Internship Report on Meezan Bank Limited

Submitted To:

Mr. Rashid Saeed

Submitted By:

Zia Ul Rehman

BBAML-16-02

BBA 7th(Morning)

BZU, BAHADUR SUB CAMPUS LAYAH

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 Dedication

I dedicate this report to

Almighty Allah, The Creator of worlds

And

Hazrat Muhammad (P.B.U.P), the cause of

The creation of the Universe

And

To my parents,

To the persons who loved me, persons whom

I loved and for all those who prayed for me.

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 Acknowledgement
Boundless praise and gratitude to Allah Almighty, the most beneficent, the most merciful, the
source of all knowledge, wisdom and guidance who taught man to read and write with pen and
blessed him with knowledge to not only embark upon this noble and sacred work.

We are nothing but what our great teachers made us, who enriched us with the light of
knowledge and in their guidance, who soar high to eternal heights of character and wisdom. The
completion of this report is only due to the assistance and encouraging attitude of our respected
instructor Sir Rashid Saeed Sb who enabled us to complete this internship.

I express my deepest thanks to Mr. Muhammad Asif (Branch Manager), Mr. Muhammad Shoaib
(Operation Manager), and all other staff and employees of Meezan Bank Fateh Pur branch for
their careful and precious guidance which are extremely helpful during my training session and
for the facilities that they arranged to make my work easier.

I am also highly thankful. to my faculty under whose able guidance I completed my internship
program successfully.

I also pay my gratitude and thanks to my siblings for their gentle encouragement and support.

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 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.

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 Table of Content

Contents Page No.

Dedications 02

Acknowledgement 03

Executive Summary 04

Introduction of company 06

Vision 10

Mission 10

Department and function 10

Product & Service 12

Swot Analysis 13

Pest Analysis 14

Work done during internship 15

Class Room Application & Learning 20

Suggestion & Recommendation 22

Conclusion 23

References 24

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 History

Meezan Bank, Pakistan’s best bank and the first and largest Islamic bank, is a publicly listed
company with a paid-up capital of Rs. 12.8 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 licence by the State Bank of Pakistan.

The Bank provides a comprehensive range of Islamic banking products and services through a
retail banking network of more than 650 branches in more than 180 cities of the country. Backed
by a state-of-the art T-24 core banking system, the branch network is supported by 24/7 banking
services that include over 660 ATMs, VISA and MasterCard Debit cards, a Call Center, Internet
Banking, Mobile Application and SMS Banking facility.

The Bank operates strictly under the principles of Islamic Shariah and is well-recognized for its
product development capability, Islamic banking research and advisory services. In order to
ensure strict Shariah-compliance in all its products and services, the Bank has established a
dedicated Product Development and Shariah Compliance department that operates under the
supervision of the Bank’s in-house Resident Shariah Board Member and a Shariah Supervisory
Board comprising of internationally renowned Shariah scholars.

Meezan Bank has been recognized as the ‘Best Bank in Pakistan’ by Pakistan Banking Awards–
the most prestigious awards in Pakistan’s Banking sector, which is a testimony of the Bank’s
commitment to excellence.The Bank has consistently been recognized as the ‘Best Islamic Bank
in Pakistan’ by numerous local and international institutions.Other awarding institutions include
Islamic Finance News - Malaysia, Global Finance magazine - New York, Asset AAA - Hong
Kong, Asiamoney – Hong Kong, The Banker – United Kingdom, South Asian Federation of
Accountants, Islamic Finance Forum of South Asian Awards, Pakistan Banking Awards – Dawn
& IBP Pakistan, Employers Federation of Pakistan and CFA Association - Pakistan.

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Organizational Structure of Meezan Bank Limited:
SHARIAH SUPERVISORY BOARD:
The letter and transmittal of Islamic banking rest upon absolute adherence to
the Shariah. The foundations of strong sharia underpinning at Meezan bank were laid from the
beginning. A world-renowned sharia supervisory board and a highly qualified in house Shariah
advisor are fundamental factors of bank core USP.The primary role of this board is to maintain
and further strengthen this commitment and to ensure strict sharia compliance in all bank
operations. The members of sharia supervisory board of Meezan bank are renowned
internationally scholars, serving on the board of many Islamic banks operating in different
countries.

The members of Board are:

1. Justice (Retd.) Muhammad Taqi Usmani (Chairman)

2. Dr. Abdul Sattar Abu Ghuddah
3. Sheikh Essam M. Ishaq
4. Dr. Muhammad Imran Ashraf Usmani (Advisor)
Board of Directors:
The board of directors of Meezan bank are:
1. Mr. Riyadh S.A.A Edrees (Chairman)
2. Mr. Faisal A.A.A Al Nassar
3. Mr. Badar H.A.M.A Al Rabiah
4. Mr. Alaa A. Al- Sarawi
5. Mr. Saad Fazil Abbasi
6. Mr. Muhamed Guermazi
7. Mr. Noorur Rahman Abid
8. Ms. Nausheen Ahmad
9. Mr. Atif Azam
10. Mr. Irfan Siddiqui (President & CEO)

Share Holders in Meezan Bank

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Share Holders of Meezan Bank 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.
 Saudi-Pak Industrial & Agriculture Investment Company (Pvt) Ltd.
Meezan Bank Head Office:
Head Office of meezan bank 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
24/7 Call Center 111-331-331.

Organizational Structure
As they already introduced Meezan bank Ltd (Garden West Branch Karachi). So, the 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 are directly related to Branch
Manager and reports him about customer relationship & services provided to them, and about
deposits targets of concerned bank.

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 Branch
Manager

Operation
Manager

Chief Cash Cash Accounts

opening Personal Liability Sales
Officer Deposit Officer Banking
Officer

BDOs
Cash Officer Sorter
Sorter

Clearing Officer Remittance

Officer

Departments/Sections of Meezan Bank Limited:

There are following two main departments of MBL which further sub divided
into different sections which are as follow:
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 1. Personal Banking Department:
 Bank Accounts
 Term deposits
 Consumer Finance
 Home remittance
 Meezan Upaisa
 Premium Banking
2. Business Banking Department:
 SME Business Banking
 Corporate Banking
 Islamic Advisory Services
 Agricultural Finance
 Correspondent Banking
 Asset Management

Vision Statement:

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.

Mission Statement:

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.

Our 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 660 branches in 180 cities across

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Competitor:
 Muslum commercial bank
 Al Barka Islamic Bank
 Soneri Bank Ltd
 Bank Al Falah Limited
 Bank AL-Habib
 ABL
 Faysal Bank Ltd
 National Bank
 UBL

PMYBL SCHEME:

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

Small Entrepreneur

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

Micro Entrepreneur

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

Agriculture (Tractor Ijarah)

Young farmers who require Tractor financing.

Car Ijarah

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

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Types of Accounts

Local Currency Accounts

 Rupee Current Account – A Convenient, Secure and Stable Deposit Account
 Rupee Saving Account – Ensuring Truly Halal Saving Account with Comprehensive
Return
 Mezzan Bachat Account- The convenience of a Saving Account with Profit
 Labbik Saving Asaan – A specialized Saving Account designed to save for Umrah & Hajj
 Business Plus Account- Serving you the perfect blend of convenience and flexibility
 Meezan kids Club Account- Specialized saving account for kids under the age of 12 year
 Meezan Teen Account- Mudarabah based saving account specifically for teens
 Mezzan Assan Current Acount- A Convienent, Secure and stable Deposit Account
 Mezzan Assan Saving Account- Ensuring Truly Halal Saving with Comprehesive Return

Foreign Currency Account

 Dollar Current Account

 Dollar Saving Account
 Euro Current Account
 Euro Saving Account
 Pound Current Account
 Pound Saving Account

Other Services:
 Term Deposits:
 Home Remittance:
 Premium Banking:

SWOT Analysis
SWOT Analysis can be very helpful for every organization to get large number of benefits by
just checking their Strengths, Weaknesses, Opportunities and Threats. In SWOT two types of

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factors are calculated internal factors are Strengths and Weaknesses where External factors are
Opportunities and Threats. SWOT Analysis tells the accurate position of business and tells what
type of actions should be taken by Managements to improve the organization

Meezan Bank being a quality organization strives to provide quality to all its stakeholders,
customers, employees and environment. In Pakistan, it is operating in a very volatile
economic and political environment. I have summarized its major strengths, weaknesses,
opportunities and threats in the following paragraph

Strength

 Pakistan's largest Islamic bank

 Largest market share of Pakistan's Islamic banking sector
 Comprehensive menu of truly Shariah-compliant products and services
 Strong financial indicators
 Dedicated Shariah Supervisory Board comprising of world-renowned Shariah scholars
 Dedicated department for Shariah compliance, research and Shariah Audit

Weakness

 Limited opportunities for investment of surplus liquidity

 Limited availability of human resources with Islamic banking knowledge

Opportunities

 Increasing awareness about Islamic financial services and demand for Shariah-compliant
products and services
 Growing local and international Islamic banking market
 Significant potential for market penetration

Threats
 Macro-economic challenges
 Conventional banks entering Islamic banking market

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  Misconceptions and misunderstandings among the general public about Islamic banking

PEST Analysis
Political
The current situation of the government in Pakistan is directly affecting the policies of banks.
However, MBL tries hard to keep its business away from the politics but it is not an easy task.
MBL has no accounts of political leaders or parties. However, its Customer Service Department
faces peer pressure from such political parties.

As MBL is trapped in dual sanctions from the State Bank of Pakistan (SBP) and from the
European Union so the changing political environment is not so beneficial for the bank to
operate freely. The changing policies of the government, affects SBP which in return affects the
MBL rules and policies.

The government of Pakistan has privatized most of the banks. The number of government owned
banks have declined constantly, so these changes directly affect MBL.

Economical
The economy of any country has deep impact on any financial organization. Economic indicators
include Gross Domestic Product (GDP), inflation, balance of payment, debt of the government.
These below graphs will explain how economic conditions of Pakistan are adversely affecting
the banking system of Pakistan.

The pitiable economy of Pakistan and instable government is adversely affecting MBL and its
different departments; recently MBL has redundant many of its employees. The economy of our
Pakistan is very poor. Due to poor economy businesses are showing low profits and Pakistan
stock market is in great danger. Pakistan’s foreign debts are rising day by day, so such a situation
is a huge challenge for MCB to survive. Due to financial crisis in Pakistan the management of
MBL has to face stressful situations and also working environment. At present the MBL is not
extending loans but recovering the existing ones.

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Social
MBL has been influenced by the socio-cultural factors. At present most of the European
countries are keeping their eyes on Pakistan as being the terrorist country, so people of Pakistan
are emotionally getting affected by it. Most of the foreign investments have been stopped in
Pakistan. Pakistani people are traditionalists who do not like the modern banking environment of
MBL. Some of the customers do not use ATMs they still prefer cash counters, so these kinds of
socio-cultural factors affect the banking environment and its operations.

Technological
Technology has a deep influence on different kinds of organizations whether banks or any kind
social welfare organizations. In MBL technology has great effect on the working environment.
Mostly all banks use computers none of the banks keep data manually so the bank has to be
continuously in touch with the modern ways of task performance. MBL is always ahead to
introduce new computer systems for keeping its staff up to date. The intranet facility is playing
an important role in enhancing the knowledge of staff. Due to technology that bank staff keeps in
touch with the customers through e – mail; ATMs and online banking is only possible due to
technology. In this way technology is playing its key role in and is helping management to
further improve its functions.

Departments where I worked as internee

During my internship period I work in

 Account Opening Department

 Cash Department
 Clearing Department
 Remittance Department
 Advances & Credit Department
 Foreign Exchange Department

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 Work Experience
st
1 week:

In my first weeks worked in the account opening departments. It is important department of the
bank because all the working of the bank base on account and the bank account shows the
deposit of the bank if any person working with the bank or the organization then first step is the
account opening and my work is in the department is to open the new account for a valuable
customer and I learned that there is few many document which is use in the opening of new
account. There are many Current account, Saving account, these have different specification of
the customer which will gave benefit of him.

Documentation of Opening an Account.

1. Individual accounts:
 Copy of CNIC.
 Any proof of Income (salary slip/ NTN).
 Any Utility Bill (for Address Verification).

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

3. Minor Account:
 Copy of CNIC of Guardian.
 Copy of Birth Certificate.
 CNIC copy of Guardian.

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

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5. Limited Company:
 Copy of Certificate of Incorporation.
 List of Directors.
 Memorandum & Articles of Association.
 Board Resolution.
 Certificate of Commencement of Business (for Public Ltd. Co.).
 Copies of CNICs of all Directors/Signatories.

6. Club/ Society/ Association:

 Copy of Rules/By-Laws.
 Copy of Registration (if applicable)
 List of executive Member/Management Committee/Management Board etc.
 Certified Copy of Resolution.
 CNICs of all Members of Management Body & Signatories.

2nd week:

During my internship I spent my 2nd week in the cash department and cash department is totally
deals with the cash whether the cash comes in the bank or out

from the bank during the learning in the cash department I learn the all the activities which is
perform in the cash department .in the cash department there is various sub

department according to the categories which are performing by the different persons in the
department in the cash department there are four to five counters in which include

 The issuance the token

 Receipt counter or the cash deposit counter
 Payment of cash and checks
 Verification and clearance the check and account counter
 Bill and fee receive counter
During my learning process I learned that first of all issue the token to the customer and then
in the receipt counter receive the cash and maintained the account and then if a customer have a
check then the cheque is verifies by the verification person and then the casher makes the
payment against the cheque and also transfer the money online and maintained the all activities
which is casher duties i.e. give the cash to the valuable customer and the bill and the fees receive

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counter receive the bill payment and the fees and maintain all the activities related to bill and
fees collection.

The activities of the cash department of MEEZAN BANK (Ltd) is as under

 Source of cash
 Management of cash
 Deposits
 Demand draft and the online maintains
 Treatment of surplus cash
 Treatment of the cash deficit
 Cash transit
 Issuance of cash
 Security arrangements
 Verification of cheque
 Receive the bill and the fees collection
This is the most important department of the bank I leaned while working in this
department that there is all about maintains of the cash in this department in the staff work very
carefully make sure there is no mistake and in the closing at evening both the sides of the cash
account is balanced or equal then the banks makes the profit.

3rd week

My 3th week during my internship in the credit department the credit department is the one of the
most important department of the bank. The credit department is works with maintain the loan
and credit and also issue the credit after necessary verification and the security and the guarantee
to the desire limit and there is the rule and the regulation to issue the credit and loan to the
customers.
4th week

In this week I learned Credit department of MEEZAN BANK (Ltd) deals with different type of
running finance and the type of loan is as under

 Cash finance

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  Demand finance
 Term finance
 Short term and loan term loan
If the individual wants to take the loan from the bank then there is the limits of the loan which
provided by the bank to any person or the organization. I leaned that for the purpose of loan
giving by the bank there is few many document and the guarantee required by the bank
according to the loan type the requirements is as under

1. Account number of the borrower and the account type

2. Nature of the business and the main products
3. Name of the borrower
4. Purpose of the loan whether it is for partnership or proprietor business
5. Type of the business
6. Details in case of firm and companies associated with the loan
7. And the current financial position of the business
8. And the accurate financial statement of the business last two years or more
5th week:

My 5th week is all about the clearing department. I learned the work and the function which is
performed in the clearing department. This department the important department of the bank

I learn that clearing is the process in which bankers settle there mutual accounts by the
claming the arising account of various instruments presented by one bank drawn on the other
banks in a same city or the outside the city through NIFT (National Institutional Facilitation
Technologies). NIFT is the department of collection of clearing cheques of each branch, these
plays middlemen of the bank and client.

There are two types of clearing going in the bank Inward clearing and the Outward clearing .we
can say that the clearing is clear those cheque which cannot be cash at the cash counter of the
bank . the representative of the respective bank collect all the cheque and the instrument which
drawn on there and settle the account and doing the clearing function this assembly of the
representative of the bank is called Clearing house NIFT perform the clearing on the behalf of
the commercial banks in all the cities throughout the country.

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6th week:

My last week is about working in the remittances department. It is very important department in
the current scenario in this department the bank deals with transfer money and different type of
fund and also receive fund from abroad form the Pakistani community and others as well which
is called remittances

The MEEZAN bank transfer different type of fund through the different services in which the
some is mentioned below

I learnt that the money transfer and remittances have following features

1. Quick and hassle free transfer

2. There is little charges of transfer
3. And same day devilry MEEZAN BANK account holder

Application of class room learning in organization

 Class room learning is always important for the student. First of all the discipline which we
learned in the class is very essential I feel no difficulty about discipline in the organization.
 We study many subject in the class room about accounting, behavior and ethics these all
subject are perfectly applicable in the organization.
 In class room we build team work and coordination with each other team work has keen
importance in the organization.
 In class room teacher play a vital role and supervise the students and in the organization
boss plays this role.
 In class room main focus is on behavior and attitude of the students this give me great
assistance in the organization.
 We take confidence in the class by performing different activities like presentation and
demo this is greatly applicable in the organization.
 As an internee in MEEZAN bank i learnt that how practicle work is done in organization. I
also learnt,
 How company make SWOT ANALYSIS of organization
 Ethical values in the organization

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 Studying money and banking was also a success for me while working in the organization
because the concepts of mortgage, pledge, letter of credit, letter of guarantee, banks as a
mode of financing etc were already been studied in the course. So when I was questioned
about what is debt financing, what is the difference between pledge and mortgage, what is
basically finance and what is the difference between fund based and non fund based facility?
I quickly responded to the questions and for that I receive appreciation and our institute was
also appreciated.

Suggestion & Recommendation

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  I may like to suggest some points regarding improvement, development and
competitive environment for any good and required need of customers business.
Aggressive training and development programs should be launched in order to teach
employees basic skills and to increase them subsequently through mobile
training programs conducted at Regional level. Capacity building of officers should be
increased to improve efficiency levels. Through processing and sanctioning
procedure have been streamlined in line with modern lines but there is still lot to
be done in this direction.
 Promotion policies should be based on academic and professional qualification
performance rather than seniority. Intermediation and administrative cost should be
reduced to minimum level. Proper teams should be constituted which should be made
responsible for recovery of overdue and watch and ward duties of pledged stock and
surprise inspection of Hypothecated stocks and constant liaison with borrowers.

Conclusion

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Being a premier Islamic bank and an innovator in market Meezan Bank stands today at a
noteworthy and critical juncture as The Premier Islamic Bank in Pakistan and is truly leading the
way forward in establishing a real, stable, and dynamic Islamic Banking system in Pakistan. The
foundation of this being the guidance of our highly qualified and globally renowned Shariah
Supervisory Board headed by Justice (Retd) Muhammad Taqi Usmani and including renowned
scholars from the Middle East, who as a whole bring together a rich knowledge base of Islamic
Fiqh accumulated over the past1400 years. Furthermore, with the able support of the SBP's
Islamic Banking Department, all the products offered by the bank are very thoroughly
scrutinized by these Shariah specialists in Islamic finance; hence approval of these products is
not based on unqualified individual opinion or views, but on very sound assessment and
jurisprudence. However still if we go into ground realities there are issues which fall in
contradiction with Islamic jurisprudence,

But in our opinion revolution takes ample time to take effect and this effort of Meezan bank to
provide a complete range of Islamic banking products to Pakistani citizens deserves true
appreciation. We are also looking forward that in near future these issues could be resolved and
we get a banking system in true Islamic way involving all Shraih compliant practices.

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 References

www.google.com
www.meezan bank.com

Annual Reports

Visit the Meezan bank

www. Investing.com

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