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Visted Organization:

Submitted to:
Mr. Hafiz Muhammad Farhan
Submitted By:
Hafiz Muhammad Sajid (Roll No 42)
Muhammad Imran

(Roll No 46)

Muhammad Tahir

(Roll No 49)

Mudassir Sattar

(Roll No 57)

Department of Management Sciences

ACKNOWLEDGEMENT
We would like to offer our humble gratitude to Allah Almighty, the most Gracious and the most
Merciful, who gave us strength and enabled us to achieve our goals.
The main purpose of the project is to know about the practical implementation of all the concepts
we studied in the Money & Banking.
Then our sincere thanks to Mr. Hafiz Muhammad Farhan, for helping us throughout the report.
His guidelines have been very useful for us in preparing this report. He helped us find new ways
of being innovative and creative.
This report would not have been possible without his cooperation and continuous direction.
Then we would like to thank our families for their incessant support and approval.
At Meezan Bank Limited Bahawalnagar Branch we would like to mention the names of
Mr. Tahseen Ul Ahad (Personal Banking Officer)
Who gave us their precious time and gave us all the required information about Meezan Bank
Limited.

Dedication
To Allah Almighty Who Is the Best Source
of knowledge & wisdom.

Vision
Establish Islamic banking as banking of first choice...

Mission
Establish Islamic banking as banking of first choice...
To be a premier Islamic bank, offering a one-stop
shop for innovative value-added products and service

Our 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.

INTRODUCTION
MEEZAN was established as an Islamic Investment Bank in 1997 as AL MEEZAN
INVESTMENT BANK LTD. After the successful completion and great struggle First Islamic
Commercial Banks license was awarded to Al Meezan Investment Bank in year 2002, to start
the commercial banking facilities they bought the local operations of Socite General (French
Bank) 03 branches and started the commercial Islamic banking in the country.
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 highest short-term rating.

BRANCHES
Total 350 branches of Meezan bank working in 100 city in Pakistan

OTHER INSTITUTION
The bank is sponsored by leading financial institutions from Pakistan and the Middle East that
include Noor Financial Investment Co., Kuwait, Pakistan Kuwait Investment Company (Pvt.)
Limited and Islamic Development Bank, Jeddah. The JCR-VIS Credit Rating Company Limited,

Our Values

Core Values
Shariah-compliance, Integrity, Professionalism, Innovation, Service
Excellence, Social Responsibility.

Staf
Committed, motivated and professionally trained employees who are
empathic to their customers needs.

Brand Personality
A sober and established, strong, empathic, professional person; who is an
extremely loyal and dependable friend and business partner, and is
committed to ofering comprehensive value-based Shariah-compliant
financial solutions.

Relationships
Our relationships are long-term. We recognize and value our customers
needs above all and strive to ensure their fulfillment. All customers are
treated with professionalism and in a friendly manner. It is our endeavour to
ensure that they receive efficient and timely service. The Meezan Bank
experience is a unique one.

SWOT Analysis
Being aware of the environment in which one operates, as well as of one's own strengths and
weaknesses, is a key element
in the success or failure of any business. Meezan Bank's management is cognizant of the fact that
the economy and the
banking industry are in a state of flux and regularly conducts SWOT analysis of the organization
to capitalize on its strengths
and work on its weaknesses in view of the opportunities available in its environment and the
threats that it needs to overcome.
A SWOT summary of the business as it stands today is given below:

Certificate of Islamic Investment

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

Meezan Amdan Certificate


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. 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 Meezan Amdan Certificate is available for Individuals and businesses including Sole
Proprietorships, Partnerships and Limited Companies.

Monthly Mudarabah Certificate

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.

Dollar Mudarabah Certificate

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

Meezan Rupee Current Account


This is a checking account that works on the basis of 'Qard' and provides the convenience of
conducting day-to-day Transactions. There is no restriction on withdrawals or numbers of
transactions and there is no deduction of service charges if the balance maintained is low.

Meezan Rupee Savings Account


Meezan Bank's Rupee Savings Account provides monthly profit along with a variety of free
packaged benefits. Profit is calculated on daily balance and credited into the account on a
monthly basis. Minimum investment required for opening an account is Rs.100 and there is no
deduction of service charges if the balance maintained is low.

Home Financing
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 instalments but also
keeps you safely away from interest based financing.

Features of home financing

Highest financing amounts


Maximum financing against property value
Flexibility to make partial pre-payments
Minimum processing charges
Very affordable and competive installments amounts with a regularly reducing monthly
rent amount

Fatwas on Housing Finance


Your payments to Meezan Bank are completely Riba-Free
and Sharia-compliant!

A Diminishing Musharakah it conforms to Shariah laws specifically related to financing,


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

Musharakah
Musharakah means Sharing and in the terminology of Islamic Fiqha. The word Musharakah
has been derived from Shirkah which means being a partner.
Musharakah is basically a kind of partnership in which the partners join together with different
contributions, work or obligation for the common objective of undertaking business and trade in
accordance with the principles of Shariah. It is an ideal alternative for the interest based
financing with far reaching effects on the economy.

Contract of Musharakah
The contract of Musharakah can take place between two or more persons with the capital
contributed by the partners/shareholders and the profit to be distributed among them according to
the rates agreed upon by the shareholders.

Types of Musharakah
Shirkat has been divided into two kinds.

1. SHIRKAT-UL-MILK
It means joint ownership of two or more persons in a particular property/asset.

2. SHIRKAT-UL-AQD
This is the second type of Shirkah which means a partnership effected by a mutual
contract for.
It means joint ownership of two or more persons in a particular property.

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.

Diminishing Musharakah
In Diminishing Musharakah the financier and the client participate either in joint ownership of a
property or equipment, or in a joint commercial enterprise .The share of the financier will be
divided into a number of units.
The client will purchase these units one by one periodically until he is the sole owner of the
property.

Rules of Musharakah
Musharakah means relationship established under a contract by the mutual consent of the parties
for sharing of profits and losses,arising from a joint enterprise or venture.
Investments come from all partners / shareholders hereinafter referred to as partners.
Profits shall be distributed in the proportion mutually agreed in the contract.

Capability of Partners:
Must be sane & mature and be able of entering into a contract.
The contract must take place with free consent of the parties without any fraud or
misrepresentation.

Asset of Musharakah
All assets of Musharakah are jointly owned in proportion to the capital of each partner.

Capital of Musharakah

All partners must contribute their capital in terms of money or species at an agreed valuation.
Share capital in a Musharakah can be contributed either in cash or in the form of commodities. In
the latter case, the market value of the commodities shall determine the share of the partner in the
capital.

Illustration of home financing


Customer request financing for a fixed asset costing PRs.100,000 .
Islamic Bank agrees to provide financing up to 60% of the cost.
Joint Ownership Agreement is executed between the bank and the Customer.
Bank will purchase 60% share in the asset by paying Rs. 600,000 to supplier.
A customer pays its share of Rs. 400,000.
Asset is divided into ten units. Four units have customer and six unit of the bank.
Customer agrees to buyout Banks share (units) on yearly basis and the Undertaking is executed
by the customer.
Customer pays the rent for the usage of the Banks units.
Rent reduces after purchase of each unit by the customer.
After four years ownership of the asset is completely transferred to the customer.

Who can avail easy home facility from Meazan Bank?


Easy home facility can be availed by an individual who:

Is a Pakistan national whether residing in Pakistan or abroad*


*(only salaried individual)
Is of age between 25 years to 65 years at maturity of financing
Is a salaried individual, a self-employed professional or a business person
Has minimum of 2 years working experience or a minimum of 3 years business
experience.

Questions
Q. 1

Types of Deposit

Ans.

In Islamic banking like Mezan Bank have two types deposit


Qarz base
Mudarabah Base

(Current account on Qarz base)


(Saving account on Mudarabah Base)

Q. 2

What is interest rate on long term deposit

Ans.

We give not any interest because meezan bank is a Islamic bank we invest the momey of
owner into different sector according to sharia

Q.3

How profit determine for depositor?

Ans.

Profit determine according to mudarabah cycle and mudarabah cycle completed in one
month.

Q. 4

Process of long term deposit?

Ans.

First you open account in Meezan Bank and deposit in your account. The amount will be
debited from your account and bank give you a certificate.

Q. 5

What is the limit of long term deposit amount?

Ans.

The minimum amount that must be deposit in long term is 50000.

Q.6

If premature terminate than what profit rate is?

Ans.

Early redemption schedule will be apply (the profit will be given according to the saving
account)

Q. 7

What is the duration of long term deposit?

Ans.

The duration of long term deposit is 3 month-7 years.

Q. 8

What is the interest rate for home financing?

Ans.

There is no interest rate in home financing .In home financing customer paid only rent of
bank units.

Q. 9

How much installments for home financing?

Ans.

There is no limit of installments in home financing.

Q. 10 Who is the owner of in home financing?


Ans.

Bank is the owner till last unit of bank.

Q. 11 What is the processing fee for home financing?


Ans.

5000 rupees

Q. 12 What are the types of financing?


Ans.

Home financing, building and renunciation.