Internship Report on

Meezan bank Main Branch,

Sahiwal

Submitted by: Zeeshan Ali

Registration # BSAF-20-45

Supervised by: Sir Shamraiz Bhatti

Department of commerce university of

Sahiwal
 Meezan bank Main

Branch,
Submitted by: Zeeshan Ali
Registration # BSAF-20-45

Supervised by: Sir Shamraiz Bhatti

This internship report is submitted in partial fulfillment of the

requirements for degree of BS Accounting and Finance awarded by the
University of Sahiwal

Department of commerce university of

Sahiwal
 Department of Commerce university of
Sahiwal

Approval Sheet
.

Approval Committee

1. External Examiner

Mr. Signature

2. Supervisor

Dr. Shaheera Amin Signature

3. Head of Department

Dr. Shaheera Amin . Signature

 DEDICATION

All the efforts in compiling this report are

Dedicated To

My Loving Parents

&

My Honorable Faculty Members of CIIT, specially to

My supervisory team

Who helped me in this Achievement?

Abstract

The development of skills to perform well in professional life has become a dire need every BS
Graduate. The very purpose, an internship is to acquaint the BS with empirical business
practices, particularly in banks which is nowadays the main area of interest of most of the
graduates whether an information technologist or a business graduate. As a compulsory
requirement of Professional Degree in MBA in Finance, I opted to join Meezan Bank, to fulfill
my degree requirement. My reason for choosing Meezan Bank was to enhance my skills and
techniques, so that to provide myself the opportunity to cope with real life situation and I found
Meezan Bank one of the best banking chains in Pakistan. To better understand the report, my
recommendation would be to look into different parts mainly covering the overview of Meezan
Bank, overall management of Finance and
Accounts. The Meezan Bank organizational model has been thoroughly studied and analyzed.
Acknowledgements

God Al-Mighty is Worthy of all acknowledgements Whose Grace has no limits and who gave
me the strength and will to complete this report. Secondly I am thankful to my parents who
supported me morally and financially for the last four years despite of their limited resources and
social pressures. Special thanks to my internship supervisor Miss Sir Shamraiz Bhatti for his
kind co-operation, guidance and support to compile this report. I would like to pay special thanks
to the bank Manager of Meezan Bank main Branch Sahiwal for his constant guidance and
motivation during my stay in the bank. And last but not the least, the entire staff at MCB Bank,
for being very cooperative and courteous with me and providing me with the congenial
environment at the bank during my internship stay at the bank. Special gratitude to all my
honorable teachers, who taught me different courses during my stay in the CIIT with addict zeal
and zest. I am also thankful for unturned cooperation of Mr. Qureshi (Chaha), who help me for
the formatting of this report.
Executive Summary

Banks play a significant role in mobilizing savings thus taking great part in capital formation
process. Their role in development of a country has increased, with the advent of modern
technology. The intense competition, among banks, the privatization of the financial institution
and financial liberalization in general are gradually and continuously making the banking sector
efficient and effective. Because of the reasons mentioned above banking has always been the
main field of interest for most of the students of business administration. It is also an academic
requirement to undergo internship therefore the main purpose behind this report is partial
fulfillment of requirements, for the degree of MBA. The report is categorized into the following
chapters: In the first chapter introduction to the report, background of study, scope of the study,
merits, limitations and scheme of the study are given. The second chapter is about history of
banking, banking in Pakistan, introduction to the organization, its historical background, role and
functions of organization, its core values, and miscellanies topics related to banking. The third
chapter is the major portion of the report. It covers the organizational structure of MCB Bank,
the different departments working at MCB Bank and the different financial products of MCB
Bank. The fourth chapter of the report covers the analysis of report which has been observed. It
includes the financial analysis. Further more it analysis in detail strengths, weaknesses,
opportunities and threats of the organization. SWOT analysis no doubt acts as a mirror for the
management to know the strengths and weaknesses so that it can take appropriate corrective
actions. In Fifth Chapter the detail Findings & Recommendations are discussed.
Chapter 01
Introduction to the Report
This Internship report is aimed at studying and analyzing Meezan Bank (MCB) in
general and its branch office at Sahiwal, in particular. The main purpose of the internship is to
prepare and submit a report as a partial fulfillment for the award of BS accounting and finance
degree in finance from University of Sahiwal.

1.1 Background of the Study

Pakistan’s economy by the Grace of God is growing with an appreciable rate. Sound banking system
for this growing economy is the need of the day, which must meet the financial needs of the growing
agriculture, industrial and commercial/services sector. Muslim Commercial Bank since 1947 has
played a pivotal role in the development of Pakistan. Like other multinational banks, MCB has
adopted a customer-oriented approach, in order to provide quality products according to customer
needs and stands as a role model for the other banks. In this report I have tried to cover all the
aspects of MCB’s banking operation.

1.2 Purpose of the Internship.

The primary purpose of the internship is to fulfill the academic requirements of my study. The
secondary purpose of the internship is to evaluate the banking practices, in corporate world and to
compare these practices with the contemporary banking practices. The purpose of the study also
is, to do practical work, in the field and apply the knowledge of classroom lectures to the real life
situations, which thus enables a student to be a future banking practitioner. Besides this, some
other purposes are associated, which includes:
 To give a comprehensive review of MCB.
 To analyze MCB’s organizational, financial and other aspects.
 To identify the areas of the bank where there is some room for improvement.
 To present some feasible solutions for the problems pertaining to Meezan bank
 To apply the knowledge gained in practical field.

1.3 Merits of the Report

The study conducted will benefit the finance students in particular and banking students
in general because the third chapter of this report comprehensively encompasses most of
the aspects of banking, followed by SWOT analysis, conclusion and recommendations.
Furthermore, MCB Mansehra branch may also benefit from the recommendations made
at the end of the report.
1.4 Scope of Work/Report
Banking has a very broad scope. In only eight weeks of internship, it is very difficult to
understand each and every aspect of bank. Due to the barriers of limited time and space,
the scope of work is usually confined. However this study of MCB will help the
management to identify their weaknesses and threats and over come them by using their
strengths and capitalizing on the opportunities. This internship report will be source of
financial data for all those who are interested in financial statement analysis of MCB.
1.5 Methodology of the Report.
This study involves two types of data for report writing.
1.5.1 Primary Sources:
 Interviews and discussion with staff members
 Personal observations
 Direct dealing with bank clients.
1.5.2 Secondary Sources
 Annual reports of MCB
 Brochures & Manuals.
 Websites
Previous Internship Reports.

1.6 Limitations of the Report

As mentioned earlier, eight weeks of time is very limited for a complete observation of an
institution like MCB. Moreover some of the data was confidential and was not made available to
me. Sometimes due to the busy schedule of the bank, complete information regarding different
activities was not provided in time.
1.7 Scheme of the Report
This internship report is divided into five chapters as: Chapter one includes background, purpose,
scope, limitations, methodology, and scheme of the report.
Chapter two includes background and history of banking in Pakistan, background of MCB, roles,
functions and branches.
Chapter three includes organizational structure of MCB, organizational charts and departments
of MCB.
Chapter four includes financial, SWOT analysis and findings based on work in chapter three.
Chapter five includes recommendations of the study based on the analysis in the previous chapter.
Chapter 02
Introduction to Meezan Bank

2.1 Evolution of Banking

The evolution of banking, including institutions like Meezan Bank, has been a fascinating
journey reflecting societal, technological, and regulatory changes over centuries. Here's a
brief overview:

1. **Early Banking**: Historically, banking traces back to ancient civilizations where

moneylenders facilitated trade by offering loans and holding deposits. Ancient temples in
Babylon acted as early banks, storing grain and valuables.

2. **Medieval Banking**: Banking evolved during the Middle Ages with the emergence
of Italian city-states' merchant banks. These institutions provided services such as money
lending, currency exchange, and safeguarding assets.

3. **Rise of Modern Banking**: The 17th century saw the rise of modern banking in
Europe. The Bank of England, established in 1694, played a crucial role by issuing
banknotes and acting as a lender to the government. This era also witnessed the
development of commercial banks offering various financial services.

4. **Industrial Revolution**: The Industrial Revolution spurred the growth of banking,

with banks financing industrial projects and facilitating trade and commerce. This period
also saw the proliferation of joint-stock banks and the expansion of banking networks.

5. **20th Century Innovations**: The 20th century witnessed significant banking

innovations, including the introduction of electronic banking, credit cards, ATMs, and
online banking. This era also saw the establishment of central banks tasked with
regulating monetary policy and ensuring financial stability.

6. **Globalization and Deregulation**: The latter half of the 20th century and early 21st
century saw increased globalization and deregulation, leading to the growth of
multinational banks and financial conglomerates. This period also witnessed the
emergence of Islamic banking, including institutions like Meezan Bank, which operate in
accordance with Islamic principles.

7. **Digital Transformation**: The 21st century brought about a digital revolution in

banking, with the widespread adoption of online and mobile banking, fintech innovations,
block chain technology, and digital currencies. Banks like Meezan Bank have embraced
digitalization to enhance customer experience and improve operational efficiency.

Throughout this evolution, banking has adapted to changing economic landscapes,

technological advancements, and regulatory frameworks. Meezan Bank, as an Islamic
bank, has contributed to this evolution by offering Sharia-compliant financial products
and services, catering to the needs of a diverse customer base.

2.2 Banking in Pakistan

Banking in Pakistan has undergone significant evolution since the country's
independence in 1947. Here's a brief overview of the key developments:

1. **Early Years**: In the early years of Pakistan's independence, the banking sector was
relatively underdeveloped, with a few domestic and foreign banks operating primarily in
urban centers. The State Bank of Pakistan (SBP) was established in 1948 as the central
bank to regulate and supervise the banking industry.

2. **Nationalization**: In the 1970s, the government of Pakistan nationalized the

banking sector, leading to the acquisition of major banks by the government. This period
saw the creation of large state-owned banks, such as National Bank of Pakistan (NBP),
Habib Bank Limited (HBL), and United Bank Limited (UBL), which dominated the
banking landscape.

3. **Privatization and Liberalization**: In the late 1980s and early 1990s, Pakistan
embarked on a process of privatization and liberalization, which included the
privatization of some state-owned banks. This period witnessed the entry of new private
banks, including MCB Bank, Askari Bank, and Allied Bank.

4. **Islamic Banking**: Pakistan has also been a pioneer in Islamic banking, with the
establishment of Meezan Bank in 1997 as the first Islamic bank in the country. Since
then, Islamic banking has grown significantly, with several Islamic banks and Islamic
windows of conventional banks offering Sharia-compliant financial services.

5. **Regulatory Reforms**: Over the years, Pakistan has implemented various regulatory
reforms to strengthen the banking sector and enhance financial stability. The SBP plays a
crucial role in formulating and implementing monetary policy, supervising banks, and
promoting financial inclusion.

6. **Digital Transformation**: In recent years, there has been a rapid adoption of digital
banking services in Pakistan, driven by increasing internet and smartphone penetration.
Banks have invested in digital channels, such as mobile banking apps and internet
banking platforms, to offer convenience and accessibility to customers.
7. **Challenges and Opportunities**: Despite progress, the banking sector in Pakistan
faces challenges such as low financial literacy, cyber threats, and compliance with
international standards. However, there are also opportunities for growth, including
expanding financial services to the unbanked population, fostering innovation through
finch collaboration, and leveraging Islamic finance expertise.

Overall, banking in Pakistan has evolved significantly, reflecting the country's economic
development, regulatory changes, and technological advancements.

2.3 Historical Background of Meezan Bank

Meezan Bank Limited is the first and largest Islamic commercial bank in Pakistan.
Established in 1997, it has played a pivotal role in shaping the Islamic banking landscape
in the country. Here's a detailed history and background of Meezan Bank:

1. **Founding and Establishment**: Meezan Bank was founded on January 27, 1997, in
Karachi, Pakistan. It was established with the collaboration of leading Islamic scholars,
bankers, and businessmen, including renowned Islamic economist Dr. Muhammad Imran
Ashraf Usmani. The bank was granted a license by the State Bank of Pakistan to operate
as a full-fledged Islamic commercial bank.

2. **Vision and Mission**: From its inception, Meezan Bank has been driven by a vision
to establish Islamic banking as banking of first choice. Its mission revolves around
providing innovative and customer-centric Sharia-compliant banking solutions while
maintaining the highest standards of integrity and service excellence.

3. **Early Years and Growth**: Meezan Bank started its operations with a single branch
in Karachi. However, it quickly expanded its branch network across Pakistan, catering to
the growing demand for Islamic banking services. The bank's commitment to Sharia
compliance, ethical practices, and customer satisfaction contributed to its rapid growth
and popularity.

4. **Product and Service Offerings**: Meezan Bank offers a comprehensive range of

Islamic banking products and services, including current accounts, savings accounts,
investment accounts, financing facilities, and wealth management solutions. It
distinguishes itself by ensuring that all its financial products and transactions are
compliant with Islamic principles, which prohibit interest (riba), uncertainty (gharar), and
unethical activities.

5. **Technological Advancements**: Over the years, Meezan Bank has embraced

technological advancements to enhance its service delivery and operational efficiency. It
introduced online banking, mobile banking, and other digital channels to provide
convenient access to banking services for its customers.
6. **Awards and Recognition**: Meezan Bank has received numerous awards and
accolades for its contributions to the Islamic banking industry and its commitment to
excellence. It has been recognized internationally for its Sharia-compliant practices,
corporate governance standards, and financial performance.

7. **Social Responsibility**: Meezan Bank is actively involved in corporate social

responsibility (CSR) initiatives aimed at supporting education, healthcare, poverty
alleviation, and community development in Pakistan. It believes in giving back to society
and making a positive impact on the communities it serves.

In summary, Meezan Bank's history and background reflect its pioneering role in
promoting Islamic banking in Pakistan, its commitment to Sharia compliance and ethical
banking practices, and its dedication to providing innovative financial solutions to its
customers while contributing to the socioeconomic development of the country.

2.4 Credit rating

Meezan Bank Limited holds strong credit ratings from reputable credit rating agencies.
Credit ratings are an assessment of a company's creditworthiness and ability to meet its
financial obligations. They provide investors and stakeholders with an indication of the
risk associated with investing in or lending to a particular entity.

Here are the credit ratings of Meezan Bank from some prominent credit rating agencies in
Pakistan:

1. **JCR-VIS Credit Rating Company Limited**: Meezan Bank has consistently

maintained a long-term entity rating of "AA" (Double A) and a short-term rating of "A-
1+" (A-One Plus) from JCR-VIS. These ratings signify a very high credit quality and
strong capacity for timely repayment of financial commitments.

2. **Pakistan Credit Rating Agency Limited (PACRA)**: Meezan Bank has been
assigned long-term and short-term entity ratings of "AA" (Double A) and "A1+" (A-One
Plus), respectively, by PACRA. These ratings indicate a very low credit risk and strong
capacity for timely payment.

3. **Fitch Ratings**: Fitch Ratings has assigned Meezan Bank a long-term foreign and
local currency issuer default rating (IDR) of "BB-" with a stable outlook. Fitch Ratings'
ratings are internationally recognized and provide investors with an assessment of credit
risk.

It's important to note that credit ratings are subject to change based on various factors
such as economic conditions, regulatory environment, and the financial performance of
the bank. Investors and stakeholders should regularly monitor these ratings for updates
and changes.
For the most current and detailed information on Meezan Bank's credit ratings, it's
advisable to refer to the latest reports and announcements from the credit rating agencies
mentioned above or directly from Meezan Bank's investor relations department.

2.5 Awards and Achievements

Meezan Bank has received numerous awards and accolades for its contributions to the
Islamic banking industry and its commitment to excellence. Here are some of the notable
awards and achievements of Meezan Bank:

1. **Best Bank Award**: Meezan Bank has been recognized as the "Best Bank -
Islamic" by several prestigious institutions and publications, both nationally and
internationally. These awards acknowledge the bank's leadership in the Islamic banking
sector and its commitment to delivering innovative and customer-centric Sharia-
compliant financial solutions.

2. **Corporate Governance Excellence Award**: Meezan Bank has been honored with
awards for corporate governance excellence, highlighting its adherence to best practices
in corporate governance and transparency. These awards underscore the bank's
commitment to maintaining high ethical standards and fostering trust among its
stakeholders.

3. **Social Responsibility Recognition**: Meezan Bank has received recognition for its
corporate social responsibility (CSR) initiatives aimed at supporting education,
healthcare, environmental sustainability, and community development. These awards
reflect the bank's dedication to making a positive impact on society and contributing to
the socioeconomic development of Pakistan.

4. **Islamic Finance Awards**: Meezan Bank has been awarded for its achievements in
Islamic finance, including the development of innovative Sharia-compliant products and
services. These awards recognize the bank's role in advancing the Islamic banking
industry and promoting financial inclusion through ethical and inclusive banking
practices.

5. **Customer Satisfaction Awards**: Meezan Bank has been acknowledged for its
focus on customer satisfaction and service excellence. These awards reflect the bank's
commitment to delivering superior customer experiences and meeting the diverse
financial needs of its customers across Pakistan.

6. **Financial Performance Recognition**: Meezan Bank has been recognized for its
strong financial performance and sustainable growth. These awards highlight the bank's
robust business model, prudent risk management practices, and consistent profitability in
challenging economic environments.
7. **Digital Banking Excellence Awards**: Meezan Bank has received awards for its
digital banking initiatives, including online banking, mobile banking, and digital payment
solutions. These awards recognize the bank's efforts to leverage technology to enhance
customer convenience, accessibility, and security in banking transactions.

Overall, these awards and achievements underscore Meezan Bank's position as a leader in
the Islamic banking industry, its commitment to ethical banking practices, and its
dedication to delivering value to customers, shareholders, and society as a whole.

2.6 Leading banking sector entity

Meezan Bank stands out as a leading banking sector entity in Pakistan, particularly within
the realm of Islamic banking. Here are some key factors that contribute to its status as a
prominent player in the country's banking sector:

1. **Market Share**: Meezan Bank holds a significant market share in the Islamic
banking segment of Pakistan. It is the largest Islamic commercial bank in the country,
with a substantial presence in both urban and rural areas. The bank's extensive branch
network and customer base contribute to its leading position in the market.

2. **Financial Performance**: Meezan Bank has demonstrated strong financial

performance over the years, consistently reporting robust earnings and profitability. The
bank's prudent risk management practices, diversified revenue streams, and efficient
operations contribute to its financial strength and resilience in the face of economic
challenges.

3. **Sharia Compliance**: Meezan Bank is widely recognized for its commitment to

Sharia compliance in all aspects of its operations. It adheres to strict Islamic principles
and guidelines set forth by Sharia scholars, ensuring that its products, services, and
transactions are free from interest (riba) and comply with ethical standards. This
commitment to Sharia integrity enhances the bank's reputation and attracts customers
seeking Islamic financial solutions.

4. **Product Diversity**: Meezan Bank offers a comprehensive range of Sharia-

compliant products and services to cater to the diverse financial needs of its customers.
These include current accounts, savings accounts, investment accounts, financing
facilities (such as Murabaha, Ijarah, and Musharakah), wealth management solutions, and
trade finance services. The bank's product diversity and innovation contribute to its
competitiveness and customer satisfaction.

5. **Technology and Innovation**: Meezan Bank embraces technology and innovation

to enhance customer experience and operational efficiency. It invests in digital banking
solutions, such as online banking, mobile banking, and digital payment services, to
provide convenient access to banking services. The bank also leverages fintech
partnerships and advancements to stay ahead in the rapidly evolving digital landscape.
6. **Corporate Governance**: Meezan Bank upholds high standards of corporate
governance and transparency in its operations. It follows best practices in corporate
governance, complies with regulatory requirements, and maintains effective risk
management and internal control systems. These practices instill confidence among
stakeholders and contribute to the bank's credibility and sustainability.

Overall, Meezan Bank's leading position in the banking sector of Pakistan is attributed to
its market share, financial performance, Sharia compliance, product diversity,
technological innovation, and commitment to corporate governance. As a key player in
Islamic banking, the bank continues to drive growth, promote financial inclusion, and
contribute to the development of Pakistan's economy.

2.7 Role of MCB in Banking Sector

Meezan Bank plays a significant role in the banking sector of Pakistan, particularly in the
realm of Islamic banking. Here are some key aspects of its role:

1. **Pioneering Islamic Banking**: Meezan Bank is credited with pioneering Islamic

banking in Pakistan. As the country's first and largest Islamic commercial bank, it has
played a crucial role in shaping the Islamic finance landscape. Meezan Bank's
establishment opened up avenues for Sharia-compliant financial services, catering to the
needs of individuals and businesses adhering to Islamic principles.

2. **Market Leadership**: Meezan Bank holds a prominent position in the Islamic

banking sector of Pakistan. Its extensive branch network, wide range of Sharia-compliant
products and services, and strong brand reputation have contributed to its market
leadership. The bank's success has encouraged competition and innovation in the Islamic
banking industry, benefiting customers and promoting financial inclusion.

3. **Financial Inclusion**: Meezan Bank has been instrumental in promoting financial

inclusion in Pakistan by offering Islamic banking solutions to a diverse customer base.
Through its branch network, digital channels, and outreach initiatives, the bank reaches
both urban and rural areas, providing banking services to underserved segments of the
population.

4. **Sharia Compliance**: Meezan Bank places a strong emphasis on Sharia compliance

in all its operations. It follows strict guidelines set forth by Sharia scholars to ensure that
its products and services adhere to Islamic principles, including the prohibition of interest
(riba) and unethical activities. By maintaining Sharia integrity, Meezan Bank instills
confidence among customers seeking ethical and transparent financial solutions.

5. **Product Innovation**: Meezan Bank continuously strives to innovate and diversify

its product offerings to meet the evolving needs of its customers. The bank introduces
new Sharia-compliant products and services, such as savings accounts, investment
accounts, financing facilities, and wealth management solutions, tailored to the
requirements of individuals, businesses, and institutions.

6. **Corporate Social Responsibility (CSR)**: Meezan Bank actively engages in CSR

initiatives aimed at making a positive impact on society. It supports various social
welfare programs, including education, healthcare, environmental sustainability, and
community development. Through its CSR efforts, the bank demonstrates its
commitment to corporate citizenship and contributing to the socioeconomic development
of Pakistan.

Overall, Meezan Bank's role in the banking sector of Pakistan extends beyond financial
intermediation. It serves as a catalyst for Islamic finance, promotes financial inclusion,
upholds Sharia compliance, fosters product innovation, and fulfills its corporate
responsibility to society.

2.8 MCB’s Role in NWFP

Meezan Bank operates nationwide, including in the Khyber Pakhtunkhwa (formerly
known as NWFP) province of Pakistan. While MCB Bank is a separate entity from
Meezan Bank, we can discuss Meezan Bank's role in the province and compare it with
MCB Bank's presence and influence in Khyber Pakhtunkhwa.

1. **Branch Network**: Meezan Bank has a presence in Khyber Pakhtunkhwa with

branches strategically located in major cities and towns across the province. These
branches provide a range of Sharia-compliant banking services to individuals, businesses,
and institutions, contributing to financial inclusion and economic development in the
region.

2. **Financial Services**: In Khyber Pakhtunkhwa, Meezan Bank offers a wide range of

Islamic banking products and services, including current accounts, savings accounts,
investment accounts, financing facilities, and wealth management solutions. These
services cater to the diverse financial needs of the local population and businesses,
aligning with the principles of Sharia finance.

3. **Economic Contribution**: Meezan Bank's operations in Khyber Pakhtunkhwa

contribute to the province's economic growth by providing financing for businesses,
supporting entrepreneurship, and facilitating trade and commerce. The bank's presence
stimulates economic activity and employment opportunities, contributing to the overall
prosperity of the region.

4. **Community Engagement**: Meezan Bank engages in community development

initiatives in Khyber Pakhtunkhwa, supporting education, healthcare, environmental
sustainability, and social welfare programs. Through its corporate social responsibility
(CSR) efforts, the bank makes a positive impact on the lives of people in the province,
fostering goodwill and enhancing its reputation as a responsible corporate citizen.

While MCB Bank is a prominent player in the Pakistani banking sector, it is a

conventional bank and operates separately from Meezan Bank, which is an Islamic bank.
MCB Bank may also have a presence in Khyber Pakhtunkhwa, offering conventional
banking services to customers in the province. Comparing the roles of Meezan Bank and
MCB Bank in Khyber Pakhtunkhwa would involve assessing their respective branch
networks, market share, product offerings, and contributions to the local economy and
community development.

2.9 Functions of MCB

Meezan Bank of Pakistan serves as a pioneering force in the Islamic banking sector,
offering a diverse array of Sharia-compliant financial products and services. Its functions
encompass facilitating current and savings accounts, providing Islamic financing
solutions such as Murabaha, Ijarah, and Musharakah, offering investment opportunities
through Islamic investment accounts, and delivering wealth management services.
Additionally, Meezan Bank plays a vital role in promoting financial inclusion by
extending its operations to both urban and rural areas, fostering economic growth, and
contributing to the socioeconomic development of Pakistan.

2.10 Acceptance of Deposits

Meezan Bank of Pakistan accepts deposits from individuals, businesses, and institutions
in compliance with Islamic principles. These deposits can take various forms, including
current accounts, savings accounts, term deposits, and investment accounts. Customers
can deposit funds into their accounts through branches, ATMs, online banking, and
mobile banking channels. Meezan Bank ensures that all deposit products are Sharia-
compliant, adhering to principles such as the prohibition of interest (riba) and uncertainty
(gharar), while offering competitive returns and convenient banking services to
depositors.

2.11 Providing Funds

Meezan Bank of Pakistan provides funds through various Islamic financing facilities to
individuals, businesses, and institutions. These funds are offered in accordance with
Sharia principles, ensuring transactions are ethical and compliant. Some common forms
of financing provided by Meezan Bank include:

1. **Murabaha**: Meezan Bank provides Murabaha financing, where the bank purchases
goods or assets on behalf of the customer and sells them to the customer at a markup,
payable in installments.
2. **Ijarah**: Meezan Bank offers Ijarah financing, which involves leasing assets to
customers for a specified period, with rental payments structured to ultimately transfer
ownership to the lessee.

3. **Musharakah**: Meezan Bank facilitates Musharakah financing, where the bank and
the customer enter into a joint venture agreement to undertake a business project, with
profits and losses shared based on the agreed terms.

4. **Mudarabah**: Meezan Bank may engage in Mudarabah financing, acting as the

financier while the customer provides expertise and labor, with profits shared according
to a predetermined ratio.

5. **Diminishing Musharakah**: Meezan Bank offers Diminishing Musharakah

financing, a form of partnership where the bank and the customer jointly own an asset,
with the customer gradually purchasing the bank's share over time until full ownership is
transferred.

6. **Trade Finance**: Meezan Bank provides trade finance facilities to facilitate

international and domestic trade transactions, such as letters of credit, import and export
financing, and trade guarantees.

Through these Islamic financing facilities, Meezan Bank assists individuals, businesses,
and institutions in meeting their funding requirements while adhering to Sharia principles
and promoting ethical and responsible financial practices.

2.12 Number of Branches

Here's a table outlining the growth of Meezan Bank's branches over the years:

| Year | Number of Branches |

|------|--------------------|
| 1997 | 1 |
| 2000 | 11 |
| 2005 | 144 |
| 2010 | 201 |
| 2015 | 571 |
| 2020 | 800 (Approx.) |
| 2024 | 900 (Approx.) |

Please note that the number of branches in 2020 and 2024 are approximate figures.
Meezan Bank's branch network has expanded significantly since its inception, reflecting
its growth and presence in the banking sector of Pakistan.
2.13 Ethical Values
Meezan Bank of Pakistan upholds a set of ethical values that guide its operations and
interactions with stakeholders. These values reflect the bank's commitment to conducting
business with integrity, fairness, and transparency while adhering to Islamic principles.
Here are some of the ethical values promoted by Meezan Bank:

1. **Sharia Compliance**: Meezan Bank strictly adheres to Sharia principles in all its
operations, ensuring that its products, services, and transactions are free from interest
(riba) and comply with ethical standards. The bank seeks guidance from Sharia scholars
to ensure compliance and transparency in its banking practices.

2. **Integrity**: Meezan Bank conducts its business with honesty, integrity, and
professionalism. It upholds high ethical standards and fosters a culture of trust and
accountability among its employees, customers, and stakeholders.

3. **Customer Focus**: Meezan Bank places the utmost importance on serving its
customers' needs with excellence and empathy. It strives to build long-term relationships
based on mutual respect, understanding, and trust, while providing superior service and
value to its customers.

4. **Fairness**: Meezan Bank believes in treating all stakeholders fairly and equitably. It
ensures fairness in its dealings with customers, employees, suppliers, and partners,
promoting a culture of inclusivity and respect for diversity.

5. **Social Responsibility**: Meezan Bank is committed to fulfilling its corporate social

responsibility (CSR) by making a positive impact on society. It supports various social
welfare programs, including education, healthcare, environmental sustainability, and
community development, contributing to the socioeconomic well-being of communities
across Pakistan.

6. **Transparency**: Meezan Bank promotes transparency in its operations, policies,

and communications. It provides clear and accurate information to stakeholders, enabling
informed decision-making and fostering trust and confidence in the bank's activities.

7. **Compliance and Governance**: Meezan Bank complies with regulatory

requirements and follows best practices in corporate governance. It maintains effective
risk management and internal control systems to ensure compliance with laws,
regulations, and ethical standards, safeguarding the interests of its stakeholders.

Overall, Meezan Bank's ethical values reflect its commitment to upholding Islamic
principles, promoting integrity, fairness, transparency, and social responsibility in its
business practices, and building trust and confidence among its stakeholders.
2.14 Computerization of Meezan bank of pakistan

Meezan Bank of Pakistan has embraced computerization and technological advancements

to enhance its operations, improve customer service, and ensure efficiency in banking
transactions. Here are some key aspects of the computerization of Meezan Bank:

1. **Core Banking System**: Meezan Bank utilizes a robust core banking system, which
serves as the backbone of its operations. This system enables real-time processing of
transactions, centralized customer data management, and seamless integration of various
banking functions across branches and channels.

2. **Online Banking**: Meezan Bank offers online banking services, allowing customers
to access their accounts, perform transactions, and manage their finances conveniently
through the bank's website or mobile banking app. Online banking features include
account balance inquiries, fund transfers, bill payments, account statements, and
transaction history.

3. **Mobile Banking**: Meezan Bank provides mobile banking facilities, enabling

customers to carry out banking activities using their smartphones or tablets. Mobile
banking services include account management, fund transfers, bill payments, mobile top-
ups, and branch/ATM locators, accessible anytime and anywhere.

4. **ATM Network**: Meezan Bank has a widespread network of automated teller

machines (ATMs) equipped with advanced functionalities. Customers can use Meezan
Bank ATMs to withdraw cash, deposit funds, transfer money between accounts, check
account balances, and perform other self-service banking tasks securely and
conveniently.

5. **Electronic Funds Transfer**: Meezan Bank facilitates electronic funds transfers

through various channels, including interbank funds transfer systems such as Real-Time
Gross Settlement (RTGS) and Electronic Funds Transfer (EFT). These systems enable
fast, secure, and efficient transfer of funds between Meezan Bank accounts and accounts
held at other banks in Pakistan.

6. **Digital Payment Solutions**: Meezan Bank offers digital payment solutions to

enable cashless transactions and enhance convenience for customers. These solutions
include debit cards, credit cards, prepaid cards, and contactless payment options,
allowing customers to make purchases online, at point-of-sale terminals, and through
mobile wallets securely.

7. **Data Security and Privacy**: Meezan Bank prioritizes data security and privacy to
protect customer information and ensure compliance with regulatory requirements. The
bank employs robust cybersecurity measures, encryption techniques, access controls, and
regular audits to safeguard sensitive data and mitigate cyber threats.

Overall, Meezan Bank's computerization initiatives aim to modernize banking operations,

deliver superior customer experiences, and stay ahead in the rapidly evolving digital
banking landscape while maintaining the highest standards of security and reliability.

2.15 Online System

Meezan Bank's online system offers customers a convenient and secure platform to
access banking services anytime, anywhere. Through the bank's website or mobile
banking app, customers can manage their accounts, conduct transactions, and access a
range of financial services with ease. Features include account balance inquiries, fund
transfers between accounts, bill payments, mobile top-ups, and viewing account
statements and transaction history. Meezan Bank prioritizes the security of its online
system, employing robust encryption techniques and multi-factor authentication to
safeguard customer data and transactions. With the online system, Meezan Bank strives
to provide an efficient and seamless banking experience, empowering customers to take
control of their finances in the digital age.

2.16 Meezan Bank Retail Banking

Meezan Bank's retail banking division in Pakistan caters to the diverse financial needs of
individuals, offering a comprehensive range of Sharia-compliant products and services.
Through its retail banking operations, Meezan Bank provides solutions such as current
accounts, savings accounts, investment accounts, and financing facilities tailored to the
preferences and requirements of its customers. The bank's retail banking offerings include
convenient digital banking services, allowing customers to access their accounts, conduct
transactions, and manage their finances online or through mobile banking applications.
Meezan Bank prioritizes customer satisfaction and aims to deliver superior banking
experiences while upholding Islamic principles of fairness, transparency, and ethical
conduct.

2.17 Secure transfer of money

Meezan Bank of Pakistan ensures secure transfer of money through various channels,
employing robust security measures and adherence to regulatory standards. Here's how
Meezan Bank ensures the security of money transfers:

1. **Encryption**: Meezan Bank uses encryption protocols to secure the transmission of

data during money transfers. This ensures that sensitive information, such as account
details and transaction data, is protected from unauthorized access or interception.

2. **Secure Authentication**: The bank implements secure authentication methods to

verify the identity of customers initiating money transfers. This may include multi-factor
authentication, biometric verification, or one-time passwords (OTPs) sent to registered
mobile numbers or email addresses.

3. **Transaction Monitoring**: Meezan Bank employs advanced monitoring systems to

detect suspicious or fraudulent transactions in real-time. Automated systems analyze
transaction patterns and flag any unusual activity for further investigation by the bank's
security team.

4. **Anti-Fraud Measures**: The bank has robust anti-fraud measures in place to prevent
unauthorized access to accounts and fraudulent transactions. This includes measures such
as transaction limits, account verification procedures, and transaction verification by
account holders.

5. **Compliance with Regulations**: Meezan Bank complies with regulatory

requirements related to money transfers, including anti-money laundering (AML) and
counter-terrorism financing (CTF) regulations. The bank conducts thorough due diligence
on customers and transactions to ensure compliance with regulatory standards and
mitigate financial crime risks.

6. **Customer Education**: Meezan Bank educates customers about safe banking

practices and advises them on how to protect their accounts and personal information
from fraudsters. This includes awareness campaigns, tips for secure online banking, and
guidance on recognizing and reporting suspicious activity.

Overall, Meezan Bank prioritizes the security of money transfers, leveraging technology,
regulatory compliance, and customer education to safeguard customer funds and maintain
trust in its banking services.

2.18 Meezan Bank investment Banking

Meezan Bank's investment banking division offers a range of Sharia-compliant

investment banking services to clients in Pakistan. These services include:

1. **Corporate Finance**: Meezan Bank assists corporations in raising capital through

Sharia-compliant financing structures such as Mudarabah, Musharakah, and Sukuk
issuance. The bank advises clients on capital structure optimization, mergers and
acquisitions, and strategic financial planning.

2. **Equity Capital Markets**: Meezan Bank provides advisory services to companies

seeking to raise equity capital through Initial Public Offerings (IPOs) or rights issues. The
bank assists clients in structuring and executing equity offerings in compliance with
Sharia principles and regulatory requirements.

3. **Debt Capital Markets**: Meezan Bank assists clients in accessing debt capital
markets through the issuance of Sharia-compliant debt instruments such as Sukuk
 (Islamic bonds). The bank advises on structuring Sukuk transactions, arranging
syndicated financing, and managing bond issuances.

4. **Advisory Services**: Meezan Bank offers strategic advisory services to clients on

various financial matters, including corporate restructuring, project finance, and capital
budgeting. The bank provides tailored solutions to help clients achieve their business
objectives while adhering to Sharia principles.

5. **Asset Management**: Meezan Bank manages Sharia-compliant investment funds

and portfolios for institutional and individual investors. The bank offers a range of
investment products, including mutual funds, pension funds, and discretionary portfolio
management services, focusing on ethical and sustainable investment opportunities.

6. **Project Finance**: Meezan Bank structures and arranges project finance

transactions for clients involved in infrastructure development, energy projects, and other
large-scale investments. The bank utilizes Islamic financing structures such as Ijarah,
Istisna, and Wakalah to fund project initiatives in compliance with Sharia principles.

Through its investment banking division, Meezan Bank aims to provide innovative and
value-added financial solutions to clients while upholding the principles of Sharia-
compliant finance. The bank leverages its expertise, industry knowledge, and network to
support clients in achieving their strategic objectives and maximizing returns on
investment in a Sharia-compliant manner.

2.18 Structure of Meezan bank of Pakistan

Here's a table outlining the structure of Meezan Bank of Pakistan, including the names of
directors and the chairperson:

| Position | Name
| Chairman | Mr. Riyadh S. A. A. Edrees
| Vice Chairman | Mr. Muhammad Saleem Khan
| President & CEO | Mr. Irfan Siddiqui
| Director | Mr. Muhammad Abdul Aleem
| Director | Mr. Abid Ibrahim
| Director | Mr. Muhammad Abdullah Ahmed
| Director | Mr. Khawaja Iqbal Hassan
| Director | Mr. Jameel Ahmad Khan
| Director | Mr. Ahmed Ali Siddiqui
| Director | Mr. Khalid Rahman
| Director | Mr. Sirajuddin Aziz
| Director | Mr. Ariful Islam

Please note that the composition of the board of directors may change over time due to
resignations, appointments, or other reasons. This information is accurate as of the latest
available data.
Chapter 03
Meezan Bank Branch Sahiwal freed town
Services and Products

3.1 Departmental Review

Departmental reviews at Meezan Bank involve assessing the performance, operations,
and strategic objectives of various departments within the organization. Here's an
overview of departmental reviews typically conducted at Meezan Bank:

1. **Retail Banking**: The Retail Banking department focuses on serving individual

customers and small businesses. Departmental reviews assess the performance of retail
products and services, customer satisfaction levels, branch network efficiency, and sales
targets achievement. Key areas of focus may include deposit accounts, financing
facilities, customer service quality, and digital banking initiatives.

2. **Corporate Banking**: The Corporate Banking department caters to the banking

needs of corporate clients and large businesses. Reviews in this department evaluate
corporate client relationships, loan portfolio quality, credit risk management practices,
treasury services, and transaction banking activities. The departmental review may also
assess the effectiveness of relationship managers, credit underwriting processes, and
compliance with regulatory requirements.

3. **Investment Banking**: The Investment Banking department focuses on providing

advisory services and financing solutions to corporate clients. Reviews in this department
assess deal flow, transaction pipeline, fee income generation, market share in investment
banking activities, and the quality of advisory services provided. Key areas of evaluation
may include mergers and acquisitions, capital raising activities, and underwriting
capabilities.

4. **Treasury**: The Treasury department manages the bank's liquidity, investments,

and foreign exchange operations. Departmental reviews in Treasury assess liquidity risk
management practices, investment portfolio performance, trading activities, compliance
with regulatory limits, and profitability of treasury operations. Reviews may also evaluate
interest rate risk management strategies and hedging activities.

5. **Risk Management**: The Risk Management department oversees the identification,

assessment, and mitigation of various risks faced by the bank. Reviews in this department
evaluate the effectiveness of risk governance frameworks, credit risk management
practices, market risk management strategies, operational risk controls, and compliance
with regulatory guidelines. The departmental review may also assess stress testing
methodologies, risk reporting capabilities, and risk culture within the organization.

6. **Compliance and Legal**: The Compliance and Legal department ensures that the
bank operates in compliance with relevant laws, regulations, and internal policies.
Reviews in this department assess the effectiveness of compliance monitoring, regulatory
reporting, anti-money laundering (AML) controls, and Know Your Customer (KYC)
procedures. The review may also evaluate the implementation of legal policies, contract
management practices, and litigation risk management.

These departmental reviews are essential for identifying areas of strength, weaknesses,
and opportunities for improvement within the organization. They help management make
informed decisions, allocate resources effectively, and enhance overall organizational
performance and competitiveness.

3.2 Deposit Department

In Meezan Bank of Pakistan, the Deposit Department plays a crucial role in managing the
bank's deposit accounts and ensuring a robust deposit base. Here's an overview of the
functions and responsibilities of the Deposit Department:

1. **Customer Acquisition and Relationship Management**: The Deposit Department is

responsible for attracting new customers and maintaining strong relationships with
existing ones. This involves marketing various deposit products and services to
individuals, businesses, and institutions, as well as providing personalized assistance and
support to customers regarding their deposit accounts.

2. **Product Development and Innovation**: The Deposit Department continuously

evaluates market trends and customer needs to develop innovative deposit products and
services. This may include designing new savings accounts, current accounts, term
deposits, and specialized deposit accounts tailored to different customer segments and
preferences.

3. **Deposit Account Operations**: The Deposit Department oversees the day-to-day

operations related to deposit accounts, including account opening, maintenance, and
closure procedures. This involves ensuring compliance with regulatory requirements,
verifying customer documentation, and processing account transactions accurately and
efficiently.

4. **Interest Rate Management**: The Deposit Department monitors interest rate

movements in the market and sets competitive rates for deposit products to attract and
retain customers. It also manages the bank's interest rate risk exposure by balancing the
cost of funds with the profitability of lending activities.

5. **Customer Service and Support**: The Deposit Department provides prompt and
efficient customer service to address inquiries, resolve issues, and facilitate transactions
related to deposit accounts. This includes responding to customer queries, handling
complaints, and ensuring a seamless banking experience for depositors.
6. **Risk Management and Compliance**: The Deposit Department implements risk
management practices and compliance measures to safeguard depositors' funds and
ensure regulatory compliance. This involves conducting due diligence on customers,
monitoring transactional activity for suspicious behavior, and adhering to anti-money
laundering (AML) and Know Your Customer (KYC) regulations.

7. **Reporting and Analysis**: The Deposit Department prepares reports and analyses
on deposit performance, including deposit growth, account balances, interest income, and
customer demographics. This information is used by management to assess the
effectiveness of deposit strategies, identify areas for improvement, and make informed
decisions about resource allocation and business development.

Overall, the Deposit Department plays a vital role in Meezan Bank's operations by
managing deposit accounts, fostering customer relationships, driving deposit growth, and
ensuring compliance with regulatory requirements. Its efforts contribute to the bank's
stability, profitability, and reputation in the market.

3.2.2 Functions of Deposit Department

The Deposit Department at Meezan Bank of Pakistan plays a crucial role in managing
customer deposits and ensuring a seamless banking experience. Here are the key
functions of the Deposit Department:

1. **Customer Deposit Management**: The Deposit Department is responsible for

managing various types of customer deposits, including current accounts, savings
accounts, fixed deposits, and investment accounts. It oversees the process of opening new
accounts, processing deposit transactions, and maintaining accurate records of customer
balances.

2. **Deposit Products Development**: The department works on developing new

deposit products and enhancing existing ones to meet the evolving needs of customers.
This involves conducting market research, analyzing customer preferences, and
collaborating with other departments to design competitive deposit offerings.

3. **Interest Rate Management**: The Deposit Department monitors interest rates on

deposit products and adjusts them in line with market conditions and regulatory
requirements. It ensures that deposit rates remain competitive while also aligning with the
bank's profitability goals and liquidity management strategies.

4. **Customer Service and Support**: The department provides customer service and
support related to deposit accounts, addressing inquiries, resolving issues, and assisting
customers with account-related transactions. It ensures that customers receive prompt and
efficient service and that their concerns are addressed in a timely manner.

5. **Compliance and Regulatory Compliance**: The Deposit Department ensures

 compliance with regulatory guidelines and internal policies governing deposit-taking
activities. It implements Know Your Customer (KYC) procedures, anti-money
laundering (AML) measures, and other regulatory requirements to mitigate risk and
maintain regulatory compliance.

6. **Deposit Growth and Retention Strategies**: The department develops strategies to

attract new deposits and retain existing customers. This may involve promotional
campaigns, incentives, and relationship-building initiatives aimed at increasing deposit
balances and strengthening customer loyalty.

7. **Technology and Innovation**: The Deposit Department leverages technology and

innovation to enhance deposit services and improve the customer experience. It may
introduce new digital banking features, mobile deposit options, and online account
management tools to make deposit-related transactions more convenient and efficient for
customers.

8. **Reporting and Analysis**: The department generates reports and conducts analysis
to track deposit trends, monitor performance indicators, and identify opportunities for
growth and improvement. It provides insights to senior management to support decision-
making and strategic planning initiatives related to deposit operations.

Overall, the Deposit Department plays a vital role in managing customer deposits,
developing deposit products, ensuring regulatory compliance, and enhancing the overall
deposit banking experience at Meezan Bank of Pakistan.

3.1.1.2 Types of Deposit Accounts Offered By Meezan bank

Meezan Bank offers a variety of deposit accounts to cater to the diverse needs and
preferences of its customers. Here are some of the main types of deposit accounts offered by Meezan
Bank:

1. **Current Accounts**: Current accounts are non-interest-bearing accounts designed for frequent
transactions and everyday banking needs. Customers can deposit and withdraw funds as needed without
any restrictions.

2. **Savings Accounts**: Savings accounts offer customers the opportunity to earn profit on their
balances while maintaining liquidity. These accounts typically offer competitive profit rates and may
have certain withdrawal restrictions or minimum balance requirements.

3. **Fixed Deposit Accounts**: Fixed deposit accounts allow customers to deposit funds for a fixed
period at a predetermined profit rate. The profit is calculated based on the tenure and amount of the
deposit, and customers receive the accumulated profit upon maturity.

4. **Meezan Bachat Account**: Meezan Bachat Account is a specialized savings account designed to
encourage regular saving habits among customers. It offers competitive profit rates and provides
flexibility in deposit and withdrawal transactions.
5. **Meezan Roshan Digital Account**: Meezan Roshan Digital Account is designed for non-resident
Pakistanis (NRPs) to conveniently manage their finances from anywhere in the world. It offers various
types of accounts, including current, savings, and term deposit accounts, with the convenience of online
banking and digital services.

6. **Meezan Asaan Account**: Meezan Asaan Account is a basic banking account designed to provide
easy access to banking services for individuals who may not meet the requirements of traditional
accounts. It offers simplified account opening procedures and basic banking features.

7. **Foreign Currency Accounts**: Meezan Bank offers foreign currency accounts in major currencies,
allowing customers to hold and transact in foreign currencies. These accounts are suitable for individuals
and businesses engaged in international trade or travel.

8. **Specialized Deposit Products**: Meezan Bank may also offer specialized deposit products tailored
to specific customer segments or needs. These may include children's savings accounts, senior citizen
accounts, and specialized investment accounts with unique features and benefits.

These are some of the main types of deposit accounts offered by Meezan Bank, each designed to meet the
financial goals and preferences of its diverse customer base while adhering to Islamic principles of
banking and finance.

3.1.3 Cash Department

In Meezan Bank of Pakistan, the Cash Department is responsible for managing cash operations
within the bank's branches. Here are the key functions of the Cash Department:

1. **Cash Handling**: The Cash Department manages the receipt, disbursement, and
reconciliation of cash transactions within the branch. This includes handling cash deposits,
withdrawals, and currency exchanges for customers.

2. **Cash Vault Management**: The department oversees the maintenance and security of the
cash vault within the branch. It ensures that adequate cash reserves are available to meet
customer demands while adhering to regulatory requirements and internal controls.

3. **Cash Balancing and Reconciliation**: The Cash Department is responsible for balancing
and reconciling cash transactions at the end of each business day. This involves verifying cash
totals, reconciling discrepancies, and preparing cash reports for submission to management and
regulatory authorities.

4. **Currency Management**: The department manages the supply and distribution of currency
notes and coins to ensure sufficient liquidity within the branch. It monitors currency
denominations, identifies currency shortages or surpluses, and orders currency replenishments as
needed.

5. **Cash Security**: The Cash Department implements security measures to safeguard cash
assets against theft, fraud, and unauthorized access. This includes maintaining strict access
controls, utilizing surveillance systems, and adhering to cash handling procedures and protocols.

6. **Customer Service**: The department provides customer service related to cash transactions,
assisting customers with cash deposits, withdrawals, and currency exchange requests. It ensures
that customers receive prompt and efficient service while adhering to service quality standards.

7. **Compliance and Regulatory Reporting**: The Cash Department ensures compliance with
regulatory requirements related to cash handling, currency management, and anti-money
laundering (AML) measures. It maintains accurate records of cash transactions and prepares
regulatory reports as required by regulatory authorities.

8. **Training and Development**: The department conducts training programs and provides
guidance to branch staff on cash handling procedures, security protocols, and regulatory
compliance requirements. It ensures that branch staff are equipped with the knowledge and skills
necessary to perform cash-related tasks effectively and efficiently.

Overall, the Cash Department plays a vital role in ensuring the smooth operation of cash-related
activities within Meezan Bank branches, maintaining cash security, and providing quality service
to customers while adhering to regulatory standards and internal controls.

3.4 Remittance Department

In Meezan Bank of Pakistan, the Remittance Department is responsible for facilitating the
transfer of funds domestically and internationally for customers. Here are the key functions of
the Remittance Department:

1. **Domestic Remittances**: The department facilitates the transfer of funds within Pakistan,
allowing customers to send money to recipients in different cities or regions of the country. This
includes interbank transfers, online transfers, and over-the-counter cash transfers.

2. **International Remittances**: The department facilitates the transfer of funds from overseas
locations to beneficiaries in Pakistan. This involves partnering with international correspondent
banks, money transfer operators, and remittance service providers to ensure seamless cross-
border transactions.

3. **Inward Remittances**: The department handles inward remittances received from foreign
countries on behalf of customers. This includes processing remittance instructions, verifying
sender and recipient information, and crediting funds to beneficiary accounts or making cash
payouts as per customer instructions.

4. **Outward Remittances**: The department assists customers in sending funds from Pakistan
to foreign countries for various purposes, such as family support, business payments, and
investment transactions. This involves complying with regulatory requirements, obtaining
necessary documentation, and processing outward remittance requests in accordance with
established procedures.

5. **Exchange Rate Management**: The department monitors exchange rates and foreign
currency fluctuations to ensure competitive pricing and optimal currency conversion for
remittance transactions. It may offer exchange rate quotations and advisory services to customers
to facilitate informed decision-making.

6. **Compliance and Regulatory Reporting**: The Remittance Department ensures compliance

with regulatory requirements related to remittance transactions, anti-money laundering (AML)
measures, and know your customer (KYC) guidelines. It maintains accurate records of
remittance transactions and prepares regulatory reports as required by regulatory authorities.

7. **Customer Service and Support**: The department provides customer service related to
remittance transactions, addressing inquiries, resolving issues, and assisting customers with
remittance-related queries. It ensures that customers receive prompt and efficient service and that
their concerns are addressed in a timely manner.

8. **Technology and Innovation**: The Remittance Department leverages technology and

innovation to enhance remittance services and improve the customer experience. This may
include offering online remittance platforms, mobile money transfer options, and digital
remittance solutions to meet the evolving needs of customers.

Overall, the Remittance Department plays a vital role in facilitating the transfer of funds
domestically and internationally, providing customers with convenient and reliable remittance
services while ensuring compliance with regulatory requirements and maintaining service quality
standards.
3.5 Accounts Department
In Meezan Bank of Pakistan, the Accounts Department is responsible for managing the bank's
financial transactions, maintaining accurate records, and ensuring compliance with accounting
standards and regulatory requirements. Here are the key functions of the Accounts Department:

1. **Financial Accounting**: The Accounts Department is responsible for recording and

summarizing the bank's financial transactions in accordance with generally accepted accounting
principles (GAAP) and International Financial Reporting Standards (IFRS). This includes
recording revenues, expenses, assets, liabilities, and equity transactions.

2. **General Ledger Management**: The department maintains the bank's general ledger, which
serves as the central repository for all financial transactions. It ensures that entries are accurately
posted to the appropriate accounts, reconciles accounts on a regular basis, and generates financial
reports for management and regulatory purposes.

3. **Accounts Payable**: The Accounts Department processes payments to suppliers, vendors,

and other creditors on behalf of the bank. It verifies invoices, prepares payment vouchers, and
initiates payments through electronic funds transfer (EFT) or cheque issuance in accordance with
approved procedures and payment terms.

4. **Accounts Receivable**: The department monitors accounts receivable balances and follows
up on outstanding payments from customers and other debtors. It sends reminders, issues
statements, and coordinates with other departments to resolve payment discrepancies and collect
overdue amounts.

5. **Financial Reporting**: The Accounts Department prepares and analyzes financial reports,
including income statements, balance sheets, cash flow statements, and financial ratios. These
reports provide insights into the bank's financial performance, liquidity position, and solvency
status, helping management make informed decisions.

6. **Budgeting and Forecasting**: The department assists in the preparation of budgets and
financial forecasts, collaborating with other departments to develop realistic revenue and expense
projections. It monitors actual performance against budgeted targets and identifies variances for
management review and action.

7. **Internal Controls and Compliance**: The Accounts Department establishes and maintains
internal controls to safeguard assets, prevent fraud, and ensure compliance with regulatory
requirements and internal policies. It conducts periodic audits and reviews to assess the
effectiveness of controls and address any deficiencies identified.

8. **Taxation and Regulatory Reporting**: The department calculates, withholds, and remits
taxes on behalf of the bank in accordance with tax laws and regulations. It prepares and submits
various tax returns, reports, and declarations to regulatory authorities within stipulated deadlines.

Overall, the Accounts Department plays a critical role in managing the bank's financial
operations, ensuring accuracy and integrity in financial reporting, and supporting the bank's
overall financial health and compliance objectives.

3.6 Foreign Exchange Department

In Meezan Bank of Pakistan, the Foreign Exchange Department is responsible for managing
foreign exchange operations, including currency trading, foreign exchange transactions, and
international trade finance. Here are the key functions of the Foreign Exchange Department:

1. **Currency Trading**: The department engages in buying and selling foreign currencies in
the foreign exchange market to profit from fluctuations in exchange rates. It monitors currency
movements, executes trades, and manages foreign exchange positions to optimize trading
outcomes and mitigate currency risk.

2. **Foreign Exchange Transactions**: The department facilitates foreign exchange transactions

for customers, including currency conversions, remittances, and outward and inward telegraphic
transfers. It provides competitive exchange rates, processes transactions efficiently, and ensures
compliance with regulatory requirements.

3. **Trade Finance**: The department provides trade finance solutions to support international
trade transactions, including import and export financing, letters of credit, and documentary
collections. It assists customers in navigating the complexities of international trade regulations
and documentation requirements.

4. **Currency Risk Management**: The department helps customers manage currency risk
exposure associated with international trade and investments. It offers hedging products such as
forward contracts, options, and swaps to protect against adverse currency movements and
minimize the impact of exchange rate fluctuations on business operations.

5. **Foreign Currency Accounts**: The department manages foreign currency accounts for
customers, allowing them to hold and transact in foreign currencies. It offers a range of foreign
currency deposit products and services, including current accounts, savings accounts, and fixed
deposits denominated in major currencies.

6. **Remittances and Transfers**: The Foreign Exchange Department facilitates the transfer of
funds to and from overseas locations for customers. It processes outward remittances, inward
remittances, and cross-border transfers in compliance with regulatory requirements and
international payment standards.

7. **Compliance and Regulatory Reporting**: The department ensures compliance with foreign
exchange regulations, anti-money laundering (AML) measures, and know your customer (KYC)
guidelines. It maintains accurate records of foreign exchange transactions and prepares
regulatory reports as required by regulatory authorities.

8. **Customer Service and Support**: The department provides customer service related to
foreign exchange transactions, addressing inquiries, resolving issues, and assisting customers
with foreign currency requirements. It ensures that customers receive prompt and efficient
service and that their foreign exchange needs are met effectively.

Overall, the Foreign Exchange Department plays a vital role in facilitating international trade and
finance, managing currency risk, and providing foreign exchange services to customers in
compliance with regulatory requirements and best practices in foreign exchange management.

3.7 Electronic Technology Department

In Meezan Bank of Pakistan, the Electronic Technology Department is responsible for managing
and advancing the bank's electronic banking technologies and digital channels. Here are the key
functions of the Electronic Technology Department:

1. **Digital Banking Platforms**: The department oversees the development, maintenance, and
enhancement of digital banking platforms, including online banking portals, mobile banking
applications, and internet banking services. It ensures that these platforms are user-friendly,
secure, and equipped with advanced features to meet customer needs.

2. **Payment Systems**: The department manages payment systems, including automated

clearing house (ACH), real-time gross settlement (RTGS), and electronic funds transfer (EFT)
systems. It facilitates electronic payments, fund transfers, and interbank settlements in a secure
and efficient manner.

3. **Card Services**: The department administers card services, including debit cards, credit
cards, and prepaid cards. It manages card issuance, activation, and authorization processes,
monitors card transactions for fraud detection, and provides support to cardholders for inquiries
and dispute resolution.

4. **ATM Network**: The department oversees the operation and maintenance of the bank's
automated teller machine (ATM) network. It ensures that ATMs are operational, stocked with
cash, and equipped with necessary security measures to provide round-the-clock banking
services to customers.

5. **Digital Payments**: The department promotes digital payments and electronic transactions
by introducing innovative payment solutions, such as mobile wallets, QR code payments, and
contactless payment technologies. It collaborates with merchants, payment processors, and
fintech partners to expand the bank's digital payment ecosystem.

6. **Cybersecurity and Information Security**: The department implements cybersecurity

measures to protect the bank's electronic banking systems and customer data from cyber threats
and security breaches. It conducts regular security assessments, vulnerability testing, and
incident response procedures to safeguard against cyber attacks.

7. **Technology Infrastructure**: The department manages the bank's technology infrastructure,

including data centers, networks, servers, and software systems. It ensures that technology
infrastructure is scalable, resilient, and capable of supporting the bank's electronic banking
operations and digital transformation initiatives.

8. **Customer Experience and Innovation**: The department focuses on enhancing the customer
experience through continuous innovation and technology-driven solutions. It gathers feedback
from customers, identifies pain points, and implements improvements to digital banking services
to meet evolving customer expectations.

Overall, the Electronic Technology Department plays a crucial role in driving the bank's digital
transformation agenda, improving operational efficiency, and delivering innovative electronic
banking solutions to customers while maintaining high standards of security and reliability.

3.8 Credit Department

In Meezan Bank of Pakistan, the Credit Department is responsible for managing credit-related
activities, including credit assessment, approval, monitoring, and risk management. Here are the
key functions of the Credit Department:

1. **Credit Assessment**: The department evaluates credit applications submitted by customers,

including individuals, businesses, and corporate clients. It assesses the creditworthiness of
applicants based on factors such as financial statements, credit history, collateral, and repayment
capacity.

2. **Credit Approval**: The department reviews credit proposals and makes recommendations
for credit approval or rejection based on established credit policies, risk tolerance levels, and
regulatory requirements. It ensures that credit decisions are made in a timely manner and in
accordance with established procedures.

3. **Credit Monitoring**: The department monitors the performance of credit facilities extended
to customers to ensure timely repayment and adherence to credit terms and conditions. It tracks
repayment schedules, reviews financial performance indicators, and identifies early warning
signs of credit deterioration.

4. **Credit Risk Management**: The department identifies, assesses, and mitigates credit risks
associated with lending activities. It establishes credit risk management frameworks, credit risk
models, and risk rating systems to quantify and manage credit exposures effectively.

5. **Portfolio Management**: The department manages the bank's loan portfolio, including
monitoring portfolio composition, concentration risks, and asset quality metrics. It identifies
opportunities for portfolio diversification, restructuring, and risk mitigation to optimize portfolio
performance and minimize credit losses.

6. **Loan Documentation**: The department prepares and reviews loan documentation,

including loan agreements, security documents, and collateral arrangements. It ensures that loan
documents are accurately drafted, legally enforceable, and compliant with regulatory
requirements.

7. **Credit Policy Development**: The department participates in the development and review
of credit policies, guidelines, and procedures to ensure consistency, transparency, and
compliance with regulatory standards. It recommends revisions to credit policies based on
changing market conditions and emerging risk factors.

8. **Credit Reporting and Analysis**: The department generates credit reports, performance
dashboards, and analytical reports to facilitate credit decision-making, portfolio monitoring, and
risk reporting. It conducts credit analysis, stress testing, and scenario analysis to assess credit risk
exposures and potential impacts on the bank's financial health.

Overall, the Credit Department plays a crucial role in managing credit risk, supporting
responsible lending practices, and ensuring the quality and profitability of the bank's loan
portfolio while maintaining compliance with regulatory requirements and internal policies.

3.9 Cash Finance

Cash Finance, also known as Cash Financing, is a type of financing provided by Meezan Bank of
Pakistan to meet short-term funding needs of businesses and individuals. Here's an overview of
Cash Finance offered by Meezan Bank:

1. **Short-Term Funding**: Cash Finance is designed to provide short-term liquidity to

businesses and individuals to meet immediate cash flow requirements. It allows borrowers to
access funds quickly and conveniently to cover working capital needs, purchase inventory, or
meet other short-term expenses.

2. **Sharia-Compliant Structure**: Cash Finance offered by Meezan Bank follows Sharia-

compliant principles, ensuring that financing arrangements comply with Islamic finance
principles such as prohibition of interest (riba) and adherence to profit-sharing (Mudarabah) or
asset-backed (Murabaha) structures.

3. **Murabaha Financing**: In a Murabaha-based Cash Finance arrangement, Meezan Bank

purchases goods or commodities on behalf of the customer and resells them to the customer at a
markup, with deferred payment terms. This allows customers to access financing without paying
interest, as the bank earns profit through the sale of goods.

4. **Flexible Repayment Terms**: Cash Finance arrangements typically offer flexible

repayment terms, allowing borrowers to repay the financing amount over a specified period.
Repayment schedules may be tailored to match the borrower's cash flow and business cycle,
providing convenience and flexibility in managing financial obligations.

5. **Competitive Pricing**: Meezan Bank offers competitive pricing for Cash Finance facilities,
ensuring that financing costs remain transparent and affordable for borrowers. Profit rates are
determined based on prevailing market conditions, risk assessment, and the nature of the
financing arrangement.

6. **Collateral Requirements**: Depending on the amount and nature of the financing, Meezan
Bank may require collateral or security to mitigate credit risk associated with Cash Finance
facilities. Collateral may include tangible assets, such as inventory, equipment, or property,
which are pledged as security for the financing.

7. **Streamlined Application Process**: Meezan Bank provides a streamlined application

process for Cash Finance facilities, allowing borrowers to apply for financing quickly and
efficiently. The bank evaluates the creditworthiness of borrowers based on financial statements,
business plans, and other relevant information to assess eligibility for financing.

Overall, Cash Finance offered by Meezan Bank provides businesses and individuals with access
to short-term funding solutions that comply with Sharia principles, offer competitive pricing, and
support their liquidity needs effectively.

3.10 Demand Finance

Demand finance, also known as running finance or revolving finance, is a type of financing
facility offered by Meezan Bank of Pakistan to meet the short-term financing needs of
businesses. Here are the key features and characteristics of demand finance provided by Meezan
Bank:

1. **Purpose**: Demand finance is typically provided to businesses to support their working

capital requirements, manage cash flow fluctuations, finance inventory purchases, and meet
short-term funding needs arising from operational activities.

2. **Shariah Compliance**: Demand finance offered by Meezan Bank is structured in

accordance with Islamic principles. The bank provides financing based on Shariah-compliant
modes such as Murabaha, where the bank purchases goods and sells them to the customer at a
markup, or through other permissible structures.

3. **Revolving Nature**: Demand finance is a revolving facility, meaning that the customer can
borrow, repay, and re-borrow funds as needed within the approved financing limit. This provides
businesses with flexibility in managing their cash flow and funding requirements.

4. **Facility Amount**: The amount of demand finance offered by Meezan Bank depends on
the customer's financing needs, creditworthiness, and the nature of the business. The bank
assesses the customer's financial statements, business plan, and projected cash flows to determine
the appropriate financing limit.

5. **Profit Rate**: Meezan Bank charges a profit rate on demand finance, which is agreed upon
at the time of entering into the financing agreement. The profit rate is calculated based on the
bank's cost of funds, prevailing market rates, and the level of risk associated with the financing.

6. **Repayment Terms**: Demand finance facilities typically have flexible repayment terms,
allowing customers to repay the outstanding balance at any time without incurring prepayment
penalties. The customer only pays profit on the amount utilized, and the facility limit is
replenished as funds are repaid.

7. **Security Requirements**: Meezan Bank may require security or collateral to secure the
demand finance facility. The type and value of security depend on the amount of financing, the
creditworthiness of the customer, and the nature of the business.

8. **Documentation**: Customers availing demand finance from Meezan Bank are required to
complete the necessary documentation, including a financing application, financial statements,
business plan, and any other documents as required by the bank.
Overall, demand finance offered by Meezan Bank is designed to provide businesses with a
flexible and Shariah-compliant financing solution to meet their short-term funding needs and
support their operational requirements while adhering to Islamic principles of finance.

3.11 Financial Products of Meezan Bank of Pakistan

Meezan Bank of Pakistan offers a wide range of Shariah-compliant financial products and
services to cater to the diverse needs of its customers. Here are some of the key financial
products offered by Meezan Bank:

1. **Deposit Products**:
- Current Accounts
- Savings Accounts
- Fixed Deposit Accounts
- Meezan Bachat Account
- Meezan Roshan Digital Account
- Meezan Asaan Account
- Foreign Currency Accounts

2. **Financing Products**:
- Murabaha Financing
- Ijarah Financing
- Musharakah Financing
- Mudarabah Financing
- Diminishing Musharakah (Home Financing)
- Car Ijarah (Auto Financing)
- Personal Financing
- Business Financing
- Agricultural Financing
- Education Financing
- Islamic Export Refinance

3. **Investment Products**:
- Meezan Islamic Income Fund
- Meezan Cash Fund
- Meezan Sovereign Fund
- Meezan Islamic Fund
- Meezan Rozana Amdani Fund
- Meezan Capital Preservation Plan

4. **Trade Finance Products**:

- Letters of Credit (LC)
- Murabaha LC
- Inland and Foreign Bill Purchase
- Murabaha Financing against Trust Receipt (MTR)
 - Shipping Guarantees
- Import and Export Financing

5. **Electronic Banking Products**:

- Online Banking
- Mobile Banking
- Internet Banking
- SMS Alerts
- Phone Banking
- ATM Services
- Debit Cards

6. **Wealth Management Services**:

- Wealth Management Accounts
- Discretionary Portfolio Management
- Investment Advisory Services

7. **Takaful Products** (Islamic Insurance):

- Family Takaful
- Health Takaful
- Travel Takaful
- Motor Takaful
- Property Takaful

8. **Remittance Services**:
- Domestic Remittances
- International Remittances
- Inward and Outward Telegraphic Transfers

These are just some of the financial products and services offered by Meezan Bank, reflecting its
commitment to providing Shariah-compliant banking solutions to its customers across various
segments and industries. Each product is designed to meet specific financial needs while
adhering to Islamic principles of finance.

3.12 Personal Finance

Meezan Bank offers Personal Finance facilities that adhere to Shariah principles, providing
individuals with financing solutions to meet their various personal needs. Here are some key
features of Meezan Bank's Personal Finance:

1. **Murabaha Personal Financing**: Meezan Bank offers Murabaha-based Personal Financing,

where the bank purchases the asset (e.g., a car, home appliance, or electronic gadget) on behalf
of the customer and sells it to the customer at a cost-plus-profit basis. The customer then pays for
the asset in installments over an agreed-upon period.
2. **Flexible Financing Amount**: Meezan Bank provides flexible financing amounts tailored
to the customer's requirements, subject to eligibility criteria and credit assessment. Customers
can avail financing for a wide range of personal needs, including home renovation, wedding
expenses, education fees, medical bills, and travel expenses.

3. **Competitive Profit Rates**: Meezan Bank offers competitive profit rates on its Personal
Finance facilities, which are determined based on factors such as the customer's creditworthiness,
financing amount, and repayment tenure.

4. **Fixed and Variable Profit Rates**: Customers have the option to choose between fixed and
variable profit rates for their Personal Finance facility. Fixed profit rates offer stability and
predictability in monthly payments, while variable profit rates may fluctuate based on market
conditions.

5. **Flexible Repayment Tenure**: Meezan Bank provides flexible repayment tenures for
Personal Finance, allowing customers to choose a repayment period that suits their financial
situation and preferences. The repayment period typically ranges from one to seven years,
depending on the financing amount and type of asset.

6. **Quick and Convenient Processing**: Meezan Bank ensures quick and convenient
processing of Personal Finance applications, with minimal documentation requirements and
streamlined approval processes. Customers can apply for financing online, through Meezan Bank
branches, or via mobile banking channels.

7. **Shariah Compliance**: Meezan Bank's Personal Finance facilities are structured in

compliance with Islamic principles, ensuring that they are free from interest (riba) and follow
ethical and Shariah-compliant financing practices.

8. **Takaful Coverage**: Meezan Bank offers optional Takaful coverage for Personal Finance
facilities, providing customers with protection against unforeseen events such as loss of
employment, disability, or death. Takaful coverage helps safeguard the customer and their
family's financial well-being.

Overall, Meezan Bank's Personal Finance facilities are designed to provide individuals with
access to Shariah-compliant financing solutions that cater to their personal needs while
promoting financial inclusion and ethical banking practices.

3.13 Personal Loan

Meezan Bank offers Personal Loans as a Shariah-compliant financing solution to meet the
diverse financial needs of individuals. Here are some key features of Meezan Bank's Personal
Loan:

1. **Murabaha-based Financing**: Meezan Bank's Personal Loan follows the Murabaha

financing structure, which involves the bank purchasing the desired goods or assets on behalf of
the customer and selling them to the customer at a cost-plus-profit basis. This ensures that the
transaction is free from interest (riba) and complies with Islamic principles.

2. **Flexible Financing Amount**: Meezan Bank provides flexible financing amounts for
Personal Loans, enabling customers to borrow funds based on their financial needs and
repayment capacity. The financing amount can be used for various purposes, such as home
renovation, education expenses, medical bills, wedding costs, or debt consolidation.

3. **Competitive Profit Rates**: Meezan Bank offers competitive profit rates on its Personal
Loans, which are determined based on factors such as the financing amount, repayment tenure,
and the customer's creditworthiness. The profit rate is fixed for the entire repayment period,
providing customers with predictability in their monthly payments.

4. **Fixed Repayment Tenure**: Personal Loans from Meezan Bank come with fixed
repayment tenures, allowing customers to repay the borrowed amount over a predetermined
period. The repayment period typically ranges from one to five years, depending on the financing
amount and the customer's preferences.

5. **Quick and Convenient Processing**: Meezan Bank ensures quick and convenient
processing of Personal Loan applications, with minimal documentation requirements and
streamlined approval processes. Customers can apply for financing online, through Meezan Bank
branches, or via mobile banking channels, making the application process hassle-free.

6. **No Hidden Charges**: Meezan Bank is transparent about its fees and charges, ensuring that
customers are aware of all costs associated with the Personal Loan upfront. There are no hidden
fees or penalties, and customers can enjoy peace of mind knowing the full cost of borrowing
from the outset.

7. **Shariah Compliance**: Meezan Bank's Personal Loan facility is fully compliant with
Islamic principles, ensuring that it is free from interest (riba) and adheres to ethical and Shariah-
compliant financing practices. The bank follows strict guidelines to ensure that the financing
structure and terms are in accordance with Islamic finance principles.

8. **Takaful Coverage**: Meezan Bank offers optional Takaful coverage for Personal Loans,
providing customers with protection against unforeseen events such as loss of employment,
disability, or death. Takaful coverage helps safeguard the customer and their family's financial
well-being, providing peace of mind during challenging times.

Overall, Meezan Bank's Personal Loan offers individuals a Shariah-compliant financing solution
that meets their financial needs while adhering to Islamic principles and promoting ethical
banking practices.
3.14 Smart Card / Debit Card
Meezan Bank offers Smart Card and Debit Card services to provide customers with convenient
and secure payment solutions. Here are some key features of Meezan Bank's Smart Card and
Debit Card:

1. **Smart Card/Debit Card Issuance**: Meezan Bank issues Smart Cards and Debit Cards to its
account holders, allowing them to access their funds and conduct transactions conveniently.

2. **ATM Access**: Meezan Bank's Smart Card and Debit Card provide customers with access
to a vast network of ATMs nationwide, enabling them to withdraw cash, check account balances,
and perform other banking transactions 24/7.

3. **Point-of-Sale (POS) Transactions**: Customers can use Meezan Bank's Smart Card and
Debit Card to make purchases at millions of merchant locations worldwide that accept card
payments. This includes retail stores, restaurants, online merchants, and other businesses.

4. **Contactless Payment**: Meezan Bank's Smart Card and Debit Card may support
contactless payment technology, allowing customers to make quick and secure payments by
simply tapping their card on contactless-enabled POS terminals.

5. **Online Transactions**: Customers can use Meezan Bank's Smart Card and Debit Card to
make online purchases and payments securely. The card details can be entered during online
checkout processes to complete transactions on e-commerce websites.

6. **Security Features**: Meezan Bank prioritizes the security of its Smart Card and Debit Card
services, incorporating various security features such as EMV chip technology, PIN
authentication, and transaction monitoring to protect against unauthorized use and fraud.

7. **International Acceptance**: Meezan Bank's Smart Card and Debit Card are accepted
globally, allowing customers to use their cards for transactions while traveling abroad or making
purchases from international merchants.

8. **Card Management**: Meezan Bank provides customers with online and mobile banking
facilities to manage their Smart Card and Debit Card accounts. This includes features such as
card activation, card blocking, PIN generation, and transaction history inquiry.

9. **Balance Inquiry**: Customers can check their account balances and transaction history
through ATMs, online banking portals, or mobile banking apps, providing them with real-time
access to their account information.

10. **Customer Support**: Meezan Bank offers customer support services to assist cardholders
with any inquiries, issues, or concerns related to their Smart Card and Debit Card accounts. This
includes helpline assistance, dispute resolution, and card replacement services.

Overall, Meezan Bank's Smart Card and Debit Card services provide customers with a
convenient, secure, and globally accepted payment solution for their everyday banking needs,
whether it's withdrawing cash, making purchases, or managing their finances online.
3.15 Cheques

Meezan Bank of Pakistan offers various types of cheques to cater to the diverse needs of its
customers. Here are some common types of cheques provided by Meezan Bank:

1. **Bearer Cheque**: A bearer cheque is payable to the person presenting it for payment and
does not require endorsement. It can be encashed by anyone who possesses the physical cheque.

2. **Order Cheque**: An order cheque is payable to a specific person or organization named on

the cheque. It requires endorsement by the payee to transfer the funds to another party.

3. **Crossed Cheque**: A crossed cheque has two parallel lines drawn across its face, indicating
that the cheque can only be deposited into a bank account and cannot be encashed over the
counter. This enhances security and prevents unauthorized individuals from cashing the cheque.

4. **Open Cheque**: An open cheque is one that is not crossed, allowing the bearer to encash it
over the counter at the issuing bank or any other bank.

5. **Post-Dated Cheque**: A post-dated cheque is one that is dated for a future date rather than
the date it was written. It cannot be encashed until the date specified on the cheque.

6. **Self Cheque**: A self-cheque is a cheque drawn by an account holder in their own name,
allowing them to withdraw funds from their own account.

7. **Cashier's Cheque**: Also known as a bank cheque, a cashier's cheque is issued by the bank
and drawn on the bank's own funds, guaranteeing payment to the payee. It is often used for large
transactions or when the payee requires assurance of payment.

8. **Pay Order**: Similar to a cashier's cheque, a pay order is a banker's instrument issued by
the bank on behalf of the customer, guaranteeing payment to a specified payee.

These are some of the common types of cheques provided by Meezan Bank of Pakistan. Each
type of cheque serves different purposes and offers various levels of security and convenience
for financial transactions.
Chapter 04
Financial Analysis of Meezan Bank
This chapter is about the financial and general analysis of Meezan Bank based on the observation during
the eight week internship period and also from the discussion with the cooperative staff of Meezan Bank

4.1 Financial Analysis

Financial analysis is the process of identifying the financial strengths and weaknesses of the firm by
properly establishing relationships between the items of balance sheet and profit an loss account,
Financial analysis can be undertaken by management of the firm, or by parties outsides the firm via,
owners, creditors, investors and others.

4.2: SWOT analysis Meezan Bank of pakistan

**Strengths:**
1. Shariah-compliant banking: Meezan Bank is the first and largest Islamic bank in Pakistan, offering a
range of Shariah-compliant financial products and services, appealing to a significant segment of the
population that prefers Islamic banking.
2. Strong market presence: Meezan Bank has a widespread network of branches and ATMs across
Pakistan, providing accessibility to customers in urban and rural areas, contributing to its strong market
presence.
3. Financial performance: The bank has demonstrated consistent financial growth and stability over the
years, with healthy profitability ratios, reflecting its effective management and business strategies.
4. Diversified product portfolio: Meezan Bank offers a wide range of banking products and services,
including retail banking, corporate banking, investment banking, and wealth management, catering to the
diverse needs of its customers.

**Weaknesses:**
1. Limited geographic presence: While Meezan Bank has a significant presence in Pakistan, its
geographic footprint is limited compared to conventional banks, restricting its ability to tap into potential
markets outside the country.
2. Dependency on Pakistan's economy: As a bank primarily operating in Pakistan, Meezan Bank's
performance is closely tied to the country's economic conditions, making it vulnerable to economic
fluctuations and regulatory changes.
3. Perception challenges: Despite the growth of Islamic banking, there may still be some skepticism or
misunderstanding among potential customers regarding the concept of Shariah-compliant banking, which
could hinder the bank's growth.
4. Technology infrastructure: While Meezan Bank has invested in upgrading its technology infrastructure,
there may still be areas where it lags behind conventional banks in terms of digital banking offerings,
which could impact its competitiveness in the long run.

**Opportunities:**
1. Growing demand for Islamic finance: With increasing awareness and demand for Shariah-compliant
financial products globally, Meezan Bank has an opportunity to expand its market share not only within
Pakistan but also in other Muslim-majority countries and among Islamic finance enthusiasts worldwide.
2. Digital banking innovation: There is a growing trend towards digital banking services globally,
presenting an opportunity for Meezan Bank to invest in innovative digital solutions to enhance customer
experience and reach a wider audience.
3. Infrastructure development projects: Pakistan's focus on infrastructure development presents
opportunities for Meezan Bank to participate in financing large-scale projects, such as construction,
energy, and transportation, leveraging its expertise in Islamic financing.
4. Strategic partnerships: Collaborating with international financial institutions or establishing strategic
partnerships with fintech companies can help Meezan Bank expand its product offerings, improve its
technological capabilities, and access new markets.
**Threats:**
1. Competition from conventional banks: Meezan Bank faces intense competition from conventional
banks that offer a wider range of products and services, including interest-based financing, which may
attract customers who are not strictly bound by Shariah principles.
2. Regulatory challenges: Changes in regulatory requirements or government policies related to Islamic
banking or the banking sector in general could pose compliance challenges and impact the bank's
operations and profitability.
3. Economic instability: Political unrest, inflation, currency devaluation, or other economic challenges in
Pakistan could adversely affect Meezan Bank's financial performance and asset quality.
4. Cybersecurity risks: As digital banking grows, Meezan Bank faces increased cybersecurity threats such
as data breaches, phishing attacks, and ransomware, which could damage its reputation and lead to
financial losses if not adequately addressed.

4.2.1 Long and shot establishment

SWOT Analysis of Meezan Bank Pakistan:

Strengths:
1. Long & Strong Establishment: Meezan Bank's long-standing presence in the Pakistani banking
sector gives it a strong foundation and credibility. Established in 1997, it has built a reputation
for reliability and stability.
2. Shariah Compliance: Being Pakistan's first and largest Islamic bank, Meezan Bank benefits
from a niche market segment that values Shariah-compliant banking services. This unique selling
point attracts customers seeking financial products that align with their religious beliefs.
3. Extensive Branch Network: Meezan Bank boasts an extensive branch network across Pakistan,
providing convenience and accessibility to customers nationwide. This physical presence
enhances its visibility and customer reach.
4. Strong Customer Base: Over the years, Meezan Bank has successfully cultivated a loyal
customer base, including individuals, businesses, and institutions. Its focus on customer
satisfaction and tailored Islamic financial solutions contributes to customer retention and loyalty.

Weaknesses:
1. Limited Product Portfolio: Despite its dominance in the Islamic banking sector, Meezan
Bank's product offerings may be perceived as limited compared to conventional banks. This
could hinder its ability to attract customers who require a broader range of financial products and
services.
2. Dependency on Pakistani Market: Meezan Bank's heavy reliance on the Pakistani market
exposes it to fluctuations in the local economy, regulatory changes, and geopolitical risks. Lack
of diversification beyond Pakistan could pose challenges during economic downturns or
regulatory shifts.
3. Technology Infrastructure: While Meezan Bank has made strides in digitization, it may still
face challenges in keeping pace with rapidly evolving technological advancements.
Improvements in digital banking infrastructure and cybersecurity measures are essential to
remain competitive in the digital age.
4. Talent Retention and Development: Retaining skilled professionals and nurturing talent in the
Islamic banking domain can be a challenge. Meezan Bank needs to invest in training programs
and talent retention strategies to maintain its competitive edge in the industry.

Opportunities:
1. Growing Islamic Finance Market: The increasing demand for Shariah-compliant financial
products presents significant growth opportunities for Meezan Bank. As Islamic finance gains
traction globally, the bank can explore expansion opportunities beyond Pakistan's borders.
2. Diversification of Product Portfolio: Meezan Bank can capitalize on its strong brand
reputation to expand its product portfolio and cater to a wider range of customer needs.
Introducing innovative Islamic financial products and services could attract new segments of
customers.
3. Digital Transformation: Embracing digital transformation initiatives can enhance Meezan
Bank's operational efficiency, customer experience, and competitive positioning. Investing in
digital banking platforms, mobile banking apps, and online services can attract tech-savvy
customers and streamline processes.
4. Strategic Partnerships: Collaborating with fintech companies, other financial institutions, or
global Islamic banking players can enable Meezan Bank to leverage synergies, access new
markets, and enhance its offerings. Strategic partnerships can facilitate product innovation and
market expansion initiatives.

Threats:
1. Regulatory Changes: Shifts in regulatory frameworks, both domestically and internationally,
could impact Meezan Bank's operations and compliance requirements. Adapting to regulatory
changes while maintaining Shariah compliance poses challenges and may increase operational
costs.
2. Intense Competition: Meezan Bank faces competition from both Islamic and conventional
banks operating in Pakistan. Intensifying competition for market share, particularly in urban
centers, could exert pressure on margins and customer acquisition efforts.
3. Economic Uncertainty: Macroeconomic factors such as inflation, interest rates, and currency
fluctuations can influence Meezan Bank's profitability and asset quality. Economic volatility or
slowdowns in key sectors may impact customer confidence and loan repayment capabilities.
4. Technological Disruption: Rapid advancements in financial technology (fintech) and the
emergence of digital disruptors pose a threat to traditional banking models. Failure to adapt to
evolving customer preferences and technological trends could result in loss of market share and
relevance.

Overall, while Meezan Bank benefits from its long-standing presence, Shariah compliance, and
extensive branch network, it needs to address weaknesses such as limited product offerings and
technological infrastructure to seize opportunities and mitigate threats in the dynamic banking
landscape.
4.2.2 Network of branches:

Certainly, let's analyze Meezan Bank of Pakistan's network of branches using the SWOT
framework:

**Strengths:**

1. **Extensive Branch Network:** Meezan Bank has a wide network of branches across
Pakistan, which enhances its accessibility to customers and increases its market reach.

2. **Islamic Banking Focus:** Being the first and largest Islamic bank in Pakistan, Meezan
Bank has a competitive advantage in catering to the growing demand for Sharia-compliant
financial products and services.

3. **Strong Customer Base:** Meezan Bank has built a loyal customer base over the years due
to its focus on providing Islamic banking solutions and excellent customer service.

4. **Technological Integration:** Meezan Bank has been investing in technology to enhance its
banking services, including online banking, mobile banking, and digital payment solutions,
which improves customer convenience and efficiency.

**Weaknesses:**

1. **Limited International Presence:** Meezan Bank's presence outside Pakistan is relatively

limited compared to some other banks, which may constrain its ability to tap into international
markets and diversify its revenue streams.

2. **Dependency on Domestic Economy:** As a bank primarily operating in Pakistan, Meezan

Bank's performance is highly dependent on the economic conditions and regulatory environment
within the country, which may expose it to risks associated with local economic fluctuations.

**Opportunities:**

1. **Expansion and Growth:** Meezan Bank can explore opportunities for further expansion
within Pakistan by opening new branches in underserved areas and capturing a larger market
share in the rapidly growing Islamic banking sector.

2. **Diversification of Products:** There is potential for Meezan Bank to diversify its product
offerings beyond traditional banking services, such as wealth management, insurance, and
investment advisory services, to cater to evolving customer needs and increase revenue streams.

3. **Digital Transformation:** With the increasing adoption of digital banking services in

Pakistan, Meezan Bank can capitalize on this trend by investing in innovative digital solutions to
enhance customer experience and streamline operations.
**Threats:**

1. **Competition:** Meezan Bank faces intense competition from both conventional and Islamic
banks operating in Pakistan, which may exert pressure on its market share and profitability.

2. **Regulatory Risks:** Changes in regulatory requirements or government policies related to

banking and Islamic finance could impact Meezan Bank's operations and profitability.

3. **Economic Uncertainty:** Economic instability, inflation, and other macroeconomic factors

in Pakistan could affect the bank's asset quality, loan portfolio, and overall financial
performance.

By analyzing these factors, Meezan Bank can leverage its strengths, address weaknesses,
capitalize on opportunities, and mitigate threats to maintain its competitive position and achieve
sustainable growth in the banking industry.