(My ids add me for internship report help) Alihaider.haider5@gmail.

com
Virtual University of Pakistan valuation !heet for "nternship #eport !pring $%&& '"(")&*+ "nternship #eport ('inance) ,redit -ours+ .

valuation ,riteria #eport 1riting Presentation 2 Viva voce 'inal #esult (ame of !tudent+ Kamran Haider

#esult Pass

!tudent/s "0+ mc090403432

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Mee3an 4ank 5imited

6ulshan7e7#avi 4ranch (%$&5)

Submitted By:
Kamran Haider mc090403432 Spring 2011

Submission Date: 5th 8uly9 $%&&

Virtual University of Pakistan

Dedicated to
I dedicate this report to my parents ithout hose he!p and encouragement it ou!d not ha"e been possib!e #or me to accomp!ish this tas$ ithin the speci#ic time !imit% I as pro"ided ith e"ery #aci!ity by my parents hich as necessary in order to comp!ete this cha!!enging assignment%

&c$no !edgment
" am much thankful to :&!mighty &!!ah' the most ;eneficent9 the most mercy full 1ho has given me strength to complete this task. " am also thankful to Mr. Muhammad Arshad and Mr. Muddassar Ahmad 4hatti9 4ranch Manager and <peration Manager respectively of Mee3an 4ank 5imited9 6ulshan7e7#avi 4ranch9 5ahore 1ithout 1hose guidance and support it 1ould not have ;een possi;le for me to accomplish this assignment. 'urther more9 " am inde;ted to the staff of Mee3an 4ank 5imited9 6ulshan7e7#avi 4ranch9 5ahore from 1hom " have gained much e=perience regarding operational 1ork of 4ank is concerned. >he last ;ut not the least " convey my credit and thankfulness to Virtual Universities Authorities 1ithout 1hose 1ell in time support and guidance it 1ould ;e much difficult for me to achieve this task successfully.

()ecuti"e Summary
Mee3an 4ank 5imited (M45) (the holding company) 1as incorporated in Pakistan on 8anuary $@9 &**@ as a pu;lic listed company under the companies ordinance9 &*A? and its share Buoted in Carachi stock e=change. M45 1as registered as an D"nvestment financing company on August A9 &**@ and carried on the ;usiness of investment ;anking as permitted under !#< 5A5(")EA@ dated 8uly &.9 &*A@ in accordance and in conformity 1ith the principle of "slamic sharaih. A certificate of commencement of ;usiness 1as issued to M45 on !eptem;er $*9 &**@. M45 1as granted a D!cheduled "slamic commercial ;ank/ license on 8anuary .&9 $%%$ are formally commenced operations as a scheduled "slamic ,ommercial 4ank Fith effect from March $%9 $%%$ on receiving notification is this regard from !tate 4ank of Pakistan (!4P) under section .@ of the !tatement 4ank of Pakistan Act9 &*5). Mee3an 4ank 5imited has $$$ ;ranches in ). cities across Pakistan and it ;ecame the &&th largest 4ank in Pakistan in term of ;ranch net1ork. Mee3an 4ank 5imited ;eing an "slamic 4ank offering its products to its customers strictly in accordance 1ith the shariah compliance. "t is doing ;usiness in ,orporate 4anking9 ,ommercial 4anking9 ,onsumer 4anking9 retail 4anking9 "nvestment 4anking keeping in vie1 the all norms and standards of "slamic inGunction. 0uring the period of my internship from A May9 $%&& to $ 8une9 $%&&9 " 1orked in ,ustomer !ervice !H,9 ,learing 2 #emittance and Account <pening successfully and acBuired a lot of kno1ledge and e=perience 1hile interacting 1ith staff of Mee3an 4ank 5imited. As for as different ratios of Mee3an 4ank 5imited9 they all give a healthy sign regarding financial position of the 4ank as 1ell as operation results of the different financial years. All ratios are fully in accordance 1ith the ;anking "ndustry/s standard and norm 1hich is a yard stick to measure the performance of any ;ank. >hese ratios depict and indicate that the financial strength of the 4ank is on a higher side and future prospect of the 4ank is ;righter. ,onclusion and #ecommendations are an integral part of this report. 4i;liography regarding data collection and references 1here from informations have ;een o;tained.

*ab!e o# +ontents
*it!e ,ageIIIIIIIIIIIII....................................................%& +hapter 01 Introduction o# Ban$ingIIIIIIIIIIIIIIIIII...... %A +hapter 02 -"er"ie o# .ee/an Ban$ 0imited 2%1 History11111111111111111%%%%%%09 2%2 $.. $.? $.5 $.) $.@ $.A +hapter 03 Internship ,rogram ..& +hapter 04 *raining ,rogram ?.& +hapter 03 4atio &na!ysis 5.& 'inancial !tatements of M45IIIIIIIIII.$. +hapter 05 6uture ,rospects o# .B0IIIIIIIIIIIIIIIIIIII.?A +hapter 07 +onc!usionIIIIII.IIIIIIIIIIIIIIIIIII...?* +hapter 08 4ecommendationsIIIIIIIIIIIIIIIIIIIII........5% +hapter 09 Bib!iography IIIIIIIIIIIIIIIIIIIIIIII.I5& "ntroduction of 6ulshan7e7#avi 4ranchIIIII.&@ 2ision and .ission Statements11111111111 <rgani3ations -ierarchical ,hartIII.....................&$ 4usiness VolumeIIIIIIIIIIIIII..&. Product 5ines I............................................................&. ,ompetitorsIIIIIIIIIIIII.II......&? "ntroduction of All departmentsIIIII.III...&5 ,omments on <rgani3ational !tructureIIIIII.&)

>raining ProgramIIIIIIIIIII.III..&A

Introduction:
4anking plays a very significant role in the economic development of a country. After Partition of "ndia and Pakistan 4ritish 6overnment/s commission distri;uted the reserves ;et1een Pakistan and "ndia. "n August &*?@9 various 4anks transferred their headBuarters and funds to "ndia. 4efore partition of Pak7o7-ind9 some 4anks 1ere operated 1hich 1ere ,hartered 4ank9 6rind7 lays 4ank9 "mperial 4ank of "ndia9 Australasia 4ank and -a;i; 4ank. After the independence of Pakistan9 Muslim ,ommercial 4ank 5imited9 4ank of 4aha1alpur 5imited9 PunGa; (ational 4ank and (ational 4ank of Pakistan 1ere providing ;anking facilities to general pu;lic. >he !tate 4ank of Pakistan 1as inaugurated ;y our great leader Muhammad Ali 8innah. <n &st 8uly9 &*?A. Australasia 4ank and -a;i; 4ank 1ere providing facilities to the Pakistan/s nation. After some period9 Australasia 4ank 5imited 1as converted into Allied 4ank of Pakistan. !tate 4ank of Pakistan is a ,entral 4ank of Pakistan. <ther 4anks are ,ommercial 4anks9 !peciali3ed 4ank and "nvestment 4anks. (o1 a days in Pakistan9 fifty four ;anks are operated 1ith thousands of ;ranches. 4anks are providing 4anking facilities to their customers and clients ;y offering different services and packages. Pakistan/s ;anking sector consisting of "slamic 4anks9 Private 4anks9 Pu;lic !ector 4anks9 and Micro 'inance 4anks. >hese 4anks are doing ,orporate 4anking9 >rade 'inancing9 5ease 'inancing and some 4anks are providing online ;anking facilities9 A>M facility and money transfer facilities also. 4anking sector is a ;ack ;one of our economy. "f this sector is making progress than 1hole economy is also gro1ing a lot. <ur Agricultural sector9 "ndustrial sector9 Mining sector9 =port sector all depend on the ;anking industry ;ecause 4anks provide long term funds as 1ell as short term funds to all these sectors to meet out their short term as 1ell as long term reBuirement. -ence9 ;anking progress is necessary indeed.

-"er"ie History 1997

Al7Mee3an "nvestment 4ank 1as esta;lished 1ith a mandate to pursue "slamic 4anking. Mr. "rfan !iddiBui 1as appointed as first founding ,hief =ecutive <fficer.

1999
>he shariat Appellate 4ench of the !upreme ,ourt of Pakistan reGects appeals and direct all la1s on interest ;anking to cease. >he government sets up a high level commission9 task force and committees to institute and promote "slamic ;anking on parallel ;asis 1ith conventional system.

2001
>he shariah !upervisory 4oard is esta;lish at Al7Mee3an "nvestment 4ank led ;y Gustice (#etd.) Muhammad >aBi Usmani as chairman. !tate 4ank of Pakistan sets ,riteria for esta;lishment of "slamic commercial ;anks to conduct "slamic ;anking in the country.

2002
Mee3an 4ank acBuires the Pakistan operations of !ociete 6enerale and concurrently Al7 Mee3an "nvestment 4ank converts itself into a full fledged "slamic commercial ;ank. >he first "slamic ;anking license is issued to ;ank and it is renamed Mee3an 4ank. President 6eneral Perve3 Musharraf inaugurates the ne1 "slamic ,ommercial 4ank at a formal ceremony in Carachi.

2003
Mee3an 4ank esta;lishes itself as the pioneer of "slamic 4anking in Pakistan and Huickly sta;lishes ;ranches in all maGor cities of country. A 1ide range of products are developed and lunched consolidating the 4ank/s position as the premier "slamic 4ank of the country Al Mee3an "nvestment Management limited (AM"M)9 the asset management arm of Mee3an 4ank9 introduces Mee3an "slamic 'und (M"')9 the country9 first open7end "slamic Mutual 'und.

2004
A

>he !tate 4ank esta;lishes a dedicated "slamic 4anking 0epartment ("40) ;y merging the "slamic conomic 0ivision of the #esearch 0epartment 1ith the "slamic 4anking 0ivision of ;anking policy 0epartment. A shariah 4oard has ;een appointed regulate and approve guidelines for the emerging "slamic 4anking industry. >he 6overnment of Pakistan a1ards the mandate for de;ut of international sukuk (4ond) offering for U!0 5%% million. >he offering is success and esta;lishes a ;enchmark for Pakistan Mee3an 4ank acts as the !hariah structuring Advisor for the historic transaction.

2003
Mee3an 4ank ;ecomes the first customer of "slamic "nsurance (>akaful) ;y signing the first Memorandum of understanding MoU 1ith Pak7Ca1ait >akaful ,ompany 5imited (PC>,5). >he signing of this MoU has ushered Pakistan into a ne1 era of "slamic insurance (>akaful)

2005
A num;er of ne1 dedicated "slamic 4anks9 namely 4ank "slamic and 0u;ai "slamic 4ank9 commence operations in Pakistan. Mee3an continues its leadership position in the industry ;y more than dou;ling it ;ranch net1ork to a total of )$ ;ranches in $& cities9 clearly esta;lishing itself as a largest "slamic 4ank of country. Mee3an 4ank ;ecomes the first "slamic ;ank to introduced A am to A pm ;anking selected ;ranches in Carachi.

2007
Mee3an 4ank/s ;ranch net1ork reached the milestone num;er of &%% ;ranches (including su;7;ranches) in .& cities nation1ide. ,ar "Garah portfolio reached #s. ?.& ;illion and the easy -ome portfolio stood at #s. ..& ;illion. >he 4ank introduced "stisnaJ financing to cater to the 1orking capital needs of customers.

2008
Mee3an ;ank introduced >iGarah financing to allo1 customers to raise funds ne1s for financing of stock of finished goods. Mee3an 4ank 1as a1arded D4est "slamic 4ank in Pakistan/ ;y "slamic financing ne1 of # 0 money 6roup. Malaysia and D4est "slamic 'inancing "nstitution on Pakistan/ ;y 6lo;al financing Maga3ine9 (e1 Kork.

2009
*

$%%* 1as a 1atershed year for Mee3an 4ank. >he ;ranch net1ork reached $%& ;ranches (including su; ;ranches in 5? cities nation1ideL deposit ;ase crossed #s. &%% ;illionL profitEreturn earned on financing and investment activities e=ceeded #s. &% ;illion and the 4ank handled more than #s. &%% ;illion of importEe=port ;usiness.

2010
Mee3an 4ank developed a num;er of ne1 0eposit products to cater the uniBue needs of different market segments. Among the products launched during this year 1ere Mee3an ;usiness plus9 a Mudara;a7;ased account that offer an array of free service for ;usinesses9 Mee3an uro saving Account and Mee3an Pound saving Account. Mee3an 4ank/s ,ar iGarah completed its *th year and stood at #s. ?.$ ;illion 1ith over A9%%% active vehicles. Mee3an 4ank stood among the top three auto7finance providers in the country.

2ision statement:
sta;lish "slamic ;anking as ;anking of first choice to facilitate the implementation of an eBuita;le economic system9 providing a strong foundation for esta;lishing a fair and Gust society for mankind.

.ission Statement:
>o ;e a premier "slamic ;ank9 offering a one7stop shop for innovation value added products and services to our customers 1ithin the ;ounds of shariah9 1hile optimi3ing the shareholder value through an organi3ational culture ;ased on learning9 fairness9 respect for individual enterprise and performance.

&%

-rgani/ationa! Hierarchy chart

Shariah Super"isory Board Board o# Directors &udit +ommittee

!hariah Advisor Product 0evelopment 2 !hariah ,ompliance ,resident : +(-

"nternal "nternal Audit Audit

#isk Management 5egal Affairs ,ompliance Administration 4ranch =pansion 'inance

+hie# -perating -##icer

Branch 9et or$ 'aisala;ad 5ahore Multan

Business Segment ,orporate 4anking "nvestment 4anking ,ommercialE!emi 4anking >reasury 2 'inancial "nstitutions ,onsumer 4anking

Support

<perations "nformation >echnology -uman #esources >raining !ervice Huality

!outh " !outh "" !outh """ (orth

Alternative 0istri;ution && Marketing

Business 2o!ume

Shareho!ding Structure 9oor #inancia! In"estment +o< Ka ait ,a$istan Ka ait In"estment +ompany =p"t> 0imited Is!amic De"e!opment Ban$< ?eddah -ther @@@@@@ ,aid up +apita! @@@@@@

4s% In mi!!ion 3<429 2<093 531 808 @@@@@@@@ 5<983 @@@@@@@@@

; 49 30 9 12 100

,roduct !ine Deposit products

Mee3an 4ank offer the largest range of #i;a7free 0eposit Accounts for Personal 4anking #upee ,urrent Account 5a;;iak !aving Account #upee !aving Account 0ollar !aving Account uro !aving Account Pound !aving Account Mee3an 4achat Account 4usiness plus Account

*erm +erti#icates =4ibaA #ree *erm Deposit +erti#icate>

Mee3an ;ank provides a complete range of short term and long term deposit certificate 1ith the fle=i;ility of monthly9 Buarterly9 semi7annual and annual returns ,ertificate of "slamic "nvestment Mee3an Amdan ,ertificate Monthly Mudara;ah ,ertificate &$

0ollar Mudara;ah ,ertificate

+onsumer 6inance
,onsumer finance provides for construct a home9 purchase a car9 etc+ asy -ome ,ar "Garah 5aptop ase

(!ectronic Ban$ing
lectronic 4anking provides non7stop ;anking convenience9 t1enty four hours a day9 seven days a 1eek. Visa 0e;it ,ard "nternet 4anking A>M (et1ork Mee3an Huickpay !M! Alerts $?E@ ,all ,enter

Ser"ices
Mee3an 4ank is dedicate in its efforts to provide a Buality ;anking e=perience to our customer via a range of uniBue 4anking !ervices 5a;;aik >ravel Aasaan <nline 4anking A to A 4anking 5adies 4anking -ome #emittance Festern union Money >ransfer

+ompetitors
>he maGor competitors of Mee3an 4ank 5imited are 4ank "slami9 0u;ai "slamic 4ank Pakistan 5td9 Al;arka "slamic 4ank. >he other competitors are 4ank Al7'alah 5imited9 4ank Al -a;i; 5imited9 Askari 4ank 5imited9 United 4ank 5imited9 Allied 4ank 5imited9 !oneri 4ank 5imited9 'aisal 4ank 5imited. &.

Introduction to &!! Departments

.ee/an Ban$ 0imited has been di"ided into #o!!o ing di"isions: &ssets .anagement 4etai! Ban$ing Di"ision 0iabi!ity Di"ision +ommon &ssets Di"ision +redit &dministration Di"ision Human 4esources Di"ision 6inance Di"ision *reasury and Internationa! Di"ision In#ormation *echno!ogy Di"ision +orporate Ban$ing Di"ision -peration Di"ision +redit 4is$ .anagement Di"ision +ontro! and +omp!iance Di"ision (stab!ishment Di"ision *raining< 4esearch< +ommunication : ,ub!ic Di"ision +onsumer Ban$ing Di"ision +redit ,o!icy Di"ision &udit : Inspection Di"ision Benera! Ser"ice Di"ision 0a Di"ision

&sset .anagement
>he 4ank invest funds on ;ehalf of its customers (shariah compliant investment product) and gives them access to a 1ide range of traditional and alternative product offerings. 'or e=ample open end funds9 pension funds and closed end funds

4etai! Ban$ing Di"ision

"n this division ;ank deals 1ith customers and e=ecute their transaction directly. 4ank provide the service of savings9 checking of accounts9 mortgages9 personal loans9 de;it cards and A>M cards.

+redit &dministration Di"ision

&?

"n this division9 ;anks deals 1ith the credit9 ;anks gives loans to individuals ans to the corporations.

&udit : inspection Di"ision

>his department of the ;ank conduct audit of all the ;ranches and su;mit its reports to the top level management to take corrective measures.

Human 4esource Di"ision

>his division performs the duty of hiring the employees9 training the employees as 1ell as retaining the employees and if necessary9 firing the employees.

6inance Di"ision
>his division controls the overall activities relating to finance i.e. monitoring the investment activities9 financing activities9 0e;it and ,redit of funds and reasons there of 1ith proofs.

*raining< 4esearch< +ommunication : ,ub!ic Di"ision

>his division makes research a;out the ne1 product9 imparts training to ne1ly hired employees as 1ell as old employees for innovation as per the rules and regulation of !tate 4ank of Pakistan.

-peration Di"ision
>his division controls the 1hole operation of all the ;ranches and controls the cash activities9 cheBues9 account opening and other things a;out operations.

0a Di"ision
>his division engages the la1yers and gives them the po1er of attorney to protect the ;ank to in courts of la1 1here cases have ;een filled ;y the ;ank against defaulters of loan as 1ell as against the ;ank ;y the general pu;lic.

In#ormation *echno!ogy Di"ision

>his division provides the relevant systems for 1orking in the ;ank and protects the data in computers at central place and controls the overall online system on daily ;asis.

&5

+omment on organi/ationa! structure

>he organi3ational structure of the 4ank consists of top level management9 middle level management and lo1er level management. >he top level management comprises of president9 e=ecutive vice president9 and divisional heads. >he middle level management comprises of departmental heads9 !VPs and VPs. >he lo1er level management comprises of AVPs9 Managers9 and <peration Managers. >he reporting system at hori3ontal level is much effective and successful. >he reporting system at vertical level i.e. from lo1er level management to middle level management is also accurate9 timely and complete. >he middle level management gives information to high level management at 1hich decision are made9 rules and regulations are amended keeping in vie1 the present scenario.

&)

*raining ,rogram: .ee/an Ban$ 0imited Bu!shanAeA 4a"i Branch< 0ahore =0213>
Mee3an 4ank 5imited opened its ;ranch at '7*9 6ulshan7e7#avi9 5ahore in $%%@. >he code of ;ranch is %$&5. >he ;ranch incharges consist of a 4ranch Manager and Manager <perations. Manager <perations control the 1hole staff. >he staff consists of ;ranch system administrator and operational staff (include 6rade7& officer9 6rade7$ officer9 6rade7. <fficer and three cash officer) " started internship on Ath April9 $%&& 1hich ended on $nd 8une9 $%&&. >he duration of the internship 1as a;out A 1eeks. >he staff of the ;ranch 1as much cooperative. >hey imparted me training in all departments of the ;ranch i.e. ,ustomer !ervice 7 !H,9 ,learing 2 #emittance and Account <pening. 'rom Ath April9 $%&& to $.rd April9 $%&& " 1orked in ,ustomer !ervice 1here from " learnt a lot regarding attention given to customers ;y the staff of ;ranch. 'rom $5th April9 $%&& to &)th May9 $%&& " 1orked in ,learing 2 #emittance department 1here at " learnt a;out "n1ard ,learing9 <ut1ard clearing9 >ransfer of 'unds. 'rom &)th May9 $%&& to $nd 8une9 $%&& " 1orked in Account <pening 0epartment in 1hich " learnt ho1 to open an account9 ho1 to close an account and ho1 to operate an account.

&@

*raining program
Fith the name of Almighty Allah9 " started my internship 1ith Mee3an 4ank 5imited on Ath May9 $%&& 1hich continued till $ nd 8une9 $%&&. <n first day9 the 4ranch Manager called me in his office and asked some Buestions a;out my studies and teachers. -e told me some ;asic rules and regulations a;out ;anking operation and introduced me 1ith other staff mem;ers of the 4ank

Ser"ice Cua!ity Department

"n this department " 1orked from *th April9 $%&& to $. April9 $%&& 1here from " learnt a lot a;out floor time management and Buality assurance affairs in ;ranch.

6!oor *ime .anagement

Fhile standing near the main gate 1e ensure that customers coming into M45 are properly looked after. Fe also create a sense of o1nership of service Buality and also develop a service mindset and ultimately a Buality service culture at M45. 'urther more9 1e mange the sale and service area of the ;ranch to provide ma=imum opportunities to our clients as 1ell as provide a sense of comfort and personal attention.

4esponsibi!ities o# 6!oor *ime .anagement

Fe maintain and file daily 1orking sheet of 'loor >ime Management and record customer/s complaints in the ,#M. Fe monitor daily log of >A> sheet and put up it to 4ranch Manager. ,omplaint handling and its follo1 up is made on daily ;asis. Modifications and improvements are suggested in the system and process. >ry to make coordination ;et1een ;ranch and -ead <ffice regarding service Buality. 5ead 'loor Manager is assigned duty first of all.

4esponsibi!ities o# 0ead 6!oor .anagerD 6!oor .anager

5ead 'loor Manager 1elcomes all the customers and introduces himself 1ith a smiling face and checks ;ranch cleanliness and pleasant atmosphere in the ;ranch. -e also checks availa;ility customers stationary at proper places as 1ell as maintain the notice and assist in !H. "ndividual customers are provided comprehensive services. -e moves around the ;anking hall and cash counters area to ensure that every customer is looked after properly.

&A

+!earing and 4emittance Department +!earing:

After learning in !ervice Huality 0epartment9 " 1orked in ,learing 0epartment from $5th April9 $%&& to &5th May9 $%&&. " learnt their a;out ,learing of different cheBues and remittance handling. " 1as told there the main o;Gects of clearing. " received all the clearing cheBues and made a schedule of these cheBues after making entries in out1ard and in1ard clearing registers and sent the same to main ;ranch 1here at all the cheBues 1ere sent to ("'> =9ationa! Institutiona! 6aci!itation *echno!ogy>

9I6*:
("'> stand for (ational "nstitutional 'acilitation >echnologies. ,learing -ouse of !4P has shifted a part of its 1ork to private institution named ("'>. ("'> collets ,heBues9 0emand 0raft9 Pay <rder9 >ravelers ,heBues9 etc. from all ;ranches of different 4anks 1ithin city through its carriers and send them to the ;ranches on 1hich these are dra1n for clearing. ("'> prepares a sheet for each ;ranch and send it to each ;ranch as 1ell as to !tate 4ank of Pakistan 1here accounts of 4anks are settled.

*ypes o# +!earing In ard +!earing

Fhen cheBues of other 4anks are deposited in our ;ank9 after clearing these cheBues through ("'> ;y the other 4anks on 1hich these are dra1n. Accounts of the customers are credited.

-ut ard +!earing

Fhen cheBues of our ;ank are deposited in other 4anks and these cheBues are sent to us for verification9 1e de;it the of our client after verification their account

4emittance
#emittance department transfer the funds from one ;ank to another ;ank and one place to another place. "n this department collection takes place. M45 makes payment of only open cheBues at the counter and prohi;its the payment of crossed cheBues. M45 transfer money from one place to another place ;y 1ay of payment order9 demand draft9 in1ard collection9 out1ard collection. &*

&ccount -pening Department

&ccount -pening ,rocedure
" 1orked in Accounts <pening 0epartment form &)th May9 $%&& to $nd 8une9 $%&&.

&ccount -pening 6orm

>his department relates to open ne1 accounts ,ustomers approach to 4ank and an Account <pening is given to him for completing and signing the same. After completed account opening form in all respect and checked ;y the ;ank officer and properly signed ;y the customer 1hich is also verified ;y the <peration Manager. !pecimen !ignature ,ard are got signed form the customer and after verifying the information 1ritten their in9 ,ustomers are given account num;er and all these informations are saved in the system.

+omp!etion o# the 6orm

After completed account opening form in all respect and checked ;y the ;ank officer and properly signed ;y the customer 1hich is also verified ;y the <peration Manager

Specimen Signature +ard =SS+>

!pecimen !ignature ,ard are got signed form the customer and after verifying the information 1ritten their in9 ,ustomers are given account num;er and all these informations are saved in the system.

Signature Di##erence 6orm

>he signature of the client is taken on a signature difference form if his signature differs from the ,(",.

+omputeri/ed +hec$ing
After filling in the form9 the officer connected via internet to the (A0#A 1e;site checks the record of his customer/s social life. "f the record of the person is ok9 then the officer of the ;ank authenticates the record under his signature and stamp and send it to the 4ranch Manager

&ccount 9umber
After completion of all formalities9 final approval for opening of account is taken form the 4ranch Manager and an account num;er is allotted to the customer and all the informations are recorded in the computer. Account num;er is 1ritten on the cheBue $%

;ook reBuisition. After completion of all procedures9 the ;ank prepare a letter and send it to the client at his postal address to pay gratitude to the customer.

+heEue Boo$ Issuance

,heBue 4ook reBuisition for first cheBue ;ook is send to -ead <ffice9 Carachi for issuance the same. >he cheBue consists of $5 leaves and no charges are deducted from the account the account of client. >here after ;ank sends a recommendation for $59 5% and &%% leaves 1ith different prices and charges are deducted from the account of clients.

,rocedure #or +!osing o# an account

Fhen ever a customer 1ants to close the account9 he fills up an account closing form and signs their in9 account ;alance should ;e 3ero9 approval is taken from the 4ranch Manager specimen card is taken ;ack and is attached 1ith the form and account is closed.

0oc$er -perations
5ocker facility is also availa;le at all the ;ranches of M45 for keeping the valua;les their in and this facility is only for account holders. As for as privacy is concerned9 lockers are located in a specially designed area protected 1ith strong room doors and grills under the control of t1o officers9 operated ;y use of Master Cey and ,ustomers Cey supplied to the customer at the time of locker is rented out. 5ockers are three types+ !mall9 Medium and 5arge lockers. !ecurity fee of locker is #s. .%%% 1hich is refunda;le and charges for !mall #s. &%%%9 for Medium #s. &5%% and for 5arge #s. $%%% per annum. A separate application form is complete and signed ;y the customer along 1ith !! ,ard and a copy of ,"(, 1ith t1o photographs. After completing all the formalities a locker is allocated to the applicant and Cey is given to him 1ith locker identification card.

,rocedure o# issuance o# Ban$ Statement

'or issuance of ;ank statement a reBuisition slip is taken from the customer duly signed and the period form 1hich the customer 1ants to take the statement. After verification of signature 4ank !tatement is issue to the customer and #s. 55 are deducted from account of customer

,rocedure o# Stop ,ayment

'or stopping the payment9 1e take sign of the customer on stop payment form 1here in account num;er 1ith date and amount of cheBue is 1ritten. ,ustomers also mention the

$&

reason of stop payment then 1e mark that cheBue as stop payment. ,harges of stop payment are #s. $5%. (o1 the ;ank 1ill not make payments of these cheBues.

,rocedure #or &*.D,I9 Issuance

Mee3an 4ank limited provides the A>M facility to its ,ustomers and they can 1ithdra1 their amount at any time through A>M. 'or issuance of A>M9 customer has to sign an A>M form and 4ank office make an entry in the system and 1ith in &5 days ;ank receives A>M card from -ead <ffice 1hich is given to the customer. 'or issuance of P"( and activation of A>M customer has to call the help line (&&&7..&7 ..&). After verification of customer9 a P"( num;er is issue to him and his card is activated.

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4atio &na!ysis:
#atio analysis is helpful to the management of the organi3ation as 1ell as for the investors and creditors. "nvestor keeps an eye on the company/s financial statement and make decisions 1hether to invest funds in that company or not. !imilarly a creditor also analysis the financial statements and makes decisions 1hether to grant loan or not. 6inancia! statements #or the !ast three years #rom 2008 to 2010 are gi"en be!o :

.ee/an ban$ 0imited ,ro#it and 0oss &ccount &s on 31st December 2008 4s% =000> Profit E return on financings9 investments and )9A%.9$&. placement #eturn on deposit and other dues e=pensed ..%AA9.?? 9et spread earned 3<714<879 Provision against non7performing financing (net) ?$A9?.) Provision for diminution in value of investment and $AA9AA? impairment Provision against off ;alance sheet o;ligations 7 Provision against amount due from financial 7 institutions 4ad de;ts 1ritten off directly 7 @&@9.$% 9et spread a#ter pro"isions -*H(4 I9+-.( 'ee9 commission and ;rokerage income 0ividend income "ncome from dealing in foreign currencies ,apital gain E (loss) on sale of investment M net Unreali3ed loss on held for trading investment "mpairment on reclassification of securities from held for trading to availa;le for sale securities <ther income *ota! other income -*H(4 (F,(9S(S Administrative e=penses $9)$)9)%) 2<997<339 ?.&9@$5 $?.95A5 .%?9)*$ ?@9%%& ($.9%&?) (.)$9@5&) ))9)@% 707<908 3<703<457

2009 4s% =000> &%9&%$9%)% ?9*)*9*&) 3<132<144 &9?.%95.) AA9)?% 7 &$9)$5 7 &95.&9A%& 3<500<343 5$*9$)% &A*9*@. @5$9*%? @)9&)% 7 7 ?*95%@ 1<397<804 3<198<147

2010 4s% =000> &$9$*%95?* )9)%)9?@? 3<584<073 &9..%9%5@ ?)9A)$ .@9)A$ A&9A@5 7 &9?*)9?@) 4<187<399 )&59@5$ .$&9A*A &9.A&9%?? *@9&55 7 7 5*9&A& 2<473<030 5<552<529

.95.%9&)&

?9?)%9A%? $.

<ther provision E 1rite offs E (reversals) <ther charges *ota! other e)penses =traordinary E Unusual "tems ,4-6I* B(6-4( *&F&*I-9 >a=ation 7 current 7 Prior years 7 0eferred ,4-6I* &6*(4 *&F&*I-9 Un7appropriated profit ;rought for1ard ,ro#it be#ore appropriations

A)9$). $A@ 2<713<135 992<311 7 992<311 .&?9@*% 7 5)9..? .@&9&$? 521<187 &9$&*9$$A 1<840<413

(@.9?A?) &9@?@ 3<438<424 1<739<723 7 1<739<723 &9??%9.@? 7 (@$)9%%$) @&?9.@$ 1<023<331

&A..%) 5)955* 4<333<559 2<125<950 7 2<125<950 &9%$59&.5 (..$9A%A) ($&?9*55) ?@@9.@$ 1<549<388 7 7

.ee/an Ban$ 0imited Ba!ance Sheet &s on 31st December 2008 4s%=000>

2009 4s%=000> A9.A@9?.$ 59$)%9?)@ .?9?A)9A@5 $.9$*%9.%* ?&9@%*9)5) $9?&)9.@5 $%?9&@$ A9?&.9A&% 124<159<095

2010 4s%=000> &$9@A%9A%) *9*.*9))% &%95&&9A55 5?9*))9*%@ 5?9&*59&). .9%))9&%% .?$9&@5 A9*?*9@5* 134<732<423

&ssets:
,ash and ;alances 1ith treasury ;anks 4alances 1ith other ;anks 0ue from financial institutions "nvestments 'inancings <perating fi=ed assets 0eferred ta= assets <ther assets including inventories *ota! &ssets 0I&BI0I*I(S: 4ills paya;le 0ue to financial institutions 0eposits and other accounts !u;7ordinated loan 5ia;ilities against assets su;Gect to finance leases 0eferred ta= lia;ilities <ther lia;ilities *ota! !iabi!ities 9et &ssets 59@).9@&% &9.??9*@? &A9&%A9%%% &?95$)9)** .*95$A9@.& &9AA%95&5 7 ?9&$.9??& 83<275<070

&9%5@9%&@ ?9%%A9?*) @%9$..9A@5 7 7 ?5.9%.A .95?A9))) 79<301<092 3<974<978

&9$?*9$&% A9?)A9?$5 &%%9...9%5& 7 7 7 ?9*..9*5& 114<984<537 9<184<439

&9@)@9.@% 59A$*9$*) &.&9%@%9.$A 7 7 7 59%%59??% 143<572<434 11<079<991 $?

4epresented By !hare capital #eserves Un7appropriated profit *ota! eEuity !urplusE (0eficit) on revaluation of investment

?9*$59*)& A?59%$$ 5@%9&&? 5<341<097 (.))9&&*) 3<974<978

)9)5%9%?A &9%5%9%*$ &9.*%9.*5 9<090<333 *.9*$? 9<184<439

)9*A$955% &9.A%9%&% $9.@@95). 10<740<123 ..*9A)A 11<079<991

0iEuidity 4atios
5iBuidity ratios means to measure short term solvency of the company. A;ility of the company to payoff its short term de;t. 'ollo1ing ratios are calculated in order to measure the short term solvency of the company ,urrent #atio Acid >est #atio Forking ,apital

+urrent 4atio
+urrent &ssets: ,ash and ;alances 1ith other treasury ;anks N 4alance 1ith other ;anks N due from financial "nstitution N short term investment N short term financing N other assets +urrent 0iabi!ities+ 4ills paya;le N 0ue to financial institution N short term deposit N other lia;ilities +urrent 4atio G +urrent &ssets D +urrent !iabi!ities Hear 2008 Hear 2009 Hear 2010 5$9.)@9@$$ E 5A9&$.9%A@ *.9*@?9&.? E A)9..A95** &&$9&5&9%@* E &%59$@$9@$A G0%90 : 1 G 1%08 :1 G 1%05 : 1

Ior$ing
Hear 2008 +urrent &ssets G 59@).9@&% N &9.??9*@? N &A9&%A9%%% N &95?$9?@. N $&9?**9@.$ N ?9&%A9A.. +urrent &ssets G 32<357<722 $5

+urrent 0iabi!ities O &9%5@9%&@ N ?9%%A9?*) N 5%9*$$955? N $9&.59%$% +urrent 0iabi!ities G 38<123<087 Hear 2009 +urrent &ssets G A9.A@9?.$ N59$)%9?)@ N.?9?A)9A@5 N & $9&*59?@% N $59$%.9%A% N A9?&.9A&% ,urrent Assets O 93<947<134 +urrent 0iabi!ities G &9$?*9$&% N A9?)A9?$5 N @.95?A9%). N .9%@$9*%& +urrent 0iabi!ities G 85<338<399 Hear 2010 +urrent &ssets G &$9@A%9A%) N *9*.*9))% N &%95&&9A55 N .@9A@.9)%% N .$9%*59.** N A9*?*9@5* +urrent &ssets G 112<131<079 +urrent 0iabi!ities G &9@)@9.@% N 59A$*9$*) N *?9@A*9@.* N $9AA)9.$. +urrent 0iabi!ities G 103<272<728

Braphica! 4epresentation:
1.2 1 0.8 0.6 0.4 0.2 0 2008 2009 2010 Current Ratio

Interpretation
As the current ratio in the year $%%A is %.*%9 in the year $%%* is &.%A and in the year $%&% it is &.%) Fhich depicts that there is a slight increase in the year $%%* as compare to year $%%A 1here as there is a negligi;le decrease of %.%$ as compared to year $%%*. ,urrent ratio must ;e $+& in accordance 1ith the prudential regulations of !tate 4ank of Pakistan as 1ell as international accounting standards ;ut in case of Mee3an 4ank current ratio $)

seems to ;e unsatisfactory in all the three years 1hich is not a healthy sign so for as ;ank/s short term solvency to pay its short 0e;ts are concerned

&cid *est 4atio

Cuic$ &ssets G ,urrent Assets M ("nventories N prepayments) +urrent !iabi!ities: 4ills paya;le N 0ue to 'inancial institution N short term 0eposit N other lia;ilities &cid *est 4atio G +urrent &ssets A =in"entories J prepayments> D current !iabi!ities Hear 2008 Hear 2009 Hear 2010 5%9$A*9@%? E 5A9&$.9%A@ *&9%?.9?.? E A)9..A95** &%*9$@.9.&% E &%59$@$9@$A G 0%85 : 1 G 1%03 : 1 G 1%04 : 1

Ior$ing
Hear 2008 Huick Assets O 5$9.)@9@$$ M (&95.59@?? N 5?$9$@?) Cuic$ &ssets G 30<289<704 ,urrent 5ia;ilities O &9%5@9%&@ N ?9%%A9?)* N 5%9*$$955? N $9&.59%$% +urrent 0iabi!ities G 38<123<087 Hear 2009 Cuic$ &ssets G *.9*?@9&.? M ($95$.9*)* N .@*9@.&) Cuic$ &ssets G 91<043<434 +urrent 0iabi!ities G &9$?*9$&% N A9?)A9?$5 N @.95?A9%). N .9%@$9*%& +urrent 0iabi!ities G 85<338<399 Hear 2010 Cuic$ &ssets G &&$9&5&9%@* 7 ($9?)&9%*@ N ?&)9)@$) Cuic$ &ssets G 109<273<310 +urrent 0iabi!ities G &9@)@9.@% N 59A$*9$*) N *?9@A*9@.* N $9AA)9.$. +urrent 0iabi!ities G 103<272<728

Braphica! 4epresentation:

$@

1.2 1 0.8 0.6 0.4 0.2 0 2008 2009 2010 Asset Test Ratio

Interpretation:
>he Huick #atio for the year $%%A is %.A) 1hich is less than %.&? as compare to industry/s ratios ;ut in the year $%%* is &.%5 1hich is slight more than the standard ratio. !imilarly in the year $%&% the Huick ratio &.%? 1hich is also more than the industry/s standard ratio. Huick #atio in the year $%%A is unsatisfactory 1here as in the years $%%* and $%&% Huick #atio is Buite satisfactory.

Ior$ing capita!
+urrent &ssets: ,ash an ;alances 1ith other treasury ;anks N 4alance 1ith other 4anks N 0ue from financial institution N short term investment N !hort term financing N other Assets +urrent 0iabi!ities: 4ills paya;le N 0ue to 'inancial "nstitution N !hort term 0eposit N other lia;ilities Ior$ing +apita! G +urrent &ssets K +urrent 0iabi!ities Hear 2008 Hear 2009 Hear 2010 5$9.)@9@$$ M 5A9&$.9%A@ *.9*?@9&.? 7 A)9..A95** &&$9&5&9%@* M &%59$@$9@$A G A3<733<353 G 7<508<333 G 5<878<331

Ior$ing
Hear 2008 +urrent &ssets G 59@).9@&% N &9.??9*@? N &A9&%A9%%% N &95?$9?@. N $&9?**9@.$ N ?9&%A9A.. +urrent &ssets G 32<357<722 +urrent 0iabi!ities G &9%5@9%&@ N ?9%%A9?*) N 5%9*$$955? N$9&.59%$% +urrent 0iabi!ities G 38<123<087 Hear 2009 $A

+urrent &ssets G A9.A@9?.$ N 59$)%9?)@ N .?9?A)9A@5 N &$9&*59?@% N $59$%.9%A% N A9?&.9A&% +urrent &ssets G 93< 947<134 +urrent 0iabi!ities G &9$?*9$&% N A9?)A9?$5 N@.95?A9%). N .9%@$9*%& +urrent 0iabi!ities G 85<338<399 Hear 2010 +urrent &ssets G &$9@A%9A%) N *9*.*9))%N &%95&&9A55 N .@9A@.9)%% N .$9%*59.** N A9*?*9@5* +urrent &ssets G 112<131<079 +urrent 0iabi!ities G &9@)@9.@% N 59A$*9$*) N *?9@A*9@.* N $9AA)9.$. +urrent 0iabi!ities G 103<272<728

Braphica! 4epresentation:
8,000,000 6,000,000 4,000,000 2,000,000 0 -2,000,000 -4,000,000 -6,000,000 2008 2009 2010 Working Capital

Interpretation:
Forking ,apital in the year $%%A is #s. (59@559.)5) 1hich is negative and is an unhealthy sign on the financial health of the ;ank. Forking capital in the years $%%* and $%&% is #s. @9)%A95.5 and #s. )9A@A9.5& respectively 1hich indicates that in the year $%%* 1orking capital is to reasona;le e=tent ;ecause of increase in current assets ;ut again in the year $%&% 1orking capital has ;een decreased 1hich sho1s that due to paucity of Forking ,apital ,ompany may ;e short of funds to meet out its short term o;ligation.

0e"erage 4atios
Any ratio used to calculate the financial leverage of a company to get an idea of the company/s methods of financing or to measure its a;ility to meet financial o;ligations. 'ollo1ing ratios are calculated in order to measure the long term solvency of the firm+ $*

>ime "nterest arned 0e;t #atio 0e;t E Buity #atio 0e;t to >angi;le (et 1orth #atio >otal ,apitali3ation #atio

*ime Interest (arned

*ime Interest (arned G (arning Be#ore *a) J interest e)penses E interest e)penses

9ote: It is an Is!amic ban$ so this ratio cannot be ca!cu!ated% Debt 4atio

*ota! Debt G 4ills paya;le N 0ue to financial institution N 0eposits and other Accounts N su;7ordinates loan N lia;ilities against assets su;Gect to 'inance leases N deferred ta= lia;ilities N other lia;ilities *ota! &ssets G ,ash and ;alances 1ith treasury ;anks N ;alances 1ith other ;anks N due from financial institutions N investments N financings N operating fi=ed assets N other assets Debt 4atioG = *ota! Debt E *ota! &ssets > Hear 2008 Hear 2009 Hear 2010 (@*9.%&9%*$ E A59$@)9%@%) (&&?9*A?9).@ E &$?9&)*9%*)) (&?.9)@$9?.? E &5?9@5$9?$5) G 0%9299 *imes O 0%9250 *imes G 0%9284 *imes

Ior$ing
Hear 2008 *ota! Debt G &9%5@9%&@ N ?9%%A9?)* N @%9$..9A@5 N % N % N ?5.9%.A N.95?A9))) *ota! Debt G79<301<092 *ota! &ssets G 59@).9@&% N &9.??9*@? N &A9&%A9%%% N&?95$)9)** N .*95$A9@.& N &9AA%95&5 N?9&$.9??& *ota! &ssets G 83<275<070 Hear 2009 *ota! Debt G &9$?*9$&% NA9?)A9?$5 N&%%9...9%5& N % N % N % N ?9*..9*5& *ota! Debt G 114<984<537 .%

*ota! &ssets G A9.A@9?.$ N 59$)%9?)@ N .?9?A)9A@5 N $.9$*%9.%* N ?&9@%*9)5) N $9?&)9.@5 N $%?9&@$ N A9?&.9A&% *ota! &ssets G 124<159<095 Hear 2010 *ota! Debt G &9@)@9.@% N 59A$*9$*) N &.&9%@%9.$A N % N % N % N 59%%59??% *ota! Debt G 143<572<434 *ota! &ssets G &$9@A%9A%) N *9*.*9))% N &%95&&9A55 N 5?9*))9*%@ N 5?9&*59&). N .9%))9&%% N .?$9&@5 N A9*?*9@5* *ota! &ssets G 134<732<423

Braphica! 4epresentation:
0.9 0.929 0.928 0.927 0.926 0.925 0.924 2008 2009 2010 !e"t Ratio

Interpretation:
4ank/s 0e;t ratio in the years $%%A9 $%%* and $%&% is %.*$**9 %.*$)% and %.*$A?. 0e;t #atio indicates that ;ank/s 0e;t is on higher side in all the three years as compare to its assets 1hich indicates that the ;ank is highly levered and its fi=ed financial cost is much higher 1hich may decrease the operating profit of the company 1ith the result of decrease in earning per share.

Debt D eEuity 4atio

Debt to (Euity 4atio G *ota! Debt E *ota! (Euity Hear 2008 Hear 2009 Hear 2010 @*9.%&9%*$ E )9.?&9%*@ &&?9*A?9).@ E *9%*%95.5 &?.9)@$9?.? E &%9@?%9&$. G 0%123 *imes O 0%1253 *imes *ota! (Euity G !hare ,apital N #eserves N Un7appropriated Profit

Ior$ing
.&

Hear 2008 *ota! Debt G &9%5@9%&@ N ?9%%A9?*) N @%9$..9A@5 N % N % N ?5.9%.A N .95?A9))) *ota! Debt G 79<301<092 *ota! (Euity G ?9*$59*)& N A?59%$$ N 5@%9&&? *ota! (Euity G 5<341<097 Hear 2009 *ota! Debt G &9$?*9$&% N A9?)A9?$5 N &%%9...9%5& N % N % N % N ?9*..9*5& *ota! Debt G 114<984<537 *ota! (Euity G )9)5%9%?A N &9%5%9%*$ N &9.*%9.*5 *ota! (Euity G 9<090<333 Hear 2010 *ota! Debt G &9@)@9.@% N 59A$*9$*) N &.&9%@%9.$A N % N % J % N 59%%59??% *ota! Debt G 143<572<434 *ota! (Euity G )9*A$955% N &9.A%9%&% N $9.@@95). *ota! (Euity G 10<740<123

Braphica! 4epresentation:
0.1 4 0.1 2 0.1 0.128 0.126 0.124 0.122 0.12 2008 2009 2010 !e"t to #$uit% Ratio

Interpretation:
According to prudential regulation of !tate 4ank of Pakistan 0e;t ratio must ;e @%+.% ;ut here in the case of Mee3an 4ank 5imited in all the three years de;t ratio is %.&$59 %.&$)5 and %.&..@ respectively 1hich indicates that 0e;t portion in the total financing is much lo1er ;ut Buity portion is to a reasona;le e=tent in the total financing 1hich sho1s that ;ank has ;een financed 1ith greater portion of eBuity instead of de;t.

.$

Debt to *angib!e 9et Iorth

Debt to *angib!e 9et Iorth G *ota! Debt E *angib!e 9et Iorth Hear 2008 Hear 2009 Hear 2010 @*9.%&9%*$ E 59AA%9%*? &&?9*A?9).@ E *9%A*9$?$ &?.9)@$9?.? E &%9*@59A5A G 0%1348 *imes G 0%1253 *imes G 0%1309 *imes *angib!e 9et Iorth G *ota! &ssets K *ota! 0iabi!ities K Intangib!e &ssets

Ior$ing
Hear 2008 *angib!e 9et Iorth G A59$@)9%@% M @*9.%&9%*$ M *?9AA? *angib!e 9et Iorth G 3<880<094 Hear 2009 *angib!e 9et Iorth G &$?9&)*9%*) M &&?9*A?9).@ M *59$&@ *angib!e 9et Iorth G 9<089<242 Hear 2010 *angib!e 9et Iorth G &5?9@5$9?$5 7 &?.9)@$9?.? M &%?9&.. *angib!e 9et Iorth G 10<973<838

Braphica! 4epresentation:
0.1 6 0.1 4 0.1 2 0.1 0.128 0.126 0.124 0.122 2008 2009 2010 !e"t to tangi"le &et 'ort(

Interpretation:
"n all the three years 0e;t as compare to total tangi;le assets is %.&.?A9 %.&$)5 and %.&.%* respectively 1hich indicates that 0e;t portion in the total tangi;le assets is not on higher side 1hich sho1s a healthy sign on the financial position of the ;ank and ;ank 1ill ;e a going concern for indefinite period. ..

*ota! capita!i/ation 4atio

*ota! +apita!i/ation 4atioG 0ong *erm Debt E 0ong *erm Debt JShareho!derLs (Euity Hear 2008 Hear 2009 Hear 2010 $&9&@A9%%5 E($&9&@A9%%5 N $A9)?)9%.A E ($A9)?)9%.A N .A9.**9@%) E (.A9.**9@%) N )9.?&9%*@) *9%*%95.5) &%9@?%9&$.) G 0%7593 *imes O 0%7391 *imes G 0%7814 *imes 0ong *erm Debt G 0eposit and other account N !u;7 ordinates loans N 5ia;ilities against assets su;Gect to finance lease N 0eferred ta= lia;ilities N other lia;ilities Shareho!derLs (Euity O !hare ,apital N #eserves N Un7appropriated profit

Ior$ing
Hear 2008 0ong *erm Debt G 21<178<003 Shareho!derLs (Euity G ?9*$59*)& N A?59%$$ N 5@%9&&? O 5<341<097 Hear 2009 0ong *erm Debt G 28<545<038 Shareho!derLs (Euity O )9)5%9%?A N &9%5%9%*$ N &9.*%9.*5 G 9<090<333 Hear 2010 0ong *erm Debt O 38<399<705 Shareho!derLs (Euity G )9*A$955% N&9.A%9%&% N $9.@@95). G 10<740<123

Braphica! 4epresentation:
0.785 0.78 0.775 0.77 0.765 0.76 0.755 0.75 0.745 2008 2009 2010 Total Capitali)ation Ratio

.?

Interpretation:
5ong term de;t of the company is in all the three years %.@)*59 %.@5*& and %.@A&? respectively of >otal ,apitali3ation i.e. (0e;t N eBuity) 1hich depicts that the ;ank/s long term solvency to pay out its long term de;ts is not too much sta;le ;ecause of high degree of de;t in the total capital employed.

,ro#itabi!ity 4atios
Profita;ility ratios measure the earning a;ility of the firm. 'ollo1ing ratios are calculated+ (et Profit Margin #eturn on Assets 0upont #eturn on Assets <perating "ncome Margin #eturn on operating Assets #eturn on >otal Buity 6ross Profit Margin

9et ,ro#it .argin

9et ,ro#it .argin G 9et ,ro#it D *ota! 4e"enue M100 Hear 2008 Hear 2009 Hear 2010 )$&9&A@ E )9A%.9$&. P &%% &9%$59.5& E &%9&%$9%)% P &%% &9)?*95AA E &$9$*%95?* P &%% G 9%13 ; O 10%14 ; O 13%42 ; 9et ,ro#it G pro#it a#ter ta)ation *ota! 4e"enue G ,ro#itDreturn earned on #inancings< in"estments and p!acements

Ior$ing
Hear 2008 9et ,ro#it G )$&9&A@ *ota! 4e"enue O )9A%.9$&. Hear 2009 9et ,ro#it G &9%$59.5& *ota! 4e"enue G &%9&%$9%)% Hear 2010 9et ,ro#it G &9)?*95AA *ota! 4e"enue G &$9$*%95?* .5

Braphica! 4epresentation:
14.00* 12.00* 10.00* 8.00* 6.00* 4.00* 2.00* 0.00* 2008 2009 2010 &et +ro,it -argin

Interpretation:
(et Profit margin in the Kear $%%A9$%%* and $%&% is *.&.Q9 &%.&?Q and &..?$Q respectively 1hich sho1s an increasing trend as for as inde= analysis is concerned. (et Profit Margin is to a reasona;le e=tent i.e. return on sales after payment of ta=.

4eturn on &ssets
4eturn on &ssets G(arning Be#ore *a)=(B*> D *ota! &ssets M 100 Hear 2008 Hear 2009 Hear 2010 **$9.&& E A59$@)9%@% P &%% &9@.*9@$. E &$?9&)*9%*) P &%% $9&$)9*)% E &5?9@5$9?$5 P &%% G 1%15; G 1%40; G 1%37;

Ior$ing
Hear 2008 ,ro#it be#ore ta) G **$9.&& *ota! &ssets G A59$@)9%@% Hear 2009 ,ro#it be#ore *a) O &9@.*9@$. *ota! &ssets G &$?9&)*9%*) Hear 2010 ,ro#it be#ore ta) G $9&$)9*)% *ota! &ssets G &5?9@5$9?$5

Braphica! 4epresentation:
.)

1.40* 1.20* 1.00* 0.80* 0.60* 0.40* 0.20* 0.00* 2008 2009 2010 Return on Assets

Interpretation:
As for as #eturn on total Assets is concerned9 in the year $%%A it is &.&)Q9 in the year $%%* is &.?%Q and in the year $%&% is &..@Q 1hich depicts that return on total assets is much lesser as compare to ;anking industry/s standard. Although it has an increasing trend in the year $%%* and $%&% ;ut as for as international accounting standards are concerned9 return on total assets is not 1orth 1hile 1hich sho1s that assets of the ;ank are not ;eing utili3ed properly.

Du ,ont 4eturn on &ssets

DuA,ont 4-&G =9et Income E *ota! 4e"enue> ) =*ota! 4e"enue E *ota! &ssets > Hear 2008 Hear 2009 Hear 2010 ()$&9&A@ E )9A%.9$&.) = (&9%$59.5& E &%9&%$9%)%) = (&9)?*95AA E &$9$*%95?*) = ()9A%.9$&. E A59$@)9%@%) (&%9&%$9%)% E &$?9&)*9%*)) (&$9$*%95?* E &5?9@5$9?$5) G 0%7275; G 0%8244; G 1%05;

Ior$ing
Hear 2008 O ()$&9&A@ E )9A%.9$&.) = ()9A%.9$&. E A59$@)9%@%) O (%.%*&.) = (%.%@*@) G 0%7275; Hear 2009 O (&9%$59.5& E &%9&%$9%)%) = (&%9&%$9%)% E &$?9&)*9%*)) O (%.&%&?) = (%.%A&.) G 0%8244; Hear 2010 O (&9)?*95AA E &$9$*%95?*) = (&$9$*%95?* E &5?9@5$9?$5) .@

O (%.&.?$) = (%.%@*?) G1%05;

Braphica! 4epresentation:
1.20* 1.00* 0.80* 0.60* 0.40* 0.20* 0.00* 2008 2009 2010 !u+ont Return on Assets

Interpretation:
As for as #eturn on total Assets is concerned9 in the year $%%A it is %.@$@)9 in the year $%%* is %.A$?. and in the year $%&% is &.%) 1hich depicts that return on total assets is much lesser as compare to ;anking industry/s standard. Although it has an increasing trend in the year $%%* and $%&% it is pertinent to mention here that assets of the ;ank are not used properly.

-perating Income .argin

-perating Income .argin G (arning Be#ore interest and ta) =(BI*>=(B*> D *ota! 4e"enue Hear 2008 Hear 2009 Hear 2010 **$9.&& E )9A%.9$&. &9@.*9@$. E &%9&%$9%)% $9&$)9*)% E &$9$*%95?* G 14%38; O 17%22; O 17%30;

9ote: Is!amic ban$ing is 4ibaA6ree so I use (B* #or operating income margin Ior$ing
Hear 2008 (B* G (arning Be#ore ta) G **$9.&& *ota! 4e"enue G )9A%.9$&. Hear 2009 (B* G (arning be#ore ta) G &9@.*9@$. *ota! 4e"enue G &%9&%$9%)% .A

Hear 2010 (B* G (arning be#ore ta) G $9&$)9*)% *ota! 4e"enue G &$9$*%95?*

Braphica! 4epresentation:
17.50* 17.00* 16.50* 16.00* 15.50* 15.00* 14.50* 14.00* 1 .50* 1 .00*

.perating /n0o1e -argin

2008

2009

2010

Interpretation:
<perating income means income from operation i.e. earning ;efore >a= ( 4>). "ncome from operation in the year $%%A is &?.5AQ9 in the year $%%* is &@.$$Q and in the year $%&% is &@..%Q 1hich is to a reasona;le e=tent in all the three years.

4eturn on -perating &ssets

4eturn on -perating &ssets G (arning be#ore interest and ta) =(BI*> =(B*> D -perating &ssets Hear 2008 Hear 2009 Hear 2010 **$9..& E ))9)$59*.% &9@.*9@$. E *$9$)%9A%5 $9&$)9*)% E *%9?*.95A? G1%49; G1%88; G2%33;

9ote: .ee/an Ban$ is 4iba 6ree so I use (arning be#ore *a)

-perating &ssets G cash and ;alances 1ith treasury ;anks N 4alance 1ith other ;anks N due from financial institutions N financing N operating fi=ed assets

Ior$ing
Hear 2008 (B* G (arning be#ore ta) G **$9.&& -perating &ssets G 59@).9@&% N &9.??9*@? N &A9&%A9%%% N .*95$A9@.& N &9AA%95&5 -peration &ssets G 55<523<930 Hear 2009 .*

(B* G (arning be#ore ta) G &9@.*9@$. -perating &ssets G A9.A@9?.$ N 59$)%9?)@ N .?9?A)9A@5 N ?&9@%*9)5) N $9?&)9.@5 -perating &ssets G 92<250<803 Hear 2010 (B*G (arning be#ore ta) G $9&$)9*)% -perating &ssets G &$9@A%9A%) N *9*.*9))% N &%95&&9A55 N 5?9&*59&). N .9%))9&%% -perating &ssets G 90<493<384

Braphica! 4epresentation:
2.50* 2.00* 1.50* 1.00* 0.50* 0.00* 2008 2009 2010 Return on .perating Assets

Interpretation:
#eturn on operating assets in the years $%%A9 $%%* and $%&% is &.?*Q9 &.AAQ9 and $..5Q respectively. As for as inde= analysis is concerned9 return on operating assets has ;een an increasing trend from $%%A to $%&% ;ut it is much ;elo1 the standard of ;anking industry.

4eturn on *ota! (Euity

4eturn on tota! (Euity G =9et Income D *ota! (Euity >M100 Hear 2008 Hear 2009 Hear 2010 ()$&9&A@ E )9.?&9%*@)P&%% (&9%$59.5& E *9%*%95.5)P&%% (&9)?*95AA E &%9@?%9&$.)P&%% G 9%79; G 11%27; G 13%33; *ota! (Euity G !hare ,apital N #eserves N un7appropriated profit

Ior$ing
Hear 2008 9et income G Profit after >a= O )$&9&A@

?%

*ota! (Euity O ?9*$59*)& N A?59%$$ N 5@%9&?? *ota! (EuityG )9.?&9%*@ Hear 2009 9et income G Profit after ta= O &9%$59.5& *ota! (Euity G )9)5%9%?A N&9%5%9%*$ N &9.*%9.*5 *ota! (Euity G 9<090<333 Hear 2010 9et income G arning after ta= O &9)?*95AA *ota! (Euity G )9*A$955% N &9.A%9%&% N $9.@@95). *ota! (Euity G 10<740<123

Braphica! 4epresentation:
16.00* 14.00* 12.00* 10.00* 8.00* 6.00* 4.00* 2.00* 0.00* 2008 2009 2010 Return in Total #$uit%

Interpretation:
#eturn on <1ner/s Buity in the year $%%A is *.@*Q9 in the year $%%* is &&.$@Q and in the year $%&% is &5..5Q 1hich sho1s an increasing trend to a greater e=tent from year on year ;asis as 1ell as it is also meeting the standard of ;anking industry.

Bross ,ro#it .argin

Bross ,ro#it .argin G =Bross pro#it D *ota! 4e"enue >M100 Hear 2008 Hear 2009 Hear 2010 (.9@&?9A@* E )9A%.9$&.)P&%% (59&.$9&?? E &%9&%$9%)%)P&%% (59)A?9%@5 E &$9$*%95?*)P &%% G 34%50; G 30%80; G 45%24;

Ior$ing
Hear 2008 Bross pro#it G (et spread earned O .9@&?9A@* *ota! re"enue G #eturn earned on financings9 investments9 placements O )9A%.9$&. ?&

Hear 2009 Bross pro#it G (et spread earned O 59&.$9&?? *ota! 4e"enue G #eturn earned financings9 investments and placements O&%9&%$9%)% Hear 2010 Bross pro#it G (et !pread earned O 59)A?9%@5 *ota! 4e"enue G #eturn on financings9 investments and placements O &$9$*%95?*

Beographica! presentation
56.00* 54.00* 52.00* 50.00* 48.00* 46.00* 44.00* 42.00* 2008 2009 2010 2ross +ro,it -argin

Interpretation
6ross profit margin on year to year ;asis is 5?.)%Q9 5%.A%Q and ?).$?Q 1hich is sho1ing a much healthy sign ;ecause of high gross profit margin on sales. "t is much a;ove the industry yard stick.

&cti"ity 4atios
Activity ratios measure a firm/s a;ility to convert different accounts 1ithin their ;alance sheets into cash or sales. >otal Assets >urnover 'i=ed Assets >urnover

*ota! &ssets *urno"er

*ota! &ssets *urno"er G *ota! 4e"enue D *ota! &ssets Hear 2008 Hear 2009 Hear 2010 )9A%.9$&. E A59$@)9%@% &%9&%$9%)% E &$?9&)*9%*) &$9$*%95?* E &5?9@5$9?$5 G 0%079 *imes G 0%081 *imes G 0%079 *imes ?$

Ior$ing
Hear 2008 *ota! 4e"enue G profit E return earned on financings9 investments and placements O )9A%.9$&. *ota! &ssets G 83<275<070 Hear 2009 *ota! 4e"enue G profitEreturn earned on financings9 investments and placements O &%9&%$9%)% *ota! &ssets G 124<159<095 Hear 2010 *ota! 4e"enue G profitEreturn on financings9 investments and placements O &$9$*%95?* *ota! &ssets G 134<732<423

Braphica! 4epresentation:
0.081 0.0805 0.08 0.0795 0.079 0.0785 0.078 2008 2009 2010 Total Asset Turno3er Ratio

Interpretation:
>urnover means ho1 many times 1e make the sales during the year as compare to our total assets. "t is in the year $%%A is %.%@*9 in $%%* is %.%A& and in $%&% is %.%@*. !ale turnover is much lo1er keeping in vie1 the standard of ;anking industry.

6i)ed &ssets *urno"er

6i)ed &ssets *urno"er G *ota! 4e"enue D 6i)ed &ssets Hear 2008 Hear 2009 Hear 2010 )9A%.9$&. E &9AA%95&5 &%9&%$9%)% E $9?&)9.@5 &$9$*%95?* E .9%))9&%% O 3%51 *imes O 4%18 *imes O 4%00 *imes

Ior$ing
?.

Hear 2008 *ota! 4e"enue G return on financings9 investments and placements O )9A%.9$&. -perating 6i)ed &ssets G &9AA%95&5 Hear 2009 *ota! 4e"enue G return on financings9 investments and placements O &%9&%$9%)% 6i)ed &ssets G $9?&)9.@5 Hear 2010 *ota! 4e"enue G return on financings investments and placements O &$9$*%95?* 6i)ed &ssets G .9%))9&%%

Braphica! 4epresentation:
4.2 4.1 4 .9 .8 .7 .6 .5 .4 .

4i5e6 Assets Turno3er

2008

2009

2010

Interpretation:
'rom year on year ;asis fi=ed assets turnover has ;een an increasing trend in the year $%%* ;ut in the year $%&% it has again ;een decreased 1hich has not a uniform trend. Ceeping in vie1 the standard of the ;anking industry9 it is much ;elo1 the standard 1hich dose not sho1s a healthy sign.

.ar$et 4atios
Market ratios are commonly used ;y the investors to access the performance of a ;usiness as an investment and also the cost of issuing stock. 0ividend per share arning per !hare Price E arning #atio ??

Di"idend per share

Di"idend per share G Di"idend paid D number o# shares Hear 2008 Hear 2009 Hear 2010

9ote: .ee/an ban$ has not paid di"idend so this ratio is not ca!cu!ated (arning ,er Share
(arning ,er Share G 9et income a#ter ta) D 9o% o# Shares -utstanding Hear 2008 4s%=000> Hear 2009 4s%=000> Hear 2010 4s% =000> )$&9&A@ E ?9*$59*).& &9%$59.5& E )9)5%9%?.A &9)?*95AA E )*A9$55 G 1%25 O 1%34 G 2%35

Ior$ing
Hear 2008 9et Income G pro#it a#ter ta) O )$&9&A@ 9o% o# share outstanding G Share capita! D par "a!ue O ?9*$59*)& E &% 9o% o# share outstanding G4< 923< 95%1 Hear 2009 9et Income G pro#it a#ter ta) G &9%$59.5& 9o% o# share outstanding G Share +apita! D ,ar 2a!ue O )9)5%9%?A E &% 9o% o# share outstanding G 5< 530< 04%8 Hear 2010 9et income G pro#it a#ter ta) G &9)?*95AA 9o% o# share outstanding G Share +apita! D ,ar 2a!ue O )9*A$955% E &% 9o% o# share outstanding G 598<233

Braphica! 4epresentation:

?5

2.5 2 1.5 1 0.5 0 2008 2009 2010 #arning per 7(are

Interpretation:
arning per !hare in the year $%%A is &.$)9 in the year $%%* is &.5? and in the year $%&% is $..). <n year to year ;asis earning per share is increasing ;ut it is not up to the mark as for as industry standard is concerned.

,rice D (arning 4atio

,rice (arning 4atio G .ar$et price per share E (arning per share Hear 2008 Hear 2009 Hear 2010 $&.?A E &.$) &5.@? E &.5? &).*% E $..) G 17%04 G 10%22 G 7%15

9ote : boo$ "a!ue per share is gi"en in annua! report 2010% Ior$ing
Hear 2008 .ar$et price per share G $&.?A (arning per share G &.$) Hear 2009 .ar$et price per share G &5.@? (arning ,er share G &.5? Hear 2010 .ar$et price per share G &).*% (arning per share G $..) ?)

Braphica! 4epresentation:
18 16 14 12 10 8 6 4 2 0 2008 2009 2010

+ri0e to #arning Ratio

Interpretation:
Price arning ratios means ho1 much the price of the share in the market as compare to earning per share. PE ratio in the year $%%A is &@.%?9 in $%%* is &%.$$ and in $%&% is @.&) 1hich is decreasing on year to year ;asis. Although PE ratio is meeting the criterion of industry standard ;ut has a decreasing trend on year to year ;asis.

?@

6uture prospects
>he future of the 4ank is too much secure and 1ill ;e on safer side ;ecause maGor share holders of the ;ank are international companies 1hich can provide financial support to the ;ank in the time of crisis. 4ank is doing "slamic ;anking 1hich is shariah complaint and is risk free. Although its margins are to a reasona;le e=tent ;ut are of permanent and constant nature. ,ustomers default ratio is very much lo1 as 1ell as its non performing loans are also much lo1 1hich is living a healthy sign on the ;anks financial strength. As for as ratio analysis is concerned ;ank seems to ;e a going concern. 4ank has too much 1orking capitalL fi=ed assets are much more than the standard of industry. Fhich is a sign of security and safety for the ;ank. Although ;ank is gro1ing ;ut it 1ill also gro1 in future to a larger e=tent as is indicated in its income statement and ;alance sheet on year to year ;asis.

?A

+onc!usion
As for as ;usiness of the ;ank is concerned it is Buite up to the mark keeping in vie1 the standard of ;anking industry. 4ank is located in 6ulshan7e7 #avi 1here 4ank Al -a;i;9 -a;i; hank limited 9 -a;i; metropolitan ;ank limited as 1ell as Allied ;ank and M,4 are also doing ;usiness in the same area ;ut Mee3an 4ank limited is competing 1ith all these ;anks and increasing its clientele. 4ank is giving ;etter services to its customers as 1ell as ;etter farcicalities to its employees9 its employees are making an untiring effort to increase the profit of the company on year to year ;asis as 1ell as time their ;est to increase the 1ealth of the shareholders. 4ank is offering many products to its customers 1hich are increasing the margin of the ;ank. As for as Profit Margin9 6ross Profit Margin9 <perating Profit Margin and #eturn on Buity is concerned9 it is much satisfactory keeping in vie1 the standard of industry. 'i=ed Assets >urnover9 >otal Assets >urnover9 #etune on >otal Assets9 arning Per !hare and Price arning #atio are as too much satisfactory and Buite up to the mark of industry 1hich sho1s that financial health of the ;ank is very much sound and it 1ill ;e a going concern for and indefinite period. "ts profit from operation is seems to ;e reasona;le and sho1ing an increasing trend on year to years ;asis. 'urther more 6ross Profit Margin is also reasona;leL Profit Margin is also sho1ing a healthy sign. 4ank/s future is future to much secure and it 1ill flourish and gro1 in the days to come.

?*

4ecommendations:
As for as " have o;served during my training9 the ;ank should improve the services given to the customers so that they may feel satisfied. 4ank should increase its products in order to enhance its margin so that it may compete in the market. 'urther more employees are the assets of the ;ank 1hich must ;e motivated ;y the management of the ;ank. mployees should ;e given incentive in the shape of cash a1ard9 increase in pay9 promotion etc. if the customers of the ;ank are satisfied and employees of the ;ank are hard1orking as 1ell as loyal9 the ;ank 1ill make progress ;y leaps and ;ounds. Management of the ;ank must try its ;est in order to satisfy the customers as 1ell as motivate the employees. As for as ratio are concerned9 its current ratio is much ;elo1 the standard 1hich needs to ;e increased in order to gro1 in the market. Forking capital is the life of every organi3ation9 in $%%A 1orking capital is in negative ;ut in $%%* and $%&% 1orking capital is positive ;ut ;elo1 the standard. Forking capital must ;e increased ;y the ;ank so that the ;ank may sho1 its short term solvency to meet out its short term de;t. 0e;t of the company is %.*$** in $%%A9 in $%%* is %.**)% and in $%&% is %.*$A? 1hich sho1s that the 4ank is highly levered. 0e;t of the company is on higher side 1hich must ;e decreased to sho1 it long term solvency. (et profit Margin on sale although increasing on year to year ;asis ;ut is much ;elo1 than the standard of industry 1hich also need to ;e increased in order to gro1 in the markets

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Bib!iography:
-istory of Mee3an 4ank. #etrieved .rd 8une9 $%&& from Mee3an 4ank 1e; site http+EE111.mee3an;ank.comEhistory.asp= Product 0etail. #etrieved &$th 8une9 $%&& from Mee3an 4ank 1e; site

http+EE111.mee3an;ank.comE-ome.asp= Annual #eports #etrieved $% 8une9 $%&&9 from Mee3an 4ank 1e; site

http+EE111.mee3an;ank.comE'-R'inancial#eports.asp= 4anking #atios <;tained from the site+ http+EE111.investopedia.comEfeaturesEindustryhand;ookE;anking.asp

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