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ACKNOWLEDGEMENT

First of all we would like to thanks Almighty Allah, who has given us the strengths and endowed us with the will and thoughts to complete this project with the praise of his beloved Holy Prophet (P.B.U.H) complete this project. We would also like to express our gratitude to our teacher SIR.AIJAZ HASHMI who has given us the opportunity to do this project and explore our abilities. We have heartfelt appreciation for our Teacher, Parents for their support and courage. In the end we would like to say thanks to all of those who helped us in any way during our project and made it easier for us to reach our aim.

DEDICATION

We bow in gratitude to Almighty Allah for giving us, this courage and wisdom to fulfill this humble task. To our respected supervisor Sir Aijaz Hashmi to whom without guidance we will not able to complete our project. To our parents and friends who always care for us and gave us full moral and deep hearted support.

Table of Contents

Executive Summary ........................................................................................6 Our Vision.........................................................................................................6 Our Mission.......................................................................................................6 History of Islamic banking in Pakistan..............................................................6 The Holy Quran................................................................................................ 6 What is Riba?....................................................................................................6 History of Mezan Bank......................................................................................7 Organizational Structure..................................................................................9 Employees of Mezan Bank:.............................................................................10 BOARD OF DIRECTORS...................................................................................10 Branches........................................................................................................ 11 Introduction of Products.................................................................................12 Electronic Banking .........................................................................................16 Meezan Bank's Remittance:...........................................................................18 Visa Debit Card:.............................................................................................18 Meezan VISA Debit - Your prefect travel companion......................................19 Internet Banking:...........................................................................................19 ATM:...............................................................................................................20 Call Center:.................................................................................................... 21 Islamic Mode of Financing..............................................................................21 Musharakah:...................................................................................................22 Mudarabah:....................................................................................................22 Ijarah:............................................................................................................. 23 Types of Account maintained by Meeezan Bank............................................23 Method of Profit sharing & Distribution..........................................................26

OPERATIONS DEPARTMENT............................................................................30 1-CUSTOMER SERVICES DEPARTMENT...........................................................31 2-BILLS & REMITTANCE DEPARTMENT............................................................34 3-CASH/DEPOSITS DEPARTMENT....................................................................35 4-ACCOUNTS DEPARTMENT............................................................................35 5-FOREIGN TRADE DEPARTMENT...................................................................36 6-CREDIT/ADVANCES DEPARTMENT...............................................................36 Annexure:.......................................................................................................50

Executive Summary Our 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.

Our 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.

History of Islamic banking in Pakistan


Al-Meezan Investment Management Limited (AMIM) was established in 1995 as a joint venture between Pakistan Kuwait Investment Company (PKIC), National Investment (Trust) Limited, and Jardine Fleming Investment Management International Limited (Jardine Fleming). AMIM has over the years benefited immensely from domestic investment management expertise of PKIC and National Investment (Trust) Limited and international expertise of Jardine Fleming. Jardine Fleming made a substantial contribution towards the development of systems and procedures for AMIM during its six years of association with the company. The key investment professionals of Jardine Fleming, Hong Kong who served as Directors of AMIM for these six years, contributed to the development of strategic plans and investment policies of the company.

The Holy Quran


"We must work our destiny in our own way and present to the works an economic system based on true Islamic concept of equality of manhood and social justice "Quaid's concept of Islamic Banking [Opening Ceremony of The State Bank of Pakistan on July 1, 1948

What is Riba?
The Holy Quran did not give any definition for the term for the simple reason that it was well known to its immediate audience. But many scholars defined Riba in the following words. Riba is Arabic word. It means increase, addition, expansion or growth.

Imam Abubakr Al-Jassas (D.380 AH) in his famous work Ahkamul Quran has explained riba in the following words: And the riba which was known to and practiced by the Arabs was that they used to advance loan in the form of Dirham (silver coin) or Dinar (gold coin) for a certain term with an agreed increase on the amount of the principal advanced.

History of Mezan Bank


Meezan Bank Limited, a publicly listed company, was incorporated on January 27, 1997 and started operations as an investment bank in August that year. In January, 2002 in an historic initiative, Meezan Bank was granted the countrys first full-fledged commercial banking license as a dedicated Islamic Bank, by the State Bank of Pakistan. The Banks main shareholders are financial institutions, including the Pak Kuwait Investment Company, the Islamic Development Bank of Jeddah, and the Shamil Bank of Bahrain.

During 1997, Al-Meezan Investment Bank is established as the first Islamic bank of Pakistan. Mr. Irfan Siddiqui appointed as first and founding Chief Executive Officer. During 2002, the Shariah Supervisory Board is established at AlMeezan Investment Bank led by Justice (Retd.) Muhammad Taqi Usmani as chairman. State Bank sets criteria for establishment of Islamic commercial banks in private sector and subsidiaries and standalone branches by existing commercial banks to conduct Islamic banking in the country. During 2003, A Musharaka-based Export Refinance Scheme has been designed by the State Bank in coordination with Meezan Bank Limited, in order to provide export finance to eligible exporters on the basis of Islamic modes of financing. Efforts are underway to develop Islamic money market instruments like Ijarah Sukuk to facilitate the banks in respect of liquidity and SLR management. In March 2005, a dedicated Product Development & Shariah Compliance (PDSC) department was formally setup. The role of this research department is centralization of Product development activities, new product research, Islamic banking training and Shariah Compliance functions. The department works under the guidance & supervision of banks Shariah Advisor Dr. Muhammad Imran Usmani and the Shariah Supervisory Board of the Bank. PDSC now plays a central role at the bank by actively supporting new product development activities, refining existing products menu, preparing product policies & standardize agreements, imparting Islamic banking
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knowledge at various levels to new & existing staff members, corporate customers and general public, coordinating with banks Shariah Board, and conducting regular Shariah audits & reviews. During 2005, Meezan Bank launches the Meezan Islamic Institution Deposit Account (MIIDA), a product tailored for Islamic Financial Institutions (IFIs). The facility is the first of its kind in Pakistan, whereby Islamic Banks now have the opportunity to manage excess liquidity by maintaining a checking account with Meezan Bank specifically designed for this purpose. Meezan Bank becomes the first customer of Islamic InsuranceTakaful by signing the first Memorandum of Understanding MoU with Pak Kuwait Takaful Company Limited (PKTCL).

Organizational Structure

Employees of Mezan Bank:


Meezan Bank continued to attract and recruit staff through 2008 for its aggressive branch expansion plan as well as for its Head Office departments. Meezan Bank believes that its 3000+ employees are its greatest asset and a major reason for its growth and success.

Years Employees

2005 786

2006 1389

2007 2205

2008 3170

BOARD OF DIRECTORS
H. E. Sheikh Ebrahim Bin Khalifa Al-Khalifa (Chairman) (Undersecretary, Ministry of Finance & National Economy, State of Bahrain) Naser Abdul Mohsen Al-Marri (Vice Chairman) Yousif Saleh Khalaf Zaigham Mahmood Rizvi Mohammad Hussain Tarik Kivanc

Mazen Khalid Al-Braikan Irfan Siddiqui (President & Chief Executive Officer) Ariful Islam (Chief Operating Officer)

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Rana Ahmad Humayun

Branches
Meezan Bank opens up its 100th branch. Two new dedicated Islamic Banks start operations in Pakistan, namely Emirates Global Islamic Bank and Dawood Islamic Bank. 2008 With 166 Branches (including 35 sub-branches) in 40 cities across Pakistan, Meezan Bank is clearly positioned as the leading Islamic Bank in the country. Work starts on the construction of Meezan Banks new Head Office building. The financing and investment portfolio of local Islamic banks reached Rs. 185 billion in December 2008 compared to Rs. 137.6 billion in December 2007. Market share in the overall banking increased to five per cent at end December 2008 compared with four per cent at end December 2007. Total assets of Islamic banking reached Rs. 271.1 billion in December 2008 compared to Rs. 205.2 billion in December 2007. 2009 Branch network of six dedicated Islamic banks increases to 480 Branches (Including SubBranches) with Meezan Bank having a 42% share of the Islamic Banking branch network in the country with 201 branches in 54 cities across the country. Islamic Banking's share grows to over 5.5% of the total Banking industry Meezan Bank has 201 branches in 54 cities across Pakistan:

Southern Region: Hub, Hyderabad, Karachi, Nawabshah, Quetta, Sakrand, Sukkur, Tando Adam, Tando Allah Yar. Central Region: Bahawalpur, Daska, Dera Ghazi Khan, Faisalabad, Gojra, Gujranwala, Jhang, Kasur, Lahore, Mandi Bahauddin, Mian Channu, Multan, Okara, Rahim Yar Khan, Sadiqabad, Sahiwal, Sargodha, Sheikhupura, Sialkot Northern Region: Abbottabad, Attock, Dera Ismail Khan, Gujjar Khan, Haripur, Islamabad, Kohat, Mansehra, Mardan, Muzzafarabad, Peshawar, Rawalpindi, Swat.

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Introduction of Products
Types of products offered Riba Free Meezan Providence Riba Free - Certificates of Islamic Investment Riba Free - Monthly Musharakah Certificate Riba Free - Dollar Saving Account Riba Free - Rupee Saving Account Riba Free - Current Account Car Ijarah - Islamic Car Financing Riba Free Meezan Providence:

It is a long term investment product especially designed for the need and to fulfil the requirements of the corporate and business concerns for purpose of investing their provident, pension and Gratuity Funds as any sensible and wise person who wants to invest his earning, his main concerns would be total security along with the best returns possible, especially as these earnings or funds are a trust from his employees and one that bears an important responsibility. Meezan Providence rests on the well known and solid financial strength of Meezan Bank, which has a strong and credible balance sheet with excellent operating profitability, including a capital adequacy ratio that has placed the Bank at the top of the industry. Furthermore, its sterling track record shows consistently beneficial and highly competitive returns for their broad range of investors. Finally, comes the benefit of truly Halal returns, a benefit you may not have had the opportunity to enjoy before and one that you can now pass on to your employees, many of whom would be grateful for such an opportunity. Key Features of Meezan Providence A 100% hilal investment in strict compliance with Shariah High returns Long Term security ensured Minimum investment amount: PKR 1,000,000 Available tenures of 3, 5 and 7 years.
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Pre-mature withdrawal options available Riba Free-Certificates of Islamic Investment:

This investment product is designed to meet the short term and long term needs. The minimum investment is PKR 50,000 and it is available in tenures of 3 and 6 months, 1, 2, 3 and 5 years. Furthermore, these certificates can be encashed at any time without any charge or penalty, only the profit rates will be adjusted according to the tenure completed. You can earn profit on your investment on the following basis: Monthly profit on 1, 2, 3 and 5 years Quarterly profit on 1, 2, 3 and 5 years At maturity profit payment for all tenures In the Riba Free COII, you enter into the Musharakah agreement that is strictly in conformity with the principles of Islamic Shariah. The deposits of the customers together with the Banks contribution are invested in a pool that consists of Ijarah and Murabaha financing. The profit/loss on this pool is calculated every month on the basis of profit sharing ratio determined by assigning weightings. Such weightings are assigned at the beginning of every month and are displayed on the bank notice board and website. This facility is available during the course of investment. However, profit shall be paid only after completion of one month of investment Riba Free-Monthly Musharakah Certificate:

The riba free Monthly Musharakah Certificates are a flexible investment product which has been designed to give the depositor a monthly return which is Halal. The depositors participate with the bank in the pool of investments

which is comprised of Murabaha and Ijarah transactions. The minimum investment required is required is only PKR 100,000 and you receive profit for each complete month of investment with the bank. The profit rate, so calculated, is applied to all investments which mature between the periods starting from the 6thday of each month to the 5thday of the next month. During your relationship with us, you would be entitled to receiving the following additional benefits. Personalized cheque books. No restriction on withdrawals. Call centre facilities.

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Monthly profit payment to your current or saving account with us. Free bank balance certificates Personal financial consultancy services Access to priority desk Riba Free-Dollar Saving Account

With a minimum of only $100 you can open a Dollar Saving Account with us under a Mudarabah arrangement that is strictly in conformity with the principles of Islamic Shariah. The return earned on the Mudarabah pool is calculated every month and the profit ratio for all investors is declared at the beginning of the month. If you maintain a minimum average monthly balance of $ 500, you shall be eligible to receive profits that shall be disbursed to you every month. Apart from first class service and personalized attention that our customers get when they bank with us, we offer the following additional conveniences to our customers. Personalized cheque books No restriction on withdrawals or number of transactions. Call centre facilities Monthly profit payment Free bank balance certificates Taking stop payment instructions. Taking hold mail instructions. Issuance of duplicate statement of account. Personal financial consultancy services. Access to priority desk. Riba Free-Rupee Saving Account

With a minimum of only PKR 10,000 THE Rupee Saving Account can be opened under musharakah agreement. The profit earned is calculated every month. And if the client maintains a monthly balance of PKR 10,000 the client is eligible for the profits that will be disbursed every month. However, the clients of COII may open this account with any minimum balance. Profit calculation is based on weight ages in the following tiers: PKR 10,000 up to PKR 9,999,999 PKR 10,000,000 up to PKR 49,999,999 PKR 50,000,000 up to PKR 99,999,999
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PKR 100,000,000 and above Riba Free - Current Account

In this type of account the client is allowed to deposit or withdraw money as he likes. He may, thus, deposit or withdraw several times in a day as he likes. Usually the bank allows this and charges service charges are deducted by the bank from current deposit account. It gives advantage for paying debts by the convenient and safe means of sending cheques through the post thus avoiding the

trouble and loss. This bank account that is ideal for businesses and individuals looking for Shariah compliant banking and ease of access. With a minimum amount of only Rs.10,000 this product offers you a range of benefits including personalized checking facility, no restrictions on the number of transactions, free Call Centre facilities, free balance certificates, priority banking and much more.

Car Ijarah Islamic Car Financing

Car Ijarah is Pakistan's first "Interest Free" car-financing based on Islamic financing mode of Ijarah or Islamic leasing. This product is ideal for interest averse individuals, looking for a car financing that provides the convenience of a well designed product while avoiding an interest based transaction. Car Ijarah totally halal auto finance facility that is very affordable, with quick processing and minimal documentation. Car financing that is very competitively priced, hasslefree, and totally Halal. As Ijarah is basically is the transfer of usufruct of a fixed asset to another person for an agreed period, at an agreed consideration. Under car Ijarah agreement the car will be given to the customer for the period agreed on the time of contract. In car Ijarah the asset remains in the ownership and risk of bank and the customers only pay the rentals for use of the asset: just like house rent. The product has grown all over the country with a portfolio of Rs 291 million as of 31st December with non-performing contracts.
Key Features of Car Ijarah No application fee Ease of acquiring any new locally assembled car

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No upfront Insurance Payment No advance Rental Available in tenures of 3, 4 and 5 years Minimum security deposit as low as 20%

Services

Online Banking 8 to 8 banking Ladies Banking Home Remittance

Electronic Banking
Visa Debit card Internet Banking SMS Alerts ATM Call Center

Online Banking: Always Stay Connected with Our Online banking our free On-line Banking facility allows all customers to access their account and conduct banking transactions from any of Meezan bank's branches nationwide. Our on-line facility makes it easy to deposit and withdraw cash, make pay-order requests and access numerous banking services from any Meezan Bank branch even if the account is based in a different city. Our free On-line Banking offers the following services:

Real-time cash deposit, instantly crediting your account! Real-time cash withdrawal upto Rs. 5 million, giving you access to your money from anywhere in the Country! Transfer of funds between your Meezan Bank accounts Deposit and collection of clearing Cheques drawn within the same city Issuance of Pay-order from any Meezan Bank branch

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8 to 8 Banking:
Specialized Banking services from 8AM to 8PM Meezan Bank is proud to be the first bank in Pakistan to introduce the concept of Eightto-Eight banking, giving our customers access to the branch from 8 'o clock in the morning to 8 'o clock at night. This adds a completely new dimension to our banking service and has been designed to enable our customers to avail banking services at their convenience. Customers may visit their respective branch early in the morning before going to work or can drop by in the evening on their way home without having to worry about losing valuable office hours. From 8am till 5pm we offer the full range of our banking services while from 5pm till 8pm our customers are able to avail several commonly-used banking facilities at the branch (value next day) which meet most of their daily banking requirements. Our 8 to 8 banking service is a part of Meezan Banks mission to focus on customer convenience & service quality and is thereby an important step towards making Islamic Banking the banking of First Choice. Services provided from 5PM to 8PM at 8 to 8 Branches

Acceptance of cash Acceptance of cheques for collection and clearing Acceptance of transfer instructions Acceptance of Cheque Book, Pay Order and Demand Draft requests Accepting ATM, telephone banking and Internet banking requests

8AM to 8PM banking services are presently being offered at selected branches Karachi

Bahadurabad Branch Clifton Branch Gulshan Chowrangi Branch Gulshan-e-Iqbal Branch

Islamabad

F-7 Jinnah Super Branch F-10 Markaz Branch

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Meezan Bank's Remittance:


Meezan Bank's Remittance services are simple and reliable. They are available at your doorstep through a wide and efficient network of corresponding banks worldwide. Only the leading global financial institutions form this network of correspondent banks.

Advantages of Meezan Home Remittance:


Quick Remittance in major currencies i.e USD, GBP, EUR, JPY, CHF, SGD, AUD Instant online transfer within our branch network without any charges Extensive branch network in all major cities of Pakistan Meezan Visa Debit Card allows you to use your own money at more than 30 million outlets and 160 countries worldwide Free Internet banking facility Easy Guidelines for Money Transfer

If you wish to remit money to Pakistan, simply give instructions to your existing bank for money transfer by providing the name of your preferred Meezan Bank branch and beneficiary account number.

Visa Debit Card:


Want access to your money anytime, anywhere? With a Meezan Visa Debit Card, you have access to the money in your account wherever you are, whenever you want, wherever you see the Visa symbol. The money is deducted from your balance straight away there is no interest to pay, no bills & no late fees! Using your card is quicker than making a trip to the bank! Using your card is quicker and far more convenient than queuing at a cash dispenser and safer than carrying cash.

Use your own money at more than 30 million outlets and 160 countries worldwide. Use it to buy both big and small items, wherever you see the Visa symbol. Each withdrawal taken directly from your Meezan Bank Linked Account. A safe and convenient alternative to carrying cash.

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You can call support 24 hours a day, 7 days a week with any queries. Simply call 111-331-331 All shopping transactions on your card are signature based. Simply swipe and sign!

Meezan VISA Debit - Your prefect travel companion


Next time youre planning to go abroad, you can use your Meezan Visa debit card for all your purchases and to withdraw cash at ATMs, just as you do at home wherever you see the Visa symbol.

Convenient - No need to buy foreign currency or travellers cheques in advance. Safe - No need to take large amounts of cash with you. Accepted all over the world - Pay for hotels, sightseeing, shopping and dining out.

Meezan Internet Banking is the smarter way to bank, providing you global access to your account 24 hours a day, 7 days a week.

Internet Banking:
Facilities With Meezan Internet Banking, you can get secure and convenient access to the following facilities:

Balance inquiry of multiple accounts View account statement Real time cheque status and stop payment request Cheque book and pay-order request Lodging and tracking status of complaints Account activity alerts

Sms Alert:
Stay up to date with text message From Meezan Bnak Meezan SMS Alerts service makes your life easier and more convenient than ever before. Now you do not need to call or visit the branch to inquire about your daily
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transactions.Once you sign up for the Meezan SMS Alert service, you will receive an instant SMS alert from Meezan Bank on your mobile phone whenever any of the following transactions occur on your Current or Savings account(s).

Key Feature
Alerts Types

Debit Alert: An instant SMS alert to inform you when any amount is deducted from your Current or Savings account(s). Credit Alert: An instant SMS alert to inform you when any amount is added into your Current or Savings account(s). Cheque Bounce: An instant SMS alert to inform you that your cheque has been dishonoured.

Important SMS Alert service is applicable to all Current and Saving accounts (either or survivor in case of joint accounts) The service is currently for customers residing in Pakistan. SMS Alert Service is not available on Mobile Network Portable (MNP) numbers

ATM:
Meezan Bank offers a wide network of ATMs located at its branches as well as prominent offsite locations. You do not need to carry cash anymore; simply go to the ATM and withdraw cash anywhere, anytime. We also offer access to more than 2,000 ATM locations country-wide via 1Link and MNET Network. Key Feature:

Transfer funds between your own accounts in the same branch via ATM. The cash withdrawal limit for Meezan Visa Debit Card per day is subject to the funds present in your selected account. You can withdraw cash from any other banks ATM which is the member of either MNET or 1Link network Notes Funds can only be transferred between accounts (of different nature) within the same branch. Applies to same branch accounts which have been linked to the ATM card being used. If using any non-Meezan ATM, the cash withdrawal limit of that machine will be applicable on you. For example if the machine's daily cash limit is PKR 10,000, then that machine will only provide the customer PKR 10,000 during that day. Charges of PKR 15 per transaction will be applied when 1Link or MNET ATMs are used for cash withdrawal.

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Call Center:
With our Call Centre facility, you no longer have to take time out to visit your branch for your everyday banking needs. By simply dialing 111-331-331 (dial 00-92-21-111-331331 from outside Pakistan) you get access to a wide range of Tele-banking solutions and personalized banking services including answers to questions on Islamic Banking. You can also access our self-service banking, where you will be guided and assisted in all transactions by our Interactive Voice Response System (IVR).
Services Provided on IVR

Check your account balances Instruct issuance of pay orders and demand drafts Transfer funds between your own accounts Order issuance of chequebook Check transaction history of your accounts Receive information on various MBL products and services Issue stop payment instructions Report loss of your chequebook Register your comments and suggestions regarding MBL products and services Request or change T-PIN ATM PIN Reissuance Report loss of Visa Debit Card or cheque(s) Request for new Internet Banking Username / Password.

ATM Helpline You may instantly contact our Call Center officers for any inquiry by just picking up the phone located beside the ATM.

Islamic Mode of Financing


These modes of financing have been written by Maulana Taqi Usmani who is the former Chairman of Shariah board of Meezan Bank. After studying these we will be in a position to understand the 90% working of the bank. The important modes of financing are:

1. 2. 3.

Musharakah Mudarabah Ijarah

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Musharakah:
The Concept of Musharakah Musharakah is a term frequently referred to in the context of Islamic modes of financing. The connotation of this term is a little limited than the term "Shirkah" more commonly used in the Islamic jurisprudence. For the purpose of clarity in the basic concepts, it will be pertinent at the outset to explain the meaning of each term, as distinguished from the other. "Shirkah" means "Sharing": Some objections on Musharakah Financing 1) Risk of Loss 2) Dishonesty 3) Secrecy of the Business 4) Clients' Unwillingness to Share Profits

Mudarabah:
Most of the Islamic banks and financial institutions are using "Murabaha" as an Islamic mode of financing, and most of their financing operations are based on "Murabaha". That is why this term has been taken in the economic circles today as a method of banking operations, while the original concept of "Murabaha" is different from this assumption. "Murabaha" is, in fact, a term of Islamic Fiqh and it refers to a particular kind of sale having nothing to do with financing in its original sense. If a seller agrees with his purchaser to provide him a specific commodity on a certain profit added to his cost, it is called a "Murabaha" transaction. The basic ingredient of "Murabaha" is that the seller discloses the actual cost he has incurred in acquiring the commodity, and then adds some profit thereon. This profit may be in lump sum or may be based on a percentage.

Uses of Murabaha:
Murabaha can be used in following conditions: Short / Medium / Long Term Finance for: Raw material Inventory
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Equipment Asset financing Import financing Export financing (Pre-shipment) Consumer goods financing House financing

Ijarah:
"Ijarah" is a term of Islamic fiqh. Lexically, it means 'to give something on rent or on lease'. In the Islamic jurisprudence, the term 'Ijarah' is used for two different situations. In the first place, it means 'to employ the services of a person on wages given to him as a consideration for his hired services." The employer is called 'mustajir' while the employee is called 'ajir'

Types of Account maintained by Meeezan Bank


1. Karobari Munafa 2. Meezan Business plus: 3. Rupee Current Account: 4. 5. 6. 7. Dollar Saving Account Islamic Institution Deposit Account Euro Saving Account Pound Saving Account

1-Karobari Munafa:
Karobari Munafa is a high profit savings account specifically tailored for large Corporate or GoP-controlled entities. It allows customers to earn higher returns on surplus cash balances, has no preset transaction limits and comes with a variety of free packaged benefits. The Karobari Munafa Account works on the principle of Mudarabah under which the customer is an Investor (Rab-ul-Maal), and the Bank is the Manager (Mudarib) of the funds deposited by the customer. The Bank allocates the funds received from the customers to a Deposit pool. Funds in the pool are invested under Islamic modes of finance that include but are not restricted to Murabaha, Sukuk and Ijarah. Method of Profit sharing & Distribution The Bank calculates the profit of the deposit pool every month. Gross income of the deposit pool is shared between the Bank (Mudarib) and customers (Rab-ul-Maal) on the basis of the predetermined profit sharing ratio announced at the beginning of the month.

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The profit is distributed amongst the Account holders on the basis of predetermined weightages, announced at the beginning of the month. In case of a loss, as per the rules of Mudarabah, the Rab-ul-Maal shall bear the loss in ratio of their investment.

Key feature:

Minimum investment required to open an account is Rs. 10,00,000/Profit will be calculated on daily product basis Profit will be paid on monthly basis No restriction on withdrawals or number of transactions Free Cheque books & Pay-orders Dedicated Relationship Manager

Other facilities to facilitate your banking


VISA Debit Card facility SMS Alert services on all transactions in your account Free Online Banking services at all Meezan Bank branches Free Internet Banking facility Personal Banking consultancy 24/7 Call Centerwith complete phone banking services Specialized 8 to 8 Banking at selected branches

2-Meezan Business plus:


Meezan Business Plus is a Mudaraba-based account that allows you to conduct your banking transactions while availing a wide range of free services and therefore provides you the ideal blend of convenience & flexibility that you deserve in Islamic banking. Meezan Business Plus Account can be opened by Individuals and businesses including Sole Proprietorships, Partnerships and Limited Companies. On agreeing to become a Meezan Business Plus 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 funds deposited by the customers. The Bank allocates the funds received from the customers to a deposit pool. These funds from the pool are utilized to provide financing to customers under Islamic modes that include, but are not restricted to Murabaha, Ijarah, Istisna and Diminishing Musharkah.

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Method of Profit sharing & Distribution The Bank calculates the profit of the deposit pool every month. Gross income of the deposit pool is shared between the Bank (Mudarib) and customers (Rab-ul-Maal) on the basis of the predetermined profit sharing ratio announced at the beginning of the month. The profit is distributed amongst the Account holders on the basis of predetermined weightages, announced at the beginning of the month. In case of a lass, as per the rules of Mudarabah, the Rab-ul-Maal shall bear teh loss in ratio of their investment.

Key Feature:

Minimum investment required to open an account is Rs. 100,000/There is no restriction on withdrawals or numbers of transactions There is no deduction of service charges if the balance maintained is low You will have instant access to your account both through Internet Banking and through Online Banking at all branches of Meezan Bank across Pakistan The following facilities will be provided free of charge* if an average monthly balance of Rs. 100,000/-is maintained in the account Free Cheque books Free Pay Orders Free VISA Debit Card Free Account Statements Free Online Banking Free Internet Banking Free Hold Mail Facility Free SMS Alert services Free intercity clearing

3-Rupee Current Account:


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 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 deposited with a bank with the additional assurance that the Bank is not investing your money in activities that contravene Shariah principles.

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Meezan Current Account can be opened by Individuals, Proprietorships, Partnerships and Limited Companies. Key Feature:

Sole-

Minimum investment required to open an account is Rs. 1000/No restriction on withdrawals or number of transactions No deduction on low balance maintained

Other facilities to facilitate your banking


VISA Debit Card facility SMS Alert services on all transactions in your account Free Online Banking services at all Meezan Bank branches Free Internet Banking facility Personal Banking consultancy 24/7 Call Center with complete phone banking services Specialized 8 to 8 Banking at selected branches

4-Dollar 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. The Meezan Dollar Saving Account can be opened by individuals and businesses including Sole Proprietorships, Partnerships and Limited Companies. Dollar Savings Account works on the principle of Mudarabah under which the customer is an Investor (Rab-ul-Maal), and the Bank is the Manager (Mudarib) of the funds deposited by the customer. The Bank allocates the funds received from the customers to a Deposit pool; funds in the pool are invested under Islamic modes of finance that include but are not restricted to Murabaha, Sukuk and Ijarah.

Method of Profit sharing & Distribution


The Bank calculates the profit of the deposit pool every month. Gross income of the deposit pool is shared between the Bank (Mudarib) and customers (Rab-ul-Maal) on the basis of a predetermined profit-sharing ratio announced at the beginning of the month. The profit is distributed amongst the Rupee Saving Account holders on the basis of predetermined weightages, announced at the beginning of the month. In case of a loss, as per the rules of Mudarabah, the Rab-ul-Maal shall bear the loss in the ratio of their investment.

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Open a Dollar Savings Account!


Visit any of Meezan Banks branches, fill-in the Application Form and complete a few simple formalities required for opening your Riba-Free Dollar Savings Account; this is all you need to do to enjoy our personalized banking services.
Key Feature: Enjoy a range of accessible features including:

Minimum investment required to open an account is $100 There is no deduction of service charges if the balance maintained is low You will have instant access to your account through free Internet Banking Profit will be paid a on monthly basis Profit will be calculated on daily product basis, which ensures that you are getting a return on your investment all the time Foreign Remittances

Other facilities to facilitate your banking


Personal Banking consultancy services 24/7 Call Center with complete phone banking services Specialized 8 to 8 Banking at selected branches

5-The Meezan Islamic Institution Deposit Account (MIIDA) :


The Meezan Islamic Institution Deposit Account (MIIDA) is a unique product, tailored exclusively for Islamic Financial Institutions (IFIs). With MIIDA, any IFI now has the opportunity to manage excess liquidity in an immediate and profitable manner by maintaining a checking account with Meezan Bank. MIIDA works on the principle of Mudarabah under which the customer is an Investor (Rab-ul-Maal), and the Bank is the Manager (Mudarib) of the funds deposited by the customer. The Bank allocates the funds received from the customers to a Deposit pool. Funds in the pool are invested under Islamic modes of finance that include but are not restricted to Murabaha, Sukuk and Ijarah. Method of Profit sharing & Distribution The Bank calculates the profit of the deposit pool every month. Gross income of the deposit pool is shared between the Bank (Mudarib) and customers (Rab-ul-Maal) on the basis of the predetermined profit sharing ratio announced at the beginning of the month. The profit is distributed amongst the Account holders on the basis of predetermined
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weightages, announced at the beginning of the month. In case of a loss, as per the rules of Mudarabah, the Rab-ul-Maal shall bear the loss in ratio of their investment. Key Feture:
The features and mechanics of the product are detailed below providing a ready-made solution ensuring high returns, easy accessibility, total stability, and absolute Shariah compliance.

A Checking Account only available for IFIs. Deposits invested under a Mudarabah arrangement Minimum investment amount- PKR 10,000,000/- or multiples thereof Maximum investment amount PKR 1 billion Withdrawals of funds : o 24 hrs. notice for PKR 50 - 200M deposit o 48 hrs. notice for 200M+ deposit Profit disbursed on a monthly basis Profit calculated on daily product basis

6- Euro Saving Account:


The Riba-free Euro Saving Account is a Mudarabah-based savings account that you can open and operate using Euros and 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 Meezan Bank's Riba Free Euro Savings Account can be opened by:

Individuals Sole Proprietorships Partnerships Limited Companies

On agreeing to become a Meezan Euro Savings 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 funds deposited by the customers. The Bank allocates the funds received from the customers to a deposit pool. These funds from the pool are utilized to provide financing to customers under Islamic modes that include, but are not restricted to Murabaha, Ijarah, Istisna and Diminishing Musharkah. Method of Profit sharing & Distribution The Bank calculates the profit of the deposit pool every month. Gross income of the deposit pool is shared between the Bank (Mudarib) and customers (Rab-ul-Maal) on the basis of a predetermined profit-sharing ratio announced at the beginning of the month. The profit is distributed amongst the Euro Saving Account holders on the basis of predetermined weightages, announced at the beginning of the month. In case of a loss, as per the rules of Mudarabah, the Rab-ul-Maal shall bear the loss in the ratio of their investment. Following is the Profit Sharing Ratio for Mudarabah based Meezan Euro Saving Account

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Bank will share 85% of Gross Income as Mudarib Depositor will share 15% of Gross Income as Rab-ul-Maal

Product Feature:

Minimum deposit required to open an account is 100 Routine withdrawals up to 500 per day allowed without prior intimation (subject to availability) Withdrawals of above 500 needs 1 day prior notice No deduction of service charges if the balance maintained is low You will have instant access to your account through free Internet Banking Profit will be paid on monthly basis Profit will be calculated on a daily product basis, which ensures that you are getting a return on your investment all the time Foreign Remittances

7-Pound saving Account:


The Riba-free Pound Saving Account is a Mudarabah-based savings account that you can open and operate using UK Pounds and 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 Meezan Bank's Riba Free Pound Savings Account can be opened by:

Individuals Sole Proprietorships Partnerships Limited Companies

On agreeing to become a Meezan Pound 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 funds deposited by the customers..

Method of Profit sharing & Distribution The Bank calculates the profit of the deposit pool every month. Gross income of the deposit pool is shared between the Bank (Mudarib) and customers (Rab-ul-Maal) on the basis of a predetermined profit-sharing ratio announced at the beginning of the month.

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The profit is distributed amongst the Pound Saving Account holders on the basis of predetermined weightages, announced at the beginning of the month. Following is the Profit Sharing Ratio for Mudarabah based Meezan Pound Saving Account

Bank will share 85% of Gross Income as Mudarib Depositor will share 15% of Gross Income as Rab-ul-Maa

Product Feature:

Minimum deposit required to open an account is 100 Routine withdrawals up to 500 per day allowed without prior intimation (subject to availability) Withdrawals of above 500 needs 1 day prior notice No deduction of service charges if the balance maintained is low You will have instant access to your account through free Internet Banking Profit will be paid on monthly basis Profit will be calculated on a daily product basis, which ensures that you are getting a return on your investment all the time Foreign Remittances

Departmant of Meezan Bank Each branch is divided into different departments, and these departments are more or less the same in every branch. In general, all branches have the following departments: 1) 2) 3) 4) 5) 6) 7) 8) Cash/Deposits Department Customer Services Department Bills and Remittance Department Clearing Department Credit Department Foreign Exchange Department Accounts Department Consumer Finance Department

OPERATIONS DEPARTMENT
First I will describe about Operation Department which is being headed by Mr. Naveed Bari (Assistant Manager).This section is main section of any bank and it is also called general banking section while the corresponding manager is designated as general banking manager. It constitutes following major sections: Customer Services Department Bills & Remittance Department

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Cash/Deposits Department Clearing Department

1-CUSTOMER SERVICES DEPARTMENT


Customer Services Department performs the following functions: Functions Performed: The various functions performed by the Customer Services Department are : Account Opening Cheque Book Issuance Handling Customer Objections Issuance of Bank Statements Issuance of Balance Certificates Audit Reports of Different Companies Transfer of Account Account Closing Treatment for Dormant/Inoperative Accounts

1-Accounts Opening: Accounts are the back office activity of the bank where bank maintains record keeping and book keeping. In book keeping bank is twodimensional activity:

Internal Accounts Customer Accounts

Internal Accounts: In case of second dimension the bank keep a record of its own a/c such as profit and loss, furniture fixture, property, real assets, provision and other a/c which are in normal course, not directly related to the customer. By maintaining to these a/c the a/c dept. intimates the bank about it is position through profit and loss. Cost and expenses, salaries and allowances and in case of bad debts how much the bank has to slice form the profit to cover the loss. The bank utilities and maintenance e.g. cost of electricity gas etc. electric items of the bank. Customer Accounts: This is a section from where the banking starts and to understand banking in proper cycle one must start from it. As by name mentioned, the purpose of this section is to open customer accounts. Basically the accounts are classified into two major groups:
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Current Accounts. Saving Accounts

Current Account: Such deposits accepted by the bank which the account holder can withdraw at any time and up to any amount such account is called current deposit account is maintained for trading purposes and bank pays no profit to the account holder. A/C holder is at liberty to deposit or withdraw any amount from the a/c without prior notice to the bank. Saving Account: Saving a/c are considered to be demand time liabilities because up to a certain amount account holder can with draw the money without giving advance notice to the bank. Rules regarding maximum withdraw from the a/c are specified by every bank from time to time. Banks pay profit on this a/c on monthly product basis half yearly and in some cases daily basis. Though in theory there many types of accounts but commonly account operators can be classified in one of the following categories, each have different documentation requirements: Single Account Joint Account Sole Proprietorship A/c Partnership A/c Private Limited A/c Public Limited A/c.

Single/Joint Account: One person can open this by filling an application form. While in case of Joint account more than one people can open the account but operator can be either one or more and their name must be specified. Minor Account: In case of child this saving account is called minor account and the name of account operator with the time span must have to be specified in the form. Sole Proprietorship Account: This type of account is usually opened in the name of the business and mostly small business enterprises open such kind of accounts. Since only one owner of business, so remittance purpose business stamp with the signature of the owner must be used.

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Partnership Account: This type of account is opened in the name of the businesses having partnership concern and mostly small and medium business enterprises open such kind of accounts. Since more than one owner of business, so declaration regarding the account operators on the company pad and with the rubber stamp with the signature of the all the partners. In case of any change in partners or in the conditions of partnership bank must be informed regarding that. In case funds are borrowed by the company all the partners approval is necessary rather not only the authorized partner who can be the operator of the account. Private Limited Account: This type of account is opened in the name of the businesses having private limited concern and mostly medium business enterprises open such kind of accounts. All the board of directors have to submit the declaration regarding the account operator on the company pad and with the rubber stamp with the signature of the all the members of the board of directors. In case of any change in directors bank must be informed regarding that. In case funds are borrowed by the company all the directors approval is necessary rather not only the authorized partner who can be the operator of the account. Public Limited Account: This type of account is opened in the name of the businesses having Public limited concern and mostly medium business enterprises open such kind of accounts. All the board of directors have to submit the declaration regarding the account operator on the company pad and with the rubber stamp with the signature of the all the members of the board of directors. In case of any change in directors bank must be informed regarding that. In case funds are borrowed by the company all the directors approval is necessary rather not only the authorized partner who can be the operator of the account. Societies/Trusts Accounts: This type of account is opened in the name of the intuitions having societies/trust/schools concern and mostly trust, schools; societies open such kind of accounts. The committee members or in charges have to submit the declaration regarding the account operator on the company pad and with the rubber stamp with the signature of the all the members of the committees. In case of any change in trust/societies administration bank must be informed regarding that. 2-Cheque Book Issuance: When a customer fills in the account opening form, the requisition for cheque book is accompanied with it. The customer is provided with the
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cheque book as soon as his account is created in the bank. Then for further issuance of cheques, the requisition is given within the cheque book. Meezan offers two types of cheque books: Saving Cheque Book having 25 Leaves Current Cheque Book having 25, 50, 100 leaves Transfer of Account: If a customer wants to transfer his account from one branch to another branch, then he has to fill in the same account opening form, and to fulfill all the requirements of account closing. The bank sends the form along with an advising letter to the branch in which the customer wants to open his account. The other branch will open his account with a new account number, will issue a new cheque book to the customer and the funds of the customer will be transferred in that new account. Dormant and Inoperative Accounts: Dormant accounts are those accounts in which no transaction takes place during one year. Such accounts are marked dormant in the system. If no transaction takes place for two years, then such accounts are termed as inoperative. Such accounts are also marked in the computer system.

2-BILLS & REMITTANCE DEPARTMENT


A remittance is major function of any banking system. It includes payment of cash to customer or transfer of funds from one client or one place to another. Meezan Bank uses following instrument for transferring of money: Demand Draft (DD) Pay Order (PO). Telegraphic Transfer (TT).

Demand Draft: It is an instrument payable on demand for which value has been received, issued by the branch of the bank drawn i.e. payable at some other place (branch). If two banks are involved then the DD is sent to other bank but in other case it is handed over to the applicant. Telegraphic Transfer (TT): It is the quickest way of transfer of funds from one place (Branch) to other place (Branch) of the same bank. Generally, a mail transfer advice reaches the drawer branch the next day through courier services. But sometimes, a customer demands that his funds should

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be transferred through the quickest means. In such cases, transfer of funds message is passed through telephone or telegram. This mode of transfer was used before online. Online system is very effective for this Pay Order: It is an instrument issued for payment in same city. Pay order issued from one branch can only be payable from the same branch. It is normally referred to as bankers cheque. It is also called confirmed cheque, because bank issues this on it own guarantee. The practice of MBL is a bit different, it issues P.O for any branch located in Pakistan.

3-CASH/DEPOSITS DEPARTMENT
This department works under the operation department and deals with cash deposits and payments. This department maintains the following sheets, books, ledger of account on the computer. At Meezan Bank, Multan Branch has four members in cash department. They perform activities like collection of cash, payment of cash, verifying signatures with Computer containing the customer accounts detail along with their signature scanned into it etc. Incase of heavy payment operation manager is notified and then payment is made.

4-ACCOUNTS DEPARTMENT
Accounts Department is said to be the back bone of the whole banking system. The accounts department In Union Bank Is performing its functions manually as well as with the highly organized computer system. The person in charge of Accounts Department in Multan Branch is Mr. Arshad Shah. Functions of Accounts Department: Daily Working Management (includes checking of vouchers, stitching of vouchers, printing of reports with the assistance of system administrator, filing and maintenance of reports. Making vouchers of daily expenses with the approval of Branch Manager. Reconciliation of various accounts. Reporting to head office on daily, weekly , monthly, quarterly, semi-annually and annually basis Making of Budget with the consultation of Chief Manager and Marketing Department Allocation and Handling of Lockers

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5-FOREIGN TRADE DEPARTMENT


Foreign trade in Meezan Bank is headed by Mr. Bahzad Karim (Assistant Manager) and his two sub ordinates Mr. Naveed Abbas (Eport officer) and Mr Raza ( Import Officer) dealing in following. Exports Imports

6-CREDIT/ADVANCES DEPARTMENT
This department consists of two sections: Corporate Department Credit Administration Department Corporate Department:

This department is being headed by Mr. Wasf Ali Babar (Deputy Manager II). He is a person having very conscious, systematic, analytical exposure about the local market regarding credit. There are three relationship managers working under Mr. Babar. It is basically a sort of marketing department. The relationship managers capture the clients. They forward the proposals of the parties to the head office for approval. Then the case is transferred to the credit administration department, which completes all the documentation of the parties. Meezan Banks Corporate Banking Department is geared towards providing comprehensive and innovative financial solutions to the banks client base through a diverse product offering. Aimed at nurturing and developing a long-term relationship with clients, the Corporate Banking Unit takes great care in understanding each clients unique financing requirements and accordingly provides Shariah compliant financing solutions. CREDIT ADMINISTRATION DEPARTMENT

This department is being headed by Mr. Tariq. All the documentation for the advances being made to the parties is done by this department. In Islamic the general documents required are Offer letter Financing agreement o Purpose and definitions o Terms and period o Security
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o Fees and expenses o Payments and accounts o Delivery o Use of financed asset o Maintenance of financed asset o Insurance, accidents, injuries and indemnifications o Registration and title o Return of financed assts o Limitations and liabilities o Default and termination o Inspection o Prudential and regulations o Inspections o Representations and warranties Written request Undertaking Receiving notice Pay Order in the name of seller of commodity. Types of Securities: Meezan bank normally allows the advances to the customers against the following types of securities. Bankers lien Hypothecation Mortgage Pledge Guarantee Charge Bankers Lien:

Lien is the bankers right with whole property until the loan on the property is paid. It is an employed pledge and the banker has the right to sell the securities after reasonable notice. This type of security is accepted in case of advance against share, life policies, bonds, ornaments and fixed deposits. Pledge:

Taking up goods a s security by banker for repayment or advance.it occurs when goods and documents of title or securities are handed over to the bank. It can at the place of borrower like stock locked in at stores of the factory.this type of security is only valid for moveable things. This type of security is accepted in case of stocks or raw materials. In a pledge the borrower has not right to sell the stocks with the permission of bank.

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Hypothecation:

It is a legal transaction whereby gods may be made available as security for a debt without transferring either the property or the possession of the lender. It is very risky kind of lending and only accepted from parties having very good image in the market. Banker has right to inspect the goods, stock and insurance of the goods. Guarantee:

It is a contract to perform the promise or discharge a liability of third person in case of his default. Normally companies are not allowed for such kind of securities. Two further tuypes of guarantees are specific and continuing. Specific guarantee is for limited time period while in other case it is on fluctuating balance and no limit of time is there. Mortgage:

There are two types of mortgage. These are Legal Mortgage and Equitable Mortgage. Legal Mortgage and Equitable Mortgage are used in case of immoveable properties like land, building and machinery. Charge

If a customer takes loan not in full amount he can have against his capital from one bank, he can have it form different banks at a time. The first loan taken by him form a bank will be called first charge the second will be second charge and so on. For example If a person can have loan of Rs. 100,000 according to his capital: He takes Rs. 50,000 from Meezan Bank Ltd Rs. 25,000 from Bank Alfalah Rs. 25,000 from Saudi Pak Bank

Performance of Organization
Net Profit

Years

2005

2006

2007

2008

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profit

20.15

17.80

16.27

8.27

Net Profit
25 20 15 10 5 0 1 2005 2 2006 3 2007 2008 4

From above we can analyze that growth are decreasing as per year so the bank has to work over to improve their net profit. Bank has to remove if there is any barrier. Market Share With the Strategic Plan in place our task for 2008 will be very challenging in the current political situation and economic slow down witnessed in the last three months. However, the Bank has a positive outlook for the country and believes that the future government will continue with the growth policies. Therefore, the Bank will continue to build market share through an aggressive branch expansion plan supported by a strong technology backbone. Meezan Bank plans to expand its branch network to approximately 140 branches by the end

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of

the

year

that

will

further

increase

its

customer

out-reach

INSHALLAH. With 166 Branches (including 35 sub-branches) in 40 cities across Pakistan, Meezan Bank is clearly positioned as the leading Islamic Bank in the country. Work starts on the construction of Meezan Banks new Head Office building. The financing and investment portfolio of local Islamic banks reached Rs. 185 billion in December 2008 compared to Rs. 137.6 billion in December 2007. Market share in the overall banking increased to five per cent at end December 2008 compared with four per cent at end December 2007. Total assets of Islamic banking reached Rs. 271.1 billion in December 2008 compared to Rs. 205.2 billion in December 2007. Volume of Assets (millions)

Years Total Assets

2005 30676

2006 46439

2007 67179

2008 85276

As se ts
100000 80000 V a lu e o f 60000 Asse ts 40000 20000 0

1 2005

2 2006

3 2007

4 2008

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Share Price in Stock Market


Years Share Price 2005 23.25 2006 19.50 2007 38.55 2008 21.48

Share Price
50 40 30 20 10 0 1 2 3 4 2005 2006 2007 2008

Series 1

From above we can analyze that the share price is low as compared to previous year, so we have to keep focus on it. Make a plan to improve or increase price to attract previous share holders.

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Balance Sheet

Profit and loss Account

42

43

Cash Flow Statement

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Financial Analysis Liquidity Ratio


It is the relationship between the current assets and current liabilities of a concern. Current Ratio = Current Assets/Current Liabilities Year Current assets Current liabilities Current Ratio 2005 6812761 3242446 2.1 2006 10212269 4848440 2.10 2007 9373577 3607766 2.59 2008 7108685 5065513 1.4

Liquidity Current Ratio


3 2 1 0 1 2005 2 2006 2007 3 2008 4 2.1 2.1 2.59 1.4

Solvency Ratio
Debt equity Ratio = Debt liabilities/ Net asset Year Debt liabilities Net assets Debt equity Ratio 2005 24408794 6812761 3.58 2006 36826824 10212269 3.60 2007 57864137 5706656 10.13 2008 74325579 5974978 12.4

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Profitability ratio
Year Net Profit margin Gross profit margin Return on capital employed 2005 18.5 43.83 .018 2006 17.80 45.86 0.0020 2007 16.27 46.39 .0022 2008 8.27 54.61 .0024

Profitability ratio
0.02 0.01 0 Series1 1 0.018 2005 2 0.002 2006 3 0.0022 2007 4 0.0024 2008

Return on capital employed =(PBIT / Capital employed)*100 PBIT = Core banking income before provision Capital Employed = Equity + Long term liabilities 2008 2007 2006 6341 + 11025091 = 11031432 5720 + 57864137 = 57869857 4763 + 36826824 = 36831587

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2005

3821 + 24408794 = 24412615

Investment Ratio
Year Earning Per Share Price Earning Ratio Dividend Per Share 2005 1.16 15.92 16 2006 1.88 10.51 10 2007 1.96 15.2 20 2008 1.26 17.03 8.6

Earning Per Share


4 2 0 Series1 1 1.16 2005 2 1.88 2006 3 1.96 2007 4 1.26 2008

In 2007 the per share earning is good but it decreases in 2008 1.96 to 1.26 so the management has to give attention here.

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Price Earning Ratio


20 10 0 Series1 1 15.92 2005 2 10.51 2006 15.92 10.51 3 15.2 2007 4 17.03 2008 15.2 17.03

Here the management has recovered their position and improved.

Dividend Per Share


25 20 15 10 5 0 1 2005 20 10 8.6 3 2007 2008 4

16

2 2006

The dividend has decreased 20 to 8.6 R.s. This is very bad for companys good will or stock market. Management has to focus over it other wise the company has to bear more loss in future.

Capital Adequacy Ratio (Capital to Risk (Weighted) Assets Ratio)


Year 2005 2006 2007 2008

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Average Ratio Average Equity

1.67 16.70

1.57 15.64

1.70 10.30

.82 18.39

Average Ratio
2 1.5 1 0.5 0 1 2 3 4 2005 2006 2007 2008 1.67 1.7 0.82

1.57

Average Equity
20 15 10 5 0 1 2 3 4 2005 2006 2007 208 16.7 18.39 10.3

15.64

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Annexure:
Reference& sources:
I used following references to prepare my reports Manager of the branch 1I collect information from manager in the form interviews Operation manger Employees of the branch 1I collect information from other staff members of the branch in the form interviews. Pamphlet or brochure I also study the different pamphlet of the different products and department Friends and teachers The most important of me in the preparation in my reports are my friends and my teachers who help me and guided at each step. Internet The very important source where I collect data about the Meezan bank is the internet. I visit cite of the Meezan bank and AL-Meezan investment group. Following are both the websites are.

www.meezanbank.com.pk www.almeezan.com.pk Annual Report 2007, 2008

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