). Double AA rating assigned by JCR VIS denotes high credit quality, strong protection factors and modest risk but may vary from time to time because of economic conditions. Whereas short term rating A1+ denotes high certainty of timely payments, excellent liquidity factors supported by good fundamental protection factors and minor risk factors. The following entity rating of the bank has issued on June 1, 2011 by the Banks credit rating agency JCR-VIS Credit Rating Company Ltd: Category Medium to Long-term Entity Rating Short-term Entity Rating Outlook Latest AA- (Double A Minus) A-1+ (A-One Plus) Stable Previous AA- (Double A Minus) A-1 (A-One)

AGENCY UPGRADES MEEZAN BANKS CREDIT RATING

Local Pakistani ratings agency, JCR-VIS Credit Rating Company has upgraded the shortterm credit rating of Pakistans leading Islamic bank, Meezan Bank by a notch to A1+ from A1. The agency said in a statement that Meezan Bank continues to enjoy the highest market share in the local Islamic banking industry measured by total deposits, which accounted for 34% of the total market as at the end of 2010.
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The agency reported that Meezans growth in deposits to Rs13bn ($151m) by end of 2010, coupled with a higher proportion of low-cost retail deposits is indicative of Meezans strong franchise value. The banks liquid reserves remained high and when viewed together with the mixture of the profiles of its depositors, JCR-VIS said that this translated into a sound liquidity profile for the institution. JCR-VIS reported that significant growth has been witnessed in the banks investment portfolio in the past six months with the channelling of the proceeds of the government of Pakistans recent Rs45.8bn ($537m) Ijarah Sukuk issue. The agency commended the increased profitability of the bank, a situation that has been supported by a benign operational environment, with little competition, but in the future JCR-VIS believes that Meezan will have a challenge sustaining its high levels of profitability.

MEEZAN BANK ADVISES FIRST ISLAMIC SUKUK

KARACHI: Meezan Bank added another first in Pakistans Islamic Banking Industry by becoming the Advisor and Lead Arranger for the first ever short-term Sukuk for Kot Addu Power Company Limited (KAPCO). The short term Sukuk, which can be termed as an Islamic alternative to Commercial Paper was issued by KAPCO to meet its working capital requirements. This issue with a tenor of six months was innovatively structured by Meezan Bank on Musharaka (Shirka-tul-Aqd) basis. . The Sukuk received an overwhelming response from investors, mainly comprising of Islamic mutual funds, as can be well judged by over-subscription of more than 50 percent of the issue size. KAPCO is Pakistans largest Independent Power Producer with a nameplate capacity of 1600 Megawatts. The Company is an AA+ rated entity and is listed in all three Stock Exchanges of Pakistan. Meezan Bank is the largest Islamic Bank in Pakistan. The Banks retail banking network is supported by 24/7 banking services that include over 180 ATMs, Internet Banking and a 24-hour Call Centre. The Banks VISA Debit card allows its customers to shop at more than 30 million merchants worldwide and withdraw funds from their accounts from more than 1.4 million ATMs worldwide.
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INTRODUCTION TO MEEZAN BANK- BRANCH BANKING

Meezan bank as a premier Islamic bank follows an Islamic financial system that emerged on factual and authentic principles of Islam. A branch, banking center or financial center is a retail location where a bank, credit union, or other financial institution (and by extension, brokerage firms) offers a wide array of face-to-face and automated services to its customers.

DEPARTMENTS AT THE BRANCH

There are 5 main departments at the branch: 12345Customer Service Department. Operations Department. Service Quality Coordination Department. Cash Department. Business Development Department.

1- CUSTOMER SERVICES DEPARTMENT

The Customer Service Department is managed by Personal Banking Officers (PBOs). Account opening and closing is the main function of customer services department, along with it the department also deals with Dormant Accounts, Mandate, Stop Payment & Lockers. The banks customers includes individuals (single or joint), firm (partnership/proprietorship), autonomous corporations, limited companies, charitable institutions, associations, educational institutions or local bodies. Brief explanation of the products and services offered by personal banking department is given above under the heading of products and services - personal banking

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 given to him/her is about the types of accounts, the clients are informed in detail about the accounts and their respective profit rates.
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TYPE OF ACCOUNTS OPENED 1. Saving Account . 2. Current Account. 3. Term deposit. 1. SAVING ACCOUNT The Riba-free Rupee Saving Account is a basic banking account for every customer's need. The account provides expected monthly returns along with a variety of free packaged benefits. On agreeing to become a Rupee Saving Account holder, the customer enters into a relationship based on Mudarabah with Meezan Bank. Under this relationship, the customer is an Investor (Rab-ul-Maal) and the Bank is the Manager (Mudarib) of the funds deposited by the customers. The Bank allocates the funds received from the customers to a deposit pool; 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. Meezan Rupee Saving Account can be opened by Individuals, Sole-Proprietorships, Partnerships and Limited Companies Key features There is no minimum investment required to open an account Profit will be calculated on daily product basis Profit will be paid on monthly basis No restriction on withdrawals or number of transactions Cheque books Globally accepted Meezan VISA Debit Card Free Online Banking services at our branch network nationwide

2. CURRENT ACCOUNT Meezan Current Account is a Rupee-based current account that provides you the convenience of putting your money in a Riba-free account and accessing it without any restrictions on withdrawal while enjoying a host of professional conveniences from Meezan Bank. Meezan Current Account is based on Qard contract where the Bank is liable to pay your money
27 IQRA UNIVERSITY, MAIN CAMPUS, DEFENCE VIEW, KARACHI

back on demand. The Bank can use these funds for investment and other purposes. This account allows you the peace of mind of having your money safely deposited with a bank with the additional assurance that the Bank is not investing your money in activities that contravene Shariah principles. Meezan Current Account can be opened by Individuals, Sole-Proprietorships, Partnerships and Limited Companies. Key features

Minimum investment required to open an account is Rs. 1000/No restriction on withdrawals or number of transactions No deduction on low balance maintained

SUB CATEGORIES OF ACCOUNTS AND THEIR BASIC REQUIREMENTS

PERSONAL ACCOUNTS For Individuals (inclusive of Housewives / Students / Retired Personnel)

CNIC / NICOP / POC (signed by customer) Any job / Business proof Any other related document requested by the Bank

For a Non-Resident Pakistani (Pakistani Nationals Residing outside Pakistan)

NICOP / CNIC Visa/Passport Copy Job Proof (Salary Certificate/Slip) / Business Proof

For Minors (individuals below the age of 18)

Attested copy of Birth Certificate Attested copy of B Form CNIC copy of guardian Valid proof of source of income of guardian

28 IQRA UNIVERSITY, MAIN CAMPUS, DEFENCE VIEW, KARACHI

 JOINT ACCOUNT 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. 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 himself in order to withdraw any cash or deposit the cheque. Requirements: Photocopy of NIC of Account Holder. Two-three passport size photographs.

BUSINESS ACCOUNTS For a Limited Company

Attested copy of Certificate of Incorporation List of Directors Attested copy of Memorandum & Articles of Association Board Resolution Attested copy of Certificate of Commencement of Business (For Public Ltd. Co.) Attested copies of CNICs of all Directors / Signatories Latest copy of certified Form-29 issued by SECP

For a Sole-Proprietorship

CNIC of Proprietor Attested Copy of NTN Certificate Account Opening Request & Proprietorship Letter on Firm's Letter Head
29

IQRA UNIVERSITY, MAIN CAMPUS, DEFENCE VIEW, KARACHI

For a Partnership

Partnership Deed (attested by notary public) Letter of Authority & Mandate (if applicable) Attested copies of CNICs of all Partners Account Opening Request Letter on Firm's Letter Head Attested copy of Registration Certificate with registrar of the firms

For a Club / Society / Association / Trust

Copy of Rules/By-Laws Copy of Registration Certificate List of Executive Members/Management Committee/Management Body Copy of Resolution CNICs of all Members of Management Body Undertaking to immediately inform the Bank in writing about any changes in Management Committee/Authorized persons.

3. THE CERTIFICATE OF ISLAMIC INVESTMENT (COII)

It is a Mudarabah-based deposit product through which you can invest your savings for periods ranging from 3 months to 5 years and earn Halal profit on a periodic basis The Certificates of Islamic Investment is an ideal investment for Individuals, Sole Proprietorships, Partnerships and Limited Companies Key Features

Investment can be made for 3 months, 6 months, 1 year, 2 years, 3 years and 5 years Profit payment options are monthly, quarterly or at maturity Minimum investment required for quarterly and on-maturity payment is Rs. 50,000/ Minimum investment required for monthly profit payment is Rs. 200,000/ Pre-mature withdrawal can be made as per approved schedul

30 IQRA UNIVERSITY, MAIN CAMPUS, DEFENCE VIEW, KARACHI

Profit sharing & Distribution Method The Bank calculates the profit of the deposit pool every month. Gross income of the deposit pool is shared between the Bank (Mudarib) and customers (Rab-ul-Maal) on the basis of a predetermined profit-sharing ratio announced at the beginning of the month. The profit is distributed amongst the Account holders on the basis of predetermined weightages, announced at the beginning of the month. In case of a loss, as per the rules of Mudarabah, the Rab-ul-Maal shall bear the loss in the ratio of their investment. Profit Sharing Ratio

Bank will share 50% of Gross Income as Mudarib Depositor will share 50% of Gross Income as Rab-ul-Maal

PREMATURE ENCASHMENT OF A CERTIFICATE(S)

In case of Premature Encashment of a certificate(s), profit will be paid with respect to the applicable product category rate mentioned below. if extra profit is paid that will be recovered.
Early Redemption Schedule for the Certificate of Islamic Investment (Effective: December 20, 2010) S No. Tenure Rates Applicable on Premature Encashment within Within 1-3 3-6 6-12 1 Months Months Months Month 1. 3 Months No Profit

1-2 Years

2-3 Years

3-4 Years

5 Years

Saving Account Rate Saving 3 Account Months Rate COII Saving 3 6 Account Months Months Rate COII COII Saving 3 6 Account Months Months Rate COII COII

2.

6 Months

No Profit

3.

1 Year Monthly

No Profit

4.

1 Year Quarterly

No Profit

31 IQRA UNIVERSITY, MAIN CAMPUS, DEFENCE VIEW, KARACHI

5.

1 Year Maturity

No Profit

Saving 3 6 Account Months Months Rate COII COII Saving 3 6 1 Year Account Months Months Monthly Rate COII COII COII Saving 3 6 1 Year Account Months Months Monthly Rate COII COII COII Saving 3 6 1 Year Account Months Months Monthly Rate COII COII COII Saving 3 6 1 Year 2Y Account Months Months Monthly Monthly Rate COII COII COII COII Saving 3 6 1 Year 2Y Account Months Months Monthly Monthly Rate COII COII COII COII Saving 3 6 1 Year 2 Years Account Months Months Monthly Monthly Rate COII COII COII COII Saving 3 6 1 Year 2 Years 3 Years 3 Years Account Months Months Monthly Monthly Monthly QuarterlyCOII Rate COII COII COII COII COII Saving 3 6 1 Year 2 Years 3 Years 3 Years Account Months Months Monthly Monthly Monthly QuarterlyCOII Rate COII COII COII COII COII Saving 3 6 1 Year 2 Years 3 Years 3 Years Account Months Months Monthly Monthly Monthly QuarterlyCOII Rate COII COII COII COII COII

6.

2 Years Monthly

No Profit

7.

2 Years Quarterly

No Profit

8.

2 Years Maturity

No Profit

9.

3 Years Monthly

No Profit

10.

3 Years Quarterly

No Profit

11.

3 Years Maturity

No Profit

12.

5 YearsMonthly

No Profit

13.

5 YearsQuarterly

No Profit

14.

5 YearsMaturity

No Profit

THINGS TO BE CONSIDERED BEFORE OPENING AN ACCOUNT

Verification of the customers credentials. The suitability of the prospective customer. State Banks rules and regulations. The Banks own policy. The prospective profitability of the relationship.

32 IQRA UNIVERSITY, MAIN CAMPUS, DEFENCE VIEW, KARACHI

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 also signs 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 checque book. 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 account, 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 Seervices/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. Overall functions performed by Customer Services Department: ACCOUNT OPENING ACCOUNT CLOSING GENERAL CLIENT DEALIN
33 IQRA UNIVERSITY, MAIN CAMPUS, DEFENCE VIEW, KARACHI

2- OPERATIONS DEPARTMENT
Functions performed: 1. Clearing 2. Remittance 3. Cash

1. CLEARING:
All cheques are as a rule go through clearing house for cheques, only cheques that do not go through it is if they are deposited or cashed at same bank(in this case bank acts as clearing house). The money is not release until the cheque is verified by the bank in all respect. Then first exchanged by banks after withdrawing from cheque issuer's account, the receiving bank pays the depositor in its account. This process is called cheque clearing process. In simple terms if more then one bank is involved then it has to go through clearing house. If you do not get the money after depositing the cheque then it comes back to you as uncleared check with reason, such as no such account or insufficient fund or signature cannot be verified or stoped payment initiated by issuer. CHEQUE : A cheque is a bill of exchange drawn on banker, payable on demand on date (validity 6 month) Open Cheques : They are payable in cash at the counter of a bank in accordance with the policy of the bank. Crossed Cheques: they are not payable at cash counters, but can be collected only the banker who would credit the proceeds to his customers account after realization.

THE DRAWER: The maker of the cheque is called the drawer ( A person who sign. the cheque) THE DRAWEE: The person directed to pay is called the drawee (Bank)
34 IQRA UNIVERSITY, MAIN CAMPUS, DEFENCE VIEW, KARACHI

THE PAYEE: The person named in the cheque to whom the payment to be make. CROSSING: Crossing is a direction to paying bank. Two parallel transverse lines called crossing of cheque.

Six Identifiers, Confirming The Negotiability Of The Cheque D. A. M. P. E. N D: Date Of The Cheque.
Post dated: cheque presented for negotiation ahead of its time. Steal dated: Cheques presented six months after the expiry to the date written.

A: Amount Of The Cheque

Written amount of the cheque, both in words and in figures must tally.

M: Maker Of The Cheque

The signature on the cheque must be verified.

P: Payee On The Cheque.

To confirm how the cheque is written , whether cash, account payee or crossed.

E: Endorsement On Th Back Of The Cheque.

To confirm, who is endorsing the cheque, whether its the right full owner of funds.

N: Negotiability Of The Cheque.

In terms of its physical appearance, whether torn or mutilated, damaged to the micro encoding at the bottom of the cheque.
35 IQRA UNIVERSITY, MAIN CAMPUS, DEFENCE VIEW, KARACHI

NIFT: National Institute Of Facilitations Technologies (Pvt) Ltd. established

in 1995, by the banking giants of Pakistan, i.e. HBL, NBP, ABL, MCB. It has the support of the SBP offices in all the major cities of Pakistan. It works as clearing house and facilitates the clearing of cheques between institutions locally.

INWARD CLEARING

Ensure clearing bag received from NIFT rider is not tampered or broken Count cheques received against summary report Sort cheques and pay orders Scrutinize all inurnments Seek customer confirmation in case of heavy amount and then post in the system Send cheques over the posting limit to Manager operations Return cheque in case of insufficient fund Entre the details of cheque returned in cheque return register and recover charges as per SOC (Schedule of Charges) Print journal of inward clearing and verify the posting of the day by a designated officer.

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. All inward cheques which are being received by NIFT should be properly scrutinized, posted, signature verified and debited from customers account. 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, mutilation and endorsement not present on cheque. Cheque is post date. Refer to drawer

36 IQRA UNIVERSITY, MAIN CAMPUS, DEFENCE VIEW, KARACHI

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. After this record the entry in Cheque return register showing the following columns: Date Title of account Account number Cheque number Amount Bank name Reason to return

OUTWARD CLEARING:
Scrutiny of the cheque. Clearing stamps. System posting. Jotting and bundle cover. Authorized signature. Print outward clearing journal.

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. In outward clearing, the entry is made like: Customer Account Cr. State Bank of Pakistan Dr. This entry is made after the confirmation of clearing of all cheques, which are sent to other banks through NIFT.

SERVICES PROVIDED:
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
37 IQRA UNIVERSITY, MAIN CAMPUS, DEFENCE VIEW, KARACHI

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 banks endorsement stamp on the backside of the cheque.

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.

ISSUING CHEQUE BOOKS

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

2. REMITTANCE:
Transfer of funds, usually from a buyer to a distant seller, instrument of transfer (such as a cheque or draft), or funds so transferred. 1. 2. 3. 4. Pay order Demand drafts Inward collection Outward collection

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

2. 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 persons account must be maintained with the bank for which the payer has demanded the DD.
38 IQRA UNIVERSITY, MAIN CAMPUS, DEFENCE VIEW, KARACHI

OTHER FUNCTIONS UNDER OPERATIONS DEPARTMENT 1. 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 For all eligible Account Holders Key security Deposit PKR 3000 Saving/Current Account with MBL 02 Passport size Photographs

CHARGES :
Key Deposit. Small... Medium. Larg. PKR 3000 PKR 1000/Year PKR 1500/Year PKR 2000/Year

2. CHEQUE BOOKS HANDLING

Application for New Cheque Book.

CHARGES :
PKR 03/Leaf for Saving Account Cheque Book PKR 01/Leaf for Current Account Cheque Book
39 IQRA UNIVERSITY, MAIN CAMPUS, DEFENCE VIEW, KARACHI

3. SERVICE QUALITY DEPARTMENT

Service quality department mainly deals with the maintenance of quality services and products, ensuring that the customers are carefully looked after and served in an efficient and professional manner.

MAIN FUNCTION OF THE DEPARTMENT IS:

To manage the sales and service area of the branch to maximize opportunities, To convert walk-ins into customers and deepen existing relationship, while providing quality service delivery in an efficient manner. Entertain all the walking customers and provide a sense of comfort and personalize attention. Acquire new or repeat business from all segments. Retain and grow the portfolio through pro-active customer service, Revenue generation through sales and relationship management, New customer acquisition through positive word of mouth. Managing existing customer relationship and business development.

DUTIES AND RESPONSIBILITIES OF AN SQC

Maintain and file daily sheet of floor time management To receive and log customer complaints in the CRM customer relation department. Maintain and record SQC check list as usual. Monitor complaints handling/resolution and follow-up on daily basis. Suggest modification and improvements in the processes and systems both at the Head office dealing with the branch and the internal operations of the branch to ensure that highest quality services are being provided. Actively coordinate between branch and service quality department (SQD) at head office. To ensure the availability of forms, deposit slips, information booklets.
40 IQRA UNIVERSITY, MAIN CAMPUS, DEFENCE VIEW, KARACHI

To receive all faxes and reply it according to prescribed TAT i.e with in 10 min, maintaining Annexure Fax and updating it on daily basis. Daily Transaction Monitoring of online transaction and pay orders. Auto credit processing of ATM, record any retraction (overage or shortage) if any, in ATM retraction file. Keep record of capture cards and maintaining Capture Card Register. Return capture card to the customer or head office or destroy it after 15 days from the date it was captured if its a COLD CARD & destroy it immediately if its a HOT CARD. Maintain Capture Card Return and Destruction (ATM) registers. Initiate ATM / Phone Banking (PB) / SMS forms. Receive new ATM cards from Head Office, file ATM card report, record the entry in ATM Card Logbook, generate ATM Card Letters and send it to customers. Also inform customers via phone call about their ATM card being ready against their request of issuing ATM card.

JOB OF A FLOOR MANAGER

Welcome/greet the customer & walk-ins by saying Asslam O Alaikum, introducing yourself to them with a smile and guide them to their respective branch area/officer. Be prepared to help them for their queries, give them professional service, treat them courteously, and give satisfactory information. Provide personalized and customer friendly environment, products and best services by taking real time feedback, including suggestions and complaints to improve our service quality standards. Frequently moves around the banking hall and cash counter areas to ensure that every customer is being looked after properly. Ensure that queues are properly maintained at counters. Control the noise level/customer rush within the branch. Maintain a highly decent professional environment in the branch and ensure that the branch premises maintain highest standards of hygiene, cleanliness and comfort.

41 IQRA UNIVERSITY, MAIN CAMPUS, DEFENCE VIEW, KARACHI

MY EXPERIENCE:
Working in different departments of Meezan Bank I have learned about organizational behavior, leadership, organizational and interpersonal communication, work group behavior, conflict management, social network and work group politics. While working in Customer Service Department, I learned about; Customer dealing and procedure of account opening, from filling the account opening form, compilation of documents to be attached, entry in the data base system till authorization of account from CAO. Current and saving accounts along with their different features. Term certificates. Pamphlets and information booklets about range of products, their benefits and customized features. Stop payment issues. Customer instruction form (when a customer wants to edit his/her information about phone no. or change in address etc.)

While working in Service Quality Department, I learned; An SQC (service quality coordinator) has to provide high quality experience when the customer enters the branch and gets the first contact with the floor manager, who after greeting, guide the customer to the respective department. I was assigned the responsibility of being the first point of contact with the customer while performing the job of floor manager job for 1 hour every day. In this 1 hour I have to ensure The service provided was satisfactory and up to the required needs of customer. In entire work in this department I have to maintain the discipline, professional environment in the branch premises. Interaction directly with customers and receiving and handling complains. Provision of effective, timely and customized services. Apart from the job of Floor Manager, I also performed all the duties of an SQC, related to ATM, Fax, Capture Card, filing of ATM, PB, SMS forms, receiving new ATM cards, sending letters to the customers and informing them via phone calls.

42 IQRA UNIVERSITY, MAIN CAMPUS, DEFENCE VIEW, KARACHI

While working in Operations Department, I learned; Inward and outward clearing. Scrutinizing cheques. Demand Draft, Pay orders, OBC. Balancing the inward and outward clearing with the summary report of NIFT.

CONCLUSION
I have learned about the difference between conventional and Islamic banking. Participatory financing is a unique feature of Islamic banking, and can offer responsible financing to socially and economically relevant development projects. This is an additional service Islamic banks offer over and above the traditional services provided by conventional commercial banks. Meezan bank strives to find commonalities with the conventional banking system with absolutely no compromise on shariah ruling, by offering consumer oriented products and service it is getting itself ahead of its competitors and by implementing aggressive strategic and tactical initiatives on the side of consumer banking. The bank aims to fulfill its prime target of providing customer accessibility and convenience, within a culture of dedicated services. The bank has a rapidly growing branch network across all major cities nationwide.

RECOMMENDATIONS: DISCUSSION AND SUGGESTIONS

Customers have a never ending list of the wants. That is food, clothing, housing and machinery. Entrepreneurs are the only sources which develop means to fulfill these wants. By advertising their products and services, they raise people expectations and they become the customer of the entrepreneur. If the wants are being satisfied according to their expectations, they continue their full-fledge support to the business and hence the enterprise grows. Banks are also a business that fulfills the needs of people that are connected with money, CapitaLand the transferring of funds. As they exist for centuries and they are prospering continually, it means that their methods are good and are also fulfilling customers wants and expectations. Commercial banking system as it functions today is accepted globally except the Islamic countries, as its methods are against Islamic Shariah.
43 IQRA UNIVERSITY, MAIN CAMPUS, DEFENCE VIEW, KARACHI

The reservation is on the fact that the bank operates on the basis of interest which is completely prohibited in ISLAM. Commercial banks have completely ignored the interest related concerns on the account of Muslims. And Muslims turned to another entrepreneur, which is the Islamic Banker. On the basis of this report, I hereby recommend some suggestions, if these suggestions are fulfilled; the Islamic Banking sector can flourish.

PERFORMANCE APPRAISAL:
As the employees are main basis of an organization, their needs should be the first thing to be catered. The management should evaluate the performance of the employees and increments and promotions should be recommended on merit basis.

CUSTOMER RELATIONSHIP:
If a person wants to expand his business, he should know the customers and his needs. By their attitude, the relationship with the customers can be improved. And by knowing that what the customer wants, fulfilling those wants in a Shariah based manner, Islamic Banks can flourish.

MARKETING STRATEGIES:
Employees should be given proper training for marketing, and proper plans should be built for the promotion of their products and services so that the sale is increased and also the profit of the banks. With the experts guidance, the employees should be trained with the basic concept of marketing and the target market should be properly identified

44 IQRA UNIVERSITY, MAIN CAMPUS, DEFENCE VIEW, KARACHI