1947

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

1980

CII presents report on the elimination of Interest genuinely considered to be the
first major comprehensive work in the world undertaken on Islamic banking and
finance.

1985

Commercial banks transformed their nomenclature stating all Rupee Saving
Accounts as interest-free. However, foreign currency deposits in Pakistan and
foreign loans continued as before.

1991

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

1997

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

1999

The Shariat Appellate Bench of the Supreme Court of Pakistan rejects the
appeals and directs all laws on interest banking to cease. The government sets
up a high level commission, task forces and committees to institute and
promote Islamic banking on parallel basis with conventional system.





2001

The Shariah Supervisory Board is established at Al-Meezan Investment Bank led
by Justice (Retd.) Muhammad Taqi Usmani as chairman. State Bank of Pakistan
sets criteria for establishment of Islamic commercial banks in private sector and
subsidiaries and stand-alone branches by existing commercial banks to conduct
Islamic banking in the country.

2002

Meezan Bank acquires the Pakistan operations of Societe Generale and
concurrently Al Meezan Investment Bank converts itself into a full fledged
Islamic commercial bank. The first Islamic banking license is issued to the Bank
and it is renamed Meezan Bank. President General Pervez Musharraf
inaugurates the new Islamic Commercial Bank at a formal ceremony in Karachi.



2003

Meezan Bank establishes itself as the pioneer of Islamic Banking in Pakistan and
quickly establishes branches in all major cities of the country. A wide range of
products are developed and launched consolidating the Banks position as the
premier Islamic Bank of the country Al Meezan Investment Management Limited
(AMIM), the asset management arm of Meezan Bank, introduces Meezan
Islamic Fund (MIF), the countrys first open-end Islamic Mutual Fund.

2004

The State Bank establishes a dedicated Islamic Banking Department (IBD) by
merging the Islamic Economics Division of the Research Department with the
Islamic Banking Division of the Banking Policy Department. A Shariah Board has
been appointed to regulate and approve guidelines for the emerging Islamic
Banking industry. The Government of Pakistan awards the mandate for debut of
international Sukuk (Bond) offering for USD 500 million. The offering is a
success and establishes a benchmark for Pakistan. Meezan Bank acts as the
Shariah Structuring Advisor for this historic transaction.






2005

Meezan Bank becomes the first customer of Islamic Insurance (Takaful) by
signing the first Memorandum of Understanding MoU with Pak-Kuwait Takaful
Company Limited (PKTCL). The signing of this MoU has ushered Pakistan into a
new era of Islamic Insurance (Takaful).

2006

A number of new dedicated Islamic Banks, namely Bank Islami and Dubai
Islamic Bank, commence operations in Pakistan.Meezan continues its leadership
position in the industry by more than doubling it branch network to a total of 62
branches in 21 cities, clearly establishing itself as the largest Islamic Bank of
the country. Meezan Bank, becomes the first Islamic bank to introduce 8 am to
8 pm banking at selected branches in Karachi.

2007

Meezan Bank's branch network reached the milestone number of 100 branches
(including sub-branches) in 31 Acities nationwide.

Car Ijarah portfolio reached Rs. 4.1 billion and the Easy Home portfolio stood
at Rs. 3.1 billion.

The Bank introduced Istisna' financing to cater to the working capital needs of
customers.

Meezan Bank was awarded 'Best Islamic Bank in Pakistan' by Islamic Finance
News of REDmoney Group, Malaysia.Deposit base of the Bank grew to over Rs.
54 billion and the Bank earned profit after tax of Rs. 963 million. Trade
Financebusiness reached Rs. 70 billion.

2008



Meezan Bank introduced Tijarah financing to allow customers to raise funds for
financing of stocks of finished goods.

Meezan Bank was awarded 'Best Islamic Bank in Pakistan' by Islamic Finance
News of REDmoney Group, Malaysia and 'Best Islamic Financial Institution in
Pakistan' by Global Finance Magazine, New York. Branch network grew to 166
branches (including sub-branches) in 40 cities nationwide. Deposit base grew to
Rs. 70 billion and the total financing portfolio amounted to Rs. 39 billion.

2009

2009 was a watershed year for Meezan Bank. The branch network reached 201
branches (including sub-branches) in 54 cities nationwide; deposit base crossed
Rs. 100 billion; profit/return earned on financing and investment activities
exceeded Rs. 10 billion and the Bank handled more than Rs. 100 billion of
import/export business.

Being a socially responsible bank, Meezan Bank launched Meezan Labbaik,
a Hajj aIn nd Umrah product - the primary objective being the desire to
facilitate Muslims in performing their holy duty. Meezan Visa Debit Card was
also 9+launched during the year which is accepted at over 30 million outlets
worldwide and allows customers to withdraw funds from their account from
mo5re than 1.4 million ATMs worldwide and can also be used for shopping,
dining, traveling, fuel and cash needs.

Meezan Bank was awarded 'Best Islamic Bank in Pakistan' by Islamic Finance
New583s of REDmoney Group, Malaysia; 'Best Islamic Financial Institution in
Pakistan' by Global Finance Magazine, New York; 'Best Islamic Bank in Pakistan'
for 2009 by ASIA MONEY Magazine, Hong Kong and 'Islamic Bank of the Year'
for 2009 by CFA Association of Pakistan.

Corporate assets, including corporate Sukuk stood at over Rs. 40 billion.
Corporate highlights of 2009 included Tijarah financing with PSO, Istisna
financing with PARCO and Murabaha financing with Punjab Food Department.

The Bank started implementing its new core banking application - T-24. T-24 is
a core banking software which includes banking best practices based on
Temenos' implementations in over 600 financial institutions and 120 countries
across Retail, Corporate, Private Wealth, Islamic and Micro finance and
Community Banking sectors.

2010



Meezan Bank developed a number of new deposit products to cater to the
unique needs of different market segments.Among the products launched
during this year were Meezan Business Plus, a Mudaraba-based account that
offers an array of free services for businesses, Meezan Euro Savings Account
and Meezan Pound Savings Account.

Meezan Bank's Car Ijarah completed its 9th year and stood at Rs. 4.2 billion
with over 8,000 active vehicles. Meezan Bank stood among the top three auto-
finance providers in the country.

Al Meezan Investment Management launched Meezan Sovereign Fund - an
open-end fund; the eighth fund under its management, including two closed-
end funds, five open-end funds and one voluntary pension scheme. The Bank
developed a financing product based on the concept of 'Wakalah', to encourage
the development of financing partnerships between Islamic banks and
Microfinance banks.

During the year, 38 Islamic banking awareness seminars were held in 23 cities
across Pakistan and were attended by more than 4,400 participants
representing customers, general public and professionals.

Meezan Bank was awarded 'Best Islamic Bank in Pakistan' by Islamic Finance
News of REDmoney Group, Malaysia and 'Best Islamic Financial Institution in
Pakistan' by Global Finance Magazine, New York.

Meezan Bank's branch network reached 222 branches in 63 cities across
Pakistan and it became the 11th largest bank in Pakistan in terms of branch
network.

The Bank demonstrated robust business growth in 2010, closing the year with a
deposit figure of Rs. 131 billion and Import/Export business of Rs. 143 billion.

2011

The inauguration of the new Head office in Karachi symbolizes Meezan Bank's
established position amongst the leading banks and the largest Islamic Bank in
Pakistan. During the year, 53 branches were opened to reach a landmark of 275
branches in 83 cities across Pakistan. Meezan Bank was awarded the Best
Islamic Bank in Pakistan for 2011 by Islamic Finance News of REDmoney
Group, Malaysia.

The bank expanded its portfolio of consumer financing products with the launch
of Meezan Laptop Ease in first quarter of 2011 which is the first of its kind in
Pakistan.

The Bank added another First in Pakistans Islamic Banking Industry by
becoming the Advisor and Lead Arranger for the first ever short-term Sukuk for
Kot Addu Power Company Limited.

During the year 27 Islamic Banking Seminars and over 110 Customer
Appreciation Days (115) were held to educate customers and the general public
and Islamic banking.


What is a Bank ? Introduction


Finance is the life blood of trade, commerce and industry. Now-a-days, banking sector acts as the backbone of
modern business. Development of any country mainly depends upon the banking system.
The term bank is either derived from old Italian word banca or from a French word banque both mean
a Bench or money exchange table. In olden days, European money lenders or money changers used to display
(show) coins of different countries in big heaps (quantity) on benches or tables for the purpose of lending or
exchanging.


Image Credits Tardiskey


A bank is a financial institution which deals with deposits and advances and other related services. It receives money
from those who want to save in the form of deposits and it lends money to those who need it.


Definition of a Bank


Oxford Dictionary defines a bank as "an establishment for custody of money, which it pays out on customer's order."


Characteristics / Features of a Bank


1. Dealing in Money


Bank is a financial institution which deals with other people's money i.e. money given by depositors.


2. Individual / Firm / Company


A bank may be a person, firm or a company. A banking company means a company which is in the business of
banking.


3. Acceptance of Deposit


A bank accepts money from the people in the form of deposits which are usually repayable on demand or after the
expiry of a fixed period. It gives safety to the deposits of its customers. It also acts as a custodian of funds of its
customers.


4. Giving Advances


A bank lends out money in the form of loans to those who require it for different purposes.


5. Payment and Withdrawal


A bank provides easy payment and withdrawal facility to its customers in the form of cheques and drafts, It also
brings bank money in circulation. This money is in the form of cheques, drafts, etc.


6. Agency and Utility Services


A bank provides various banking facilities to its customers. They include general utility services and agency services.


7. Profit and Service Orientation


A bank is a profit seeking institution having service oriented approach.


8. Ever increasing Functions


Banking is an evolutionary concept. There is continuous expansion and diversification as regards the functions,
services and activities of a bank.


9. Connecting Link


A bank acts as a connecting link between borrowers and lenders of money. Banks collect money from those who
have surplus money and give the same to those who are in need of money.


10. Banking Business


A bank's main activity should be to do business of banking which should not be subsidiary to any other business.


11. Name Identity


A bank should always add the word "bank" to its name to enable people to know that it is a bank and that it is dealing
in money.

Establish Islamic banking as banking of first choice to facilitate the implementation of an equitable economic
system, providing a strong foundation for establishing a fair and just society for mankind.
To be a premier Islamic bank, offering a one-stop shop for innovative
value-added products and services to our customers within the bounds of Shariah, while optimizing the
stakeholders value through an organizational culture based on learning, fairness, respect for individual
enterprise and performance.