Saif Final

PRAISE TO ALLAH…
“LORDS OF THE LORDS, THE COMPENSATE,
THE MERCIFUL.
MASTER OF THE DAY OF THE JUDGMENT!
YOU ALONE WE WORSHIP.
AND TO YOU ALON

E WE WORSHIP.
AND TO YOU ALONE WE LOOK FOR HELP

THOUSANDS OF SALAM TO HOLY PROPHET
HAZRAT MUHAMMAD
(SALALLAH-O-ALEHY WASSALAM)
INTERNSHIP REPORT Page 1

PREFACE
Business environment are becoming more and more

complex with the passage of time. To understand and
deal with the riddle phenomenon, one need a lot of
energy and knowledge .So business education has
become an evolving science, which help to solve the
business problems. Academic education provides
general knowledge about business decision and
policies.
Internship is an integral part of the study of BBA

HONS. It provides the opportunity of peeping into the
real economics of the country. It enables us to evaluate
and understand the practical application of all the terms
& techniques that we have studied during our course
and report.

ACKNOWLEDGMET
Praise to Allah, who bestowed upon us the potential

and ability to accomplish the task of the work. Salaam
to the Holy Prophet Hazrat Muhammad (S.A.A.W).
I wish to express deep sense of gratitude to Mr.

Waqas Nizami, Branch Manager and his all team Old
Bahawalpur Road, Multan, who provided me the
opportunity to achieve this practical experience under
his valuable supervision and helping suggestions to
complete this report.
I am thankful to all those people who helped me a

lot and provided me an opportunity and learn every
aspect of Islamic Banking.

EXECUTIVE SUMMARY
AL-Meezan Investment Bank is established on 27 January 1997 as the first Islamic bank of
Pakistan. Mr. Irfan Siddiqui appointed as first and founding Chief Executive Officer. In 2002 the
first Islamic Banking Licence is issued to Meezan Bank by State Bank of Pakistan Societe
Generale, a French commercial bank’s operations in Pakistan were amalgamated with Meezan
Bank. President General Pervaiz Musharaf inaugurates the first commercial banking branch of
MBL at FTC building Karachi. Now it has 201 branches all over Pakistan which is a great
achievement in Islamic Banking Sector.
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.
Main Shareholders of the bank are:
 Noor Financial Investment Company
 Islamic Development Bank (IDB)
 Shamil Bank
 Pakistan Kuwait Investment Company (Private) Limited (PKIC),
The members of the Shariah Board of Meezan Bank are internationally renowned scholars
serving on the Boards of many Islamic banks operating in different countries.
The members of the Shariah Board are:

1. Justice (Retd.) Muhammad Taqi Usmani (Chairman)
2. Dr. Abdul Sattar Abu Ghuddah
3. Sheikh Essam M. Ishaq
4. Dr. Muhammad Imran Usmani
Meezan Bank has one of the largest offering of Shariah driven products and services under one
roof. The Bank has developed an extraordinary research and development capability by
combining investment bankers, commercial bankers, Shariah scholars, legal experts and product

users that has led to the introduction of many products which satisfy business needs and meets
world-class service standards
The branch at CHOWK SHAHEEDAN Multan operates in different Departments.

MBL deals in these basic facilities which are Murabaha, Musharaka, Diminishing Musharaka
and Car Ijarah.MBL also providing the facility of Riba-Free profits on the basis of average
monthly balance in the customer's account. In case of Profit accounts MBL works under the
arrangement of Mudaraba in which customer acts as Rab-ul-Maal and the Bank acts as
Mudaraib. In this way the profits which are earned from this arrangement is distributed among
the customers after deducting the cost incurred in earning those profits.
In remittance department like any other bank MBL also have instruments for transferring of
money, Online Transfer, Demand Draft, Pay order, Foreign Telegraphic transfer, Cash Deposit
Receipt, OCC / OBC, and ICC . In cash department both deposits and withdrawals go side by
side. This department works under the accounts department and deals with cash deposits and
payments. This department maintains the following sheets, books, and ledger of account cash
received voucher sheet.
Cash paid voucher sheet, Paying-in-slip, Cheque Book, Cash balance book. The clearing at MBL
or other banks is being done through NIFT (National Institute of Facilitation Technology).
This branch also deals in corporate department which facilitates the customers which are in need
of long term finances. As MBL is an Islamic Bank so it deals in Assets not in hard cash in case
of financing facilities. For providing this facility the bank verifies the party dealing with other
banks about their financial condition of business and as a first step credit proposal is being made.
Car Iajrah is providing its services to the customers which are in need of Car. This facility is for
3 -5 years. This department takes 15% - 50% security deposit and provides the asset on two
methods i.e "on" and "booking". The profit rate charged is the Rack Rate defined at the head-
office level.

Introduction to MEEZAN BANK
Vision Statement:
“Establish Islamic banking as banking of first choice...”
Establish Islamic banking as banking of first choice to facilitate implementation of an equitable
economic system, providing a strong foundation for establishing a fair and just society for
mankind.
Mission Statement:
“To be a premier Islamic bank...”

To be a premier Islamic bank offering a one-stop shop for innovative value-added products and
services to customers within the bounds of Shariah, while optimizing the stake-holder's value
through an organizational culture based on learning, fairness, respect for individual enterprises
and performances.
Service Quality Mission
To develop a committed services culture which ensures the consistent delivery or our products
and services, within the highest quality services parameters, promoting Islamic values and
ensuring recognition and a quality banking experience to our customer.
1.History
AL-Meezan Investment Bank is established on 27 January 1997 as the first Islamic bank of
Pakistan. Mr. Irfan Siddiqui appointed as first and founding Chief Executive Officer. In 2002 the
first Islamic Banking Licence is issued to Meezan Bank by State Bank of Pakistan Societe
Generale, a French commercial bank’s operations in Pakistan were amalgamated with Meezan
Bank. President General Pervaiz Musharaf inaugurates the first commercial banking branch of
MBL at FTC building Karachi.

2. Nature of organization
The banking structure in Pakistan comprises of the following types
 State Bank of Pakistan
 Commercial Bank of Pakistan
 Exchange Banks
 Saving banks
 Cooperative banks
 Specialized credit institutions.
MBL is a commercial base banking system.MBL deals in these basic facilities which are
Murabaha, Musharaka, and Ijarah.
3. Unique Features
 Riba free Islamic banking
 Premier Islamic banking
 Hopeful and secure system
 To achieve sustainable growth, maximum market share, and high profitability in all areas
of banking and other affiliated Islamic financial services.
 To provide Shariah-compliant products and services
 To build and sustain a high performance culture in accordance with Islamic values and
Shariah principles.
 To effectively manage Meezan Bank’s portfolio of businesses to achieve strong and
sustainable return to depositors and shareholders.

Corporate Information
BOARD OF DIRECTORS:
 H.E Sheikh Ebrahim bin Khalifa Al-Khalifa (Chairman)

 Naseer Abdul Mohsen Al-Marri (Vice Chairman)
 Irfan Siddiqui (President & CEO)
 Istaqbal Mehdi
 Mohamed Abdul-Rehman Hussain
 Ariful Islam
 Rana Ahmed Humayun
 Mohammed Abdul Rehman Mohammed Bucheerei
 Ahmed Mohammad Thane
 Mohammed Azzaroog Rajab
 Ahmad Abdul Rahim Muhammad
SHARIAH BOARD
 Justice (Retd.) Muhammad Taqi Usmani (Chairman)

 Dr. Abdul Sattar Abu Ghuddah
 Sheikh Essam M. Ishaq
 Dr. Muhammad Imran Usmani

BUSINESS VOLUME
MBL shows a rise in profits for the 9 months ended September 2009. The profit before tax has
risen by 44% to Rs 1.1 billion as compared to the 9 months ended 2008. While for the same
period, the profit after tax rose by 24% to Rs 654 million. This increase in overall profitability
of the firm for the 3 quarters till September 2009 can be attributed to the massive 208% rise in
total other income from Rs 391 million to Rs 1.2 billion. For the period 3Q08, Total Other
Income made up only 15% of the 'Net Spread after Provisions + Total Other Income' figure.
But this percentage composition changed significantly during 3Q09 to 33.5%. This sharp
increase is due to a whooping 220% rise in the 'Income from Dealing in Foreign Currencies'
from Rs 194 million to Rs 621 million. However, it is important to note that although the
growth rates of 'Net Spread after Provisions + Total Other Income' and 'Total Other Expenses'
for 3Q09 are 40% and 38% respectively (in comparison to 3Q08) depicting a difference of a
mere 2%, the profit before tax has still gone up by 44%. This is because the profit figures are
still not very high in absolute terms and even a small increase can appear in the form of high
percentage growth.
The asset quality has been strengthened as the bank took some wise steps to improve the
coverage of the non-performing portfolio. Further provision of Rs 1,254 million was made
during the current 9 months compared to a charge of Rs 254 million in the corresponding
period of last year. Administrative and Operating Expenses increased from Rs 1,826 million to
Rs 2,531 million primarily due to higher staff expenses, rent and cost associated with branch
expansion. The bank further plans to open 34 new branches by the end of December 2009
despite current economic and political turmoil, which would increase the total number of
branches to 201.
The total assets crossed an important milestone of Rs 100 billion whilst PAT rose by 24%.
This growth has been spurred by the increase in the MBL's branch network as a result of which
deposits increased from Rs 70.2 billion to Rs 87.7 billion, an increase of 33% on an annualized
basis which is substantially higher than the annualized deposit growth of 12.65% recorded by

the banking industry.
Organizational structure

DEPARTMENTS

1.Operations department
1. Account opening
2. Account closing
3. Chequebook issuing
4. Cash
5. Remittance
6. Clearing
7. Data controlling
2 Marketing department
3. Service quality department
Account Opening:
 Fill in the Account Opening Form,

 Bring in original CNIC, and
 Get introduced by an existing banker
Current Account
MBL has brought Money protection along with Shariah complaint banking under one
roof. The bank code used for this account is 020.
Its key features are:
 Access to all online branches
 Free online services throughout the country.
 No restriction on withdrawals or number of transactions.
 Bank balance certificates and duplicate statement of account.
 Stop payment and hold mail instruction.
 24/7 call centre with complete banking services
 24/7 free ATM and Debit Card is yours.
The current accounts can be in these options as well:

 Individual
 Minor
 Limited companies accounts
 Sole Proprietorship
 Club/ Societies / Associations
 Joint
 Partnership
 Photo Account
Individual Account
People who are interested in operating their account individually are categorized under this
category.
The requirements for opening this account are:
 Copy of CNIC
 Job / Business Proof.
Minor Account:
A child who is under the age of 18 is called Minor. Meezan Bank is providing the account
opening facility to minor as well. The major requirement in a minor account is Guardian who
will operate the account.
The requirements for the account are:
 Birth Certificate
 Copy of B-Form
 Copy of CNIC of Guardian
Limited Companies Account

Limited companies can be of two types:
 Private limited companies
 Public limited companies
Private limited companies are those companies who cannot issue their shares in the general
public, their share are being traded within their families.
Public limited companies are those companies who can issue their shares in the general public
and their shares are being traded in the stock exchange as they are listed in KSE.

The requirements for opening these accounts are:
 Certificate of Incorporation of Business
 List of Directors
 Memorandum and Article of Association
 Board Resolution
 Certificate of commencement of Business (for Public Ltd companies only)
 Copy of CNIC of All Directors
 Copy of Latest Form-29
Sole Proprietorship
Those people who are the sole owner of their business are categorized to open their accounts
under this category.
The requirements are:
 Copy of CNIC
 Copy of NTN
 Account opening request
 Proprietor letter on letter head
Club / Societies / Associations

These organizations are basically non-profit based organizations. The requirements for opening
their accounts are:
 Copy of Rules and bylaws.
 List of existing members
 Certified copy of Registration
 Copy of CNIC of all Members.
 Undertaking to inform bank about any changes in the management.
Joint Account

When customers are interested in opening an account in which their account can be operated by
some other person as well, they fall under this category. There is an option in this account to
operate the account jointly or severely on the discretion of the account holder.
Requirements are:
 Copy of CNIC
 Job Proof / Business Proof
Partnership Account
When businesses are running under more than one owner and they are sharing the profits of the
business such businesses are called Partnership. The requirements for such accounts are:
 Letter of authority / mandate
 Copy of CNIC of all partners
 Account opening Request
 Registered Partnership Deed
Photo Account:
This account facility is for illiterate customers. Such customers which are unable to sign their
SSC fall under this category. In this type of account passport size photograph is attached to the
SSC and "Personal withdrawal" is written on to the SS card due to which the account holder has
to come personally to transact in his account. The requirements for this account are:
 Copy of CNIC
 2 Passport size Photograph
 Job/business proof.

Profit Based Accounts:
All the following accounts are profit earning accounts and they work under the principle of
Mudarabah and are strictly in conformity with the rules of Islamic Shariah.
On agreeing to become an account holder, the customer enters into a relationship based on
Mudarabah with Meezan Bank. Under this relationship, the Customer is an Investor (Rab ul
Mal), and the Bank is the Manager (Mudarib) of the funds deposited by the customers.
The bank allocates the funds received from the customers to a deposit pool. These funds from the
pool are utilized to provide financing to customers under Islamic modes that include, but are not
restricted to, Murabaha and Ijarah.
The bank calculates the profit of the deposit pool every month. The Banks profit sharing ratio is
50% of Gross Income and Depositors profit sharing ratio is 50% of Gross Income, calculated
after deducting costs and expenses directly incurred in deriving that Income
Riba Free Rupee Saving Account
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
including personalized check books, no restrictions on transactions, priority banking and so on.
The bank code for this account is 036. The weightings used for profit calculation are in the
following tiers:
 Minimum amount required to open account Rs. 10,000

 Riba Free COII Holders may open accounts without any minimum balance
requirements

RIBA FREE DOLLAR SAVING ACCOUNT(DSA)
It is a US Dollar based foreign currency account checking account with free online banking, no
restriction on withdrawals and at the same time option availing the monthly-decided profit. The
profit is earned if the client maintains minimum balance of US$ 100. Moreover chequebook and
balance certificate is also provided to the account holder.
MEEZAN BACHAT ACCOUNT (MBA)
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 a saving account convenience and service. The Riba-Free Meezan Bachat
Account works under the principles of Mudarabah and is strictly in conformity with the rules of
Islamic Shariah.
If the account holder maintains a minimum balance of Rs.25, 000/- he/she shall be eligible to
receive higher profits. Higher the balance the higher will be the profit in accordance with
minimum balance tiers account holder receive profit even if balance falls below Rs. 25,000/- in
any one month. Profit is credited to account every month and is calculated with reference to the
minimum balance maintained in the account during the preceding month. The bank code used
for this account is 766.
Additional Features:
 Highest expected rate of return

 Riba-free profit paid every month
 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

KAROBARI MUNAFA ACCOUNT (KMA)
Karobari Munafa is a 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. The bank code used for
this account is 435.
 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 pay-orders.
 Dedicated account / relationship manager.
INVESTMENT PRODUCTS OF MBL
Following are the six products of MBL in which investment can be made:
 Certificate of Islamic Investment (COII)
 Meezan Amdan Certificate (MAC)
 Meezan Providence Certificate (MPC)
 Monthly Mudarabah Certificate (MMC)
 Monthly Dollar Mudarabah Certificate (DMC)
 Meezan Islamic Institution Deposit Account (MIIDA)
Riba Free Certificate of Islamic Investment (COII)

The Riba Free is a Shariah compatible Islamic Investment Certificate. The minimum investment
is Rs. 50,000, with tenures of 3 months, 6 months, 1 year, 2 years, 3 years and 5 years. To make
an investment the bank requires customers to maintain either a current or a saving account with
Meezan Bank. In order to open an account, fill in the Account Opening Form, bring in your
original CNIC, and get introduced by an existing banker. It is possible to withdraw the
investment any time during the course of investment. However, profit shall be paid only after
completion of one month of investment.

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
Enjoy a range of valuable features including:
 Minimum investment amount: Rs. 50,000/-

 Available tenures of 3 months, 6 months, 1 year, 2 years, 3 years and 5 years
 A variety of profit frequencies: monthly, quarterly, and at maturity
 Pre-mature withdrawal options available.
 High and very competitive returns
 Long-term security ensured
Meezan Amdan Certificate (MAC)
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 profit is distributed among the MAC
holders on the basis of predetermined weightages, announced at the beginning of the month,
based on their respective category/tiers.

 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.
 Free ATM withdrawals on investment of Rs.500,000/- and above ( 5 per month)
 Free cheque book

Meezan Providence Certificate (MPC)
A long-term investment product specially designed to cater to the needs of corporate and
business concerns for purposes of investing their Provident, Pension and Gratuity Funds.
 Minimum investment amount: PKR 1,000,000

 Available tenures of 2, 3, 5 and 7 years.
 Pre-mature withdrawal options available.
Eligibility Criteria
 To have a registered or unregistered Employee Provident/Gratuity/Pension Fund.
 Have operations based in Pakistan.
Monthly Mudarabah Certificate (MMC)
Rib Free Monthly Mudarabah Certificates is a flexible investment product that has been designed
to give you a monthly return that is Halal. The minimum investment required is only Rs. 100,000
and you receive profit for each complete month of investment with the Bank.
Additional Features:
 A 100% halal investment in strict compliance with Shariah

 Monthly profit payment to your current or saving account
 Pre-mature withdrawal options available.
 Bank balance certificates

Monthly Dollar Mudarabah Certificate (DMC)
The Riba-Free Dollar Mudarabah Certificate (DMC) works under the principles of Mudarabah
and is strictly in conformity with the rules of Islamic Shariah.
 High and very competitive returns
 Six monthly profit payment to your current or saving account with us
 Long-term security ensured. Minimum investment amount: USD 10,000/-
Meezan Islamic Institution Deposit Account (MIIDA)
The Meezan Islamic Institution Deposit Account (MIIDA) is a unique product, tailored
exclusively for Islamic Financial Institutions (IFIs). With MIIDA, any IFI now has the
opportunity to manage excess liquidity in an immediate and profitable manner, by maintaining a
checking account with Meezan Bank.
Additional Features
 A 100% halal investment in strict compliance with Shariah

 Monthly profit payment to your current or saving account with us
 Bank balance certificates
 Free Online Banking services at our branch network nationwide
 Dedicated Banking hours from 9am to 5pm (Saturdays 9am to 12:30pm)
 24/7 Call Center with complete Tele-banking services
 Personal financial consultancy services

2. CLOSING OF ACCOUNT
When a customer wants to close an account he has to given a hand written application to the
head of the operations department to close his account plus return remaining leaves of
Chequebook.
The manager first verifies the sign of account holder, and then closing is done from the registers
on the computer where the account was opened. In the file of the account holder his account
opening form is crossed. For this closing a fee of Rs. 150/- is charge in Meezan Bank.
3. CHEQUE BOOK ISSUANCE
When the account is opened, then the customer is given a chequebook to sign upon and withdraw
money. It proceeded as under.
PROCEDURE
All the account opening formalities must be completed before issuance of chequebook.
Particulars of the chequebook requisition should be completed containing title of account,
account number, type of currency, number of leaves and signature to the customer. Signature of
the customer is verified on the requisition.
If customer is unable to collect his chequebook, then he can give authority to the third person to
collect his cheque book on his behalf by signing on the back of the requisition, in such case, the
particulars of the third person are required like name of the person CNIC number and signature
of that person on requisition and cheque book issuance register.
Chequebook is taken out from the safe / locker. It is assured that series of the chequebook.
Particulars are entered in the chequebook issuance register. Account number is stamped on every
leave of the chequebook and those leaves are counted. Bank code of account is written on the
cover of the chequebook and on every leaf of the cheque book. And requisition on the
chequebook for further issuance is properly filled, stamped and signed by officer of the bank.
Chequebook is delivered to the customer and his signature on the chequebook issuance register.
Chequebook serial number entered. In the system, Stock of chequebook are balanced at the end
of each day and kept under safe custody.

Meezan Bank is charging a fee for issuance of chequebook which is Rs. 1/- for every leaf.
Meezan Bank issues the following chequebooks.
 Saving account-25 leaves

 Current account 50 leaves.
 Current account – 25 leaves
 Current account – 100 leaves
 Foreign currency $ 10 leaves
5.REMITTANCES DEPARTMENT
The need of remittance is commonly felt is commercial life particularly and in everyday life
generally. The main function of the remittance department is to transmit money from one place
to another. By providing this service to the customer, bank earns a lot of income. Also customer
is able to meet its day-to-day financial requirements. Foreign and local remittances are both
available. Foreign remittances are available in the following currencies: US dollars, Pound
Sterling,andEuro.
Demand Draft
It is an instrument payable on demand for which value has been received, issued by the branch of
the bank drawn i.e. payable at some other place (branch). If two banks are involved then the DD
is sent to other bank but in other case it is handed over to the applicant.
Issuance Procedur
 A demand draft application is given to the customer; he fills in relevant information and
signs it.
 The officer checks the information form.

 The bank charges such as commission, excise duty is charged as per effective schedule of
charges which is FED and is 5% of the total charges. If he fills the tax exemption form,
tax is not charged.
 Then the officer of remittance department signs it and operation manager counter signs it.
 The entry is made in the DD issuing register; DD is given to the customer.
 Vouchers are prepared and posted.
 DD advises are printed and mailed to the respective branch.
Payment Procedure
 The bank receives DD.

 The DD credit advice is received through mail. The numbers are checked and signatures
are verified.
 An entry is made on the DD payable register and the vouchers are made.
 DD credit is attached with the vouchers and given for posting to the computer.
 When DD is received the test numbers are checked and the payment is made.
 Vouchers are given for posting and the entry that was made in the register is closed i.e.
DD payable is Nil.
Telegraphic Transfer (TT)
It is the quickest way of transfer of funds from one place (Branch) to other place (Branch) of the
same bank. Generally, a mail transfer advice reaches the drawer branch the next day through
courier services. But sometimes, a customer demands that his funds should be transferred
through the quickest means. In such cases, transfer of funds message is passed through telephone
or telegram.
This mode of transfer was used before online. Online system is very effective for this purpose
now a day online system is used.
Issuance Procedure

 The request of issuing TT is taken on the standard printed form.
 The customer fills the form properly and signs it.
 The Head of Remittance Department checks it, the charges such as commission, tax and
telex as per effective schedule and signs it.
 If he fills the tax exemption form then no tax is deducted.
 Then a TT is made on white slip. There are 3 copies, the original one is faxed to the
Branch, one to the Head Office and one is kept for record.
 The entry is made in the TT issuing register.
 When commission bill is received, it is attached to the TT office copy in the file.
Payment Procedure
 When a TT arrives, the test numbers are checked and the signatures are verified.
 The entry is made in the TT payable register.
 If there is no account then the TT received needs revenue stamp and then payment is
made. TT receipt is strictly non-negotiable.
Pay Order
It is an instrument issued for payment in same city. Pay order issued from one branch can only
be payable from the same branch. It is normally referred to as banker’s cheque. It is also called
confirmed cheque, because bank issues this on it own guarantee. The practice of MBL is a bit
different, it issues P.O for any branch located in Pakistan.
Issuance Procedure
 The standard form is given to the customer. He fills in the details and signs it.
 The concerned officer checks the form.
 Bank charges (or commission) as per the schedule of charges and the withholding tax of
0.5% of the charges are applied.
 A cash memo is signed, stamped and handed over to the applicant as a receipt.
 Then the pay order receipt is filled accordingly.
 Counter foil is also filled.

 An entry is made in the pay order issue register.
 Then the authorized officer signs it after checking the pay order.
 The order is then handed over to the applicant after having receiving signature on the PO
Form.
 A voucher is also made and posted at the computer.
Payment Procedure
 On presentation of the pay order receipt, two authorized officers of the branch sign the
receipt.
 PO entry is made in the PO issue register.
 Then the amount is credited to the account of the customer or pain in cash.
 PO is posted at the computer.
6.CLEARING DEPARTMENT
Meaning of clearing
The word clearing has been derived from the word “Clear” and is defined as a system by which
banks exchange cheques and other negotiable instruments draw on each other within a specified
area and thereby secure payment for their client through the clearing house which is in State
Bank of Pakistan at specified time in an efficient way.
Advantages of Clearing
1. Since clearing does not involve any cash etc and all the transaction takes place through
book entries, the number of transactions can be unlimited.
2. No cash is needed; as such the risks of robbery, embezzlements and pilferage are totally
eliminated.
3. As major payments are made through clearing, the banks can manage cash payment at the
counters with a minimum amount of cash in vaults.
4. A lot of time, cost and labour are saved.

5. Since it provides an extra service to the customers of banks without any service charger
or costs, more and more people are inclined and attracted towards banking.
Clearing House
It is a place where representatives of all scheduled banks sit together and interchange their claims
against each other with the help of controlling staff of State Bank of Pakistan and where there is
no branch of State Bank of Pakistan the designated branch of National Bank of Pakistan acts as
controlling member.
Working of clearing house

All the bank which are the member of clearing house maintain accounts with State Bank of
Pakistan by debit and credit to which the clearing settlements are made. If on a particular day, a
bank delivers cheques and other negotiable instruments worth more than the total amount of
Cheque received by it that banks accounts with State Bank of Pakistan would be credited with
the differential amount. If on the other hand the total amount of cheques and other negotiable
instruments draw on a certain bank by other bank is more than the total amount receivable by it
from other banks, then this bank’s account will be debited on that day.
The cheque delivered to the representatives of other banks for clearing is called outward
clearing, whereas cheques received from the representatives of other banks for payment are
called inward clearing.
Outward Bills for Collection

The bills, which are received by the bank and sent to other cities (branches) for the local clearing
in that city, are called Outward Bills for Collection.
There are three procedures for OBC:
 NIFT
 Through MBL branch
 Direct send to relevant Branch
NIFT

NIFT stands for National Institutional Facilitation Technologies. It's a recognized institute of
State Bank of Pakistan and serves in some of the main cities of Pakistan which include Karachi,
Lahore, Islamabad, Rawalpindi, Gujranwala, Faisalabad, Peshawar, Multan, Quetta, Sialkot,
Dera Ismail khan, Bahawalpur, Sukhar, Muzaffarabad and Hyderabad.
Procedure through NIFT:
 The cheques that are of other cities are separated.

 They are entered in the OBC Register and OBC numbers are given to them.
 The OBC forwarding schedules are prepared for different branches.
 The respective cheques are attached with the schedule.
 The office copy is filled and original schedule is send through NIFT
 On clearing, the respective banks send back the OBCs along with the IBCA (Inter Branch
Credit Advice).
 The OBC numbers are checked from the OBC register, after that entries are made.
 Commission charges are deducted from the account.
Procedure through MBL Branch
This procedure is used when the bills are of those cities where NIFT doesn't provide its services
or the respective cities contains MBL branch.

 These bills are send to the MBL branch of the respective cities
 The MBL branch will then clear the bill through online clearing system.
 MBL branch of the respective city will inform the originating MBL branch.
Direct send to relevant Branch

This procedure is used when the responding city doesn't contain any MBL branch and moreover
NIFT is also not providing its services there.

 The remitting officer will send the bill direct to the respective bank / branch through mail
or courier services.
 After checking the account of the customer the responding branch will Cr/Dr the
customer's account
 The bill is again send through mail/ courier to the originating city
 The remitting officer will Cr/Dr the customer's account.
 The respective charges are deducted from the customer's account.
Inward Bills for Collection
The bills, which are received by the bank from other branches out of the city for local clearing,
are called Inward Bills for Collection. It can also be done in three ways:
 NIFT
 Through MBL branch
 Direct send to relevant Branch
Procedure through NIFT:
 The OBC of other branches will be the IBC of this branch. So an OBC forwarding
schedule is received by NIFT
 The cheques are entered in the IBC register. The IBC numbers are allotted to them.
 The cheques are lodged for clearing.
 After realization, an IBCA is prepared and mailed to the branch from where the cheque
was received.
Procedure through MBL Branch
 The OBC of other branches will be the IBC of this MBL branch.

 This branch will check the account of the customer
 Cr/Dr the customer's account
 Send the IBC back to the originating branch
 Attach the IBC schedule to the IBC file.
Direct send to relevant Branch
When the city doesn't contain any branch of the originating bank and NIFT is also not providing
its services, this method is used.
 OBC is received from the originating bank by this MBL branch.

 The remitting officer will perform the respective function on the customer's account.
 Return the OBC schedule to the originating bank.
Service Quality Center
8 to 8 Banking

Meezan Bank is proud to be the first bank in Pakistan to introduce the concept of Eight to Eight
banking, giving our customers access to the branch from 8 'o clock in the morning to 8 'o clock at
night.
This adds a completely new dimension to our banking service and has been designed so as to
enable our customers to do banking at their convenience. Customers may visit their respective
branch early in the morning before going to work, or can drop by in the evening on their way
home and not have to worry about losing valuable office hours.
From 8AM till 5PM we offer the full range of our baking services. After 5PM and until 8PM our
customers are able to carry out the numerous transactions (value next day) which meet most of
their daily requirements.
Services provided from 8AM to 8PM include:
 Acceptance of cash
 Acceptance of cheques for collection and clearing
 Acceptance of transfer instructions
 Acceptance of Cheque Book, Pay Order and Demand Draft requests
 Locker operation (where locker facility is available)
 Accepting ATM, telephone banking and Internet banking requests.
8 to 8 banking service is only a part of Meezan Banks mission to focus on customer convenience
and service quality and make Islamic Banking the banking of First Choice.
This service is presently being offered at select branches in Karachi, Lahore and Faisalabad and
will be offered at some of our other branches very soon. Insha'Allah.
Meezan Bank’s 24/7 Call Center

As the Premier Islamic Bank in Pakistan, we strive to provide shariah compliant financial
solutions and top quality service. In order to achieve this,
Meezan Bank has setup a new chapter of convenience and
care, a 24/7 Call Center.
With our Call Centre facility, you no longer have to take time
out to visit your branch for your everyday banking needs. By
simply dialing 111-331-331 (from outside Pakistan please dial 00-92-21-111-331-331) you get
access to a wide range of Tele-banking solutions and personalized banking services. You can
also access our self-service banking, where you will be guided and assisted in all transactions by
our Interactive Voice Response System (IVR).
Key features of Meezan Banks Call Center

Services Provided
 Check your account balances

 Instruct issuance of pay orders and demand drafts
 Transfer funds between your own accounts
 Order issuance of chequebook
 Check transaction history of your accounts
 Receive information on various MBL products and services
 Issue stop payment instructions
 Report loss of your chequebook
 Register your comments and suggestions regarding MBL products and
services
 Request or change T-PIN
 ATM PIN Reissuance
 Report loss of ATM / Debit Card or cheque(s)
ATM Helpline – All 24/7 ATM Outlets have our ATM Helpline services available
to our valued customers.
You may instantly contact our Call Center officers for any inquiry by just picking
up the phone located beside the ATM
HELPFUL HINTS
PIN Forgotten Memories your PIN. Never write it down anywhere.

Keep your card carefully so that it does not get damaged or
Damaged Card
distorted.
Captured Card To avoid your card (or cash) from being captured, ensure that you
remove it from the ATM slot within the 20 second period

provided.
If the ATM does not dispense the correct amount of money or
Incorrect
does not dispense the money at all, please contact thebranch
Amount / No
where you are using the ATM or your home branch, or call the
Payment
Call Center at 111-331-331 immediately.
ATM It is advisable to retain your ATM receipts after every transaction
Receipts to guard against fraud and make record keeping easier.
At merchandising outlets, make sure that your ATM / Debit card
Bill Payment
is swiped only ONCE, in your presence, and on an Orix machine.
The 24/7 Card - your ATM & Debit Card in one!
The Meezan Bank 24/7 Card means you can stay in touch with your
money anywhere, anytime. Travel countrywide and have immediate
access to cash when you need it. Use your card to make all your
payments when you shop or dine out. With the Meezan Bank 24/7
Card in your wallet you do not have to carry large sums of money,
face the hassle of always having to come to the bank, face traffic
problems nor wait in long queues before making the purchases you
desire.
24/7 ATM Card
The Meezan Bank ATM card allows you to draw cash anytime nationwide. You no
longer have to worry about carrying cash on a trip within the country, simply carry
your Meezan Bank ATM card and draw cash or simply check your balance
information from any Banks ATM which is on the 1Link or MNet network.
Accessing any conveniently located Meezan Bank ATM or those of any other
bank, you can withdraw up to Rs. 20,000 per transaction and up to Rs. 20,000 per
day.
You may also perform a host of transactions including transferring your funds
across any online account** or getting a mini-statement or balance information.
The 24/7 ATM provides you all these facilities and much more.
You can use any ATM which is on the 1Link or MNet network***

*If using any non-Meezan ATM the transaction limit will be defined by the
machine. So if the machines limit is Rs. 10,000 then that will take precedence over
the Meezan limit of Rs. 20,000 per transaction.
** Applies to same branch accounts which have been linked to the ATM card
being used.
*** Charges will apply when accessing your Meezan account using another banks
ATM.
24/7 Debit Card
The Meezan Bank debit card gives you the convenience of not having to carry cash
as well as helps control your spending. Unlike a credit card
you cannot use the card unless sufficient funds are
available in your account to cover the purchase. The
simple and secure process will work wherever the Orix
network is present. This includes over 3000 merchants
across Pakistan.
If you require verification if a particular vendor is part of the Orix network,

contact our 24/7 Call Center on 111-331-331.
Making a payment via the 24/7 Debit Card

 The cashier will swipe the Card across the Orix machine and the purchase
amount will be entered.
 Select your desired account from the three options: Current, Savings, and
Credit.
 Enter your 4-digit ATM PIN for verification.
 After verification, the machine will issue a slip. Confirm your transaction
amount and collect your 24/7 Card.
 The transaction is complete and the money will be debited* from your account.
Meezan Internet Banking
The pinnacle of any Alternate Distribution strategy is
Internet Banking, the ability to bank “Anytime –
Anywhere”.
Meezan Bank’s Internet Banking system puts access to
your accounts at your fingertips, any where in the

world. Using any computer with Internet connectivity the following facilities are
available to you:
 Balance inquiry
 Statement viewing & download (in PDF or MS Excel format)
 Cheque status
 Cheque blocking
 Payorder request
 Funds transfers between own accounts at Meezan Bank
 Cheque book request
 Change of address request
 Complaint logging and follow-ups
Alerts and notifications sent by email:
 Low / high balance alert

 Credit/debit transaction alert
 Request resolution alert
 Complaint resolution alert
With aim to provide absolute client convenience and satisfaction, Meezan Bank
will offer in the near future:
 Alerts by SMS and Fax
 Utility bill payments
 Inter bank funds transfers
 Payments to nominated accounts at Meezan Bank
 Standing orders for repeated payments
By using Meezan Bank’s Internet Banking you will be able to feel the “Meezan
Experience” without leaving the comfort of their home/office.
To utilize these facilities, simply complete our brief online form and provide a
signed Indemnity to the bank. This Indemnity will be provided once you have
completed the registration form online. Your physical presence or branch visit is
not required.
Locker services:
Locker services are offered at select branches. Lockers are available in three sizes – small,
medium and large. Annual charges for the lockers are as follows:

Small Rs 1,000/-
Medium Rs 1500/-
Large Rs 2,000/-
Security charges are the same for all lockers 3000 annually.
CONSUMER
FINANCE

Car Ijarah, Pakistan’s First Islamic Car Financing
As a step towards Meezan Bank’s mission to provide a one-stop shop for
innovative value added Shariah compliant products, Meezan Bank’s ‘Car Ijarah’
unit provides a car financing, based on the principles of Ijarah and is free of the
element of interest.
"Car Ijarah"
Car Ijarah is Pakistan’s first "Interest Free" car
financing based on the Islamic financing
mode of Ijarah (Islamic leasing). This product is
ideal for individuals looking for car financing
while avoiding an interest-based transaction.
Meezan Bank’s Car Ijarah is a car rental
agreement, under which the Bank purchases the
car and rents it out to the customer for a period of 3 to 5 years, agreed at the time
of the contract. Upon completion of the lease period the customer gets ownership
of the car against his initial security deposit.
Car Ijarah is unique and is approved by Meezan Banks Shariah Board
Car Ijarah, designed under the supervision of Meezan Banks Shariah Supervisory
Board, is unique to car leasing facilities provided by other banks.
Rights & liabilities of Owner v/s User
An Islamic Ijarah is an asset-based contract, i.e. the Lessor should have ownership
of the asset during the period of the contract. Under Islamic Shariah, all ownership
related rights and liabilities should lie with the owner while all usage-related rights
and liabilities should lie with the user. A conventional lease contract does not
distinguish between the natures of these liabilities and places all liabilities on the
user of the asset, contradictory to Islamic Shariah. Under Ijarah, all ownership-
related risks lie with the Bank while all usage related risks lie with the user, thus
making the Lessor the true owner of the asset and making the income generated
through the contract permissible (Halal) for the Bank.
Continuation of lease rentals in case of total loss or theft of vehicle

If the leased vehicle is stolen or completely destroyed, the conventional leasing
company continues charging the lease rent till the settlement of the Insurance
claim. Under the Islamic system, rent is consideration for usage of the leased asset,
and if the asset has been stolen or destroyed, the concept of rental becomes void.
As such, in the above-mentioned eventualities, Meezan bank does not charge the
lease rental.
Process of Ijarah
. .
VENDOR ISLAMIC BANK Agreement-1 CUSTOMER
 The customer approaches the Bank with the request for financing and enters
into a promise to lease agreement.
 The Bank purchases the item required for leasing and receives title of
ownership from the vendor.
 The Bank makes payment to the vendor
 The Bank leases the asset to the customer after execution of lease agreement.
 The customer makes periodic payments as per the contract.
 Title transfers to the customer on the completion of period.
. .
VENDOR ISLAMIC BANK Agreement-2 CUSTOMER
Permissibility for Penalty of Late Payment of Rent under Islamic Shariah

In most contemporary financial leases, an extra monetary amount is charged, ‘in
their income’, if the rent is not paid on time. This extra amount is the considered as
Riba and is Haram. Under Ijarah, the Lessee may be asked to undertake, that if he
fails to pay rent on its due date, he will pay certain amount to a charity, which will

be administered through the Islamic Bank. For this purpose the bank maintains a
charity fund where such amounts may be credited and disbursed for charitable
purposes.
Key Features of Car Ijarah

 Ease of acquiring any new locally assembled car
 No upfront Insurance Payment
 No advance Rental
 Available in tenures of 3, 4 and 5 years
 Minimum security deposit as low as 15%
Car Ijarah also features Used Vehicles
In addition to our leasing of new cars, Meezan Bank also provides the unique
opportunity of leasing second hand, locally assembled, vehicles as well. This
feature is specifically designed as a highly economical option. The Used Car Ijarah
facility is made available at a minimum-security deposit as low as 20%.
Used Car Selection Criteria
 The second hand car selected should be from its first owner.
 The vehicle should not be older than 5 years.
 The minimum security deposit for a vehicle up to 2 years of age is 20%,
while minimum security deposit for a vehicle over 2 years of age is 30%.
 At the time of termination of the Ijarah agreement, the vehicle should not be
more than 8 years old. This means that if a car is 5 years old, the Car Ijarah
tenure is not more than 3 years and if its 4 years old, the tenure may be set
for a maximum 4 year term.
 This facility is for locally manufactured cars of Suzuki, Toyota, Honda &
the new model of Santro only.
Second hand vehicles selected should not be worth more than Rs. 1 million and
less than Rs. 250,000/-. Meezan Bank will have the vehicle valued by an
independent valuation company accordingly.
Documentation and Eligibility for Car Ijarah

If you meet the requirments and wish to apply for Car Ijarah, simply fill out an
application form and bring the following documents to your nearest Meezan Bank
branch.
Individuals/Self-Employed Professionals/Businessmen
1 Copy of CNIC
2 Two recent passport sized photographs
3 Recent Utility Bill (Electric/Gas/Water) received at the residential address
4 Last Six Month Bank Statement
5 Last Six Month Bank Statement of Business (for Businessmen)
6 Certified/Original copy of Recent Pay slip (for Salaried Individuals)
7 Copy of Rent Agreement (if applicable)

ISLAMIC HOUSING FINANCE
Halal home finance

Owning a home is one of life’s most important achievements. It represents one’s
security, stability and is indeed a great blessing. A house provides the essential
shelter, safety and comfort for both oneself and their loved ones. However, rising
property prices, taxes, inflation and currency devaluation are only a few of the
many reasons, which often make purchasing a home a far-fetched dream. However
the possibility of owning one’s own home by paying easy installments provides a
step-by-step way toward complete ownership of a house, saving one from paying a
rent that would only further add to their monthly expense.
Added to that is the desire to stay away from interest based financing and be totally
Riba free, achieving that inner satisfaction and peace of mind one always desires.
Why not have the best of both worlds? Is that not what one work so hard for?
Meezan Bank’s Home Finance can aid in making the dream of owning a house
both easily and Riba free
Islamic Financing on a Diminishing Musharaka basis
With Easy Home you can participate with Meezan Bank in a joint ownership of
your property, where the Bank will provide financing up to 85%. On agreement of
a monthly payment to the Bank of which a component is for the use of the home
(rent), and another for your equity share. The total monthly payment is reallocated
regularly by the partnership to reflect your growing equity and to allocate
increasing amounts to your investment. When you have made the full investment,
which had been agreed, you become the sole owner with a free and clear title to the
property.
With a declining balance or shared equity purchase, your total monthly payment is
reallocated regularly to reflect your growing equity. When the first payment is
made, the larger share is allocated by the Bank towards the use of the home, an
amount that is described in the contract as rent. The balance is allocated towards
building the customers schedule advances, a smaller or diminishing portion is

applied to the use of the property and an increasing portion towards building
equity.
Key Features of Islamic Housing Finance
 High financing amounts
 Maximum financing against property value
 Extremely affordable and competitive installment amounts
 Absolutely flexible repayment plan to suit client needs. Become the sole
owner of your home in as little as a year or over an easy 20 years.
 Flexibility to make partial prepayments
 Minimal processing charges
World Class Service Excellence
Meezan Bank’s committed team of professionals is dedicated to providing you
with the recognition and value you deserve throughout the financing process. At
Meezan Bank, we pride ourselves on making that extra effort, for you our valued
customer and business partner.
Quick Processing Time
Absolutely hassle-free with quick turn-around-times and no burdensome
complexities or excess paper work. It’s simple, Halal, and easy!
Eligibility is Easy
If you are a salaried individual, a self-employed professional, or a businessperson,
residing in Karachi, Lahore, Faisalabad, Multan, Peshawar, Islamabad or
Rawalpindi, between the ages of 25 - 65 years and meet the minimum monthly
income requirement, you can qualify for Easy Home. We at Meezan Bank, as
prescribed by Islamic Shariah, seek to guarantee equal access to financing for all
qualified applicants, while ensuring that the qualification process is bias-free.
FINANCIAL RATIOS
RATIO ANALYSIS:
Ratio analysis involves the method of calculating and interpreting financial ratio to access the
bank’s performance and status. The basic input to ratio analysis is the bank’s income statement
and balance sheet for the period to be examined.

Ratio analysis of bank’s financial statement is of interest to shareholders. Creditors and the
bank’s higher management, both present and perspective shareholders are interested in the
bank’s current and future level of risk and return. These two dimensions directly affect share
price. The bank’s creditors are primarily interested in the short-term liquidity of the bank and its
ability to make interest and principal payments. A secondary interest of the creditors is the
bank’s profitability. In addition, management uses ratios to monitor the bank’s performance from
period to period.
CALCULATION OF RATIOES FROM BANK’S POINT OF VIEW:
From banks’ point of view we can calculate following ratios:

1. Short term ratios
2. Profitability ratios
3. Balance sheet ratios
SHORT TERM FINANCIAL RATIOS

CURRENT RATIO:
Formula: Current Asset/Current Liabilities

Year 2006 2007 2008 2009 (times)
Current assets 10212269 9373577 7108685 13647899
Current liabilities 4848440 3607766 5065513 9517635
Current Ratio 2.10 2.59 1.40 1.43
COMMENTS:

Current ratio is used to judge a bank’s ability to meet its short term obligations. The current ratio
of is good and shows that it is able to remain solvent in the event of adversities. As compared to
previous year the ratio increased this shows that banks assets (advances etc) are increased at
greater quantum than that of liabilities.
1. NET WORKING CAPITAL:
FORMULA: CURRENT ASSETS – CURRENT LIABILITIES
YEARS 2007 2008 2009

RATIO 5765811 2043172 4130264
COMMENT:
Net working capital although not actually a ratio, it is commonly used to measure bank’s/ bank’s
overall liquidity. Here working capital of the bank is increased by
(Rs, 000), 2087092, in the year 2004 by 102%, 2087092/2043172.thats a good sign to run easily.
CASH RATIO:
FORMULA: Cash / Total Assets

2009 10102060/9184459
2008 6803213/5974978
2007 4573752/ 5706656
YEARS 2007 2008 2009

RATIO 0.801 1.13 1.099
COMMENT:

This ratio also shows the liquidity of a company. This means the it tells us that for the payment
of its liabilities the bank has how many liquid, in form of cash, resources at the time of
calculating this ratio.
OVERALL PROFITABILITY RATIOES
RETURN ON ASSETS:
FORMULA: NET PROFIT AFTER TAX /TOTAL ASSETS*100
2009 1595465/124181734*100
2008 1840415/85276070*100
2007 1411928/67178559*100
YEARS 2007 2008 2009

RATIO 2.10% 2.15% 1.28%
COMMENT:
Return on assets which is usually called return on investment (ROI).it measures the overall
effectiveness of management in generating profit with its available assets. The higher return on
total assets is considered best.
Return on assets shows the profit earned by the bank on its present assets.
EARNING PER SHARE (diluted):
FORMULA:
EARNING AVAILABLE FOR COMON STOCK / NO.OF OUTSTANDING SHARES
YEARS 2007 2008 2009

(Rs.) 2.55 1.22 1.71

COMMENTS:
THE BANK’S EARNING PER SHARE (EPS) are generally of interest to present or perspective
shareholders and management. It represents the amount earned on behalf of each outstanding
share of common stock.
ASSET TURNOVER:
FORMULA: Total Income/ Total Assets

2007 1411928/67178559
2008 1840415/85276070
2009 1595465/124181734
YEARS 2007 2008 2009

RATIO 0.021 0.021 0.012
COMMENTS:
This ratio indicates the efficiency with which the bank uses its assets to generate sale. Generally,
the higher a bank’s total assets, the more its efficiency to use assets. This measure is of greater
interest for management then its shareholders. As it tells the relative efficiency of the bank with
which it utilizes the resources to generate output.
The current year efficiency of the bank has increased by 42.85% wrt the previous year.
BALANCE SHEET RATIOS:

LONG TERM FINANCIAL POSITION
DEBT RATIO:
FORMULA : Total liabilities other than equity/ total Assets
Year 2007 2008 2009

Debt liabilities 57864137 74325579 108801476
Net assets 5706656 5974978 9184459
Debt equity Ratio 10.13 12.4 11.84

COMMENTS:
Debt ratio measure the proportion of total assets financed by creditors. The higher the ratio the
greater the amount of others money used in an attempt to generate profit. This ratio indicates that
bank has financed 92.2% of its assets with debt in the year 2004.It decreased this shows that its
borrowing decreased which is a good sign.
ADVANCES TO DEPOSIT RATIO:
FORMULA: ADVANCES / TOTAL DEPOSITS
YEARS 2004 2003

RATIO 0.467 0.407
COMMENT:
It shows advances of the bank as compare to its deposit. This ratio is increased by 14.7 % in 2004
.This shows that advances are increasing with a greater speed than deposits which is good for
bank.
RETURN ON DEPOSIT
FORMULA: NET PROFIT BEFORE TAX / DEPOSITS * 100
YEARS 2004 2003

RATIO 2.58% 2.27%
COMMENTS:
Return on deposit is basically calculated for the purpose of checking the contribution of deposit
in profits. The increase of 0.31% in 2004 is consider a good sign for management because it
shows profitability condition of bank & best utilization of deposits in right way.

NATIONAL BANK OF PAKISTAN
BALANCE SHEET
YEAR 2003-2004
VERTICAL ANALYSIS
Assets
PARTICULARS 2009 2008 2007
(Rs.000.) (Rs.000) (000)
Deposits .06
.04
Borrowing .27
B/P
Other liabilities
Reserve fund
Surplus on revaluation of
assets
ANALYSIS
Increase/Decrease Change in %age

2003-04
Particulars Rs. 000 Rs. 000
Deposits 70079386 17.71953
Borrowing -5484973 -33.1023
B/P 1717933 31.25368
Other liabilities -276438 -1.19192
Reserve fund 2986301 36.71691
Surplus on revaluation of assets 8229041 87.07872
PROPERTY AND ASSETS

PARTICULARS 2004 2003
(Rs.000.) (Rs.000)
Cash 94446552 59420502
Balances with other banks 49784884 24154070
Lending to financial
institutions 10511322 29937857
Investments 144735672 166195619
Advances 221443963 161265760
Other assets 18339514 19059031
Operating fixed assets 9202969 8939483
Deferred tax assets 1275949 -
ANALYSIS

2003-04
Cash 35026050 58.94607
Balances with other banks 25630814 106.1139
Lending to financial institutions -1.9E+07 -64.8895
Investments -2.1E+07 -12.9125
Advances 60178203 37.31617
Other assets -719517 -3.7752
Operating fixed assets 263486 2.947441
Deferred tax assets 1275949

PROFIT AND LOSS ACCOUNT
YEAR 2003-2004
HORIZONTAL ANALYSIS
EXPENDITURES

(Rs.000.) (Rs.000)
Mark up/return/interest expensed 6559398 6735579

Provisions against non performing loans 1515354 1684777
Provisions against diminution in value of investment 185707 459523
Administrative expenses 8878801 8280878
Other provisions 32243 33454
Other charges 8284 22894
ANALYSIS
2003-04
Mark up/return/interest expensed -176181 -2.61568
Provisions against non performing
loans -169423 -10.0561
Provisions diminution in value
investment -273816 -59.587
Administrative expenses 597923 7.220527
Other provisions -1211 -3.6199
Other charges -14610 -63.8158
INCOMES:

(Rs.000.) (Rs.000)
Mark up/return/interest earned 20947333 19452317
Fee, Commission and brokerage
income 5099195 3260863
Dividend income 1273863 1126742
Income from F/C 1008988 710726
Other incomes 875113 2149800
ANALYSIS

2003-04
Mark up/return/interest earned 1495016 7.685542
Fee, Commission & brokerage
income 1838332 56.37563
Dividend income 147121 13.0572
Income from F/C 298262 41.96582
Other incomes -1274687 -59.2933

BALANCE SHEET
YEAR 2003-2004
VERTICAL ANALYSIS
CAPITAL AND LIABILITIES

(Rs.000.) (Rs.000)
Deposits 465571717 395492331
Borrowing 11084790 16569763
B/P 7214671 5496738
Other liabilities 22916147 23192585
Reserve fund 11119613 8133312
Surplus on revaluation of 17679158 9450117
assets
ANALYSIS
2004%AGE 2003%age
PARTICULARS
Deposits 84.6893 84.3317
Borrowing 2.0164 3.5332
B/P 1.3124 1.1721
Other liabilities 4.1685 4.9454
Reserve fund 2.0227 1.7343
Surplus on revaluation of
assets 3.2159 2.0151
Total 97.4252* 97.7318*
ASSETS

2004 2003
PARTICULARS
(Rs.000.) (Rs.000)
Cash 94446552 59420502
Balances with other banks 49784884 24154070
Lending to financial
institutions 10511322 29937857
Investments 144735672 166195619
Advances 221443963 161265760
Other assets 18339514 19059031
Operating fixed assets 9202969 8939483
Deferred tax assets 1275949 -
Total 549740825 468972322
Analysis
2004 %AGE 2003 %AGE

PARTICULARS
Cash 17.1802 12.6704
Balances with other banks 9.0561 5.1504
Lending to financial institutions 1.9121 6.3837
Investments 26.328 35.4383
Advances 40.2815 34.3871
Other assets 3.336 4.064
Operating fixed assets 1.6741 1.9062
Deferred tax assets 0.2321 0
Total 100.0001 100

PROFIT AND LOSS ACCOUNT
YEAR 2003-2004
VERTICAL ANALYSIS
EXPENDITURE:

(Rs.000.) (Rs.000)
Mark up/return/interest expensed 6559398 6735579
Provisions against non performing loans 1515354 1684777
Provisions against diminution in value of investment 185707 459523
Administrative expenses 8878801 8280878
Other provisions 32243 33454
Other charges 8284 22894
TOTAL 17179787 17217105
ANALYSIS
2004 %AGE 2003 %AGE

PARTICULARS
Mark up/return/interest expensed 38.1809 39.1214
Provisions against non performing loans 8.8206 9.7855
Provisions against diminution in value of
investment 1.081 2.669
Administrative expenses 51.6817 48.0968
Other provisions 0.1877 0.1943
Other charges 0.0482 0.133
TOTAL 100 100
INCOME:

(Rs.000.) (Rs.000)
Mark up/return/interest earned 20947333 19452317
Fee, Commission and brokerage
income 5099195 3260863
Dividend income 1273863 1126742
Income from F/C 1008988 710726
Other incomes 875113 2149800
TOTAL 29204492 26700448
ANALYSIS
2004%AGE 2003%AGE

Particulars
Mark up/return/interest
earned 71.7264 72.8539
Fee, Commission & brokg
income 17.4603 12.2128
Dividend income 4.3619 4.2199
Income from F/C 3.4549 2.6619
Other incomes 2.9965 8.0516
TOTAL 100 100
SWOT ANALYSIS
Strengths
 Meezan have moved rapidly in expanding branches network nationally and internationally. More
than 200 branches are working presently throughout Pakistan under conventional and Islamic
banking divisions.
 Very strengthful aspect of the business of the bank is that it has more deposit base which is very
important and giving a strong base to the foundations of the banking business.
 Profitable advances is again a very prominent feature in a sense that the customers are satisfied
rather the bank is not so strong if issuing more loans but according to the policies and
management rules customers and their satisfaction is at the first priority.

 As a business entity and to get more cutting edge in the competitive market Bank Meezan has
been growing since last few years and is very curious in increasing the range of products, thus
providing a vast variety under one roof.
 Again as a business entity bank has to improve the status of the services provided to its customers
so that they should prefer themselves as well as they must advertise the bank in the market
through their own believe and experience as a customer of the bank.
 Transparency in customer dealings is the strength of bank in the sense that they do never deceive
their customers and fair deal is working motto.
 Internationally operating organization
 Provides the complete range of financial services to all segments under one roof.
 Managing customer experience
 Providing value to the stakeholders of the bank.
 Friendly environment of the bank.
 More excellent service regarding home finance
 More excellent service regarding car financing
 More excellent service regarding agri-financing
 Customers refer other people to enjoy different schemes and open their accounts.
Weaknesses
 The majority of people are not well aware about the products of Bank Meezan.
 There should be advertisements especially for home, agri & car loans, Credit Cards.
 Bank official time of closing is 6:00 pm but due Mismanagement of time employees leave their
desk at 8.00 pm which is so hectic and cause employee frustration.

 Many of the customer’s complaint that there should be two or more person who will guide people at
entrance where they have to move, concerned person and department, teach how to fill forms,
slips and cheques.
 The customer have to wait at peak hours on the counter for deposit
 Online payment slips need plenty of time to go through
 No proper name plates are available for the employees table.
 Cultural values are somewhere strong and somewhere are very weak
Opportunities
 The policies of the new government to uplift the economy and pursue financial sector reforms are
expected to yield positive results in the banking industry of the country. The Bank Meezan is very
well praised to avail promising opportunities.
 As a result of the different steps taken by the Government regarding the betterment of the
economy, small borrowers are attracted to get the financing and start small businesses. So, the
Bank Meezan has an opportunity to attract the customers by giving them attractive schemes.
 The need of privatization has made people to switch to banks to satisfy their needs of lending and
borrowing. This not only increases the deposits but also the credit business.
 Bank Meezan is surrounded by many competitors it has an opportunity to aggressive marketing to
increase its business.

 Government is taking very bold steps to promote IT in Pakistan Bank Meezan has an opportunity to
improve in IT stock exchange is very volatile and takes immediate effect so in times of crises
conservative investors turns to saving deposits.
Threats
 Bank Meezan has many competitors who are continuously increasing their products and marketing
aggressively it may cause its customer to shift to its competitors. The Competition has become
severe by the entrants of so many banks, So to exist one will have to prove himself in its services
through excellent management and will have to satisfy its shareholders. Otherwise he will be out
the market.
 The decrease purchasing power of consumer in the current economic situation of the country
affecting the business activity speed too much and the result is the low investment from the
investors in new projects can create problem for the bank because it is working a lot in trade.
 The privatization of other banks is also a threat for the Bank. Due to the privatization of the
different bank e.g. MCB; the competition has increased a lot. Furthermore many private banks
have come in the sector due to which it is becoming more difficult day by day to attract the
customers.
 The biggest threat in the banking sector is the continuous downfall of the country economy since
the last few years. If this downfall remains for more few years then it may be the great hindrance in
achieving the Bank’s objectives.

RECOMMENDATIO
NS
Finally, here are some suggestions for Meezan Bank Limited. These suggestions are based on my
observation while my stay at bank.
 This is a routine practice that in order to give personalized services to the customer, bank staff tries
to fill all the columns of AOF with their own handwriting, which is wrong. AOF must be filled in by
the customers. Bankers should avoid to fill in the AOF because it can create problem if the
address, title of account or any other information provided by the customer has not been written
properly. Customer may be affected or he may claim that the information was not provided by him,

but if AOF is filled by the customer then bankers will not held responsible for any incorrect
information provided by the customer.
 Under no circumstances chequebook should be given to the customer if the account formalities are
incomplete.
 There are two officers involved in cash deposit process, which is time consuming. Cashier should
be given certain powers to receive cash of US$ to provide prompt services.
 Similarly, there are two officers involved in cheque payment process, which is time consuming.
Cashier should be given certain powers to pay cheques up to Rs. 25000/- to provide prompt
services.
 Cheques, which are drawn on Bank Meezan Branch and returned unpaid in clearing, are not
reflected in the statement of account of the customers. These cheques must be reflected in the
accounts so that credibility of the customers may be assessed.
 Audit should be held internally, rather there should be an audit department in the branch to make
audit on daily basis. This can become so, helpful as a different banks are having this department of
their own.
 Demand draft issuance procedure is very time consuming, as the has to wait for than almost half
an hour to get a Demand Draft. This operation must be one window operation.
 ATM machine is almost out of order most of the times. This facility is very important to provide to
the customers as they want to cash the money in no time and this is also not worthy for the bank
that its employees are using the ATMs of MCB or PICIC bank for the delivery of cash.
 No nameplates for the employees therefore customer can’t know the designation and name of any
of the employees working there in the bank.


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PRAISE TO ALLAH…

“LORDS OF THE LORDS, THE COMPENSATE,

MASTER OF THE DAY OF THE JUDGMENT!

YOU ALONE WE WORSHIP.

AND TO YOU ALON

AND TO YOU ALONE WE LOOK FOR HELP

INTERNSHIP REPORT Page 1

Business environment are becoming more and more

Internship is an integral part of the study of BBA

INTERNSHIP REPORT Page 2

Praise to Allah, who bestowed upon us the potential

I wish to express deep sense of gratitude to Mr.

I am thankful to all those people who helped me a

INTERNSHIP REPORT Page 3

The members of the Shariah Board are:

INTERNSHIP REPORT Page 4

The branch at CHOWK SHAHEEDAN Multan operates in different Departments.

INTERNSHIP REPORT Page 5

“To be a premier Islamic bank...”

Service Quality Mission

INTERNSHIP REPORT Page 6

INTERNSHIP REPORT Page 7

 H.E Sheikh Ebrahim bin Khalifa Al-Khalifa (Chairman)

 Justice (Retd.) Muhammad Taqi Usmani (Chairman)

INTERNSHIP REPORT Page 8

INTERNSHIP REPORT Page 9

INTERNSHIP REPORT Page 10

INTERNSHIP REPORT Page 11

3. Service quality department

 Fill in the Account Opening Form,

The current accounts can be in these options as well:

Limited Companies Account

INTERNSHIP REPORT Page 13

Club / Societies / Associations

INTERNSHIP REPORT Page 14

INTERNSHIP REPORT Page 15

Riba Free Rupee Saving Account

Its key features are:

 Minimum amount required to open account Rs. 10,000

INTERNSHIP REPORT Page 16

MEEZAN BACHAT ACCOUNT (MBA)

 Highest expected rate of return

INTERNSHIP REPORT Page 17

INVESTMENT PRODUCTS OF MBL

Riba Free Certificate of Islamic Investment (COII)

INTERNSHIP REPORT Page 18

 Monthly profit on 1, 2, 3 and 5 years (Minimum Investment Rs. 200,000)

Enjoy a range of valuable features including:

 Minimum investment amount: Rs. 50,000/-

Meezan Amdan Certificate (MAC)

Its key features are:

INTERNSHIP REPORT Page 19

 Minimum investment amount: PKR 1,000,000

Monthly Mudarabah Certificate (MMC)

 A 100% halal investment in strict compliance with Shariah

INTERNSHIP REPORT Page 20

Its key features are:

 High and very competitive returns

 Six monthly profit payment to your current or saving account with us

 Long-term security ensured. Minimum investment amount: USD 10,000/-

Meezan Islamic Institution Deposit Account (MIIDA)

 A 100% halal investment in strict compliance with Shariah

INTERNSHIP REPORT Page 21