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Internship training for the students of Commerce and Business 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 dur ing their academic program at the institute.Meezan Bank 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 Meezan Bank Ltd.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 heartly grateful to CAD ( Housing) department, Manager CAD & The Senior Vice President, Mustafa Mohsin, Assistant Manager Syed Adnan Ali, Officer Aurangzab, Qaiser, Naeem & Javed. They have been most supportive people throught my internship. And I want to pay my thanks to Humail Jilani, Sana mehmood, Salman, Kashif, Ali, Rehan, faraz from Car Ijarah. Faraz Ahmed Jalal, Habeeb Siddiqui, Noman Ahmed & Akif From Labbaik & Laptop. Akrama Farroqi, Salman, Fahad Khan, from Housing. Raza Saeed, Amir, from RMU for their cooperation..


This report is specially meant for students of commerce. It is concerned to a brief study of the operations, functions, Products and Services of Meezan Bank. Meezan Bank 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, products and Functions along with their features. It also includes departmental work in MBL Consumer Head Office.


Meezan Bank Limited, a publicy listed company was incorporated on January 27, 1997 and started its operations as an investment Bank in August that year. In January 2002 Meezan bank was granted as nations full-fledged commercial bank licence as a dedicated Islamic Bank, by The State Bank of Pakistan. Meezan
Bank is the first and largest Islamic Bank in Pakistan having a network of over 220 branches in over 60 cities across Pakistan. Meezan Bank offers a complete range of Islamic banking products and services, including free online banking for all Pak Rupee account at all its branches.Meezan Bank today a

noteworthy point along with the evaluation of Islamic Banking in pakistan. Meezan Bank 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 dynamic and stabled Islamic Banking System. Meezan Bank offereing valuable products and services to its customers without any violation of shariah principles.



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


To be a premier Islamic bank, offering a onestop 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.


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 Meezan Bank are Internationally-renowned scholars, serving on the boards of many Islamic banks operating in different countries.

The members of the Board are: Justice (Retd.) Muhammad Taqi Usmani (Chairman) Dr. Abdul Sattar Abu Ghuddah Sheikh Essam M. Ishaq Dr. Muhammad Imran Ashraf Usmani (Shariah Advisor) The Board of Directors of Meezan Bank:

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)


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



Banks that comply with Islamic law are forbidden to charge interest or late payment fees, which is also considered a type of riba. To minimize risk, banks will often require a large down payment on goods and property, or insist upon large collateral. It is lawful for the Bank to charge a higher price for a good if payments are deferred or collected at a later date since it is considered a trade for goods rather than collecting interest. Sharia-complaint banking products include Mudharabah (profit sharing), Wadiah (safekeeping), Musharakah (joint venture), Murabahah (cost plus) and Ijarah (leasing). Another way that banks work within Islamic laws while trying to turn a profit is by buying an item that the customer wants, and then selling the item to the customer at a higher price.

Products Of Meezan Bank

1) Car Ijarah

2) Housing Finance (MUSHARKAH)

3) Meezan Lap-Top (MUSSAWAMA)

4) Meezan Labbaik Ummrah

(YOUR OWN CAR. QUICK, AFFORDABLE & HALAL! ) 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, contradictory to Islamic Shariah.

Under Car Ijarah in Meezan Bank, 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.


There are two separate entities in Car ijarah.


Salaried individuals, With necasary documents and conditions can apply for Car Ijarah Facility.



Small Business Entities. SMEs are legal entities that work on small basis. Sole Propritership & Partnership having less than 50 Million current assets are called SMEs.


To lie in Commercial Entities, A firm must have sales of 300 millions & above 50 million current assets.


Corporate are those Entities having above 700 millions sales. Mostly the Companies registered under companies Ordinance are corporate firm. Tenure: 3 to 5 years 0 to 50%

Security Deposit:

( 0% S.D is not for Individual Clients, because due to State Bank regulations relaxation can be given to Corprates. )

Key Features of Car Ijarah

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

Additional Car Ijarah features are;

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 abovementioned 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 Islamic product for insurance.

The Islamic Insurance Companies in transactions with Meezan Bank are Pak Kuwait Takaful & Pak Qatar Takaful.

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.

2) Easy Home
Importance of Halal home finance Owning your own home is one of life's most important achievements. It represents your security, stability, and is a great blessing in itself. It provides that all-important safety and comfort for you and your loved ones. However, in today's often unpredictable and costly environment, saving the required money can take a lifetime in itself. Rising property prices, taxes, inflation, currency devaluation it's all a very hard bargain. On the other hand, owning your own home and paying an easy installment that takes you step by step towards complete ownership, is so much better than paying a rent which ultimately only adds to your expenses. Added to that is your desire to stay away from interest based financing and be totally Riba-Free, thus achieving that inner satisfaction and peace of mind you desire so much. Why not have the best of both worlds? Isn't that what you are working so hard for anyway

First complete Islamic Home Finance facility in Pakistan!


Easy Home is comprehensive, affordable, and totally hassle-free. For at Meezan Bank, people are committed to meeting customers' needs, in a truly Shariah-compliant manner coupled with dedicated service excellence. Islamic Financing on a Diminishing Musharakah basis With Easy Home customer participate with Meezan Bank in a joint ownership of property, where the Bank will provide a certain amount of financing - usually up to 85%. They agree to a monthly payment to the Bank of which a component is for the use of the home (rent), and another for equity share. In fact, the total monthly payment is reduced regularly as your share in the property grows. When customers have made the full investment that had been agreed, customer become the sole owner with a free and clear title to the property.


Eligibility - Pakistani and Non Resident Pakistanis as Citizenship per policy Pakistan & other countries (NRP) as per Residence & Work Address policy - Minimum age required for a Primary Customer is 25 years. -Co-applicant must be over 21 years of age. - Maximum 65 years old at the time of maturity of facility for Primary Customer. Age - Maximum 70 years old at the time of facility maturity for Co-applicant. In case of Salaried Person - Applicant and/or Co-applicant, maturity date of facility shall not exceed the date of retirement. - Primary (or Single) & Co-applicant allowed. Customer / Applicant - Co-applicant must be a member of the immediate family i.e. spouse & parents only Salaried - Minimum Gross Income of PKR 20,000 per month. - 100% Co-applicant income will be clubbed in case of spouse. Income Self- Minimum Gross Salary of PKR 50,000 per Employed / month. Business Person - Two personal references (one relative and Personal Reference other office colleague/friend) not living with the customer Salaried - Permanent job with a minimum 2 years continuous work history in the same industry / field. Employment SelfTenure Employed / Business - Minimum 3 years in current business / Person industry.


Particulars Citizenship Product Category Builder / Renovation Cases

Eligibility (For NRP Customers) Pakistani Buyer, Builder, Renovation & Replacement In such cases, a responsible person will be 14 appointed by the NRP customer who will look after construction on Musharakah property/land.


COMMENCEMENT OF AGREEMENT. The contract of Diminishing Musharaka house financing can be effected for a future date on the condition that the profit rate is payable after possession of the house by the client. Thus an effective forward contract is allowed despite its prohibition in Islam. It is called a later contract by the Islamic bank. Repayment of principal and profit / rent becomes due on possession of property by the client. 1- TERMINATION OF CONTRACT If the financier contravenes any term of the agreement, the client has the right to terminate the Musharaka contract unilaterally. If there is no contravention on the part of the financier, the contract cannot be terminated without mutual consent by the client. In case of the death of the client the contract will be

terminated and it will be renewable by his successors. The client can terminate contract by purchasing the shares of the bank. 2- RISK OF LOSS In the Diminishing Musharaka house financing contract the financier as a Shirkat-ul-Milk participates in profit not in loss, the client will participate in both profit and loss, and the client will bear all losses.

3- OWNERSHIP PROVISION In the Diminishing Musharaka house financing contract the bank and the client co-own the house according to a predetermined ratio, if the bank invests 80% and the client invests 20%, the bank will own 80% of the property. 4- SALE TRANSFER The bank makes an agreement to allow the client to buy the units periodically, thus reducing the share of the bank and increasing the share of the client. This arrangement allows the bank to claim rent according to its proportion of ownership in the property and at the same time allows a periodical return of a part of the principal through purchase of the units of the banks share of the house by the client. 5- EXPENSE CONSEQUENT TO OWNERSHIP

In Diminishing Musharaka house financing contract the client pays all expenses consequent to ownership, the bank participates in profit not in expenses or losses. 6- SECURITY Meezan Bank and AlBaraka require mortgage deeds. They prefer simple and registered mortgages.

7- LIABILITY OF BANK In Diminishing Musharaka house financing contracts the bank is liable for complying with the terms of the agreements. These include payments according to pre-determined schedules and sale of its share to the client. At the time of agreement the bank must disclose all facts pertinent to the agreement before the agreement is enacted 9- RIGHTS OF BANKS CLIENT Diminishing Musharaka house financing. In Diminishing Musharaka house financing contracts the following are the rights and the powers of partners. 10-PENALTY ON LATE PAYMENT


In Diminishing Musharaka house financing contracts the bank is entitled to charge penalty on late payments. Standard Chartered (Islamic bank), Meezan and Alabaraka charge penalty after 45 days. If the client makes late payments, the bank will continuously charge penalty.

Home offers customers a comprehensive solution with:

Easy Buyer Easy Builder Easy Renovate Easy Replacement -

Within these wonderful options come the special benefits of Easy Home. Flexible Financing Tailored to Support customers. High financing amounts. Maximum financing against property value. Flexibility to make partial prepayments.

Minimal processing charges. Very affordable and competitive monthly payment plan with a regularly reducing rental amount.

Quick Processing Time

Absolutely hassle-free. Quick turn-around-times, with no burdensome complexities or excess paper work. Its simple, halal, and easy! Come and take the step towards Riba free financing for your home, made easy with Meezan Bank's Easy Home!

Easy Buyer
Buying a Home is Easy & Halal!.
Meezan Bank will finance up to 70% of the appraised value of your home cost to salaried individuals & 60% to Businessmen.. Flexible financing by calculating DBR ( Debt Burden Ratio) Easy selection of financing tenure from a minimum of 2 years (excluding construction period of max 12 months) up to a maximum of 20 years. ( in some cases it can go with 25 years Tenure)


Easy Builder
Building a Home is Easy & Halal!
For that special home you want to build yourself, or to help continue construction you may have already started. Meezan Bank will finance up to 70% of the appraised value of your home cost to salaried individuals & 60% to Businessmen.. Flexible financing by calculating DBR ( Debt Burden Ratio) Easy selection of financing tenure from a minimum of 2 years (excluding construction period of max 12 months) up to a maximum of 20 years. ( in some cases it can go with 25 years Tenure)

Easy Renovate
Renovating your Home is Easy & Halal!
Making your home even better or just repairing it, do it with Meezan Bank's Easy Renovate! Meezan bank finances maximum 30% of the Property Value in case of Renovation.

Easy Replace

Replacing your existing mortgage to Islamic mode is Easy & Halal

Ready for transaction if it is replaced from Islamic Bank.

It will Take period of 12 Months in case of replacement from Conventional Banks.

Rent Amount Is calculated with taking three figures. 1) UNIT COST (Dividing financing Amount with Total units/ months) 2) KIBOR ( Karachi Inter Bank Office Rate)Currently 14.29 3) PROFIT RATE 3 for Salaried. 4 for Businessmen. 2 for listed Companies in Banks profile.


Modes of payment UMI EMI STEP UP

Meezan Bank launches Laptop Ease offer in April 2011. It is a Shariah-compliant laptop financing, for individuals and for corporate class of pakistan. By choosing this facility, customers can grab at their laptop sets by a process of easy installments..

Special features of Meezan Laptop Ease:

Easy Installment options for financing period for 3 to 24 months. 2 years warranty with parts provided by vendor. Free Caring Case will be provided by vendor. Dedicated Call Center by New Horizon (vendor) for addressing after sale issues and providing after sales support to the customers at their door step Absolutely Free Takaful Coverage. All laptops acquired through Meezan Laptop Ease will be covered by Takaful (Islamic Insurance) before delivery to the customers. Minimum down payment up to 15%


Laptop model offerings will vary from time to time in consistence with the latest & upgraded features and market demand. Minimum age to avail this offer for both individuals and businessmen should be 20 years and maximum age should not cross over 60 and 65 years, respectively. Laptops are available at easy monthly installments of as low as Rs 2,750/-



Pakistani, Adult, Permanent resident


Minimum 20, Maximum 65 at maturity

Income (PKR)

PKR 40,000/-

Personal Reference

Two personal references (one relative and other office colleague/friend) not living with the customer.

Employment & Business Tenure

Minimum 2 years in same business (Business tenure to be verified via


Bank Certificate, NTN Certificate, Tax returns, Proprietorship letter, Registered Partnership deed etc)

Citizenship Pakistani, Adult, Permanent resident


Minimum 20, Maximum 60 (Salaried) at maturity (Applicant maturity date of facility shall not exceed the date of retirement.)

Income (PKR) Personal Reference

PKR 25,000/- (Gross Salary) Two personal references (one relative and other office colleague/friend) not living with the customer. Permanent job with minimum 1 year continuous working history in same industry. Direct company contract valid till maturity date of financing (Total 1 year

Employment & Business Tenure


previous working experience is mandatory).


Labbaik Travel Aasaan
Labbaik Travel Aasaan is a completely Halal & Riba Free Travel Solution.

Key Features Completely Halal & Shariah Approved. Renowned Travel Agents on Meezan Bank's panel Umrah Packages for different durations & facilities are available

Complete Visa Processing and Umrah Package Arrangements by selected a Confirmed return airline tickets

Labbaik Saving Aasaan Account

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, Partnerships and Limited Companies.

Key Features
Meezan Labbaik Savings Aasaan provides a number of features


Available for individuals, where customers can open a single / joint account with family members 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 Apart from regular monthly deposit contribution customers can deposit additional amounts in order to complete the


deposit amount and make the 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.

Functional Departments Of Meezan Bank


Credit Inniation (CIU) Risk Management (RMU) Credit Administration (CAD) Collection & Recovery

Sales is the most important and fundamental function of Revenue generation.

They approach the customers through, Direct Sales Dealers reference Branch Customers Branch Coordinators Telemarketing

Functions Of Sales Department

Create marketing strategies to achieve sales targets of a bank.

Implement best practices to meet customers' needs and requirements. Implement best practices to meet customers' needs and requirements.

Initiate customer retention strategies and build new customers

Lead, direct and mentor sales and marketing teams to achieve hundred percent outcome.

Initiate campaign strategies for bank products and services

Resolve customer needs. Understand customer financial needs and objectives. Recommend appropriate financial product or service to the customer.


Assist and support bank management in delivering customer services Prepare sales and marketing statements and reports for the top management of the bank.


It is obvious that every bank must have an independent department that deals with the credit function. Department in a bank that evaluates the financial condition of credit applicants and maintains a log of loan payments on currently outstanding loans. Credit information is gathered on a confidential basis and stored for future reference. The credit department also responds to requests by other lenders for credit information on a particular borrower CIU makes the case, Reveiw the case, Assess the potentials of the client to repay the assets value, check the opinions and worth of the compamy.



MEEZAN BANKS risk management policy rests on its sound and Islamic bank management culture and complies largely with international Islamic Banking standards, management requirements, corporate governance principles and carries with it the highest ethical values from within the banking profession. The Organizational Structure of the Risk Management Group. The bank has set in place an independent risk management function within The Risk Management department, covering all risks: market, credit and operational risk. The Head of Risk Management reports to the Audit Committee, whose members are chosen among the Board of Directors. The Board of Directors formally approves overall risk management strategies and the direction of business. The Board regularly monitors the bank's financial performance, reviews and controls risk management activities and bears the final responsibility of approving the bank's risk appetite. Risk Management Department is the center of performing this function. This department reports to the Banks Risk Committee, The Head of Risk Management Group.



Leads centralized credit administration and control department whose function is to provide a uniform and efficient credit administration and control service encompassing completion of security/transaction documentation formalities, safe custody function, MIS development for monitoring of bank's exposure from different risk angles to ensure that a high level of credit administration support is provided to the banks business units to protect bank's risk assets. Reveiw the case Makes observation Disburse The Case Generate Installements Prepare Legal doucuments & Agreements Principal Duties & Responsibilities: Manage the Documentation and Limits Control Units

Prepare accurate documentation of credit facilities to ensure that the same is legally enforceable without lacunas. Review security/transaction documents with a view to make it convenient for customers without compromising bank's interest. Manage effective and efficient safe custody of original security/transaction documentation and title deeds etc belonging to clients/third parties. To ensure that safe custody procedures are meticulously implemented. Ensure credit documentation deferrals are effectively followed up with Business Units for perfection within the time allowed. Arrange the valuations, from banks approved evaluators, of real estates held as collateral in line with Credit Risk Policy. Maintain marked to the market valuation for shares, mutual funds and other marketable securities and advise to business units where and violation of Approval of Finance / Credit Risk Policy occurred. To follow up with Business Units for early execution of documentation by clients. Immediate and accurate feeding of limits into the system once security documentation is completed by the client.

Ensure least Turn Around Time (TAT) in line with SLAs with business units. Generate / Maintain MIS to monitor the portfolio and to prompt Business Units for timely completion of annual reviews by providing necessary reports regarding expiring/expired facilities. Prepare weekly/monthly Exceptions Report and circulate daily Overdrawn / Excess Over Limits report to the senior management and business units. Upload the accurate data as per the requirements of regulator. Managing and guiding team to execute above responsibility and help in their professional development. Managing specific tasks / projects assigned by the CRO from time to time in relation to Credit Administration & Control.


The Recovery & Collection function is an important component of any Banks business operations. The key is knowing when and

how to accomplish the sale safely. The key is to find the best way to minimize the risk of late payment or non-payment by customers. The core activities of the collection department include: Accelerating cash flow Minimizing bad debt losses Reviewing and approving new accounts Developing and updating credit and collection policies Managing the collection function Maintaining current information in the credit file on each active customer Researching and resolving disputes and deductions that would otherwise delay or prevent payment of accounts receivable

Communicating with other departments within the Bank.

Safeguarding the company's investment in accounts receivable



Before due date Sms are sent to the customers.

One day past, the payment become Overdue. Frontend is the period from 1 to 29 days. An INTIMATION LETTER is sent to the customer by the bank as a soft reminder and Calls are made.


When overdues are not cleared by the customer within 29 days, Customer entered into 30+ DPD ( Day Past Due) Mid range is the period of 30 days to 59 days. REMINDER LETTER is sent to Customer. Home Visits are made. Tone is changed from soft reminders to aggressive one.



60+ DPD, 60 to 89 days of due payments are called Non Performing Loans. LEGAL NOTICE sent the customer with the time frame of 15 days to settle the payments. After that time limit, bank have the right to Repossess the vehicle. In case of reposession, Bank take the services of Agencies as 3rd party, after reposession Vchile is parked to the warehouse and FINAL LETTER is sent by bank to the customer. In which Total Amount including total purchase price, Over due Rentals, Surcharge amount, Valuation, legal, Parking and deduction of Security Deposit is mentioned. Where customer is offered to settle the account. But if customer fails to settle his account then Banks has options to sell or Auction the vehicle. A file is maintianed, called Repo File. It consists of Reminder Letter Copy Of Legal Notice Lease Agreement Copy Complete Exise File Copy Of Customers CNIC


Application Form Coppy

RECOVERY After 90 days customer entered into 90+ DPD. And Non preforming Loan shifted to Recovery.