Internship Report On Meezan Bank

INTERNSHIP REPORT ON MEEZAN BANK
PRESENTED TO:
Dr. Hassan Mobeen Alam
Principal
Hailey College of Commerce
Presented by:
Aleeza Ali
MC15-229
4th semester
M.Com (hons.)
A (Afternoon)
2015-2019
DATE: 12-09-2018
HAILEY COLLEGE OF COMMERCE
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AREA COVERED BY REPORT
The report which I prepared highlights almost main contents of the Meezan Bank. The
report covers the executive summary of the Meezan Bank, history of the company,
introduction, and vision, mission statement, the objectives, core values, Branch Network
of Meezan Bank, Management of Meezan Bank. Boards of Directors Meezan Bank,
Committees of Meezan Bank, and the company target setting for its future promotion,
SWOT MY Learning at Meezan Bank, (Internship), Awards and Achievements of the Bank
and Financial Analysis & interpretation. This area deeply covers the almost things which
are necessary to understand the above mention things. Later this report covers the
organizational structure which includes the management and different committees such
as business development & review, management coordination, audit committees etc.
After that report consists the data regarding the work done by student in different
department. The report covers the overall financial highlights of company which includes
ratio analysis of balance sheet items and income statement items. Later that in this report
remaining areas such as conclusion, suggestions and recommendations, skill acquired
by student and appendix which consists balance sheet, income statement, cash flow
statement and statement of owner equities. All above mention name deeply clarifies the
explanations which are necessary to understand the working report of Meezan Bank.
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PREFACE
Every student of masters in commerce at UNIVERSITY OF THE PUNJAB has an

essential requirement to do eight weeks internship in any of the well reputed organization.
The purpose of this program is to acquaint the students with practical applications of
theoretical concepts taught to them during conduct of their M.COM (hons.) program.
The internship in MEEZAN BANK is personally arranged by my own resources and the
department gave me a letter for getting this internship.
It was a nice opportunity to have a close comparison of theoretical concept in practical

field, involving the use of primary and secondary data. This Report may depict
deficiencies on my part but still it is an output of a student efforts, for which I beg pardon.
The output of my analysis is summarized in a shape of Internship the contents of the

report Shows the detail of sequence of these. The report is concluded with problem and
suggestions.
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ACKNOWLEDGEMENT
No one can say that I am perfect everyone should admit that without the help of ALLAH
and HIS Prophet MUHAMMAD (SAWW) so I bow my head to almighty Allah with
gratitude.
I wish to acknowledge my gratitude to my inspiring Teachers for their endless persistence,

Support and encouragement, and for providing me a lifetime opportunity to work with MEEZAN
BANK.
I am thankful to my parents, family and friends that continually offered encouraging

support. I am also very thankful to MEEZAN BANK Pvt Ltd at Lahore, who gave me
opportunity to work with experienced persons in their organization.
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TABLE OF CONTENTS
Sr. No. Contents Pg. No.

1 Executive Summary 7
2 Banking in Pakistan 8
3 History of MEEZAN BANK 9
4 Objectives, Scope of Bank 13
5 Philosophy of bank 13
6 Shariah board 14
7 Vision and mission 14
8 Values and service mission, core values 15
9 Staff, relationship 16
10 Competitors, 16
11 Computerized working environment 17
12 Goals, Major customers 17
13 AWARDS of MEEZAN bank 18-21
14 HIERARCHY 22
15 Board of directors 23
16 Shariah supervisory board 23
17 Shareholders 23
18 Human Resource Management 24
19 Audit Committee 24
20 Website, Registered Office 24
21 MEEZAN BANK department 25
22 General service and asset management 26
23 Deputy CEO 26
24 Corporate Banking Performance 26
25 BANK Hierarchy 27
26 Policy Formation process of MEEZAN bank 27
27 Managerial policies 28-29
28 Services of MEEZAN BANK 30-31
29 Islamic Agricultural Financing 32
30 MEEZAN BANK account 32-43
31 Procedure of opening an ACCOUNT 43-45
32 Amendments 46
33 Closing of account 47
34 Term deposit 48-50
35 Car ijara 51-53
36 Cash, remittance and clearing department 54
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List of Illustration
Sr. No. Charts Pg. No.

1 Cash, remittance and clearing department 55-59
2 Meezan home remittance 59-60
3 Financial analysis 60
4 Balance sheet 61-63
5 Ratio analysis 62-66
6 SWOT ANALYSIS 67
7 Strength 67
8 Weaknesses 68
9 Opportunities 69
10 Threats 69
11 Conclusion 70
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EXECUTIVE SUMMERY
This report is prepared for the purpose of applying my theoretical studies in to

practical experience and especially for completion of my M.COM (hons.) degree from
HAILEY COLLEGE OF COMMERECE. The Hailey College of commerce has given me
task to do internship in any organization. So I have selected the Meezan bank for getting
practical knowledge. I have divided my reports in various portions.
The first portions of my report consist on History of Meezan bank, its introduction,
objectives and goals to achieve objectives of Meezan bank. Further Readers will able to
understand about Meezan BANK mission and Vision too. In the next part, Report is giving
a whole picture of Meezan business volume, its products lines, what are the main clients,
and what are the competitors of Meezan bank. In the 3rd portion, I have written Meezan
department’s information, its task, and all department function. So it will increase the
awareness of the readers regarding to Meezan Departments activities. The other main
and vital portion of my report is my tasks which have been assigned during internship. .
In report I have mentioned all departments I worked and got practical knowledge. Here I
want to mention these entire departments where I got training. Account Opening
Department, Remittance Department, Clearing Department, Accounts Department,
Credit Department
The main portion of my report regarding to Meezan BANK HRM activities will be
start after my training program. I have written the structure of HRM department, its
recruiting process, selecting process, hiring process, training and development,
opportunities and benefits, labor management relation conduct by the Meezan BANK.
After this portion, you will be able to read about Critical analysis with my true observation.
Report will also show you the SWOT analysis, where readers could able to understand
Meezan BANK strength, weakness, opportunity and threats. After that I have also written
conclusion and necessary recommendation in light of my findings.
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BANKING IN PAKISTAN:
At the time of independence there were 631 offices of scheduled banks in Pakistan of
which 487 were located in West Pakistan alone. As a new country without resources
it was very difficult for Pakistan to run its own banking system immediately. Therefore
the expert committee recommended that the Reserve Bank of India should continue
to function in Pakistan until 30th September 1948 so that problems of time and
demand liability coinage currencies exchange etc. are settled between India and
Pakistan. The non-Muslims started transferring their funds and accounts to India. By
the end of June 1948 the number of officers of scheduled banks in Pakistan declined
from 631 to 225. There were 19 foreign banks with the status of small branch offices
that were engaged solely in export of crop from Pakistan, while there were only two
Pakistani institutions Habib Bank of Pakistan and the Australasia Bank. The
customers of the bank are not satisfied with the uncertain condition of banking.
Similarly the Reserve Bank of India was not in the favor of Govt. of Pakistan. The
Govt. of Pakistan decided to establish a full-fledge central bank. Consequently the
Governor-general of Pakistan Quaid-E-Azam inaugurated the State Bank of Pakistan
on July 1, 1948. Thus a landmark was made in the history of banking when the state
bank of Pakistan assumed full control of banking and currency in Pakistan.
The banking structure in Pakistan comprises of the following types.
1) State Bank of Pakistan.
2) Commercial Bank of Pakistan.
3) Saving banks.
4) Co-operative banks
5) Specialized credit institutions.
Up to December 31, 1973, there were 14 Pakistan commercial banks that functioned
all over the country and in some foreign countries through a network of branches. All
these commercial banks were nationalized in January 1, 1974, and were recognized
and merged into the following five banks:
1) National Bank of Pakistan
2) Muslim commercial bank limited
3) Habib Bank Limited
4) United Bank Limited
5) Allied Bank of Pakistan
The state bank of Pakistan is the Central bank of the country and was established on
July 1, 1948. The separation of East Pakistan and its repercussion in the form of
economic depression has caused a lot of difficulties to the banking system in Pakistan.
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The network of bank branches now covers a very large segment of national economy.
The numbers of branches have increased appreciably and there is now on branch of
bank for every 3000 heads of population approximately. There is done reasonable
growth in deposits from the establishment of Pakistan. Besides this growth
specialized credit and financial institutions have also developed over the years.
The Government of Pakistan in the late 90’s introducing the need for the privatization of
state owned banks and companies. The private sector has accepted the challenge and
most of the banks are privatized today. The State Bank of Pakistan issues the shares of
these periodically. Bank employees and other common peoples can also purchase these
shares and earn profit
HISTORY OF MEEZAN BANK
Introduction to Meezan Bank Limited:
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 Society General 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
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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 Bank’s position as the premier Islamic
Bank of the country Al Meezan Investment Management Limited (AMIM), the asset
management arm of Meezan Bank, introduces Meezan Islamic Fund (MIF), the country’s
first open-end Islamic Mutual Fund.
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 Islamic and Dubai Islamic
Bank, commence operations in Pakistan. Meezan continues its leadership position in the
industry by more than doubling its 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 cities 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 RED money 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 Finance business 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 RED money 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.
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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 and Umrah product -
the primary objective being the desire to facilitate Muslims in performing their holy duty.
Meezan Visa Debit Card was also launched during the year which is accepted at over 30
million outlets worldwide and allows customers to withdraw funds from their account from
more 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 News of RED money 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 RED money 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.
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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 RED money 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
Pakistan’s 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.
2012 Meezan Bank reached 10 years of Riba-free banking with 310 branches in 90 cities.
The Bank launched Visa Platinum Debit Card for its customers. The Bank also started
Premium Banking Services and opened Premium Banking Centers throughout the
country. Another important achievement was the launch of Meezan Kids and Teens Club
Account for the children and teenagers who want to save money for their future. 2013
Meezan Bank became the 8th largest bank in Pakistan in terms of branch network with
350 branches in 100 cities. Total deposits of the Bank reached Rs. 280 billion. The
Government of Pakistan nominated Mr. Irfan Siddiqui, the President of Meezan Bank and
Dr. Imran Usmani, Shariah Advisor of Meezan Bank as members of Steering Committee
for the Promotion of Islamic Banking. The Bank also made an agreement with Ethical
Finance Limited for establishing first Islamic commercial bank in Republic of Mauritius.
2014 Meezan Bank reached a branch network of 428 branches in 117 cities. The Bank
acquired Pakistan operations of HSBC. Total deposits reached Rs. 380 billion. Meezan
Bank launched MasterCard Titanium debit card, Mobile Banking Application, Meezan
Kafalah (Takaful), EBiz - Corporate Internet Banking and Meezan Roshni- Generator
financing
2016 the “State Bank of Pakistan” it governs the activities of Meezan Bank and its
Shareholder Meezan bank ltd has a strong balance sheet with excellent operating
profitability, including a capital adequacy ratio that has placed the bank at the top of
industry, a long-term entity rating of A+, and a short-term entity of A1+. As we all know
Meezan bank is operating approximately 600 branches in 68 cities
OBJECTIVES
 To be a premier Islamic bank
 To fulfill the banking requirements of the customer according to Islam
 To guide customers about different product, bank policies and requirements
regarding different types of accounts.
 Assist first time customer in opening bank accounts.
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 To promote the highest level of customer services and responsiveness to customer
base of the branch
 Intelligently access the needs and problems of the existing customer and guide
them the best
 Solution of their queries and concern as per bank policies.
 To operate the account of such customers who earns HALAL and Riba free
income.
 To represent the bank in professional manner.
 To facilitate the customer to avail our services happily and easily.
 Assure customer of a truly Halal absolutely Riba free investment.
GOALS
To achieve this objective, the bank aims to:
 Ensure that its performance in all facets of its operations more than matches that
of its competitors.
 Maintains a comprehensive range of domestic and international activities.
 Maximize contributions from its key sources of personal machines brands
representation and capital.
 Be innovative progressive and the need of its customers within the frame work of
operational and prudent risk taker.
 Act as a reputable efficient and responsible organization.
 Pursue personal policies which recognize the aspirations and performance of
individual and which are suited to the devise levels of skills
PHILOSPHY OF Meezan Bank:
MEEZAN BANK philosophy is revealed from its services standards principles that are
based on:
 Timeliness
 Riba free banking
 Excellence
 Speed
 Thoroughness
 Accuracy
 Responsiveness
 Accessibility
 Courtesy
 Commitment
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MISSION STATEMENT
 VISION
Establish Islamic banking as banking of first choice to facilitate the implementation of an
equitable economic system, providing a strong foundation for establishing a fair and just
society for mankind.
 MISSION
To be a premier Islamic bank, offering a one-stop shop for innovative value-added

products and services to our customers within the bounds of Shariah, while optimizing
the stakeholders value through an organizational culture based on learning, fairness,
respect for individual enterprise and performance.
 VALUES
Shariah-compliance, Integrity, Professionalism, Innovation, Service Excellence, Social
Responsibility. Staff that is committed, motivated and professionally trained and who are
empathic to their customers’ needs.
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 SERVICE MISSION
To develop a committed service culture which ensures the consistent delivery of our
products and services within the highest quality service parameters, promoting Islamic
values and ensuring recognition and a quality banking experience to our customers
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ORGANIZATIONAL HIERARCHY
Shariah Board of Audit

Supervisory Directors Committee
Board
Resident shariah board member Shariah audit and advisory
Product development and shariah internal audit and business risk

review
Compliance
President and CEO

Company secretariat
Finance Legal affairs
Human resources, learning Risk management

development
General services and special
Compliance assist management
Deputy CEO
Branch network Business segment Support
Bahawalpur retail banking, commercial. Operations

Baluchistan treasury &financial institutions customer support
Faisalabad corporate & investment banking information technology
Gujranwala consumer finance corporate assistance
Hyderabad project management
Karachi
Lahore
Multan
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BOARD OF DIRECTORS
Mr. Riyadh S.A.A Edrees (CHAIRMAN)
Mr. Faisal A.A.A Al Nassar
Mr. Badar H.A.M.A Al Rabiah
Mr. Mansoor khan
Mr. Alaa A. Al-Sarawi
Mr. Saad Fazil Abbasi
Mr. Muammad Zaruug Rajab
Mr. Muhammad Abdul Aleem
Mr. Noorur Rehman Abid
Mr. Talal S.A al Shehab
Mr. Irfan Siddiqui (President and CEO)
Mr. Arif ul Islam (Executive Director and Deputy CEO)
SHARIAH SUPERVISORY BOARD
Meezan Bank has a very high caliber “shariah supervisory board”. Comprises of
internationally renowned Islamic scholars. The “shariah supervisory board” regularly
reviews the bank’s activities and approves all new products. The bank also has a resident
shariah advisor. Dr. Muhammad Imran Usmani, who monitors day to day transections of
the bank. The shariah board comprises of the following members.
 Justice (Retd.) Muhammad Taqi Usmani (pakistsn) chairman

 Dr. Adbul Sattar Abu Ghuddah (Saudi Arabia)
 Shaikh Essam m. Ishaq (Behrain)
 Dr. Muhammad Imran Ashraf Usmani (Pakistan)
SHAREHOLDERS
Noor Financial Kuwait Co. KSC
Pakistan Kuwait Investment Co. Pvt ltd.
The Islamic Development Bank
Tundra Fonder AB
Al Meezan Investment Management Ltd.

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Alfalah GHP Investment Management Ltd.
Matthews’s International Capital Management LLC.
Irfan Siddiqui
Noor Al-Rehman Abid

Grandeur Peak Global Advisors LLC
AUDIT COMMITTEE
Shariah audit and advisory
 Muhammad farhan ul haq usmani
Internal audit and business risk review
 Ebrahim yakoob
Company secretariat
 Muhammad sohail khan
President and CEO

Mr. Irfan Siddiqui is the founding President and Chief Executive Officer of Meezan
Bank. Having articled with Coopers & Lybrand, London from 1975-1979, Mr. Irfan
Siddiqui qualified as a Chartered Accountant from the Institute of Chartered
Accountants in England and Wales. He has held several senior management positions
including Chief Executive Officer at Al-Meezan Investment Bank Limited, General
Manager at Pakistan Kuwait Investment Company, Advisor to the Managing Director at
Kuwait Investment Authority, Manager Finance and Operation at Abu Dhabi Investment
Company and Senior Business Analyst at Exxon Chemical (Pakistan) Ltd.
MEEZAN BANK DEPARTMENT
1. HUMAN RESOURCE MANAGEMENT TEAM
Head of Human Resources, Learning & Development
Mr. Khalid Zaman Khan holds a Masters in Human Resource Management and has also
attended a number of leadership and strategy programs in Singapore, Hong Kong, China,
U.A.E. and Pakistan. With over 20 years of experience in the field of Human Resource
Management.
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FINANCE DEPARTMENT
CFO & Group Head Finance
Shabbir Hamza Khandwala is a Chartered Accountant and carries with him a diversified
experience of 27 years. He has worked with the leading Chartered Accountant firm, A.F. Ferguson
& Co. for 9 years. His last affiliation was with KASB Group for last 10 years and he has worked
there in different capacities namely; CEO at KASB Securities, CFO & Company Secretary at
KASB Bank, CEO at KASB Premier Fund, and Director Finance at Khadim Ali Shah Bukhari &
Co. Ltd.
Mr. Shabbir Hamza Khandwala is the Chief Financial Officer of Meezan Bank. He is responsible
for all accounting & financial matter of the Bank.
COMPLIANCE DEPARTMENT
Mr. Muhammad Ismail joined Meezan Bank in 2014 as part of the Amalgamation process
of HSBC with MBL. In his current role, he is the Head of Compliance and his primary
responsibility is the management of Meezan Bank’s Reputational Risk and to ensure that
the Bank is in compliance with all Regulatory authorities’ and Bank’s policies and
procedures.
LEGAL AFFAIRS DEPARTMENT
Mr. Fareedy started his career with Cornelius, Lane & Mufti in June, 2004 where he was
involved in the legal audit of Saudi Pak Commercial Bank, Bank Alfalah and Habib Bank
Limited. He joined Warid Telecom Pakistan as Assistant Manager - Legal Affairs in July
2006 and served there till 2010. Later, he served as Civil Judge in Districts of Depalpur
and Sheikhupura from 2010 till 2014. His last assignment was Manager Legal
Affairs/Head of Litigation for Beaconhouse Group.
RISK MANAGEMENT DEPARTMENT

He is right now working with meezan bank and basically deals with the risk
management authorizes and teams. Syed tariq hassan is very compassionate about
this work and manage his work properly.
GENERAL SERVICES AND SPECIAL ASSETS MANAGEMENT

As Group Head, Administration, Branch Expansion, Security, RAMD & FRM at Meezan
Bank, his primary responsibility is to effectively expand the branch network of the Bank
across Pakistan. In addition to that he focuses on the acquisition of various cross-
industry small and medium commercial businesses for the Bank.
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Cash Department
. Cash Department performs two main functions and other subsidiary functions:
Cash Deposits
Cash Payments
Online Cash Receipts & Payments
 Cash Deposits
Cash receiving officer receives cash along with pay-in slip from the customer. He/ She
checks if the deposit slip is properly filled up containing title of account, account
number, date and amount in word and figures. He also verifies signature. Detail on
both counter file and cash receipt voucher should be the same. Cash is received by
the cash receiving officer, twice counted and matched with the deposit slip. The cash
details are written on the back of the deposit slip and are also entered in cash receiving
register. Cash received stamp is affixed on the face of the deposit slip along with the
signature of the cash receiving officer.
Deposit slip and cash receiving register is given to the officer in cash department.
Again proper scrutiny is made by the officer cash department both on cash receipt
and cash receiving register. Officer cash department signs both the deposit slip and
register; Deposit slip is credited and posted in the concerned account in the system.
 Payment of Cheques
The process for payment of cheques for local and foreign currency is same. First the
customer presents the Cheque or holder to branch and the particulars of cheques are
properly filled in. Signature of the holder is taken on the back of the cheques. Cheque
handed over to the officer cash department for scrutiny where officer checks the date,
amount in words and amount in figures, payee’s name crossing if any, account
number, cheque serial number any material alterations, endorsements and signature
of the customer. Account is debited and then the officer cancels cheque. It is posted
in the system and posting stamp and number is affixed on it. Cheque is handed over
to the cash payment officer for payment. One more signature on the back of the
cheque is taken from the holder to match with the first one, and then cash is paid to
the payee. Cash detail is written on the back of the cheque. Cash paid stamp is affixed
on the face of the cheque. Entry is passed in the cash payment register.
If the payment is of Rs. 50000 the cashier can make it on its own. If the amount is
greater than Rs. 50000 the cashier and cash deposit Incharge will verify the check
and will sing it. Then the payment will be made. Otherwise the payment will not be
made.
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Clearing Department
In clearing Miss Kubra Hussain proved so helpful. The clearing process majority
involves receiving the cheques and making payments. This process can be inward or
outward.
 Clearing Process (Inward/Outward)
Here the local Cheques are received that are drawn on BAF. All the cheques are
received on one counter along with the paying slips duly filled in properly containing
particulars of cheques and account harder. Counter folio of paying slip is handed
over to the customer by putting stamp for #cheque received for collection for
Meezan Bank Limited on it duly signed by officer. These Cheques are scrutinized
and cheques for local clearing are separated from OBC. These are then entered in
clearing register and cheques for collection are entered in OBC register and handed
over the Bills Department for collection.
Clearing officer checks and verifies title of all the cheques deposited by the
customers to confirm the good title of the cheques. Cheques are scrutinized properly
and paying slips are separated from cheques. Special crossing, endorsement and
clearing stamps are affixed on the cheques. Cheques of each bank are sorted and
arranged branch wise. All the cheques are then entered into the clearing system of
the bank. Print out of the clearing is taken and details are attached with the cheques
of each bank. Details of these banks are then entered into the clearing schedule
containing number of cheques presented and their total amount against the name of
each bank. Then total number of cheques presented to all banks and their total
amount is written on the foot of that schedule which is tallied with the clearing
register.
Next morning these cheques are delivered to the respective banks through NIFT in
clearing house of State Bank of Pakistan between 9:00 to 9:30AM. In the same
manner other banks present their clearing drawn on Meezan Bank limited. Total
number of cheques and their amount delivered to other banks and received from
them are written on the Clearing House schedule branch for their payment. After
proper scrutiny of cheques verification of signatures and confirmation of balance in
the account the Officer Cash Department pays these cheques by canceling and
posting them in the system.
If any cheque is not passed due to insufficient balance or any other reason Officer
clearing Department returns the same cheque by attaching a cheque return memo
containing reason for return. This cheque is entered into the cheque returned
register and bank charges are deducted according to the schedule of charges.
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Second clearing is called at 2:30PM to check the fate of the cheques presented to
other banks in the morning. If any cheque is to return that is delivered to the same
bank in second clearing. In the same manner if any cheque presented by Meezan
Bank Limited in first clearing is returned they receive it and once again give schedule
of clearing figure to the Officer Clearing House SBP containing number of cheques
and their amount delivered and received unpaid.
Remittances Department
The need of remittances is commonly felt in today’s business. The main function of
remittance department in a bank is the transfer of funds.
Mr.Muhammad Aqeel operation manager in Meezan Bank Limited is the officer for
Remittances Department. In remittances following banking instruments are used:
Pay order
Demand draft
Online transfer
Call deposit receipts
Traveling cheque
The procedure for dealing with all these under local as well as foreign currency in
MBL is as under.
Pay Order:
A pay order is a written order issued by a bank drawn upon & payable by itself to
pay a specified sum of money to or to the order of a specified person.
Procedure for Pay Order
Application form is given to the customer to fill. Two signatures are taken on the
form one for request and other for receiving the instrument. All the particulars of
application form are checked and bank commission charges and withholding tax is
written on the top of the application form. If the customer is maintaining his account
with the branch, he can give cheque for total amount of instrument plus bank
charges. Cheque and application from is then given to the officer Cash Department
for the payment of cheque. After proper scrutiny Officer Cash Department posts the
cheque and signs the application form in token of payment received. If the customer
wants to pay cash then cash is deposited by the customer along with the bank
charges and withholding tax.
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Application form is then given to the Remittances In charge for issuance of
instrument. He enters all the particulars of the application form in the system and
computer gives an Auto Control Number to the instrument. Printout is taken on the
block of payment Order. Two authorized officers of the branch then sign it.
Instrument is then protecting graphed and given to the customer.
Demand Draft
A Demand Draft (DD) is an instrument, which is drawn by one bank upon another
bank for a specific sum of money payable on demand. It is made by the bank, given
to the purchaser against cash or cheque.
Parties Involved In DD
Purchaser
Issuing Branch
Drawee Branch
Payee
Procedure for Issuing DD
Issuance procedure of Demand Draft is same as of pay Order.
Procedure for Demand Draft Payable
When DD advice is received, signatures of both signatory on the DD are verified. All
the particulars of the DD payable are entered in the system. Prints out of vouchers
(DD payable) are taken. When instrument is presented for payment, signatures of
the attorneys are verified on DD and after proper scrutiny; it is posted in the system
and canceled by the Remittances In charge.
Online Transfer
Sometimes when the remittance is urgently required by the remitter online Transfer
is made
Meezan home remittance

Meezan Easy Remit is a Home Remittance service which provides an easy, fast and
reliable way for Pakistanis who are working abroad to send money to their families and
relatives living in Pakistan. The money sent from abroad can be immediately collected
from any branch of Meezan Bank which has a strong presence with 601 branches in
159 cities across Pakistan.
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Ways to Send Remittance
Cash over Counter
Receive cash payment up to Rs. 500,000

From any branch of Meezan Bank without
Having to open an account.
Online Transfer
Instant and real time credit to the beneficiary's

Meezan Bank account at any branch in pakistan
DEPUTY CEO
Mr. Ariful Islam joined the bank as its first Chief Operating Officer in April 1999. He is
presently the Bank’s Deputy CEO and an Executive Board member. He is also a
member of the Risk Management Committee of the Board as well as a member of
several Management Committees of the Bank.
CORPORATE BANKING PERFORMANCE
Over the years, Meezan bank has been able to grow its corporate assets portfolio
considerably despite the challenges. With a focused development strategy, we have
been able to build a healthy and well diversified portfolio that has resulted in our
corporate assets book to grow at a CAGR of 31% per annum over the last 5 Years.
Corporate Trade Business
The Bank’s trade business (import and export) performed very well in 2016 in both
volume and income and registered a growth of 20% and 27.5%, respectively,
notwithstanding the fact that exports of the country as a whole dropped by 13% during
the year. The total trade business volume in 2016 crossed Rs. 552 billion.
Key Corporate Banking Solutions
Meezan Bank provides integrated cash management and trade finance services to
various organizations as well as financial institutes across the country. With one of the
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most comprehensive and sophisticated digital platforms, Meezan Bank ensures world-
class services and financial solutions to its clients.
The Bank, with strong system capabilities and well equipped business teams, is trusted
both by local customers and multinational companies to be their strategic banking partner
for their transactional as well as project based banking needs. Over two-third of the Bank’s
trade business originates from corporate clients. Our extensive branch network in 159
cities pan Pakistan and product depth has helped us to be a part of some of the country’s
most transformative projects. As we grow, we maintain a steadfast commitment to our
values, enabling us to serve our core clients with distinction.
 Staff
Committed, motivated and professionally trained employees who are empathic to their
customers’ needs.
 Relationships
Our relationships are long-term. We recognize and value our customers’ needs above all
and strive to ensure their fulfillment. All customers are treated with professionalism and in a
friendly manner. It is our endeavor to ensure that they receive efficient and timely service.
The Meezan Bank experience is a unique one.
 Competitors
Despite notable economic uncertainties the financial strength of Meezan Bank

Limited has greatly enhanced during the previous years. The successful expansion
program proved their capability and
Commitment in comparison with the competition in the financial sector. The Banking
structure in Pakistan comprises of:
Central Bank
Commercial Banks
Investment Banks
Development finance Institutions (DFIs)
Specialized Banks
Foreign Banks
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Meezan Bank Limited is a private commercial bank so the major competitors of
Meezan Bank Limited is the following
Muslim Commercial Bank
Standard chartered
Soneri Bank Ltd
Prime Commercial bank
The bank of Punjab
Bank Al-Habib Ltd
ABL
Faysal Bank Ltd
NIB
Arif Habib Rupali Bank Ltd.
Majors Customers of MEEZAN BANK
Somme of the major customers of bank of Punjab is:
 Educational institute
 Agriculturalists
 Pakistan Telecommunication Private Limited
 WAPDA
 Pharmaceutical Companies
 WASA
POLICY FORMATION PROCESS OF MEEZAN BANK
MEEZAN BANK has also formed some policies within which they carry out their business
operations and management of their resources. Without these resources company feels
zero survival as these policies act like blood circulation of any strong positional bank like
MEEZAN BANK. But before going through certain policies of MEEZAN BANK. I should
know what procedure they take to form a policy and plan of action.
Managerial Policies
The managerial policies performed by MEEZAN BANK are of the following types:
Financial Policies
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Procurement Policies
Marketing Policies
Promotional Policies
Lending Policies
Personal Policies
The implementation of these policies in MEEZAN BANK is as follows:
FinancialPolicies
The financial policies of any bank are the

most important policies through which the
whole banking activity is conducted on:
 Sources of Funds
 Use of Funds
Sources of Funds
The bank’s finance is requiring funds from the following sources:
 Deposits of account holders

 Doing business with customers
Use of Funds
After the acquisition of the funds their uses become necessary. The bank seeks the best
way for making investment to get more profit with the maximum security. The bank has
an investment portfolio in which it allocates it funds for doing business with customers,
investment in the stock market, investment in the real estate property etc. For allocation
of funds a bank has to follow some banking policies and the prudential regulation of SBP.
These are:
 A bank has to maintain liquidity with the central bank, i.e. 25% of which total
deposits.
 A bank can’t invest all of its funds otherwise it will be difficult to meet the urgent
needs.
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Marketing policies
Marketing policies are also the most important policies because they are related to the
growth of the organizations. Marketing for a bank would
mean:
 Creation of new products and services

 The bank’s marketing must be consumer oriented
Following are the marketing policies of MEEZAN BANK:
 Keeping track of the latest development in the world and incorporate latest and
most modern equipment in marketing the banking procedure easy for the
customers.
 Development of the products for the customers.
 Providing good services and maintaining good relations with the customers.
Promotional Policies
Public relation and advertising has assumed a great importance in the modern banking business.
As for as promotional activities are concerned the main objective of the bank is to inform the
existing clients and other people about its new products or change in the existing services.
MEEZAN BANK establishes its purpose:
 Direct contact with the customers

 Relation with the business organizations
 Community relations
Services provided by Meezan Bank
ATM Facility
Letter of Credit
Pay Order
On-Line Banking
Agriculture Financing
Mail Transfer
Demand Draft
Collection of Utility
Lockers Facility
Cash Management Service
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Automated Teller Machine (ATM)
Through the ATM’s Customers have access to the various services such as withdrawal,
balance enquiry and mini statement? Complete security is ensured because access to
the account is only possible by entering a four digit personal identification number (PIN)
known only to the account holder. Cash withdrawal limit is up to Rs.20, 000 per day.
Annual charges of ATM is Rs.250/- per card.
Letters of Credit
MEEZAN BANK is offering its business customers the widest range of option in the area
of money transfer. MEEZAN BANK’s letter of credit service is with competitive rates,
security, and ease of transaction, MEEZAN BANK Letter of credit is the best way to do
the business transactions.
Pay Order
MEEZAN BANK provides transfer of money using different facilities. Its pay orders are a
secure and easy way to move the money from one place to another. The charges for this
service are extremely competitive
Online Banking
MEEZAN BANK is currently offering window-based online banking to its customers, which
gives access to information on their accounts and the liability to act on the latest
information received over the net.
Mail Transfer
It helps to move money safely and quickly from MEEZAN BANK Mail Transfer service.
The rates for this service is quiet impressive as compare to the market.
Cash Management Service
Cash Management is a process of collections & payments on behalf of the Customers

using the Bank Network. The objective is to facilitate organizations with multiple collection
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points in gathering Cash / Funds and making them available in the customer operating
Account.
Similarly, it facilitates disbursement of frequent and or Bulk payment to multiple locations.

This should be accomplished with minimal supervision by the customer, supported by an
automated system to provide timely and requisite MIS / Reconciliation under agreed
Service Levels.
Demand Drafts
MEEZAN BANK provides safe, speedy and reliable way to transfer money at vary
reasonable rates. Any person whether an account holder of the bank or not, can purchase
a Demand Draft from a bank branch.
Utility Bills
The bank collects all kinds of utility Bills including Electricity, Gas and Telephone from
customer. All Branches of the Bank Collect Utility Bills during banking hours which are
paid through cash and cross checks.
MEEZAN BANK Lockers
It is one of the utility services that MEEZAN BANK provides to their customers for keeping
jewelry, important documents and other valuables. The Bank of Punjab Lockers are
available in three different sizes Small, Medium and Large on an annually fee with one
time Security Deposit respectively to the size of locker. Locker holders need to have an
account in the Bank.
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Islamic Agricultural Financing
Meezan Bank is considered as a trend setter in Islamic Banking in Pakistan mainly on

account of offering wide range of Shariah-Compliant banking solutions to cater different
needs of its customers. Following its track record, Meezan Bank is now offering Islamic
Agricultural Financing Products to farmers.
PMYBL SCHEME
Under this scheme, financing will be available to the youth of
Pakistan under the four major categories, along with the eligibility criteria:
Small Entrepreneur
Unemployed youth, especially educated ones who are looking for
establishing or extending Shariah compliant business in their personal capacity through
establishment of enterprise.
Micro Enterprise:
Individuals who have successfully completed 3-4 cycles with
Akhuwat and want to graduate from their current business size.
Agriculture (Tractor Ijarah):
Young farmers who require Tractor financing. 4. Car Ijarah:
Vehicles like Bolan & Ravi will be financed for the purpose of Taxi, Delivery Vans and
similar activities etc.
MEEZAN BANK ACCOUNT

Meezan Bank offers the largest range of Riba-free Deposit accounts for Personal
Banking. Following are:
 Current account.
 Savings accounts.
 Special savings accounts.
 Meezan Asaan accounts.
Current accounts
1. Dollard account
2. Euro account
3. GPB account
4. Rupee account
5. Current account
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Meezan Current Account is a Rupee-based current account that provides you the
convenience of putting your money in a Riba-free account and accessing it without any
restrictions on withdrawal while enjoying a host of professional conveniences from
Meezan Bank.
Meezan Current Account can be opened by Individuals, Sole-Proprietorships,
Partnerships and Limited Companies.
Key features
 Minimum investment
 Online branch banking
 Free internet banking
 No restriction
 Priority desk
 Unlimited withdrawal
 No deductions
 Takaful coverage
Dollar account
Meezan dollar current account is based on Qard contract where the bsnk is liable to pay
ypur moeney back on demand.the bank can use these funds for investment and other
purposes. Tis account allows you the peace of mind of having your money safely
deposited with an Islamic bank with the additional assurance that the bank is not
investing your money in activities that contravene shariah principles. It is therefore an
excellent business tool for individuals and corporate clients both for meeting their
business needs and for diversifying their investment in different foreign currencies to
safeguard against currency fluctuations.
Key features
 Minimum deposits
 Routine withdrawal
 Prior notice
 Foreign remittance
 No deductions
Meezan euro current account

Meezan euro current account is based on Qard contract where the bank is liable to pay
your money back on demand. The bank can use these funds for investment and other
purposes. This account allows you the peace of mind of having your money safely
32
deposited with the Islamic bank with the additional assurance that the bank is not
investing your money in activities that contravene shariah principles.
It is therefore an excellent business tool for individuals and corporate clients both for
meeting their business and for diversifying their investment in different foreign
currencies to safeguard against currency fluctuations. Meezan euro current account can
be opened by individuals, sole proprietorship, partnerships and limited companies.
Key features:
 Minimum deposit
 Routine withdrawals
 Prior notice
 Foreign remittance
 No deductions
Meezan pound account

Meezan pound current account is based on Qard contract where the bank is liable to
pay your money back on demand. The bank can use these funds for investment and
other purposes. This account allows you the additional assurance that the bank is not
investing your money in activities that contravene shariah principles. It is therefore an
excellent business tool for individuals and corporate clients both for meeting their
business needs and for diversifying their investment in different foreign currencies to
safeguard against currency fluctuations.
SAVINGS ACCOUNTS
You can open four different types of savings accounts with both in local and foreign
currency
 Rupree saving account
 Euro saving account
 Pound saving account
 Dollar saving account
 Meezan bachat account
 Meezan labaik saving account
 Meezan kids club saing account
Rupee saving account

On agreeing to become a rupee saving account holder, the customer enters into a
relationship based on mudarabah with meezan bank. Under this relationship, the
customer is an investor ( Rab-ul-maal) and the bank is the manager (mudarib) of the
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funds deposited by the customers. The bank allocates the funds received from the
customers to a deposit pool; funds from the pool are utilized to provide financing to
customers under Islamic modes
That include, but are not restricted to murabaha, ijarah, istisna and diminishing
musharkah
Profit sharing ratio:
Bank will share 50% of gross income as mudarib
Depositors will share 50% of gross income as rab-ul-maal
Key features:
 Minimum investment
 Withdrawals
 Internet banking
 Profit payement and calculation
 Online branch banking
 Priority desk
Doller saving account:

The Riba-free Dollar Savings Account is a Mudarabah-based savings account that you
can open and operate using US Dollars and is therefore an excellent business tool for
both individuals and corporate clients for meeting their business needs and for
diversifying their investment in different foreign currencies to safeguard against currency
fluctuations.
Meezan Dollar Savings Account can be opened by Individuals and businesses including
Sole Proprietorships, Partnerships and Limited Companies.
Key features:
Minimum deposit
No deduction
Profit payement and calculation
Foreign remittance
Takaful coverage
Euro saving account:

The Riba-free Euro Savings Account is a Mudarabah-based savings account that you
can open and operate using Euros and is therefore an excellent business tool for both
individuals and corporate clients for meeting their business needs and for diversifying
34
their investment in different foreign currencies to safeguard against currency
fluctuations.
Meezan Euro Savings Account can be opened by Individuals and businesses including
Sole Proprietorships, Partnerships and Limited Companies.
Key features:
Minimum deposit
Routine withdrawal
Prior notice
Profit payment and calculations
Foreign remittance
Takaful coverage
No deductions
Pound saving account:

The Riba-free Pound Savings Account is a Mudarabah-based savings account that you
can open and operate using Pounds and is therefore an excellent business tool for both
individuals and corporate clients for meeting their business needs and for diversifying
their investment in different foreign currencies to safeguard against currency
fluctuations.
Meezan Pound Savings Account can be opened by Individuals and businesses
including Sole Proprietorships, Partnerships and Limited Companies.
Key features:
Minimum deposit
Routine withdrawal
Prior notice
Profit payment and calculation
Foreign remittance
Takaful coverage
No deductions
Special saving accounts
Meezan offers four types of special saving accounts that are beneficial for the common
living all classes of people in saving their amount with shariah considering Meezan bank
 Meezan bachat account
 Meezan kids club account
 Labbaik account
 Meezan teens club account
Meezan Bachat account

Meezan Bachat Account is a unique saving account that provides high expected
monthly returns with the flexibility to withdraw savings if needed. Meezan Bachat
35
Account offers a higher expected rate of return with nearly the same convenience and
service of a regular savings account.
Meezan Bachat Account can be opened by salaried or Self-employed, Housewives and
Retired individuals.
Key features
Low minimum investment
Free internet banking
Profit payment
Profit calculation
Maximum balance link
Free online banking
Lower weightage
Takaful coverage
How the Bachat saving account works
On agreeing to become a Bachat account holder, you will enter into the relationship of
Mudarabah with the bank. Under this relationship, you will be the investor (rab-ul-maal)
and the bank is the manager (mudarib). The bank allocates the funds received from the
customers to a deposit pool; funds from the pool are utilized to provide financing to
customers under Islamic modes
musharkah
Profit sharing ratio

Labbaik account
Meezan Labbaik Saving Asaan is an ideal deposit product for you if you are an
individual saver and wish to save for your spouse, children, parents, etc. You can take
benefit from this special Mudarabah based Deposit account (available in six months to
twenty years plan) for Umrah & Hajj where you will also be entitled for profit on the
deposited amount, thus providing Customers a bigger incentive to save for Umrah/Hajj
through Meezan Labbaik Saving Asaan. Meezan Labbaik Saving Asaan Account can be
opened by Individuals.
Key feature
minimum investment
Duration
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Additional deposit
Recurring deposit
Customer choice
Withdrawal schedule
One account, many people
50% redeem
No cheque book or card
How the labbaik saving account works

On agreeing to become a labbaik saving asaan account holder, you will enter into the
relationship of Mudarabah with the bank. Under this relationship, you will be the investor
(rab-ul-maal) and the bank is the manager (mudarib). The bank allocates the funds
received from the customers to a deposit pool; funds from the pool are utilized to
provide financing to customers under Islamic modes
musharkah

Meezan kids club saving account
Then Meezan Bank has something very special for its customers a chance of having
their own Mudarabah-based Meezan Kids Club Account. A customer can now put all
there pocket money, Eidi and all other cash in this account, where it will be safe and
invested in line with Islamic principles. When you get this account opened, you will get
to learn a lot more about managing your savings. bank will also make sure that the
customer have fun while learning to save the right way.
Key feature:
Minimum investment
Age group
Great gifts
Halal profits
Kids club certificate
Personalized cheque book
Personalized debit card
Internet and online banking
SMS alert
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Takaful coverage
Upgrade account
How kids saving account works:
On agreeing to become a kids club saving account holder, you will enter into the
(rab-ul-maal) and the bank is the manager (mudarib) the bank allocates the funds
musharkah.

Meezan Teens club account
Meezan Teens Club Account is a Mudarabah- based relationship where you will be the
Investor (Rab-ul-Maal) and the Bank will be the Manager (Mudarib). Your funds will be
utilized by the Bank to provide Islamic financing to customers. Meezan Bank is a keen
Socially Responsible Organization and realizing this responsibility, the Teens Club
Account aims to provide a forum to teens where their maturing minds are groomed in a
modern yet Islamic way. The Teens Club Account provides a blend of fun learning with
special focus on character and value building.
Key features
Minimum investment
Age group
Great gifts
Halal profits
Teens club certificate
Personalized chequebook
Personalized debit card
Internet and online banking
SMS alert
Takaful coverage
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How to use a teen saving account
On agreeing to become a teen saving account holder, you will enter into the relationship
of Mudarabah with the bank. Under this relationship, you will be the investor (rab-ul-
maal) and the bank is the manager (mudarib) the bank allocates the funds received
from the customers to a deposit pool; funds from the pool are utilized to provide
financing to customers under Islamic modes
musharkah.

Meezan Asaan Accounts
 Asaan Current Account

 Asaan saving account
Asaan current account

The Riba-free Meezan Asaan Current Account is another addition to the offerings of
Meezan bank. Meezan Asaan Account opens the doors of banking products and
services to those customers who have limited proof of source of income. The account
can be opened with just Rs. 100/- and a valid CNIC/ SNIC / Passport / National Identity
Card for Overseas Pakistanis (NICOP) / Pakistan Origin Card (POC) / Alien Registration
Card (ARC) issued by National Aliens Registration Authority (NARA) / Pension Book.
(Meezan Asaan Current Account is meant for resident individuals having Pakistani
nationality only)
Key features
Minimum deposit
Internet banking
Online branch banking
Withdrawals
Maximum credit balance
Visa debit card
Takaful coverage
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How the meezan asaan current account works
Meezan asaan current account is based on Qard contract where the bank is liable to
pay the deposited funds back on demand. The bank can use these funds for investment
and other purposes. This account allows you the peace of mind of having your money
safely deposited with the bank with additional assurance that the bank is not investing
your money in activities that contravene shariah principles.
Fatwa:
Meezan asaan current account is based on Qard contract where the bank is liable to
pay the deposited funds back on demand. The bank can use these funds for investment
and other purposes. This account allows you the peace of mind of having your money
safely deposited with the bank with additional assurance that the bank is not investing
your money in activities that contravene shariah principles.
Asaan saving account
The Riba-free Meezan Asaan Savings Account is another addition to the offerings of
Meezan bank. Meezan Asaan Account opens the doors of banking products and
services to those customers who have limited proof of source of income. The account
can be opened with just Rs. 100/- and a valid CNIC/ SNIC / Passport / National Identity
Card for Overseas Pakistanis (NICOP) / Pakistan Origin Card (POC) / Alien Registration
Card (ARC) issued by National Aliens / Registration Authority (NARA) / Pension Book.
(Meezan Asaan Savings Account is meant for resident individuals having Pakistani
nationality only)
Key features
Minimum deposit
Internet banking
Payement and collection
Withdrawal
Crediyt balance
Visa debit card
Takaful coverage
How meezan asaan saving account works
On agreeing to become asaan saving account holder, you will enter into the relationship
of Mudarabah with the bank. Under this relationship, you will be the investor (rab-ul-
40
maal) and the bank is the manager (mudarib) the bank allocates the funds received
from the customers to a deposit pool; funds from the pool are utilized to provide
financing to customers under Islamic modes
musharkah.

Meezan Express Accounts
 Meezan express current account

 Meezan express saving account
Meezan express current account
The Riba-free Meezan Express Current Account is another addition to the offerings of
Meezan Bank. Meezan Express Current Account has been designed to facilitate the
beneficiaries of home remittance and encourage them to use formal banking channels.
The biggest advantage of Meezan Express Current Accounts is, that it can be opened
on the basis of a CNIC only* & there is NO WITHHOLDING TAX on cash withdrawals
through cheque or ATM.
*Terms and Conditions apply
 Meezan Express Current account can be opened in PKR only

 Outward Foreign remittances are not allowed from Meezan Current Express account
 Meezan Express Current account can only be fed through home remittances, no other
credits are allowed
 Debit cards issued on Meezan Express Current accounts can only be used locally (Pay
Pak Debit Cards)
Key features
Withdrawals
Internet banking
Takaful coverage
Express saving account

Meezan Express Savings Account has been designed to facilitate the beneficiaries of
home remittance and encourage them to use formal banking channels. The biggest
41
advantage of Meezan Express Savings Accounts is it can be opened on the basis of a
CNIC only* & there is NO WITHHOLDING TAX on cash withdrawals through cheque or
ATM.
*Terms and Conditions apply
 Meezan Express Savings account can be opened in PKR only

 Outward Foreign remittances are not allowed from Meezan Express Savings account
 Meezan Express Savings account can only be fed through home remittances, no other
credits are allowed
 Debit cards issued on Meezan Express Savings accounts can only be used locally (Pay
Pak Debit Cards)
Key features
Withdrawals
Internet banking
Profit payement and calculations
Takaful coverage
How the express saving account works
On agreeing to becoe a express saving asaan account holder, you will enter into the
(rab-ul-maal) and the bank is the manager (mudarib) the bank allocates the funds
musharkah

Procedure of opening Account
The procedure of opening the account is as given under for account Mis Maria Raza
proved so helpful to me to learn that opening of an account and it’s all procedure which
is as under: For opening of an account there are different types of account holders are
required for all these types. The operation/procedure requirement that is needed for
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“Individual Account” differs greatly from the “Joint Accounts” proprietorship A/C,
Partnership A/C, Private Limited Company A/C and Public Limited Company A/C.
Individual’s Account
When a single man or woman opens an account in his or her own name and has the
right to operate it is called individual A/C.
Documentation
Copy of National Identity Card.

Proof of Income
Proper Identification (Introduction).
Operations
 The person place in the type of account and type of operation required in the
account opening form.
 He/she fills in part 1 of the form a fix his/her either two of four similar signature (
or thumb expression in the signature space ) and get it introduced and signed by
a person who already has an account with the bank and write his account number
in the specific rows in a specific space.
 The person fills his or her father, mother, husband/wife or any other relative’s
name his/her address, phone number, his or her sign to certify this requirement.
This requirement is needed because in his/her absence bank can have
correspondence with a specific person.
 The person deposits the initial amount for opening account onto the cash counter.
The person put his signature on form on two places in “authorized Signature” and
fills in the “Title of Account” space by writing his name. If the person put his
signature in Urdu or any other language other than English he signed a
“Vernacular Form”.
 If the person has changed its signature then he must have to sign the “signature
change undertaking”.
 The next step is entering in computer because the centralized account opening
structure and generation of account number.
43
1. Account Opening Form
First of all the customer fills the account opening form (AOF). Filling of account opening
form includes type of account, currency of account, name, and address, signature of
customer and signature of introducer and attach a photocopy of national identity card.
He also signs an undertaking that he will follow the rules and regulations of the bank.
2. Introduction
The signature and account number of the account holder introducing the account to the
new person is obtained on the account opening form.
3. Specimen Signature Card
The signature of the client is obtained on a specimen signature card (S.S Card). The
card is obtained with two signatures from the customer. Every time a cheque is received
for payment from the client the signature on the cheque is verified by comparing it with
S.S Card.
4. Requisition slip
A requisition slip for Cheque book is also given to the customer. The customer fills it
and gives it to the account opening Officer.
5. Know Your Customer Form
Every account holder fills this form. The basic purpose of this form is to get some basic
information about the customer’s business and source of incomes.
6. Account Number
When all the formalities are completed an account number is allotted to the customer
and all the information is entered into the computer and register. Then that account
number is written on S.S Card and account opening form.
7. Depositing of amount in account
The client deposit cash in the account. For this purpose cash pay-in-slip is used. The
minimum initial deposit is fixed for each account according to the nature of account. For
example for PLS / saving account the minimum requirement is Rs.100 only.
44
8. Issuance of a Cheques Book
After opening an account with the bank the account holder makes a request in the name
of the bank for the issuance of a Cheque book. Such a request is known as Requisition
Slip. BAL issues Cheque books from 10 leaves to 50 leaves. When he used this book
completely then he can apply for another known as subsequent Cheque Book. This
process takes a day because the Cheque books come from the Karachi head office.
9. Entry of Cheques Book
Before issuance of a Cheque book the bank stamp every leaf with the account number
of the customer enter it in the cheque book register and computer and issues the
cheque book to the customer after his signature on the register.
10. Letter of Thanks
A letter of thanks is prepared. One letter is for the customer and one for the introducer.
One copy is send to the customer and the other copy is kept in the record along with
other documents.
Amendments/Changes in Accounts
BAL provides the facility of amendments in accounts, whenever required by the

customers. Account holder gives an application along with necessary documents to the
bank. Then the amendments are made in the account of the depositor. These
amendments can be made by filling certain application forms. These forms are as
follows:
1. Change of Address Form

To change the address of the account holder
2. Change of signature form

To change the signatures of the customer.
3. Liability / Inquiry Form
This form is used if some person has acquired loan from the bank and he wants to close
his current account then he fills this form and this form is send to credit department.
45
When the credit department declares him free from any debt obligations then his
account is closed.
4. Mandate to the Third Party to Operate the Account
This form is used to enable any third party to operate the account.
Closing of Accounts:
The procedure of closing of account is as follows
1. First of all the customer gives the request to close the account.
2. His signatures are verified.
3. He withdraws all his money from his account but in case of current account Rs. 150 is
deducted as a charge of closing the account.
4. A liability form is send to the credit department if he has taken a loan from the bank.
If he is cleared from all the liabilities then further proceeds are taken. 5. Permission is
granted by the authorized person (the manager).
6. Account is closed in the computer system.
7. His specimen signature card is attached with the account opening form and marked
closed.
Collection
All the cheques under collection are called cheques under Collection in Meezan
Bank Limited. There are two types of bills for collection:
Outward Bills for Collection

Inward Bills for collection
Daily Customer Movement List
All the changes that are made in accounts of customer are shown in the daily
customer movement list. By using this list people of Accounts Department can
prepare the vouchers.
Following activities are performed by Account Department
Voucher preparation
Preparation of daily, weekly, monthly, and annual statement.
Budgeting and fixed assets
Employer’s benefit
46
Expenditure approval
Term deposit
47
Truly Halal Returns
Meezan Bank provides a complete range of short term and long term deposit
certificates with the flexibility of monthly, quarterly, semi-annual and annual returns
Certificate of Islamic investment
Truly Halal and Absolutely Riba-Free
The Certificate of Islamic Investment (COII) is a Mudarabah-based deposit product

through which you can invest your savings for periods ranging from 3 months to 5 years
and earn Halal profit on a periodic basis.
Key features
Investment period
Profit payement
Minimum investment
COII Plus
Premature withdrawal
How the certificate of Islamic investment works
Profit sharing and distribution method
The distributions income of the deposit pool is distributed among the bank ( Mudarib)
and customer (Rab-ul_maal) on the basis of a pre-determined profit sharing ratio and
weightage which shall be announced 3 days before beginning of every month and shall
not be changed during the month. According to the sprit of mudarbad, the profit rates
are calculated and announced upto seven days of the subsequent months from the
monthly income of the trade activities of the pool. Conversely, in case of the loss as per
the rule of mudarbah, the Rab ul Maal shall bear the loss in the ratio of their investment.
Bank will share 50% of distributable income as Mudarib

Depositors will share 50% of distributable income as rab-ul-maal.
48
Long Term Investments with Halal Monthly Returns
Meezan Amdan Certificate (MAC) is a Mudarabah-based long-term deposit product that

offers a high expected return to investors and is ideal for those individuals and
corporate clients who need a regular stream of monthly income.
Key Feature
Investment periods
Profit payements
Minimum investment
Pre mature withdrawal

not be changed during the month. According to the sprit of mudarbad, the profit rates
are calculated and announced upto seven days of the subsequent months from the
the rule of mudarbah, the Rab ul Maal shall bear the loss in the ratio of their investment.
Bank will share 50% of distributable income as Mudarib

Depositors will share 50% of distributable income as rab-ul-maal.
Short-term Halal Investments with Competitive Returns
The Riba-Free Monthly Mudarabah Certificate (MMC) is a short-term deposit product

which has been designed to give you expected monthly returns
Key features
Investment periods
Profit payments
Minimum investment
Dollar mudarbah certificate
The Dollar Mudarabah Certificate (DMC) is a deposit product through which you can
invest your US Dollars with Meezan Bank for periods ranging from 3 months to 3 years
and earn six-monthly or at maturity profit payments on your investment.
49
Key features
Investment periods
Profit payments
Minimum investment
not be changed during the month. According to the spirit of Mudarbad, the profit rates
are calculated and announced up to seven days of the subsequent months from the
the rule of Mudarbah, the Rab ul Maal shall bear the loss in the ratio of their investment .
What is Meezan Car Ijarah
Car Ijarah is Meezan Bank’s car financing product and is Pakistan’s first Interest-free car
financing. It is based on the Islamic financing mode of Ijarah (leasing). This product is
ideal for individuals who want to get interest-free financing for acquiring a car.
Car Ijarah works through a car rental agreement, under which the Bank purchases the
car and rents it out to the customer for a period of 1 to 7 years, agreed at the time of the
contract. Upon completion of the Ijarah period, the vehicle will be sold at a token amount
or gifted to the customer.
Key feature
Rental payment starts after vehicle delivery

Quick processing time
Tracer will be installed in all vehicles free of installation and monitoring cost
Free accident death coverage up to Rs. 400000
Minimum security deposit as low as 15%
Meezan bank will bear W.H.T (withholding tax) on purchase of vehicles
Lower upfront payment
50
Eligible for Car Ijarah
Salaried Professionals
 Permanent employees
3 months in current job with a minimum 2 years continuous employment history
 Contractual employees
6 months in current job with a minimum 3 years continuous employment history.
Net take home income
In excess of 2 times the monthly rental (inclusive of takaful)
Spouse’s verifiable income

 Clubbed to an extent of 50%.
 In case of other loans, all monthly payments including proposed Ijarah rental
combined not to exceed 50% of net / take home income
 Both data check & e-CIB should be clear and must not have current default /
overdue at the time of case approval
Businessmen
 Minimum experience 2 years continuous involvement in current business / industry

 Position Proprietor, partner or director (In case of partner or director, percentage of
sharing / holding will be applied)
 Net take home income In excess of 2 times the monthly rental (inclusive of takaful)
 Spouse’s verifiable income Clubbed to an extent of 50%.
 In case of other loans, all monthly payments including proposed Ijarah rental combined
not to exceed 50% of net / take home income
 Both data check & e-CIB should be clear and must not have current default / overdue at
the time of case approval
51
Residual Value Ijarah
In a regular Ijarah model, the customer does not have to pay any money to the Bank for
acquiring the car upon completion of the Ijarah period.
In the Residual Value Ijarah model, the monthly rentals are significantly lower than the
regular Ijarah model because here the customer agrees to pay a certain sum to the Bank
for acquiring the car upon completion of the Ijarah period. The customer also has the
option that instead of paying the Bank and acquiring the car upon completion of the Ijarah
period, he can simply return the car to the Bank.
This model enables the customer to take a car on significantly reduced rental. Customer
can also, depending on his monthly rental payment ability, get a much higher-value car
than he can under the regular Ijarah model.
Premature Termination
If the customer wishes to terminate the Agreement before the agreed period, the
customer will have an option to buy the vehicle on the agreed purchase price as
mentioned in the Terminal-value schedule forming part of the Ijarah documents. The
purchase price takes into consideration the following amounts
 The principal outstanding as determined by the amortization schedule of the Ijarah

contract.
 Residual value amount.
Maturity of RV Ijarah
 Upon completion of the Ijarah period and payment of all rentals, customer will have a
option to purchase a car.
52
Car Ijarah Products
 New car
 Used car
 Imported car
Fatwa:
AWARDS OF MEEZAN BANK

Pakistan Banking Awards
 Best Islamic Bank in (2016-17)
53
Pakistan Society of Human Resource Management
(2017)
 Best Place to Work in Top 10 Best Place to Work Category

 Best Place to Work in Financial Services Industry Category
Employers Federation of Pakistan (EFP)
 1st Position - Best HRM Practices (2016,2017)
 3rd Position - Employer of the Year (2016)
MasterCard MENA Acquirer Forum
 Most Innovative Solution Deployed for Cash Displacement (2017)
PMI Karachi Pakistan Chapter
 PMO of the Year (2017)
ICAP and ICMAP
(2007, 2009, 2010, 2012, 2013, 2014, 2015, 2016, 2017)
 Best Corporate Reports Awards
CFA Society Pakistan

(2010, 2011, 2012, 2013, 2014, 2015, 2016, 2017)
 Islamic Bank of the Year
 Corporate Finance House of the Year (2013,2015)
 Corporate Finance House - Fixed Income (2017)
WORLD ISLAMIC BANKING CONFERENCE

 Country Level Award for the Banks Based In Pakistan (2017)
South Asian Federation of Accountants (SAFA)
(2014, 2015, 2016, 2017)
 'Certificate of Merit' in the 'Private Sector Banks' category of Best Presented

Accounts Award
Global Islamic Finance Award

 Best Research and Development in Islamic Finance (2013)
54
The Banker
 Top Islamic Bank in Pakistan (2014,2015)
 Islamic Bank of the Year, Pakistan (2016,2017)
Global Finance
(2008, 2009, 2010, 2011, 2012, 2013, 2014, 2015, 2016, 2017)
 Best Islamic Financial Institution in Pakistan
 Best Bank in Asia-Pacific Region (2017)
Global Finance - The Innovators

 ‘Innovator in Islamic Finance 2016’ - for Meezan UPaisa, World’s First Islamic
Branchless Banking (2016)
Asia Money
(2010, 2012, 2013, 2014, 2015)
Islamic Finance Forum of South Asian (IFFSA) Awards

(2016)
 Gold Award for ‘Islamic Bank of the Year – Pakistan’

 Capital Markets Service Provider of the Year
 Islamic Microfinance Company/Project of the Year
 Advisory Services Provider of the Year
(2017)
 Gold Award For Best Islamic Bank Of The Year (Fully Fledged)
 Gold Award For Islamic Finance Entity Of The Year
 Gold Award For Islamic Finance Education Provider
 Gold Award For Islamic Finance Advisory Services Provider
 Gold Award For Islamic Finance Capital Markets Service Provider
 Gold Award For Islamic Investment Bank Of The Year
 Silver Award For Islamic Finance Deal –For Syndicated Project Finance Facility
AAA Asset
(2011)
 Best Islamic Bank in Pakistan

 Best Islamic Trade Finance Bank in Pakistan
 Best Islamic Deal – Pakistan
55
(2012)

 Best Islamic Deal - Pakistan
 Best Islamic Retail Bank in Pakistan
 Highly Commended Deal - Pakistan
(2013)

 Best Islamic Highly Commended Deal - Pakistan
(2014)

 Sukuk House Pakistan
 Best Deal, Pakistan
 Best Islamic Structured Trade Finance
 Best Deal-Highly Commended, Pakistan
(2015)

 Islamic Investment Bank, Pakistan
 Best Sukuk House, Pakistan
 Best Islamic Trade Finance Deal, Pakistan
(2016)

 ‘Best Bank for Digital Innovation’ across Asia
 ‘Best Digital Banking Product for Meezan UPaisa’ across Asia
 Best Retail Bank
 Best Trade Finance Bank
 Best Investment Bank
56
 Sukuk House of the Year
 Best Deal Pakistan of K-Electric 22 Billion PKR Rated, Listed and Secured
Diminishing Musharaka Sukuk
(2017)
 Islamic Bank of the Year, Pakistan

 Best Islamic Retail Bank, Pakistan
 Best Islamic Trade Finance Bank, Pakistan
 Best Islamic Investment Bank, Pakistan
 Sukuk House of the Year, Pakistan
 Best Supply Chain Finance Programmed
Asset Triple an Asia Infrastructure Awards (2017)
 Transport deal of the year, Pakistan, for SEPCO 12.658 billion rupee syndicated
term finance facility, in which Meezan Bank has acted as the lead adviser and
arranger.
Islamic Finance News

(2005, 2006, 2007, 2008, 2009, 2010, 2011, 2013, 2014, 2015, 2016, 2017)
 Best Deal of the Year(2008, 2009, 2011, 2012)
 Pakistan Deal of the year (2013, 2014, 2015, 2016, 2017)
 Ijarah Deal of the year(2013)

 Musharakah Deal of the Year (2014)
 Best Islamic Retail Bank - Global Award (2015)

 3rd - Best Overall Islamic Bank - Global Award (2015)
 Best Islamic Bank for Treasury Management (2016)

 Best Islamic Retail Bank - Global Award (2017)
57
WEBSITE:
www.meezanbank.com
Assistance:
+9221111331331
+9221111331332
Registered Office
3rd Floor, PNSC Building, M.T. Khan Road,
Karachi-74000, Pakistan phone : (9221) 35610582,
Fax: (9221) 35610375Call Centre 111-331-331
58
FINANCIAL ANALYSIS OF MEEZAN BANK FOR THREE YEARS
FINANCIAL ANALYSIS
The purpose of analysis of Financial Statement (FS) is to examine past and current financial data
so that a company’s performance and financial position can be evaluated and future risk and
potentials can be estimated. The analysis can yield valuable information about trends and
relationship, the quality of company earnings and its financial strengths and weaknesses.
Financial Statements among other things include balance sheet and income statement. Balance
sheet represents assets and liabilities of the business at a given data, besides showing the ability
of the business to service the loans on the strength of its financial structure. It also helps in
evolving secured basis for extending financial support. Apart from showing the profitability of a
business, income statements disclose how the business has been conducted and determine
factors behind a rise or decline in the net worth.
SUMMARISED BALANCE-SHEET
MEEZAN BANK
SUMMARISED BALANCE SHEET
FOR THE YEARS
2017 2016 2015 2014
Rupees in Millions
ASSETS
Cash and balances with treasury

banks 64556 56037 43686 29729
Balances with other banks

4896 12021 11175 5501
Lending to financial institutions

147229 129115 101079 90766
Investments
119238 130156 146305 114089
Islamic financing and related

assets 420029 311530 207569 175712
59
Operating fixed assets
11876 8925 8057 6273
Deferred tax assets – net

- - - 815
Other assets – net

13875 9983 13979 14625
Total Assets 781699 657767 531850 437510
LIABILITIES
Bills payable
11168 9131 6560 5620
Borrowings
36813 32006 13610 15465
Deposits and other accounts 673188 564024 471821 380422
Sub-ordinate loans 7000 7000 - -
Deferred tax liabilities – net 8 1362 393 -
Other liabilities 18445 13770 13119 12113
Total Liabilities 746622 627293 505503 413620
NET ASSETS 35077 30474 26347 23890
OWNER’S EQUITY
Share capital 10629 10027 10027 10027
Discount on issue of shares 13369 9700 8588 7289
Reserves 10340 8422 6942 5958
Share deposit money 739 2325 790 616
OWNERS EQUITY 35077 30474 26347 23890
60
PROFIT AND LOSS ACCOUNT
MEEZAN BANK
SUMMARISED PROFIT AND LOSS ACCOUNTS
FOR THE YEARS
2017 2016 2015 2014
Rupees in “000”
Mark-up/return/interest earned 36087 30761 32628 28452
Mark-up/return/interest expensed 15273 12873 14897 15440
Net mark-up / interest income 20814 17888 17731 13012
Reversal of provision against non-

performing
Loans and advances – net (733) 120 (442) (551)
Provision for diminution in the value of

investments – net
Bad debts written off directly (587) 65 (121) 84
Net mark-up / interest income after

19494 18073 17168 12545
provisions
NON MARK-UP/INTEREST INCOME
Fee, commission and brokerage

5576 4035 3626 3323
income
Dividend income and capital gain/

2001 1622 971 1432
Loss on investment
Income before expenses 27071 23730 21765 17300
61
Administrative and operating
16819 14787 13313 10402
expenses
Profit before taxation 10252 8943 8452 6898
Taxation – Current 3939 3381 3429 2328
PROFIT AFTER TAXATION 6313 5562 5023 4570
Cash Flow Statement

2017 2016
CASH FLOWS FROM OPERATING ACTIVITIES (Rupees in ‘000)
Profit before taxation 10,252,010 8,942,836
Less: Dividend income (1,176,517) (744,090)
9,075,493 8,198,746
Adjustments for non-cash charges and other items:
Depreciation 1,465,891 1,386,419

Amortization 170,156 166,397
Provision / (reversal of provision) against non-performing
Islamic financing and related assets – net 720,189 (120,246)
Provision / (reversal of provision) against diminution in value of invest 586,732 (64,673)
Charge for defined benefit plan 279,078 268,150
Gain on sale of operating fixed assets (72,928) (50,600)
3,149,118 1,585,447
12,224,611 9,784,193
(Increase) / decrease in operating assets
Due from financial institutions (18,114,056) (28,035,689)
Islamic financing and related assets (109,219,007) (103,841,201)
Other assets (3,880,360) 3,999,137
(131,213,423) (127,877,753)
Increase / (decrease) in operating liabilities
Bills payable 2,037,095 2,570,674

Due to financial institutions 4,807,794 18,395,950
Deposits and other accounts 109,163,954 92,202,894
Other liabilities 3,791,152 (64,532)
62
119,799,995 113,104,986
811,183 (4,988,574)
Contribution to defined benefit plan (123,356) (276,480)
Income tax paid (3,836,755) (2,475,684)
Net cash used in operating activities (3,148,928) (7,740,738)
CASH FLOWS FROM INVESTING ACTIVITIES
Net investments in
- available for sale securities 7,884,619 46,640,384

- held to maturity securities - (28,000,000)
- associated entities 7,359 (66,774)
Dividend received 1,164,417 741,415
Investments in operating fixed assets (4,653,329) (2,463,891)
Proceeds from sale of fixed assets 139,180 94,090
Net cash generated from investing activities 4,542,246 16,945,224
CASH FLOWS FROM FINANCING ACTIVITIES
Issuance of Right Shares 3,008,214 -

Issuance of Sub-ordinated Sukuk - 7,000,000
Dividend paid (3,007,746) (3,006,982)
Net cash generated from financing activities 468 3,993,018
Increase in cash and cash equivalents 1,393,786 13,197,504
Cash and cash equivalents at the beginning of the year 32 68,058,200 54,860,696
Cash and cash equivalents at the end of the year 32 69,451,986 68,058,200
63
RATIO ANALYSIS
A bank’s balance sheet and profit and loss account are valuable information sources for
identifying risk taking and assessing risk management effectiveness. This is done to
provide perspective and facilitate making comparisons. There are literally hundreds
useful financial ratios we can use to evaluate bank performance. However, in most
instances, directors only need a few basic ratios to identify fundamental performance
issues and help them formulate questions regarding any underlying problems and
asking management’s plans for correcting them. This section will discuss some selected
ratios from various perspectives. From this various perspective Ratio Analysis can be
dividing into five categories. These five categories are as follows:
 Breakup value:
Total Assets – (Total Liabilities + preference shares + reasonable liquidation fees)
 Market value per share:

Price to earnings ratio× earning per share
 Price to book value:

Price per share/ book value per share
 Price earnings ratio:

Market value per share
Earnings per share
 Earnings per share:

Net profit after tax
No. of shares outstanding
 Spread ratio:
Average of income to assets- average of expended to liabilities
 Financing/ advances to deposit ratio –ADR:

Loan
Deposits
64
 Investment to deposit ratio IDR:
Investment
Deposits
 Capital adequacy ratio:

Tier 1 capital + tier 2 capital
Risk weighted assets
 Return on average assets:

net income
Average total asset
 Return on average equity:

Net income
Average owners’ equity
Breakup value:
Year 2017 2016 2015
32.31 28.07 25.49
Market value per share
Year 2017 2016 2015
67. 10 67.24 45.75
Price to book value ratio
Year 2017 2016 2015
2.08 2.40 1.79
Price earning ratio
2017 2016 2015
10.95 12.34 9.13
65
Earning per share
2017 2016 2015
6.13 5.45 5.01
Net spread to gross
Return
2017 2016 2015
57.68 58.15 54.34
Net profit after tax to
Gross income
2017 2016 2015
14.46 15.27 13.49
Admin expense to
Income before provision
2017 2016 2015
59.24 62.80 59.62
Financing/advances to
Deposit ratio ADR
2017 2016 2015
62.4 55.2 44.0
Investment to deposit
ratio IDR
2017 2016 2015
17.71 23.08 21.01
Capital adequacy ratio
2017 2016 2015
12.89 12.91 10.98
Return to average assets
2017 2016 2015
66
0.88 0.94 1.04
Return on average equity
2017 2016 2015
20.20 20.71 20.57
SWOT ANALYSIS
Meezan Bank being a quality organization strives to provide quality to all its
stakeholders, customers, employees and environment. In Pakistan, it is operating in a
very volatile economic and political environment. I have summarized its major strengths,
weaknesses, opportunities and threats in the following paragraphs.
STRENGTHS
 MBL has this privilege to be the first in the Islamic Banking sector which gives
MBL a competitive edge over all other banks and being the pioneer of this
industry MBL is enjoying major share of it.
 The largest Islamic Bank in Pakistan with a network of over 201 branches in
54cities.
 The members of the Shariah Supervisory Board of Meezan Bank are

Internationally-renowned scholars, serving on the boards of many Islamic banks
operating in different countries.
 Karachi, August 20, 2008: Meezan Bank, the largest Islamic Bank in Pakistan
has been conferred the Best Islamic Bank Award by Rawalpindi Chamber of
Commerce and Industry.
 Being an Islamic bank, MBL has a wide national network. As an emerging

markets bank, it has branches in all the major cities of Pakistan with the facility of
online banking, it is very easy for its customers to transact all over the country.
67
 Online banking service means that a customer can withdraw and deposit his
money at any branch in the country. Where this service is not present, cheque
has to be presented only in that branch on which they are drawn. But with this
facility, a person has access to its funds at any branch of the bank. That would
mean that any person who has an account with the bank, has an account in 24
branches of bank. It provides a lot of comfort and convenience to the customers.
 There are many value added features in the products offered by the bank. ATM
cards are provided with every account. Other features are present in the various
products. The priority customers enjoy a much-pampered status at the bank.
 The employees at the bank provide impeccable customer service to their

customers. For them “the customer is the king’. Customers are treated with great
respect and honored to the utmost degree.
 The working environment of the bank is very friendly and cooperative. There is
no business in the higher management. The upper management consults its staff
in making decisions and provides them independence in their job areas. For the
objective is performance and not conformance with the boss.
WEAKNESSES
 Till the last year, MBL had a totally different perspective. The management was
of the view that the customer should come to them and they don’t need to go to
the customer. But in this era of mass marketing and advertising, it is not possible
to stay in competition without these took. The bank has now changed its
perception arid has started an effective marketing and advertising strategy. But
the previous gaps are still there and there is lack of awareness in the people
about the bank and its products. The bank needs to improve on its marketing and
advertising areas.
 It was observed in the bank that the degree of satisfaction of the employees was
quite low. First of all, the pays are lower those offered in other banks. Secondly,
the employees are given targets that are too difficult to achieve. For example, the
targets given to the personnel in sales and services department are higher than
any other bank in the country, be it a local bank or a foreign bank. This makes
the job too stressful and tensed It is good to keep the people under a continuous
68
move, but to overstress them can be harmful to them and as well as to the
organization.
 Due to the dissatisfaction of staff, there is high turnover among them. People
who find other alternatives do not stay with the bank. Therefore, the bank incurs
loss on their training and development. The bank should provide incentives to its
employees so that they show more loyalty. For example, there is no commission
provided to the sales personnel which otherwise is a general rule all over the
world.
 There are no sorts of training programs for the employees. The employees who
are newly appointed are straight away placed at their positions with no prior
orientation. This creates problem for new personnel because they find difficult to
understand the environment and culture of the organization.
 The decision-making is carried out the upper management level and the
subordinates are not included in this process. This creates a sense of insecurity
in the lower managers and that is why there is a lack of loyalty among the
personnel.
 Although the upper management is very friendly with the lower managers but that
is only to the extent of cordial relationships.
OPPORTUNITIES
 House financing sector can be targeted to maximize the profit.
 Growing demand of Islamic financial product and services.
 Venturing into Islamic groups outside the countries as opportunity to expand

business in UAE and Golf states. I-e financial institutions.
 Coming up with. Products for the SME to targeting the medium level customers.
 Doing business with companies having Islamic mindset. I-e Islamic financial
Institutions.
 Increase branch network within the country.
69
THREATS
 Right now there are a few banks that are providing Islamic banking services in
addition to the Meezan Bank. These banks include Bank Islamic, Al-Barkah Bank
and some branches of Bank Alfalah which are dedicated for Islamic banking
services. That’s why we can say that although there is no intense threat for the
Meezan Bank in the near future but it is not difficult to say that more banks
mayenter in this field as the awareness of Islamic banking is increasing among
the public. Therefore the Meezan Bank should not be contented to its present
market share but should strive for providing better and better and modern
services.
 Due to the increase in the number of conventional commercial banks, there is an

increase in competition. Also there is a lot of aggressive marketing by the
competitor banks. This is also a threat for MBL. Reviewing this SWOT analysis
from time to time would help evaluate the bank's position. It would help the
management in comparing their strengths of the past with those of the present
and to what extent the management has been able to overcome the
weaknesses.
CONCLUSION
I spent 6 weeks of my internship in Meezan bank SamnaAbad Lahore. During these 6 weeks, I
felt myself to be a part of Meezan bank even though this is my first experience of working in a
banking company, but I learned a lot from this experience. Based on my experience and
observations regarding the operations and policies of the bank, I have tried to stipulate some
recommendations for further improvement.
 At present there is no such organization in the world that is free from problems and
challenges. Every concern has to strive and struggle a lot to be more profitable
and to get more competitive edge.
 According to my Experience at the Meezan as well as analysis of financial and
non-financial aspects Meezan bank is a well-managed organization. I have learnt
a lot during my internship program and I have seen that they are continuously
planning to enhance their goodwill and profitability.
During this year, Bank is making technological advancements. They are changing
their software and other programs as well. Computers are being updated and
upgraded.
70
 Bank is continuously striving to increase its revenue and profitability. Different
strategies are implemented for this purpose. Bank is expanding its branch network
in different cities and different areas.
 It is the finest Islamic bank in Pakistan
They are making new strategies in order to compete well in the growing market and
repositioning their organization to keep their customers satisfied. They are trying their
level best to see Meezan bank at the top.
71

Internship Report On Meezan Bank

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INTERNSHIP REPORT ON MEEZAN BANK

HAILEY COLLEGE OF COMMERCE

Every student of masters in commerce at UNIVERSITY OF THE PUNJAB has an

It was a nice opportunity to have a close comparison of theoretical concept in practical

The output of my analysis is summarized in a shape of Internship the contents of the

I wish to acknowledge my gratitude to my inspiring Teachers for their endless persistence,

I am thankful to my parents, family and friends that continually offered encouraging

Sr. No. Contents Pg. No.

Sr. No. Charts Pg. No.

This report is prepared for the purpose of applying my theoretical studies in to

The banking structure in Pakistan comprises of the following types.

1) State Bank of Pakistan.

2) Commercial Bank of Pakistan.

5) Specialized credit institutions.

1) National Bank of Pakistan

2) Muslim commercial bank limited

3) Habib Bank Limited

4) United Bank Limited

5) Allied Bank of Pakistan

HISTORY OF MEEZAN BANK

Introduction to Meezan Bank Limited:

1997 Al-Meezan Investment Bank is established with a mandate to pursue Islamic

To achieve this objective, the bank aims to:

PHILOSPHY OF Meezan Bank:

To be a premier Islamic bank, offering a one-stop shop for innovative value-added

Shariah Board of Audit

Resident shariah board member Shariah audit and advisory

Product development and shariah internal audit and business risk

President and CEO

Finance Legal affairs

Human resources, learning Risk management

Branch network Business segment Support

Bahawalpur retail banking, commercial. Operations

Mr. Riyadh S.A.A Edrees (CHAIRMAN)

Mr. Faisal A.A.A Al Nassar

Mr. Badar H.A.M.A Al Rabiah

Mr. Mansoor khan

Mr. Alaa A. Al-Sarawi

Mr. Saad Fazil Abbasi

Mr. Muammad Zaruug Rajab

Mr. Muhammad Abdul Aleem

Mr. Noorur Rehman Abid

Mr. Talal S.A al Shehab

Mr. Irfan Siddiqui (President and CEO)

Mr. Arif ul Islam (Executive Director and Deputy CEO)

SHARIAH SUPERVISORY BOARD

 Justice (Retd.) Muhammad Taqi Usmani (pakistsn) chairman

Pakistan Kuwait Investment Co. Pvt ltd.

The Islamic Development Bank

Al Meezan Investment Management Ltd.

Matthews’s International Capital Management LLC.

Noor Al-Rehman Abid

Shariah audit and advisory

 Muhammad farhan ul haq usmani

Internal audit and business risk review

 Muhammad sohail khan

President and CEO

MEEZAN BANK DEPARTMENT

1. HUMAN RESOURCE MANAGEMENT TEAM

Head of Human Resources, Learning & Development

CFO & Group Head Finance

LEGAL AFFAIRS DEPARTMENT

RISK MANAGEMENT DEPARTMENT