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Internship Report on

Limited
March Bazaar
Sukkur

Submitted By: Saif ul Nawaz(Internee)


BBA (Hons) 7th

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ACKNOWLEDGEMENT

Internship training for the students of and Business and Commerce is a


complimentary portion of the education, where students are put at various
organizations of their respective specialization; to see and apply their theoretical
knowledge what they have studied during their academic program at the institute.
is one of those organizations where student can achieve his/her academic
and professional knowledge productively.

In the preparation of this internship report, I acknowledge the encouragement and 

assistance given by a number of people from  Limited. I found every one very co-


operative and helpful for providing me the
theoretical as well as practical knowledge about the function and operation of

the bank. I am heartily grateful to Sir Asgar Ali Baloch (B.M), Khair Muhammad 

(O.M), Shafqat Memon, Fasial Abbasi, Riaz Malik, Karamullah Bahpar, Sayed 

Muzamil Shah Rizvi and also other employees for their collaboration. 

Thanks once again to all 

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Contents

Serial No Names Page No

1. Abstract 5

2. History of MEBL 6

3. Mission and Vision Statement 07

4. Segments 09

5. Products, Services and Competitors 10

6. Training Program 12

7. Clearing and Remittance Department 14


a. Types of Clearing 15

8. Account Opening Department 16

9. Cash Department 19

10.SWOT Analysis 20

11.PEST Analysis 22

12.Financial Ratio Analysis 24

13.If You Manager 30

14. Class Room Learning Activities 31

15.Suggestions 32

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ABSTRACT

This report is specially meant for a student of Business Administration. It is


concerned to a brief study of the operations, functions, Products and Services of .

is the largest Islamic Banking Network of Pakistan. Islamic banking one of the
fastest growing segments of the financial industry. Banks serving the Islamic
population must comply with several very specific principles of Islamic law if they
hope to retain existing customers and attract new ones. Banks must be ready with
specialized products and services and they must put programs in place to train their
personnel to support these products and services in order to exist in this
competitive marketplace.

This Report contains detail of MBL Management structure, Operations, products,


Services and Functions along with their features.

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History OF Limited (MEBL)

Limited, a publicly listed company was incorporated on January 27, 1997 and
started its operations as an investment Bank in August that year. In January 2002
was granted as nations full-fledged commercial bank licensee as a dedicated
Islamic Bank, by The State Bank of Pakistan. is the first and largest Islamic Bank in
Pakistan having a network of over 220 branches in over 60 cities across Pakistan.
offers a complete range of Islamic banking products and services, including free
online banking for all Pak Rupee account at all its branches. today a noteworthy
point along with the evaluation of Islamic Banking in Pakistan. is catering to an
increasingly astute and demanding financial consumer who is also becoming
keenly aware of Islamic Banking. bears the critical responsibility of leading the
way forward in establishing dynamic and stabled Islamic Banking System.

offerings valuable products and services to its customers without any violation of
shariah principles.

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MISSION & VISION STATEMENT OF
Vision

Establish Islamic banking as banking of first choice to


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

Mission

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


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

Service Mission

To develop a committed service culture which ensures


the consistent delivery of our products and services
within the highest quality service parameters,
promoting Islamic values and ensuring recognition and
a quality banking experience to our customers.

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SHARIAH SUPERVISORY BOARD

The basic principle of Islamic banking follows the laws of Sharia, known as Fiqh
al-Muamalat (Islamic rules on transaction). The term “Islamic banking” is
synonymous with “full-reserve banking” and “Sharia-compliant banking.”
Members of the Shariah Supervisory Board of are Internationally-renowned
scholars, serving on the boards of many Islamic banks operating in different
countries.

The members of the Board are:


 Justice (Retd.) Muhammad Taqi Usmani (Chairman)
 Dr. Abdul Sattar Abu Ghuddah
 Sheikh Essam M. Ishaq
 Dr. Muhammad Imran Ashraf Usmani (Shariah Advisor)

The Board of Directors of :

 H. E. Sheikh Ebrahim Bin Khalifa Al-Khalifa (Chairman)


 Mr. Abdullateef A. Al-Asfour
 Mr. Rana Ahmed Humayun
 Mr. Mohammed Azzaroog Rajab
 Mr. Ahmed Abdul Rahim Mohamed
 Mr. Alaa A. Al-Sarawi
 Mr. Mian Muhammad Younis
 Mr. Mohammad Abdul Aleem
 Mr. Irfan Siddiqui (President & CEO)
 Mr. Ariful Islam (Chief Operating Officer)

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SEGMENTS
is managed by a team of professional bankers committed to the cause of Islamic
Banking. This single unifying factor unleashes the tremendous power of a
dedicated and motivated team committed to fulfilling the Vision and Mission of
this Bank.

The business segments of the Bank are:

 Consumer Banking
 Corporate Banking
 Investment Banking
 Commercial Banking (including Small and Medium Enterprises)
 Treasury & Financial Institutions
 Asset Management (managed through a subsidiary Al Meezan Investment
Management Ltd.)

Comment on organizational structure

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.

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Products, Services and Competitors

Deposit products

offer the largest range of Riba-free Deposit Accounts for Personal Banking
 Kafala Account
 Rupee Current Account

 Labbiak Saving Account

 Rupee Saving Account

 Dollar Saving Account

 Euro Saving Account

 Pound Saving Account

 Meezan Bachat Account

 Business plus Account

Term Certificates (Riba- free Term Deposit Certificate)

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

 Certificate of Islamic Investment (CII)


 Meezan Amdan Certificate (MAC)

 Monthly Mudarabah Certificate (MMC)

 Dollar Mudarabah Certificate (DMC)

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

 Laptop Ease

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 Quick pay

 SMS Alerts

 24/7 Call Center

Services
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

Competitors

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The major direct competitors of Limited are Bank Islami, Dubai Islamic Bank
Pakistan Ltd, Al-Barka Islamic Bank. The other indirect 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.

Training program

With the name of Almighty Allah, I started my internship with Limited on 16


June, 2014 which continued till 11 August, 2014. On first day, the Branch Manager
called me in his office and asked some questions about my studies and Banking.
He told me some basic rules and regulations about banking operation, Islamic
Shariah Polices and introduced me with other staff members of the Bank and I
worked on Customer Service –FTM, SQC, Clearing & Remittance and Account
Opening departments

Service Quality Department

In this department, I learnt a lot about floor time management and quality
assurance affairs in branch.

Floor Time Management

While standing near the main gate we ensure that customers coming into MBL are
properly looked after. We also create a sense of ownership of service quality and
also develop a service mindset and ultimately a quality service culture at MBL.
Furthermore, we manage the sale and service area of the branch to provide
maximum opportunities to our clients as well as provide a sense of comfort and
personal attention.

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Responsibilities of Floor Time Management

We maintain and file daily working sheet of Floor Time Management and record
customer’s complaints in the CRM. We monitor daily log of TAT sheet and put up
it to Branch Manager. Complaint handling and its follow up is made on daily basis.
Modifications and improvements are suggested in the system and process. Try to
make coordination between branch and Head Office regarding service quality.
Lead Floor Manager is assigned duty first of all.

Responsibilities of Lead Floor Manager/ Floor Manager

Lead Floor Manager welcomes all the customers and introduces himself with a
smiling face and checks branch cleanliness and pleasant atmosphere in the branch.
He also checks availability customers stationary at proper places as well as
maintain the notice and assist in SQ. Individual customers are provided
comprehensive services. He moves around the banking hall and cash counters area
to ensure that every customer is looked after properly.

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Clearing and Remittance Department

Clearing:

After learning in Service Quality Department, I worked in Clearing Department. 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)

NIFT:

NIFT stand for National Institutional Facilitation Technologies. Clearing House of


SBP has shifted a part of its work to private institution named NIFT. NIFT collets
Cheques, Demand Draft, Pay Order, Travelers Cheques, etc. from all branches of
different Banks within city through its carriers and send them to the branches on
which these are drawn for clearing. NIFT prepares a sheet for each branch and
send it to each branch as well as to State Bank of Pakistan where accounts of
Banks are settled.

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Types of Clearing

Outward 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.

Inward 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 gotten signed form the customer and after verifying
the information written they’re in, Customers are given account number and all
these information’s 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 gotten signed form the customer and after verifying
the information written they’re in, Customers are given account number and all
these information’s are saved in the system.

Signature Difference Form

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The signature of the client is taken on a signature difference form if his signature
differs from the CNIC.

Address Change Form


If the address is differed from CNIC then client will fill this form.

Computerized Inputting
There are three things under the computerized inputting.
Customer Information (CIF)
Here we will generate a customer’s Id
Account Number
After completion of all formalities, final approval for opening of
account is taken from the Branch Manager and an account number is allotted to the
customer and all the information’s are recorded in the computer. Account number
is written on the cheque book requisition. After completion of all procedures, the
bank prepares a letter and sends it to the client at his postal address to pay gratitude
to the customer.
Customer Due diligence (CDD)
Here we observe the customer’s strength to do daily transaction in a
bank

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.

Procedure for ATM/PIN Issuance

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

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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.

For issuance of PIN and activation of ATM customer has to call the help line (111-
331-331). After verification of customer, a PIN number is issue to him and his card
is activated

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.

Procedure for Closing of an account

Whenever a customer wants to close the account, he fills up an account closing


form and signs they’re 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.

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Cash Department

T h e c a s h d e p a r t m e n t i s t h e m o s t i m p o r t a n t d e p a r t m e n t o f the
bank. It receives cash from customers and then deposits i t i n t o t h e
a c c o u n t s o f t h e c u s t o m e r s a n d m a i n t a i n e d t h e i r balances. In cash
departments following books are maintained.

o Scroll book

o Paying book

o 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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SWOT Analysis
Strengths:

 Effective HR Policies

 ATM Machine in Branches.

 One Counter Operation.

 Islamic Banking.

 Loyalty of Employees.

 24/7 Online Banking.

 Internet banking facility.

 Excellent Environment.

 Efficient and Qualified Management.

 Fewer Competitors as Islamic Banking.

 A large range of Islamic Investment Schemes.

 Islamic Leasing System.

 No hidden charges.

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 Rates are remarkably low as compared to other banks

Weakness:

 Lack of awareness of the people.

 Only two Branches in Sukkur

 Less Advertisement
Opportunities:
 Big market to be captured
 Introduction of innovational products
 Open new branches in Sukkur and other small areas
 Opportunities for provision of Islamic finance facilities such as Musharka,

Estasnaa, Ijara for commercial customers

Threats:

 Islamic banks are increasing.

 Traditional commercial banks are also introducing the Islamic Banking


Facility.

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PEST ANALYSIS
The analysis of MEEZAN BANK will take in to account the general environment
analysis, the competitor’s analysis by comparing the products offered by the
competitive banks and the departmental analysis.

The general environment of takes in to account the external factors like politics,
economy of Pakistan, socio-cultural factors and technology. Now we will analyze
these factors one by one and check how these affect the working of MEEZAN
BANK:

Political
The current situation of the government in Pakistan is directly affecting the policies
of banks. However, MEEZAN BANK tries hard to keep its business away from the
politics but it is not an easy task. MEEZAN BANK has no accounts of political
leaders or parties. However, its Customer Service Department faces peer pressure
from such political parties.

As MEEZAN BANK is trapped in dual sanctions from the State Bank of Pakistan
(SBP) and from the European Union so the changing political environment is not
so beneficial for the bank to operate freely. The changing policies of the
government, affects SBP which in return affects the MEEZAN BANK rules and
policies.

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The government of Pakistan has privatized most of the banks. The number of
government owned banks have declined constantly, so these changes directly affect
MEEZAN BANK.

Economical
The economy of any country has deep impact on any financial organization.
Economic indicators include Gross Domestic Product (GDP), inflation, balance of
payment, debt of the government. These below graphs will explain how economic
conditions of Pakistan are adversely affecting the banking system of Pakistan.

The pitiable economy of Pakistan and instable government is adversely affecting


MEEZAN BANK and its different departments; recently MEEZAN BANK has
redundant many of its employees. The economy of our Pakistan is very poor. Due
to poor economy businesses are showing low profits and Pakistan stock market is
in great danger. Pakistan’s foreign debts are rising day by day, so such a situation is
a huge challenge for MEEZAN BANK to survive. Due to financial crisis in
Pakistan the management of MEEZAN BANK has to face stressful situations and
also working environment. At present the MEEZAN BANK is not extending loans
but recovering the existing ones.

Social
MEEZAN BANK has been influenced by the socio-cultural factors. At present
most of the European countries are keeping their eyes on Pakistan as being the
terrorist country, so people of Pakistan are emotionally getting affected by it. Most
of the foreign investments have been stopped in Pakistan. Pakistani people are
traditionalists who do not like the modern banking environment of MEEZAN
BANK. Some of the customers do not use ATMs they still prefer cash counters, so
these kinds of socio-cultural factors affect the banking environment and its
operations.

Technological
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Technology has a deep influence on different kinds of organizations whether banks
or any kind social welfare organizations. In MEEZAN BANK technology has great
effect on the working environment. Mostly all banks use computers none of the
banks keep data manually so the bank has to be continuously in touch with the
modern ways of task performance. MEEZAN BANK is always ahead to introduce
new computer systems for keeping its staff up to date. The intranet facility is
playing an important role in enhancing the knowledge of staff.

RATIOS ANALYSIS :

A) LIQUIDITY RATIO:

1) Current Ratio:
“A liquidity ratio that measures a company's ability to pay short-term obligations”.

Current ratio=current asset/ current liabilities


2014

Current asset 468,168,736


Current liabilities 420,467,889
Current ratio 1.11
2015

518,900,004
Current asset
467,322,067
Current liabilities
1.110369145
Current ratio

2016

Current asset 600,590,624

Current liabilities 539,756,155

Current ratio 1.11


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2017

Current asset 701,815,811

Current liabilities 633,908,115

Current ratio 1.107

2018

Current asset 759,956,718

Current liabilities 681,011,672

Current ratio 1.116

2) Quick Ratio

Quick Ratio = Quick Assets/Current Liabilities


2014

Quick assets 301,034,271

Current Liabilities 420,467,889

Quick Ratio 0.72:1

2015
Quick assets 305,839,122

Current Liabilities 467,322,067

Quick Ratio 0.65:1

2
2

2016

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1
8
Quick Assets 283,939,011
Current Liabilities 539,756,155
Quick Ratio 0.53:1

2017

Quick Assets 299,746,895

Current Liabilities 633,908,115

Quick Ratio 0.47:1

2018
Quick Assets 310,950,699

Current Liabilities 681,011,672

Quick Ratio 0.46:1

Cash Ratio:
Cash and equivalent are the most liquid assets. The cash ratio shows the proportion of the assets
held in the most liquid possible form. It is used to check the liquidity of the organization.

Cash Ratio= Cash Equivalents + Marketable Securities/Current Liabilities

2014
Cash Equivalent + Marketable Securities 44,784,864
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Current Liabilities 420,467,889

Cash Ratio 0.11

2015

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Cash Equivalent + Marketable Securities 46,885,752

Current Liabilities 467,322,067

Cash Ratio 0.100


2016
Cash Equivalent + Marketable Securities 55,403,785

Current Liabilities 539,756,155

Cash Ratio 0.103

2017
Cash Equivalent + Marketable Securities 58,612,103

Current Liabilities 633,908,115

Working Capital 0.092

2018
Cash Equivalent + Marketable Securities 61,483,096

Current Liabilities 681,011,672

Working Capital 0.09

a) Capital Structure Ratio:


Debt Ratio:
A financial ratio that measures the extent of a company’s or consumer’s leverage. The 2
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debt ratio is defined as the ratio of total debt to total assets, expressed in percentage, and can be
interpreted as the proportion of a company’s assets that are financed by debt.
Debt Ratio: Total Liabilities / Total Assets

2014
Total Liabilities 439,483,714

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Total Assets 509,223,727

Debt Ratio 86%

2015
Total Liabilities 488,348,404

Total Assets 567,552,613

Debt Ratio 86%

2016
Total Liabilities 564,622,053

Total Assets 653,782,292

Debt Ratio 86%

2017
Total Liabilities 664,604,008

Total Assets 767,074,697

Debt Ratio 87%

2018
Total Liabilities 705,277,390

Total Assets 815,508,371

Debt Ratio 86%


2
5

Average Profit per Branch:


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Average Profit per Branch = Net profit / No. of Branches
2014
Net profit 15,495,297

No. of Branches 1150

Average Profit per Branch 13474.17

2015
Net profit 16,873,175

No. of Branches 1150

Average Profit per Branch 14672.33

2016
Net profit 19,424,906

No. of Branches 1150

Average Profit per Branch 16891.22

2017
Net profit 20,673,002

No. of Branches 1150

Average Profit per Branch 17976.52

2018
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Net profit 21,495,338 6
No. of Branches 1150

Average Profit per Branch 18691.59

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IF YOU (Internee) would be the manager there.

If I will manager I will be responsible for supervising and


managing a bank branch. They will oversee financial reporting, hire and train
staff, and grow branch revenue.Duties include managing and supervising
employees, assisting customers, and providing excellent customer service.

APPLICATION OF CLASS ROOM LEARNING

I saw some practical application of some class room learning. I saw most of
knowledge application in Trade finance department, Credit Administration and
Credit marketing. Operation department had less knowledge application.

At Trade Finance Department, I got a lot of practical exposure of studying


International Finance. Since this department mostly deals with imports and
exports, I saw t h e pr o c e s s i n g o f l e t t e r o f cr e d i t a n d t h e d o c u m e n t s
n e e d e d f or i m p or t s a n d e x p o r t s . Customers were coming for the purpose of
their business and they were informed about t h e r u l e s a n d r e g u l a t i o n f o r

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i m p o r t i n g a n d e x p or t i n g . L e t t e r of g u a r a n t e e s w e r e a l s o issued by
the department.

At the Credit Department, my practical learning was excellent. At this


department, the loans are to be disbursed. So for this purpose. Loan is disbursed
after the complete study of financial reports such as balance sheet and
income statement. Making of installments, interest charging and calculation and
others all were practically performed at the department. Strategic planning and
quality control are two processes that empower managers by providing vehicle for
iteratively monitoring and modifying performance in order to achieve a desired
level of performance. In my view strategic planning and quality control are
interrelated processes. Strategic planning is an effort to produce fundamental
decisions and actions that shape and guide what an organization is, and what it
does. This is accomplished by setting or changing organizational objectives,
identifying and obtaining the resources required to meet these objectives, and
determining the strategies, programs, and policies needed to accomplish the
objectives.

SUGGESTIONS

An organization considered to be lucky whose bad debts are recovered, the bank of
Punjab having too much bad debts due to preference of loans to dictators.
My opinion to raise the profit of MEBL, first they recover their bad debts. If they
do it,
Then their profitability ratio will exceed.

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In my analysis MEBL consumes their operating incomes as regarding the year
2008. I will not say to close their costs because these are not to be closed but these
are to be reduced.

According to statements of 2008, in Mezan Bank having no much shares of


investors. MEEZAN BANK depends on the debt, who improves the price to
earnings ratio. For the life of the bank, the upper management will make some
strong strategies, who compete it from the competitors. In my internship program, I
see mostly the persons of government job holders make their accounts in the
branch.

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