Meezan Bank Internship Report

Full text


Business Internship Report On

Saddar Branch Hyderabad

Submitted By

Sehrish Habib



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 full-fledged 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


• 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



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.


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 have 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 Hyderabad)

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 debt- based 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)


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


2.1.6 Modes of Islamic Banking


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 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.


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 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.



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.


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

BAI SALAM: Salam means a contract in which advance payment is made for goods to

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



• 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-of-the-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



The inception of Pakistan as the first Islamic Republic created in the name of Islam.


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.


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.



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.



Al-Meezan Investment Bank is established with a mandate to pursue Islamic Banking. Mr. Irfan Siddiqui appointed as first and founding Chief Executive Officer.


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.


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.


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.


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 open-end Islamic Mutual Fund.


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.


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).


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.


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.


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.


Branch network of six dedicated Islamic banks increases to 480 Branches (Including Sub-Branches) 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 short-term. 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.


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.

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 Central Region Northern Region

Hub (Lasbela) Arifwala Abbottabad

Hyderabad Bahawalpur Attock

Karachi Burewala Dera Ismail Khan

Mirpurkhas Chiniot Dina

Nawabshah Daska Gujar Khan

Quetta Dera Ghazi Khan Haripur

Sakrand Faisalabad Havelian

Sukkur Gojra Islamabad

Tando Adam Gujranwala Jhelum

Tando-Allah-Yar Gujrat Kohat

Hafizabad Mansehra Jhang Mardan Kasur Muzaffarabad Khanpur Nowshera Khushab Peshawar Lahore Rawalpindi Lalamusa Swat Mandi Bahauddin Mian Channu


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


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.





3.2.4 Sub-categories of Accounts and the Basic Requirements:


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



 Copy of national identity card  Complete account opening form  Letter of introduction if required

 Visiting Card (if the person is employed)


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.


 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)


 Certified copy of resolution  Certified copy of rules

 Copies of National Identity cards of all directors/passports  Completed account opening form


 Specimen Signature Card


 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



 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).


 List of Directors of company.  NIC of all Directors.


 Memorandum of Association.  Article of Association.

 Copy of Board Resolution.  Latest Copy of Form-29

 Stamp of Company, which is to be affixed on the account opening form.  Certificate of Commencement of Business


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.


 Photocopy of NIC of Account Holder.  Two-three passport size photographs.


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.


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.


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.


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:






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


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.


• 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


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.






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.


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.


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


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


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.


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.


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.


 Available in selected branches

 Available in 3 sizes (small, medium and large)  For all eligible Account Holders


 Key security Deposit PKR 3000


 Application on Prescribed Form duly filled  Saving/Current Account with MBL

 02 Passport size Photographs

b) Cheque Books Handling


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


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.


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


When cash is received at the customer it is recorded in the scroll book.


The cashier makes entry in the paying cashbook when cash is paid.


The consolidated figure of receipt and payment of cash is entered in cash balance book.


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


 Personal


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


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 • CHF • SGD • AUD


3.6.1 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.


• 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. 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 3,429 49.11

Pakistan Kuwait Investment


Islamic Development Bank, Jeddah 651 9.32

Others 808 11.57

Paid up Capital 6,983 100 %


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


• 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



Chapter – 5


Chapter – I

Introduction to





Chapter – 5


Chapter – I

Introduction to




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.


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


• 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.


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


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


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.



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



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



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



Related subjects :