Internship Report

On

Meezan Bank Limited

Supervisor : Miss. Lyba Shaheen

Presented By : Adnan Ijaz

Roll No. : F15-1358

Submitted in partial fulfillment of the requirements

For the degree of

BBA(HONS)

at

Lahore Leads University

Lahore, Pakistan
 Lahore Leads University

It is here by certified that the report has been thoroughly and carefully read and
Recommended to the Lead Business School for acceptance of Final Internship Report by
ADNAN IJAZ s/o MUHAMMAD IJAZ Roll No. F.15-1358 Session (2015 to 2019),
Morning, in partial fulfillment of the requirements for the degree of BBA (HONS) of
Lahore Leads University Lahore.

Dated:

Supervisor Name ____________________________

Supervisor Signature __________________________

Panel Member Name__________________________

Panel Member Signature_________________________

Head of Department Name _______________________

Head of Department Signature______________________

 Letter of Transmittal

Head of Department of Business Administration

Lahore Leads University,

Lahore.

Dear Sir,

It is presented to you, the internship report which is executed at MEEZAN BANK LIMITED,
Pakistan as required by the university as a degree requirement for BBA (HONS) program. This
report has been prepared in accordance with the guidelines issued by the department. It is the result
of my first professional experience. The report is practical application of whatever I have studied as a
student BBA (HONS) in Lahore Leads University. In this report, I have covered the introduction of
the organization, detail of my working and learning in the Finance Department, impact of internship
on career in future. I worked on different assignments given to me. I feel that this experience would
be great help in future.

Sincerely,

Adnan Ijaz

F15-1358
 Acknowledgment

All praise is due to Allah, the lord and cherisher of the university. May his peace and blessings be
upon prophet Muhammad (PBUH), his household, companions and all followers of the right
Guidance till the Day of Judgment. First of all I am thankful to ALLAH Almighty who has created
me, gave me the power to understand and the power to gain knowledge. Without His kind guidance I
would have not been able to complete any task given to me. I am great full for the guidance which
has been allotted to me from Allah Almighty to understand and gain knowledge.

Allah, the Exalted, says: " Say: Are those who know equal to those who know not? It is only men of
understanding who will remember."

I give honor and privilege to my respected resource person who helped me in thinking in the right
direction by giving me this challenging task.

I would also like to thank my family, who added a boost to my confidence, and are always praying
for my success.

In particular, I would like to thank my respected teacher Miss lyba shaheen, who always provided me
a great confidence to take any task of my internship as challenge,

Meezan bank limited itself provided me great espouser and guidance to fulfill my internship.

I am very thank to the Mr. Raheel Yaqub (Branch Manger) and his team especially to Mr.
Ahsan officer who provided me every kind of help during internship and in preparing this
report.
ABSTRACT

This report is specially meant for a student of Commerce. It is concerned to a brief study of the
operations, functions, Products and Services of Meezan Bank.
Meezan Bank is the largest Islamic Banking Network of Pakistan. Islamic banking one of the fastest
growing segments of the financial industry. Banks serving the Islamic population must comply with
several very specific principles of Islamic law if they hope to retain existing customers and attract
new ones. Banks must be ready with specialized products and services and they must put programs
in place to train their personnel to support these products and services in order to exist in this
competitive marketplace.

This Report contains detail of MBL Management structure, Operations, products, Services and
Functions along with their features.
Executive Summary
Pakistan after getting its independence, did not inherit a strong banking industry and since then saw
several events in the industry, like the nationalization of banks in the 1970’s. However today, the
banking industry of Pakistan has been growing over the past few years, mainly because of the
consistent policies implemented by the Government of Pakistan, including the privatization of banks
in Pakistan. Also, the State Bank of Pakistan’s, monetary policy has been very friendly toward the
banking industry. There are number of different banks established in Pakistan, including local
incorporated commercial banks, foreign incorporated commercial banks, development financial
institutions, investment banks, discount & guarantee houses, housing finance companies, venture
capital companies, micro finance banks and Islamic banks. Meezan Bank, Pakistan’s first and largest
Islamic bank, is a publicly listed company with a paid-up capital of Rs.10 billion. It is one of the
fastest growing financial institutions in the banking sector of the country. With its Vision of
establishing ‘Islamic banking as banking of first choice’ – the Bank commenced operations in 2002,
after being issued the first-ever Islamic commercial banking license by the State Bank of Pakistan.
Meezan Bank is publicly listed company, first incorporated on January 27, 1997. It started operations
as an Islamic investment bank in August of the same year, which has been licensed by the“ State
Bank of Pakistan” to operate as an Islamic Commercial bank on 31st January 2002. State Bank of
Pakistan granted the Nations first full-fledged commercial banking license of Islamic Banking to
Meezan bank Ltd. It was a new era in banking Sector history in Pakistan that Meezan Bank Ltd
adheres strictly to the principles of Islamic Shariah with absolutely no compromise, and is
recognized as Pakistan’s truly premier Islamic Bank.

Meezan Bank has continued its growth momentum and recorded good results for the half year ended
June 30, 2017. Profit before tax increased to Rs 5,408 million from Rs 4,433 million in
corresponding period last year reflecting a growth of 22%, while profit after tax increased by 18% in
the same period due to extended applicability of Super Tax. The Earnings per Share (EPS) of the
Bank stood at Rs 3.15 for the half year ended on June 30, 2017. The Bank maintained its position as
the leading Islamic bank in Pakistan with a branch network of 571 branches in 146 cities. Total
deposits of the Bank reached Rs 593 billion, registering a 5% growth over last year and its Advances
to Deposits Ratio was 57% compared to 45% in June 2016. The trade business volume handled by
the Bank grew by 36% to Rs 327 billion while Fee and Commission income grew by 63% over the
corresponding period last year.
Table of Contents
Chapter No. 1 Introduction

1.1. Vision and Mission Statements & Service Mission………...........................................1

1.2. Introduction of Banking…………………………………………………………….....2
1.3. Introduction of Islamic Banking………………………………………………..……...4
1.4. Establishment of Islamic banking according the State bank of Pakistan.......................5
1.5. Overview of Meezan Bank Limited…………………………………………………...6

Chapter No. 2 Business Operation

2.1. Product & services………………………………………………………………........10

2.2. Product Lines………………………………………………………………………....15
2.3. Shariah Supervisory Board Meezan Bank…………………………………………....16
2.4. The Board Of Directors Of Meezan Bank…………………………………………...16
2.5. The Business Segments Of The Bank ……………………………………………….17
2.6. Competitors…………………………………………………………………………..17
2.7. Introduction of All departments……………………………………………………...18
2.8. Future Prospects of MBL……………………………………………………………19

Chapter No. 3 Business Analysis

3.1. SWOT Analysis…………………………………………………………………........20

3.2. PEST Analysis………….…………………………………………………………….21
3.3. Competitive Advantages……………………………………………………………...23
3.4. Financial Statement of MBL…...……………………………………………………..24
3.5. Income Statement…………………………...………………………………………..26
3.6. Performance of Organization ……………..………………………………………….27
3.7. Ratio Analysis……………………………..………………………………………….29
Chapter No. 4 Learning as a Student

4.1. Introduction of
Branch…………………………………………………………………32
4.2. Internship
Program………………………………………………………………..........32
4.3. Experience and Training Program in
Departments…………………………………….32
4.4. Weekly
Report………………………………………………………………………….36

Chapter No. 5 Conclusion

5.1. Conclusion……………………………...
…………………………………....................42
5.2. Recommendations………………...
……………………………………………………42
5.3. References…………………………………………………………………………...
…43
Chapter No.1
Introduction

1.1. Vision & Mission & Objective & Values Statements of Meezan
Bank
1.1.1. 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.
1.1.2. Mission
To be a premier Islamic bank, offering a one-stop shop for innovative value added products and
services to our customers within the bounds of Shariah, while optimizing the stakeholders value
through an organizational culture based on learning, fairness, respect for individual enterprise and
performance.
1.1.3. Objectives
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.
1.1.4. Values
Shariah compliance, Integrity, Professionalism, Innovation, Service Excellence, Social
Responsibility. Staff that is committed, motivated and professionally trained and who are empathic
to their customers’ needs.

1.2. Introduction Of Banking

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History of Banking in Pakistan starts from the partition of Indo-Pakistan sub continent in August,
1947. At that time, the areas consisting Pakistan had 631 offices of 45 scheduled banks out of which
487 were located in West Pakistan and 114 in East Pakistan which was also served by 500 offices of
small and non-scheduled banks. There were 19 branches of foreign banks in Pakistan but they had a
very limited role to play. Just after the partition, the Indian bankers started immigrating and shifting
the head offices of their banks and capital to India. It caused a great set back to the banking field in
Pakistan, and resulted in decline in the number of offices in schedule bank from 631 to 195 by 30th
June, 1948. The West Pakistan the number fell from 487 to 81 in East Pakistan from 144 to 69 by
30th June, 1951. Among these Habib Bank Ltd., with 25 offices and Australia Bank Ltd. with 19
offices were institutions run by Muslims who shifted their head offices to Pakistan. The technical and
administrative difficulties of establishing a central bank just after independence compelled Pakistan
to enter into an agreement with the Reserve Bank of India by which the bank was to perform the
function of a central bank in this area also up to 30th September, 1948. The Reserve Bank of India
started following wrong policies against the interest of Pakistan. The situation became so grave that
after the consultation of two governments the Reserve Bank of India was asked to finish the
agreement from 30th June instead of from 30th September, 1948. So the Government of Pakistan
decided to establish the State Bank of Pakistan as its central bank from 1st July, 1948. In the same
year first Pakistani notes in the denomination of Rs.5, 10, and 100 were issued and Indian currency
was withdrawn from circulation. After it the government was advised to a bank which should serve
as a agent of State Bank of Pakistan. On this suggestion National Bank of Pakistan which was
established in 1949 to finance jute trade in East Pakistan to take over the agency functions from the
Imperial Bank of India. Furthermore banking companies control act 1949 was promulgated which
empowered the State Bank of Pakistan to control the operation of other banks. To boost the
economic development the State Bank of Pakistan encourage the commercial banks and gave them
schemes to advance in the agricultural and industrial fields. In addition to this specialize financial.
Institutions were set up to meet the acute shortage of funds in these fields. The State Bank of
Pakistan's policy encouraged expansion in established banks, establishment of new banks, and
weeding out of unsound banks just to faster the growth of banking system in the country. This policy
not only established the banking system by 1965 but increased its functional efficiency, scope of
operations and soundness to a great extent and the following banking structure emerged: 

2
1. State Bank Of Pakistan (Central Bank)
2. Cooperative Banks
3. Saving Banks
4. Specialized Financial Institutions
5. Commercial Banks.
5.1. Scheduled
5.2. Non-scheduled banks
According to the State Bank of Pakistan Act,1956 a bank having a paid up capital and a reserve of
rupees five lac and fulfilling certain other requirements can be scheduled with the State Bank of
Pakistan. With the opening of the State Bank of Pakistan and the keen interest which it took in the
establishment of the sound banking system in Pakistan despite the separation of the East Pakistan,
commercial banking made a tremendous progress which can be judged from the following figures.
Offices of the following 14 banks (scheduled) increased from 195 to 1948 to 3600 with 71 branches
outside Pakistan in 1972, deposits from 88 Crores in 1948 to 1900 crores in 1972 and advances from
20 crores in 1948 to 1250 crores in 1972. 

 National Bank of Pakistan Habib Bank Ltd.

 United Bank Ltd.
 Muslim Commercial Bank Ltd.
 Standard Bank Ltd.
 Bank of Bahawalpur Ltd. 
 Premier Bank Ltd. 
 Pak Bank Ltd. 

On January 1, 1974 the Government of Pakistan nationalize all the Pakistani scheduled banks
including State Bank of Pakistan, industrial Bank of Pakistan, Agricultural Development Bank of
Pakistan through the bunk- nationalization act, 1974 to achieve the desired objectives. The weaker
commercial banks were merged with stronger ones and in all five major banking companies were
formed.
 National Bank Of Pakistan 
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  Habib Bank Limited 
 United Bank Limited 
 Muslim Commercial Bank Limited 
 Allied Bank Of Pakistan 

The Federal Government also set up a Pakistan Banking Council on March 21, 1974 to look after the
organizational and operational matters including evaluation and progress of the nationalized
commercial banks. The State Bank was to provide the overall policy guidelines to commercial banks.

1.3. History Of Islamic Banking

Al-Meezan Investment Management Limited (AMIM) was established in 1995 as a joint venture
between Pakistan Kuwait Investment Company (PKIC), National Investment (Trust) Limited, and
Jardine Fleming Investment Management International Limited (Jardine Fleming). AMIM has over
the years benefited immensely from domestic investment management expertise of PKIC and
National Investment (Trust) Limited and international expertise of Jardine Fleming. Jardine Fleming
made a substantial contribution towards the development of systems and procedures for AMIM
during its six years of association with the company. The key investment professionals of Jardine
Fleming, Hong Kong who served as Directors of AMIM for these six years, contributed to the
development of strategic plans and investment policies of the company.

1.3.1. The Holy Quran

"We must work our destiny in our own way and present to the works an economic system based on
true Islamic concept of equality of manhood and social justice "Quaid's concept of Islamic Banking
[Opening Ceremony of The State Bank of Pakistan on July 1, 1948]

1.4. Establishment of Islamic Bank As Per To The

Requirements of State Bank Of Pakistan

Recently, State Bank of Pakistan has allowed the formation of full-fledged Islamic banks in the
private sector.  The existing scheduled commercial banks were also authorized to open subsidiaries
for Islamic banking operations.  Such subsidiaries shall be considered as the Islamic Banking
4
Subsidiaries and shall have a separate body of governance.  It is a statutory requirement for the bank
to appoint a Shariah Adviser / Shariah Supervisory Committee consisting of Shariah scholars of
repute to advise the Islamic bank on matters pertaining to Shariah. Shariah Adviser / Committee will
be responsible to vet all agreements, and products offered by the Islamic bank.  The detailed criteria
for setting up Islamic Banking Subsidiaries have been issued by the State Bank, which are
highlighted as below:

1. The proposed subsidiary shall be a Public Limited Company and shall be listed on the Stock
Exchange;
2. The banking subsidiary (Islamic) are required to conduct the banking activities strictly in
accordance with the Shariah principles;
3. To commence the business, the subsidiary shall have a minimum paid up capital of Rs. 1 billion;
and
4. At least 51% of the total paid up capital shall be subscribed by the (parent) banking company,
and a maximum of 49% of shares shall be offered to public.
1.4.1. Islamic Banking Division 

The bank shall be required to set up an Islamic Banking Division (IBD) at the head office / country
office in Pakistan.  The bank is also required to prepare a full detail of the organizational structure of
the IBD and submit to State Bank.  The responsibilities of IBD are as follows:

1. To manage and be responsible for the operations of Islamic Banking Branch (IBB) including
policy and procedural matters;
2. To liaise with other departments in the bank and the Shariah Adviser / Committee to ensure
smooth operations of IBB;
3. To arrange training of staff on Islamic banking;
4. To arrange for compilation and submission of such returns, as may be required to be submitted to
State Bank from time to time;
5. To ensure that all directives and guidelines, particularly those applicable to Islamic banking,
issued by State Bank are strictly complied with;
6. Other roles and responsibilities as determined by the bank or State Bank from time to time.
5
1.4.2. Islamic Financial Accounting Standard

Recently the Institute of Chartered Accountants of Pakistan (ICAP) has issued the first Islamic
Financial Accounting Standard (IFAS) 1 -Murabaha.  The purpose of this Standard is to provide
guidance for the transactions regarding Murabaha.  Murabaha is a particular kind of sale where seller
expressly mentions the cost he has incurred on the commodities to be sold and sells it to another
person by adding some profit or mark up thereon which is known to the buyer. Thus, Murabaha is a
cost plus transaction where the seller expressly mentions the cost of a commodity sold and sells it to
another person by adding mutually agreed profit thereon which can be either in lump-sum or through
an agreed ratio of profit to be charged over the cost, thus resulting in an absolute price. 

1.5. Overview Of Meezan Bank Limited

1.5.1. 1997
Al-Meezan Investment Bank was established with a mandate to pursue Islamic Banking. Mr. Irfan
Siddiqui was appointed as first founding Chief Executive Officer.

1.5.2. 1999
The shariat Appellate Bench of the Supreme Court of Pakistan rejects appeals and direct all laws on
interest banking to cease. The government sets up a high level commission, task force and
committees to institute and promote Islamic banking on parallel basis with conventional system.
1.5.3. 2001
The shariah Supervisory Board is establish at Al-Meezan Investment Bank led by justice (Retd.)
Muhammad TaqiUsmani as chairman. State Bank of Pakistan sets Criteria for establishment of
Islamic commercial banks to conduct Islamic banking in the country.
1.5.4. 2002
Meezan Bank acquires the Pakistan operations of SocieteGenerale and concurrently Al-Meezan
Investment Bank converts itself into a full fledged Islamic commercial bank. The first Islamic
banking license is issued to bank and it is renamed Meezan Bank. President General Pervez
Musharraf inaugurates the new Islamic Commercial Bank at a formal ceremony in Karachi.

6
1.5.5. 2004
The State Bank establishes a dedicated Islamic Banking Department (IBD) by merging the Islamic
Economic Division of the Research Department with the Islamic Banking Division of banking policy
Department. A shariah Board has been appointed 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 success and establishes a benchmark for
Pakistan Meezan Bank acts as the Shariah structuring Advisor for the historic transaction.
1.5.6. 2005
Meezan Bank becomes the first customer of Islamic Insurance (Takaful) by signing the first
Memorandum of understanding MoU with Pak-Kawait Takaful Bank Limited (PKTCL). The signing
of this MoU has ushered Pakistan into a new era of Islamic insurance (Takaful)
1.5.7. 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 it branch network to a total of 62 branches in 21 cities, clearly establishing itself as a
largest Islamic Bank of country. Meezan Bank becomes the first Islamic bank to introduced 8 am to
8 pm banking selected branches in Karachi.
1.5.8. 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.

1.5.9. 2008
Meezan bank introduced Tijarah financing to allow customers to raise funds news for financing of
stock of finished goods. Meezan Bank was awarded ‘Best Islamic Bank in Pakistan’ by Islamic
financing new of RED money Group. Malaysia and ‘Best Islamic Financing Institution on Pakistan’
by Global financing Magazine, New York.
1.5.10. 2009

7
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. 100
billion of import/export business.

1.5.11. 2010
Meezan Bank developed a number of new Deposit products to cater the unique needs of different
market segments. Among the products launched during this year were Meezan business plus, a
Mudaraba-based account that offer an array of free service for businesses, Meezan Euro saving
Account and Meezan Pound saving Account. Meezan Bank’s Car ijarah completed its 9 th 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.

1.5.12. 2011
The inauguration of the new Head office in Karachi. During the year, 53 branches were opened to
reach a landmark of 275 branches in 83 cities across Pakistan.

1.5.13. 2013

Over 350 branches in over 100 cities

On 18 October 2014, the Bank acquired the HSBC Pakistan operations. After conversion of the
business and branches of HSBC Pakistan to Meezan Bank; the HSBC Pakistan Accounts and Term
Deposit Receipts (TDRs) converted to Meezan Bank accounts and Certificates of Islamic
Investments (COIIs).

1.5.14. 2014

Meezan bank reaches a branch network of 428 branches in 117 cities. The bank acquired Pakistan
operations of HSBC mobile banking application launched.

8
Chapter No. 2
Business Operation

2.1. Products & Services:

Following are the main products and services which are provided by the Meezan bank.

2.1.1. Bank Accounts

There are different types of accounts which fall under this category.

2.1.2. Current Accounts

You can open four different types of current account with us in both local and foreign currency.

2.1.3. Rupee Account

Meezan Current Account is a Rupee-based current account that provides you the convenience of
putting your money in a Riba-free account and accessing it without any restrictions on withdrawal
while enjoying a host of professional conveniences from Meezan Bank. This account allows you the
peace of mind of having your money safely deposited with a bank with the additional assurance that
the Bank is not investing your money in activities that contravene Shariah principles. Meezan
Current Account can be opened by Individuals, Sole-Proprietorships, Partnerships and Limited
Companies.

It has the following key features,

1. Minimum investment for account opening is PKR 1000/-

2. Provide online branch banking facilities.
3. Avail completely free internet banking.
4. No Restrictions on withdrawal or transaction.
5. Provide Free Takaful Coverage.

2.1.4. Dollar Current Account

9
Dollar account is based on Qard contract where bank is liable to pay your money back on demand.
The bank can use these funds for investment purposes. This Account allows you the peace of mind of
having your money safely investing your money in activities that contravene Shariah Principles. It is
therefore an excellent business tool. It has the following key features,

1. Minimum deposit requires to open an account is $100.

2. Routine withdrawals up to $500 per day allowed without prior intimation.
3. Withdrawals of above $500 needs 1 day prior notice
4. Receive Foreign Remittances.
5. Free Takaful Coverage up to Rs. 1 million in case of an Accidental Death and Permanent
Disability.
6. No deduction of service charges if the balance maintained is low.
2.1.5. Saving Accounts (truly halal Savings)

You can open following different types of savings accounts with us, both in local and foreign
currency.

2.1.6. Rupee Saving Account

The Riba-free Rupee Saving Account is a basic banking account for every customer's need. The
account provides expected monthly returns along with a variety of free packaged benefits. On
agreeing to become a Rupee Saving Account holder, the customer enters into a relationship based on
Mudaraba with Meezan Bank. Under this relationship, the customer is an Investor (Rab-ul-Maal)
The Bank allocates the funds received from the customers to a deposit pool; funds from the pool are
utilized to provide financing to customers under Islamic modes. Meezan Rupee Saving Account can
be opened by Individuals, Sole-Proprietorships, Partnerships and Limited Companies. Bank will
share the 50% of gross income as Mudarib, depositor will share the 50% of gross income as Rab-ul-
Maal.

2.1.7. Dollar Saving account

10
The Riba-free Dollar Savings Account is a Mudarabah-based savings account that you can open
and operate using US Dollars and is therefore an excellent business tool for both individuals and
corporate clients for meeting their business needs and for diversifying their investment in different
foreign currencies to safeguard against currency fluctuations. Meezan Dollar Savings Account can be
opened by Individuals and businesses including Sole Proprietorships, Partnerships and Limited
Companies.

1. Special Saving Account (For you diverse saving needs):

2. We offer four unique types of special savings accounts to suit your various requirements:
2.1.8. Meezan Bachat Account

Meezan Bachat Account can be opened by Salaried or Self-employed, Housewives and Retired
individuals. It has the following key features:

1. Minimum deposit required to open an account is Rs. 50,000/-.

2. Free Internet Banking facility.
3. Profit payment is made to your Meezan Bank account monthly.
4. Profit will be calculated on the Daily Product Basis.
5. Profit will be calculated on the Daily Product Basis.

Meezan Bachat Account is a unique saving account that provides high expected monthly returns with
the flexibility to withdraw savings if needed. Meezan Bachat Account offers a higher expected rate
of return with nearly the same convenience and service of a regular savings account.

2.1.9. Kids Club Account

Are you still not 12 years old? Then Meezan Bank has something very special for you; a chance of
having your own Mudarabah-based Meezan Kids Club Account. You can now put all your pocket
money, Eidi and all your other cash in this account, where it will be safe and invested in line with
Islamic principles. It has the following key features:

1. Open your account with Rs 500/- only.

2. Specifically, for kids under the age of 12 years
3. Exciting gifts on account opening.

11
 4. Exciting gifts on account opening.
2.1.10. Meezan Asaan Accounts (Banking at its simplest)

You can open two types of Asaan account:

2.1.10.1. Asaan Current

The Riba-free Meezan Asaan Current Account is another addition to the offerings of Meezan bank.
Meezan Asaan Account opens the doors of banking products and services to those customers who
have limited proof of source of income. The account can be opened with just Rs. 100/- and a valid
CNIC/ SNIC / Passport / National Identity Card for Overseas Pakistanis (NICOP) / Pakistan Origin
Card (POC) / Alien Registration Card (ARC) issued by National Aliens Registration Authority
(NARA) / Pension Book.

2.1.10.2. Asaan Saving Account

The Riba-free Meezan Asaan Savings Account is another addition to the offerings of Meezan bank.
Meezan Asaan Account opens the doors of banking products and services to those customers who
have limited proof of source of income. The account can be opened with just Rs. 100/- and a valid
CNIC/ SNIC / Passport / National Identity Card for Overseas Pakistanis (NICOP) / Pakistan Origin
Card (POC) / Alien Registration Card (ARC) issued by National Aliens / Registration Authority
(NARA) / Pension Book.

2.1.11. Meezan Business Accounts

These accounts are convenient, flexible and suited for business. Following accounts are falling in this
category:

2.1.11.1. Meezan Business Plus Account

Meezan Business Plus is a Mudaraba-based account that allows you to conduct your banking
transactions while availing a wide range of free services and therefore provides you the ideal blend
of convenience & flexibility that you deserve in Islamic banking. Meezan Business Plus Account can
be opened by Individuals and businesses including Sole Proprietorships, Partnerships and Limited
Companies. It has the following key features:

12
 1. Minimum investment required to open an account is Rs. 100/-
2. There is no restriction on withdrawals or numbers of transactions.
3. Free Cheque books** and free Pay Orders.
4. There is no deduction of service charges if the balance maintained is low.
5. Free ATM Takaful Coverage* up to Card Limit.
6. Free Hold Mail Facility.
7. Withdraw money as many times as you need in a single day.
2.1.12. Other Services

Following are the other services provided which comes under operation department:

2.1.12.1. Consumer Finance

Consumer finance includes the car Ijarah, bike Ijarah, and other household items Ijarah including
LED, Fridge etc.

2.1.12.2. Meezan Car Ijarah

Car Ijarah is Meezan Bank’s car financing product and is Pakistan’s first Interest-free car financing.
It is based on the Islamic financing mode of Ijarah (leasing). This product is ideal for individuals
who want to get interest-free financing for acquiring a car. Car Ijarah works through a car rental
agreement, under which the Bank purchases the car and rents it out to the customer for a period of 1
to 7 years, agreed at the time of the contract. Upon completion of the Ijarah period, the vehicle will
be sold at a token amount or gifted to the customer.

2.1.12.3. Home Remittance

The fast and reliable way to send money home.Meezan Easy Remit is a Home Remittance service
which provides an easy, fast and reliable way for Pakistanis who are working abroad to send money
to their families and relatives living in Pakistan. The money sent from abroad can be immediately
collected from any branch of Meezan Bank which has a strong presence of more than 570 branches
and 146 cities in Pakistan.

2.1.12.4. Premium Banking

13
Meezan Premium Banking is a prestigious way of Islamic banking specially designed to meet your
financial needs. Experience your banking needs with our Premium Banking services and value added
benefits available to you from our personalized and free banking services to customary discounts and
privileges tailored to your lifestyle at finest retail outlets, restaurants and hotels across the country.

2.1.13. Cash Department Services

Cash department is the most important department of the bank. It receives Cash from the customer
and then deposit it in to the accounts of customers and maintained their balances. This is the most
important and critical department in the bank. There are two basic functions performed by the cash
department.

2.2. Product Line

2.2.1. Deposit products
Meezan Bank offer the largest range of Riba-free Deposit Accounts for Personal Banking.

1. Rupee Current Account

2. Rupee Saving Account
3. Dollar Saving Account
4. Meezan Bachat Account
5. Business plus Account 
2.2.2. Term Certificates (Riba- free Term Deposit Certificate)
Meezan bank provides a complete range of short term and long term deposit certificate with the
flexibility of monthly, quarterly, semi-annual and annual returns:

1. Certificate of Islamic Investment

2. Meezan Amdan Certificate
3. Monthly Mudarabah Certificate
4. Dollar Mudarabah Certificate

2.2.3. Consumer Finance

Consumer finance provides for construct a home, purchase a car, etc:

1. Easy Home

14
2. Car Ijarah
3. Laptop Ease
2.2.4. Electronic Banking
Electronic Banking provides non-stop banking convenience, twenty four hours a day, seven days a
week.

1. Visa Debit Card

2. Internet Banking
3. ATM Network
4. Meezan Quick pay
5. SMS Alerts
6. 24/7 Call Center

2.3. Shariah Supervisory Board Meezan Bank

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

2.4. The Board Of Directors Of Meezan Bank

1. H. E. Sheikh Ebrahim Bin Khalifa Al-Khalifa (Chairman)
2. Mr. Abdullateef A. Al-Asfour
3. Mr. Rana Ahmed Humayun
4. Mr. Mohammed Azzaroog Rajab
5. Mr. Ahmed Abdul Rahim Mohamed
6. Mr. Alaa A. Al-Sarawi 
7. Mr. Mian Muhammad Younis
8. Mr. Mohammad Abdul Aleem
9. Mr. Irfan Siddiqui (President & CEO)
10. Mr. Ariful Islam (Chief Operating Officer)

15
2.5. The Business Segments of The Bank Are
1. Consumer Banking 
2. Corporate Banking
3. Investment Banking
4. Commercial Banking (including Small and Medium Enterprises)
5. Treasury & Financial Institutions
6. Asset Management (managed through a subsidiary Al Meezan Investment Management Ltd.)

2.6. Competitors
The major competitors of Meezan Bank Limited are:

1. Bank Islami
2. Bank Al-Falah Limited
3. Bank Al Habib Limited
4. Askari Bank Limited
5. United Bank Limited
6. Allied Bank Limited
7. Soneri Bank Limited
8. Faisal Bank Limited

2.7. Introduction To All Departments 

Meezan Bank Limited has been divided into following divisions:

2.7.1. Asset Management
The Bank invest funds on behalf of its customers (shariah compliant investment product) and gives
them access to a wide range of traditional and alternative product offerings. For example open end
funds, pension funds and closed end funds
16
2.7.2. Retail Banking Division
In this division bank deals with customers and execute their transaction directly. Bank provide the
service of savings, checking of accounts, mortgages, personal loans, debit cards and ATM cards.
2.7.3. Audit & inspection Division
This department of the bank conduct audit of all the branches and submit its reports to the top level
management to take corrective measures.
2.7.4. Human Resource Division
This division performs the duty of hiring the employees, training the employees as well as retaining
the employees and if necessary, firing the employees.

2.7.5. Finance Division

This division controls the overall activities relating to finance i.e. monitoring the investment
activities, financing activities, Debit and Credit of funds and reasons there of with proofs.

2.7.6. Training, Research, Communication & Public Division

This division makes research about the new product, imparts training to newly hired employees as
well as old employees for innovation as per the rules and regulation of State Bank of Pakistan.
2.7.7. Operation Division
This division controls the whole operation of all the branches and controls the cash activities,
cheques, account opening and other things about operations.

2.7.8. Law Division

This division engages the lawyers and gives them the power of attorney to protect the bank to in
courts of law where cases have been filled by the bank against defaulters of loan as well as against
the bank by the general public.

2.7.9. Information Technology Division

This division provides the relevant systems for working in the bank and protects the data in
computers at central place and controls the overall online system on daily basis.

2.8. Future Prospects

17
The future of the Bank is too much secure and will be on safer side because major share holders of
the bank are international companies which can provide financial support to the bank in the time of
crisis. Bank is doing Islamic banking which is shariah complaint and is risk free Although its
margins are to a reasonable extent but are of permanent and constant nature. Customers default ratio
is very much low as well as its non performing loans are also much low which is living a healthy
sign on the banks financial strength. As for as ratio analysis is concerned bank seems to be a going
concern. Bank has too much working capital; fixed assets are much more than the standard of
industry. Which is a sign of security and safety for the bank. Although bank is growing but it will
also grow in future to a larger extent as is indicated in its income statement and balance sheet on year
to year basis.

Chapter No. 3
Business Analysis
3.1. SWOT Analysis
3.1.1. Strengths
1. First exclusive Islamic bank.
2. The largest Islamic Bank in Pakistan with a network of over 166 branches in 40 cities. And
ending this year they have increase his branches in Pakistan to 180 branches.
3. Strong growth of its Islamic banking SBU.

18
4. Karachi, August 20, 2008: Meezan Bank, the largest Islamic Bank in Pakistan has been
conferred the Best Islamic Bank Award by Rawalpindi Chamber.
5. Dedicated and professional staff
6. Healthy working environment
7. Strong shareholding
3.1.2. Weakness
1. High charges for different activities such as online or Demand Draft as compared to
competitors.
2. lack of promotions and advertising of their products and services.
3. Lengthy & extensive documentation
4. Centralized procedures making process slow
5. Weak marketing strategy, Target market not identified
6. Meezan Bank Limited has no Credit card facility
7. Restricted Shariah based policies
3.1.3. Opportunities
1. House financing sector can be targeted to maximize the profit.
2. Growing demand of Islamic financial product and services.
3. Coming up with. Products for the SME to targeting the medium level customers.
4. Increase branch network within the country.

3.1.4. Threats

1. New competitors setting up their Islamic banking sections and they have the infrastructure, skill,
ability, resources & attitude to capture the market more than the Meezan bank.
2. High Interest Rate from SBP
3. Govt. policies are mostly for conventional banking system not for specially designed for Islamic
banking.
4. Change in Government's attitude towards Islamic banking.
5. Fears on the credibility of Islamic banking ethical compliance and monitoring systems.

19
Reviewing this SWOT analysis from time to time would help evaluate the bank's position. It would
help the management in comparing their strengths of the past with those of the present and to what
extent the management has been able to overcome the weaknesses.

3.2. PEST Model

PEST is an acronym that stands for Political, Economical, Social, Technological, Environmental and
Legal .It is used to describe an analysis that is used for determining the opportunities and risks of
global expansion. Sometimes it is described as a PEST or PESTL analysis.

3.2.1. Political Analysis

Over past 10 years, Pakistan has been a victim of political instability. The main reasons behind it are
war on terror, martial law, American interference in Pakistan and corruption. Operating in such a
volatile political environment, MBL is facing numerous challenges.MBL has been surrounded by
political factors such as

 Unpopular and weak government

 High level of corruption at all political levels
 Intense political activities throughout the country
 Violence in Karachi
 High tax rates
 Frequent changes in taxation policies

3.2.2. Economic Analysis

MBL belongs to an “agro based” economy dwelling in a developing country Pakistan. So there are
number of opportunities waiting for MBL as being a developing nation, investment potential is very
high and also high loan-business may be expected. The outlook for the Pakistani banking sector
remains relatively down beat despite the potentially vast consumer market in the country. Pakistan
has several characteristics that make for a favorable banking sector outlook for instance buoyant
demographics, a domestic economy geared towards private consumption and an extremely under-
20
banked population. But unfortunately, the economic conditions of Pakistan are not that ideal. MBL,
like other banks has been bombarded with frequent economic loops and bounds namely:

 High rate of inflation

 Substantial decrease in foreign direct investment
 Fluctuating interest rates
 High cost of living
 Huge gap between different income groups
 A decrease in disposal income
 Immense increase in government debt
 Energy crisis
 High rate of interest
3.2.3. Social Analysis

Being a socially responsible bank, MBL takes a keen interest in analyzing and then anticipating
social changes taking place in the society. In the past few years, customers have become more
conscious about Islamic modes of banking and therefore, MBL has introduces Islamic banking in
some of its branches. Also as mentioned earlier, saving culture has some what faded in Pakistan so
MBL has taken initiatives to offer other products as well in order to keep its business going. People
have become more comfortable with IT based products and services as it ensures convenience. There
has been a marked increase in the use of credit cards in Pakistan but the usage is currently limited to
educated middle class only.

3.2.4. Technological Analysis

IT has made the world a global village where everything is just a click away from your hand.
Meezan has recently been investing heavily in Information Technology as a means of competitive
advantage against large Pakistani banks and has now gained the status of ONLINE BANKING
enabling real-time transactions to be made. The technology makes it possible to empower the system
and establish a competitive advantage. Customers readily accept technological products such as
ATM, Master card, and I-banking.

21
3.2.5. Environmental Analysis

As Pakistan is an agro-based economy, so the operations of ABL also affected by the way
agricultural products are affected by environmental factors such as climate and weather conditions.
The product of meezan bank named “agricultural loans” is specially affected by it.

People have now also become more conscious about green products so they value the organizations
taking active part in it. MBL has launched many awareness programs in this regard. Recently when
floods hit many parts of Pakistan, MBL was again seen active in helping the victims.

3.2.6. Legal Analysis

MBL has also been facing challenges as the legal priorities shifted time to time due to changes in
government policies. Although the procedure of preparing financial reports has been the same but
taxation policies, security concerns and legal papers regarding trade business have been changing
due to trade legalities. Increase in minimum wage rate, rights given to minorities in Pakistan has also
affected MBL’s operations

3.3. Competitive Advantages

Al Meezan is one of the leading and fastest growing asset management companies in Pakistan.
There are many reasons which set us apart and make us the preferred choice of thousands of
investors. Join us and be a part of Al Meezan Family.

3.3.1. Our Roots

Al Meezan Investment Management Limited is a subsidiary of Meezan Bank Limited, the name
that has pioneered Islamic Banking in Pakistan and is the Largest Islamic Bank in Pakistan. Pak
Kuwait Investment Company, a joint venture between Government of Pakistan and Government of
Kuwait is also a group company.

3.3.2. Our Expertise

22
You know your money is being handled through prudent and skilled fund management team with
experience that stretches across asset classes and backed by strong Research and Risk
Management.

3.3.3. Our Strong Distribution Network

We have our presence in leading cities of Pakistan with an expansion planned for further
penetration. We are also proud of an extensive penetration across the country through MBL’s
network of over 600 branches and SCB Sadiq branches.

3.4. Financial Statement of MBL

The Balance Sheet

Assets, liability and equity are the three main components of the balance sheet. Carefully analyzed,
they can tell investors a lot about a bank's fundamentals.
A Balance Sheet records the total assets, liabilities, and equity (net worth) of a business as of a
specific day. This statement is divided to provide two views of the same business: what resources
the business owns, and the creditor and owner investments that supplied these resources. These
divisions are generally set up in the two-column account form, with assets on the left, liabilities and
equity on the right. An alternative the one column statement form or report form lists assets on top,
liabilities and equity below.
The backbone of the Balance Sheet is the fundamental accounting equation:
Assets = Liabilities + Equity
This equation is based on the accounting principle that every business transaction, such as selling
merchandise or borrowing capital, has a dual effect. Any increase or decrease on one side of the
equation always requires a corresponding change to the other side of the equation. If the sides don’t
balance, faulty arithmetic or inaccurate or incomplete records may be the cause.
Meezan Financial Statements
31 December
Balance Sheet

23
 (Rupees in thousands) 2016 2017
Assets:
Cash And Balances With Treasury 16,641,160 12,780,806

Banks
Balances With Other Banks 4,065,406 10,511,855
Due From Financial Institutions 98,488,574 54,966,907
Investments – Net 70,377,481 60,265,244
Islamic Financing And Related Assets 3,985,248 3,066,100

– Net
Operating Fixed Assets 801,391 342,175
Deferred Tax Asset – Net 3,843,058 2,879,678
Other Assets 200,550,394 154,752,425
Liabilities
Bills Payable 2,282,045 1,767,370

Due To Financial Institutions 9,235,960 5,829,296

Deposits And Other Accounts 170,030,431 131,070,328

Deferred Tax Liabilities ------------ -----------

Other Liabilities 5,215,607 5,005,440
186,764,043 143,672,434
Net Assets 13,786,351 11,079,991
Represented By
Share Capital 8,029,933 6,982,550
Reserves 2,058,319 1,380,010
Unappropriate profit 3,240,421 2,377,563

13,328,673 10,740,123

Surplus on revaluation of investments - 457,678 339,868

net of tax
13,786,351 11,079,991

3.5. The Income Statement

Business revenue, expenses, and the resulting profit or loss over a given period of time are detailed
in the Income Statement. It is also called the Statement of Income and Expense, Statement of
Earnings, or the Profit and Loss Statement. This report reflects the bank’s chosen fiscal year. For tax
purposes, the owner may need to prepare a second Income Statement based on the calendar year, if
the fiscal year is different. Check with a tax advisor about Internal Revenue Code requirements.

24
 Meezan Financial Statements
31 December
Income Statement

(Rupees in thousands) 2016 2017

Net Sales 9949460 10785879
Cost of Goods (7402331) (797972)
Gross Profit 2547129 2806117
Distribution & marketing costs (1819415) (2160041)
Administrative expenses (273665) (304597)
Other expenses (46480) (34837)
Other income 221906 162279

(1917654) (2337196)
Operating Profit 629475 468921
Finance cost (293678) (292670)

Profit before taxation 335797 176251

Taxation (238465) (109774)
Profit after taxation 238465 66477
Earnings per share 1.96 1.26

3.6. Performance Of Organization

 Net Profit

Years 2015 2016 2017

Profit 17.80 16.27 8.27
From above we can analyze that growth are decreasing as per year so the bank has to work over to
improve their net profit. Bank has to remove if there is any barrier.

 Market Share

25
With the Strategic Plan in place our task the Bank has a positive outlook for the country and believes
that the future government will continue with the growth policies. Therefore, the Bank will continue
to build market share through an aggressive branch expansion plan supported by a strong technology
backbone. Meezan Bank plans to expand its branch network to approximately 140 branches by the
end of the year that will further increase its customer out of reach. The financing and investment
portfolio of local Islamic banks reached Rs. 185 billion in December 2017 compared to Rs. 137.6
billion in December 2016. Market share in the overall banking increased to five per cent at end
December 2017 compared with four per cent at end December 2016. Total assets of Islamic banking
reached Rs. 271.1 billion in December 2017 compared to Rs. 205.2 billion in December 2016.

 Volume of Assets (millions)

Years 2015 2016 2017

Total Assets 46439 67179 85276

 Share Price In Stock Market

Years 2015 2016 2017

Share Price 19.50 38.55 21.48

From above we can analyze that the share price is low as compared to previous year, so we have to
keep focus on it. Make a plan to improve or increase price to attract previous share holders.

 Number of Employees

Meezan Bank continued to attract and recruit staff through 2008 for its aggressive branch expansion
plan as well as for its Head Office departments. Meezan Bank believes that its 3000+ employees are
its greatest asset and a major reason for its growth and success.

Years 2015 2016 2017

Employees 1389 2205 3170

26
3.7. Ratio Analysis
On-line financial databases offer financial figures for many corporations, for many years. This data is
useful when computing and comparing various ratios for different bank. Managers, lenders, or
financial analysts may use many different ratios for decision-making.
3.7.1. Limitations of Ratio Analysis
1. A Bank’s industry category is often difficult to identify
2. Published industry averages are only guidelines
3. Accounting practices differ across Banks
4. Sometimes difficult to interpret deviations in ratios
5. Industry ratios may not be desirable targets
6. Seasonality affects ratios
 Liquidity Ratio

It is the relationship between the current assets and current liabilities of a concern.

Current Ratio = Current Assets/Current Liabilities

Year 2015 2016 2017

Current assets 10212269 9373577 7108685
Current liabilities 4848440 3607766 5065513
Current Ratio 2.10 2.59 1.4

 Debt Equity Ratio

Debt equity Ratio = Debt liabilities/ Net assets

Year 2015 2016 2017

Debt liabilities 36826824 57864137 74325579
Net assets 10212269 5706656 5974978
Debt equity Ratio 3.60 10.13 12.4

27
  Profitability ratio

Year 2015 2016 2017

Net Profit margin 17.80 16.27 8.27
Gross profit margin 45.86 46.39 54.61
Return on capital 0.0020 .0022 .0024
employed
Return on capital employed =(PBIT / Capital employed)*100

PBIT = Core banking income before provision

Capital Employed = Equity + Long term liabilities

 Investment Ratio

Year 2015 2016 2017

Earning Per Share 1.88 1.96 1.26
Price Earning Ratio 10.51 15.2 17.03
Dividend Per Share 10 20 8.6

In 2016 the per share earning is good but it decreases in 2017 1.96 to 1.26 so the management has to
give attention here. Here the management has recovered their position and improved.

The dividend has decreased 20 to 8.6 R.s. This is very bad for company’s good will or stock market.
Management has to focus over it other wise the company has to bear more loss in future.

 Capital Adequacy Ratio (Capital to Risk (Weighted) Assets Ratio)

Year 2015 2016 2017

Average Ratio 1.57 1.70 .82

Average Equity 15.64 10.30 18.39

 Overall Ratio
Year 2015 2016 2017
Current Ratio 2.10 2.59 1.4

28
Debt Equity Ratio 3.60 10.13 12.4

Profitability Ratio 0.0020 .0022 .0024

Investment Ratio 10 20 8.6

Earning Par Share 1.88 1.96 1.26
Price Earning Ratio 10.51 15.2 17.03
Average Equity 15.64 10.30 18.39
Average ratio 1.57 1.7 0.82

Chapter No. 4
Learning as a Student
4.1. Introduction of Branch
Meezan Bank Limited Chowk Baba Attar Ichra Branch, Lahore. Meezan Bank Limited opened its
branch at Chowk Baba Attar Ichra Branch, in 2017.The branch in charges consist of a Branch
Manager and Manager Operations. Manager Operations control the whole staff. The staff consists of
branch system administrator and operational staff.

4.2. Internship Program

In Meezan Bank limited I really enjoyed working with the bank staff of MBL Ichra Lahore branch
and having a wish to be an employee of this organization following the Islamic discipline. It was
very difficult to work in different departments of bank within limited time but on my request, the
bank staff provides me an opportunity to work in different departments for the sake of practical
knowledge.

29
I started my internship from 6th February, 2019 which ended on 20 th March, 2019 and duration of
my internship is 6 weeks. The staff of branch is much cooperative. They imparted my training in all
departments of the branch i.e. I worked in Customer Service Opening of Accounts. The basic process
of clearing and transferring of cheque . Clearing & remittance and account opening successfully and
acquired a lot of knowledge and experience while interacting with staff of meezan bank.

4.3. Experience and Training

Names of Departments
1. Account Opening Department

2. Service Quality Department

3. Clearing Department

4. Remittance Department

5. Locker Operations

6. Cash Department

1. Account Opening Department

At the start of my internship, I started my work at account opening Department where I learned how
to open an account what are the basic requirements for a customer for account opening and which
documents are required for further procedure and also learned how many accounts are used in bank
like.

 Single
 JOINT Personal
 Sole Proprietorship
 For Single/Normal Account:

I learn about different about of stamps which are necessary for account opening And learn about the
use of the stamps on the right place. Following stamps are required to be use on account t opening
form:

 Signature Verified

30
  Signature admitted
 Picture Admitted
 Original Seen
 Operation manager Stamp
 Branch Manager Stamp
 Time, Date stamp on the front page of form.
1.1. Account Opening Form
1.2. Completion of the Form

After completed account opening form in all respect and checked by the bank officer and properly
signed by the customer which is also verified by the Operation Manager.

1.3. Specimen Signature Card (SSC)

Specimen Signature Card are got signed form the customer and after verifying the information
written there in, Customers are given account number and all this information are saved in the
system.

1.4. Computerized Checking

1.5. Account Number
1.6. Cheque Book Issuance
1.7. ATM Card Issuance

Meezan Bank limited provides the ATM facility to its Customers and they can withdraw their
amount at any time through ATM. ATM card requisition is also sent to head office, Karachi for the
issuance of ATM card.

Meezan bank offers following 3 types of ATM cards to its customers:

31
  Silver Card (Transaction Limit up to 50000, and charges 696 along with tax)
 Gold Card (Transaction limit up to 100000 and charges 1044 along with tax)
 Master Card (Transaction limit is up to 150000 and charges 1392 along with tax)

For activation of ATM, customer has to call the help line (111-331-331).

2. Service Quality Department

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

2.1. Floor Time Management

While standing near the main gate bank ensures that customers coming into MBL are properly
looked after. Bank also creates a sense of ownership of service quality and develops a service
mindset and ultimately a quality service culture at MBL. Furthermore, Bank manages the sale and
service area of the branch to provide maximum opportunities to clients as well as provide a sense of
comfort and personal attention.

2.2. Responsibilities of Floor Time Management

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

3. Clearing and Remittance Department

Clearing

After learning in Service Quality Department, I worked in Clearing Department. I learnt their about
Clearing of different cheques and remittance handling. I was told there the main objects of clearing. I
received all the clearing cheques and made a schedule of these cheques after making entries in
outward and inward clearing registers and sent the same to main branch where at all the cheques
were sent to NIFT (National Institutional Facilitation Technology)
32
Remittance

Remittance department transfer the funds from one bank to another bank and one place to another
place. In this department collection takes place. MBL makes payment of only open cheques at the
counter and prohibits the payment of crossed cheques. MBL transfer money from one place to
another place by way of payment order, demand draft, inward collection, outward collection.

4. Locker Operations

Locker facility is also available at all the branches of MBL for keeping the valuables their in and this
facility is only for account holders. As for as privacy is concerned, lockers are located in a specially
designed area protected with strong room doors and grills under the control of two officers, operated
by use of Master Key and Customers Key supplied to the customer at the time of locker is rented out.
Lockers are three types: Small, Medium and Large lockers. Security fee of locker is Rs. 3000 which
is refundable and charges for Small Rs. 1000, for Medium Rs. 1500 and for Large Rs. 2000 per
annum. A separate application form is complete and signed by the customer along with SS Card and
a copy of CINC with two photographs. After completing all the formalities a locker is allocated to
the applicant and Key is given to him with locker identification card.

5. Cash Department

Cash department is usually to collect and deliver cash. When a customer comes to the bank and
wants to issue or deposit amount comes to the cash counter to give or receives amount. So, it is the
cash officer’s duty to deposit or withdraw the amount after verification of signature or account
number of the customer. Cash officer checks the balance and then pay the amount to the customer.

4.4. Weekly Report

1st week

I started my first day of internship with the introduction of bank employees and with introduction of
bank departments. In This week just know how work done in the various departments in the bank
Like:

33
 Finance
 Marketing
 IT
 Operation Management etc
 I knew about the purpose of the bank and the functions of the bank and judge the practical
performance of the departments.
I started my second day of internship with the lecture of the bank officer. He told us about Riba and
its types:
 Riba al Nasiah
 Riba al Fadl
Then he told about important element Basic Mode of Financing. Then I moved to Accounts
Department for learning something new. I learnt about IBTDR (Islamic Bank Term Deposit
Receipts) and knew what its meaning and functions.
 Basically IBTDR involves Accounts:
 Saving Deposit accounts
 Term Deposit accounts
 I learnt about the profit rates of the accounts and procedures to open these accounts.
 I learnt about also CDR (Call Deposit Receipts) and its procedure and knew its purpose and
how to fill it an proceed.

2nd & 3rd week

I started this week with the lectures of the Bank officer about bank and its performance. I learnt the
actual means of practical work in the bank. First of all I started my work in the ACCOUNT
OPPENING DEPARTMENT of the bank in which I learnt how an account can be opened in a bank,
which documents are necessary to attach it with the account opening form and how many kinds of
account are used in bank like

 Single
 Joint personal
 Sole proprietorship

34
The requirement for opening these types of a/c are

 Select the nature of a/c

 Attested photo of applicant
 Then the permanent address
 NIC copy.
 occupation
 The reference of any person who has already the a/c or any respected personality
 The other information related to the a/c filled on choice of applicant.
 The signatures are done on form as well as on the specimen signature card from where the
signature will be scanned as a record in computer.
1. Partnership
2. Limited company
3. Trusts
4. Association
The requirement for opening these types of a/c are

For partnership

 Attested photocopy of CNIC of all partners

 Attested copy of Partnership Deed duly signed by all partners of firm.
 Attested copy of Registration Certificate with register of Firm. In case the partnership is
unregistered this fact should be clearly mentioned on the a/c opening form
 Authority letter, in original, in favor of the person authorized to operate on the a/c of the firm.
For Joint Stock Company

 Resolution of Board of Directors for opening of a/c specifying the person(s) authorized to operate
the company a/c
 Memorandum and articles of association.
 Certificate of incorporation
 Certificate of Commencement of Business
 Attested photocopies of CNIC of all directors
35
 List of directors on Form 29 issued by the Registrar Joint Stock Company
For Agents a/c

 Certificate of power of Attorney

 Attested photocopy of CNIC of the agent.
Trusts a/c

 Attested copy of Certificate of Registration

 Attested photocopy of CNIC of all the trustees
 Certified copy of instrument of Trust.
"The most difficult task related to bank for a common citizen is to open an a/c in any bank"

4th Week

I started my week of internship with the daily lectures of the bank officer who is the organizer of
internship program for internees in meezan bank. I learnt about the role of STATE BANK OF
PAKISTAN in Pakistan’s economy from the lecture and know about the prudential regulations
briefly not explanatory which are:

 Know Your Customer (KYC)

 Anti-Money Laundering Measures
 Record Retention
 Correspondent Banking
 Suspicious Transactions

In account opening department I learnt the use of ATM card and learnt how to fill ATM form. Then
I know how to receipts are filled. I learnt how on line payments are made and how cash or receipts
are transferred. First of all I learnt about ATM PIN ISSUANCE procedure and knew why it is
necessary for customer or account holder. Then he showed us module in computer that how he
enters the data of customer and how it proceeds. After proceeding computer shows a pin number that
is issued for that customer who filled the form for ATM. And this work is done means pin issuance
by Head Office.

5th Week
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I started my working day with some work, which has to complete from the previous week with
account opening forms.

 I learnt about inward and out ward clearing and learnt how the transactions are made.
 I learnt how to write the inward clearing cheques in the transaction record book.
 I learnt to deduct the return cheques from the added amount of all cheques.
 I learnt the entry of pay orders in the record book.

 Know how of employees.

Then i started my work again in accounts department. The officer also does/handle the other work
like remittance department.

 I learnt about the PAY ORDER and DEMAND DRAFT. He told us the difference of Pay
Order and DD.
 I learnt also about the procedure of it. I also saw the Pay Order cheque and knew about its
attributes.
 I also learnt about the facility of LOCKERS and its functions.
 Lockers have 3 types of it:
Small Size Lockers
Medium Size Lockers
Large Size Lockers

The officer told us its functions and charges and I knew about that how can hold locker and which
documents are required for getting the lockers. Lockers are the fire proof.
I attended the weekly meeting of bank manager with employees and attended the lecture about
modern way of banking delivered by the bank manager for the success if the branch’s business.

6th week

I started my day with the daily lecture and general discussion about banking and scope of banking in
Pakistan in coming years.

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 I revised all practices according to account opening departments and cleared my all confusion
related to that department trough got work in that field.
 I gave my feedback as a internee about the environment of the bank and about my work
experience in that department
 After that I went to ACCOUNTS DEPARTMENT and started my work. First of all I cleared my
all confusions about the previous topics then I started to learn further.
 Then I learnt about SMS ALERTS. He told us its function and I knew about that what
information is required for its activation and what information it gives to customer through
SMS.
 I learnt what are the Local Posting and Online Transferring and how it is done.
 I knew about what Account Closing is and what its procedures to close it and what charges are
required for it.
 Then I saw the module of daily Accounts and Expense Entries posting. And knew about the
reason of entering it.

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Chapter No. 5
Conclusion

5.1. Conclusion
I spent six weeks of my internship at MBL Ichra branch. During these six weeks, I feel myself be a
part of bank. Even this was my experience of working in a bank, but I learned a lot in from my very
first experience. Business of the bank is quite up to the mark keeping in view the standard of banking
industry. Bank is located at chowk baba attar ichra. Where united bank limited (UBL), faysal bank
limited are also doing business in the same area but Meezan Bank limited is competing with all these
banks and increasing its clients.

Bank is giving better services to its customers as well as better facilities to its employees, its
employees are making an untiring effort to increase the profit of the company on year to year basis as
well as time their best to increase the wealth of the shareholders. Bank is offering many products to
its customers which are increasing the margin of the bank.

One of the most important aims of the student life is to express him / her correctly and adequately.
This was believed in my mind when I first decided to go to Islamic Meezan Bank Limited to
complete my internship program. With their focused strategy and product development initiatives
planned for the year, Meezan Bank is strongly positioned to meet these challenges. The bank has
very well repute in the market. Overall bank is going well and doing a good business but there are
few problems.

5.2. Recommendations
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 Expanding their business by establishing new branches in those areas which are near to the
business area.
 MBL must take a part in heavy advertisement as the people become aware of Islamic banking
system.
 Bank should provide on the job Training (OJT) to their employees.
 Meezan Bank Limited should establish a Department of Human Resource Management.
 Meezan Bank Limited should continue to expand its business, by increasing its deposit
portfolio through aggressive market penetration strategies.
 Meezan Bank Limited needs to improve its website.
 More information relating to financial performance of the bank should be available on the
website.
 The employees should be signed jobs for specific period and than they should shifted to other
department so that they gain knowledge of other jobs. Lockers, ATM, all these facilities
should be provided to attract more customers.
 Increase the Size of waiting room.

5.3. References
 http://www.meezanbank.com/history.aspx
 http://www.meezanbank.com/Home.aspx
 www.almeezan.com.pk
 http://www.meezanbank.com/index.aspx
 http://www.google.com.pk
 http://annualreport.portofrotterdam.com/
 https://www.meezanbank.com/financial-information/
 https://www.almeezangroup.com/why-al-meezan/our-advantage/

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