MEEZAN BANK ANALYSIS

(Analysis)

By

Muhammad Danish(FA07-BB-0051)

For
Financial Institution

Submitted To

Mr. Faisal Aziz

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 ACKNOWLEDGEMENT

First of all, we are thankful to ALLAH, Who has given us the

ability to show our skills. We are thankful to the management and
the staff of “MEEZAN BANK Ltd”, who provided us valuable
information during our internship and given us chance to take a step
towards the practical life. More over, we are thankful to Sir Shujjat
Saleem (Course Instructor) who provided us an opportunity to
excel our skills. Special Thanks to Mr. Junaid Ahmed (Branch
Manager) Mr. Imran Mirza Rizki (Operation Manager) for their
unconditional support and help in making us learn in a good
environment, who also provided us valuable information regarding
our first fieldwork of management.

THANK YOU ALL

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 Executive Summary:

In the first we have discussed about the

introduction of the Meezan Bank, Basic Functions of Meezan

Bank and objectives of Meezan Bank Ltd. Then I introduced

Meezan Bank (Garden West Branch). I have also mentioned the

products, packages, which the Meezan Bank Ltd. offers to its

customers and then I have given a brief overview of different

accounts opened and Investment Certificates issued by Meezan

Bank Ltd. And in the last I have shown the Balance Sheet and

Income Statement of Meezan Bank Ltd.

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 INTRODUCTION:

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-fleged 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 is operating
approximately more than 166 branches in 40 different cities.
In addition, the “State Bank of Pakistan” itself governs
the activities of Meezan Bank and its Shareholders. Meezan bank
Ltd has a strong Balance sheet with excellent operating
profitability, including a capital adequacy ratio that has placed the
Bank at the top of industry, a long-term entity rating of A+, and a
short-term entity rating of A1+.

Planning and managing the work efficiency is the

key factor of the Meezan Bank’s Managers. The

4
Vision of Meezan bank is “Establish Islamic Banking

As banking of First Choice”. And our Mission is “To

Be A Premier Islamic Bank”.

Shariah Board

Meezan Bank has a very high-caliber “Shariah

Supervisory Board”, comprises of internationally
renowned Islamic Scholars. The “Shariah Supervisory
Board” regularly reviews the bank’s activities and
approves all new products. The bank also has a resident
Shariah advisor. Dr. Muhammad Imran Usmani, who
monitors day-to-day transactions of the bank. The
Shariah Board comprises of the following members:

• Justice (Retd.) Muhammad Taqi Usmani

(Pakistan)-Chairman.

• Dr. Abdul Sattar Abu Ghuddah (Saudi

Arabia).

5
• Sheikh Essam M. Ishaq (Bahrain).

• Dr. Muhammad Imran Ashraf Usmani

(Pakistan).

Share Holders in Meezan Bank

Our Share Holders are world-renowned financial

institution i-e:

• Pakistan Kuwait Investment Company (Pvt) Ltd.

• Shamil Bank of Bahrain E.C.

• Islamic Development Bank.

• KUWAIT Awqaf Public Foundation.

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 • Saudi-Pak Industrial & Agriculture Investment

Company (Pvt) Ltd.

Our Head Office:

Our Head Office is located at,

3rd Floor PNSC Building,
Moulvi Tameezuddin Khan Road Karachi,
Sindh, Pakistan.
Tel: (92-21) 5610582/5610679.
Fax: (92-21) 5610375.
www.meezanbank.com

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 24/7 Call Center 111-331-331.

Introduction to Meezan Bank Ltd

(Garden West Branch Karachi)

As we all know that Meezan Bank is operating

approximately more than 166 branches in 40 different
cities. So, inspite of that a new branch of Meezan Bank
Ltd is opened at Garden West (a beautiful and
commercial area) on 12th of November 2008, having
address: Plot#130/1, Amin Center, Garden West, Karachi.
Garden West area has a largest oil distributors market in
Karachi, and auto parts distributors. Its residential area

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is beautiful and well organized. The residents are well
educated and belong to different categories, some of
them belong to noble families, some belongs to poor
family, but the Meezan Bank Ltd is trying its level best to
fulfill their banking needs according to Islamic banking.

Objectives

 To be a premier Islamic Bank.

 To fulfill the banking requirements of the

customer according to the Islam.

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 To guide customers about different products,

Bank policies & requirements regarding different

types of accounts.

 Assist first time customer in opening bank

accounts.

 To promote the highest level of customer

services and responsiveness to customer base of

the branch.

 Intelligently access the needs and problems of

the existing customer and guide them in the best

solution of their queries and concern as per bank

policies.

 To operate the accounts of such customers who

earns HALAL & Riba-free income.

 To represents the bank in professional manner.

 To facilitate the Customer to avail our services

happily and easily.

 Assure customer of a truly Halal absolutely Riba-

free investment.

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 STAFF
(MEEZAN BANK LTD GARDEN WEST BRANCH KARACHI)

Na me De si gna ti on
1. Junaid Ahmed Branch Manager

2. Imran Mirza Rizki Operation

Manager

3. Bakhtiyar Ullah Cash Deposit

Incharge

4. Bilal Mehmood Operation

Officer 1

5. Muhammad Ehsan-Ul-Haleem Personal Banking

Officer

6. Irfan Mehar Hussain Cash Officer/Teller

7. Aneel Kumar Team Leader

8. Arsalan Arif Siddiqui Assistant Operation

Officer

9. Humera Siddiqui Service Quality

Controller

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10.Mohsin Ahmed Business

Development Officer

11.Mahmood Ali Business Development

Officer

12.Muhammad Shahid Business Development

Officer

13. Erum Ansari Telephone Operator

Organizational Structure
As we already introduced Meezan bank Ltd (Garden West
Branch Karachi). So, this Branch is comprises of a Branch Manager,
who reports to the Area Manager about the work & performance of
the branch employees. A separate area has been set aside for
operations which are monitor by an Operation Manager, who reports
to Branch Manager about daily cash transactions, clearance,
remittances & accounts opening. There are also PBO (Personal
Banking Officer) and BDOs (Business Development Officers), who

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 are directly related to Branch Manager and reports him about
customer relationship & services provided to them, and about
deposits targets of concerned bank.

Branch
Manager

Operation

Manager

Cash Accounts Personal

Chief Cash Liability
Deposit opening Banking
Officer Sales
Officer Officer Officer
S

o
BDOs
Sorter r
Cash
Officer t
Accounts Offered by Meezan Bank Ltd on
e
Mudarabah basis.
r
Remittance
Clearing
Mudarabah: Officer
Officer

 This is a kind of partnership where one partner gives

money to another for investing in a commercial enterprise.

 The investment comes from the first partner who is called

“Rab-ul-Mal” (Investor).

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  The management and work is an exclusive responsibility

of the other, who is called “Mudarib” (Working Partner).

 Profit is shared as per agreed ratio.

 In case of Mudarbah all losses are borne by Rab-ul-Mal.

Key Features:

 The Structure is based on the principle of

Mudarabah and is strictly in conformity with the

rules of Islamic Shariah.

 It has been approved by the Shariah Supervisory

Board of Meezan Bank.

 On agreeing to become an account holder, the

customer enters into a relationship based on

Mudarabah with Meezan Bank.

 Under this relationship:

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 - The Bank is the Manager (Mudarib) of the

funds deposited by the customers.

- The Customer is an Investor (Rab-ul-Mal),

and •The bank allocates the funds received

from the customers to a deposit pool.

These funds from the pool are utilized to provide

financing to customers under Islamic modes that

include, but are not restricted to, Murabaha and

Ijarah.

Profit Distribution Structure:

Source Investment Pool Investment/Financing

Depositors Murabah
Funds Ijarah
Diminishing Musharakah

Bank

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 Profits Profits

The Gross Income will be shared between the bank

(as Mudarib) and Depositors (Rab-ul-Mal) in a
predetermined ratio (%) of the actual profit earned.

Meezan Bank Ltd offers different types of

Accounts on Mudarabah Basis. These are as

under:

1. Current Accounts.
Currents Accounts are the business accounts offered
to all types of business owners. The bank doesn’t earn
any type of profit from these accounts but these are
opened only due to the facilitation of the customers.
Current accounts can be opened jointly, singly, company
etc. Free online services from all branches. No
restrictions on number of transactions of withdrawals.

2 . Saving Accounts.
Saving accounts are opened due to the saving of
money. The bank also provides profit to the customers.
That profit is calculated & paid on monthly basis. If
during the month average deposits falls below 1000/-,
then no profit no Loss.

3. KMA (Karobari Munafa Accounts.)

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 KMA accounts are offered specially to those
customers who have valuable business and earn 1
million each month. So, the bank facilitates them with
free cheques book, free ATM card, free Telephone
Banking and free Internet Banking. The minimum
investment for this account is 1 million. And the bank
provides them profit at different rates.

4. MBA (Meezan Bachat Accounts).

This account required minimum investment of
25000. This account is opened for all customers, who
can operate it easily. In these accounts bank also
provides profits to the customers. These accounts also
provide facility of withdraw of cash any time.

5 . US DOLLAR SAVING ACCOUNTS.

These accounts are opened for those customers who
are residents of Pakistan but earning outside of the
country anywhere so he deposits his amount in dollar
or other currency and our bank provides him more
profit as compared to the local investors & on monthly
basis. The minimum investment for this account is
$500.

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NOTE: Rates are per annum and are declared on
monthly basis.
The rates declared every month before your
maturity or profit period shall be
applicable on your investment.

These all current and saving accounts can be opened in

any category of the following types of accounts.

• Individual Accounts

• Joint Accounts

• Minor Account

• Sole Proprietorship Accounts

• Illiterate Customer Account

• Partnership Accounts

• Limited Liability Companies Accounts

• Associations, Committee, Societies or Club Accounts etc.

• Non-Resident Rupees Account

• Trust Accounts (with prior permission from the HO)

• Executors, Administrators Accounts (with prior permission

from the HO)

• Local Bodies Accounts.

• Special Convertible Rupees Account (SCRA)

• Staff Accounts.

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1. Individual Accounts.
Accounts of Individuals, who are resident or non-resident, are
to be opened under this category.

2. Joint Accounts.
Joint Account is an account in the names of two or more
persons (other than Partners or Trustees). In this regard it to be
ensured that:
• The “Survivorship Mandate” is signed by all the parties to the
account and instructions for the operation of account are clearly
stated and filled in the Mandate.
• In case of death, cheques signed by DECEASED Account Holder
presented for payment will not be entertained and therefore must be
returned.
• When the balance of Joint Account is repayable to either party or
survivor, the Specimen Signature Card should be marked to effect
the arrangement.

3. Minor Account

A person who has not attained the age of 18

years is minor. However, incase Court has appointed

a Guardian for the property of a Minor, and then the

period of his / her maturity extends to the age of 21.

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4. Sole Proprietorship Accounts.

A formally stamped written request on the official Letter

Head of the Business / Firm of the Sole Proprietor in order to

open a Sole Proprietor Account must be submitted along with

AOF (Accounts Opening Form).

This request for opening of a Sole Proprietorship Account

should comprise the following clause:

"I am a Sole Proprietor of the Firm and as such, I am entirely

responsible for all transactions carried out in the name of the

Firm and I am personally liable for any overdraft or other

obligations arising in or in connection with this account and

the Bank is hereby authorized to debit the account with

commission and / or other Banking charges and expenses

incurred in connection with this account”.

Additional care must be taken while opening of sole proprietor

account. Beside other documents the customer should be ask to

produce the original NTN (National Tax Number) certificate

issued to his name in the capacity as sole proprietor of said

firm.

5. Illiterate Customer Account.

These types of accounts are opened only for those persons who
are illiterate. This account is also known as “PHOTO ACCOUNT”,

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that during opening this account we paste the current passport size
photographs with AOF (Accounts Opening Form). Illiterate person
could only open Saving Accounts. Furthermore, all withdrawals
undertaken by illiterate Customers must be witnessed by two Bank
officials and countersigned by Manager Operation.

6. Partnership Accounts.
Partnership is an association of two or more persons who have
agreed to share profits of a business carried on by all or by any one
of them acting for all. The terms and conditions must be spelled out
in the “Partnership Deed” formally agreed upon among Partners by
incorporating the same in the Deed.
It should be ensured that:
• Accounts of only Registered Partnership concerns will be opened
and the “Partnership Deed” will be obtained and critically reviewed.
• The AOF must be signed by all the Partners in their capacity as
individuals and not as member of the Partnership
The signing and delegation of powers of those authorized to operate
the account should be clearly stated on the AOF documentation in
accordance with Partnership Deed.

7. Limited Liabilities Company Accounts.

There are two types of Limited Companies i.e., Public Limited
and Private Limited. The Public and Private Limited Companies are
both incorporated and governed under the provisions of Companies
Ordinance 1984.

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A Limited Liability Company may open an account with the Bank
only if it is authorized to do so by a resolution of the Board of
Directors of the company.
Furthermore, such resolution must specify the titles / designation of
the officials authorized to open and operate the account, the extent
of their authority and the manner in which the account will be
operated.

8. Associations, Committee, Societies or Club Accounts etc.

An Association, Committee, Society or Club may open an
account with the Bank only if authorized to do so by the Governing
Body of the said Association / Committee / Society or Club.
Account of the Association, Committee, Society or Club should not
be allowed to be overdrawn. No cheques drawn on the accounts of
Association, Committee, Society or Club shall be collected for the
credit of personal / private accounts of any of the Office-Bearers of
Association, Committee, Society or Club.

9. Non-Residential Rupees Account.

Accounts of Individuals, Firms or Companies who are resident in
countries outside Pakistan and all nationals of Pakistan and persons
domiciled in Pakistan, who visit abroad for the purpose of
employment, study and business etc., are treated as Non-residents as
long as they remain outside Pakistan. Accounts of all foreign
nationals who are resident in Pakistan may be treated as
Resident Accounts.

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10. Trust Accounts.
A Trust Account maybe opened exceptionally with the prior
approval of Head of Operations. Trust account may only be open for
parties whose integrity and standing is beyond any doubt. Before
sending the to HO (Head Office) BM (Branch Manager) and
MO (Manager Operation) will go through the “Trust Deed” to ensure
that no undue onus is placed on the Bank.

11. Executors and Administrators Accounts.

Executors and Administrators Accounts shall only be opened
with the prior permission from the HO. Moreover, whenever
application for the opening of Executors and Administrators account
is received, the matter should be referred to the Regional Manager
who will forward the full details of the matter to HO for guidance
and permission to open such account. No Executor and
Administrator will be allowed to transfer the fund from the account
to their personal accounts.

12. Local Bodies Accounts.

City Governments, Municipalities, District Boards,
Development Bodies etc are included in Local bodies. Functions and
powers of these Local Bodies are governed by the relevant Local
Acts and Rules / Byelaws made in accordance with such Act. These
Local Bodies are regarded as desirable Customers because they have
substantial amount of funds at their disposal. However, operations
on these accounts must be conducted strictly in accordance with the
statutory rules and regulations.

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13. Special Convertible Rupees Account (SCRA).
As per the Foreign Exchange Manual Chapter 20, SCRA can be
open by Nonresidents for the purpose to trade in the shares quoted
on the Stock Exchanges in Pakistan. Such accounts can be fed by
remittances from abroad or by transfer from a foreign currency
account maintained by the non-resident investor in Pakistan. The
balance available there in can be used for purchase of any share
quoted on the Stock Exchange. Branches will be required to submit

weekly statement in the prescribed Performa (V-92) of FE- Manual

showing the position in respect of SCRA accounts as on each
Saturday.

14. Staff Accounts.

Staffs can open only one saving or current account singly or
jointly with his / her spouse at the time of appointment in the
respective branch of Meezan Bank Limited. The account will be
opened for the purpose of salary disbursement (like salary, bonus,
increments, allowance or any form of reimbursement from Meezan
Bank Limited against services rendered by employee).

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 Documentation of Opening an Account.
1. Individual accounts:
1. Copy of CNIC.
2. Any proof of Income (salary slip/ NTN).
3. Any Utility Bill (for Address Verification).

2. Proprietorship Account:

1. Copy of CNIC.
2. Proof of proprietorship (NTN Certificate).
3. Account Opening Request & Proprietorship letter on Firms
Letter Head.
4. Any Utility Bill (for Address Verification).

3. Minor Account:
1. Copy of CNIC of Guardian.
2. Copy of Birth Certificate.

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 3. CNIC copy of Guardian.

4. Partnership Accounts:
1. Registered Partnership Deed (Certified Copy).
2. Letter of Authority & Mandate.
3. Copies of CNICs of all partners.
4. Account opening Request Letter on firm’s Letter Head.

5. Limited Company:
1. Copy of Certificate of Incorporation.
2. List of Directors.
3. Memorandum & Articles of Association.
4. Board Resolution.
5. Certificate of Commencement of Business (for Public Ltd. Co.).
6. Copies of CNICs of all Directors/Signatories.
7. Latest copy of certified Form-29.

6. Club/ Society/ Association:

1. Copy of Rules/By-Laws.
2. Copy of Registration (if applicable)
3. List of executive Member/Management Committee/Management
Board etc.
4. Certified Copy of Resolution.
5. CNICs of all Members of Management Body & Signatories.
6. Undertakings to immediate inform the bank in writing about
any changes in Management Committee/ Authorized persons.

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NOTE:
 These all documents are required original, bank itself
get the photocopy of these documents.

 Housewives/Students/Retired Personal: Documents as

requested by branch.

Investment Certificate issued by

Meezan Bank Ltd.

To facilitate the customer through opening

accounts of different types, Meezan Bank also issues

some investment certificates through which they

could benefit customer. The customer could easily

invest in different types of certificates of different

investments and could get profit at attractive rates.

These certificates are as under:

1. Certificate of Islamic Investment-COII.

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 These certificate requires the minimum

investment of 50,000/=. These certificates are of

three types one of them is for 3 months-5 years

and the profit distribution of this type certificate is

nd
at the maturity of payment. 2 is for 1year-5 years

and profit distribution of this is quarterly and the

rd
3 and last which is for 5 years and profit

distribution is on monthly basis but its investment

is minimum 200,000/= rupees.

2. Monthly Mudarabah Certificate-MMC.

The Monthly Mudarabah Certificate is the

flexible investment product, which has been

designed to give customers a monthly return, which

is purely halal. These certificates require the

investment of 100,000/= rupees, and

the profit distribution is on monthly basis. As the

investment increases the distribution rate also

increases.

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3. Meezan Aamdan Certificate-MAC.

Meezan Aamdan Certificate (MAC) is the long

term investment with high monthly profit especially

designed for those individuals and corporations

who are in need of regular stream of monthly

income. MAC is therefore, a monthly income

(Mahana Aamdani) certificate with a variety of free

packaged benefits. The minimum investment for

this certificate is 1, 00,000/= rupees. These are

issued for two different tenures i.e. for 51/2 and 7

years. The 7 year certificate has more attractive

profit distribution as compared to 51/2.

4. Meezan Providence Certificate.

These certificates are issued only for

institutions, registered or unregistered Employee

Provident / Gratuity / Pension Fund,

Which wants invest in such reputed and Islamic

organization to earn totally Riba-free profit? The

minimum investment required for this type of

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 certificate is 1 Million. This certificate bears

different tenures; it starts from 2 years to 7 years.

As the tenure grows the rate of profit also

increases.

5. Dollar Mudarabah Certificate.

This Monthly Mudarabah Certificate is same

as the above Monthly Mudarabah Certificate, but

the difference is this certificate requires

investment in Dollars and that is $ 10,000/=. And

the profit is distributed in Dollars.

Packages Launched by Meezan

Bank Ltd.
Meezan bank Ltd launches different packages

purely Riba-free only for the betterment of

customers, and strive towards the pure Islamic

Banking, to fulfill the customers banking needs

according to Islam. Those attractive products are:

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 1. Meezan Labbaik Umrah.

2. Meezan Labbaik Ramadan Umrah.

3. Meezan Labbaik Hajj.

1. Meezan Labbaik Umrah:

Meezan bank launches Umrah packages (a Holy

Journey With Comfort & Convenience) for their

valuable customers at attractive rates.

The Meezan Labbaik Umrah product is classified into

three categories:

I. Labbaik Travel Aasaan – Pay today and Perform

Umrah now.

II. Labbaik Travel Aasaan (Installment Option)- Perform

Umrah now and pay later

III. Labbaik Saving Aasaan -Save today and plan for

Umrah or Hajj.

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I. Labbaik Travel Asaan:
 Pay today & perform Umrah or Hajj now after processing and
documentation.

 As per Saudi Pak Bank and EGIB experience; approximately 50% of

our target customers will likely opt for Travel Aasaan as most of the
pilgrims are not satisfied with the services of travel agents and prefer
Bank as Banking is a trust business.

 Bank will act as a commission agent of the travel agent and will
announce the package as its partner.

 Bank will charge a lump sum fee and agent will provide the agreed
services; here Bank will make sure the services are provided as per
commitment by using continuous monitoring & follow ups.

The package charges schedule is as under:

Description No. Of People Airfare + Package Total

Adult 2 55,700+40,000 1,91,400

Child (75% of Adult) 1 41,775+30,000 71,775
Infant (10%of Adult) 1 5,570+4,000 9,570
Package Price 2,72,745

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II. Labbaik Travel Aasaan (Installment Plan):

 Perform Umrah now and pay within 12 easy monthly

installments. MBL will collect 10% of package price as Down

Payment and first installment.

 As per Financing Contract bank approves or disapprove the

application, in case of approval bank sends Customer for
Umrah after processing of Visa, documentations and other
arrangement. Incase of Rejection, Bank will pay back the
Deposited amount.

 Processing Charges at Actual: The Bank will conduct credit

assessments like NADRA, ECIB, Data Check and Physical
Verifications and Documentations and debit customer account
with the actual direct expenses.
 These Charges will be applicable in case of approval or
rejection both.

Description No. Of Airfare+ Package Down Payment 12Equal

People Package Price (10% of Monthly
package price)
Installments
Adult 2 55,700+40,000 1,91,400 19,140 14,355
Child (75% 1 41,775+30,000 71,775 7,178 5,383
of Adult)
Infant 1 5,570+4,000 9,570 957 718
(10%of
Adult)

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 The salient points of Labbaik Travel Aasaan (Installment
Plan) are:
 Riba free 12 months financing.
 Package price for Upfront & Installment Plan would be the
same.
 Success is based on the processing time.
 Account Opening Mandatory.
 Default is likely very low, pilgrimage being an Islamic duty.

III. Labbaik Saving Aasaan:

 Save today and plan for Umrah or Hajj.

 Select Monthly Deposit plan according to expected package

price.

 Deposit Calculator will be available at branches & on Bank’s

website.

 Customer will deposit fixed amount each month.

 Once the deposited amount reaches the package

price the Customer can fulfill the desire to

perform Umrah/ Hajj. Pilgrimage to be performed

on some future date (6 months to 20yrs).

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  Bank will give special profit to the Customer on

Mudarabah basis.

 The saving account will be a non-checking

account i.e. no ATM or check book will be issued.

Withdrawal from the Scheme

Option available any time, without any penalty imposed by

closing his account.
At maturity Customer will have the option to take his deposited
amount with profit and utilize for any purpose he may deem fit.
It will not be mandatory to utilize the amount for Meezan Bank Hajj
or Umrah Scheme. The Customer may select packages by other tour
operators.

Change of Plan

Customer will have the option to switch from Labbaik Saving

Aasaan to Labbaik Travel Aasaan or in case of Umrah to Labbaik
Payment Aasaan any time without having any penalty subject to the
fulfillment of eligibility criteria.
In this scenario the customer will enjoy the benefits of the profits as
per the Labbaik Saving Aasaan.

35
Package Features.
 These Umrah Packages are only for 15 days.
 Recommended for families and groups.
 Stay in KSA is 14 nights i.e. 4-Ngts. In Makkah, 7-Nghts. In
Madinah & 3-Nights. In Makkah.
 Accommodation in A-Category Hotels in Makkah & Madinah.
 Roundtrip transfer in Air-Conditioned Buses (Jed-Mak-Med-
Meeqat-Mak-Jed).
 Complete Umrah Visa Processing.
 Meet & assist services through trained staff in KSA.
 Ziarat in Makkah & Madinah with Urdu speaking guide.
 Weekly group flights with confirmed returned air ticket.
 Double Umrah Facility.
 Tawaf Al-widaa.
 Arrangement of Zam Zam 10 liter can (subject to availability).

NOTE:

 Qurbani (NAHR) is not a part of the Package.

 Airfare is not included in the package price, which will be
charged at actual; after announcement of rates from selected
Airlines.
 Complete advance payment shall be made at the time of
booking.
st
 Last date for booking is July 31 2009.

 MBL is just facilitating the sales whereas travel arrangements

are the responsibilities of the selected Travel agent.

36
Requirements:
 Copy of Machine Readable Passport with at least 1 year
validity.
 12 Photographs 4x6 cm (light blue background).
 Copy of CNIC.
 Copy of deposit slip.

Consumer Banking Products Offers By Meezan

bank Ltd. on Musharakah Basis.

Musharakah:

Musharakah is the type of Partnership in which

both the partners invest equally, and share their

profit & losses equally.

Difference B/w Musharakah & Mudarabah.

Musharakah:

 In Musharakah both parties invest.

 Both parties work.

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  In Musharakah the profit and losses shared

equally.

Mudarabah:

 In Mudarabah one party invest (Rab-ul- Mal) and

other party work (Mudarib).

 Profit is shared as per agreed ratio.

 In case of Mudarabah all losses are borne by

Rab-ul- Mal.

Consumer Banking Products are:

1. Murabah.

2. Car Ijarah.

3. Easy Home.

1. Murabah.

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Murabah is the type of short term financing in

which Bank is the owner of product and purchase

that for the customer. Like other banks Meezan

bank is not providing the loan to the customer,

but if they need any type of product like

Machinery etc for his use. Bank has no expertise,

so banks make the agent to that person, he will

buy himself and then hand it over to the bank.

Then bank will give him on cost plus profit. If

during buying any type of sudden accident occurs,

the whole loss will be borne by the bank because

the is owner of that material.

2. Car Ijarah.

Car Ijarah Pakistan’s First Islamic Car Financing:

39
 As a step towards our mission of providing a one-

stop shop for innovative value added Shariah

compliant products to

Our customers Meezan Bank is pleased to offer ‘ Car

Ijarah’- a car financing, that is based on the

principles of Ijarah and is free of the element of

interest.

Car Ijarah

Car Ijarah is Pakistan’s first “Interest Free” car

financing based on Islamic financing mode of Ijarah

or Islamic leasing. This product is ideal for interest

averse individuals, looking for a car financing that

provides the convenience of a well designed product

while avoiding an interest based transaction.

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Car Ijarah is simply a rental agreement under which

the car will be given to the customer on rent for a

period, agreed at the time of the contract. Meezan

Bank purchases the car and rents it out to the

customer for a period of 3, 4 or 5 years. Upon

completion of the lease period he customer gets

ownership of the car against his initial security

deposit.

What makes Car Ijarah unique?

Some of the key characteristics of Car Ijarah are as

follows

Rights & liabilities of Owner v/s User

41
 An Islamic Ijarah is an asset-based contract, i.e.

the lesser should have ownership of the asset during

the currency of the contract. Under Islamic Shariah,

all ownership related rights and liabilities should lie

with the owner while all usage- related rights and

liabilities should lie with the user. A conventional

lease contract does not distinguish between the

natures of these liabilities and dumps all liabilities

on the user, which is contradictory to Islamic Shariah.

Under Ijarah, all ownership- related risks lie with the

Bank while all usage related risks lie with the user,

thus making the Lesser the true owner of the asset

and making the income generated through the

contract permissible (Halal) for the Bank.

Continuation of lease rentals in case of total

loss or theft of vehicle

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 If the leased vehicle is stolen or completely

destroyed, the conventional leasing company would

continue charging the lease rent till the settlement of

the Insurance/Takaful claim. Under the Islamic

system, rent is consideration for usage of the leased

asset, and if the asset has been stolen or destroyed,

the concept for rental becomes void. As such, in the

above-mentioned eventualities, Meezan bank does not

charge the lease rental.

Does Meezan Bank use Takaful or conventional

insurance to insure its vehicles?

MBL is insuring its Car Ijarah vehicles through

Takaful arrangement with Pak Kuwait Takaful

Company, Pakistan’s first Takaful provider. These

company has started operations in Karachi and Car

Ijarah vehicles of Karachi are now being covered

43
through Takaful. As the operations of Pak Kuwait

Takaful expand into other cities of Pakistan, Car

Ijarah vehicles in other cities will also be insured

through Takaful. MBL’s present insurance

arrangement will be available for cities where Takaful

is not presently available since Leased assets are

required to be insured under the law. However,

Meezan Bank’s Ijarah arrangement clearly states that

Meezan Bank will use conventional Insurance only as

long as Takaful is not available, and we are now

clearly on the road to having all our Car Ijarah

vehicles insured through Takaful.

Is there a Penalty for Late Payment of Rent and

how is this permissible under Islamic Shariah?

44
In most contemporary financial leases, an extra

monetary amount is charged if rent is not paid on

time. This extra amount is the considered as Riba and

is Haram. The leasing institution in their income

takes this amount. Under Ijarah, the Lessee may be

asked to undertake that if he fails to pay rent on its

due date, he will pay certain amount to a charity,

which will be administered through the Islamic Bank.

For this purpose the bank maintains a charity fund

where such amounts may be credited and disbursed

for charitable purposes.

Key Features of Car Ijarah

 No application fee

 Ease of acquiring any new l9ocally assembled car

 No upfront insurance/Takaful Payment

45
  No advance Rental

 Available in tenures of 3, 4 and 5 years

 Minimum-security deposit as low as 15%

Car Ijarah also features used Vehicles

In addition to our leasing of new cars, we also

provide the unique opportunity of leasing second

hand locally assembled vehicles as well. This feature

is specifically designed as a very

economical option as well. With a minimum-security

deposit as low as 20%, our used Car Ijarah facility is

at your service.

Used Car Selection Criteria

46
Selecting a used car is very simple, all you need to

ensure is:

That the second hand car you select should be from

its first owner. The Vehicle should not be older than 5

years when selected by you for Car Ijarah. The

minimum-security deposit for a vehicle up to 2 years

of age is 20%, while minimum security deposit for a

vehicle over 2 years of age is 30%. At the time of

termination of our Ijarah agreement, the vehicle

should MPT NE ,PRE TJAM 8 YEARS OLD. This means

that if a car is 5 years old, the Car Ijarah tenure is

not more than 3 years and if its 4 years old, the

tenure may be set for a 3year or 4 year term. This

facility is for locally manufactured cars of Suzuki,

Toyota, Honda, new model of Santro and imported

reconditioned cars. Second hand vehicles selected

47
should not be worth more than Rs.1 million or less

than Rs.250,000/-. Meezan Bank will have the vehicle

valued by an independent valuation company

accordingly.

Approved by Meezan Bank’s Shariah Board

Car Ijarah is designed under the supervision of

Meezan Bank’s Shariah Supervisory Board and is

approved by the Board.

Rental Calculations

To calculate the monthly rentals simply multiply

the cost of the car with the rental factors given in

the table below

48
Rental Calculation for new cars

Security 3 years 4 years 5 years

Deposit
10% 0.033988 0.028131 0.025341
15% 0.032303 0.026765 0.024125
20% 0.030619 0.025398 0.022909
25% 0.028934 0.024032 0.021693
30% 0.027249 0.022666 0.020478
35% 0.025565 0.021299 0.019262
40% 0.023880 0.019933 0.018046
45% 0.022195 0.018567 0.016830
50% 0.020511 0.017200 0.015614

For example: if you are interested in a car

costing Rs.300,000 for a tenure of 5 years and are

willing to pay a 50% Security Deposit, your monthly

rental would be,

Rs. 300,000 X 0.015614 = Rs. 4,84/- per month for 5

years

(** All other costs will be charged at actual)

49
Rental Calculation for used cars

Security 3 years 4 years 5 years

Deposit
15% 0.032519 0.026990 0.024364
20% 0.030823 0.025611 0.023135
25% 0.029126 0.024232 0.021906
30% 0.027429 0.022853 0.020676
35% 0.024572 0.021474 0.019447
40% 0.024036 0.020095 0.018218
45% 0.022339 0.018716 0.016989
50% 0.020642 0.017338 0.015760

For example: If you are interested in a car

costing Rs. 300,000 for tenure of 5 years

And are willing to pay a 50% Security Deposit, your

total monthly rental would be:

Rs. 300,000 X 0.015760 = Rs. 4,728 per month for 5

years

(** All other costs will be charged at actual)

50
Documentation required for Car Ijarah

It is very easy to apply for Car Ijarah, just bring

the following documents.

 Copy of CNICs.

 Two recent passport sized photographs

 Recent Utility Bill (Electric/Gas/Water) received

at the residential address

 Last Six Month Bank Statement

 Last Six Month Bank Statement of Business (for

Businessmen)

 Certified/Original copy of Recent Pay slip (for

Salaried Individuals)

 Copy of Rent Agreement (if applicable)

51
How can I apply?

Simple! All you need to do is fill out a customer

application form, attach the required documents

mentioned in the form and get your financing

approved in a 1-2 working days. To experience the

comfort of our personalized services just visit your

nearest Meezan Bank Branch.

3. Easy Home.

Meezan Bank’s “Easy Home”

Your own home, the Riba-Free way.

First complete Islamic Home Finance Facility in

Pakistan!

52
Welcome to Pakistan’s long awaited totally Shariah-

compliant

Housing Finance facility; approved by Meezan Bank’s

renowned Shariah supervisory Board Easy Home is

comprehensive, affordable, and totally hassle-free.

For at Meezan Bank, we are committed to meeting our

customers’ needs, in a truly Shariah- complaint

manner coupled with dedicated service excellence.

Why is Halal home finance so important to you?

Owning your own home is one of life’s most

important achievements. It represents your security,

stability, and is a great blessing in itself. It provides

that all-important safety and comfort for you and

your loved ones. However, in today’s often

unpredictable and costly environment, saving the

53
required money can take a lifetime in itself. Rising

property prices, taxes, inflation, currency

devaluation… it’s all a very hard bargain. In the other

hand, owning your own home and paying an easy

installment that takes you step by step towards

complete ownership, is so much better than paying a

rent which ultimately only adds to your expenses.

Added to that is your desire to stay away from

interest based financing and be totally Riba-Free,

thus achieving that inner satisfaction and peace of

mind you desire so much. Why not have the best of

both world? Isn’t that why you are working so hard

for anyway

Islamic Financing on a Diminishing Musharakah

basis

54
 With Easy home you participate with Meezan

Bank in a joint ownership of your property, where the

Bank will provide a certain amount of financing –

usually up to 85% . You agree to a monthly payment

to the Bank of which a component is for the use of

the home (rent), and another for your equity share. In

fact, the total monthly payment is reduced regularly

as your share into the property grows. When you have

made the full investment that had been agreed, you

become the sole owner with a free clear title to the

property.

Easy Home offers you a comprehensive solution :

Easy Buyer – Buying a home is Easy & Halal

Easy Builder- Building a home is Easy &Halal

Easy Renovate- Renovating a home is Easy &

Halal

55
Easy Replacement- Replacing your existing

mortgage is Easy & Halal

Within these wonderful options come the special

benefits of Easy Home.

 Flexible Financing Tailored to Support You

 High financing amounts.

 Flexibility to make partial prepayments.

 Minimal processing charges.

 Very affordable and competitive monthly

payment plan with a regularly reducing rental

amount.

 Quick Processing Time

 Absolutely hassle-free. Quick turn-around-times,

with no burdensome complexities or excess paper

work. It’s simple, Halal, and easy!

56
  Come and take the step towards Riba free

financing for your home, made easy with Meezan

Bank’s Easy Home!

Easy Home

Buying a Home is Easy & Halal!

Choose it and be ready to move in.

Meezan Bank will finance up to 85% of the appraised

value of your new home.

Flexible financing from PKR 300,000/- to PKR 40

million.

Easy selection of financing tenure from 3 years up to

a maximum of 20 years.

Easy Builder

Building a Home is Easy & Halal!

57
 For that special home you want to build

yourself, or to help continue construction you may

have already started.

Meezan Bank will finance up to 70% of the appraised

value of your home cost.

Flexible financing from PKR 300,000/- to PKR 40

million.

Easy selection of financing tenure from a minimum of

2years (excluding construction period of max 12

months) up to a maximum of 20 years.

Easy Renovate

Renovating your Home is Easy & Halal!

Meezan Bank’s Easy Renovate!

58
 Meezan Bank may finance up to a maximum of

80% of the appraised value of your existing home

already in a “livable” state.

Flexible financing, 30% value of the property.

Easy selection of financing tenure from 2 years up to

a maximum of 15 years.

Maximum 6months required for renovation work.

Easy Replacement

Replacing your existing mortgage is Easy &

Halal

Replacing an existing Mortgage facility from another

institution. Applies to the residential apartment or

Bungalow.

59
Meezan Bank can Finance up to maximum 85% for

salaried persons and 70% for Businesspersons.

Flexible financing from PKR 300,000/- to PKR 40

Million.

Documents Required for Easy Home:

Income Information.

Salaried Person:

Copy of recent pay slip/employer letter.

Employer Certificate for Salaried employees

including tenor, designation & salary.

Last 6 months Bank statement.

Business person:

Copy of management accounts (if applicable).

Bank Statement of Business.

60
3 Years Proof of Business( e.g. Tax Return/Bank

Certificate).

Professional Association Membership

Certificate/Practice License.

Professional Degrees/Certificates.

Property Documents:

Copy of all related Property documents.

Approved Building Plan.

Processing Fee:

With Application.

Processing fee 5,000/-

Legal Charges 5,000/-

Income Estimation Charges 4,000/-

Property Valuation Charges 3,500/-

After Approval:

Legal documentation Charges.

61
Rs. 1,000(Up to 1M)

Rs. 2,500(Above 1M)

Rs. 10,000(Above 10M).

62
63
Conclusion:

Finally, thanks to Allah, due to His bounteous

blessing, we become able to contribute this

comprehensive report towards the deep knowledge of

ocean already exist. Heart is warm with love and

thoughts have turned to the city of knowledge.

Before joining Meezan bank, we were thinking that

all banks either Islamic or Conventional works under

the same policies but, after joining the Meezan Bank

64
 Ltd. we recognized that we were wrong. we don’t know

about the other banks but I could say confidently that

Meezan Bank Ltd. is working under the policies of Islam

and tries its level best towards the Islamic banking.

In this modern era in the competition of thousands of

conventional banks Meezan Bank Ltd. is fulfilling the

customer banking needs being in the “SHARIAH”. By

the grace of Allah, 166 Branches of Meezan Bank Ltd.

are servicing the customer in different 40 cities.

“I wish MEEZAN BANK success in initiating

the cause of Riba-free banking”.

TERM REPORT

65
 Meezan Bank Ltd

KASHIF AFZAL JUNEJO (FA07-BB-0033)

SYED ARSALAN MANNAN (FA07-BB-0087)

M.MUSSAIB ASIM (FA07-BB-0035)

AHSAN MAQBOOL (FA07-BB-0040)

02- Dec – 2009

SUBMITTED TO SIR SHUJJAAT SALEEM

FOR THE COURSE FINANCIAL INSTITUTIONS

Table of Contents

66
Acknowledgement……………………………………………………1

Executive Summary…………………………………………………2

Introduction…………………………………………………………..3

Shariah Board…………………………………………………………4

Share Holders in Meezan

Bank……………………………………5

Our Head Office………………………………………………………6

Introduction to Meezan
Bank……………………………………...7
(Garden West Branch Karachi)

Objectives………………………………………………………………8

Staff (Garden West Branch Karachi)

………………………………9

Organizational Structure……………………………………..
…….10
(Garden West Branch Karachi)

Accounts offered by Meezan bank on

Mudarabah Basis………………………………………………………
11

67
Documentation Of Accounts

Opening…………………………….21

Investment Certificate Issued By Meezan

bank………………..23

Packages Launched by Meezan

Bank……………………………..25

Consumer Banking Products Offered by Meezan

bank………..36

Difference B/w Musharakah &

Mudarabah………………………36

Murabah…………………………………………………………………

37

Car

Ijarah……………………………………………………………….37

What Makes Car Ijarah Unique?

…………………………………..38

68
Documentation Required for Car Ijarah………………………….45

Easy Home………………………………………………………………46

Easy Buying……………………………………………….48

Easy builder………………………..……………………..49

Easy Renovate…………………………………………….49

Easy Replacement………………………………………..50

Documentation Required for Easy home…………………………..50

Balance Sheet of Meezan Bank………..……………………………52

Profit & Loss Account Meezan bank……………………………….53

What I Learned During My Internship in Meezan Bank

(Garden West Branch Karachi)

………………………………………54

Conclusion……………………………………………………………….

56

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