1. INSTITUTE OF COMMERCE
SUBMITTED TO : MADAM MEHTAB SIDDIQUI
PROJECT TOPIC :
COMPARISON OF ISLAMIC FINANCE WITH
CONVENTIONAL BANKS
SUBMITTED BY :
 SYED AMAN SHAH (2K12/COM/127)

2. INTRODUCTION :
• ISLAMIC BANKING
• Islam is more than a religion, it's also a code of life that
dealswith social, economic, and politicalmatters. A
banking system that is based on the principles of Islamic
law (also known Shariah) and guided by Islamic economics.
Two basic principlesbehind Islamic banking are the
sharing of profit and loss and, significantly,the prohibition
of the collection and payment of interest. Collecting
interest is prohibitedunder Islamic law.
• CONVENTIONAL BANKS
• Conventional banksearn their money by charging interest
and fees for services. It is a financialinstitutionthat is
authorized by law to receive money from businesses and
individualsand lend money to them. They work with their
fix interest rates. They work as secular they are not
concern with any religions, their concern is just capitalize
money.

3. ISLAMIC BANKING CONVENTIONAL BANKING
1. The function and operating
modes of Islamic banks are
based on principles of
Islamic shariah
1. The function and operating
modes of conventional
banks are based on
manmade principles.
2. It aims at maximizingprofit
but subject to the shariah
restrictions
2. It also aims at maximizing
profit without any
restrictions.
3. The modern Islamic
banking system , it has
become one of the service-
oriented functions of the
Islamic banks to be a Zakat
collection center and they
also pay out their Zakat
3. It does not deal with Zakat.
4. The status of Islamic banks
in relations to its clients is
that of partners , investors
and traders , buyers and
sellers.
4.The status of conventional
banks, in relations to its
clients , is that of creditors
and debtors.
5. The Islamic banks on the
other hand , give greater
emphasis on the viability of
the projects.
5. The conventional banks
give greater emphasis on
credit-worthiness of the
clients.
6. First they buy the product
then start dealing with
you.
6.They deal without existence
of product.
7. No guarantee on principal.
Using investment concept.
7. Principal amount is fully
guaranteed.

4. About MBL :
Meezan Bank Limited (MBL) (the holding company) was
incorporatedinPakistanonJanuary27, 1997 as a public listed
company under the companies ordinance,1984.
MBL was granted a ‘Scheduled Islamic commercial bank’ license
on January31, 2002 are formally commenced operationsas a
scheduled Islamic Commercial Bank With effect from March 20,
2002 on receiving notificationis this regard from State Bank of
Pakistan (SBP) under section 37 of the Statement Bank of
Pakistan Act, 1956. MBL is the first and largest islamic bank of
pakistan.The Bank is headquarteredin Meezan House -
Karachi, Pakistan. It has a network of over 500 branches in
more than 120 cities of Pakistan.
Our Vission:
Establish Islamic banking as banking of first choice to facilitate
the implementationof an equitableeconomic system,
providinga strong foundationfor establishinga fair and just
society for mankind.

5. Our Mission:
To be a premier Islamic bank, offering a one-stop shop for
innovativevalue-added productsand services to our customers
within the boundsof Shariah.
Core Values :
Shariah-compliance,Integrity, Professionalism, Innovation,
Service, Excellence, SocialResponsibility.
Brand Personality:
A sober and established,strong, empathic, professional person;
who is an extremely loyal and dependable friend and business
partner, and is committed to offering comprehensive value-
based Shariah-compliant financialsolutions.

6. Term Certificates for Personal/Business Banking :
 Certificate Of Islamic Investment
 Meezan Amdan Certificate
 MonthlyMudarbahCertificate
 DollarMudarbahCertificate
Certificate Of Islamic Investment :
The Certificate of Islamic Investment (COII) is a Mudarabah-
based deposit product through which you can invest your
savings for periodsranging from 3 monthsto 5 years and
earnHalal profit on a periodicbasis.
MeezanAmdan Certificate:
Meezan Amdan Certificate is aMudarabah-based long-term deposit
product that offers a high expected return to investors and is
ideal for those individualsand corporate clients who need a
regular stream of monthly income. The Meezan Amdan
Certificate is availablefor Individualsand businesses including
Sole Proprietorships, Partnerships and Limited Companies.

7. Monthly Mudarbah Certificate:
The Riba-Free MonthlyMudarabah Certificate (MMC) is a short-term
deposit product which has been designed to give you expected
monthly returns. The minimum investment is required 1lac
rupees.
Dollar Mudarbah Certificate :
The DollarMudarabah Certificate (DMC) is a deposit product
through which you can invest your US Dollarswith Meezan
Bank for periods ranging from 3 months to 3 years and earn six-
monthly or at maturity profit paymentson your investment.
The minimum investment is required 10,000 USD. The Dollar
MudarabahCertificate is an idealinvestment for Individuals,
Sole Proprietorships, Partnerships and Limited Companies.

8. Mudarbah :
. 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-
ulMaal”while the management and work is an exclusive
responsibilityof the other, who is called“Mudarib” and the
profits generated are shared in a predetermined ratio.
Musharkah :
According to this concept, a financier and hisclient participate
either in the joint ownership of a property or an equipment, or
in a joint commercial enterprise. All partners share the loss to
the extent of the ratio of their investment.
Murabaha :
Murabaha is a particular kind of sale where the seller expressly
mentions the cost of the commodity purchased, and sells it to
another person by adding some profit thereon. Thus, Murabaha is
not a loan given on interest; it is a sale of a commodity for
cash/deferred price.

9. Deposits Accounts For Personal Banking :
Meezan Bank offer the largest range of Riba-free Deposit
Accounts for Personal Banking
 Rupee Saving/Current Account
 Labbiak Saving/Current Account
 Rupee Saving/Current Account
 Dollar Saving/Current Account
 Euro Saving/Current Account
 Pound Saving/Current Account
 Meezan Bachat Account
 Business plus Account
 Meezan Saving/Current Account
 Kids Club Account
 Teens Club Account
Consumer Finance :
Consumer finance provides for construct a home, purchase a
car, etc:
 Easy Home
 Car Ijarah
 Laptop EaseMeezan Roshni

10. Electronic Banking :
Electronic Banking provides non-stop banking convenience,
twenty four hours a day, seven days a week.
 Visa Debit Card
 Titanium Master Card
 Internet Banking
 ATM Network
 Meezan Quickpay
 Meezan Webpay
 SMS Alerts
 24/7 Call Center
 Meezan Mobile Banking App
 Inter Bank Funds Transfer
Services :
Meezan Bank is dedicate in its efforts to provide a quality
banking experience to our customer via a range of unique
Banking Services.
 Home Remittance
 Labbaik Travel Aasaan
 Online Banking
 8 to 8 Banking
 Western Union Money Transfer

11. Shariah Supervisory Board:
Successful implementation of the Islamic Banking model rests
upon absolute adherence to the principles of Islamic Shariah. A
world-renowned Shariah Supervisory Board and a highly
qualified and experienced in house Shariah Advisor are
fundamentalaspects of the Bank's core. The primary role of this
Board is to maintain and further strengthen this commitment
and to ensure strict Shariah-compliance in all areas of the
Bank's operations.
Members Of The Board :
 Justice (Retd.) Muhammad Taqi Usmani (Chairman)
 Sheikh Essam M. Ishaq
 Dr. Muhammad Imran Ashraf Usmani (Resident Shariah
Board Member)