Mezan Intership Report

Internship report on Meezan bank
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Acknowledgment

I am much thankful to Almighty Allah the most beneficent, the most mercy full who has
given me strength to complete this task. I am also thankful to Mr. Arshad Sattar (Branch
Manager) and Mr. Khizer Mehmoood, (Operation Manager) of Meezan Bank Limited, Akbar
Chowk Branch, Lahore without whose guidance and support it would not have been
possible for me to accomplish this assignment.
Further more, I am indebted to the staff of Meezan Bank Limited, Gulshan-e-Ravi
Branch, Lahore from whom I have gained much experience regarding operational work of
Bank is concerned.
The last but not the least I convey my credit and thankfulness to Virtual Universities
Authorities without whose well in time support and guidance it would be much difficult for me
to achieve this task successfully.


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Executive Summary

Meezan Bank Limited (MBL) (the holding company) was incorporated
in Pakistan on J anuary 27, 1997 as a public listed company under the companies
ordinance, 1984 and its share quoted in Karachi stock exchange. MBL was registered as an
Investment financing company on August 8, 1997 and carried on the business of
investment banking as permitted under SRO 585(I)/87 dated J uly 13, 1987 in accordance
and in conformity with the principle of Islamic Sharaih. A certificate of commencement of
business was issued to MBL on September 29, 1997.
MBL was granted a Scheduled Islamic commercial bank license on J anuary 31, 2002 are
formally commenced operations as a scheduled Islamic Commercial Bank With effect from
March 20, 2002 on receiving notification is this regard from State Bank of Pakistan (SBP)
under section 37 of the Statement Bank of Pakistan Act, 1956.
Meezan Bank Limited has 222 branches in 63 cities across Pakistan and it became the
11
th
largest Bank in Pakistani term of branch network.
Meezan Bank Limited being an Islamic Bank offering its products to its customers strictly in
accordance with the shariah compliance. It is doing business in Corporate Banking,
Commercial Banking, Consumer Banking, retail Banking, Investment Banking keeping in
view the all norms and standards of Islamic injunction.
During the period of my internship from 8 May, 2011 to 2 J une, 2011, I worked in Customer
Service SQC, Clearing & Remittance and Account Opening successfully and acquired a lot
of knowledge and experience while interacting with staff of Meezan Bank Limited.
As for as different ratios of Meezan Bank Limited, they all give a healthy sign regarding
financial position of the Bank as well as operation results of the different financial years. All
ratios are fully in accordance with the banking Industrys standard and norm which is a yard
stick to measure the performance of any bank. These ratios depict and indicate that the
financial strength of the Bank is on a higher side and future prospect of the Bank is bri

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Contents
Introduction: ........................................................................................................................... 10
Historical Background .............................................................................................................. 12
MISSION AND VISION .............................................................................................................. 15
Our Vision ............................................................................................................................ 15
Our Mission ......................................................................................................................... 15
THE SERVICE MISSION ............................................................................................................. 16
CORE VALUES ...................................................................................................................... 16
RIBA-FREE BANKING OBJECTIVES ......................................................................................... 16
BANK INFORMATION ........................................................................................................... 18
Our Head Office ................................................................................................................... 20
BANKS STRUCTURE ................................................................................................................. 21
Board of Directors ............................................................................................................... 21
Management Team ............................................................................................................. 21
HYPERLINK Treasury & Financial Institutions ........................................................................ 22
Shariah Board ...................................................................................................................... 23
Permanent Members: .......................................................................................................... 24
Other positions currently held: ............................................................................................ 25
CREDIT RATING ........................................................................................................................ 27
ACHIEVEMENTS ....................................................................................................................... 28
Introduction to All Departments .............................................................................................. 29
Asset Management .............................................................................................................. 30
Retail Banking Division ..................................................................................................... 30
Credit Administration Division.......................................................................................... 30
Audit & inspection Division .............................................................................................. 30
Human Resource Division ................................................................................................ 30
Finance Division ............................................................................................................... 31
Training, Research, Communication & Public Division ...................................................... 31
Operation Division ........................................................................................................... 31
Law Division ..................................................................................................................... 31
Information Technology Division ...................................................................................... 31
INTRODUCTION TO ISLAMIC BANKING & FINANCE ............................................................... 32

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Overview ......................................................................................................................... 32
RIBA AND ITS PROHIBITION IN ISLAM................................................................................... 32
Definition of Riba ............................................................................................................. 32
RIBA In Quran: ................................................................................................................. 33
RIBA in Hadith .................................................................................................................. 33
ISLAMIC BANKING................................................................................................................ 34
History of Modern Islamic Banking ................................................................................... 34
Principles of Islamic Banking ............................................................................................ 34
Shariah Advisory Council/Consultant................................................................................ 35
WHY ISLAMIC BANKING?.................................................................................................. 35
What Distinguishes Islamic Banking from Conventional Banking? ..................................... 36
Key Misconceptions ......................................................................................................... 36
PRODUCTS OF MEEZAN BANK .............................................................................................. 37
FINANCIAL PRODUCTS ..................................................................................................... 37
SERVICES OF MEEZAN BANK LIMITED ............................................................................... 47
Lockers ............................................................................................................................ 47
24/7 CARD ATM & DEBIT CARD ..................................................................................... 48
24/7 ATM Card ................................................................................................................ 48
24/7 Debit Card ............................................................................................................... 48
24/7 Call Center ............................................................................................................... 49
Key features of Meezan Banks Call Center ........................................................................... 49
Internet Banking .................................................................................................................. 50
Key Features .................................................................................................................... 50
Alerts and Notifications by E-mail .................................................................................... 50
Account Opening Procedure ................................................................................................ 51
Account Opening Form .................................................................................................... 51
Completion of the Form ................................................................................................... 51
Specimen Signature Card (SSC) ........................................................................................ 51
Signature Difference Form ............................................................................................... 51
Computerized Checking ................................................................................................... 51
Account Number .............................................................................................................. 51

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Cheque Book Issuance ..................................................................................................... 52
Procedure for Closing of an account ................................................................................. 52
Locker Operations ............................................................................................................ 52
Procedure of issuance of Bank Statement ........................................................................ 53
Procedure of Stop Payment ............................................................................................. 53
Procedure for ATM/PIN Issuance ..................................................................................... 53
PERSONAL BANKING ........................................................................................................ 54
DEPOSIT PRODUCTS ......................................................................................................... 54
Rupee Current Account .................................................................................................... 55
Key features ..................................................................................................................... 55
Rupee Saving Account ...................................................................................................... 56
Key features ..................................................................................................................... 56
Labbaik Saving Aasaan ..................................................................................................... 58
Dollar Saving Account ...................................................................................................... 60
Key features ..................................................................................................................... 60
Meezan Euro Savings Account .......................................................................................... 61
Key features ..................................................................................................................... 61
Meezan Pound Savings Account ....................................................................................... 62
Meezan Bachat Account................................................................................................... 63
Meezan Business Plus ...................................................................................................... 65
Key features ..................................................................................................................... 66
Meezan Kids Club Account ............................................................................................... 67
Key features ..................................................................................................................... 67
Meezan Teens Club Account ............................................................................................ 68
TERM CERTIFICATES (RIBA- FREE TERM DEPOSIT CERTIFICATE) ............................................ 69
Certificate of Islamic Investment ...................................................................................... 69
Key features ..................................................................................................................... 70
Meezan Amdan Certificate ............................................................................................... 70
Key features ..................................................................................................................... 71
Monthly Mudarabah Certificate ....................................................................................... 72
Key features ..................................................................................................................... 72

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Dollar Mudarabah Certificate ........................................................................................... 73
Key features ..................................................................................................................... 73
Kids Club Account ............................................................................................................ 74
Key features ..................................................................................................................... 74
CONSUMER FINANCE ........................................................................................................... 75
Easy Home ....................................................................................................................... 75
Easy home works on a diminishing musharakah basis ...................................................... 75
Car Ijarah ......................................................................................................................... 76
Meezan Laptop Ease ........................................................................................................ 78
ELECTRONIC BANKING ..................................................................................................... 79
Internet Banking .............................................................................................................. 80
Asset Management .......................................................................................................... 90
BUSINESS BANKING.......................................................................................................... 91
Corporate Banking ........................................................................................................... 91
Deposit Accounts ............................................................................................................. 91
Islamic Agricultural Financing ........................................................................................... 92
Investment Banking ......................................................................................................... 93
Key services ..................................................................................................................... 93
Financial Institutions & Correspondent Banking ............................................................... 95
Islamic Financial Advisory Services ................................................................................... 95
Term Certificates ............................................................................................................. 96
Competitors ..................................................................................................................... 96
DEPARTMENTS & THE PRODUCTS OFFERED AT THE BRANCH ........................................... 96
CUSTOMER SERVICES DEPARTMENT ................................................................................ 98
RIBA FREE-RUPEE SAVING ACCOUNT ................................................................................ 98
CURRENT ACCOUNT ....................................................................................................... 100
BASIC OF ACCOUNT OPENING ........................................................................................ 100
INDIVIDUAL ACCOUNT ................................................................................................... 101
JOINT ACCOUNTS ........................................................................................................... 101
TRUSTS ACCOUNTS ........................................................................................................ 102
CORPORATE ACCOUNTS ................................................................................................. 102

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OPERATIONS DEPARTMENT ........................................................................................... 106
PAY ORDER .................................................................................................................... 108
DEMAND DRAFT ............................................................................................................ 108
RIBA FREE TERM DEPOSITS OFFERED BY BANK ............................................................... 110
Karobari Munafa Account .............................................................................................. 113
CASH DEPARTMENT ....................................................................................................... 117
CREDIT / FINANCE DEPARTMENT ................................................................................... 118
PERSONAL FINANCING ................................................................................................... 118
FUTURE OUTLOOK ......................................................................................................... 123
FINANCIAL STATEMENTS ................................................................................................... 125
Meezan bank limited ..................................................................................................... 125
Balance Sheet ................................................................................................................ 126
FINANCIAL ANALYSIS ......................................................................................................... 127
Ratio Analysis ................................................................................................................. 127
2. Acid Test Ratio: .......................................................................................................... 128
3. Working Capital.......................................................................................................... 129
2. Debt Ratio .............................................................................................................. 131
3. Debt to Equity ratio ................................................................................................ 131
Net Profit Margin ............................................................................................................... 135
3.Return on Assets ......................................................................................................... 136
TRAINING PROGRAM ............................................................................................................. 140
Meezan Bank Township Branch...................................................................................... 140
Service Quality Department ........................................................................................... 140
Clearing and Remittance Department ............................................................................ 140
Clearing ......................................................................................................................... 140
Types of Clearing ........................................................................................................... 141
Account Opening Department........................................................................................ 142
Conclusion ............................................................................................................................. 145
SWOT ANALYSIS .................................................................................................................... 146
Strengths ....................................................................................................................... 146
Weaknesses ................................................................................................................... 147

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Opportunities ................................................................................................................ 147
Threats .......................................................................................................................... 148
RECOMMENDATIONS ............................................................................................................ 149
CONCLUSION ......................................................................................................................... 150
REFERENCES: ................................................................................................................. 151


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Introduction:

Banking plays a very significant role in the economic development of a country. After
Partition of India and Pakistan British Governments commission distributed the reserves
between Pakistan and India.

In August 1947, various Banks transferred their headquarters and funds to India. Before
partition of Pak-o-Hind, some Banks were operated which were Chartered Bank, Grind-lays
Bank, Imperial Bank of India, Australasia Bank and Habib Bank. After the independence of
Pakistan, Muslim Commercial Bank Limited, Bank of Bahawalpur Limited, Punjab National
Bank and National Bank of Pakistan were providing banking facilities to general public.

The State Bank of Pakistan was inaugurated by our great leader Muhammad Ali J innah.
On 1
st
J uly,1948. Australasia Bank and Habib Bank were providing facilities to
the Pakistans nation. After some period, Australasia Bank Limited was converted into Allied
Bank of Pakistan.

State Bank of Pakistan is a Central Bank of Pakistan. Other Banks are Commercial Banks,
Specialized Bank and Investment Banks.


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Now a days in Pakistan, fifty four banks are operated with thousands of branches. Banks
are providing Banking facilities to their customers and clients by offering different services
and packages.

Pakistans banking sector consisting of Islamic Banks, Private Banks, Public Sector Banks,
and Micro Finance Banks. These Banks are doing Corporate Banking, Trade Financing,
Lease Financing and some Banks are providing online banking facilities, ATM facility and
money transfer facilities also.

Banking sector is a back bone of our economy. If this sector is making progress than whole
economy is also growing a lot. Our Agricultural sector, Industrial sector, Mining sector,
Export sector all depend on the banking industry because Banks provide long term funds as
well as short term funds to all these sectors to meet out their short term as well as long term
requirement. Hence, banking progress is necessary indeed.


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Historical Background

In 1980 a Constitutional amendment by General Zia ul Haq's regime introduced a new
hierarchy of Islamic Courts. This hierarchy consisted of a Federal Shariat Court (at the level
of High Court, the highest judicial forum in a Province) and a Supreme Court Shariat
Appellate Bench (at the level of the Supreme Court of Pakistan, the highest judicial forum in
the Country) as its sole appellate forum.

The Federal Shariat Court was given the power of declaring any law repugnant to the
Injunctions of Islam. In case of such a declaration, subject to appeal to the Supreme Court
Shariat Appellate Bench, the said law would cease to exist on the date mentioned in the
decision declaring it so. However, the Federal Shariat Court's jurisdiction was barred for ten
years after its establishment from examining and declaring repugnant any fiscal, tax or
banking law. This restriction was to expire on 25.06.1990.

In 1991, two important events took place. First, General Zia's regime promulgated the
Shariah Act, which declared Islam as the supreme law of the land. Second, the Federal
Shariat Court declared interest equivalent to "riba", thus un-Islamic and illegal. Although the
General Zia's Government had already announced in 1984 that all banks will adopt Islamic
modes of financing and would eliminate riba (interest) from Pakistan, yet it had not been
done in true spirit.
After declaring its verdict in 1991, the Federal Shariat Court directed that all kinds of
transactions, whether national or international and whether Governmental or private, had to
take place on a non-interest basis. The Government and others filed appeals against this
judgment, as a result of which the execution of the judgment was stayed. Only in 1999, after
about eight years, did the Shariat Appellate Bench of the Supreme Court of Pakistan
suddenly took up this matter and did not even allow the Government to withdraw it.

On 23.12.99, within 9 weeks of the military takeover of the Pakistan Government on
17.10.99, the Shariat Appellate Bench of the Supreme Court upheld the Federal Shariat
Court ruling and declared interest illegal. The Court held (in its detailed judgment consisting

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of more than 1,000 pages) that any increase or gain over and above the principal amount of
loan is riba, thus un-Islamic. In this regard, the Court declared there was no difference
between the commercial loans for productive purposes and personal loans for consumptive
purposes. Riba covered both usury and interest and thus applied to both exorbitant and
minimal rates of interest.

The Court declared that interest is riba regardless of whether a given transaction took place
between rich, poor, Muslims, non-Muslims, or any combination of such parties. The Court
further held that interest charged by banks or financial institutions or individuals today is
riba, thus un-Islamic and illegal. The true alternative to interest, said the Court, is Profit and
Loss sharing based on musharika (joint venture), Modaraba (mutual investment fund) and
morabaha (cost-plus financing).

The Court also endorsed certain other non-interest based modes of financing such as ijara
(lease), Salam (sale) and istisna (a contract of acquisition of goods by specification or order,
where the price is paid progressively in accordance with the process of a job completion).

Keeping in mind the huge foreign debt liabilities of Pakistan, the Court held that foreign
debts are liabilities of special nature. It was stated in the judgment that these cannot be
exempted from the prohibition against interest.
The Court held, however, that this does not mean that foreign liabilities should be shunned.
The Court suggested that Government should discuss some new arrangements for the
foreign loans with the lender Governments and organizations. The Court allowed some time
for conversion of foreign transactions into riba-free mode.

The Court acknowledged that to lay down economic and monetary policies and to frame
laws is not its responsibility. On the insistence of the Government and taking advantage of
large number of expert opinions, the Court has nonetheless provided detailed guidelines for
establishment of an interest- free economic and legal framework in accordance with the
injunctions of Islam.


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These guidelines include, among others, enactment of laws to provide for necessary
prudential measures to ensure transparency, inter alias, along with the lines of the Freedom
of Information Act, the Privacy Act and the Ethics Regulations of the United States, and the
Financial Services Act of the United Kingdom; establishment of institutions like the UK
serious Fraud Office to control white collar economic crimes; establishment of credit rating
agencies in the public sector, establishment of a system of evaluators for scrutiny of
feasibility reports, etc.


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MISSION AND VISION

Our Vision

Establish Islamic banking as banking of first choice to facilitate the implementation of an
equitable economic system, providing a strong foundation for establishing a fair and just
society for mankind.

Our Mission

To be a premier Islamic bank, offering a one-stop shop for innovative value added products
and services to our customers within the bounds of Shariah, while optimizing the
stakeholders' value through an organizational culture based on learning, fairness, respect
for individual enterprise and performance.


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THE SERVICE MISSION
To develop a committed service culture which ensures the consistent delivery of our
products and services within the highest quality service parameters, promoting Islamic
values and ensuring recognition and a quality banking experience to our customers

CORE VALUES
Shariah Compliance
Integrity
Professionalism
Service Excellence
Social Responsibility
RIBA-FREE BANKING OBJECTIVES
To provide Shariah-compliant products and services as a feasible and valuable
alternative to conventional interest based finance.
To continue exploring, developing and delivering new products and services that fulfill
all banking needs of the Pakistani market.
To achieve sustainable growth, maximum market share, and high profitability in all
areas of banking and other affiliated Islamic financial services.
To maintain absolute world class service excellence, with a dedicated focus on value
and recognition for our customers. To build and sustain a high performance culture in
accordance with Islamic values and Shariah principles.
To continuously foster an enabling and positive corporate environment, where all our
employees have shared values, common goals and are motivated in maximizing their
contribution towards the cause of Riba-free Banking.
To effectively manage and mitigate all kinds of risks involved in the Islamic Banking
business. To maximize use of state of the art technology to ensure cost effective

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operations, efficient management information systems, enhanced delivery capability,
and high service quality.
To effectively manage Meezan Banks portfolio of businesses to achieve strong and
sustainable return to our depositors and shareholders.


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BANK INFORMATION

Meezan Bank Limited is a publicly listed company first incorporated on J anuary 27, 1997. It
started operations as an investment bank in August of the same year. In J anuary 2002 in an
historic initiative, the State Bank of Pakistan granted Meezan Bank the nation's first full-
fledged commercial banking license dedicated to Islamic Banking.

Meezan Bank stands today at a noteworthy point along the evolution of Islamic Banking in
Pakistan. 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.

The Bank has made fundamental and significant progress forward, and in doing so has
established a strong and credible management team comprised of experienced
professionals, which have achieved a strong balance sheet with excellent operating
profitability, including a capital adequacy ratio that places the Bank at the top of the industry,
a long-term entity rating of A+, and a short-term entity rating of A1.

The Bank's main shareholders are leading local and international financial institutions,
including Pak-Kuwait Investment Company, the only AAA rated financial entity in the
country, the Islamic Development Bank of J eddah, and the renowned Shamil Bank of
Bahrain that in addition to their strength and stability, add significant value to the Bank
through Board representation and applied synergies.

The Bank has an internationally renowned, very high caliber and pro-active Shariah
Supervisory Board presided over by J ustice (Retd.) Maulana Muhammad Taqi Usmani, a
renowned figure in the field of Shariah, particularly Islamic Finance. He holds the position of
Deputy Chairman at the Islamic Fiqh Academy, J eddah and in his long and illustrious career
has also served as a J udge in the Shariat Appellate Bench, Supreme Court of Pakistan. The

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Bank also has a resident Shariah advisor, Dr. Imran Usmani, who strictly monitors the
regular transactions of the Bank. The board also includes Sheikh Essam M. Ishaq (Bahrain),
and Dr. Abdul Sattar Abu Ghuddah (Saudi Arabia).

At Meezan Bank, we strive to find commonalties with the conventional banking system with
absolutely no compromise on Shariah rulings. 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 the world-class service excellence that our customers demand, all within the
bounds of Shariah.

Furthermore, the Bank has built a strong Information Technology and customer knowledge-
based focus that continues to use state of the art technology and systems. The Bank's
Corporate and Investment Banking business unit is geared towards nurturing and
developing a long-term relationship with clients by understanding their unique financing
requirements and providing Shariah compliant financing solutions across the horizon of
corporate banking and structured finance.

The Bank is also implementing robust and aggressive strategic and tactical initiatives on the
consumer banking side. The Bank has a rapidly growing branch network across all major
cities nation-wide. Providing our customers accessibility and convenience is a prime target,
within an atmosphere and culture of dedicated service and recognition of their needs.

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 with
the dictates of Shariah. At the same time, we endeavor to deliver competitive risk adjusted
returns to our stakeholders.


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Our Head Office

Our Head Office is located at: 3rd Floor, P.N.S.C. Building, Moulvi Tamizuddin Khan Road,
and Karachi.
Tel: (92-21) 5610582 / 5610679
Fax: 92-21) 5610375

Our branches are conveniently located across the country in Karachi, Hyderabad, Quetta,
Lahore, Sialkot, Gujranwala, Kasur, Rawalpindi, Faisalabad, Multan, Peshawar and
Islamaba

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BANKS STRUCTURE

Board of Directors

The Board of Directors of Meezan Bank comprises of:

H. E. Sheikh Ebrahim Bin Khalifa Al-Khalifa (Chairman)
Abdullateef A. Al-Asfour
Shaharyar Ahmad
Rana Ahmed Humayun
Riyadh S. A. A. Edress
Mohammed Azzaroog Rajab
Ahmed Abdul Rahim Mohamed
Alaa A. Al-Sarawi
Mohammad Abdul Aleem
Irfan Siddiqui (President & CEO)
Ariful Islam (Deputy CEO)

The organizational structure of the Bank consists of top level management, middle level
management and lower level management. The top level management comprises of
president, executive vice president, and divisional heads. The middle level management
comprises of departmental heads, SVPs and VPs. The lower level management comprises
of AVPs, Managers, and Operation Managers. The reporting system at horizontal level is
much effective and successful. The reporting system at vertical level i.e. from lower level
management to middle level management is also accurate, timely and complete. The middle
level management gives information to high level management at which decision are made,
rules and regulations are amended keeping in view the present scenario.
Management Team


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Irfan Siddiqui President & Chief Executive Officer
Ariful Islam Chief Operating Officer
Najmul Hassan Manager Corporate
Muhammad Shoaib Qureshi General Manager Commercial Banking
Shabbir Hamza Khandwala Chief Financial Officer
Dr. Muhammad Imran Usmani Shariah Advisor
Arshad Majeed Head of Operations
Mohammad Haris Head of Corporate & Structured Finance
Rizwan Ata Regional Manager - Central
Mohammad Sohail Khan Head of HRM
Munawar Rizvi Head of Expansion & Business Promotion
Saleem Khan Regional Manager - North
Faiz-ur-Rehman Head of Information Technology
Zafar Ali Khan Head of Consumer Assets & Marketing
Saleem Wafai Head of Compliance/Training & Development
Muhammad Abdullah Ahmed Head of HYPERLINK

HYPERLINK Treasury & Financial Institutions

Ms. Mehnaz Ikram Head of Legal Affairs
Abdullah Ghaffar Memon Regional Manager - South
Ziaul Hassan Head of Internal Audit
Imran Iqbal Panjwani Head of Risk Management
Muhammad Raza Manager Liability Products
Azeem Iqbal Pirani Manager Alternate Distribution


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Shariah Board

The members of the Shariah Board of Meezan Bank are Internationally renowned scholars
serving on the boards of many Islamic banks operating in different countries.

The members of the Shariah Board are:

J ustice (Retd.) Muhammad Taqi Usmani
Dr. Abdul Sattar Abu Ghuddah
Sheikh Essam M. Ishaq
Dr. Muhammad Imran Ashraf Usmani - Shariah Advisor

J ustice (Retd.) Muhammad Taqi Usmani is a renowned figure in the field of Shariah,
particularly in Islamic Finance. Currently he holds advisory positions in a number of financial
institutions practicing Islamic Banking and Finance.

J ustice (Retd.) Muhammad Taqi Usmani has vast experience in Islamic Shariah, he has
been teaching various subjects on Islam for 39 years. He also served as a J udge in the
Shariat Appellate Bench, Supreme Court of Pakistan from 1982 to 2002. He is also the
Editor of the magazine 'Albalagh' (a weekly publication of J amia Darul Uloom, Karachi). He
also contributes articles in leading Pakistani newspapers.

Born in Pakistan, J ustice (Retd.) Muhammad Taqi Usmani did graduation from Punjab
University in 1970. He also holds an LLB from Karachi University. Prior to that, he
completed 'Takhassus' course, that is the specialization course of Islamic 'Fiqh' and 'Fatwa'
(Islamic J urisprudence) from J amia Darul Uloom Karachi.

In March 2004 His Highness Sheikh Mohammad Bin Rashid Al Maktoum (Dubai Crown
Prince and UAE Minister of Defense) presented a special award to J ustice (Retd.)
Muhammad Taqi Usmani in recognition of his lifetime service and achievement in Islamic

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Finance at the occasion of International Islamic Finance Forum, Dubai, which is one of the
biggest events in Islamic Finance Industry.

Permanent Members:

Permanent Member International Islamic Fiqh Academy, J eddah
Vice President, Darul Uloom Karachi
Chairman, Shariah Council AAOIFI, Bahrain
Member, Islamic Fiqh Academy of Rabita-al-Alam-e-Islami, Makkah
Member, European Council of Fatwa and Research, Dublin, Ireland
Chairman, Center for Islamic Economics Pakistan
Chairman, Shariah Board Dow J ones Islamic Market Index, New York
Chairman, Shariah Board, Bahrain Monetary Agency, Bahrain
Chairman, Shariah Board, Amana Investments Limited, Sri Lanka
Chairman, Shariah Board Abu Dhabi Islamic Bank, UAE
Chairman, Shariah Board Islamic House of Britain plc, UK
Member, Shariah Board, First Islamic Investment Bank, Bahrain
Member Shariah Board, Islamic Corporation for Development of the Private Sector,
(An organ of IDB), J eddah
Member Shariah Board, Guidance Financial Group, USA

Dr. Abdul Sattar Abu Ghuddah holds positions of Shariah Advisor and Director, Department
of Financial Instruments at Al-Baraka Investment Co. of Saudi Arabia. He holds a PhD in
Islamic Law from Al Azhar University Cairo, Egypt. He is an active member of Islamic Fiqh
Academy and the Accounting & Auditing Standards Board of Islamic Financial Institutions.

Dr. Abdul Sattar teaches Fiqh, Islamic studies and Arabic in Riyadh and has done a
valuable task of researching and compiling information for the Fiqh Encyclopedia in the

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Ministry of 'Awqaf' and Islamic Affairs, Kuwait. He has been a member of the 'Fatwa' Board
in the same Ministry from 1982 to 1990.
Other positions currently held:

Member Shariah Board, Dow J ones Islamic Market Indexes, USA
Member Shariah Board, UBS, Switzerland
Member Shariah Board Guidance Financial Group, USA
Member Shariah Board, Saudi American Bank, Saudi Arabia
Member Shariah Supervisory Board, First Islamic Investment Bank, Bahrain

Born in Bahrain Sheikh Essam M. Ishaq graduated in Political Science from McGill
University, Montreal, Canada. Currently he is teaching Fiqh, Aqeeda and Tafseer courses in
Bahrain. He holds the position of Shariah Advisor at Discover Islam Bahrain. He holds
position of Director in a number of Business and Educational institutions, which include:
Al Baraka Islamic Bank, Bahrain
Bahrain Development Bank, Bahrain
Discover Islam, Bahrain
Middle East Traders, Bahrain
Zawaya Property Development, Bahrain
Al Iman Islamic School, Bahrain
Muslim Educational Society, Bahrain

Dr. Muhammad Imran Ashraf Usmani has done M. Phil and Ph. D. in Islamic Finance after
graduating as scholar from J amia Darul Uloom, Karachi. He has also done the
specialization course in Islamic J urisprudence from J amia Darul Uloom, Karachi. He is also
involved in conducting training sessions for Meezan Bank's staff in the area of Islamic
finance. Dr. Usmani has been teaching several subjects of Islamic Fiqh since 1998 at J amia
Dar-ul-Uloom, Karachi. He is also a visiting faculty member of Institute of Business
Administration (IBA), Karachi


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Member, Shariah Board, State Bank of Pakistan
Member, Shariah Supervisory Board, Credit Suisse Bank, Switzerland
Shariah Advisor, UBS, Switzerland
Shariah Advisor and Shariah Board Secretary, Guidance Financial Group,
Shariah Advisor, DCD Financial Group, UK
Member of Shariah Board, Lloyds TSB Bank, UK
Member/Observer, Shariah Council, AAOIFI, Bahrain
Member, Shariah Supervisory Board, HSBC Amanah, UAE
Member/Secretary Shariah Board, IHilal.com & IHilal Financial Services,
Member, Shariah Board, Future Growth Equity Fund, South Africa


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CREDIT RATING

Meezan Bank entity rating of AA for medium to long term
A-1+ for short-ter
Meezan Bank entity rating upgraded by JCR-VIS
J CR-VIS, the Banks Credit Rating Agency has upgraded Banks long-term entity rating
to AA (Double A) from AA- (Double A Minus) with Stable Outlook and maintained short-term
rating to A-1+(A-One Plus) which is the highest short-term rating.
Double A rating assigned by J CR VIS denotes high credit quality, strong protection factors
and modest risk but may vary from time to time because of economic conditions. Whereas
short term rating A-1+denotes high certainty of timely payments, excellent liquidity factors
supported by good fundamental protection factors and minor risk factors.


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ACHIEVEMENTS

Meezan Bank has recently won the award of "Best Provider of Islamic Financial Services"
for Pakistan. Islamic Finance conducted the best Islamic Bank poll

Islamic Finance News is one of the industry's leading publications that provide unrivalled
editorial coverage of the global Islamic financing market. Inviting the issuers and other non-
banking financial intermediaries to offer their views on which they deem to be the best in a
host of categories carried out the poll. This process collated 1,015 responses towards the
final results.

This award is another milestone achievement that reinforces Meezan Bank's leading role
and contribution in the cause of Riba-free Banking in Pakistan.

Meezan Bank has the largest variety of Shariah compliant products and services under one
roof. Their broad product menu offers complete range of Islamic banking products and
services, including Commercial Banking: working capital finance, import & export,
guarantees, Islamic export refinance and long term financing. In Retail Banking it offers a
complete range of current and savings accounts, term deposits, and foreign currency
accounts. In consumer finance, there are Auto and Housing finance products available.

Meezan Bank's mission is to provide its customers dedicated and pure Islamic Banking
facilities, with real time online branches in all major cities of the country. These include
Karachi, Islamabad, Lahore, Quetta, Sialkot, Faisalabad, Multan, Gujranwala, Kasur,
Rawalpindi and Peshawar. In addition, the bank will very soon open its doors in D.G. Khan,
Rahim Yar Khan and Hyderabad.


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Introduction to All Departments

Meezan Bank Limited has been divided into following divisions:

Assets Management
Retail Banking Division
Liability Division
Common Assets Division
Credit Administration Division
Human Resources Division
Finance Division
Treasury and International Division
Information Technology Division
Corporate Banking Division
Operation Division
Credit Risk Management Division
Control and Compliance Division
Establishment Division
Training, Research, Communication & Public Division
Consumer Banking Division
Credit Policy Division
Audit & Inspection Division
General Service Di vision
Law Division


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Asset Management

The Bank invest funds on behalf of its customers (shariah compliant investment product)
and gives them access to a wide range of traditional and alternative product offerings. For
example open end funds, pension funds and closed end funds
Retail Banking Division

In this division bank deals with customers and execute their transaction directly. Bank
provide the service of savings, checking of accounts, mortgages, personal loans, debit
cards and ATM cards.

Credit Administration Division

In this division, banks deals with the credit, banks gives loans to individuals ans to the
corporations.

Audit & inspection Division

This department of the bank conduct audit of all the branches and submit its reports to the
top level management to take corrective measures.

Human Resource Division

This division performs the duty of hiring the employees, training the employees as well as
retaining the employees and if necessary, firing the employees.


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Finance Division

This division controls the overall activities relating to finance i.e. monitoring the investment
activities, financing activities, Debit and Credit of funds and reasons there of with proofs.

Training, Research, Communication & Public Division

This division makes research about the new product, imparts training to newly hired
employees as well as old employees for innovation as per the rules and regulation of State
Bank of Pakistan.

Operation Division

This division controls the whole operation of all the branches and controls the cash
activities, cheques, account opening and other things about operations.

Law Division

This division engages the lawyers and gives them the power of attorney to protect the bank
to in courts of law where cases have been filled by the bank against defaulters of loan as
well as against the bank by the general public.

Information Technology Division

This division provides the relevant systems for working in the bank and protects the data in
computers at central place and controls the overall online system on daily basis.

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INTRODUCTION TO ISLAMIC BANKING & FINANCE

Overview
For centuries Muslims have conducted business in ways consistent with Islamic
law.The entire system of Islamic Finance and business is undergoing a revival; the potential
of this sector is real and deserving of serious attention.
The classical system of Islamic finance has remained intact.
In the Islamic scheme of business and finance, money has no intrinsic value and
hence may not generate profit.
The element of risk in Islamic transactions makes people take things more seriously.
Today for many interest is more than a way of life, it is fact of life.
However there are more than 300 Islamic banks in nearly 75 countries offering
products and services to millions of people worldwide.

RIBA AND ITS PROHIBITION IN ISLAM

Definition of Riba

Riba means interest. It means
Excess compensation over and above the principle which is without due consideration


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RIBA In Quran:

1. First Revelation (Surah al-Rum, verse 39)
That which you give as interest to increase the peoples wealth increases not with God; but
that which you give in charity, seeking the goodwill of God, multiplies manifold. (30: 39)

2. Second Revelation (Surah al-Nisa, verse 161)
And for their taking interest even though it was forbidden for them, and their wrongful
appropriation of other peoples property. We have prepared for those among them who
reject faith a grievous punishment (4: 161)

3. Third Revelation (Surah Al Imran, verses 130-2)
O believers, take not doubled and redoubled interest, and fear God so that you may
prosper. Fear the fire which has been prepared for those who reject faith, and obey God and
the Prophet so that you may receive mercy.

RIBA in Hadith

1. From J abir : The Prophet, , may cursed the receiver and the payer of interest, the one
who records it and the two witnesses to the transaction and said: They are all alike [in
guilt]. (Muslim, Kitab al-Musaqat, Bab lani akili al-riba wa mukilihi; also in Tirmidhi and
Musnad Ahmad)
2. J abir ibn Abdallah , giving a report on the Prophets Farewell Pilgrimage, said: The
Prophet, , addressed the people and said All of the riba of J ahiliyyah is annulled. The first
riba that I annul is our riba, that accruing to Abbas ibn Abd al-Muttalib [the Prophet's uncle];
it is being cancelled completely. (Muslim, Kitab al-Hajj, Bab Hajjati al-Nabi, ; may also in
Musnad Ahmad)
3. From Abdallah ibn Hanzalah : The Prophet, , said: A dirham of riba which a man
receives knowingly is worse than committing adultery thirty-six times (Mishkat al-Masabih,
Kitab al-Buyu, Bab al-riba, on the authority of Ahmad and Daraqutni). Bayhaqi has also

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reported the above hadith in Shuab al-iman with the addition that Hell befits him whose
flesh has been nourished by the unlawful.

ISLAMIC BANKING
Islamic banking has been defined as banking in
consonance with the ethos and value system of Islam
and governed, in addition to the conventional good
governance and risk management rules, by the
principles laid down by Islamic Shariah. Interest free
banking is a narrow concept denoting a number of
banking instruments or operations, which avoid
interest. Islamic banking, the more general term is expected not only to avoid interest-based
transactions, prohibited in the Islamic Shariah, but also to avoid unethical practices and
participate actively in achieving the goals and objectives of an Islamic economy.

History of Modern Islamic Banking

The Islamic banking starts with the commencement of Egypts Mt Ghamr Saving Bank in
1963.however it faces many problems due to social and economical conditions in the
country but it surely indicated that the idea and method of Islamic Banking was practical and
can be put into practice.

Principles of Islamic Banking

Islamic banking has the same purpose as conventional banking except that it claims to
operate in accordance with the rules of Shariah, known .The basic principle of Islamic
banking is the sharing of profit and loss and the prohibition of riba (interest).Sharia
generally refers to a body of Islamic law, even though this meaning is considered very
restrictive. Sharia, which means way or path, is the legal framework within which the

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public aspects and some private aspects of life are ruled for those living within the state and
who belongs to the islamic .Sharia deals with many aspects of day-to-day life, including
politics, economics, banking, business law, contract law, and social issues
Shariah Advisory Council/Consultant
Islamic banks and banking institutions that offer Islamic banking products and services (IBS
banks) are required to establish Shariah advisory committees/ consultants to advise them
and to ensure that the operations and activities of the bank comply with Shariah principles

WHY ISLAMIC BANKING?

Islamic prohibits Riba in no unclear terms.
The nature and definition of Riba are clearly understood and today there is no
ambiguity in its definition.
Every Muslim is duty bound to withhold the dictates given by Allah and his
messenger.
Key objective is to ensure Social J ustice.
Cannot be achieved without Economic justice.
Economic justice requires a viable economic system supported by a efficient banking
system.
Interest based banking is inefficient.
Interest results in concentration of wealth.
Islamic encourages circulation of wealth and discourages its concentration in a few
hands to narrow down the distinction between rich and poor, as for as is natural and
practical.
Circulation of wealth is as important as blood in our body: Clot of blood paralyzes our
body, whereas concentration of wealthy in a few hands paralyzes economy.
Monopoly is prohibited.


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What Distinguishes Islamic Banking from
Conventional Banking?

All transactions are asset-based.
It is socially responsible banking because it operates under Shariah restrictions.
Does not permit financing of prohibited goods/Industries.
It starves evil out of the society.
Conventional Banking Islamic Banking
Conventional Banking prices money. Islamic banking prices goods and services
which creates real wealth in the society leading to economic well-being.
Depositors get a fixed rate regardless of the banks profitability, thus insulating them from
the banks true performance. Profit is shared with the depositor, higher the banks profit,
higher the depositors income.
Basic Difference between Islamic and Conventional Modes of Finance
Basic Difference between Islamic and Conventional Modes of Finance

Key Misconceptions

Islamic banking looks the same as conventional banking A halal meat and haram
meat may look exactly the same but one is permissible while the other is not.

A fixed rate of return is not permitted under Islamic Shariah Fixed return does not
make a transaction halal or haram. For example:

Profit on trading
Rent on property

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PRODUCTS OF MEEZAN BANK

FINANCIAL PRODUCTS
Meezan bank offering different types of financial products. It consists of three categories:
Transaction Account
Term Deposits
Institutional Deposits
Transaction Accounts:
Transaction accounts are of the following types:
Rupee Saving Account
Current Account
Dollar Saving Account
Karobari Munafa Account
Rupee Saving Account:
A unique bank account that offers the opportunity to earn Halal profits, while enjoying a
range of added benefits. The profit on this account is calculated and paid on a monthly
basis, and comes with a variety of free benefits including personalized check books, no
restrictions on transactions, priority banking and so on
Current Account
Current account is a complete business account which provides instant access to
funds at all online branches without any restriction on withdrawals or number of
transactions.

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Additional Features of Current & Saving Account:
Apart from first class service and personalized attention that our customers get when
they bank with us, we offer the following additional conveniences:
Instant access to funds at any online branch.
Free Online Banking services at our branch network nationwide.
No restriction on withdrawals or number of transactions.
Bank balance certificates & duplicate statements of account.
Stop Payment & Hold Mail instructions.
24/7 Card your ATM & Debit Card in one.
24/7 Call Center with complete Tele-banking services.
Personal financial consultancy services.
Dedicated Banking hours from 9am to 5pm (Saturdays 9am to 12:30pm).
Dollar Saving Account:
Meezan Bank offers 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.
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:
Personalized cheque books.
No restriction on withdrawals or number of transactions.
Call center facilities.
Monthly profit payment.
Taking stop payment instructions.
Taking hold mail instructions.

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Issuance of duplicate statement of account.
Personal financial consultancy services.

Karobari Munafa Account (KMA)

Karobari Munafa Account (KMA), a high profile checking account for business corporations,
individual businessmen and high net worth individuals. KMA has no preset transaction limit
with free online banking services and allows the account holder to earn higher returns on
surplus cash balances.
Karobari Munafa is a savings account specifically tailored for large corporate 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 benefits.
Additional 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: cheque books and pay orders.
Dedicated account / relationship manager.
High returns for high depositors.


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How these Transaction Account works?
Riba-Free Rupee Saving Account works under the principles of Mudarabah and is strictly in
conformity with the rules of Islamic Shariah.On agreeing to become an account holder, the
customer enters into a relationship based on Mudarabah with Meezan Bank. Under this
relationship, the customer is an Investor (Rab ul Mal), and the bank is the Manager
(Mudarib) of the funds deposited by the customers.The bank allocates the funds received
from the customers to a deposit pool. These funds from the pool are utilized to provide
financing to customers under Islamic modes that include, but are not restricted to, Murabaha
and Ijarah
TERM DEPOSITS
Term deposits are of the following types
Certificate of Islamic Investment
Meezan Amdan Certificate
Monthly Mudarabah Certificate
Dollar Mudarabah Certificate
Meezan Providence Certificate

Certificate of Islamic Investment (COII)
Certificate of Islamic Investment (COII) is a 3 month to 5 year fixed deposit certificate with a
high and very competitive return. COII is available to individuals, business corporations and
other entities including trusts and benevolent/ charitable organizations. It offers varieties of
profit payment options such as monthly, quarterly or at maturity.
The Riba Free is a Shariah compatible Islamic Investment Certificate. The minimum
investment is Rs. 50,000, with tenures of 3 months, 6 months, 1 year, 2 years, 3 years and
5 years.

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Key Features of COII
Enjoy a range of valuable features including:
High and very competitive returns.Long-term security ensured.
Minimum investment amount: Rs. 50,000/-
Available tenures of 3 months, 6 months, 1 year, 2 years, 3 years and 5 years.
Profit disbursement:
3 Months At Maturity
6 Months At Maturity
Monthly profit on 1, 2, 3 and 5 years*
Quarterly profit on 1, 2, 3 and 5 years
At maturity profit payment for all tenures
A variety of profit frequencies: monthly, quarterly, and at maturity.
Premium rates over the declared profit rates available for investments by individuals
above Rs. 500,000/-
Pre-mature withdrawal options available.
24/7 Call Center with complete Telebanking services.


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The Riba-Free Meezan Amdan 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.
Key Features of MAC
High and very competitive returns.
Ensured long term security.
Minimum investment amount: Rs. 100,000/-
Special attraction for Widows and Senior citizens with minimum investment of PKR
50,000/-.
Available tenures of 5 years and 7 years.
Profit payment on monthly basis.
Free cheque book.
Free ATM withdrawals on investment of Rs.500, 000/- and above (5 per month).
Free Internet banking facility.
24/7 Call Center with complete Telebanking services.


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Meezan Bank offer Riba-Free Monthly Mudarabah Certificates, is an investment certificate
which provides an investment opportunity to individuals, corporates, and other entities for a
period of one month.
Features
A 100% halal investment in strict compliance with Sharia
Monthly profit payment to your current or saving account with us.
Minimum requirement of PKR 100k.
Profit disbursement on maturity.
Tire system for profit payment.
Meezan Providence Certificate: (MPC)
A long-term investment product specially designed to cater to the needs of
corporate and business concerns for purposes of investing their Provident,
Pension and Gratuity Funds.
Key Features of Meezan Providence Certificate
Enjoy a range of accessible 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.
Profit disbursement:
2 Years either at maturity or semi annually
3 Years At Maturity

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5 Years At Maturity
7 Years At Maturity
Provident and pension fund of large corporate.

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.


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Dollar Mudarabah Certificate (DMC
Dollar Mudarabah Certificate (DMC) is a US dollar based certificate exclusively designed for
individuals and corporates who prefer to invest their savings in this currency. The product
caters to non resident Pakistanis as well as two tiers of local residents.
Key Features of DMC
High and very competitive returns.
Six monthly profit payment to your current or saving account with us.
Long-term security ensured. Minimum investment amount: USD 10,000/-.
Available tenures of 3 months, 6 months, 1 year, and 3 years.
Institutional Deposits
Meezan Islamic Institution Deposit Account (MIIDA) The Meezan Islamic Institution Deposit
Account (MIIDA) is a unique product, tailored exclusively for Islamic Financial Institutions
(IFIs). With MIIDA, any IFI now has the opportunity to manage excess liquidity in an
immediate and profitable manner, by maintaining a checking account with Meezan Bank.
Key Features
The features and mechanics of the product are detailed below providing a ready-made
solution ensuring high returns, easy accessibility, total stability, and absolute Shariah
compliance.
A Checking Account only available for Islamic Financial Institutions. Deposits
invested under a Mudarabah arrangement.
Minimum investment amount- PKR 10,000,000/- or multiples thereof
Maximum investment amount PKR 1 billion.

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Withdrawals of funds: 24 hrs. notice for PKR 50 200M deposit, 48 hrs. notice for
200M+deposit.
Profit disbursed on a monthly basis.
Profit calculated on daily product basis.


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SERVICES OF MEEZAN BANK LIMITED

Following services are provided by Meezan Bank:

Lockers
24/7 ATM Card
24/7 Debit Card
24/7 Call Centre
Internet Banking
Alerts & Notifications by E-mail
Lockers
Banks keep three types of custodies of any thing valuable handed over by any customer.

Small
Medium
Large
Features
Available in selected branches.
Available in 3 sizes.
For all eligible account holders.
Key security deposit PKR 3000.
Annual charges:
Small PKR 1000
Medium PKR 1500
Large PKR 2000

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Locker breaking charges PKR 3000.
24/7 CARD ATM & DEBIT CARD

The Meezan Bank 24/7 Card means you can stay in touch with your money anywhere,
anytime. Travel countrywide and have immediate access to cash when you need it. Use
your card to make all your payments when you shop or dine out. With the Meezan Bank
24/7 Card in your wallet you do not have to carry large sums of money, face the hassle of
always having to come to the bank, neither face traffic problems nor wait in long queues
before making the purchases you desire.
24/7 ATM Card
The Meezan Bank ATM card allows you to draw cash anytime nationwide. You no longer
have to worry about carrying cash on a trip within the country, simply carry your Meezan
Bank ATM card and draw cash or simply check your balance information from any Banks
Accessing any conveniently located Meezan Bank ATM or those of any other bank,
you can withdraw up to Rs. 20,000 per transaction and up to Rs. 20,000 per day.
You may also perform a host of transactions including transferring your funds across
any online account** or getting a mini-statement or balance information. The 24/7
ATM provides you all these facilities and much more.
24/7 Debit Card
The Meezan Bank debit card gives you the convenience of not having to carry cash as well
as helps control your spending. Unlike a credit card you cannot use the card unless
adequate funds are available in your account to cover the purchase. The simple and secure
process will work wherever the Orix network is present. This includes over 3000 merchants
across Pakistan.Making a payment via the 24/7 Debit Card:


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The cashier will swipe the Card across the Orix machine and the purchase amount
will be entered.
Select your desired account from the three options: Current, Savings, and Credit.
Enter your 4-digit ATM PIN for verification.
After verification, the machine will issue a slip. Confirm your transaction amount and
collect your 24/7 Card.
The transaction is complete and the money will be debited* from your account.
24/7 Call Center
24/7 CALL Center provides you access to a wide range of telebanking solutions and
personalized banking services.

Key features of Meezan Banks Call Center
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 ATM / Debit Card or cheque(s).

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Internet Banking
Internet banking allows having access to accounts regardless of where they may be in the
world.
Key Features
Balance Inquiry
Statement Viewing
Statement download
Cheque status
Cheque blocking
Pay order request
Complaint logging and follow ups
Fund transfers between own accounts in MBL
Change of address request
Cheque book request
Alerts and Notifications by E-mail
Low/high balance alert
Credit/debit transaction alert
Request resolution alert
Complaint resolution alert


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Account Opening Procedure

Account Opening Form
This department relates to open new accounts Customers approach to Bank and an
Account Opening is given to him for completing and signing the same. After completed
account opening form in all respect and checked by the bank officer and properly signed by
the customer which is also verified by the Operation Manager. Specimen Signature Card
are got signed form the customer and after verifying the information written theyre in,
Customers are given account number and all these informations are saved in the system.
Completion of the Form
After completed account opening form in all respect and checked by the bank officer and
properly signed by the customer which is also verified by the Operation Manager
Specimen Signature Card (SSC)
Specimen Signature Card are got signed form the customer and after verifying the
information written their in, Customers are given account number and all these informations
are saved in the system.
Signature Difference Form
The signature of the client is taken on a signature difference form if his signature differs from
the CNIC.
Computerized Checking
After filling in the form, the officer connected via internet to the NADRA website checks the
record of his customers social life. If the record of the person is ok, then the officer of the
bank authenticates the record under his signature and stamp and send it to the Branch
Manager
Account Number
After completion of all formalities, final approval for opening of account is taken form the
Branch Manager and an account number is allotted to the customer and all the informations

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are recorded in the computer. Account number is written on the cheque book requisition.
After completion of all procedures, the bank prepare a letter and send it to the client at his
postal address to pay gratitude to the customer.

Cheque Book Issuance
Cheque Book requisition for first cheque book is send to Head Office, Karachi for issuance
the same. The cheque consists of 25 leaves and no charges are deducted from the account
the account of client. There after bank sends a recommendation for 25, 50 and 100 leaves
with different prices and charges are deducted from the account of clients.

Procedure for Closing of an account

When ever a customer wants to close the account, he fills up an account closing form and
signs their in, account balance should be zero, approval is taken from the Branch Manager
specimen card is taken back and is attached with the form and account is closed.

Locker Operations

Locker facility is also available at all the branches of MBL for keeping the valuables their in
and this facility is only for account holders. As for as privacy is concerned, lockers are
located in a specially designed area protected with strong room doors and grills under the
control of two officers, operated by use of Master Key and Customers Key supplied to the
customer at the time of locker is rented out. Lockers are three types: Small, Medium and
Large lockers.
Security fee of locker is Rs. 3000 which is refundable and charges for Small Rs. 1000, for
Medium Rs. 1500 and for Large Rs. 2000 per annum.

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A separate application form is complete and signed by the customer along with SS Card
and a copy of CINC with two photographs. After completing all the formalities a locker is
allocated to the applicant and Key is given to him with locker identification card.
Procedure of issuance of Bank Statement

For issuance of bank statement a requisition slip is taken from the customer duly signed and
the period from which the customer wants to take the statement. After verification of
signature Bank Statement is issue to the customer and Rs. 55 are deducted from account of
customer
Procedure of Stop Payment

For stopping the payment, we take sign of the customer on stop payment form where in
account number with date and amount of cheque is written. Customers also mention the
reason of stop payment then we mark that cheque as stop payment. Charges of stop
payment are Rs. 250. Now the bank will not make payments of these cheques.
Procedure for ATM/PIN Issuance

Meezan Bank limited provides the ATM facility to its Customers and they can withdraw their
amount at any time through ATM. For issuance of ATM, customer has to sign an ATM form
and Bank office make an entry in the system and within 15 days bank receives ATM card
from Head Office which is given to the customer.


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PERSONAL BANKING

Meezan Bank offers the largest range of Riba-free Deposit Accounts, Term Certificates,
Consumer Financing and 24/7 Services for Personal Banking

DEPOSIT PRODUCTS

Meezan Bank offer the largest range of Riba-free Deposit Accounts for Personal Banking

Rupee Current Account
Labbaik Saving Account
Euro Saving Account
Pound Saving Account
Meezan Bachat Account
Business plus Account


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Rupee Current Account
Meezan Current Account is a Rupee-based current account that provides you the
convenience of putting your money in a Riba-free account and accessing it without any
restrictions on withdrawal while enjoying a host of professional conveniences from Meezan
Bank.
Meezan Current Account is based on Qard contract where the Bank is liable to pay your
money back on demand. The Bank can use these funds for investment and other purposes.
This account allows you the peace of mind of having your money safely deposited with a
bank with the additional assurance that the Bank is not investing your money in activities
that contravene Shariah principles.
Meezan Current Account can be opened by Individuals, Sole-Proprietorships, Partnerships
and Limited Companies.
Key features

Minimum investment required to open an account is Rs. 1000/-
Free issuance of Cheque Book
Free issuance of Pay Order
Free Online banking service at all Meezan Bank branches
Free Internet Banking facility
No restriction on withdrawals or number of transactions
No deduction on low balance maintained


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The Riba-free Rupee Saving Account is a basic banking account for every customer's need.
The account provides expected monthly returns along with a variety of free packaged
benefits.
On agreeing to become a Rupee Saving Account holder, the customer enters into a
relationship based on Mudarabah with Meezan Bank. Under this relationship, the customer
is an Investor (Rab-ul-Maal) and the Bank is the Manager (Mudarib) of the funds deposited
by the customers. The Bank allocates the funds received from the customers to a deposit
pool; funds from the pool are utilized to provide financing to customers under Islamic modes
that include, but are not restricted to Murabaha, Ijarah, Istisna and Diminishing Musharkah.
Meezan Rupee Saving Account can be opened by Individuals, Sole-Proprietorships,
Partnerships and Limited Companies.
Key features

Minimum investment required is Rs. 100
Profit will be calculated on daily product basis
Profit will be paid on monthly basis
Free Online Banking service at all Meezan Bank branches
Free Internet Banking Facility
No restriction on withdrawals or number of transactions
Globally accepted Meezan VISA Debit Card

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Free bank balance certificates
Access to priority desk

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Labbaik Saving Aasaan

Meezan Labbaik Saving Aasaan is an ideal deposit product for you if you are an individual
saver and wish to save for your spouse, children, parents, etc. You can take benefit from
this special Mudarabah based Deposit account (available in six months to twenty years
plan) for Umrah & Hajj where you will also be entitled for profit on the deposited amount,
thus providing Customers a bigger incentive to save for Umrah/Hajj through Meezan
Labbaik Saving Aasaan.
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 Islamic modes of financing, including but not limited to Murabaha,
Ijarah, Istisna and Diminishing Musharakah.
Meezan Labbaik Saving Account can be opened by Individuals, Sole-Proprietorships,
Key features

Meezan Labbaik Savings Aasaan provides a number of features including:
Available for individuals, where customers can open a single / joint account with
family members
Minimum amount to open the account is Rs. 1,000/-
Labbaik Saving Plan is available for six (06) months to twenty (20) years
Labbaik Saving Account is a Pak Rupee account
It will be a Recurring Deposit Account, where customers will deposit monthly
contribution as per the deposit schedule plan
Labbaik Saving Account is a non-chequing account, where no cheque book or VISA
Debit Card will be issued

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Apart from regular monthly deposit contribution customers can deposit additional
amounts in order to complete the deposit amount and make the desired journey
earlier than initially scheduled
After completion of the desired deposit amount, customers will have a right to travel
with Meezan Bank or redeem his funds to go with an alternate company or utilize the
funds for alternate purposes
No pre-mature withdrawal schedule will be applied
Customers may redeem 50% of the contribution as per defined procedure, one-time
in the entire deposit tenure


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Meezan Labbaik Saving Aasaan is an ideal deposit product for you if you are an individual
saver and wish to save for your spouse, children, parents, etc. You can take benefit from
this special Mudarabah based Deposit account (available in six months to twenty years
plan) for Umrah & Hajj where you will also be entitled for profit on the deposited amount,
thus providing Customers a bigger incentive to save for Umrah/Hajj through Meezan
Labbaik Saving Aasaan.
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 Islamic modes of financing, including but not limited to Murabaha,
Ijarah, Istisna and Diminishing Musharakah.
Meezan Labbaik Saving Account can be opened by Individuals, Sole-Proprietorships,
Key features

Enjoy a range of accessible features including:
Free Cheque book
Minimum investment required to open an account is $100
There is no deduction of service charges if the balance maintained is low
Profit will be paid a on monthly basis
Profit will be calculated on daily product basis, which ensures that you are getting
a return on your investment all the time
Foreign Remittances


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Meezan Euro Savings Account
The Riba-free Euro Saving Account is a Mudarabah-based savings account that you can
open and operate using Euros and is therefore an excellent business tool for individuals and
corporate clients both for meeting their business needs and for diversifying their investment
in different foreign currencies to safeguard against currency fluctuations
On agreeing to become a Meezan Euro Savings Account holder, the customer enters into a
by the customers. The Bank allocates the funds received from the customers to a deposit
pool. These funds from the pool are utilized to provide financing to customers under Islamic
modes that include, but are not restricted to Murabaha, Ijarah, Istisna and Diminishing
Musharkah .
Meezan Euro Saving Account can be opened by Individuals, Sole-Proprietorships,
Key features

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


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Meezan Pound Savings Account

The Riba-free Pound Saving Account is a Mudarabah-based savings account that you can
open and operate using UK Pounds and is therefore an excellent business tool for
individuals and corporate clients both for meeting their business needs and for diversifying
their investment in different foreign currencies to safeguard against currency fluctuations
Meezan Pound Saving Account can be opened by Individuals, Sole-Proprietorships,
On agreeing to become a Meezan Pound Saving account holder, the customer enters into
a relationship based on Mudarabah with Meezan Bank. Under this relationship, the
customer is an Investor (Rab-ul-Maal) and the Bank is the Manager (Mudarib) of the funds
deposited by the customers. 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.
Key features

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


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Meezan Bachat Account

Meezan Bachat Account is a unique saving account that provides high expected monthly
returns with the flexibility to withdraw savings if needed. Meezan Bachat Account offers a
higher expected rate of return with nearly the same convenience and service of a regular
savings account.
Meezan Bachat Account can be opened by salaried or Self-employed, Housewives and
Retired individuals.

On agreeing to become a Meezan Bachat Account holder, the customer enters into a
by the customers. On agreeing to become a Meezan Business Plus Account holder, the
customer enters into a relationship based on Mudarabah with Meezan Bank. Under this
relationship, the customer is an Investor (Rab-ul-Maal) and the Bank is the Manager
(Mudarib) of the funds deposited by the customers. The Bank allocates the funds received
from the customers to a deposit pool; funds from the pool are utilized to provide financing to
customers under Islamic modes that include, but are not restricted to Murabaha,
Ijarah, Istisna and Diminishing Musharkah.


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Key features

Minimum investment required to open an account is Rs. 25,000/-
Maximum balance limit (threshold) for getting a higher profit weightage is Rs.
5,000,000/-
Profit will be calculated on the Daily Product Basis
A lower weightage will be applicable for profit calculation if the daily closing balance
of the account exceeds a specified threshold (currently Rs. 5,000,000/-)
Profit payment is made to your Meezan Bank account on a monthly basis.


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Meezan Business Plus

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


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Key features

Minimum investment required to open an account is Rs. 100/-
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. 25,000/-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
No charges for Pay Order Cancellation


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Meezan Kids Club Account

Are you still not 12 years old? Then Meezan Bank has something very special for you; a
chance of having your own Mudarabah-based Meezan Kids Club Account.
You can now put all your pocket money, Eidi and all your other cash in this account, where
it will be safe and invested in line with Islamic principles.
When you get this account opened, you will get to learn a lot more about managing your
savings. We will also make sure you have fun while learning to save the right way.
Key features

Specifically for kids under the age of 12 years
Open your account with Rs. 500/- only
Exciting gifts on account opening
Halal profit every month
Free personalized 'Kids Club Certificate'
Free personalized Cheque Book
SMS alerts on your transactions
Free first Visa Debit Card in different colors for boys and girls
No minimum account balance requirement
The account is in your name; however, you need your parents/guardians help for
using it.
After your 12th birthday, you can be a member of the Meezan Teens Club Account,
which will open a whole new world of activities and fun.
Free Education Takaful cover for one year on opening the account with Rs.10,000/


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Meezan Teens Club Account

With the mission to offer one-stop innovative value-added Shariah compliant products and
services, Meezan Bank is pleased to launch yet another novel product - Meezan Teens
Club Account dedicated to the teens of the country. The account is based
on Mudarabah principles.
Meezan Bank is a keen Socially Responsible Organization and realizing this responsibility,
the Teens Club Account aims to provide a forum to teens where their maturing minds are
groomed in a modern yet Islamic way. The Teens Club Account provides a blend of fun
learning with special focus on character and value building.
Alhamdulillah, we also feel grateful for being the first Bank in the country which has realized
the specific needs of teens and have tailored the Meezan Teens Club Account as such,
packed with exciting features that teens would really appreciate.
Meezan Teens Club Account is a Mudarabah- based relationship where you will be the
Investor (Rab-ul-Maal) and the Bank will be the Manager (Mudarib). Your funds will be
utilized by the Bank to provide Islamic financing to customers.
The Bank will announce monthly profit on the Gross Income level based on profit sharing
ratios and weightages announced at the beginning of the month. Latest profit sharing ratios
and weightages of your Teens Club Account are available on the Bank's website
www.meezanbank.com or can also be requested from the branches. 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.

Key features

Specifically for teens of 12 to 18 years of age
Open your account with Rs. 1,000/- only

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Free personalized 'Teens Club Certificate'
Free Online Banking Service at all Meezan Bank branches
Free Education Takaful cover for one year on opening the account with
Rs.10,000/-
TERM CERTIFICATES (RIBA- FREE TERM DEPOSIT
CERTIFICATE)

Meezan bank provides a complete range of short term and long term deposit certificate with
the flexibility of monthly, quarterly, semi-annual and annual returns




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The Certificate of Islamic Investment (COII) is a Mudarabah-based deposit product through
which you can invest your savings for periods ranging from 3 months to 5 years and
earn Halal profit on a periodic basis.
The Certificates of Islamic Investment is an ideal investment for Individuals, Sole
Proprietorships, Partnerships and Limited Companies.

Key features

Enjoy a range of valuable features including
Investment can be made for 3 months, 6 months, 1 year, 2 years, 3 years and 5
years
Profit payment options are monthly, quarterly or at maturity
Minimum investment required for quarterly and on-maturity payment is Rs.
50,000/
Minimum investment required for monthly profit payment is Rs. 200,000/
Pre-mature withdrawal can be made as per approved schedule


Meezan Amdan Certificate is a Mudarabah-based long-term deposit product that offers a
high expected return to investors and is ideal for those individuals and corporate clients who
need a regular stream of monthly income.
Meezan Amdan Certificates work on the principle of Mudarabah under which the customer
is an Investor (Rab-ul-Maal), and the Bank is the Manager (Mudarib) of the funds deposited
by the customer.

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The Bank allocates the funds received from the customers to a Deposit pool; funds from the
pool are utilized to provide financing to customers under Islamic modes that include, but are
not restricted to Murabaha, Ijarah, Istisna and Diminishing Musharakah. Meezan Teens
Club Account is a Mudarabah- based relationship where you will be the Investor (Rab-ul-
Maal) and the Bank will be the Manager (Mudarib). Your funds will be utilized by the Bank to
provide Islamic financing to customers.

The Meezan Amdan Certificate is available for Individuals and businesses including Sole

Key features

Minimum investment required is Rs. 100,000/
Minimum investment for widows and senior citizens is Rs. 50,000/-
Investment can be made for 5 1/2 years and 7 years
Profit payment is made to your Meezan Bank account on a monthly basis
Free first cheque book for customers who open an account for MAC issuance


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The Riba-Free Monthly Mudarabah Certificate (MMC) is a short-term deposit product which
has been designed to give you expected monthly returns.
Monthly Mudarabah Certificates work on the principle of Mudarabah under which the
customer is an Investor (Rab-ul-Maal), and the Bank is the Manager (Mudarib) of the funds
deposited by the customer. The Bank allocates the funds received from the customers to a
Deposit pool; funds 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 Musharakah.
The Monthly Mudarabah Certificate is available for Individuals and businesses including
Sole Proprietorships, Partnerships and Limited Companies.
Key features
Minimum Investment required is Rs. 100,000/-
Investment period is one month with re-investment option available on a continuous
basis
Monthly profit payment will be made to your Meezan Bank account


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The Dollar Mudarabah Certificate (DMC) is a deposit product through which you can invest
your US Dollars with Meezan Bank for periods ranging from 3 months to 3 years and earn
six-monthly or at maturity profit payments on your investment.
Dollar Mudarabah Certificates (DMC) work on the principle of Mudarabah under which the
customer is an Investor (Rab-ul-Maal), and the Bank is the Manager (Mudarib) of the funds
deposited by the customer. The Bank allocates the funds received from the customers to a
Deposit pool; funds 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 Musharakah.
The Dollar Mudarabah Certificate is an ideal investment for Individuals, Sole
Key features

Minimum Investment required is USD 10,000/-
Investment tenures are 3 months, 6 months, 1 year and 3 years
Profit payment will be made either at maturity or on a six-monthly basis to your
Meezan Bank Dollar Saving Account
Pre-mature withdrawal options available as per approved Early Redemption
Schedule


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Kids Club Account

Are you still not 12 years old? Then Meezan Bank has something very special for you; a
chance of having your own Mudarabah-based Meezan Kids Club Account.
You can now put all your pocket money, Eidi and all your other cash in this account, where
it will be safe and invested in line with Islamic principles.
When you get this account opened, you will get to learn a lot more about managing your
savings. We will also make sure you have fun while learning to save the right way.
Key features

Specifically for kids under the age of 12 years
Open your account with Rs. 500/- only
Free personalized 'Kids Club Certificate'
The account is in your name; however, you need your parents/guardians help for
using it.
After your 12th birthday, you can be a member of the Meezan Teens Club Account,
which will open a whole new world of activities and fun.
Free Education Takaful cover for one year on opening the account with Rs.10,000/


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CONSUMER FINANCE

Consumer finance provides for construct a home, purchase a car, etc:
Easy Home
Car Ijarah
Laptop Ease

Easy Home

Easy Home is a Shariah-compliant Home Finance facility! One that is comprehensive,
affordable, and totally hassle-free. Meezan Bank is committed to meet our customers needs
in a truly Shariah-compliant manner coupled with dedicated service excellence. Why not
have the best of both worlds? Isn't that what you are working so hard for anyway?
Easy Home not only allows you to own your own home by paying easy installments but also
keeps you safely away from interest based financing.

Easy home works on a diminishing musharakah basis

With Easy Home you participate with Meezan Bank in joint ownership of your property,
where the Bank will provide a certain amount of financing. You agree to a monthly payment
to the bank of which one component is for 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 property.


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Car Ijarah

As a step towards Meezan Banks mission to provide a one-stop shop for innovative value-
added Shariah compliant products, Meezan Banks Car Ijarah unit provides car financing
based on the principles of Ijarah and is free of the element of interest.
Car Ijarah is Pakistans 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, designed under the supervision of Meezan Banks Shariah Supervisory Board, is
unique to car leasing facilities provided by other banks.

Rights & liabilities of Owner v/s User
An Islamic Ijarah is an asset-based contract, i.e. the Lessor should have ownership of the
asset during the period of the contract. Under Islamic Shariah, all ownership related rights
and liabilities should lie with the owner while all usage-related rights and liabilities should lie
with the user. A conventional lease contract does not distinguish between the nature of
these liabilities and places all liabilities on the user of the asset, which is contradictory to
Islamic Shariah.


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Under Ijarah, all ownership-related risks lie with the Bank while all usage related risks lie
with the user, thus making the Lessor the true owner of the asset and making the income
generated through the contract permissible (Halal) for the Bank.
Continuation of lease rentals in case of total loss or theft of vehicle
If the leased vehicle is stolen or completely destroyed, the conventional leasing company
continues charging the lease rent till the settlement of the Insurance claim. Under the
Islamic system, rent is consideration for usage of the leased asset, and if the asset has
been stolen or destroyed, the concept of rental becomes void. As such, in the above-
mentioned eventualities, Meezan bank does not charge the lease rental.

Takaful instead of Insurance
Legally (in accordance to Pakistans Law and Regulations), it is required for all leasing
entities to insure the leased assets. As such, Meezan Bank insures its leased assets.
Meezan Bank insured its assets through Takaful only, which is the Islamic product for
insurance.

Permissibility for Penalty of Late Payment of Rent under Islamic Shariah
In most contemporary financial leases, an extra monetary amount is charged, in their
income, if the rent is not paid on time. This extra amount is the considered as Riba and is
Haram. Under Ijarah, the Lessee may be asked to undertake, that if he fails to pay rent on
its due date, he will pay certain amount to a charity, which will be administered through the
Islamic Bank. For this purpose the bank maintains a charity fund where such amounts may
be credited and disbursed for charitable purpose.


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Meezan Laptop Ease

Meezan Bank provides Shariah Compliant Laptop financing facility for individuals as well as
Corporate groups
Laptop Ease is a Shariah-compliant Laptop Finance facility! One that is comprehensive,
affordable and totally hassle-free. Meezan bank is committed to meet customers needs in a
truly Shariah-compliant manner coupled with dedicated excellence.
Special Features

Following are few special features of this affinity program:
Easy Installment options for financing period for 3 to 24 months.
1 year warranty for Dell, HP & Apple Products provided by vendor.
Free Carrying Case for Dell & HP laptops provided by vendor.
Dedicated Call Center for addressing after-sale issues provided by vendor
Free Takaful (Islamic Insurance) cover upto 100% incase of damage and upto 50%
incase of theft of laptop
Complete surety and peace of mind that purchased laptop is a genuine brand
Laptop model offerings will vary from time to time in consistence with the latest &
upgraded features and market demand.

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ELECTRONIC BANKING

Electronic Banking provides non-stop banking convenience, twenty four hours a day, seven
days a week.

Visa Debit Card
Internet Banking
ATM Network
Meezan Quickpay
SMS Alerts
24/7 Call Center

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!


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Annual Charges
VISA Silver Card 50 per Annum plus Tax
VISA Gold Card 00 per Annum plus Tax
Card Replacement Charges (Lost, Stolen, Damaged)
VISA Silver & Gold Card 50 per Replacement plus Tax
Visa / MasterCard Arbitration Charges
(False Charge backs local & international 00 or PKR equivalent per case

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.
Facilities

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

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Balance inquiry of multiple accounts
View account statement
Funds Transfer Facility (Personal & Third Party Meezan Bank Accounts)
Funds Transfer to your own account
Transferring funds between the same title of account within the limit of
Rs.100,000 per day.
Fund Transfer to any Meezan Bank account
Transferring funds to any Meezan Bank account has never been this fast, secure and
convenient!
Simply log on to Meezan Internet Banking, register upto three beneficiaries and click to
transfer funds instantly and free-of-charge! All you need is a valid e-mail address
registered with us.
With a funds transfer limit as high as Rs. 100,000 per day, there is no reason to stand in
queues!
Bill Payments: Utility and Mobile Phones
Cheque book and pay-order request
Lodging and tracking status of complaints
Account activity alerts
Meezan Quick Pay

QuickPay allows you to pay your Utility and Mobile Phone Bills anytime, without waiting in
queues at the banks counter! Meezan QuickPay service is available 24hours, 7days a week
via Meezan Banks free Internet Bankingfacility and via the Meezan ATM Network.
SMS Alerts


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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).
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.
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 & 111-331-332 (dial +92-21-111-
331-331 & +92-21-111-331-332 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

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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.

Inter Bank Funds Transfer

Meezan Bank offers Inter Bank Funds Transfer (IBFT) facility to our Visa Debit card
customers. A fast, secure and convenient service which allows you to transfer funds to the
following member banks through our network of nation-wide ATMs: -

IBFT Member Banks

Allied Bank Limited
APNA Bank
Askari Bank Limited
Bank Alfalah Limited

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Bank of Punjab
Bank al Habib
BankIslami Bank
Burj Bank Limited
CitiBank
Dubai Islamic Bank
Faysal Bank Limited
Habib Bank Limited
J S Bank
KASB Bank Limited
NIB Bank Limited
Samba Bank
Silk Bank
Sindh Bank
Soneri Bank Limited
Standard Chartered Bank
Summit Bank
Tameer Bank
United Bank Limited


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Key Benefits

Instant and real-time funds transfer
24/7 funds transfer facility
Eliminates use of cash & cheques


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SERVICES

Meezan Bank is dedicate in its efforts to provide a quality banking experience to our
customer via a range of unique Banking Services

Labbaik Travel Aasaan
Online Banking
8 to 8 Banking
Ladies Banking
Home Remittance
Western union Money Transfer

Meezan Labbaik

Labbaik Travel Aasaan is a completely Halal & Riba Free Travel Solution, ideal for you &
your family if you wish to perform Umrah / Hajj with the comfort and convenience. Please
visit your nearest Meezan Bank branch, Select Umrah Package of your selected travel
agent and perform your religious rituals with peace of mind.
Key Features

Packages available for desired days and durations for both Makkah & Madina
Complete Visa Processing
Confirmed return airline tickets on desired Airline subject to seat availability
Accomodation available in 3,4 & 5 star Hotels in Makkah & Madina
Complete Transport by Bus for Groups
Double Umrah facility may be provided upon request
Ziarat in Makkah & Madina may also be provided upon request
Packages for different duration & facilities are also available

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\
Online Banking

Our free Online Banking facility allows all customers to access their account and conduct
banking transactions from any of Meezan bank's branches nationwide. Our online facility
makes it easy to deposit and withdraw cash, make pay-order requests and access
numerous banking services from any Meezan Bank branch even if the account is based in a
different city.
Our free Online Banking, offers the following services:
Real-time cash deposit, instantly crediting your account!
Real-time cash withdrawal upto Rs. 5 million, giving you access to your money
from anywhere in the Country!
Transfer of funds between your Meezan Bank accounts
Deposit and collection of clearing Cheques drawn within the same city
Issuance of Pay-order from any Meezan Bank branch

Ladies Banking

Meezan Bank is the first bank 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 female customers in a comfortable environment.
Services provided at the Ladies Banking Section include:
Special Banking 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

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Retail Banking: Current & Savings Accounts, Foreign Currency Accounts,
Term Deposits
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.
Western Union

You can now transfer money conveniently and in real-time to Pakistan within minutes via the
Western Union Money Transfer Service available at all Meezan Bank branches in Pakistan.
Money may be remitted via any of the Western Union service providers located in over 200
countries worldwide. This service is available to all! You do not need to have a Meezan
Bank Account to avail this service.
Western Union is a world leader in the money transfer business with global presence and
international recognition. Meezan Bank is the first and only Islamic Bank to provide this
service in Pakistan.

Meezan Easy Remit

Meezan Bank Limited in its pursuit to explore the initiative under the aegis of State Bank of
Pakistan and Pakistan Remittance Initiative (PRI) have started Home Remittance Business.
Meezan Bank is providing a fully automated, end-to-end solution and state-ofthe-art
remittance service known as Meezan Easy Remit to facilitate Home Remittances sent to
Pakistan by Expatriate Pakistanis/ Non Resident Pakistanis (NRPs). Meezan Bank has
been significantly important in originating home remittance to Pakistan, and is continuously
working to develop innovative ideas for maximizing its reach to all Pakistanis abroad.
Meezan Banks real-time online branch network is fully capable and geared to provide
domestic distribution of remittances to beneficiaries receiving money in Pakistan. A payment

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can therefore be collected by a beneficiary from any of our branches, being real time on-line
also gives us the advantage to centrally manage and process incoming instructions, thus
making the end-to-end process simple and efficient and giving us the opportunity to provide
single window service and support to our partners/correspondents as well. There are three
modes of payment to facilitate beneficiaries of Home Remittances:-
Cash Payments Over the Counter up to PKR 500,000/- Remittance can be
received from any branch of Meezan Bank, in cash instantly, without beneficiary having any
bank account.
Remittance can also be credited to beneficiary's account in real time, swiftly.
Other Banks beneficiaries Payments can be made through Real Time Gross
Settlement System (RTGS) for onward credit to beneficiary's account maintaining with PRI
Participating Banks.


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Asset Management

Al Meezan Investment Management Limited (Al Meezan) is the largest manager for Shariah
compliant funds in Pakistan. 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 has emerged as one of Pakistans leading flagships of Mutual Funds business
managing assets of a large investor base of over 20, 000. Our solutions offer a range of
Shariah complaint investment options, including diversified equity schemes, monthly income
funds, a wide range of income and money market products, capital protected fund series
and voluntary pension scheme. Al Meezan has one of the longest and the most successful
track record of managing mutual funds in the private sector, spanning over 17 years.
Al Meezan is presently managing nine funds and an administrative plan under following
categories:
Open end funds
Voluntary pension scheme
Close end funds
Administrative plan
The total size of these nine funds under management as at December 31, 2012 is over
PKR 43 billion as compared to PKR 36.2 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.


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BUSINESS BANKING

Meezan Banks Business Banking is geared towards providing comprehensive and
innovative financial solutions through a diverse product offering. Aimed at nurturing and
developing long-term relationships with our clients we take great care in understanding each
clients unique requirement and accordingly provide Shariah-compliant solutions.
Corporate Banking

Meezan Banks Corporate Banking is geared towards providing comprehensive and
innovative financial solutions through a diverse product offering. Aimed at nurturing and
developing long-term relationships with our clients we take great care in understanding each
clients unique financing requirements and accordingly provide Shariah-compliant financing
solutions.
At present we cater to a large number of multinational and local clients representing various
sectors of the economy. By providing financial solutions for the needs of the Small &
Medium Enterprises (SMEs) and having recognized the significance and diverse business
needs of the Commercial Banking sector in the country, Meezan Bank is committed towards
developing tailored financial solutions and assisting the growth of the corporate sectors in
Pakistan.
Our dedicated Relationship Managers, supported by our Branch staff provide high quality
service at competitive and market-driven pricing to all customers.
Deposit Accounts

Meezan Bank offers the largest range of Riba-free Deposit Accounts for Business Banking
Business Plus Account - Serving you the perfect blend of convenience and flexibility
Karobari Munafa Account - Specially tailored for Corporate entities

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Islamic Institution Deposit Account - A unique Deposit Account for Islamic Financial
Institutions (IFIs)
Rupee Current Account - A Convenient, Secure and Stable Deposit Account
Rupee Savings Account - Ensuring Truly Halal Savings with Comprehensive Returns
Meezan Bachat Account - The convenience of a Saving Account with Halal Profit
Labbaik Saving Aasaan - A specialized Saving Account designed to save
for Umrah & Hajj
Dollar Saving Account - A Truly Halal Dollar Saving Account
Euro Saving Account - A Truly Halal Euro Saving Account
Pound Saving Account - A Truly Halal Pound Saving Account

Islamic Agricultural Financing

Meezan Bank is considered as a trend setter in Islamic Banking in Pakistan mainly on
account of offering wide range of Shariah-Compliant banking solutions to cater different
needs of its customers. Following its track record, Meezan Bank is now offering Islamic
Agricultural Financing Products to farmers.
In addition to permissible modes of financing, we offer the following specific Agricultural
Financing products:

Meezan Tractor Aasaan

To fulfill the essential requirement of Tractors for mechanized farming.
Meezan Agri Aasaan


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To provide financing opportunities on a fast track basis with maximum ease and comfort. It
offers trade, participatory and rental based modes of financing.

Meezan Fasl Aasaan

To provide financing for agricultural input requirements for farmers who may receive full
payment of agri produce in advance against deferred delivery of goods on a specified future
date.

Investment Banking

Realizing the increasingly diverse needs of our customers for advisory and structured
finance transactions, a specialized department focusing on Investment Banking services
has been established at Meezan Bank. The department is geared towards providing
comprehensive and innovative financial solutions through a diverse product offering,
providing a broad array of financing solutions to the banks clients. The focus is on nurturing
and developing long-term relationships with clients by understanding their unique financing
requirements and providing Shariah-compliant financing solutions.
In a short span of time, the Investment Banking department has been able to develop core
expertise in arranging syndicated, structured and Project finance and providing advice on
mergers and acquisitions, buy-side / sell-side advisory, financial restructuring, structured
equity and venture capital investments.

Key services

Syndications & Structured Finance

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Structured finance involves highly complex financial transactions. It is useful in cases where
standard financing products do not meet a companys requirements. MBLs Investment
Banking department offers uniquely structured transactions for its customers based on
various modes of Islamic finance including Ijarah, Diminishing Musharakah and Istisna.
Project Financing
Project financing involves financing of long-term infrastructure and industrial projects.
These are non-recourse or limited recourse financings where project debt and equity used
to finance the project are paid back from the cash flows generated by the project. Meezan
Banks Investment Banking department has a proven track record of successfully executing
numerous Project Finance transactions despite its recent entry in the financial market.
Meezan also has the honour of being the pioneer in successfully executing the first ever
project financing transaction in the Islamic banking sector of the country.
Advisory Services
The Investment Banking department at Meezan Bank has recently set up a team to handle
its Corporate Advisory business. The department is currently strengthening its existing
expertise of providing Advisory Services by employing professionals to help the bank
customers decide the best financial approach for their businesses.
Treasury
Meezan Banks treasury is guided by Shariah with the objective of reviewing, streamlining,
and controlling the banks domestic and international Treasury-related operations. Treasury
caters to the branches and customers for their entire foreign exchange requirement with
efficiency and professionalism. Ready/ spot as well as all forward cover services are
provided to branches/customers within Shariah guidelines. Customers are also provided
advice on a regular basis about the currency movement by the dealing room augmented by
market outlook (without any commitment & obligation).
Treasury has enhanced its market activity with increased depth and enhanced volumes,
making an impact in the inter-bank FX market. Due to its market standing and good

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relationship with other treasuries, Meezan's treasury has the ability to generate sufficient
amount of liquidity at any time through the inter-bank market.
Meezan Bank conducts Sukuk / Commodity Murabaha transaction to optimize its returns on
its PKR / Dollar portfolio, besides participating in local/ international Sukuk issues, e.g.
GOP, WAPDA, Qatar, Dubai Sukuks, etc. This treasury is the only treasury in Pakistan with
a mandate to provide Shariah-compliant investment opportunities in capital market that
provides Halal income to the shareholders
Financial Institutions & Correspondent Banking

Financial Institutions, a part of the Treasury and F.I. Group, primarily focuses on building
and maintaining relationships within the financial sector. Relations range from authenticated
communication links by way of SWIFT RMA to Trade, Treasury and account maintenance in
different currencies worldwide. With over 258 banks in 80 countries, our 600 globally located
correspondents provide all trade services, seeking to add value and service to our branches
and functional units. Services include advising, confirmation, discounting of letter of credits,
reimbursement undertakings and standby LCs and guarantees. Further, the ever-
increasing SWIFT RMA relationships with financial institutions serve to route all kinds of
transactions.

Islamic Financial Advisory Services

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 Banks 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.

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Term Certificates

Meezan Bank provides a complete range of short and long term deposit certificates for
businesses
Certificate of Islamic Investment - Offering a range of investment tenures from
3months to 5 years
Meezan Amdan Certificate - A long-term investment with a monthly high expected
return
Monthly Mudarabah Certificate - A short-term investment certificate designed to
provide regular monthly returns
Dollar Mudarabah Certificate - An investment certificate to invest US Dollars and
earn semi-annual or profit at maturity
Competitors

The major competitors of Meezan Bank Limited are Bank Islami, Dubai Islamic Bank
Pakistan Ltd, Albarka Islamic Bank. The other competitors are Bank Al-Falah Limited, Bank
Al Habib Limited, Askari Bank Limited, United Bank Limited, Allied Bank Limited, Soneri
Bank Limited, Faisal Bank Limited.

DEPARTMENTS & THE PRODUCTS OFFERED AT THE
BRANCH

There are 5 main departments at the branch

1-CUSTOMER SERVICES DEPARTMENT
2-OPERATIONS DEPARTMENT

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3-CREDIT DEPARTMENT
4-TRADE FINANCE DEPARTMENT
5-CASH DEPARTMENT


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CUSTOMER SERVICES DEPARTMENT

Account opening and closing is the function of customer services deptt. The banks
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
Products offered by this department:
Riba Free Rupee Savings Account
Current account
Saving Account
Riba Free Dollar Savings Account DBMS, University of Agriculture, Faisalabad.
Foreign currency account

RIBA FREE-RUPEE SAVING ACCOUNT
As a step towards the mission of providing a one-stop shop for innovative value added
products to our customers, Meezan Bank is pleased to offer
RIBA FREE
Current Account, a flexible Rupee based account that is ideal for businesses and individuals
looking for Shariah compliant banking and professionalism under one roof. The deposits of
the customers together with the banks contribution are invested in a pool that consists of
Ijarah and Murabaha financing. The profit earn on this pool is calculated every month, and if
you maintain a minimum average monthly balance of Rs.10, 000/- you shall be eligible to
receive profits that will be disbursed to you every month. But if ur balance is less than
10000 then u get no profit or no penalty is charges to u. there is no fixed profit b/c every
month new rate declared.


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Requirements:

Mini deposit:::::::::::::::::::::::::::::::::::::Rs.10,000/- only Other requirements are mentioned in
detail in appendix.
CURRENT ACCOUNT
Current account is basically used to meet the daily transactions. The money kept in current
account is in the form of CARZ-E-HASNA gives the advantage for paying debts by the
convenient and safe means of sending cheques through the post thus avoiding the trouble
and loss.
Requirements:
detail in appendix.
b) Riba Free Dollar Savings Account
The return earn on the Mudarba pool is calculated every month and profit ratio is declared
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 will be disbursed to you every month.
Requirements
Mini deposit:::::::::::::::::::::$100 under Mudarba arrangement. Other requirements are
mentioned in detail in appendix


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CURRENT ACCOUNT

Current account is basically used to meet the daily transactions. The money kept in current
account is in the form of CARZ-E-HASNA gives the advantage for paying debts by the
convenient and safe means of sending cheques through the post thus avoiding the trouble
and loss.

Requirements
detail in appendix.
b) Riba Free Dollar Savings Account
The return earn on the Mudarba pool is calculated every month and profit ratio is declared
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 will be disbursed to you every month.
Requirements
Mini deposit:::::::::::::::::::::$100 under Mudarba arrangement. Other requirements are
mentioned in detail in appendix
BASIC OF ACCOUNT OPENING
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

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be opened, so far this purpose the client is given detailed information about the accounts
and their respective profit rates.

TYPE OF ACCOUNTS OPENED
CURRENT
SAVING
TERM DEPOSIT

Sub-categories of Accounts and the Basic Requirements: MINOR ACCOUNT
Bay form and copy of passport minor
National Identity card of Guardian
Signature requirement of guardian
INDIVIDUAL ACCOUNT

Copy of national identity card
Complete account opening form
Letter of introduction if required
Visiting Card (if the person is employed)

JOINT ACCOUNTS

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.

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Requirements
National Identity card of all Applicants.
Signature of all Applicants.
Zakat Affidavit of all Applicants (zakat Exemption).
Operation of account clearly mentioned.
The options available to operate the account are:
J ointly
Either or Survivor
Other(s)(Please specify)
CLUB /SOCIETY/ASSOCIATION [Requirements]:
Certified copy of resolution
Certified copy of rules
Copies of National Identity cards of all directors/passports
Completed account opening form
Specimen Signature Card
TRUSTS ACCOUNTS
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
CORPORATE ACCOUNTS
ACCOUNTS OF SOLE PROPRIETOR (Requirements)
Declaration Letter
Copy of NIC/Passport of the proprietor
National Tax Certificate

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Declaration of Sole Proprietor on company letterhead
Business registration Certificate
Specimen Signature Cards and completed accountopening form.
ACCOUNT OF PARTNARSHIP (Requirements)
Partnership Deed, certified copy.
Photocopies of NIC of all partners.
Partnership Mandate (Prescribed Format).
ACCOUNT OF LIMITED COMPANIES (Requirements)
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
ACCOUNTS OF LITERATE [Photo Account]
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 him in order to withdraw any cash or
deposit the cheque.

Requirements:
Photocopy of NIC of Account Holder.
Two-three passport size photographs
Verification of the customers credentials.
The suitability of the prospective customer.

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State Banks rules and regulations.
The Banks own policy.
The prospective profitability of the relationship.
PROCEDURES FOR ACCOUNT OPENING

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.
REQUISITION SLIP
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.
LETTER OF THANKS
After opening the account A Letter Of Thanks is send tothe customer in order to thank the
customer for opening an account in the Bank. This letter tells all the information regarding
his/her account, which are kept very confidential.
ACCOUNT OPENING REGISTER
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

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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.
Overall functions performed by Customer Services Department:
ACCOUNT OPENING
ACCOUNT CLOSING
GENERAL CLIENT DEALING

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OPERATIONS DEPARTMENT
FUNCTIONS PERFOMED

Clearing REMITTANCE
CLEARING
Inward clearing
Outward clearing
INWARD 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 returni ng a cheque:
All required stamps of Clearing, Crossing andEndorsement are not present on cheques.
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 returnedthrough NIFT and deducts Rs.
300 from customer account ascheque returned charges.For this purpose an entry is passed
on multi entry voucherlike:Customers AccountDr.State Bank Of PakistanCr.Cheque
returned chargesDr.Other commissionsCr. Then the report of returning any cheque is sent

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through faxto the head office Karachi. After this put the entry in Chequereturn register
showing the following columns:
Date
Title of account
Account number
Cheque number
Bank and Branch name
Reason to return
OUTWARD CLEARING

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
dayafter depositing a cheque. In outward clearing, the entry is made like: Customer Account
Cr.State Bank of Pakistan Dr. This entry is made when we come to know about the clearing
of all cheques, which are sent to other banks.
SERVICES PROVIDED
Transfer of amountii.telling account balances
Issuing cheques books
Transfer of amount
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 banks endorsement stamp on the backside of the cheque

Telling account balances

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Whenever clearing officer receives phone call from thecustomer inquiring about his/her
account balanceafter confirming the name, address and otherinformation he tells the
balance through computer.
Issuing cheque books
It is also the duty of department to issue a chequebook whenan officer receives request
from the customer.
Remittance
Pay order
Demand drafts
Inward collection
Outward collection
PAY ORDER

Pay order is an order to pay money but this payment is to bemade within city. In other words
it can be said that thepayee and the payer should be in one city
In pay order the payment can be made inA) CashB) ClearingC) Transfer
Procedure:
In case of pay order first of all the customer has to fill a payorder application form in favoring
section: name, accountnumber, amount, beneficiary name, address, etc. The data is
entered in already set format of pay order incomputer and pay order print out is taken. An
authorizedperson and manager operations are signed pay order. The original copy of the
pay order is given to the customerand carbon copy is kept with bank for office record.

DEMAND DRAFT


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An order to pay money to the payee who is residing outsidethe city. DD can be for a
customer who may or may not havean account in the bank but the other persons account
mustbe maintained with the bank for which the payer hasdemanded the DD.
INWARD COLLECTION
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.
PROCEDURE
After receiving the cheque, an entry is made in inward collection register and then all
stamps are affixed on the cheque (clearing, endorsement, IC #stamp) and make outward
clearing voucher which shows the following entry: Remittance payable Cr.On the next
evening after the delivery of clearing cheques make reversal entry like Remittance Payable
Dr.Respective Branch Cr.Also make a fax message to inform the respective branch that we
have credited their nostro account.
Other functi ons under operati ons department l ockers
Lockers operations shall not be permitted under power of attorney of a customer. A
customer wishing to allow anotherperson or agent may be requested to open a new
lockeraccount under joint names and close the existing account.In offering this facility
branches have to be selective andshould provide lockers to the customers whose identity
andintegrity isverified, who should maintain account with the branch andhave potential for
deposits and other banking business. It isreiteratedthat honesty, creditability and good
reputation of thecustomer is of utmost importance in the selection of customer for lockers.

KEY FEATURES

Available in selected branches

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Available in 3 sizes
For all eligible Account Holders
Key security Deposit PKR 3000
Procedure
Application on Prescribed Form duly filled
Saving/Current Account with MBL
02 Passport size Photographs
Charges
Key Deposit PKR 3000/
Small PKR 1000/Year
Medium PKR 1500/Year
Large PKR 2000/Year
Locker breaking charges Rs 3000
Cheque Books Handling
Application for New Cheque Book
CHARGES
PKR 03/Leaf for Saving Account Cheque Book
PKR 01/Leaf for Current Account Cheque Book
PKR 01/Leaf for FCY Account

(No Charges for Cheque Books of Karobari Munafa Account)
RIBA FREE TERM DEPOSITS OFFERED BY BANK

Monthly Mudarabah Certificates
Dollar Mudarabah Certificates
Meezan Amdan Certificates

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Meezan Providence Certificate

Riba-Free Certificate of Islamic Investment (COII) worksunder the principles of Mudarabah
and is strictly inconformity with the rules of Islamic Shariah.On agreeing to become a COII
holder, the customer entersinto a relationship, based on Mudarabah, with Meezan
Bank.Under this relationship, the Customer is an Investor (Rab u Mal), and the Bank is the
Manager (Mudarib) of the fundsdeposited by the customers. The bank allocates the funds
received from the customers toa deposit pool. These funds are utilized to provide
financingto customers under Islamic modes that include, but are notrestricted to, Murabaha
and Ijarah.
Tenor
3 Months
6 Months
1 Year
2 Years
3 Years
5 Years
Profit Payment Options

3 Months on maturity, 6 months on maturity,1 year monthly or quarterly min investment
200K 2 year monthly or quarterly min investment 200K 3-5 year monthly or quarterly min
investment 200K
There will be different rate of profit according to the profit payment option and amount and
tenor.

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Pre-mature encashment

In case of pre mature encashment the profit rate will becalculated according to the
completed tenor, if extra profit ispaid that will be recovered
No pre-mature encashment penalty in MBL
Payment of Premium
Bank pay premium from its own share of profit to high depositors.
Premium Rate


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Karobari Munafa Account

Riba-Free Karobari Munafa Account works under the principles of Mudarabah and is strictly
in conformity with therules of Islamic Shariah.On agreeing to become an account holder, the
customerenters into a relationship based on Mudarabah with Meezan Bank. Under this
relationship, the Customer is an Investor(Rab ul Mal), and the Bank is the Manager
(Mudarib) of the funds deposited by the customers. The bank allocates the funds received
from the customers toa 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
and Ijarah.
Profit calculated on daily basis and paid monthly
No minimum balance requirement
No restriction on deposit/withdrawals
Free Cheque Books, Pay Orders and Online Banking
Dedicated Account/Relationship
High return for high depositors
Monthly Mudarabah Certificates

RibaFree Monthly Mudarabah Certificates is a flexibleinvestment product which has been
designed to give you amonthly return which is Halal. The minimum investmentrequired is
only Rs. 100,000 and you receive profit for eachcomplete month of investment with the
Bank.
How Monthly Mudarabah Certificates works?

Riba-Free Monthly Mudarabah Certificate (MMC) works underthe principles of Mudarabah
and is strictly in conformity withthe rules of Islamic Shariah.On agreeing to become a MMC
holder, the customer entersinto a relationship based on Mudarabah with Meezan
Bank.Under this relationship, the Customer is an Investor (Rab ulMal), and the Bank is the

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Manager (Mudarib) of the fundsdeposited by the customers. The bank allocates the funds
received from the customers toa deposit pool. These funds from the pool are utilized
toprovide financing to customers under Islamic modes thatinclude, but are not restricted to,
Murabaha and Ijarah.
Features:
Minimum requirement of PKR 100K
Profit disbursement on maturity
Tire system for profit payment (Refer Rate Sheet)
No payment on premature encashment
Dollar Mudarabah Certificates

On agreeing to become a DMC holder, the customer entersinto a relationship based on
Mudarabah with Meezan Bank.Under this relationship, the customer is an Investor (Rab
ulMaal), and the Bank is the Manager (Mudarib) of the fundsdeposited by the customers.
The Bank allocates the funds received from the customers toa deposit pool. These funds
from the pool are utilized toprovide financing to customers under Islamic modes thatinclude,
but are not restricted to, Murabaha and Ijarah.
Requirements:
In USD only
Individuals and Corporate
Minimum i nvestment 10K and above
Tenor
3Months
6Months
1Year
3Years
Profit payment Options:

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3MonthsMaturity
6MonthsMaturity
1year6 Monthly or Maturity
3years6 Monthly or Maturity
Meezan Amdan Certificates

The Riba-Free Meezan Aamdan Certificate (MAC) is a long-term deposit certificate with an
exceptionally high monthlyprofit designed especially for those individuals andcorporations
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.Working The Riba-Free Meezan
Aamdan Certificate (MAC) worksunder the principles of Mudarabah and isstrictly in
conformity with the rules of Islamic Shariah.On agreeing to become a MAC holder, the
customer entersinto a relationship based on Mudarabah with Meezan Bank.Under this
relationship, the customer is an Investor (Rab ulMaal), and the Bank is the Manager
(Mudarib) of the fundsdeposited by the customers. The Bank allocates the funds received
from the customers toa deposit pool. These funds from the pool are utilized toprovide
financing to customers under Islamic modes thatinclude, but are not restricted to, Murabaha
and Ijarah.
Features
Long Term Product
Tenor 5-1/2 years & 7 years
Profit 9.5% 10.50% (Last month)
For Individuals and Corporate
Minimum deposit PKR 100 K
(50K for old citizens and widows)
Meezan Providence Certificate (MPC)


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A long-term investment product specially designed to caterto the needs of corporate and
business concerns forpurposes of investing their Provident, Pension and GratuityFunds.
How Meezan Providence Certificate works?

Riba-Free Meezan Providence Certificate (MPC) works underthe principles of Mudarabah
and is strictly in conformity withthe rules of Islamic Shariah.On agreeing to become a MPC
holder, the customer entersinto a relationship based on Mudarabah with Meezan
Bank.Under this relationship, the Customer is an Investor (Rab ulMal), and the Bank is the
Manager (Mudarib) of the fundsdeposited by the customers.
Min. deposit 01 Million
Tenor
5 Years
7 Years
Other options:
Provident and Pension Fund of large corporate
Premature encashment facility available
Meezan Islamic Institution Deposit Account

The Meezan Islamic Institution Deposit Account (MIIDA) is aunique product, tailored
exclusively for Islamic FinancialInstitutions (IFIs). With MIIDA, any IFI now has
theopportunity to manage excess liquidity in an immediate andprofitable manner, by
maintaining a checking account withMeezan Bank.All eligible Islamic Banks can enter into a
Mudarabahrelationship with Meezan Bank. Under this relationship, therespective Islamic
Banks are the Investors (Rab ul Maal), andMeezan Bank is the Manager (Mudaarib) of the
fundsdeposited by them. Meezan Bank allocates the fundsreceived from the Islamic Banks
to a deposit pool consistingof financing under Islamic modes that includes, but is
notrestricted to, Murabaha and Ijarah.
Features:

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For Islamic Financial Institutions deposit
To invest their access liquidity
Min. investment PKR 10 M and multiplies there of
Max investment 01 B
CASH DEPARTMENT
The cash department is the most important department of the bank. It receives cash from
customers and then depositsit into the accounts of the customers and maintained
theirbalances.In cash department following books are maintained.
Scroll book
Paying book
Cash balance book
SCROLL BOOK
When cash is received at the customer it is recorded in the scroll book.
PAYING CASH BOOK
The cashier makes entry in the paying cashbook when cash is paid.
CASH BALANCE BOOK
The consolidated figure of receipt and payment of cash is entered in cash balance book.

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CREDIT / FINANCE DEPARTMENT

Islamic Financing for the following:
Corporate
SME
Personal
PERSONAL FINANCING
Diminishing Musharaka (Islamic Financing)

With Easy Home you can participate with Meezan Bank in a joint ownership of your
property, where the Bank will provide financing up to 85%. On agreement of a monthly
payment tothe Bank of which a component is for the use of the home(rent), and another for
your equity share. The total monthly payment is reallocated regularly by the partnership to
reflect your growing equity and to allocate increasing amounts toyour investment. When you
have made the full investment, which had been agreed, you become the sole owner with
free and clear title to the property.
Easy Home
Easy home works under the Diminishing Musharakah where customer participates with
Meezan Bank in joint ownership.
Easy Home finance is available for
Purchase
3-20 year
Max. Finance 85%
Construction
2-20 year

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Max. Finance 70%
Renovation
2-7 year
Max Finance 85%
Replacement
3-20 year
Eligibility
Pakistani National
Age 2565 (till maturity)
Professional Experience
Salaried person
2 year of consecutive experience in same industry
Min salary 20 k per month
Business
3 years business experience
Min. business income Rs 50K per month
Processing Charges
Businessmens 12500
Salaried Persons 8500
(Up to Rs 4 M, 2000 Additional for above)
Time Frame 3-4 Weeks

Car Ijara


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Ijara is a rental agreement under which bank purchase vehicle and give the same on rent to
customer Car Ijarah is Pakistans 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.
Scope of Facility
Domestic Vehicle(Local made)
Commercial Vehicle (Local+Imported)
Used/Imported Vehicle(1st Transfer only)
Rates offered:
(For New)(For used)
3 year14%15%
4 year15%15.50%
5 year16.50%18%
1% higher than normal for commercial+imported+used vehicle
Eligibility
Pakistani National
Salaried individual, self-employed, professional orbusinessperson
Minimum 3 years of work/business/professionalexperience
6 month working with present employer
Net income exceeds three times of monthly rental
OTHER PRODUCTS OFFERED
On line Real Time ATM
Free ATM Card
Per Day Limit of PKR 20K
Rs 15 charges for use of other ATM Network
Acceptable at all ATM outlets
Debit card at Orix out lets (PKR 50k/Day)

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On line Real Time Facility
Absolutely free from all branches of MBL
Collection of Cheques absolutely free
Available to PKR current, saving & Karobari Munafa acc.
Banking Facility at all MBL Branches for
Mon - Sat9-5
Friday9-12-30 & 3-5
Saturday9-12-30
24/7 Call Center

24/7 call center provides you access to a widerange of Tele-banking solutions and
personalized banking service.
Key Features
Check account balances
Instruct issuance of pay orders and demand drafts
Transfer funds between your own accounts
Order issuance of cheque book
Check transaction history of accounts
Receive information on MBL products and services
Issue stop payment instructions
Report loss of your cheque book
Request or change T-PIN
ATM PIN Re issuance
Report loss of ATM/Debit Card or cheque(s)
Internet Banking

Internet Banking allow to have access to accounts regardless of where they may be in the
world.

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Key Features
Balance inquiry
Statement viewing
Statement download
Cheque status
Cheque blocking
Pay order request
Complaint logging and follow-ups
Funds transfers between own accounts at MBL
Change of address request
Cheque book request
Alerts and Notification by E-mail
Low/High balance alert
Credit/Debit transaction alert
Request resolution alert
Complaint resolution alert
Future Features
Alerts by SMS/Fax
Utility bill payments
Inter bank funds transfers
Payment to nominated accounts at MBL
Standing orders for repeated payments

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FUTURE OUTLOOK
It is interesting to note that the conventional banks are increasingly realizing the huge
potential market backed by the untapped and steadily growing appetite for Islamic
banking products; hence the drive for entering this market is based on business
considerations in addition to religious considerations. As the level of awareness and
understanding of Islamic Banking remains very low, this might pose as a threat to the
credibility to the full-fledged Islamic Banks like Meezan. For this reason, there is a
need for all banks to act in concert and help build awareness of Islamic Banking
throughout the country.
The size of Islamic Banking is expected to reach US $1.3 trillion worldwide in near
future. At present over 1,100 institutions offer Islamic finance service across the
globe. Size of investments in Islamic banking system reached Rs 424 billion till 2010
in Pakistan and the government is taking measures to encourage it. Coupled with the
fact that global sukuk issuance this year is expected to surpass US $35 billion
recorded in 2010 (when it sustained the highest issuance level), Islamic banking is
certainly growing and is here to stay.
Meezan Bank is committed to its Vision of establishing Islamic banking as banking of
first choice. The priority is to ensure that Islamic banking products and services are
available across the length and breadth of Pakistan; this will be achieved by:
Growing the branch network:
The Bank intends to renew its aggressive branch growth strategy and add 53 new
branches during the year. This will take the total branch network of the Bank to 275
giving it excellent network capability critical for the effective market penetration of a
commercial bank.
Deepen the existing and add new Alternate Delivery Channels:

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50 new ATMs will be added to the existing network of 169 ATMs. Plans are
underway to up-grade the Banks 24 hour Call Centre and additional functionality
including out-bound campaign-management will be added. A major new initiative will
be launch of the Banks mobile banking platform. The intention is to substantially
increase customer outreach and also support the financial inclusion program of the
SBP.
Improve systems and controls:
Significant focus is being given to improvement of systems and controls in the Bank.
As a part of this initiative, an internal control unit has already been set-up. In addition,
substantial investment is being made in new software applications including state of
the art KYC and AML software, among others.
Improve training and development:
As the Bank expands, sourcing and retaining the right quality of human resource is
an increasingly significant challenge. Accordingly, the Bank will build on its existing
training and development infrastructure, balancing Shariah-based training and branch
banking training.


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FINANCIAL STATEMENTS
Meezan bank limited
Profit and Loss Account
As on 31
st
December


Page 126 of 151

Meezan bank limited
Balance Sheet
As on 31
th
December


Page 127 of 151

FINANCIAL ANALYSIS
Ratio Analysis
Ratio analysis is the calculation and comparison of ratios which are derived from the
information in a company's financial statements. Financial ratios are usually expressed as a
percent or as times per period.

Liquidity Ratios:
It shows the ability of Meezan bank to cover its current liabilities with its current assets.
1. Current Ratio
C.R = Current Assets/ Current Liabilities

Current Assets / Current Liabilities
Worki ng:

Current Ratio =Current Assets / Current Liablities

Amounts taken from Balance sheet for current Assets
C A =Cash and balances with treasury banks +Balances with other banks +financial
institutions +Investments +Financings

Amounts taken from Balance sheet for current Liabilities
C L = Bills Payable +Due to financial institutions +Deposit and other accounts

Interpretation:
An increase in the current ratio represents improvement in the liquidity position of bank
while a decrease in the current ratio indicates that there has been deterioration in the

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liquidity position of the bank. Current ratio in 2012 is little bit decreased as compared with
2011. Its not a good sign for bank.

2. Acid Test Ratio:
Acid Test Ratio =Current Assets Inventories / current liabilities

Test Ratio =Current Assets Inventories / Current Liabilities

Working:

2012:

Current Asset Inventory
Current Liabilities

(115625774-22523969) =0.85
110050686

2011:

Current Asset Inventory
Current Liabilities

(79272114-1535744) =1.03
75299388
Interpretation:

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This graph shows that in year 2011 bank has enough short-term assets to cover its
immediate liabilities without selling inventory where as in year 2012 it has less acid test
ratio.

3. Working Capital

W.C= Current Assets Current Liabilities

Working:

2012:

Current Asset Current Liabilities

=115625774-110050686
= 5575088
2011:

Current Asset Current Liabilities

=79272114-75299388
= 3972726
Interpretation:
Positive working capital means that the company is able to pay off its short-term liabilities in
year 2012.

Page 130 of 151

B) Leverage Ratios
1. Time interest earned

Time interest earned =Earnings before Tax+Interest Markup Expense / Interest Expense

Working:
Amounts taken from PLS A/C
2012
= Earnings before tax+Interest Markup Expense
= 1,739,723+3,471,049
= 5210772
Time interest earned = Earni ngs before Tax+ Interest Markup Expense / Interest
Expense
=5210772 / 3471049
=1.50
2011
=Earnings before tax+Interest Markup Expense
= 992,311+2,713,156
= 3705467
Time interest earned = Earni ngs before Tax+ Interest Markup Expense / Interest
Expense
=3705467 / 2713156
=1.37
Interpretation
Time interest earned indicates whether the business has earned satisfactory profits to pay
its journal interest liabilities or not. This indicates the number of times interest is covered by
the profits available to pay interest charges.

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Here the Time interest earned ratio of Meezan bank indicates that the company earned
profit 1.50 And 1.37 times more than its interest expenses during last 2 years. This shows
that the Company has average strong ability to meet its financial cost

2. Debt Ratio

Debt Ratio =Total Debt/
Total Asset
Working
Amounts taken from Balance Sheet
2012= Debt Ratio = Total Debt =114,997,275 = 0.926
Total Asset 124,181,734
2011= Debt Ratio = Total Debt =79,301,092 = 0.930
Total Asset 85,276,070

Interpretation
A metric used to measure a company's financial risk by determining how much of the
company's assets have been financed by debt. It indicates that 93% of the companys total
assets are financed through the debts of the company in 2011. This ratio has been
decreased in 2012, as compared to 2011, which is good

3. Debt to Equity ratio

Debt to Equity = Total Debt/Total Equity


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Total Debt / Total Equity

Working:
Amounts taken from Balance Sheet
Particular 2012 2011
Bills payable 1,249,210 1,057,017
Due to financial institutions 8,468,425 4,008,496
Deposits and other accounts 100,333,051 70,233,875
Sub-ordinated loan -- --
Liabilities against assets subject to
finance leases
-- --
Deferred tax liabilities -- 453038
Other liabilities 4946589 3548666
Total Debt 114,997,275 79,301,092
Share capital 6650048 4925961
Reserves 1050092 845022
Unappropriated profit 1390395 570114
Owner Equity 9090535 6341097

2012 = Debt to Equity Ratio = Total Debt = 114,997,275 = 12.65
Total Equity 9,090,535

2011 = Debt to Equity Ratio = Total Debt = 79,301,092 =12.51
Total Equity 6,341,097

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Interpretation
Debt to Equity ratio indicates the relationship between the external equities or outsiders
funds and the internal equities or shareholders funds. This ratio measures solvency and
determine the capital structure of a company. It indicates how much the company is
leveraged. It shows that company debts are 12.65 and 12.51 times of companys own equity
respectively. Meezan Bank have high debt to equity ratio indicating that Meezan Bank is
highly financed with internal funds. It means it have low financial risk.


Page 134 of 151

C. Profitability Ratios
Profitability ratios measure the earning ability of a firm. Profitability ratios are of two types-
those showing profitability in relation to sales and those showing profitability in relation to
investment. Together, these ratios indicate the firms overall effectiveness of operation.
1. Gross Profit Margin
Gross Profit Margin =Gross Profit / Sales *100
Particular
Gross Profit 5,132,144 3,714,879
Sales 10,102,060 6,803,213
Gross Profit / Sales *100 50.80% 54.60%
Working:
Amounts taken from Pls A/C
2009
Gross Profit =Net spread earned =5132144
Sales =Profit / return earned on financings, investments and placements =10102060
Gross Profit Margin =Gross Profit / Sales *100
=5132144 / 10102060 * 100
= 50.80%
2008
Gross Profit =Net spread earned =3714879
Gross Profit Margin = Gross Profit / Sales *100
=3714879 / 6803213 * 100
= 54.60%


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Interpretation
Gross profit ratio may indicate to what extent the selling prices of goods per unit is reduced
without increasing losses on operations. It reflects the efficiency with which a firm produces
its products.
Gross profit margin indicates how well the company can generate a return at the gross profit
level. Gross profit ratio of Meezan Bank in 2011 is good but decreasing with every next
year which a bad signal from Meezan Bank.

Net Profit Margin

Net Profit Margin =Net profit / Net Sales * 100

Net Profit 1,025,351 621,187
Sales 10,102,060 6,803,213
Net Profit / Sales *100 10.15% 9.13%

Working:
Amounts taken from Pls A/C
2012
Net Profit =PROFIT AFTER TAXATION =1025351
Net Profit Margin = Net Profit / Sales *100
=1025351 / 10102060 * 100
= 10.15%
2011

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Net Profit Margin = Net Profit / Sales *100
=621187 / 6803213 * 100
= 9.13%
Interpretation
This is the ratio of net profit after taxes to net sales. This ratio measures the overall
profitability of the company. The profit margin indicates how much profit a company
Produces against every one Rupee. Meezan Bank have sufficient profitability ratio (10.15%,
9.13% respectively) and increasing with every passing year.

2. Return on Assets

Return on Assets = Net Profit / Total Assets
Net Profit 1,025,351 621,187
Total Assets 124,181,734 85,276,070
Net Profit / Total Assets 0.0083 0.0073

Working:
Amounts taken from PLS A/C & Balance Sheet
2009
Total Assets =124,181,734
=1025351 / 124181734
= 0.0083
2008

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Total Assets =85,276,070
=621187 / 85276070
= 0.0073
Interpretation
This ratio indicates the proper and effective utilization of Meezan Bank resources. It is
observed that return on total assets has been slightly increased in 2012 than 2011.

D) Market Ratio:

1. Earning per Share

Earni ng per Share = (Net profit after tax / number of shares issued)

Net profit after tax 1025351000 621187000
Number Of Ordinary Shares 599,185,729 509,004,974
t profit after tax / Number Of Ordinary Shares 1.71 1.22

Working:
Amounts taken from PLS A/C & Annual Repo
2012
Number of Ordinary Shares from annual repo page #94
Number Of Ordinary Shares =599185729
=Net profit after tax / Number of Ordinary Shares

Page 138 of 151

=1025351 / 599185729
=1.71

2011
Number of Ordinary Shares from annual repo page #94
Number Of Ordinary Shares =509004974
=Net profit after tax / Number Of Ordinary Shares
=621187 / 509,004,974
=1.22

Interpretation
Earnings per share allow us to compare different companies power to make money. The
higher the earnings per share with all else equal, the higher each share should be worth, in
2012 is higher as compared to 2011.

2. Price/Earning Ratio:

Market value per share / Earning per share

Market Value per Share 14.55 11
EPS 1.71 1.22
Market value per share / Earning per share 8.51 9.02


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Working:

Closing Market Value per Share taken from KSE (Karachi Stock Exchange) 30.06.2011
& 30.06.2012
2012
Market Value per Share =14.55
EPS =Calculated in above ratio =1.71
Price / Earni ng Ratio = Market value per share / Earning per share

=Market value per share / Earning per share
=14.55 / 1.71
=8.51

2011
Market Value per Share =11
EPS =Calculated in above ratio =1.22
Price / Earni ng Ratio = Market value per share / Earning per share
=Market value per share / Earning per share
=11 / 1.22
=9.02

Interpretation:

This ratio shows the company's current share price compared to its per-share earnings. In
this graph the price earning ratio in 2012 is less than 2011.


Page 140 of 151

TRAINING PROGRAM
Meezan Bank Township Branch
The branch in charges consists of a Branch Manager and Manager Operations. Manager
Operations control the whole staff. The staff consists of branch system administrator and
operational staff (include Grade-1 officer, Grade-2 officer, Grade-3 Officer and three cash
officer.
With the name of Almighty Allah, I started my internship with Meezan Bank Limited
on 22
nd
J uly, 2013 which continued till 2
nd
sep, 2013. On first day, the Branch Manager
called me in his office and asked some questions about my studies and teachers. He told
me some basic rules and regulations about banking operation and introduced me with other
staff members of the Bank
Service Quality Department
In this department I learnt a lot about floor time management and quality assurance affairs
in branch.
Clearing and Remittance Department
Clearing
After learning in Service Quality Department, I worked in Clearing Department where I learnt
their about Clearing of different cheques and remittance handling. I was told there the main
objects of clearing.
I received all the clearing cheques and made a schedule of these cheques after making
entries in outward and inward clearing registers and sent the same to main branch where at
all the cheques were sent to NIFT (National Institutional Facilitation Technology)


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Types of Clearing
Inward Clearing
When cheques of other Banks are deposited in our bank, after clearing these cheques
through NIFT by the other Banks on which these are drawn. Accounts of the customers are
credited.

Outward Clearing
When cheques of our bank are deposited in other Banks and these cheques are sent to us
for verification, we debit the of our client after verification their account.

Remittance
Remittance department transfer the funds from one bank to another bank and one place to
another place. In this department collection takes place. MBL makes payment of only open
cheques at the counter and prohibits the payment of crossed cheques. MBL transfer money
from one place to another place by way of payment order, demand draft, inward collection,
outward collection.


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Account Opening Department
Account Opening Procedure

Account Opening Form
This department relates to open new accounts Customers approach to Bank and an
Account Opening is given to him for completing and signing the same. After completed
account opening form in all respect and checked by the bank officer and properly signed by
the customer which is also verified by the Operation Manager. Specimen Signature Card
are got signed form the customer and after verifying the information written their in,
Customers are given account number and all these informations are saved in the system.
Completion of the Form
After completed account opening form in all respect and checked by the bank officer and
properly signed by the customer which is also verified by the Operation Manager
Specimen Signature Card (SSC)
Specimen Signature Card are got signed form the customer and after verifying the
information written their in, Customers are given account number and all these informations
are saved in the system.
Signature Difference Form
The signature of the client is taken on a signature difference form if his signature differs from
the CNIC.
Computerized Checking
After filling in the form, the officer connected via internet to the NADRA website checks the
record of his customers social life. If the record of the person is ok, then the officer of the
bank authenticates the record under his signature and stamp and send it to the Branch
Manager

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Account Number
After completion of all formalities, final approval for opening of account is taken form the
Branch Manager and an account number is allotted to the customer and all the informations
are recorded in the computer. Account number is written on the cheque book requisition.
After completion of all procedures, the bank prepare a letter and send it to the client at his
postal address to pay gratitude to the customer.
Cheque Book Issuance
Cheque Book requisition for first cheque book is send to Head Office, Karachi for issuance
the same. The cheque consists of 25 leaves and no charges are deducted from the account
the account of client. There after bank sends a recommendation for 25, 50 and 100 leaves
with different prices and charges are deducted from the account of clients.
Procedure for Closing of an account
Whenever a customer wants to close the account, he fills up an account closing form and
signs their in, account balance should be zero, approval is taken from the Branch Manager
specimen card is taken back and is attached with the form and account is closed.

Locker Operations
Locker facility is also available at all the branches of MBL for keeping the valuables their in
and this facility is only for account holders. As for as privacy is concerned, lockers are
located in a specially designed area protected with strong room doors and grills under the
control of two officers, operated by use of Master Key and Customers Key supplied to the
customer at the time of locker is rented out. Lockers are three types: Small, Medium and
Large lockers.

Security fee of locker is Rs. 3000 which is refundable and charges for Small Rs. 1000, for
Medium Rs. 1500 and for Large Rs. 2000 per annum.

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A separate application form is complete and signed by the customer along with SS Card
and a copy of CINC with two photographs. After completing all the formalities a locker is
allocated to the applicant and Key is given to him with locker identification card.


Page 145 of 151

My Conclusion
As for as business of the bank is concerned it is quite up to the mark keeping in view the
standard of banking industry. Bank is located in Township where Bank Al Habib, Habib hank
limited , Habib metropolitan bank limited as well as Allied bank and MCB are also doing
business in the same area but Meezan Bank limited is competing with all these banks and
increasing its clientele. Bank is giving better services to its customers as well as better
farcicalities to its employees, its employees are making an untiring effort to increase the
profit of the company on year to year basis as well as time their best to increase the wealth
of the shareholders. Bank is offering many products to its customers which are increasing
the margin of the bank.
As for as Profit Margin, Gross Profit Margin, Operating Profit Margin and Return on Equity is
concerned, it is much satisfactory keeping in view the standard of industry. Fixed Assets
Turnover, Total Assets Turnover, Retune on Total Assets, Earning Per Share and Price
Earning Ratio are as too much satisfactory and quite up to the mark of industry which shows
that financial health of the bank is very much sound and it will be a going concern for and
indefinite period. Its profit from operation is seems to be reasonable and showing an
increasing trend on year to years basis. Further more Gross Profit Margin is also
reasonable; Profit Margin is also showing a healthy sign. Banks future is future to much
secure and it will flourish and grow in the days to come.

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SWOT ANALYSIS
Strengths
First exclusive Islamic bank.
The largest Islamic Bank in Pakistan with a network of over 204 branches in 54
cities.And ending this year they have increase his branches in Pakistan to 280
branches.
Strong growth of its Islamic banking SBU.
The members of the Shariah Supervisory Board of Meezan Bank are Internationally-
renowned scholars, serving on the boards of many Islamic banks operating in
differentcountries.
Meezan Providence Certificate is a long-term investment certificate specially
designed tocater to the needs of corporate and business concerns for purposes of
investing their Provident, Pension and Gratuity Funds. As any prudent investor, your
main concernswould be total security along with the best returns possible, especially
as these funds area trust from your employees and one that bears an important
responsibility.
Karachi, August 20, 2008: Meezan Bank, the largest Islamic Bank in Pakistan has
beenconferred the Best Islamic Bank Award by Rawalpindi Chamber of Commerce
andIndustry.
The Chief Minister of Punjab Mr. Shahbaz Sharif bestowed this award to Mr.
SaleemKhan Regional Manger -
North, Meezan Bank at 21st RCCI achievement awardsceremony held at the
Convention Center in Islamabad.
Dedicated and professional staff
Shariah board of renowned scholars
Healthy working environment
Strong shareholding


Page 147 of 151

Weaknesses
High charges for different activities such as online or Demand Draft as compared to
competitors.
Lack of promotions and advertising of their products and services.
Lengthy & extensive documentation
Centralized procedures making process slow
Weak marketing strategy, Target market not identified
Offering fewer services than the competitors
Risk Averse, approach of Head office.
The Islamic economic system is not something that can work in isolation of the geo-
political and legislative system, as well as, and more importantly the society's
behaviorstowards the injunctions of Islamic Shariah in personal and collective matter
s.Accordingly, one can easily imagine that in an economy whereby most of the busin
essmen are not honest in fairly presenting the financial statements of their businesse
s, how difficult it is to introduce a profit-and-loss sharing based financialsolution.
Meezan Bank Limited has no Credit card facility
Restricted Shariah based policies

Opportunities
House financing sector can be targeted to maximize the profit.
Growing demand of Islamic financial product and services.
Venturing into Islamic groups outside the countries as opportunity to expand
business inUAE and Golf states. i-e financial institutions.
Coming up with. Products for the SME to targeting the medium level customers.
Doing business with companies having Islamic mindset. I-e Islamic financial
Institutions.
Increase branch network within the country.

Page 148 of 151

Threats
New competitors setting up their Islamic banking sections and they have theinfrastruc
ture, skill, ability, resources & attitude to capture the market more than the Meezan
bank.
High Interest Rate from SBP
SBP has not special policy regarding Islamic Banking.
Disassociation of Maulana Taqi Usmani from the Shariah advisory board of Meezan
Bank.
Govt. policies are mostly for conventional banking system not for specially designed
for Islamic banking.
Change in Government's attitude towards Islamic banking.
Fears on the credibility of Islamic banking ethical compliance and monitoring s


Page 149 of 151

RECOMMENDATIONS

As for as I have observed during my training, the bank should improve the services given to
the customers so that they may feel satisfied. Bank should increase its products in order to
enhance its margin so that it may compete in the market. Further more employees are the
assets of the bank which must be motivated by the management of the bank. Employees
should be given incentive in the shape of cash award, increase in pay, promotion etc. if the
customers of the bank are satisfied and employees of the bank are hardworking as well as
loyal, the bank will make progress by leaps and bounds. Management of the bank must try
its best in order to satisfy the customers as well as motivate the employees.

As for as ratio are concerned, its current ratio is much below the standard which needs to be
increased in order to grow in the market. Working capital is the life of every organization, in
2008 working capital is in negative but in 2009 and 2010 working capital is positive but
below the standard. Working capital must be increased by the bank so that the bank may
show its short term solvency to meet out its short term debt. Debt of the company is 0.9299
in 2008, in 2009 is 0.9960 and in 2010 is 0.9284 which shows that the Bank is highly
levered. Debt of the company is on higher side which must be decreased to show it long
term solvency. Net profit Margin on sale although increasing on year to year basis but is
much below than the standard of industry which also need to be increased in order to grow
in the markets.


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CONCLUSION

As for as business of the bank is concerned it is quite up to the mark keeping in view the
standard of banking industry. Bank is located in Gulshan-e- Ravi where Bank Al Habib,
Habib hank limited , Habib metropolitan bank limited as well as Allied bank and MCB are
also doing business in the same area but Meezan Bank limited is competing with all these
banks and increasing its clientele. Bank is giving better services to its customers as well as
better farcicalities to its employees, its employees are making an untiring effort to increase
the profit of the company on year to year basis as well as time their best to increase the
wealth of the shareholders. Bank is offering many products to its customers which are
increasing the margin of the bank.

As for as Profit Margin, Gross Profit Margin, Operating Profit Margin and Return on Equity is
concerned, it is much satisfactory keeping in view the standard of industry. Fixed Assets
Turnover, Total Assets Turnover, Retune on Total Assets, Earning Per Share and Price
Earning Ratio are as too much satisfactory and quite up to the mark of industry which shows
that financial health of the bank is very much sound and it will be a going concern for and
indefinite period. Its profit from operation is seems to be reasonable and showing an
increasing trend on year to years basis. Furthermore Gross Profit Margin is also reasonable;
Profit Margin is also showing a healthy sign. Banks future is future to much secure and it
will flourish and grow in the days to come.


Page 151 of 151

REFERENCES:

http://www.meezanbank.com/docs/Annual_Report_2012.pdf
http://www.meezanbank.com/financialhighlights.aspx
http://www.meezanbank.com/docs/HYJ une12.pdf
http://www.almeezangroup.com/Portals/0/Meezan%20Balance%20Annual%202012.
pdf
http://www.almeezangroup.com/FinancialStatements/tabid/116/Default.aspx
http://www.brecorder.com/pakistan/banking-a-finance/101761-meezan-bank-
recognised-for-the-best-deals-of-the-year-2012.html
http://www.brecorder.com/pakistan/banking-a-finance/117767-meezan-bank-records-
9pc-growth-in-first-quarter-2013.html
http://www.sbp.org.pk/stats/stat-bal-sheet.htm
https://ebanking.meezanbank.com/ambit/UserNamelogin.do?first=true
http://www.meezanbank.com/GuideIb.aspx
http://www.meezanbank.com/easyhome.aspx
http://www.meezanbank.com/coii.aspx
http://www.meezanbank.com/laptopfinancing.aspx
http://www.dailypaperpk.com/jobs/188163/job-opportunities-meezan-bank-pakistan
http://www.resultspkbd.com/meezan-bank-recruitment-2013-www-meezanbank-
com.html

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