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Business Internship Report On

Saddar Branch Hyderabad

Submitted By

Sehrish Habib
Seat No 64

SESSION: 2008-2009
All praise to Almighty Allah, the most merciful and compassionate, who give me skills
and abilities to complete this report successfully

I am grateful to my parents who are always been a source of encouragement for me

throughout my life and from start to the end of this report

I feel deeply indebted to all my teachers for provision of inestimable, priceless and
valuable co operation and support.

I would also like to thanks Meezan Bank Limited for provision of valuable guidance and
information. I found every one very co-operative and helpful for providing me the
theoretical as well as practical knowledge about the function and operation of the bank.

Last but not least I would prefer to convey the credit to Hiast Authorities without whose
on time support and guidance it would be difficult for me to achieve this task

Sehrish Habib

This Report is specially meant for the student of MBA. It is concerned to a brief study of
the operation, Function, tasks and services of Meezan Bank of Pakistan.

Banking play very important role in the commerce and economic development of a
country. Now-a-days banks are using different modern technologies, which influence the
managerial activities that are why I decided to do my internship Training in the 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 a
historic initiative, Meezan Bank was granted the nation’s first full-fledged commercial
banking license as a dedicated Islamic Bank, by the State Bank of Pakistan. MBL is the
largest Islamic Bank in Pakistan with a network of 201 branches in 54 cities.

In preparation of this Report I have tried my best to provide all possible information
about the operation, function and tasks of MBL in brief and comprehensive form. The
report begins with the purpose of making such report than detailed introduction of MBL
discussed. It also includes management structure of MBL and different products and
services offered by MBL along with their features. It also includes a brief department
worked during internship and SWOT of MBL. I have also tried my best to use simple and
easy words.
To discuss the financial position of MBL financial statements and ratios are also shown.
The internship report ends with some recommendation after identification of some
problems observed during the course of internship.

Chapter – 1



The study is about the general operations and management of Meezan Bank Limited
main saddar branch Hyderabad, and focuses on its function and operations, which was
conducted through interviews in the branch.

Every student of MBA (Management of business administration) has to under go an

internship program of six-eight weeks in any organization to get exposure to the real time
business environment and to attain practical knowledge about daily operation of that
entity. The real purpose of this internship program is to provide an opportunity to the
students to see the practical applications of their background professional studies.

The repot is a reflection of my experience when I was internee in MBL, main saddar
branch, Hyderabad. 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 a historic initiative, Meezan Bank was granted the nation’s first full-
fledged commercial banking license as a dedicated Islamic Bank, by the State Bank of


It is necessary for the student of MBA that they should be acquainted with practical
applications of business studies and should gain business experience. In this connection
every student is required to undergo an internship of at least six weeks in any
organization. It not only gives us a chance to interact with the people already working
there this enable us to get to know the financial institutions concern’s atmosphere and
business stature in Hyderabad. Purpose of the study was two pronged.

1.2.1 General Purpose

• This study offers knowledge and experience of courses studied.

• To improve the writing and analytical skills of students.
• To familiarize the student with the practices and working environment during the

Specific Purpose

• A partial fulfillment as a requirement for the completion of MBA degree.

• To objectively observe the operations of Meezan Bank of Ltd in general and the
operations of MBL, main saddar branch Hyderabad in specific.
• To get acquaintance to the banking operations.
• To make recommendations or implementation plans for the improvement of the
operations of MBL, main saddar branch Hyderabad in the light of our
professional studies.


The study covers two areas with its variables, which affects the operations of the branch
directly, or indirectly. These two areas of variables are:

• Branch specific variable.

• Bank specific variable.

The branch specific variables are the variables under the control of the branch
management and directly affect its operations e.g.

• Layout of the branch.

• Customers’ relations.
• Departments in the branch
• Online banking.
The bank specific variables are those variables, which are not in control of the branch
management e.g.

• History of MBL
• Services provided by MBL
• Role of MBL


During my internship while I was compiling I use the following research methodologies.

1.4.1 Data Sources

Both primary and secondary have been used in the compilation of this report. The
methodology used is as under: PRIMARY DATA

During the compilation of this report, I relied mainly on the primary data. The tools used
for the collection of primary data are interviews and observation. To get primary data I
also performed some practical work. SECONDARY DATA

The secondary data was mainly used for as a background material and for purpose of
references. The major sources of secondary data were the annual report 2010,
management accountant’s journals, newspaper, books, and MBL website.

1.4.2 Research Approaches

Keeping in view my limitations during and the nature of the study, two research
approaches were adopted. These research approaches are:

• Survey.
• Observation as.
 Participant observation and
 Non-participant observation.

1.4.3 Sampling Plan

Details of the sampling plan used during this report are given below. Sampling Unit

The sampling unit constitutes of the following.

• Manager of MBL main saddar branch Hyderabad.
• Staff of MBL main saddar branch Hyderabad
• Customers. Sample Size

The sampling size constituted of

• All the customers coming into the Bank.
• One bank managers.
• Six staff members. Sampling Procedures

The sampling procedure used was non-probability judgmental and convenience

procedure. Contact Method

Personal contact method was used as a contact method, which included:

• Structured interviews with managers and personnel from operations department.
• Unstructured interviews with staff members.


The Study was subject to the following limitations, the absence of which could have
made this report more accurate, systematic and factual:

• The very limited period of time was available to conduct the detailed analysis,
which hindered procurement of exhaustive and complete per day visit, which also
cause some difficulties in obtaining adequate information.
• The bank officials because of secrecy of the bank matters didn’t answer the
number of questions.
• The non cooperative behavior of some staff members.


The report has been divided into eight chapters. A brief introduction of these chapters is
given below:

Chapter 1 This chapter contains a brief introduction of the report.

Chapter 2 A brief organizational profiles and history of MBL is presented in this

chapter, and an overview of the services offered by MBL is given in this

Chapter 3 This chapter contains brief introduction of different departments

Of main sadder branch Hyderabad on which I worked.

Chapter 4 This chapter contains a brief introduction of the management of

Meezan Bank Limited

Chapter 5 It is consist of the product and services of the MBL.

Chapter 6 It consists of SWOT analysis of the (MBL, main saddar branch


Chapter 7 Financial highlights of the MBL. This chapter is consist of the financial
statement of the MBL.
Chapter 8 It consists of the important findings of the study and the suggestions
developed in the light of these findings.

Chapter – 2



2.1.1 Islamic Finance

Islamic finance was practiced predominantly in the Muslim world throughout the middle
Ages, fostering trade and business activities with development of credit. In Spain and the
Mediterranean and Baltic states , Islamic merchants became indispensable middleman for
trading activities. In fact European financier and businessmen later adopted many
concepts, techniques, and instruments of Islamic finance. The financial system is founded
on the absolute prohibition of the payment or receipt of any predetermined. Granted rate
of return .this closes the door to the concept of interest and precludes the use of debt-
based instrument. The system encourages risk sharing promotes entrepreneurship,
discourages speculative behavior, and emphasizes the sanctity of contracts.

2.1.2 The Islamic Economic System

One of the forms of capitalism, which has been flourishing in non Islamic societies, is the
interest based investment. There are normally two participants in such transaction. One is
the investor who provides capital on loan and other manager who run the business. The
investor has no concern whether the business run in to profit or loss he automatically get

2.1.3 Riba

Definition of Riba
The word Riba means excess, increase or addition, which correctly interpreted according
to Shariah terminology, implies any excess compensation without due consideration .
(This definition of Riba is derived from Quran and is unanimously accepted by all
Islamic scholars)

There are two types of Riba .

1. Riba An Nasiyah
2 .Riba Al Fadl

1. Riba An Nasiyah: Defined as excess, which result from predetermined interest which
a lender receives over and above the principle (Ras ul Maal).

2. Riba Al Fadl: Defined as excess compensation without any consideration resulting

from a sale of goods.

2.1.4 Commercial Interest And Usury:

In 17th century two new technical terms of interest emerged after the established of
banking system.

• Tijarti Sood :
Interest paid on loan taken for productive &profitable purposes.
• Sarfi Sood :
Interest paid on loan taken for personal need and expenses.

2.1.5 Islamic banking:

The interest free system envisages the gainful use of one’s saving with other on the basis
of profit and loss sharing in a defined manner. Effective from Jan 01, 1981, the
Nationalized commercial banks and now all other commercial banks in Pakistan have
introduced the profit and loss sharing (PLS) Deposit Scheme features of which as under .

• PLS- Saving Accounts

• PLS Term Deposit Accounts
• Investment Of PLS Deposits
2.1.6 Modes of Islamic Banking

Literally it means a sale on mutually agreed profit. Technically, it is a contract of sale in
which the seller declares his cost and profit. Islamic banks have adopted this as a mode of
financing. As a financing technique, it involves a request by the client to the bank to
purchase certain goods for him. The bank does that for a definite profit over the cost,
which is stipulated in advance.

Ijarah is a contract of a known and proposed usufruct against a specified and lawful
return or consideration for the service or return for the benefit proposed to be taken, or
for the effort or work proposed to be expended. In other words, Ijarah or leasing is the
transfer of usufruct for a consideration which is rent in case of hiring of assets or things
and wage in case of hiring of persons.

A contract under which an Islamic bank provides equipment, building or other assets to
the client against an agreed rental together with a unilateral undertaking by the bank or
the client that at the end of the lease period, the ownership in the asset would be
transferred to the lessee. The undertaking or the promise does not become an integral part
of the lease contract to make it conditional. The rentals as well as the purchase price are
fixed in such manner that the bank gets back its principal sum alongwith with profit over
the period of lease.

Musawamah is a general and regular kind of sale in which price of the commodity to be
traded is bargained between seller and the buyer without any reference to the price paid
or cost incurred by the former. Thus, it is different from Murabaha in respect of pricing
formula. Unlike Murabaha, seller in Musawamah is not obliged to reveal his cost. Both
the parties negotiate on the price. All other conditions relevant to Murabaha are valid for
Musawamah as well. Musawamah can be used where the seller is not in a position to
ascertain precisely the costs of commodities that he is offering to sell.

It is a contractual agreement for manufacturing goods and commodities, allowing cash
payment in advance and future delivery or a future payment and future delivery. Istisna’a
can be used for providing the facility of financing the manufacture or construction of
houses, plants, projects and building of bridges, roads and highways.

Literally it means a credit sale. Technically, it is a financing technique adopted by Islamic

banks that takes the form of Murabaha Muajjal. It is a contract in which the bank earns a
profit margin on his purchase price and allows the buyer to pay the price of the
commodity at a future date in a lump sum or in installments. It has to expressly mention
cost of the commodity and the margin of profit is mutually agreed. The price fixed for the
commodity in such a transaction can be the same as the spot price or higher or lower than
the spot price.

A form of partnership where one party provides the funds while the other provides
expertise and management. The latter is referred to as the Mudarib. Any profits accrued
are shared between the two parties on a pre-agreed basis, while loss is borne only by the
provider of the capital.

Musharakah means a relationship established under a contract by the mutual consent of
the parties for sharing of profits and losses in the joint business. It is an agreement under
which the Islamic bank provides funds, which are mixed with the funds of the business
enterprise and others. All providers of capital are entitled to participate in management,
but not necessarily required to do so. The profit is distributed among the partners in pre-
agreed ratios, while the loss is borne by each partner strictly in proportion to respective
capital contributions.

BAI SALAM: Salam means a contract in which advance payment is made for goods to
be delivered later on. The seller undertakes to supply some specific goods to the buyer at
a future date in exchange of an advance price fully paid at the time of contract. It is
necessary that the quality of the commodity intended to be purchased is fully specified
leaving no ambiguity leading to dispute. The objects of this sale are goods and cannot be
gold, silver or currencies. Barring this, Bai?Salam covers almost everything, which is
capable of being definitely described as to quantity, quality and workmanship.

• 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 a historic initiative, Meezan Bank was granted the nation’s first
full-fledged commercial banking license as a dedicated Islamic Bank, by the State
Bank of Pakistan.
• Meezan Bank has clearly established itself as the largest Islamic Bank in Pakistan
with the largest Islamic Banking branch network in the country. The banking
sector is showing a significant paradigm shift away from traditional means of
business and is catering to an increasingly astute and demanding financial
consumer, who is also becoming keenly aware of Islamic Banking. Meezan Bank
bears the critical responsibility of leading the way forward in establishing a stable
and dynamic Islamic Banking system replete with dynamic and cutting-edge
products and services.
• During the eight years of its operations as an Islamic commercial bank offering
universal banking services to customers, Meezan Bank has been one of the fastest
growing banks in the history of Pakistan’s banking sector. Average growth in
deposits has been 55% per annum during this period while the branch network
grew from 4 to 201. The Bank has established a strong and credible management
team comprised of experienced professionals, that have achieved a strong balance
sheet with excellent operating profitability and strong ratios, which places the
Bank at the top of the Islamic Banking industry. The Bank has been assigned a
long-term entity rating of A+ with a ‘Stable’ outlook and a short-term entity
rating of A1.
• The Bank’s main shareholders are leading financial institutions of the Region
namely, Noor Financial Investment Company, Kuwait, a leading investment
company based in Kuwait; Pak-Kuwait Investment Company, a AAA rated
financial entity in the country and the Islamic Development Bank of Jeddah. The
established position, reputation, strength and stability, of these institutions add
significant value to the Bank through Board representation and applied synergies.
• The Bank has an internationally renowned Shariah Supervisory Board Chaired
by Justice (Retd.) Maulana Muhammad Taqi Usmani, an internationally
renowned figure in the field of Shariah, particularly Islamic Finance. He holds the
position of Deputy Chairman at the Islamic Fiqh Academy, Jeddah and in his long
and illustrious career has also served as a Judge in the Shariat Appellate Bench,
Supreme Court of Pakistan. The Board also includes Sheikh Essam M. Ishaq
(Bahrain), Dr. Abdul Sattar Abu Ghuddah (Saudi Arabia) and Dr. Imran Usmani
who is also the resident Shariah Advisor of the Bank. Dr. Imran is assisted by a
team of professionals who strictly monitor the regular transactions of the Bank
and are also responsible for Product Development.

• The bank has developed an extraordinary research and development capability by

combining investment bankers, commercial bankers, Shariah scholars and legal
experts to develop innovative, viable, and competitive value propositions that not
only meet the requirements of today’s complex financial world, but do so with
world-class service excellence which our customers demand, all within the
bounds of Shariah.

• Meezan Bank has a strong technology focus. It has invested heavily in state-of-
the-art software applications – namely Temenos T-24 and Oracle. It has also
recently upgraded its hardware platform and also has a ‘hot’ disaster recovery site
in place to cater to any unforeseen eventualities.
• By implementing robust and aggressive strategic and tactical initiatives on the
side of consumer banking, Meezan Bank aims to fulfill its prime target of
providing customers accessibility and convenience, within an atmosphere and
culture of dedicated service and recognition of their needs. The Bank has a rapidly
growing branch network across all major cities nation-wide.
• At Meezan Bank, we believe in adding value to our customers’ lives and
businesses through dynamic and competitive products and services that fulfill
their needs while conforming completely to the dictates of Shariah. At the same
time, we endeavor to deliver competitive risk-adjusted returns to our stakeholders


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

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.

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.
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.


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

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.

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

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.
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

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).

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

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.

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 Bank’s 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
assetsof Islamic banking reached Rs. 271.1 billion in December 2008 compared to Rs.
205.2 billion in December 2007.
Branch network of six dedicated Islamic banks increases to 480 Branches (Including Sub-
Branches) with Meezan Bank having a 42% share of the Islamic Banking branch network
in the country with 201 branches in 54 cities accross the country. Islamic Banking's share
grows to over 5.5% of the total Banking industry

Establish Islamic banking as banking of first choice to facilitate the

implementation of an equitable economic system, providing a strong
foundation for establishing a fair and just society for mankind.


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

innovative value added products and services to our customers
within the bounds of Shariah, while optimizing the stakeholders
value through an organizational culture based on learning, fairness,
respect for individual enterprise and performance.


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.

2.8 Meezan Bank entity rating of AA- for medium to long term and A-1
for short-term

Meezan Bank entity rating upgraded by JCR-VIS: Meezan Bank has received entity
ratings of AA- (Double A Minus) for medium to long-term and A-1 (A-One) for short-
term. These ratings have been assigned by JCR-VIS Credit Rating Company, which has
also set Meezan Bank’s outlook on medium to long-term rating as “Stable”.

Meezan Bank’s ratings are based on its shareholding with world-renowned financial
institutions, pioneering role in the industry, strong management initiatives in
continuously introducing various range of Islamic products.


Medium to Long Term Short Term
AA+, AA, AAHigh: High credit quality. A-1: High certainity of timely payment.
Protection factors are strong. Risk is modest Liquidity factors are excellent and
but may vary slightly from time to time supported by good fundamental protection
because of economic conditions. factors. Risk factors are minor.


Alhamdolillah, Meezan Bank has established 201 branches in 54 cities across Pakistan.
This is a milestone that is not only the success story of Meezan Bank but also the
continuing success story of Islamic Banking in Pakistan. With this extensive network, our
existing and potential customers are now closer than ever in attaining Islamic Banking at
their doorstep. All branches provide real time online banking facilities to customers.
As the first and largest dedicated Islamic Bank in Pakistan, Meezan Bank team continues
to build on its Vision of establishing "Islamic Banking the Banking of First Choice". One
of the key objectives of the Bank is to have its footprint strategically placed throughout
the country enabling the public to avail the benefits of Shariah Compliant Banking in
their neighborhood.

The Bank is currently segmented into three Regions of Pakistan. The cities in which the
Bank presently operates are as follows:

Southern Region Central Region Northern Region

Hub (Lasbela) Arifwala Abbottabad
Hyderabad Bahawalpur Attock
Karachi Burewala Dera Ismail Khan
Mirpurkhas Chiniot Dina
Nawabshah Daska Gujar Khan
Quetta Dera Ghazi Khan Haripur
Sakrand Faisalabad Havelian
Sukkur Gojra Islamabad
Tando Adam Gujranwala Jhelum
Tando-Allah-Yar Gujrat Kohat
Hafizabad Mansehra
Jhang Mardan
Kasur Muzaffarabad
Khanpur Nowshera
Khushab Peshawar
Lahore Rawalpindi
Lalamusa Swat
Mandi Bahauddin
Mian Channu
Rahim Yar Khan


• Meezan Bank Limited and Islamic Relief sign MOU for launching Islamic
Microfinance: Meezan Bank signed an MOU with Islamic Relief, an independent
International Relief and Development Organization founded in 1984 in UK with
offices in more than 25 countries, for launching Islamic Microfinance in Pakistan.
Under the MOU, Meezan Bank will assist Islamic Relief to enhance its Islamic
Microfinance operations in Pakistan by capacity building, training and product
development support.

• Public awareness seminars on Islamic Banking: Meezan Bank conducted 24

Islamic Banking seminars in 14 cities across Pakistan during 2009. Customers
appreciated this initiative by Meezan Bank and requested that such seminars
should be held more frequently since these help them in gaining a better
understanding of Islamic Banking.

• Launch of MBA in Islamic Banking at Riphah University, Islamabad:

Meezan Bank Limited and Riphah International University, Islamabad signed an
MOU for jointly launching a programme on Islamic Business and Finance for
students and finance professionals. Meezan Bank will provide expertise in
structuring the course, provide faculty for conducting credit hour courses and for
conducting workshops & seminars and share case studies and proprietary
Chapter – 3



• Branch Name : Hyderabad Branch

• Address : Saddar Bazar Cantonment, Hyderabad
• Phone : (92-22) 2787991-93
• Fax : (92-22) 2782772
• Email : bm.hyd01@meezanbank.com
• Branch Manager : Irshad Ali Chachar
• ATM available

There are 5 main departments at the branch:




Account opening and closing is the function of customer services department. The bank’s
customers includes individuals (single or joint), firm (partnership/proprietorship),
Autonomous corporations, Limited companies, Charitable Institutions, associations,
Educational Institutions or local bodies.
Brief Explanation of these accounts is as follows

3.2.1 Products offered by this department:

a) Riba Free Rupee Savings Account

 Current account
 Saving Account

b) Riba Free Dollar Savings Account

 Foreign Currency Account

Account opening is the basic and first relationship, which is established between Bank
and the customer. In account opening extreme care has to be exercised in case of
completion of account opening documentation.
Whenever a client comes in the bank in order to open an account the first information that
is given to him/her about the types of accounts, which can be opened, so far this purpose
the client is given detailed information about the accounts and their respective profit


3.2.4 Sub-categories of Accounts and the Basic Requirements:

 Bay form and copy of passport minor
 National Identity card of Guardian
 Signature requirement of guardian
 Copy of national identity card
 Complete account opening form
 Letter of introduction if required
 Visiting Card (if the person is employed)

As evident from the name these accounts can be jointly opened by any number of
persons. The minimum number of persons required to open a joint account is two but
there is no maximum limit.

 National Identity card of all Applicants.
 Signature of all Applicants.
 Zakat Affidavit of all Applicants (zakat Examption).
 Operation of account clearly mentioned.
 The options available to operate the account are:
 Jointly
 Either or Survivor
 Other(s)(Please specify)


 Certified copy of resolution
 Certified copy of rules
 Copies of National Identity cards of all directors/passports
 Completed account opening form
 Specimen Signature Card

 Completed account opening form
 Specimen Signature Card
 Certified copy of trust deed
 Copy of rules/by laws
 Copies of National Identity cards of all trustees



 Declaration Letter
 Copy of NIC/Passport of the proprietor
 National Tax Certificate
 Declaration of Sole Proprietor on company letterhead
 Business registration Certificate
 Specimen Signature Cards and completed account opening form.
 Partnership Deed, certified copy.
 Photocopies of NIC of all partners.
 Partnership Mandate (Prescribed Format).


 List of Directors of company.
 NIC of all Directors.
 Copy of certificate of Incorporation.
 Memorandum of Association.
 Article of Association.
 Copy of Board Resolution.
 Latest Copy of Form-29
 Stamp of Company, which is to be affixed on the account opening form.
 Certificate of Commencement of Business


These accounts can be opened individually or jointly.
For men, the right hand thumb impression and for women, the left hand thumb
impression is taken on account opening form.
The customer is given advice to come to bank by himself in order to withdraw any cash
or deposit the cheque.

 Photocopy of NIC of Account Holder.
 Two-three passport size photographs.


First of all, after inquiring from the customer what type of account he/she wants to open,
the account opening form is got filled from the customer and signed it. Along with the
account opening form, the customer is also signed two Specimen Signatures Cards.

After fulfilling all the formalities of account opening, the computer generated account
number is given to the customer that is of special series depending on the type of account.

A requisition slip is given to the customer to sign it so that the customer can get
chequebook. Chequebook is issued after one day of receiving the requisition slip.

After opening the account “A Letter Of Thanks” is send to the customer in order to thank
the customer for opening an account in the Bank. This letter tells all the information
regarding his/her accounts, which are kept very confidential.


After an account is opened, an entry is made in the account opening register, which has
the following columns:

 Date
 Account Number
 Name & Address
 Telephone Number
 Initial Deposit

Customer Services/Relation Officer enters the new account opened in computer and the
Specimen signature Cards are also scanned so that whenever a cheque of the respective
account comes for encashment, the signatures can be verified.

3.2.6 Overall functions performed by Customer Services Department:




In clearing process, if the account holder of MBL receives the cheque of other bank like
City Bank, Habib Bank Limited etc, and he submits it in MBL branch to be cashed. At
the same time the clearing process starts. First the bank name, Cheque number and the
amount are written in the register. After this three kind of stamps are required first bank
name stamp, secondly clearing stamp of next date and If the cheque is not local then the
inter city clearing stamp is required.

Some cheques are local and some are outstation. The institution N.I.F.T. provides the
services in clearing the cheque. They send the different cheque to different banks. The
N.I.F.T service is only in few cities, like Karachi, Lahore, Rawalpindi. The cheque of
inter city is send through N.I.F.T. And where, the N.I.F.T service is not available so the
cheque is sent through T.C.S.

The clearance of cheque is informed through advice. Some cheque is not passed so they
should return so Rs. 100 is deducted and if the cheque is inter city then the postage
charges is deducted. For this purpose the Debit & Credit voucher is used. When the
cheque is cleared the today stamp is required. Some cheque is drawn on MBL. This is
called outward clearing. These cheques will be entered in the outward clearing register.
And the advice is sent for the clearance of cheques. The account holder account is

 Inward clearing
 Outward clearing

In the morning, the bank receives its own cheques, which have been presented by the
customers in some other bank to be deposited in their account. NIFT provides the facility
of bringing cheques for inward and also takes the cheques of outward clearing to other
banks. The cheques received in inward clearing are the cheques drawn on bank and the
bank has to pay for them. For this purpose the bank makes clearing in computer by
checking the balances of the respective customer, if their balances are up to the mark then
that cheque is cleared and the respective customer account is debited with the respective
amount. If the balances are short then that cheque is bounced back to the related bank.

Reasons for returning a cheque:

• All required stamps of Clearing, Crossing and Endorsement are not present on
• Cheque is post date.
• Refer to drawer
• Effects not cleared, may be presented again
• Amounts in words and figures differ.

If any of these reasons exists then that cheque is returned through NIFT and deducts Rs.
300 from customer’ account as cheque returned charges.

Then the report of returning any cheque is sent through fax to the head office Karachi.
After this put the entry in Cheque return register showing the following columns:

 Date
 Title of account
 Account number
 Cheque number
 Bank and Branch name
 Reason to return

All the cheques of other banks which are deposited to MBL are presented in outward
clearing. This is said as outward clearing because they are presented on the very next day
after depositing a cheque.

If a customer holds two accounts in the bank and he/she wants to transfer money from
one account to other account, customer writes a cheque and fills deposit slip in which
he/she writes account number to which amount is to be transferred. After making transfer
entry in the computer, affix transfer stamp in the middle of the cheque, crossing on the
upper left and bank’s endorsement stamp on the backside of the cheque.


Whenever clearing officer receives phone call from the customer inquiring about his/her
account balance after confirming the name, address and other information he
tells the balance through computer.


It is also the duty of department to issue a chequebook when an officer receives request
from the customer. REMITTANCE

Another important department in MBL is Remittances Department. The remittances

department transfers the funds from one bank to other bank and from one place to another
In remittances department the collection take place. The MBL made payment of only
open cheques on the counter and prohibits the payment of crossed cheques. MBL
transfers money from one place to another by the following means:

a) Pay order
b) Demand drafts
c) Inward collection
d) Outward collection

Pay order is an order to pay money but this payment is to be made within city. In other
words it can be said that the payee and the payer should be in one city.
In pay order the payment can be made in

A) Cash
B) Clearing
C) Transfer

In case of pay order first of all the customer has to fill a pay order application form in
favoring section: name, account number, amount, beneficiary name, address, etc.
The data is entered in already set format of pay order in computer and pay order print out
is taken. An authorized person and manager operations are signed pay order.
The original copy of the pay order is given to the customer and carbon copy is kept with
bank for office record.

An order to pay money to the payee who is residing outside the city. DD can be for a
customer who may or may not have an account in the bank but the other person’s account
must be maintained with the bank for which the payer has demanded the DD.

When the bank receives cheques of any other bank from its any branch situated in the
some other city, then those have been dealt as inward collection. OTHER FUNCTIONS UNDER OPERATIONS DEPARTMENT


Lockers operations shall not be permitted under power of attorney of a customer. A

customer wishing to allow another person or agent may be requested to open a new
locker account under joint names and close the existing account.
In offering this facility branches have to be selective and should provide lockers to the
customers whose identity and integrity is verified, who should maintain account with the
branch and have potential for deposits and other banking business. It is reiterated that
honesty, creditability and good reputation of the customer is of utmost importance in the
selection of customer for lockers.

 Available in selected branches
 Available in 3 sizes (small, medium and large)
 For all eligible Account Holders
 Key security Deposit PKR 3000

 Application on Prescribed Form duly filled
 Saving/Current Account with MBL
 02 Passport size Photographs

b) Cheque Books Handling


The following products are handled under the operation department.

 Certificate of Islamic Investment
 Monthly Mudarabah Certificates
 Dollar Mudarabah Certificates
 Meezan Amdan Certificates
 Meezan Providence Certificate

The cash department is the most important department of the bank. It receives cash from
customers and then deposits it into the accounts of the customers and maintained their
balances. This is the most important and critical department in a Bank. There are two
basic functions performed by the cash department. These are


An individual who has account in the Bank can deposit money in his account. For deposit
of the money the individual has to fill the deposit slip in which the account holder writes
his name, Account number, amount of the money both in figures and in words.

After filling the deposit slip the Cash amount along with the deposit slip is submitted
with the cashier. The cashier collects the cash and counts it and after verification the
cashier stamps the deposit slip. One part of the deposit slip is given back to the customer
and the other part of the deposit slip remains with the bank for the record purposes
The cashier also record the deposits made by the customers in credit sheets daily. The
deposits of all customers of the bank are controlled by mean of ledger account. Every
customer has its own ledger account and has separate ledger cards in which his / her total
record is kept.

Bill collection is also one of the main functions of bank. Cashier has to prepare a list of
bills’ serial number, a copy of which is to be sent to the corresponding organization.


The procedure of clearance of a cheque or payments is as following. First of all the

customer presents his cheque to the cashier. The cashier records the account number and
the amount, which is to be drawn. Then the cashier check the cheque number in the
computer for the verification whether the account holder has such amount in his account
which he is demanding or not. If the computer passes the cheque, the Passing officer
signs the cheque and sent it to the cash counter then cashier pays the written amount to
the customer and then in the end cashier records the amount paid in computer.

3.4.3 In cash department following books are maintained.

 Scroll book
 Paying book
 Cash balance book

When cash is received at the customer it is recorded in the scroll book.


The cashier makes entry in the paying cashbook when cash is paid.


The consolidated figure of receipt and payment of cash is entered in cash balance book.


The basis function of the bank is to accept deposit and lend money to the borrowers
against a spread so to be able to give some profit to the depositors as well as to earn profit
for the bank. The main function of the credit department is to lend money to the
customer. MBL lends money in the form of clean advances against promissory notes as
well as secured advances against tangible and marketable securities.

Islamic Financing for the following:

 Corporate
 Personal

3.5.1 Type of customer and products offered by MEEZAN BANK LIMITED

Consumer finance

• Easy Home (housing finance)

• Car Ijara (auto finance)

Corporate Banking

• Working Capital Finance

• Project Financing for existing Corporate having expansion or BMR
• Islamic Export Refinance Facility (Part I and Part II)
• Trade Related Services

Commercial Banking

• Working Capital Finance

• Project Financing, Expansion or BMR Requirements
• Islamic Export Refinance Facility
• Trade Related Services

SME Banking

• Working Capital Finance

• Project Financing, Expansion or BMR Requirments
• Islamic Export Refinance Facility
• Trade Related Services
Investment banking

• Syndications & Structured Finance

• Project Financing
• Financial Advisory Services


The account dealing with the foreign currency is called foreign currency account. Meezan
home Remittance provides Quick Remittance in major currencies i.e.

• Euro


3.6.1 Product of MBL for foreign currency

• Riba Free Dollar Savings Account

• Foreign Currency Account
• Meezan visa dibit card
• Dollar Mudarabah Certificates

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 credited to your account every month.If any person wants to import goods from
foreign, an account is required and for international trading the FC is needed. MBL
provide foreign currency on Pak rupee at booking rate and the central office sent Rates
In foreign currency department the remittance is sent through Foreign Telegraphic
Transfer. The account holder can sent the amount in foreign bank account. If any
transaction is made the daily report is given to the central office Karachi daily.

Different accounts can be open like joint account or company account. The thankful letter
is sent for opening the foreign currency account to account holder and introducer. When
any transaction is made the bank inform stock exchange daily. The foreign currency note
is counted and recorded in the cash memo book. The people in the foreign country sent
the amount through S.W.I.F.T. Weekly and monthly report of all the transaction is given
to the stock exchange. Cheque book is also issued to the account holder & the foreign
currency Account number is given to him. In this FBC & FBR is done. Debit Credit
Voucher is used. The charges are deducted while closing the foreign currency account.
And the cheque book is return while closing the account.

The branch sent excess foreign currency to its main branch. If any branch needs foreign
exchange they sent to this branch.
Chapter – 4



The letter and spirit of Islamic Banking rest upon absolute adherence to the Shariah. The
foundations of a strong Shariah underpinning at Meezan Bank were laid from the
beginning. A world renowned Shariah Supervisory Board and a highly qualified and
experienced in house Shariah Advisor are fundamental aspects of the Bank's core USP.
The primary role of this board is to maintain and further strengthen this commitment and
to ensure strict Shariah compliance in all the Bank's operations. 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.

The members of the Board are:

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

• Dr. Abdul Sattar Abu Ghuddah

• Sheikh Essam M. Ishaq

• Dr. Muhammad Imran Ashraf Usmani (Advisor)


The Board of Directors of Meezan Bank are:

• H. E. Sheikh Ebrahim Bin Khalifa Al-Khalifa (Chairman)(Minister of

Housing, Ministry of Housing, Kingdom of Bahrain)

• Mr. Naser Abdul Mohsen Al-Marri (Vice Chairman)

• Mr. Jassar Dakheel Al-Jassar

• Mr. Rana Ahmed Humayun

• Mr. Mohammed Azzaroog Rajab

• Mr. Ahmed Abdul Rahim Mohamed

• Mr. Nawal Ahmed

• Mr. Alaa A. Al-Sarawi

• Mr. Mian Muhammad Younis

• Mr. Irfan Siddiqui (President & Chief Executive Officer)

• Mr. Ariful Islam (Chief Operating Officer)


Share Holders Rs. in million %

Noor Financial Investment

3,429 49.11
Company, Kuwait

Pakistan Kuwait Investment

2,095 30.00
Company (Pvt.) Limited
Islamic Development Bank, Jeddah 651 9.32

Others 808 11.57

Paid up Capital 6,983 100 %


Meezan Bank is managed by a team of professional bankers committed to the cause of

Islamic Banking. This single unifying factor unleashes the tremendous power of a
dedicated and motivated team committed to fulfilling the Vision and Mission of this

The business segments of the Bank are:

• Corporate Banking

• Investment Banking

• Commercial Banking and SME

• Consumer Banking

• Treasury & Financial Institutions

• Asset Management (managed through a subsidiary Al Meezan Investment

Management Limited.)

• Retail Banking is organized in seven regions across Pakistan, namely South-I

Region, South-II Region, South-III Region, Lahore Region, Faisalabad

Region, Multan Region, and North Region.

Chapter – 5



Chapter – I

Introduction to

Meezan bank personal banking provides the following products and services.


A variety of shariah compliant Rupee and Dollar accounts, with an opportunity to earn a
high rate of return in the form of halal profits. Account holders may avail numerous
special banking services including an exclusive 8am to 8 pm branch banking service,
Debit card facility, access to ATMs nationwide and account accessibility through
numerous alternate distribution channels including Internet Banking and Phone banking


Meezan Bank is pleased to offer Riba-Free Current Account, a flexible Rupee based
account that is ideal for individuals and businesses looking for Shariah compliant banking
and professionalism both under one roof.
The Meezan Bank Current Account, is a comprehensive Halal method of acquiring a
secure and easily maintainable Riba Free bank account.

Bundled with 24/7 and special banking services, the Meezan Bank Current Account is an
innovative value added account which provides customers both ease of utility and
unmatched service quality.

Key features of the Riba -Free Current Account

• Instant access to funds at any online branch
• Free Real-time Online Banking Services across our branch network
• Visa Debit Card
• Free 24/7 Internet Banking
• No restriction on withdrawals or number of transactions
• No deduction on low balance maintained
• Bank balance certificates & duplicate statements of account
• SMS Alerts service
• Stop Payment & Hold Mail instructions
• 24/7 Call Center with complete Phone-banking services
• Personal financial consultancy services
• Specialized 8 to 8 Banking at selected branches

2. RUPEE SAVING ACCOUNT (Monthly Profit Payment)

A unique bank account that offers the opportunity to earn Halal profits, while enjoying a
range of added benefits. It can be opened with a minimum amount of only Rs.10,000.
The profit on this account is calculated and paid on a monthly basis, and comes with a
variety of free benefits, no restrictions on transactions, priority banking and more.

• Minimum amount required to open an account is Rs. 10,000

• Riba Free COII Holders may open accounts without any minimum balance

Riba Free Rupee Saving Account works under the principles of Mudarabah and is strictly
in conformity with the rules of Islamic Shariah. Profit calculation and all banking
transactions are in strict adherence to the Islamic Shariah, monitored by our Shariah
Advisor and the Shariah Supervisory Board

Key features
Apart from first class service and personalized attention that our customers get when they
bank with us, we offer the following additional conveniences:
• Profit will be calculated on daily product basis
• Distribution of profit on monthly basis
• Instant access to funds at any online branch
• Free Online Banking services at all Meezan Bank branches nationwide
• No restriction on withdrawals or number of transactions
• Bank balance certificates & duplicate statements of account
• Stop Payment & Hold Mail instructions
• Visa Debit Card
• 24/7 Call Center with complete Phone-banking services
• Personal financial consultancy services
• Specialized 8 to 8 Banking at selected branches

3. DOLLAR SAVING ACCOUNT (Foreign Currency based Investment

Meezan Bank is pleased to offer Riba-Free Dollar Saving Account, a foreign-currency
based investment opportunity that is set up on the principles of Shariah and as a result is
free from the element of interest.
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 credited to your account every month.

Additional Features
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:
• Monthly profit payment
• No restriction on withdrawals or number of transactions.
• 24/7 Call Center with complete Phone-banking services
• Taking stop payment instructions
• Taking hold mail instructions
• Issuance of duplicate statement of account
• Personal financial consultancy services

4. MEEZAN BACHAT ACCOUNT (High expected Rate of Return)

Meezan Bachat Account is a unique saving account that provides high monthly returns
with the flexibility to withdraw savings if needed. Thus Meezan Bachat Account offers a
higher expected rate of return with the convenience of a savings account.
With a Meezan Bachat Account, you are entitled for a higher the profit with a higher
account balance. You receive profit even if your balance falls below Rs. 25,000/- in any
month. Profit is credited to your account every month and is calculated with reference to
the minimum balance maintained in the account during the preceding month.
The Riba-Free Meezan Bachat Account works under the principles of Mudarabah and is
strictly in conformity with the rules of Islamic Shariah. Profit calculation and all banking
transactions are in strict adherence to the Islamic Shariah, monitored by our Shariah
Advisor and the Shariah Supervisory Board.

Key Features
Enjoy a range of valuable features including:
• Halal & High Competitive returns
• Profit payment on monthly basis open for individuals only
• Minimum balance for account opening is just Rs.25,000/-
• Maximum balance limit for getting highest profit rate is Rs. 1,000,000/-
• Waiver of application fee for Car Ijarah & Easy Home for accounts with
minimum balance of Rs. 500,000
• Free Realtime Online Banking services at all Meezan Bank branches
• Free bank balance certificates
• Visa Debit Card
• 24/7 Call Center with complete Phone-banking services
• 24/7 Internet Banking – free and instant access to your account(s) anytime &
• Personal financial consultancy services.
• Specialized 8 to 8 Banking at selected branches

5. KAROBARI MUNAFA ACCOUNT (For large Corporate Entities)

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. It has no preset transaction limits and comes with a variety of free packaged

Key Features
• Profit will be calculated on a Daily Product Basis
• Minimum balance requirement for account opening is Rs. 1 Million
• No restriction on deposits and withdrawals
• Free facilities: chequebooks and payorders
• Dedicated account / relationship manager
The Karobari Munafa Account works under the principles of Mudarabah and is strictly in
conformity with the rules of Islamic Shariah. Profit calculation and all banking
transactions are in strict adherence to the Islamic Shariah, monitored by our Shariah
Advisor and the Shariah Supervisory Board


Labbaik Saving Aasaan is ideal for you if you are a small saver and wish to save for your
spouse, children, parents etc. You can take benefit from this special Mudarabah based
Deposit account (available from 6 months to 20 year plans) for Umrah & Hajj where you
will also be entitled for profit on the deposited amount thus providing you a bigger
incentive to save for Umrah/Hajj through Labbaik Saving Aasaan.
Our dedicated branch staff will guide you for the expected Hajj/Umrah package prices for
the specific year in which you wish to undertake the Holy journey and set the monthly
deposit amount as per plan. Once the deposited amount reaches the package price you
can fulfill your objective of performing Umrah/Hajj.
The Labbaik Saving Aasaan Account is a non-checking account i.e. no cheque book or
ATM card will be issued to you, however you shall have the option to withdraw from the
scheme any time by closing your Labbaik Saving Aasaan Account.

Use our calculators to calculate your flexible payment plan

• Hajj Saving Aasaan Calculator
• Umrah Saving Aasaan Calculator

How it works
On agreeing to become a Labbaik Saving Aasaan Account holder, you will enter into the
relationship of Mudarabah with the Bank. Under this relationship, you will be the
Investor (or Rab-ul- Maal) and the Bank will be the Manager (or Mudarib) of the funds
deposited by you in the Deposit pool. These funds will be utilized by the Bank to provide
financing to Customers under the Islamic modes, including but not limited to Murabaha,
Ijarah, Istina and Diminishing Musharakah.
The Bank will calculate the profit of the deposit pool every month and income will be
shared between the Bank and the Customers on a Gross Income level, based on the pre
agreed profit sharing ratios announced at the beginning of the period. The profit sharing
ratios are available here or can also be requested from the branches. The profit will be
distributed among the Labbaik Saving Aasaan Account holder as per the profit sharing
Weightages announced at the beginning of the month. Accordingly your account will be
credited with the proportionate profit amount.
In case of any loss, as per the rules of Mudarabah, the Rab-ul-Maal shall bear the loss in
the ratio of their investment.

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
• Sole Proprietorships
• Partnerships
• Limited Companies

Key features
• 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

Meezan Bank provides a complete range of term certificates. From short term to long
term with intermittent exchange in a range of currencies, the product menu is at once
robust and dynamic. Our range of term deposit products include:


The Riba Free Certificate of Islamic Investment is a Shariah compliant investment

certificate with a minimum investment of Rs. 50,000 and offering tenures from 3 months
to 5 years. Profit on investment may be earned on the following basis:

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

• Quarterly profit on 1, 2, 3 and 5 years
• At maturity profit payment for all tenures

Riba-Free Certificate of Islamic Investment (COII) works under the principles of

Mudarabah and is strictly in conformity with the rules of Islamic Shariah. Profit
calculation and all banking transactions are in strict adherence to the Islamic Shariah,
monitored by our Shariah Advisor and the Shariah Supervisory Board.

Enjoy a range of valuable features including:

• Halal and high competitive returns
• Pre-mature withdrawal options available
• Free Online Banking services at any of our branches
• 24/7 Call Center with complete Phone-banking services
• Specialized 8 to 8 Banking at selected branches

The Riba-Free Meezan Aamdan Certificate (MAC) is a long-term deposit certificate with
an exceptionally high monthly profit designed especially for those individuals and
corporations who are in need of regular stream of monthly income. MAC is a monthly
income (mahana aamdani) certificate with a variety of free packaged benefits.
The certificate under the principles of Mudarabah, is strictly in conformity with the rules
of Islamic Shariah. Profit calculation and all banking transactions are in strict adherence
to the Islamic Shariah, monitored by our Shariah Advisor and the Shariah Supervisory

Key Features

Enjoy a range of valuable features including:

• Halal high competitive returns
• Minimum investment amount: Rs. 100,000/-
• Special attraction for Widows and Senior citizens with minimum investment of
PKR 50,000/-
• Available tenures of 5½ years and 7 years
• Profit payment on monthly basis.
• Pre-mature withdrawal options available as per approved schedule
• Free cheque book
• Free ATM withdrawals (unlimited transactions per month) from Meezan Bank
ATM outlet nationwide network
• Free Online Banking services at all Meezan Bank branches nationwide
• Free Internet banking facility
• 24/7 Call Center with complete Tele-banking services
• Specialized 8 to 8 Banking at selected branches

Meezan Providence Certificate is a long-term investment certificate specially designed to

cater to the needs of corporate and business concerns for purposes of investing their
Provident, Pension and Gratuity Funds.

As any prudent investor, your main concerns would be total security along with the best
returns possible, especially as these funds are a trust from your 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, a
long-term entity rating of A+, and a short-term entity rating of A1. Furthermore, our
sterling track record shows consistently beneficial and highly competitive returns for our
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.
Riba-Free Meezan Providence Certificate (MPC) works under the principles of
Mudarabah and is strictly in conformity with the rules of Islamic Shariah. Profit
calculation and all banking transactions are in strict adherence to the Islamic Shariah,
monitored by our Shariah Advisor and the Shariah Supervisory Board.

Key Features

Enjoy a range of valuable features including:

• A 100% halal investment in strict compliance with Shariah
• High Returns
• Long-term security ensured
• Minimum investment amount: PKR 1,000,000
• Available tenures of 2, 3, 5 and 7 years
• Pre-mature withdrawal options available

Eligibility Criteria
Investing is simple and easy, as all you need is:
• To have a registered or unregistered Employee Provident/Gratuity/Pension Fund.
• Have operations based in Pakistan.

Riba Free Monthly Mudarabah Certificates is a flexible rupee based investment which
has been designed to give you a monthly return. The minimum investment required is
only Rs. 100,000 and you receive profit for each complete month of investment with the
The Monthly Mudarabah Certificate works under the principles of Mudarabah and in
strict conformity with the rules of Islamic Shariah, the Profit calculation of Monthly
Mudarabah Certificates and all other banking transactions are in strict adherence to the
Islamic Shariah, monitored by our Shariah Advisor and the Shariah Supervisory Board.

Key Features
During your relationship with us, you would be entitled to receive the following
additional benefits.

• A 100% halal investment in strict compliance with Shariah

• Monthly profit payment to your current or saving account with us
• Pre-mature withdrawal option available as per approved schedule (applicable to
all certificates)
• Bank balance certificates
• Free Online Banking services at all Meezan Bank branches
• 24/7 Call Center with complete Phone-banking services
• Personal financial consultancy services
• Specialized 8 to 8 Banking and Ladies Banking at selected branches

The Riba-Free Dollar Mudarabah Certificate (DMC) is a flexible investment product

which has been designed to give you profit payment options at monthly, quarterly and
maturity. DMC works under the principles of Mudarabah and is strictly in conformity
with the rules of Islamic Shariah.
On agreeing to become a DMC 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

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.Certificate works under the principles of Mudarabah and is strictly in
conformity with the rules of Islamic Shariah. Profit calculation and all banking
transactions are in strict adherence to the Islamic Shariah, monitored by our Shariah
Advisor and the Shariah Supervisory Board.

Key Features

Enjoy a range of valuable features including:

• Halal competitive returns
• Minimum investment amount: USD 10,000/-
• Available tenures of 3 months, 6 months, 1 year, and 3 years
• Profit payment option at maturity and six monthly basis
• Pre-mature withdrawal options available as per approved schedule
• Bank balance certificates
• Access to priority desk.
• Personal financial consultancy services
• 24/7 Call Center with complete phone banking services
• 8am to 8pm Banking and Ladies Banking at selected branches

Meezan bank consumer financing, provides Shariah Compliant financing solutions for

1. Car Ijarah (Auto Financing)

As a step towards Meezan Bank’s mission to provide a one-stop shop for innovative
value added Shariah compliant products, Meezan Bank’s Car Ijarah unit provides a car
financing, based on the principles of Ijarah and is free of the element of interest.

Car Ijarah is Pakistan’s first Interest Free car financing based on the Islamic financing
mode of Ijarah (Islamic leasing). This product is ideal for individuals looking for car
financing while avoiding an interest-based transaction.

Meezan Bank’ Car Ijarah is a car rental agreement, under which the Bank purchases the
car and rents it out to the customer for a period of 3 to 5 years, agreed at the time of the
contract. Upon completion of the lease period the customer gets ownership of the car
against his initial security deposit.
Car Ijarah also features Used Vehicles!

In addition to our leasing of new cars, Meezan Bank also provides the unique opportunity
of leasing second hand, both locally assembled and imported vehicles. This feature is
specifically designed as a highly economical option. The Used Car Ijarah facility is made
available at a minimum-security deposit as low as 20%. Financing of used cars are
subject to a selection criteria.

Key Features of Car Ijarah

• Low monthly rental
• Rental paid after delivery, not in advanced
• Fastest processing and delivery
• Tracker option available
• Minimum security deposit as low as 10%*
• All new, used, local, imported and luxury vehicles can be financed

2. EASY HOME (Housing finance)

Easy Home is Pakistan’s first totally Shariah-compliant Home Finance facility! One that
is comprehensive, affordable, and totally hassle-free. For at Meezan Bank, we are
committed to meeting our customers’ needs, in a truly Shariah-compliant manner coupled
with dedicated service excellence.

With Easy Home you participate with Meezan Bank in a joint ownership of your
property, where the Bank will provide a certain amount of financing (usually up to 80%).
You agree to a monthly payment to the bank of which a component is for the use of the
home, and another for your equity share. In fact, the total monthly payment is reduced
regularly as your share in the property grows. When you have made the full investment,
which had been agreed upon, you become the sole owner with a free and clear title to the

What specifically makes Easy Home Shariah compliant?

As a Diminishing Musharakah it conforms to Shariah laws specifically related to
financing, ownership and trade. Taking ownership through a partnership and then
transferring complete ownership to the consumer instead of simply lending money is the
major factor that makes our product Shariah compliant. The nature of the contract is a co-
ownership and not a loan because the transaction is not based on the lending and
borrowing of money but on the joint ownership of an asset. Meezan Bank shares in the
cost of the asset being purchased, for example in the case of buying a home. In
conventional mortgages the interest charged is a mark-up on the money lent. The profit
charged by Meezan Bank is the utilization payment for your use of our share throughout
the life of the contract. Your payments to Meezan Bank are completely riba-free.

Why is the profit margin charged by Meezan Bank correlated to the conventional
mortgage market trends?
At Meezan Bank, the profit margin is directly correlated to market trends to provide a
competitive product to our customers. Shariah allows the use of any conventional market
factor as a benchmark to determine the profit rate of a particular product. The mere fact
that the applied profit rate of our product is based on similar factors used in determining
the applied rate of interest of a mortgage does not render the transaction or the contract
invalid from the Shariah perspective, and neither does it make the transaction an interest-
bearing one. On the other hand, it is the underlying structure of the product that
determines its Shariah compliance.

Payment Plan

Step-up Model
The Step-up Payment plan is introduced for customers who intend to avail maximum
financing facility with lower installments. The step up model is based on Shariah
Compliant structure of Diminishing Musharakah. In this model, the bank’s share s
divided into more Musharakah units and in the initial half of the facility tenure, the
customer purchases one Musharakah unit from bank every month and in the later half of
the facility tenure, the customer purchases two Musharakah units from bank every month.
Thus the monthly installment during initial years is comparatively lower which is easily
affordable. This model is a Shariah Compliant Alternative available to the customers who
wish to avail maximum financing facility from bank.

UMI Model
Easy Home is structured under the concept of diminishing Musharakah where Meezan
Bank and Customer enter into a Musharakah Agreement whereby both the parties provide
their investments to be utilized for the purposes of purchase/construct/renovate the
property. The Joint ownership is created in the property between Bank & customer by
virtue of the Musharakah agreement. (This is based on the principle of Shirkat ul Milk)
Bank’s share is divided into units and is given to the client on rent and Client promises to
purchase Bank’s share (units) over the tenure of transaction Client purchases the units
every month and will eventually become the owner of the property. Rental amount is
adjusted according to the bank’s share (units) remaining in the property. In UMI , the
Musharakah unit price remains constant through out the financing period.

Buy, Build, Renovate, or Replace!

• Buying a Home is Easy & Halal!
Choose it and be ready to move in. Meezan Bank will finance up to maximum
of 70%(Salaried, SEP, NRP) of the appraised value of your new home or up to
a value of Rs. 40 million, and a maximum of 60%(Businessman) up to a value
of Rs 5 Million with a financing tenor of up to 20 years. Click here for details
• Building a home is Easy & Halal!
For that special home you want to build yourself. Meezan Bank provides
financing up to 70%(salaried, SEP, and NRP) of the appraised value or Rs. 40
million, and a maximum of 60%(Businessman) up to a value of Rs 5 Million
for a tenor of up to 20 years. Click here for details
• Renovating your home is Easy & Halal!
Making your home even better or just repairing it. Meezan Bank helps with
financing up to 30% and a financing tenor of up to 15 years. Click here for
• Replacing your existing Mortgage is Easy & Halal!
The wait is over. Now continue to enjoy your home but with the added
satisfaction and peace of mind you have always wanted. Meezan Bank will
help you switch your existing liability over to us and let you enjoy the benefits
of Halal and totally flexible financing. Financing up to Rs. 40 million(Salaried,
SEP, NRP) and Rs 5 million(Businessman) and a tenor of up to 20 years. Click
here for details
5.1.4 24/7 BANKING

24/7 Banking provides non stop banking convenience, twenty four hours a day, seven
days a week. These services provide account access to you from any location within
Pakistan and abroad (via Internet Banking), even on holidays.
You can stay in touch with your account via the following services

1. 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, more convenient than queuing
for a cash dispenser and safer than carrying money.

Features at a Glance
• Use your own money at more than 30 million outlets and 160 countries
• 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.
• You can call support 24 hours a day, 7 days a week with any queries. Simply call
• All shopping transactions on your card are signature based. Simply swipe and
• Your perfect travel companion
• Next time you’re planning to go abroad, you can use your 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.

2. 24/7 Debit Card (No Longer Issued)

Accepted at most prominent outlets across Pakistan, the Meezan Bank Debit Card offers
you safety, convenience and control on spending 24 hours a day, seven days a week.
Unlike credit cards, there are no monthly bills, no service charges and no late payment
fees as it works on "Buy Now, Pay Now" principle.

• The purchase limit on your Debit Card is PKR 50,000 per day, subject to
sufficient funds being in your selected account to cover your transaction.
• Never tell your 4-digit PIN CODE to the merchant, always enter it yourself.
• At merchant outlets, make sure that your ATM / Debit card is swiped only ONCE,
in your presence, and on an Orix machine.

3. Internet Banking

Meezan Internet Banking is the smarter way to bank, providing you global access to your
account 24 hours a day, 7 days a week. 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 payorder request
• Lodging and tracking status of complaints
• Account activity alerts

To utilize the Meezan Bank internet banking facilities, simply follow the two-step
registration process by filling in the online registration form and submitting a hardcopy of
the same as an indemnity form at your branch.
4. ATM Network

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.

• Transfer funds between your own accounts in the same branch via ATM.
• The cash withdrawal limit for Meezan Visa Debit Card per day subject to the
funds present in your selected account.
• You can withdraw cash from any other bank’s ATM which is the member of
either MNET or 1Link network

• 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
• If using any non-Meezan ATM, the cash with drawl 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 with drawl.
5. SMS Alerts

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 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).

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).
• Low Balance: An instant SMS alert is sent to inform you that your account(s) has
gone below the predefined low balance amount.
• Cheque Bounce: An instant SMS alert to inform you that your cheque has been

Applying for SMS Alert Service

Please visit any Meezan Bank branch and submit your completed SMS Alert Registration
form (available at all branches). You will receive the SMS Activation alert within three
days of submission, acknowledging that you have successfully registered for the service.

• 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

6. 24/7 Call Center

With our Call Centre facility, you no longer have to take time out to visit your branch for
your everyday banking needs. By simply dialing 111-331-331 (dial 00-92-21-111-331-
331 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.


Available at selected branches, Meezan Bank's Special Banking services is part of our
mission to focus on customer convenience and service quality and make Islamic Banking
the banking of First Choice.

Special Banking services include:

1. 8 to 8 Banking (8 am - 8 pm banking)
Meezan Bank is proud to be the first bank in Pakistan to introduce the concept of Eight to
Eight banking, giving our customers access to the branch from 8 'o clock in the morning
to 8 'o clock at night.
This adds a completely new dimension to our banking service and has been designed so
as to enable our customers to do banking at their convenience. Customers may visit their
respective branch early in the morning before going to work, or can drop by in the
evening on their way home and not have to worry about losing valuable office hours.
From 8am till 5pm we offer the full range of our banking services. After 5pm and until
8pm our customers are able to carry out the numerous transactions (value next day)
which meet most of their daily requirements.

Services provided from 8am to 8pm

• 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

Our 8 to 8 banking service is only a part of Meezan Banks mission to focus on customer
convenience and service quality and make Islamic Banking the banking of First Choice.
This service is presently being offered at select branches in Karachi, Lahore, Islamabad
and Faisalabad and will be offered at some of our other branches very soon. Insha'Allah.

2. Ladies Banking

The Bank is the first in the country to introduce 'Ladies Banking' a dedicated banking
section only for ladies. This new service provides an exclusive banking area as per the set
Shariah principles for our lady customers in a more comfortable environment.
The dedicated Customer Services Officer in our ladies only banking area will provide
consultancy for a full range of our Halal banking services including, 9am to 5pm Online
Banking, Term Certificates, Current & Saving Accounts, Consumer Financing and 24/7
banking services.

Services provided at the Ladies Banking Section include:

• Special Baking Services: Dedicated Customer Services Officer in our ladies only
banking area who provide consultancy for all Halal banking needs.
• Consumer Financing: Car Ijarah and Easy Home
• Retail Banking: Current & Savings Accounts, Foreign Currency Accounts, Term
• 24/7 Banking Services: ATM/Debit Card, Call Center, Internet Banking

Our ladies banking service is a part of Meezan Banks mission to focus on customer
convenience and service quality and make Islamic Banking the banking of First Choice.
This service is presently being offered at Barkat-e-Hyderi branch in Karachi, and will be
offered at some of our other branches very soon. Insha'Allah.


Welcome to Meezan Bank’s Non-Resident Pakistani Banking! Where you are important
and your needs exclusive. Our Remittance services are simple and reliable. They are
available at your doorstep through a wide and efficient networfk of corresponding banks
worldwide. Only leading global financial institutions form this network of correspondent

Advantages of Meezan Home Remittance:

• Quick Remittance in major currencies i.e USD, GBP, EUR, JPY, CHF, SGD,
• Extensive branch network in all major cities of Pakistan
• Instant online transfer within our branch network without any charges
• Free Internet banking facility


1. Corporate Banking

We are dedicated to providing you Shariah-Compliant financing. With our extensive and
dynamic product portfolio, we are continuously working not only to improve and
strengthen our customer relationships but to further provide new and better products and
services to our customers.
At present, Corporate Banking has a large number of multinational and local clients
representing various sectors of the economy. Client relationships are handled by
dedicated Relationship Managers and fully supported by our Branch staff to provide high
quality service at competitive and market driven pricing.

We could extend financing to cater to your business needs in the following areas:

• Working Capital Finance

• Project Financing for existing Corporates having expansion or BMR requirements
• Islamic Export Refinance Facility (Part I and Part II)
• Trade Related Services

Corporate Banking Customers

You are a Corporate Banking Customer if
• Your annual sales turnover is Rs. 800 million or more
• You need funded and non-funded lines of over Rs. 150 million
• You have a successful business trade record for a minumum period of 3 years,
backed by audited financials

2. Commercial Banking

As the first and largest Islamic Bank in Pakistan, we recognize the significance of the
Commercial Banking sector in the country and the diverse business needs. Catering to the
need for Shariah Compliant financial solutions in this sector, our evergrowing
commercial banking clientele covers medium-size industries, traders, importers,
exporters and distributors.

The range of product is:

• Working Capital Finance
• Project Financing, Expansion or BMR Requirments
• Islamic Export Refinance Facility
• Trade Related Services

Commercial Banking Customers

You are a Commercial Banking Customer if:
• Your annual sales turnover is between Rs. 300 million to Rs. 800 million
• You need funded and non-funded lines of upton Rs. 150 million

3. SME Banking

As the first and largest Islamic Bank in Pakistan, we are proud to be providing financial
solutions for the needs of the Small and Medium Enterprise Sector (SME) in the country.
SMEs are categorized in Pakistan as Trading and Service concerns employing maximum
50 staff and having total assets (excluding land and building) of Rs. 50 million (max) and
the Manufacturing concerns employing maximum 250 staff and having total assets
(excluding land and building) of Rs.100 Million (max). The growth in the SME sector in
Pakistan in recent years has been a major contributor to the growth in the national
economy. Meezan Bank is committed towards developing tailored financial solutions and
expanding our footprint in the SME sector.

The ranges of products are:

• Working Capital Finance

• Project Financing, Expansion or BMR Requirments
• Islamic Export Refinance Facility
• Trade Related Services

Small & Medium Enterprise (SME)

You are a SME Banking Customer if:

• Your annual sales turnover is upto Rs. 300 million
• You need funded and non-funded lines of upto Rs. 75 million


Realizing the increasingly diverse needs of our customers for advisory and structured
finance transactions, a specialized department focusing on Investment Banking is
funtioning at Meezan Bank. The Investment Banking department provides unique
structuring by using complex Shariah structures for transactions so as to meet customer's
commercial needs. Meezan Bank as torchbearer of Islamic Banking has been making
significant contribution in the Investment Banking industry by playing leading roles in
business transactions.

Key Services
• Syndications & Structured Finance
• Project Financing
• Financial Advisory Services
Al Meezan Investment Management Limited (Al Meezan), the asset management and
investment advisory arm of Meezan Bank Limited, specializes in the development and
management of Shariah compliant investment solutions. Al Meezan Investments has one
of the longest and the most successful track record of managing mutual funds in the
private sector, spanning over fourteen years.

Al Meezan is presently managing eight funds and an administrative plan i.e. Al Meezan
Mutual Fund Limited (AMMF) - a closed end equity fund; Meezan Islamic Fund (MIF) -
an open-end equity fund; Meezan Balanced Fund (MBF) - a closed end balanced scheme;
Meezan Islamic Income Fund (MIIF) - Pakistan’s first Shariah compliant open end
income fund - Meezan Tahaffuz Pension Fund (MTPF) - a Voluntary Pension Scheme,
Meezan Capital Protected Fund-I (MCPF-I) - Pakistan’s first Shariah compliant open end
capital protected fund, Meezan Mahana Kharch Account (MMKA) - an administrative
plan of MIIF to provide monthly income, Meezan Cash Fund (MCF) - Pakistan’s first
Shariah compliant open end money market fund and Meezan Sovereign Fund (MSF) -
Pakistan’s first Shariah compliant open end government securities fund.

The total size of these eight funds under management as at March 31, 2010 is over PKR
18.2 billion as compared to PKR 13.5 billion at the corresponding date last year. The
increasing size of assets under management manifests the ability of the professional fund
management team to consistently out-perform the peers and consequently build upon the
investor confidence.

Al Meezan is ranked among the best performing asset management companies in

Pakistan. The fund wise break up of net assets as at March 31, 2010 is as under:

PKR (Millions)
March 31, 2010
Meezan Cash Fund 4,633
Meezan Islamic Fund 4,436
Meezan Islamic Income Fund 3,738
Al Meezan Mutual Fund 1,521
Meezan Balanced Fund 1,319
Meezan Capital Protected Fund-I 633
Meezan Sovereign Fund 536
Meezan Tahaffuz Pension Fund 246

Al Meezan has also achieved Management Quality Rating “AM2”, assigned by JCR-VIS.
AM2 is currently the highest Management Quality Rating assigned by JCR-VIS to any
Asset Management Company. This rating denotes high management quality rating with a
stable outlook. Al Meezan’s funds carrying equity exposures including Meezan Islamic
Fund and Al Meezan Mutual Fund have befen amongst the top performing funds in their
respective categories for the calendar year 2009.

The Shariah Advisor of Meezan Bank Limited, also being the Shariah Advisor of Al
Meezan, supervises the operations in order to ensure Shariah compliance of the funds. In
addition to the service quality, Shariah compliance and impressive performance in terms
of returns to investors, Al Meezan also complies with the global best practices in asset
management and has voluntarily adopted “Asset Manager Code of Professional Conduct”
from CFA Institute, USA. Hence it has the distinction of being the first asset management
company in Pakistan to comply with the global best practices in asset management.

Units of all open end funds are available at the offices of Al Meezan and all branches of
Meezan Bank Limited (MBL) across Pakistan. For the convenience of investors, Al
Meezan has placed dedicated investment officers at the selected branches of MBL. These
officers provide guidance and assist the investors in meeting their investment objectives.


Meezan Bank has extensive experience and expertise in developing and advising on the
creation of Shariah-compliant financial products and services. The main objective of
Meezan Bank’s Islamic Financial Advisory function is to assist Financial Institutions
develop Islamic banking alternatives by sharing our expertise, research and success
stories. This function works under the guidance of Shariah Supervisory Board which
comprises of renowned Islamic Scholars from both Pakistan and abroad. This function
primarily focuses on the following:

• Product Development and Product Refinement

• Islamic Capital Market Advisory Services

• Establishing and Managing Islamic Market Indices

• Advisory Services to Start-up Firms

• Shariah-Compliant Corporate Restructuring

• Internal and External Training Sessions

• Shariah Audit, Compliance & Strengthening Internal Controls

Shar’iah Screening Criteria

For any stock to be Shar’iah compliant, it must meet all six key criteria as below.

1. Business of the Investee Company

2. Interest Bearing Debt to Total Assets
3. Non-Compliant Investments to Total Assets
4. Non-complaint Income to Total revenue
5. Illiquid Assets to Total Assets
6. Net Liquid Assets/Share Vs Market Price/Share
Chapter – 6

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.


• 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 54

• 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.

• 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 it.
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 bossiness 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.


• 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 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

• There are no sorts of training programmes 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.


• House financing sector can be targeted to maximize the profit.

• Growing demand of Islamic financial product and services.

• Venturing into Islamic groups out side 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
• Increase branch network within the country.


• Right now there are a few banks that are providing islamic banking services in
addition to the Meezan Bank. These banks include Bank Islami, 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 may
enter 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
Chapter – 7



Despite the difficult economic conditions, Meezan Bank has achieved, Alhamdolillah, excellent
results. Several historic milestones have been achieved in 2009:

Chapter – 8



I spent six weeks of my internship in MBL main sadder Hyderabad Branch. During these
six weeks, I felt myself to be a part of bank. Even, this was my first experience of
working in a bank, but I learned a lot from this experience. Based on my experience &
observation regarding the operations and policies of Meezan Bank, I have tried to show
some problems and recommendations for further improvement.

1. The employee turnover is very high which they have to cut down as they are
losing a number of good trained employees due to its poor policy.
2. The year 2010 is expected to offer increased competition in the secured assets
business as more Islamic banks are in the market.
3. Lack of awareness of Islamic banking in general public.
4. The employees usually face work over loaded problems.
5. Lack of job training program for employees.
6. Branches increases but business of Meezan bank may not increase with same
7. Financial information of Meezan bank are not clearly disclose on any media.
8. Work activities among employees were not distributed equally. Some of the
employees are overburdened while some sections are overstaffed.
9. Lack of job rotation that is one of the ways to increase employee job skills.
10. Meezan bank does not provide job security to the employees. Mostly are hired on
contractual basis
11. Congested waiting room for customers.
12. Lack of market (competitors) research.
13. Lack of team work.
14. Lack of new and attractive schemes.
15. Non effective marketing strategy.

1. First of all, I would I like to suggest that the bank must pursue a very aggressive
marketing and advertising strategy so that it can create awareness in the general
public about its Islamic products and services
2. Secondly, there is a need for creating satisfaction among employees. They do not
feel any attachment to the organization. There is a requirement for building up
their loyalties so that the bank can curtail the dissatisfaction and turnover among
3. The personnel in the bank should not be overstressed with workload. The
workload is of a destructive level. At that level of load the employees loose all the
comfort in their work and remain tense and frustrated.
4. Job training is a very important aspect that MBL is lacking in. New employees are
recruited directly without any prior training or orientation. The result is that they
do not understand the organizational structure and culture and become frustrated
in their start. This reduces their productivity and efficiency. If such a training
programmed is started, then the new employees would feel more comfortable and
adapt easily to the environment.
5. Meezan Bank Limited should continue to expand its business, by increasing its
deposit portfolio through aggressive market penetration strategies.
6. Meezan Bank Limited needs to improve its website. More information relating to
financial performance of the bank should be available on the website.
7. Management should distribute work equally among different employees.
8. Related jobs should be assigned to the employees so that they can work more
9. It is suggested that the employees signed jobs for specific period and than they
should shifted to other department so that they gain knowledge of other jobs.
10. Increase the Size of waiting room.

11. RIBA FREE COMMERCIAL BANKING to be set up in all countries of the

world/ Muslims & non-Muslims. This will greatly facilitate international export
import trade without the fear of being involved in any riba dealing.
12. More people must be employed on permanent basis/ providing job security and
13. MBL should become very specific about its competitors, so that it can understand
whose its competitor is in the first degree and who is in the second degree A

research cell should continuously try to gather information about the present
action so its competitors and expected future actions. So in this way more
effective strategies can be formulated.
14. The worker should be given sense of teamwork and the managers should be
trained to manage the team as a good leader
15. New schemes should be introduced and maximum privileges should be given to
customer, so that to win money market.
16. New marketing strategies should be developed to attract new customers.


 Annual Report of Meezan Bank Limited 2009.

 Practice and Law of Banking in Pakistan by Dr ASRAR H SIDDIQUI.

 Money and Banking & Finance by M. SAEED NASIR.


 www.meezanbank.com.pk

 www.google.com

 www.worldbank.org

 www.apnahyderabad.com


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