Internship Report of

Meezan Bank Limited 2019

Submitted To: IBA University

of Sindh Jamshoro

Submitted By: Imran khan S/o

Naeem khan

Roll No: 53/MBA/2k17

I n s t it ut e of
B u s in e s s A d m i n i s t r a t i on
University of S i n d h J a m s h o r o
 Context

Preface

Acknowledgement

Executive Summary…………………………………………………………………

2. Evolution of Banking Early Growth……………………………………

3. Development of Modern Banking in Pakistan…………………….

4. Introduction to Meezan Bank Limited …………

5. The Vision & Mission ………………………………………………

6. Competitors of Meezan Bank Limited………………………

7. Branch Network……………………………………………………

8. Board of Directors……………………………………………

9. Organizational structure…………………………………

10. PMYBL SCHEME ………………………………………………

11. Accounts ………………………………………………………

12. Cash Department ………………………………………………

13. Operations …………………………………………………………

14. SWOT Analysis …………………………………………………….

15. Recommendation ………………………………………………

16. Marketing practices adopted by bank…………………………

17. Conclusion Remarks……………………………………

Preface:
Internship is an integral part of MBA programmer. For the sake of
internship, the most initial thing is to have a practical experience. This
effort may get a student to get a practical experience if right organization is
selected. During the internship a student comes to particle knowledge. We
learn what we have studied so far. As an MBA student I have also done my
internship at Meezan Bank Limited main branch Adam Town Mirpurkhas.
Here I come to know a different and very interesting experience of learning
and working with staff of Meezan Bank Limited (MBL).

Acknowledgement:
I am grateful to almighty Allah the most Gracious and the most merciful for
enabling me to accomplish this task successfully. I feel much obliged to my
parents whose prayers and good wishes have enabled me to reach this
stage. I am thankful to my teachers for his help, advice and guidance during
studies. I would also like to say thanks to the Manager, staff and
management of Meezan Bank Limited for their cooperation and help. I am
also thankful to all other people who contributed their time & efforts in this
regard.

Executive Summary:
This is the detailed report about Meezan Bank Limited where I did my
internship for six weeks from joining date 30 May 2019 till 13 July 2019.
Meezan Bank Limited a publically listed company is the first and largest
Islamic Bank in Pakistan and one of the fastest growing banks in the history
of the banking sector of the Country. It commenced operations in 2002
when State Bank of Pakistan issued first-ever license for Islamic
commercial banking. The Bank offers wide range of Shariah-compliant
banking products and services to its customers both retail and
business. Besides traditional banking channels, the Bank offers various
Alternate Distribution Channels including Internet Banking, ATM Banking,
Visa & MasterCard debit card, SMS Banking, SMS Alerts, Mobile Banking
Application and Utility Bills Payment through ATM and Internet Banking.
Having the largest branch network and product range Meezan Bank bears
the critical responsibility of leading the way forward in establishing a stable
and dynamic Islamic banking system replete with dynamic and cutting-
edge products and services. Meezan Bank aims to fulfill its prime objective
of providing customers accessibility and convenience within an atmosphere
and culture of dedicated service and recognition of their needs. Meezan
Bank has developed an extraordinary research and development capability
by combining investment bankers, commercial bankers, Shariah scholars
and legal experts to develop innovative, viable and competitive value
propositions that not only meet the requirements of
Today’s complex
Financial world but do so with world-class service excellence which our
customers demand all within the bounds of Shariah. In this report there is
complete history of banking as well as bank Meezan Bank Limited.

Evolution of Banking:
It has not so far been decided as to how the word ‘Bank’ originated. The
explanation of this origin is attributed to the fact that the Jews in Lombardy
transacted the business of money exchange on branches in the market place
and when the business failed the people destroyed the Bank. Incidentally
the
Word ‘bankrupt’ is said to have been evolved from this practice. The
opponents of
This opinion argue that it was so then how is that the Italian
moneychangers were never called
‘Banchierei’ in the Middle Ages?
Other authorities hold the opinion that the
Word ‘Bank’ is derived from the German word back which means joined
stock fund. Then ‘Back’ was Italianize into ‘Bank’

Early Growth:
Banking in fact is as primitive as human society for ever since man came to
realize the importance of money as a medium of exchange. Perhaps it was
the Babylonians who developed banking system as early as 2000 B.C. It is
evident that the Temples of Babylon were used as ‘Banks’ because of the
Prevalent respect and confidence in the clergy King Hammurabi
(1728-1686 B.C) the founder of the Babylonian empire drew up accede
wherein he laid down standard rules of procedure for banking operations
by temples and great landlords. He got his code inscribed on the block of
diorite about 8 feet tall containing about 150 paragraphs which deals with
nearly all aspects of loans, interest, pledges, guarantees, natural accidents,
loss, theft etc. Later on, Sumerians, Babylonians, Hittites and Assyrians
standardized the values of the goods in silver, copper and bronze. In 1401 a
German public bank was framed comprising the operations of discounting
and transferring of money. By the 16th century some more public banks
were formed in Venice, Milan, Amsterdam, Hamburg and Nuremburg. In
order to streamline Banking organizations and techniques conferences
were held in Nuremburg from 1548 to 1551 and it was agreed that the
commercial interest of the time needed a bank with facilities of growth and
transfer but it should not be a bank run by private individuals. Ultimately in
1587 a State Bank under the name of ban co DI rialto was formed in Genoa.
Later the bank of Amsterdam was also formed in1609. This Bank had a
guarantee by the State and rendered valuable services to the Netherlands
Trader’s up to the year 1795.
Similarly, in 1690 the Bank of Hamburg came into existence in Hamburg
with the business of accepting deposits of fine silver or of foreign money
and to run accounts on these deposits. This Bank rendered great service to
the merchants as well as countries it dealt with until 1873 when it was
merged with the Reich bank. By the year 1700 the bank of England was not
only issuing notes but also conducting accounts for customers. Its directors
were conducting the business like that of limited companies. The bank had
the monopoly of issuing banking notes. Up to 1813 or there about in
England the main profit of bank was derived from the circulation of notes.

Development of Modern Banking:

In 1918 came into being eleven clearing banks of today. The effect of this
historical development of banking in England has been fairly wide. First
emergence of a small number of large banks with wide network of
branches. Second increase in the popularity of bank accounts and a large-
scale use of cheques. In 1946 the labor government nationalized the bank of
England and transferred the existing stock to the nominee of British
treasury. In 1955 the British Banks made a departure from traditional
banking by undertaking hire-purchase finance for companies buying
industrial plants and machinery and took interest on hire-purchase finance.
Banking in Pakistan:
At the time of independence there were 631 offices of scheduled banks in
Pakistan of which 487were located in West Pakistan alone. As a new
country without resources it was very difficult for Pakistan to run its own
banking system immediately. Therefore, the expert committee
recommended that the Reserve Bank of India should continue to function
in Pakistan until 30th September 1948 so that problems of time and
demand liability coinage currencies exchange etc. are settled between India
and Pakistan. The non-Muslims started transferring their funds and
accounts to India. By the end of June 1948, the number of officers of
scheduled banks in Pakistan declined from 631 to 225. There were 19
foreign banks with the status of small branch offices that were engaged
solely in export of crop from Pakistan, while there were only two Pakistani
institutions Habib Bank of Pakistan and the Australasia Bank. The
customers of the bank are not satisfied with the uncertain condition of
banking. Similarly, the Reserve Bank of India was not in the favor
of Government of Pakistan. The Govt. of Pakistan decided to establish a
full-fledge central bank. Consequently, the Governor-general of Pakistan
Quaid-E-Azam inaugurated the State Bank of Pakistan on July 1, 1948.Thus
a landmark was made in the history of banking when the state bank of
Pakistan assumed full control of banking and currency in Pakistan. The
banking structure in Pakistan comprises of the following types.

1) State Bank of Pakistan.

2) Commercial Bank of Pakistan.
3) Saving banks.
4) Co-operative banks
5) Specialized credit institutions.

Up to December 31, 1973, there were 14 Pakistan commercial banks that

functioned all over the country and in some foreign countries through a
network of branches. All these commercial banks were nationalized in
January 1, 1974, and were recognized and merged into the following five
banks:

1) National Bank of Pakistan

2) Muslim commercial bank limited
3) Habib Bank Limited
4) United Bank Limited
5) Allied Bank of Pakistan
 The state bank of Pakistan is the Central bank of the country and was
established on July 1, 1948.The separation of East Pakistan and its
repercussion in the form of economic depression has caused a lot of
difficulties to the banking system in Pakistan. The network of bank
branches now covers a very large segment of national economy. The
numbers of branches have increased appreciably and there is now on
branch of bank for every 3000 heads of population approximately. There is
done reasonable growth in deposits from the establishment of
Pakistan. Besides this growth specialized credit and financial institutions
have also developed over the years.
The Government of Pakistan in the late 90’s inroad
using the need for the privatization of state-owned banks and
companies. The private sector has accepted the challenge and most of the
banks are privatized today. The State Bank of Pakistan issues the shares of
these periodically. Bank employees and other common peoples can
also purchase these shares and earn profit.

Introduction to Meezan Bank Limited:

1947
The inception of Pakistan as the first Islamic Republic created in the name
of Islam.

1980
CII presents report on the elimination of Interest genuinely considered to
be the first major comprehensive work in the world undertaken on Islamic
banking and finance.

1985
Commercial banks transformed their nomenclature stating all Rupee
Saving Accounts as interest-free. However, foreign currency deposits in
Pakistan and foreign loans continued as before.

1991
Procedure adopted by banks in 1985 was declared un-Islamic by the
Federal Shariat Court (FSC). The Government and some banks/DFIs made
appeals to the Shariat Appellate Bench (SAB) of the Supreme Court of
Pakistan.
1997
Al-Meezan Investment Bank is established with a mandate to pursue
Islamic Banking. Mr. Irfan Siddiqui appointed as first and founding Chief
Executive Officer.

1999
The Shariat Appellate Bench of the Supreme Court of Pakistan rejects the
appeals and directs all laws on interest banking to cease. The government
sets up a high-level commission, task forces and committees to institute
and promote Islamic banking on parallel basis with conventional system.

2001
The Shariah Supervisory Board is established at Al-Meezan Investment
Bank led by Justice (Retd). Muhammad Taqi Usmani as chairman. State
Bank of Pakistan sets criteria for establishment of Islamic commercial
banks in private sector and subsidiaries and stand-alone branches by
existing commercial banks to conduct Islamic banking in the country.

2002
Meezan Bank acquires the Pakistan operations of Society General and
concurrently Al Meezan Investment Bank converts itself into a fully fledged
Islamic commercial bank. The first Islamic banking license is issued to the
Bank and it is renamed Meezan Bank. President General Pervez Musharraf
inaugurates the new Islamic Commercial Bank at a formal ceremony in
Karachi.

2003
Meezan Bank establishes itself as the pioneer of Islamic Banking in
Pakistan and quickly establishes branches in all major cities of the country.
A wide range of products are developed and launched
Consolidating the Bank’s position as the premier Islamic Bank of the
country Al Meezan Investment
Management Limited (AMIM), the asset management arm of Meezan Bank,
introduces Meezan Islamic
Fund (MIF), the country’s first open
-end Islamic Mutual Fund.
2004
The State Bank establishes a dedicated Islamic Banking Department (IBD)
by merging the Islamic Economics Division of the Research Department
with the Islamic Banking Division of the Banking Policy Department. A
Shariah Board has been appointed to regulate and approve guidelines for
the emerging Islamic Banking industry. The Government of Pakistan
awards the mandate for debut of international Sukuk (Bond) offering for
USD 500 million. The offering is a success and establishes a benchmark for
Pakistan. Meezan Bank acts as the Shariah Structuring Advisor for this
historic transaction.

2005
Meezan Bank becomes the first customer of Islamic Insurance (Takaful) by
signing the first Memorandum of Understanding MoU with Pak-Kuwait
Takaful Company Limited (PKTCL). The signing of this MoU has ushered
Pakistan into a new era of Islamic Insurance (Takaful).

2006
A number of new dedicated Islamic Banks, namely Bank Islamic and Dubai
Islamic Bank, commence operations in Pakistan. Meezan continues its
leadership position in the industry by more than doubling its branch
network to a total of 62 branches in 21 cities, clearly establishing itself as
the largest Islamic Bank of the country. Meezan Bank becomes the first
Islamic bank to introduce 8 am to 8 pm banking at selected branches in
Karachi.

2007
Meezan Bank's branch network reached the milestone number of 100
branches (including sub-branches) in 31 cities nationwide.

Car Ijarah
Portfolio reached Rs. 4.1 billion and the Easy Home portfolio stood at Rs.
3.1 billion. The Bank introduced Istisna' financing to cater to the working
capital needs of customers. Meezan Bank was awarded 'Best Islamic Bank
in Pakistan' by Islamic Finance News of RED money Group, Malaysia.
Deposit base of the Bank grew to over Rs. 54 billion and the Bank earned
profit after tax of Rs. 963 million. Trade Finance business reached
Rs. 70 billion.
2008
Meezan Bank introduced

Tijarah
Financing to allow customers to raise funds for financing of stocks of
finished goods. Meezan Bank was awarded 'Best Islamic Bank in Pakistan'
by Islamic Finance News of RED money Group, Malaysia and 'Best Islamic
Financial Institution in Pakistan' by Global Finance Magazine, New York.
Branch network grew to 166 branches (including sub-branches) in 40 cities
nationwide. Deposit base grew to Rs. 70 billion and the total financing
portfolio amounted to Rs. 39 billion.

2009
was a watershed year for Meezan Bank. The branch network reached 201
branches (including sub-branches) in 54 cities nationwide; deposit base
crossed Rs. 100 billion; profit/return earned on financing and investment
activities exceeded Rs. 10 billion and the Bank handled more than Rs.
100billion of import/export business. Being a socially responsible bank,
Meezan Bank launched Meezan Labbaik a Hajj and Ummrah
Product the primary objective being the desire to facilitate Muslims in
performing their holy duty. Meezan Visa Debit Card was also launched
during the year which is accepted at over 30 million outlets worldwide and
allows customers to withdraw funds from their account from more than 1.4
million ATMs worldwide and can also be used for shopping, dining,
traveling, fuel and cash needs. Meezan Bank was awarded 'Best Islamic
Bank in Pakistan' by Islamic Finance News of RED money Group, Malaysia;
'Best Islamic Financial Institution in Pakistan' by Global Finance Magazine,
New York;' Best Islamic Bank in Pakistan' for 2009 by ASIA MONEY
Magazine, Hong Kong and 'Islamic Bank of the Year' for 2009 by CFA
Association of Pakistan. Corporate assets, including corporate Sukuk stood
at over Rs. 40 billion. Corporate highlights of 2009included Tijarah
financing with PSO, Istisna financing with PARCO and

Murabaha
Financing with Punjab food department. The Bank started implementing
its new core banking application - T-24. T-24 is a core banking software
which includes banking best practices based on Temenos' implementations
in over 600financial institutions and 120 countries across Retail,
Corporate, Private Wealth, Islamic and Microfinance and Community
Banking sectors.

2010
Meezan Bank developed a number of new deposit products to cater to the
unique needs of different market segments. Among the products launched
during this year were Meezan Business Plus, a Mudaraba-based account
that offers an array of free services for businesses, Meezan Euro Savings
Account and Meezan Pound Savings Account. Meezan Bank's Car Ijarah
completed its 9th year and stood at Rs. 4.2 billion with over 8,000 active
vehicles. Meezan Bank stood among the top three auto-finance providers in
the country. Al Meezan Investment Management launched Meezan
Sovereign Fund - an open-end fund; the eighth
fund under its management, including two closed-end funds, five open-end
funds and one voluntary pension scheme. The Bank developed a financing
product based on the concept of 'Wakalah', to encourage the development
of financing partnerships between Islamic banks and Microfinance banks.
During the year, 38 Islamic banking awareness seminars were held in 23
cities across Pakistan and were attended by more than 4,400 participants
representing customers, general public and professionals. Meezan Bank
was awarded 'Best Islamic Bank in Pakistan' by Islamic Finance News of
RED money Group, Malaysia and 'Best Islamic Financial Institution in
Pakistan' by Global Finance Magazine, New York. Meezan Bank's branch
network reached 222 branches in 63 cities across Pakistan and it became
the11th largest bank in Pakistan in terms of branch network. The Bank
demonstrated robust business growth in 2010, closing the year with a
deposit figure of Rs.131 billion and Import/Export business of Rs. 143
billion.

2011
The inauguration of the new Head office in Karachi symbolizes Meezan
Bank's established position amongst the leading banks and the largest
Islamic Bank in Pakistan. During the year, 53 branches were opened to
reach a landmark of 275 branches in 83 cities across Pakistan. Meezan
Bank was awarded the
‘Best Islamic Bank in Pakistan for 2011’ by Islamic Finance News of RED
money Group, Malaysia.
The bank expanded its portfolio of consumer financing products with the
launch of Meezan Laptop Ease in first quarter of 2011 which is the first of
its kind in Pakistan.
The Bank added another “First” in Pakistan’s Islamic Banking Industry by
becoming the Advisor and
Lead Arranger for the first ever short-term Sukuk for Kot Addu Power
Company Limited. During the year 27 Islamic Banking Seminars and over
110 Customer Appreciation Days (115) were held to educate customers and
the general public and Islamic banking.

2012
Meezan Bank reached 10 years of Riba free banking with 310 branches in
90 cities. The Bank launched Visa Platinum Debit Card for its customers.
The Bank also started Premium Banking Services and opened Premium
Banking Centers throughout the country. Another important achievement
was the launch of Meezan Kids and Teens Club Account for the children
and teenagers who want to save money for their future.

2013
Meezan Bank became the 8th largest bank in Pakistan in terms of branch
network with 350 branches in 100 cities. Total deposits of the Bank reached
Rs. 280 billion. The Government of Pakistan nominated Mr. Irfan Siddiqui,
the President of Meezan Bank and Dr. Imran Usmani, Shariah Advisor of
Meezan Bank as members of Steering Committee for the Promotion of
Islamic Banking. The Bank also made an agreement with Ethical Finance
Limited for establishing first Islamic commercial bank in Republic
of Mauritius.

2014
Meezan Bank reached a branch network of 428 branches in 117 cities. The
Bank acquired Pakistan
operations of HSBC.
Total deposits reached Rs. 380 billion.
Meezan Bank launched Master Card Titanium debit card, Mobile Banking
Application, Meezan Kafalah (Takaful), EBiz - Corporate Internet Banking
and Meezan Roshni- Generator financing.

2018
Meezan Bank wins the prestigious ‘Best Bank for 2018’ award at Pakistan
Banking awards
Pakistan Banking awards are the most prestigious and definitive
recognition of excellence in Pakistan’s banking sector and the ‘Best Bank’
award is the highest accolade awarded under this initiative. The awards are
a joint initiative of the Dawn Media Group, Institute of Bankers Pakistan
(IBP) and A.F. Ferguson, under the patronage of State Bank of Pakistan.

The seven-member jury that selected Meezan Bank as Pakistan’s ‘Best Bank
for 2018’, was chaired by Adviser to the Prime Minister on Institutional
Reforms and Austerity and former governor of the State Bank of Pakistan
(SBP) Dr Ishrat Husain. The Jury’s decision was based on detailed
evaluation and performance of the banks that had vied for this award.

The 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.

The 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 stake holders’ 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.
Our Values:

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

Staff:
Committed, motivated and professionally trained employees who are
empathic to their customers’
needs.

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

Competitors:
Despite notable economic uncertainties the financial strength of Meezan
Bank Limited has greatly enhanced during the previous years. The
successful expansion program proved their capability and commitment in
comparison with the competition in the financial sector. The Banking
structure in Pakistan comprises of:

Central Bank

Commercial Banks

Investment Banks

Development finance Institutions (DFIs)

Specialized Banks

Foreign Banks

Meezan Bank Limited is a private commercial bank so

the major competitors of Meezan Bank Limited is the
following:
Muslim Commercial Bank

Standard chartered

Soneri Bank Ltd

Prime Commercial bank

The bank of Punjab

Bank Al-Habib Ltd

ABL

Faysal Bank Ltd

NIB

Arif Habib Rupali Bank Ltd.

Branch Network:
Alhamdulillah, with over 660 branches in over 159 cities across Pakistan,
Meezan Bank is the first largest Islamic Bank (in terms of Branch Network)
in Pakistan. This is a milestone that isn’t only the success story of Meezan
Bank but also the continuing success story of Islamic banking in Pakistan.
With this extensive network, our existing and potential customers are now
closer than ever in benefiting from Islamic Banking at their doorstep. All
branches provide real-time online banking facilities to customers.
The list of Board of Directors of Meezan Bank Limited is
as under:

Mr. Riyadh S.A.A. Edrees (Chairman)

Mr. Faisal A.A.A. Al Nassar

Mr. Bader H.A.M.A. Al Rabiah

Mr. Alaa A. Al-Sarawi

Mr. Saad Fazil Abbasi

Mr. Mohammad Guermazi

Mr. Noor ur Rahman Abid

Ms. Nausheen Ahmed

Mr. Irfan Siddiqui(President & CEO)

Mr. Ariful Islam(Deputy CEO)

Computerized Working Environment:
In bank all the work is done on computers. All the entries are made in
computer. Balance is fed into the computer. This increases efficiency of the
bank. All the branches are centrally controlled through Lan setting. It helps
them to co-ordinate more easily for making efficient and fastest
consumer services

Islamic Agricultural Financing:

Meezan Bank is considered as a trend setter in Islamic Banking in Pakistan
mainly on account of offering wide range of Shariah-Compliant banking
solutions to cater different needs of its customers. Following its track
record, Meezan Bank is now offering Islamic Agricultural Financing
Products to farmers.

PMYBL SCHEME:
Under this scheme, financing will be available to the youth of Pakistan
under the four major categories along with the eligibility criteria:

1.Small Entrepreneur:
Unemployed youth, especially educated ones who are looking for
establishing or extending Shariah-compliant business in their personal
capacity through establishment of enterprise.

2.Micro Enterprise:
Individuals who have successfully completed 3-4 cycles with Akhuwat and
want to graduate from their current business size.

3.Agriculture (Tractor Ijarah):

Young farmers who require Tractor financing.
Riba Free-Rupee Saving Account
With a minimum of only PKR 10,000 THE Rupee Saving Account can be
opened under musharakah agreement. The profit earned is calculated every
month. And if the client maintains a monthly balance of PKR 10,000 the
client is eligible for the profits that will be disbursed every month.
However, the clients of COII may open this account with any minimum
balance. Profit calculation is based on weight ages in the following tiers:
PKR 10,000 up to PKR 9,999,999
PKR 10,000,000 up to PKR 49,999,999
PKR 50,000,000 up to PKR 99,999,999
PKR 100,000,000 and above

4.Car Ijarah:
Vehicles like Bolan & Ravi will be financed for the purpose of Taxi, Delivery
Vans and similar activities etc.

5.Meezan Strategic Allocation Plans

Meezan Strategic Allocation Plan-V (MSAP-V) is the fifth plan based on
Fund of Funds Scheme, Meezan Strategic Allocation Fund (MSAF). The
plan has an initial term of two years and will use active asset allocation
strategy for providing competitive returns on your investment.

Investment Objective & Philosophy

The objective of Meezan Strategic Allocation Plan – V (MSAP-V) is to
actively allocate its portfolio between Shariah compliant equity schemes
and Shariah compliant fixed income/money market schemes based on the
macroeconomic outlook on such asset classes.

Key Benefits
Meezan Strategic Allocation Plan –V (MSAP-V) allows maximum possible
equity participation based on Fund managers outlook on the market.
Strategy reflective of investor’s risk appetite as market conditions change.
Actively managed by experienced Fund Managers.
Initial duration of 2 years from the close of subscription.
Avail Tax Rebate on your investments as per Section 62 of ITO.
Managed by the only Shariah compliant Asset Management Company in
Pakistan with a solid track record of over 24 years, and under the
supervision of the Shariah Supervisory Board of Meezan Bank.
This Product Is Suitable for Investors Who Are Seeking*:
Active Allocation between Equity and Money Market
Shariah complaint investment and Halal profit
Risk controlled strategy
Risk and return potential:
Medium Investors are encouraged to consult their Investment advisors
prior to investing in the product.

Type of Accounts:
Meezan Bank offers the largest range of Riba-free Deposit Accounts
for Personal Banking

1. Local Currency Accounts:

Rupee Current Account- A Convenient, Secure and Stable Deposit

Account

Rupee Savings Account- Ensuring Truly Halal Savings with

Comprehensive Returns

Meezan Bachat Account- The convenience of a Saving Account with

Halal Profit

Labbaik Saving Aasaan- A specialized Saving Account designed to

save for Umrah & Hajj
Business Plus Account- Serving you the perfect blend of convenience
and flexibility
Meezan Kids Club Account- Specialized saving account for kids under
the age of 12 years

Meezan Teens Account- Mudaraba based saving account specifically for

teens

Meezan Asaan Current Account- A Convenient, Secure and Stable

Deposit Account

Meezan Asaan Savings Account- Ensuring Truly Halal Savings with

Comprehensive Return

2. foreign currency department

Dollar Current Account- A Truly Halal Dollar Current Account

Dollar Saving Account- A Truly Halal Dollar Saving Account

Euro Current Account- A Truly Halal Euro Current Account

Euro Saving Account- A Truly Halal Euro Saving Account

Pound Current Account- A Truly Halal Pound Current Account

Pound Saving Account- A Truly Halal Pound Saving Account

Procedure of opening Account:

The procedure of opening the account is as given under for account

MR. Waqas Business development officer

proved so helpful tome to learn that opening of an account and its all
procedure which is as under: For opening of an account there are different
types of account holders are required for all these types.

The operation/procedure requirement that is needed for “Individual

Account” differs greatly from the “Joint Accounts” proprietorship A/C,
Partnership A/C, Private Limited Company A/C and Public Limited
Company A/C.

Individual’s Account:
When a single man or woman opens an account in his or her own name and
has the right to operate it is called individual A/C.

Documentation:
Copy of National Identity Card

Proof of Income

Proper Identification (Introduction).

Operations:
The person place in the type of account and type of operation required in
the account opening form.

He/she fills in part 1 of the form a fix his/her either two of four similar
signature (or thumb expression in the signature space) and get it
introduced and signed by a person who already Aasaan account with the
bank and write his account number in the specific rows in a specific space.

The person fills his or her father, mother, husband/wife or any other
relative’s name his/her
address, phone number, his or her sign to certify this requirement. This
requirement is needed because in his/her absence bank can
have correspondence with a specific person.
The person deposits the initial amount for opening account onto the cash
counter. The person put his signature on
form on two places in “authorized Signature” and fills in the “Title of
Account” space by writing his name.

If the person put his signature in Urdu or any other language other than
English, he signed a
“Vernacular Form”.

If the person has changed its

signature then he must have to sign the “signature change undertaking”.

The next step is entering in computer because the centralized account

opening structure and generation of account number.

1.Account Opening Form:

First of all, the customer fills the account opening form (AOF). Filling of
account opening form includes type of account, currency of account, name,
and address, signature of customer and signature of introducer and attach a
photocopy of national identity card. He also signs an undertaking that he
will follow the rules and regulations of the bank.

2.Introduction:
The signature and account number of the account holder introducing the
account to the new person is obtained on the account opening form.

3.Specimen Signature Card:

The signature of the client is obtained on a specimen signature card (S.S
Card). The card is obtained with two signatures from the customer. Every
time a cheque is received for payment from the client the signature on the
cheque is verified by comparing it with S.S Card.
4.Requisition slip:
A requisition slip for Cheque book is also given to the customer.
The customer fills it and gives it to the account opening Officer.

5. Know Your Customer Form:

Every account holder fills this form. The basic purpose of this form is to get
some basic information
about the customer’s business and source of incomes

6.Account Number:
When all the formalities are completed an account, number is allotted to
the customer and all the information is entered into the computer and
register. Then that account number is written on S.S Card and account
opening form.

7.Depositing of amount in account:

The client deposit cashes in the account. For this purpose cash pay-in-slip
is used. The minimum initial deposit is fixed for each account according to
the nature of account. For example, for PLS / saving account the minimum
requirement is Rs.100 only.

8.Issuance of a Cheques Book:

After opening an account with the bank, the account holder makes a
request in the name of the bank for the issuance of a Cheque book. Such a
request is known as Requisition Slip. BAL issues Cheque books from 10
leaves to 50 leaves. When he used this book completely then he can apply
for another known as subsequent Cheque Book. This process takes a day
because the Cheque books come from the Karachi head office.
9.Entry of Cheques Book:
Before issuance of a Cheque book the bank stamp every leaf with the
account number of the customer enter it in the cheque book register and
computer and issues the cheque book to the customer after his signature on
the register.

10.Letter of Thanks:
A letter of thanks is prepared. One letter is for the customer and one for the
introducer. One copy is sent to the customer and the other copy is kept in
the record along with other documents.

Amendments/Changes in Accounts:
BAL provides the facility of amendments in accounts, whenever required by
the customers. Accountholder gives an application along with necessary
documents to the bank. Then the amendments are made in the account of
the depositor. These amendments can be made by filling certain application
forms. These forms are as follows:

1.Change of Address Form: To change the address of the account holder

2.Change of signature form: To change the signatures of the customer.

3.Liability / Inquiry Form:

This form is used if some person has acquired loan from the bank and he
wants to close his current account then he fills this form and this form is
send to credit department. When the credit department declares him free
from any debt obligations then his account is closed.

4.Mandate to The Third Party to Operate the Account:

This form is used to enable any third party to operate the account.
Closing of Accounts:

The procedure of closing of account is as follows.1.

First of all, the customer gives the request to close the account.2.

His signatures are verified.3.

He withdraws all his money from his account but in case of current account
Rs. 150 is deducted as a charge of closing the account.

A liability form is sent to the credit department if he has taken a loan from
the bank. If he is cleared from all the liabilities then further proceeds are
taken.5.

Permission is granted by the authorized person (the manager).6.

Account is closed in the computer system.7.

His specimen signature card is attached with the account opening form and
marked closed.

Meezan Bank limited Issues the Following Cheque book

Denominations:

10 leaves

25 leaves

50 leaves

100 leaves
Cash Department:
MR. Atif khan
helped me in learning about Cash Department. Cash Department performs
two main functions and other subsidiary functions:

Cash Deposits

Cash Payments

Online Cash Receipts & Payments

Cash Deposits:
Cash receiving officer receives cash along with pay-in slip from the
customer. He/ She checks if the deposit slip is properly filled up containing
title of account, account number, date and amount in word and figures. He
also verifies signature. Detail on both counter file and cash receipt voucher
should be the same. Cash is received by the cash receiving officer, twice
counted and matched with the deposit slip. The cash details are written on
the back of the deposit slip and are also entered in cash receiving register.
Cash received stamp is affixed on the face of the deposit slip along with the
signature of the cash receiving officer. Deposit slip and cash receiving
register is given to the officer in cash department. Again, proper scrutiny is
made by the officer cash department both on cash receipt and cash
receiving register. Officer cash department signs both the deposit slip and
register; Deposit slip is credited and posted in the concerned account in the
system.

Payment of Cheques:
The process for payment of cheques for local and foreign currency is same.
First the customer presents the Cheque or holder to branch and the
particulars of cheques are properly filled in. Signature of the holder is taken
on the back of the cheques. Cheque handed over to the officer cash
department for
scrutiny where officer checks the date, amount in words and amount in
figures, payee’s name crossing if
any, account number, cheque serial number any material alterations,
endorsements and signature of the customer. Account is debited and then
the officer cancels cheque. It is posted in the system and posting stamp and
number is affixed on it. Cheque is handed over to the cash payment officer
for payment. One more signature on the back of the cheque is taken from
the holder to match with the first one, and then cash is paid to the payee.
Cash detail is written on the back of the cheque. Cash paid stamp is affixed
on the face of the cheque. Entry is passed in the cash payment register. If
the payment is of Rs. 50000 the cashier can make it on its own. If the
amount is greater than Rs. 50000the cashier and cash deposit in charge
will verify the check and will sing it. Then the payment will be made.
Otherwise the payment will not be made

Clearing Department:
In clearing
Mr. Shehzada parwez
proved so helpful. The clearing process majority involves receiving the
cheques and making payments. This process can be inward or outward

Clearing Process (Inward/Outward)

Here the local Cheques are received that are drawn on BAF. All the cheques
are received on one counter along with the paying slips duly filled in
properly containing particulars of cheques and account harder. Counter
folio of paying slip is handed over to the customer by putting stamp for
#cheque received for collection for Meezan Bank Limited on it duly signed
by officer. These Cheques are scrutinized and cheques for local clearing are
separated from OBC. These are then entered in clearing register and
cheques for collection are entered in OBC register and handed over the Bills
Department for collection. Clearing officer checks and verifies title of all the
cheques deposited by the customers to confirm the good title of the
cheques. Cheques are scrutinized properly and paying slips are separated
from cheques. Special crossing, endorsement and clearing stamps are
affixed on the cheques. Cheques of each bank are sorted and arranged
branch wise. All the cheques are then entered into the clearing system of
the bank. Print out of the clearing is taken and details are attached with the
cheques of each bank. Details of these banks are then entered into the
clearing schedule containing number of cheques presented and their total
amount against the name of each bank. Then total number of
chequespresented to all banks and their total amount is written on the foot
of that schedule which is tallied with the clearing register. Next morning
these cheques are delivered to the respective banks through NIFT in
clearing house of State Bank of Pakistan between 9:00 to 9:30AM.
In the same manner other banks present their clearing drawn on Meezan
Bank limited. Total number of cheques and their amount delivered to other
banks and received from them are written on the Clearing House schedule
branch for their payment. After proper scrutiny of cheques verification of
signatures and confirmation of balance in the account the Officer Cash
Department pays these cheques by canceling and posting them in the
system. If any cheque is not passed due to insufficient balance or any other
reason Officer clearing Department returns the same cheque by attaching a
cheque return memo containing reason for return. This cheque entered into
the cheque returned register and bank charges are deducted according to
the schedule of charges. Second clearing is called at 2:30PM to check the
fate of the cheques presented to other banks in the morning. If any cheque
is to return that is delivered to the same bank in second clearing. In the
same manner if any cheque presented by Meezan Bank Limited in first
clearing is returned they receive it and once again give schedule of clearing
figure to the Officer Clearing House SBP containing number of cheques and
their amount delivered and received unpaid.

Remittances Department:
The need of remittances is commonly felt in today’s business. The main
function of remittance department in a bank is the transfer of funds.

Mr. Muhammad Sharukh khan operation manager

in Meezan Bank Limited is the officer for Remittances Department. In
remittances following banking instruments are used:

Pay order
Demand draft

Online transfer

Call deposit receipts

Traveling cheque

The procedure for dealing with all these under local as well as foreign
currency in MBL is as under.

Pay Order:
A pay order is a written order issued by a bank drawn upon & payable by
itself to pay a specified sum of money to or to the order of a specified
person.

Procedure for Pay Order:

Application form is given to the customer to fill. Two signatures are taken
on the form one for request and other for receiving the instrument. All the
particulars of application form are checked and bank commission charges
and withholding tax is written on the top of the application form. If the
customer is maintaining his account with the branch, he can give cheque
for total amount of instrument plus bank charges. Cheque and application
from are then given to the officer Cash Department for the payment of
cheque. After proper scrutiny Officer Cash Department posts the cheque
and signs the application forming token of payment received. If the
customer wants to pay cash then cash is deposited by the customer along
with the bank charges and withholding tax. Application form is then given
to the Remittances In charge for issuance of instrument. He enters all the
particulars of the application form in the system and computer gives an
Auto Control Number to the instrument. Printout is taken on the block of
payment Order. Two authorized officers of the branch then sign
it. Instrument is then protecting graphed and given to the customer.
Demand Draft:
A Demand Draft (DD) is an instrument, which is drawn by one bank upon
another bank for a specific sum of money payable on demand. It is made by
the bank, given to the purchaser against cash or cheque.

Parties Involved In DD:

Purchaser Issuing Branch

Drawee Branch Payee

Procedure for Issuing DD:

Issuance procedure of Demand Draft is same as of pay Order.

Procedure for Demand Draft Payable:

When DD advice is received, signatures of both signatory on the DD
are verified. All the particulars of the DD payable are entered in the
system. Prints out of vouchers (DD payable) are taken. When instrument is
presented for payment, signatures of the attorneys are verified on DD and
after proper scrutiny; it is posted in the system and canceled by the
Remittances In charge.

Online Transfer:
Sometimes when the remittance is urgently required by the remitter online
Transfer is made.
Collection:
All the cheques under collection are called cheques under Collection in
Meezan Bank Limited. There are two types of bills for collection:

Outward Bills for Collection

Inward Bills for collection

Accounts Department:
Most important department of bank as it is concerned with:

1.Revenue

2.Expenses

3.Assets

4.Liabilities

Daily Customer Movement List:

All the changes that are made in accounts of customer are shown in the
daily customer movement list. By using this list people of Accounts
Department can prepare the vouchers. Following activities are performed
by Account Department:

Voucher preparation

Preparation of daily, weekly, monthly, and annual statement.

Budgeting and fixed assets
Employer’s benefit
Expenditure approval.
SWOT Analysis:

Strengths:

Bank has a belief in customer service Customer give suggestion for

the improvement of bank and these suggestions are listened carefully.
Manager Mr. UBAIDULLAH KARIMI has a good coordination with
staff members. Environment is friendly.

Products are excellent

Expansion is consistent

Modernized banking (online + Internet)

Fully computerized each department has to own PC.

Weaknesses:
New Setup
Staff is lesser.

Opportunities:
Information Technology.

Establishing Foreign Branches

Local Setup Expand

Threats:
Competition by the settled bank like MCB and others
There is a possibility that in future the customers are too many to be
handled by the so small number of the employees.
Governmental policies may pose unpleasant role

Global issues like America Iran war and terrorism

24.Recommendations
Finally, there are some suggestions for Meezan Bank Limited. These
suggestions are based on experience with the bank. This is a routine
practice that in order to give personalized services to the customer bank
staff tries to fill all the columns of AOF with their own handwriting which is
wrong. AOF must be filled in by the customers. Bankers should avoid filling
in the AOF because it can create problem if the address, title of account or
any other information provided by the customer has not been written
properly. Customer may be affected or he may claim that this information
was not provided by him, but if AOF is filled by the customer then banker
cannot be held responsible for any incorrect information provided by the
customer.

Marketing Practices Adopted by Bank

Nowadays marketing of products is of prime importance for any
organization. In this dynamic environment every organization has its own
Marketing Department which is responsible for creating the demand of its
goods and services. Nowadays banks also have their marketing
departments which are responsible for creating demand of their products
i.e. their deposit schemes and increasing the deposit of the bank. Meezan
Bank Limited has its own full marketing Department at the Head Office
Karachi. This department prepares different deposit schemes for its
customers time to time in order to increase the business of the bank. At
branch level the Operations Department follows marketing practices. At
each branch of bank officers are available to provide marketing activities of
their products. They make customer calls and personally visit the potential
customer to convince them to invest. They make phone calls to customers
and inform them about their schemes, profit rates.
Concluding Remarks
The way a person learns during course of studies is
different from the the way a person learns
during course of work. I believe that during work, a person develops in
addition to learning,
but during course of studies, a person learns only (not develops). The
internship I completed
with Meezan Bank was a gr
eat source of development for me. It was, in fact, quite conducive
to learning and open to rapid career growth because of my repeated
exposure and interaction
with top management
vis multiple and miscellaneous projects. At Meezan Bank, human
capital is the most valuable equity.
More to the point, the internship provided me the opportunity of working
with a team of highly
qualified professionals who remained a great source of motivation and
professional grooming for me. In addition, the environment of the bank
was ideal for me since it was genial and quite conducive to work briskly
without being reserved.
Meezan Bank provides the tools needed for its people to develop world
class analytical, leadership, management and relationship building skills.
The bank ensures the proper development of its employees to cope with the
current market trends and business needs. Besides, the bank fosters
teamwork and encourages innovation at all levels of career.
.