Executive Sumamry Internship is an integral part of MBA program.

It provided me the opportunity todevelop practical know how of concepts which before that were only in theoreticalform. My internship in Meezan Bank, Bahria Town Branch, Bahria Town, Rawalpindi wasfull of learning regarding various aspect of banking. The report contains practicalknowledge, which I gained during my internship.Meezan Bank limited is one of the largest private banks in Pakistan, and it has bright future forward. All information in this report is based on my observation,interviews and practicalinvolvement in different tasks during my internship in Bank . Assessment of the needs and wants of the customers is an ongoing process atM e e z a n B a n k , w h i c h h e l p s t o c o n t i n u a l l y d e v e l o p n e w p r o d u c t s a n d s e r v i c e s . T o continuously offer courteous, professional and advanced banking solutions, the team of b a n k h a s r e c e n t l y b e e n rejuvenated by going though training programs with a focus o n information technology.To make their banking solutions become accessible to more and more people, theyhave embarked upon a rapid expansion program, aiming to provide a networking that makest h e s e r v i c e s a v a i l a b l e t o a n y o f t h e i r c u s t o m e r s i n a l l t h e m a j o r u r b a n c e n t e r s of Pakistan- with a view to go international in the near future.With their key indicators of progress already soaring to new heights, the bank isc o m m i t t e d t o d e d i c a t e a l l i t s e n e r g i e s , r e s o u r c e s a n d t i m e t o b r i n g h i g h e r v a l u e a n d satisfaction to their customers, employees and shareholders.The graph of bank is going up and up every year. The ratio of profit is increasing atg o o d p e r c e n t a g e . T h e b a n k i s s e r v i n g t h e p e o p l e a t h i g h l e v e l o f s t a n d a r d b y g o i n g according to the whishes of the customers. Overview of the Organization Brief History of the Organization 1947 The inception of Pakistan as the first Islamic Republic created in the name of Islam. 1980 CII presents report on the elimination of Markup genuinely considered to be the firstmajor comprehensive work in the world undertaken on Islamic banking and finance. 1985 Commercial banks transformed their nomenclature stating all Rupee SavingAccounts as markup-free. However, foreign currency deposits in Pakistan and foreign loanscontinued as before. 1991 Procedure adopted by banks in 1985 was declared un-Islamic by the FederalShariat Court (FSC). The Government and some banks/DFIs made appeals to the ShariatAppellate Bench (SAB) of the Supreme Court of Pakistan. 1997

Al-Meezan Investment Bank is established with a mandate to pursue IslamicBanking. Mr. Irfan Siddiqui appointed as first and founding Chief Executive Officer. 1999 The Shariat Appellate Bench of the Supreme Court of Pakistan rejects the appealsa n d directs all laws on markup banking to cease. The government sets u p a h i g h l e v e l 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 setscriteria for establishment of Islamic commercial banks in private sector and subsidiaries andstand-alone branches by existing commercial banks to conduct Islamic banking in thecountry. 2002 Meezan Bank acquires the Pakistan operations of Societe Generale andconcurrently Al Meezan Investment Bank converts itself into a full fledged Islamiccommercial bank. The first Islamic banking license is issued to the Bank and it is renamedMeezan Bank. President General Pervez Musharraf inaugurates the new IslamicCommercial Bank at a formal ceremony in Karachi. 2003 Meezan Bank establishes itself as the pioneer of Islamic Banking in Pakistan andquickly establishes branches in all major cities of the country. A wide range of productsare developed and launched consolidating the Banks position as the premier Islamic Bank of the country Al Meezan Investment Management Limited (AMIM), the assetmanagement arm of Meezan Bank, introduces Meezan Islamic Fund (MIF), the countrysfirst openend Islamic Mutual Fund. 2004 The State Bank establishes a dedicated Islamic Banking Department (IBD) bymerging the Islamic Economics Division of the Research Department with the IslamicBanking Division of the Banking Policy Department. A Shariah Board has been appointedto regulate and approve guidelines for the emerging Islamic Banking industry. TheGovernment 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 historictransaction 2005 Meezan Bank becomes the first customer of Islamic Insurance (Takaful) by signingthe 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 IslamicInsurance (Takaful). 2006 A number of new dedicated Islamic Banks, namely Bank Islami and Dubai IslamicBank, commence operations in Pakistan. Meezan continues its leadership position in theindustry by more than doubling it branch network to a total of 62 branches in 21 cities,clearly

establishing itself as the largest Islamic Bank of the country. Meezan Bank becomesthe first Islamic bank to introduce 8 am to 8 pm banking at selected branches in Karachi. 2007 Meezan Bank opens up its 100th branch. Two new dedicated Islamic Banks startoperations in Pakistan, namely Emirates Global Islamic Bank and Dawood Islamic Bank. 2008 With 166 Branches (including 35 sub-branches) in 40 cities across Pakistan,Meezan Bank is clearly positioned as the leading Islamic Bank in the country. Work startson the construction of Meezan Banks new Head Office building. The financing andinvestment portfolio of local Islamic banks reached Rs. 185 billion in December 2008compared to Rs. 137.6 billion in December 2007. Market share in the overall bankingincreased to five per cent at end December 2008 compared with four per cent at endDecember 2007. Total assets of Islamic banking reached Rs. 271.1 billion in December 2008 compared to Rs. 205.2 billion in December 2007 Nature of the Organization Meezan Bank is a commercial bank which receives deposits from the people whohave it spare and invests it with those who are in need of them. It has got the license of commercial banking from the State Bank of Pakistan and is registered under the legislationof Banking Companies Ordinance 1962. It has dedicated itself to do business of bankingaccording to Islamic rules and regulations and is supervised by a Shariah Board whokeeps an eye on the operations of the bank and ensures that the same must be inaccordance with the teachings of Islam and there must be no element of Riba in it ACCOUNTS DEPARTMENTS STRUCTURE AND FUNCTIONS Accounts department in the bank works as an internal audit department of theorganization. All the vouchers prepared and all the cheques that are processed are finallycome to the accounts department where these are sorted and summarized. OBJECTI VE: The objective of this department is to conduct the internal audit and to provideexact information of daily transactions. F U NC T I O NS: Three main functions of accounts department are as follow: 1. Data controlling 2. Reporting and expense 3. Budgetary performance review and analysis 1 ) D A T A C O N T R O L L I N G : The main features of data controlling are: To match physical data with computer generated data

To check authorization control of transactions Is the data property authorized To keep a track of record of all transactions (physical data) for future evidence To arrange the data in some order to facilitate or to ease the process of dataRetrieval Aspects of Data Controlling Customer activity General ledger Dual effect of transactions is stated like debit credit.Firstly receiving of voucher then main sorting is done which is done on the basis of mainnumbering. 2 ) R E P O R T I N G A N D E X P E N S E : The major reports generated by this section are: Daily branch position Daily position of deposits and advances Daily MIS report (management information system) Daily foreign currency account report Daily fund rupee position report Statement of affairsWeekly reports are of foreign exchange and then monthly and quarterly reports aremade. Daily branch position of bank is not faxed and is kept with the bank. Daily foreigncurrency report is faxed to treasury. The bank deal in three foreign currencies that are: USdollar, EURO and GBP (stands for Great Britain Pound). Daily fund rupee position is faxed tothe state bank. Statement of affairs is not faxed. 3 ) B U D G E T A R Y P E R F O R M A N C E : This section includes the disbursements, which are as follows: Modes of remittances : Demand draft D.D Telegraphic transfer T.T Pay order slipThey are also called BPG bills payable general. Demand draft

is for outstation purpose .It secures the payment because at first, the cash isdeposited in the bank and then draft is made Demand draft is having four copies , which are kept as follow: 1. One is kept with the customer. ( Gray copy ) 2. One with bank (photo copy ) 3. One with the head office (pink ) 4. One with the entity being financed (yellow ) Pay order is for local transfer of money that is within the city.Two other ways of disbursement in the bank are 1. Pay slip 2. Cash payment voucher 1) Pay slip is used when the bank has to pay less then Rs.5000 2) Cash payment voucher is used by the bank when it has to pay more than Rs.5000.In the accounts section I came to know about some other terms like Provision Rupee travellers cheque Deposit certificate Inter branch credit advice Inter branch debit advice Outward bills for collection

Inward bills for collection Society for world wide transactions Term financeProvisions are the amount kept separately to be debited for the expenses of bank. Depositcertificates are being taxed as:S i m p l e d e p o s i t 3 % t a x S e r v i c e s d e p o s i t 5 % t a x ACCOUNT OPENING AT MEEZAN BANK These accounts at Meezan Bank are divided into three categories. These are as follows. 1. Business Account 2. Personal Account 3. Club Society Account 1 ) B u s i n e s s A c c o u n t This account is related to the business community. This account is also further subdivided intothree categories. a) Sole proprietor account b) Partnership account Limited c) Company account a ) S o l e p r o p r i e t o r a c c o u n t s These accounts are the account opened by businesses, which are owned by single persons. Thefollowing documents are required to open the account. Document required Introducer of account who is already account holder of the bank Copy of NIC Request on letterhead of the company Every signature must be stamped with company stamp Declaration of sole proprietorship b ) P a r t n e r s h i p a c c o u n t These are the accounts specifically opened for the partnership firms. The documents requiredfor this type of account are as follows. Document required:

Introducer of account who is already account holder of the bank Copy of NIC of the entire partners Request on letterhead of the firm Every signature must be stamped with company stamp Partner ship deed Partnership mandate c ) L i m i t e d c o m p a n y a c c o u n t s This account is related to limited companies either public limited or private limited.The documents required to open this type of account are as follows: Document required: Introducer of account who is already account holder of the bank Copy of NIC of all the Directors Request on letterhead of the company Copy of certificate of Incorporation Memorandum and Article of Association List of Director Copy of Board Resolution [prescribe format] Certificate of Commencement of Business. Latest copy of Form A & Form 29 Power of Attorney/Mandate [if required] 2 ) P e r s o n a l A c c o u n t The accounts related to persons other than companied and partnership firms arecalled personal accounts. These are further subdivided into three categories: a) Personal account b) Joint account a ) P e r s o n a l a c c o u n t :Personal account is own by only one person and not more then this. This account can be current or saving depending upon the will of the customer. Documents required: Introduction of nay account holder of BAL or any other bank Copy of NIC b ) J o i n t a c c o u n t : Joint accounts are those accounts that are owned by 2 or more persons. This accountmay also be either saving or current depending on the customers will. Documents required: Introduction of nay account holder of BAL or any other bank Copy of NIC of all the member of joint account 3 ) C l u b S o c i e t y A c c o u n t

The account opened by any NGO or any non-profit firm falls in this category. For opening of such type of account the bank has to get permission from the head office. If headoffice gives permission, the bank opens this account other wise refuse to do so. Documents required: Copy of rulesCertificate copy of resolution [prescribed format] Accounts On the Basis Of Currency This account is also divided into two categories. These are as follows: 1. Local Currency account 2. Foreign Currency Account1. Local Currency account: The account dealing with the local currency is called local currency account. 2.)Foreign Currency Account: The account dealing with the foreign currency is called foreign currency account. This account is further subdivided into following. USD GBP Euro JPY RUPEE CURRENT ACCOUNTRIBA FREE Meezan Bank is offering Riba-Free Current Account, a flexible Rupee based accountthat is ideal for individuals and businesses looking for Shariah compliant banking and professionalism both under one roof.The Meezan Bank Current Account is a comprehensive Halal method of acquiring asecure and easily maintainable Riba Free bank account.Bundled with 24/7 and special banking services, the Meezan Bank Current Account isan innovative value added account which provides customers both ease of utility andunmatched service quality. Key features of the Riba -Free Current Account Free Online Banking services at all Meezan Bank branches nationwide Instant access to funds at any online branch No restriction on withdrawals or number of transactions Bank balance certificates & duplicate statements of account Stop Payment & Hold Mail instructions

 24/7 Card your ATM & Debit Card in one 24/7 Call Center with complete Tele-banking services Personal financial consultancy services Specialized 8 to 8 Banking at selected branches RUPEE SAVING ACCOUNT A unique bank account that offers the opportunity to earn Halal profits, whileenjoying a range of added benefits. It can be opened with a minimum amount of onlyRs.10000. The profit on this account is calculated and paid on a monthly basis, and comes witha variety of free benefits, no restrictions on transactions, priority banking and more. Minimum amount required to open account = Rs.10,000 Riba Free COII Holders may open accounts without any minimum b a l a n c e requirementsRiba Free Rupee Saving Account works under the principles of Mudarabah and is strictlyin conformity with the rules of Islamic Shariah. Profit calculation and all banking transactionsare in strict adherence to the Islamic Shariah, monitored by our Shariah Advisor and theShariah Supervisory Board. Key features Apart from first class service and personalized attention that our customers get whenthey bank with us, we offer the following additional conveniences: Instant access to funds at any online branch. Free Online Banking services at all Meezan Bank branches nationwide No restriction on withdrawals or number of transactions Bank balance certificates & duplicate statements of account Stop Payment & Hold Mail instructions 24/7 Card your ATM & Debit Card in one 24/7 Call Center with complete Tele-banking services Personal financial consultancy services Specialized 8 to 8 Banking at selected branches DOLLAR SAVING ACCOUNT

Meezan Bank is pleased to offer Riba-Free Dollar Saving Account, a foreigncurrency based investment opportunity that is set up on the principles of Shariah and as a result is freefrom the element of markup. With a minimum of only $100 a Dollar Saving Account c a n b e o p e n e d u n d e r a Mudarabah arrangement that is strictly in conformity with the principles of IslamicShariah. The return earned on the Mudarabah pool is calculated every month and the profit ratio for all investors is declared at the beginning of the month. On maintaining aminimum average monthly balance of $ 500, profits are disbursed every month. Additional Features Apart from first class service and personalized attention, the following additionalconveniences are also provided: Personalized cheque books No restriction on withdrawals or number of transactions. 24/7 Call Center with complete Tele-banking services Monthly profit payment Taking stop payment instructions Taking hold mail instructions Issuance of duplicate statement of account Personal financial consultancy services KAROBARY MUNAFA ACCOUNT Karobari Munafa is a savings account specifically tailored for large Corporate or Govt.controlled entities. It allows customers to earn higher returns on surplus cash balances. It hasno preset transaction limits and comes with a variety of free packaged benefits. Key Features Profit will be calculated on a Daily Product Basis Minimum balance requirement for account opening is Rs. 1 Million No restriction on deposits and withdrawals Free facilities: chequebooks and payordersDedicated account / relationship manager The Karobari Munafa Account works under the principles of Mudarabah and is strictly inconformity with the rules of Islamic Shariah. Profit calculation and all banking transactionsare in strict adherence to the Islamic Shariah, monitored by our Shariah Advisor and the Shariah Supervisory Board.

MEEZAN BACHAT ACCOUNT Meezan Bachat Account is a unique saving account that provides high monthlyreturns with the flexibility to withdraw savings if needed. Thus Meezan Bachat Accountoffers a higher expected rate of return with the convenience of a savings account.With a Meezan Bachat Account, higher the profit with a higher account balance.Profit is given even if balance falls below Rs. 25,000/- in any one month. Profit is credited toaccount every month and is calculated with reference to the minimum balance maintained inthe account during the preceding month.The Riba-Free Meezan Bachat Account works under the principles of Mudarabah andis strictly in conformity with the rules of Islamic Shariah. Profit calculation and all bankingtransactions are in strict adherence to the Islamic Shariah, monitored by Shariah Advisor andthe Shariah Supervisory Board. Key Features Highest expected rate of return Riba-free profit paid every month Minimum balance for account opening is just Rs.25,000/ Maximum balance limit for getting highest profit rate is Rs. 1,000,000/ Waiver of application fee for Car Ijarah & Easy Home for accounts w i t h minimum balance of Rs. 500,000 Free Online Banking services at all Meezan Bank branches nationwide Free bank balance certificates. 24/7 Card your ATM & Debit Card in one 24/7 Call Center with complete Tele-banking services 24/7 Internet Banking free and instant access to your account(s) anytime & Anywhere Personal financial consultancy services Specialized 8 to 8 Banking at selected branches CERTIFICATE OF ISLAMIC INVESTMENT The Riba Free Certificate of Islamic Investment Certificate is a Shariah compatibleinvestment certificate with a minimum investment of Rs. 50,000 and tenures from 3months to 5 years. Profit on investment may be earned on the following basis: Monthly profit on 1, 2, 3 and 5 years (Minimum Investment Rs. 200,000)

 Quarterly profit on 1, 2, 3 and 5 years At maturity profit payment for all tenures Withdraw investment any time during the course of investment. (Profit shall be paidonly after completion of one month of investment)Riba-Free Certificate of Islamic Investment (COII) works under the principles of Mudarabah and is strictly in conformity with the rules of Islamic Shariah. Profit calculationand all banking transactions are in strict adherence to the Islamic Shariah, monitored byShariah Advisor and the Shariah Supervisory Board. Invest in Certificate of Islamic Investment Riba-Free COII is available at all branches of Meezan Bank Ltd. To make aninvestment the bank requires customers to maintain either a current or a saving account withMeezan Bank. In order to open an account, fill in the Account Opening Form, bring in therequired documents, and get introduced by an existing banker. Additional Features Enjoy a range of valuable features including: High and very competitive returns Long-term security ensured Pre-mature withdrawal options available Free Online Banking services at any of our branches 24/7 Call Center with complete Tele-banking services Specialized 8 to 8 Banking at selected branches MEEZAN AMDAN CERTIFICATE The Riba-Free Meezan Aamdan Certificate (MAC) is a long-term deposit certificatewith an exceptionally high monthly profit designed especially for those individuals andcorporations who are in need of regular stream of monthly income. MAC is a monthly income(mahana aamdani) certificate with a variety of free packaged benefits.Working under the principles of Mudarabah, the Meezan Aamdan Certificate and isstrictly in conformity with the rules of Islamic Shariah. Profit calculation and all bankingtransactions are in strict adherence to the Islamic Shariah, monitored by Shariah Advisor andthe Shariah Supervisory Board. Key Features Enjoy a range of valuable features including: High and very competitive returns Ensured Long-term security

 Minimum investment amount: Rs. 100,000/ Special attraction for Widows and Senior citizens with minimum investment of PKR 50,000/ Available tenures of 5 years and 7 years Profit payment on monthly basis Pre-mature withdrawal options available. Free cheque book Free ATM withdrawals on investment of Rs.500,000/- and above ( 5 per month) Free Online Banking services at all Meezan Bank branches nationwide Free Internet banking facility 24/7 Call Center with complete Tele-banking services Specialized 8 to 8 Banking at selected branches MONTHLY MUDARBA CERTIFICATE Riba Free Monthly Mudarabah Certificates is a flexible rupee based investmentwhich has been designed to give a monthly return. The minimum investment required isonly Rs. 100,000 and receive profit for each complete month of investment with the Bank Working under the principles of Mudarabah and in strict conformity with the rules of Islamic Shariah, the Profit calculation of Monthly Mudarabah Certificates and all other banking transactions are in strict adherence to the Islamic Shariah, monitored by ShariahAdvisor and the Shariah Supervisory Board. The weightings used for profit calculation of the Monthly Mudarabah Certificate arein the following tiers: Rs. 100K up to Rs. 4.99 MnRs. 5.00 Mn up to Rs. 9.99 MnRs. 10 Mn up to Rs. 49.99 MnRs. 50 Mn up to Rs. 99.99 MnRs. 100 Mn up to Rs. 499.99 MnRs. 500 Mn & above Additional Features During relationship the following additional benefits are also provided: A 100% halal investment in strict compliance with Shariah Monthly profit payment to your current or saving account with us Pre-mature withdrawal options available Bank balance certificates Free Online Banking services at all Meezan Bank branches

24/7 Call Center with complete Tele-banking services Personal financial consultancy services Specialized 8 to 8 Banking and Ladies Banking at selected branches MEEZAN PROVIDENCE CERTIFICATE Meezan Providence Certificate is a long-term investment certificate specially designedto cater to the needs of corporate and business concerns for purposes of investing their Provident, Pension and Gratuity Funds As any prudent investor, main concerns would be total security along with the bestreturns possible, especially as these funds are a trust from employees and one that bears animportant responsibility.Meezan Providence rests on the well known and solid financial strength of MeezanB a n k , w h i c h h a s a s t r o n g a n d c r e d i b l e b a l a n c e s h e e t w i t h e x c e l l e n t o p e r a t i n g profitability, including a capital adequacy ratio that has placed the Bank at the top of theindustry, a long-term entity rating of A+, and a short-term entity rating of A1. Furthermore,our sterling track record shows consistently beneficial and highly competitive returns for broadrange of investors.Finally, comes the benefit of truly Halal returns, a benefit may not have had theopportunity to enjoy before and one that can now pass on to employees, many of whomwould be grateful for such an opportunity.Riba-Free Meezan Providence Certificate (MPC) works under the works under the principles of Mudarabah and is strictly in conformity with the rules of Islamic Shariah. Profitcalculation and all banking transactions are in strict adherence to the Islamic Shariah,monitored by Shariah Advisor and the Shariah Supervisory Board. Key Features Enjoy a range of valuable features including: A 100% halal investment in strict compliance with Shariah High Returns Long-term security ensured Minimum investment amount: PKR 1,000,000 Available tenures of 2, 3, 5 and 7 years Pre-mature withdrawal options available DOLLAR MUDARABAH CERTIFICATE The Riba Free Dollar Mudarabah Certificate is a flexible dollar based investment which has been designed under the principles of Mudarabah and is strictly in conformitywith the rules of Islamic Shariah.The Certificate works under the principles of

Mudarabah and is strictly inconformity with the rules of Islamic Shariah. Profit calculation and all banking transactions arein strict adherence to the Islamic Shariah, monitored by Shariah Advisor and the ShariahSupervisory Board. Key Features Enjoy a range of valuable features including: High and very competitive returns Six monthly profit payments to your current or saving account with us Long-term security ensured. Minimum investment amount: USD 10,000/ Available tenures of 3 months, 6 months, 1 year, and 3 years Pre-mature withdrawal options available Bank balance certificates 24/7 Call Center with complete Tele-banking services Personal financial consultancy services CAR IJARAH-AUTO FINANCE Car Ijarah, Pakistans First Islamic Car Financing As a step towards Meezan Banks mission to provide a one-stop shop for innovative value added Shariah compliant products, Meezan Banks Car Ijarah unit provides acar financing, based on the principles of Ijarah and is free of the element of markup.Car Ijarah is Pakistans first Markup Free car financing based on the Islamic financingmode of Ijarah (Islamic leasing). This product is ideal for individuals looking for car financingwhile avoiding a markup-based transaction.Meezan Bank Car Ijarah is a car rental agreement, under which the Bank purchases the car and rents it out to the customer for a period of 3 to 5 years, agreed at the time of thecontract. Upon completion of the lease period the customer gets ownership of the car againsthis initial security deposit. Car Ijarah also features Used Vehicles! In addition to leasing of new cars, Meezan Bank also provides the unique opportunityof leasing second hand, both locally assembled and imported vehicles. This feature isspecifically designed as a highly economical option. The Used Car Ijarah facility is madeavailable at a minimum-security deposit as low as 20%. Financing of used cars aresubject to a selection criteria. Shariah Compliance Car Ijarah, designed under the supervision of Meezan Banks Shariah SupervisoryBoard, is unique to car leasing facilities provided by other banks. Key Features of Car Ijarah Low monthly rental

 Rental paid after delivery, not in advanced Fastest processing and delivery Tracker option available Minimum security deposit as low as 10% All new, used, local, imported and luxury vehicles can be financed which has been designed under the principles of Mudarabah and is strictly in conformitywith the rules of Islamic Shariah.The Certificate works under the principles of Mudarabah and is strictly inconformity with the rules of Islamic Shariah. Profit calculation and all banking transactions arein strict adherence to the Islamic Shariah, monitored by Shariah Advisor and the ShariahSupervisory Board. Key Features Enjoy a range of valuable features including: High and very competitive returns Six monthly profit payments to your current or saving account with us Long-term security ensured. Minimum investment amount: USD 10,000/ Available tenures of 3 months, 6 months, 1 year, and 3 years Pre-mature withdrawal options available Bank balance certificates 24/7 Call Center with complete Tele-banking services Personal financial consultancy services CAR IJARAH-AUTO FINANCE Car Ijarah, Pakistans First Islamic Car Financing As a step towards Meezan Banks mission to provide a one-stop shop for innovative value added Shariah compliant products, Meezan Banks Car Ijarah unit provides acar financing, based on the principles of Ijarah and is free of the element of markup.Car Ijarah is Pakistans first Markup Free car financing based on the Islamic financingmode of Ijarah (Islamic leasing). This product is ideal for individuals looking for car financingwhile avoiding a markup-based transaction.Meezan Bank Car Ijarah is a car rental agreement, under which the Bank purchases 20

the car and rents it out to the customer for a period of 3 to 5 years, agreed at the time of thecontract. Upon completion of the lease period the customer gets ownership of the car againsthis initial security deposit. Car Ijarah also features Used Vehicles! In addition to leasing of new cars, Meezan Bank also provides the unique opportunityof leasing second hand, both locally assembled and imported vehicles. This feature isspecifically designed as a highly economical option. The Used Car Ijarah facility is madeavailable at a minimum-security deposit as low as 20%. Financing of used cars aresubject to a selection criteria. Shariah Compliance Car Ijarah, designed under the supervision of Meezan Banks Shariah SupervisoryBoard, is unique to car leasing facilities provided by other banks. Key Features of Car Ijarah Low monthly rental Rental paid after delivery, not in advanced Fastest processing and delivery Tracker option available Minimum security deposit as low as 10% All new, used, local, imported and luxury vehicles can be financed 21 WORKING CAPITAL FINANCE Working Capital Finance Solutions(For short term financing requirements) Parts of the wide range of Shariah complaint solutions for the customers areMurabaha and Istisnaa, designed to meet working capital requirements. For example, if youneed finance for purchasing raw materials for your industry or are trading in goods then youcould use Mudarabah or Istisnaa to meet your financial needs. Murabaha One of the most common modes of finance employed by Islamic Banks, Murabaha is based on the exact requirements of each customer. It can be defined as a sales transactionwhere Meezan Bank purchases the commodity and sells it after adding an agreed profit. Thus,it is not a loan given on markup - it the sale of a commodity on a deferred price.Hence Murabaha involves the purchase of a commodity by Meezan Bank on behalf of a customer and the subsequent resale to the customer on cost-plusprofit basis. The costand profit margin to the bank is expressly disclosed to the customer.Simply put, rather than advancing money to the customer, Meezan Bank buys thecommodity from a third party and sells it to the customer at an agreed price, which includes anelement of profit. So what is the difference between Murabaha and a Sale?

A simple sale in Arabic is called Musawamah - a sale that does not involve disclosingor referring to the cost of goods sold. However, when the cost price is disclosed to the client, itis called Murabaha. 22