This certificate certifies that Mr. Syed Aman Shah completed an internship report on Meezan Bank Limited Latifabad Branch from June to July 2015 to fulfill partial requirements for a B.S. Com (Hon's) degree. The internship supervisor, Ashique Ali Jhatial of the Institute of Commerce at the University of Sindh, certified that the report was the original work of the candidate.

1. CERTIFICATE 0F APPROVAL
This is certify that Mr. Syed Aman Shah S/O Syed Afzal Shah has carried
out this work entitle “ INTERNSHIP REPORT” On “ Meezan Bank Limited
Latifabad Branch” during session June to July 2015 .This work is carried
out to fulfill the partial requirement for the award of degree for B.S COM
(HON’S). The work is here by certified the original achievement of the
candidate.
ASHIQUE ALI JHATIAL
Internship Supervisor:
Institute of commerce
University of Sindh
1

2. INSTITUTE OF COMMERCE
2

3. 3

4. Internship Report on
Meezan Bank Limited
Latifabad Hyderabad
Submitted By: Syed Aman Shah
2k12/Com/127
4

5. ACKNOWLEDGEMENT
I am highly thankful to my respectable teachers and friends and family members
who were my supporter throughout my educational career, further I thank all the
employees of the branch Meezan bank Limited, where I have done my internship.
I have set light, an ever-burning flame of gratitude and deep sense of obligation to
my honorable teachers for their valuable guidance, constructive criticism and
inspiring attitude during my studies. I appreciate and thanks to all the member of
the faculty. Besides, this internship program makes me realize the value of
working together as a team and as a new experience in working environment,
which challenges us every minute. Not forget, great appreciation go to the rest of
Bank’s staff that helped me to write internship report on Meezan Bank from time
to time during the project. The whole program really brought us together to
appreciate the true value of friendship and respect of each other.
Dedication
I dedicate all my efforts and struggles of the educational life to my dear parents;
without them I’m meaningless. Also I devote the work of this internship report to
respectable and honorable teachers who taught and supported me in developing
my personality as a competent professional
5

6. Contents
Serial No Names Page No
1. Abstract
Chapter 1
2. History of banking
3. History of Islamic Banking
4. Riba
5. Modes of Islamic Banking
Chapter 2
6. Introduction of Meezan Bank Limited
7. Mission and Vision Statement
8. Shahriha Supervisory Board
9. Share Holders
Chapter 3
10.Meezan Bank Segments , Depositor Pool
6

7. 11. Products, Services , Certificates and Competitors
Chapter 4
12.Training Program
13.Clearing and Remittance Department
14.Account Opening Department
15.Cash Department
16.SWOT Analysis
17.Suggestions And Recommendations
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
7

8. 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.
History of Banking
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
8

9. 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:
9

10. 1. STATE BANK OF PAKISTAN (CENTRAL BANK)
2. COMMERCIAL BANKS.
3. SAVING BANKS
4. CO-OPERAT1VE BANKS
5. EXCHANGE LANES
6. SPECIALIZED FINANCIAL INSTITUTIONS
There are two types of the COMMERCIAL BANKS
1. Scheduled
2. Non-scheduled banks
RIBA:
The word Riba means excess, increase or addition, which correctly
interpreted accordingto Shariah terminology, implies any excess compensation
without due consideration .(This definition of Riba is derived from Quran and is
unanimously accepted by allIslamic scholars).
TYPES OF RIBA
There are two types of Riba . Riba An Nasiyah & Riba Al Fadl.
1. Riba An Nasiyah: Defined as excess, which result from predetermined interest
whicha lender receives over and above the principle (Ras ul Maal).
10

11. 2. Riba Al Fadl: Defined as excess compensation without any consideration
resulting from a sale of good.
11

12. History of Islamic Banking
In the early stages of 20th century, the Islamic banking was only limited to
models and modus operandi. The full-fledged system of Islamic banking was
introduced in 1960s by an Egyptian bank 'Myt Ghamr'. The earliest Islamic banks
faced serious challenges ranging from general suspicions about their viability to a
common mistrust about their intentions. Since then, the Islamic banks have been
steadily growing to a remarkable level at this stage. During the last decades,
financial instruments used by Islamic banks have developed significantly, both
on assets and liability sides. Many instruments have been developed to mobilize
financial surpluses. A number of Islamic banks have launched investment
instruments in the form of certificates with short-term maturities or have
established funds earmarked for certain investments. Accordingly, at present,
there are around 70 countries in which the Islamic financial institutions are
operating in full-fledged or in part. Recently six countries including Bahrain,
Saudi Arabia, Malaysia, Indonesia, Brunei and Sudan have signed a
memorandum of understanding (MOU) for establishment of the first
International Islamic Financial Market (IIFM) in co-operation of Islamic
Development Bank (IDB). IIFM is designed to provide a co-operative framework
among around 200 Islamic banks and financial institutions all over the world. A
Liquidity Management Centre (LMC) is also working in Bahrain which addresses
the critical need for liquidity management by Islamic banks in line with the
Shariah principles.
The Islamic Financial Institutions (IFIs) can be divided into two broad categories:
1. Islamic commercial banks; and
2. Islamic investment institutions and international holding companies
Legendary names of Islamic finance are as follows:
Banks / Financial Institutes Countries
Darul-Mal Al-Islami Switzerland
Dallah Al-Baraka Group Saudi Arabia
Bahrain Islamic Investment Bank Bahrain
12

13. Al-Rahji Banking and Investment
Corporation
Saudi Arabia
Al-Meezan Bank Pakistan
Faisal Islamic Bank Egypt
Jordan Islamic Bank Jordan
Islami Bank Bangladesh
Bank Islam Malaysia Berhad Malaysia
Dubai Islamic Bank UAE
Kuwait Finance House Kuwait
Al-Baraka Islamic Investment Bank Pakistan
Islamic financial institutions are diverse and becoming increasingly innovative.
Value of their assets has reportedly exceeded $200 billion with a steady growth
rate of 10-15 percent per annum. They represent a small but dynamic market, no
longer confined to its original strongholds in the Middle East and South East Asia.
In USA, UK and a number of other European countries, various Islamic funds
have existed for a number of years. Some conventional financial institutions of
international standing have established Islamic banking subsidiaries and
windows. Many banks, both in the Muslim world and outside, are offering
Islamic financial products and take active part in capital market transactions.
Liquid instruments are emerging through Securitization by way of Islamic finance
like equity/mutual funds. There is also Dow Jones Islamic Market Index.
In Pakistan, the process of Islamic financing and banking started with the
reforms in specialized financial institutions like NIT, ICP and HBFC in conformity
with the Islamic principles. From 1st July, 1985 all the commercial banking
operations were made 'interest free'.
13

14. 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 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.
14

15. 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:
(a) To manage and be responsible for the operations of Islamic
Banking Branch (IBB) including policy and procedural matters;
(b) To liaise with other departments in the bank and the Shariah
Adviser / Committee to ensure smooth operations of IBB;
(c) To ensure that all funds pooled into the Islamic Banking Fund (IBF)
are channeled into Shariah complaint financing and investment
activities;
(d) To arrange training of staff on Islamic banking;
(e) To arrange for compilation and submission of such returns, as may
be required to be submitted to State Bank from time to time;
(f) To ensure that all directives and guidelines, particularly those
applicable to Islamic banking, issued by State Bank are strictly
complied with;
(g) To maintain the Statutory Cash Reserve and Liquidity Requirement
with State Bank as prescribed by State Bank from time to time; and
(h) Other roles and responsibilities as determined by the bank or
State Bank from time to time.
Shariah Compliance: Obviously, the sole purpose of the Islamic bank is to
conduct banking strictly in accordance with the Shariah principles, as outlined in
Holy Quran and Sunnah. The bank is required to ensure the Shariah compliance
on all the agreements, and products and services offered and handled by the IBD
and / or IBB. The responsible authority for the Shariah compliance is the Shariah
15

16. Adviser / Committee consisting of Shariah scholars having sufficient related
knowledge, qualifications and experience. The Shariah adviser or Shariah
Supervisory Committee, appointed by the bank, shall advise the IBD on all of the
business matters pertaining to Shariah.
Modes Of Islamic Banking:
MURABAHA
Literally it means a sale on mutually agreed profit. Technically, it is a contract of
sale In which the seller declares his cost and profit. Islamic banks have adopted
this as a mode of financing. As a financing technique, it involves a request by the
client to the bank to purchase certain goods for him. The bank does that for a
definite profit over the cost ,which is stipulated in advance.
IJARAH
Ijarah is a contract of a known and proposed usufruct against a specified and
lawful return or consideration for the service or return for the benefit proposed
to be taken, or for the effort or work proposed to be expended. In other words,
Ijarah or leasing is the transfer of usufruct for a consideration which is rent in
case of hiring of assets or things and wage in case of hiring of persons.
IJARAH-WAL-IQTINA
A contract under which an Islamic bank provides equipment, building or other
assets to the client against an agreed rental together with a unilateral
undertaking by the bank or the client that at the end of the lease period, the
ownership in the asset would be transferred to the lessee. The undertaking or
the promise does not become an integral part of the lease contract to make it
conditional. The rentals as well as the purchase price are fixed in such manner
that the bank gets back its principal sum along with profit over the period of
lease.
MUSAWAMAH
Musawamah is a general and regular kind of sale in which price of the
commodity to be traded is bargained between seller and the buyer without any
16

17. reference to the price paid or cost incurred by the former. Thus, it is different
from Murabaha in respect of pricing formula.
ISTISNA_A
It is a contractual agreement for manufacturing goods and commodities,
allowing cash payment in advance and future delivery or a future payment and
future delivery. Istisna’a can be used for providing the facility of financing the
manufacture or construction of houses, plants, projects and buildings of brigdes,
roads and highways.
MUDARABAH
A form of partnership where one party provides the funds while the other
provides expertise and management. The latter is referred to as the Mudarib.
Any profits accrued are shared between the two parties on a pre-agreed basis,
while loss is borne only by the provider of the capital.
MUSHARAKAH
Musharakah means a relationship established under a contract by the mutual
consent of the parties for sharing of profits and losses in the joint business. It is
an agreement under which the Islamic bank provides funds, which are mixed
with the funds of the businesse nterprise and others. All providers of capital are
entitled to participate in management, but not necessarily required to do so. The
profit is distributed among the partners in pre-agreed ratios, while the loss is
borne by each partner strictly in proportion to respective capital contributions.
BAI SALAM:
Salam means a contract in which advance payment is made for goods to be
delivered later on. The seller undertakes to supply some specific goods to the
buyer at a future date in exchange of an advance price fully paid at the time of
contract. It is necessary that the quality of the commodity intended to be
purchased is fully specified leaving no ambiguity leading to dispute. The objects
of this sale are goods and cannot be gold, silver or currencies. Barring this,
Bai’Salam covers almost everything, which is capable of being definitely
described as to quantity, quality and workmanship.
17

18. BAI MUAJJAL
Bai-Muajjal may be defined as a contract between a Buyer and a Seller under
which the Seller sells certain specific goods permissible under Islamic Shari'ah
and Law of the land) to the Buyer at an agreed fixed price payable at a fixed
future date in lump sum or within a fixed period by fixed installments.
18

19. History OF MEEZAN BANK Limited (MBL)
Meezan Bank Limited, a publicly listed company was incorporated on January 27,
1997 and started its operations as an investment Bank in August that year. In
January 2002 Meezan bank was granted as nations full-fledged commercial bank
licensee as a dedicated Islamic Bank, by The State Bank of Pakistan.
Meezan Bank is the first and largest Islamic Bank in Pakistan having a network of
over 500 branches in over 120 cities across Pakistan. Meezan Bank offers a
complete range of Islamic banking products and services, including free online
banking for all Pak Rupee account at all its branches. Meezan Bank today a
noteworthy point along with the evaluation of Islamic Banking in Pakistan. Meezan
Bank is catering to an increasingly astute and demanding financial consumer who
is also becoming keenly aware of Islamic Banking. Meezan Bank bears the critical
responsibility of leading the way forward in establishing dynamic and stabled
Islamic Banking System.
Meezan Bank offerings valuable products and services to its customers without
any violation of shariah principles.
19

20. MISSION & VISION STATEMENT OF MEEZAN BANK
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.
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.
Service Mission
To develop a committed service culture which ensures the
consistent delivery of our products and services within the
highest quality service parameters, promoting Islamic
20

21. values and ensuring recognition and a quality banking
experience to our customers.
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.
The members of the Board are:
 Justice (Retd.) Muhammad Taqi Usmani (Chairman)
 Dr. Abdul Sattar Abu Ghuddah
 Sheikh Essam M. Ishaq
 Dr. Muhammad Imran Ashraf Usmani (Shariah Advisor)
The Board of Directors of Meezan Bank:
 H. E. Sheikh Ebrahim Bin Khalifa Al-Khalifa (Chairman)
 Mr. Abdullateef A. Al-Asfour
 Mr. Rana Ahmed Humayun
 Mr. Mohammed Azzaroog Rajab
 Mr. Ahmed Abdul Rahim Mohamed
21

22.  Mr. Alaa A. Al-Sarawi
 Mr. Mian Muhammad Younis
 Mr. Mohammad Abdul Aleem
 Mr. Irfan Siddiqui (President & CEO)
 Mr. Ariful Islam (Chief Operating Officer)
SHARE HOLDERS:
Shareholding Structure Rs in millions %
Noor Financial Investment Co. Kuwait 4,924 49.11
Pakistan Kuwait Investment Company (Pvt.) Ltd 3,008 30.00
Islamic Development Bank Jeddah 935 9.32
Others 1,160
11.57
Paid up Capital 10,027
100.00
MEEZAN BANK SEGMENTS
Meezan Bank is managed by a team of professional bankers committed to the
cause of Islamic Banking. This single unifying factor unleashes the tremendous
power of a dedicated and motivated team committed to fulfilling the Vision and
Mission of this Bank.
The business segments of the Bank are:
• Consumer Banking
22

23. • Corporate Banking
• Investment Banking
• Commercial Banking (including Small and Medium Enterprises)
• Treasury & Financial Institutions
• Asset Management (managed through a subsidiary Al Meezan Investment
Management Ltd.)
Comment on organizational structure
The organizational structure of the Bank consists of top level management,
middle level management and lower level management. The top level
management comprises of president, executive vice president, and divisional
heads. The middle level management comprises of departmental heads, SVPs
and VPs. The lower level management comprises of AVPs, Managers, and
Operation Managers. The reporting system at horizontal level is much effective
and successful. The reporting system at vertical level i.e. from lower level
management to middle level management is also accurate, timely and complete.
The middle level management gives information to high level management at
which decision are made, rules and regulations are amended keeping in view the
present scenario.
Products, Services and Competitors
Deposit products
Meezan Bank offer the largest range of Riba-free Deposit Accounts for Personal
Banking
• Rupee Saving/Current Account
• Labbaik Saving/Current Account
• Rupee Saving/Current Account
• Dollar Saving/Current Account
23

24. • Euro Saving/Current Account
• Pound Saving/Current Account
• Meezan Bachat Account
• Business plus Account
• Meezan Saving/Current Account
• Kids Club Account
• Teens Club Account
• Mezzan Kafalah
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. They all certificates are MUDARBAH based.
• Certificate of Islamic Investment (CII)
• Meezan Amdan Certificate (MAC)
• Monthly Mudarabah Certificate (MMC)
• Dollar Mudarabah Certificate (DMC)
Certificate Of Islamic Investment :
The Certificate of Islamic Investment (COII) is a Mudarabah-based deposit
product through which you can invest your savings for periods ranging from 3
months to 5 years and earn Halal profit on a periodic basis.
Meezan Amdan Certificate:
Meezan Amdan Certificate is a Mudarabah-based long-term deposit product that
offers a high expected return to investors and is ideal for those individuals and
corporate clients who need a regular stream of monthly income. The Meezan
24

25. Amdan Certificate is available for Individuals and businesses including Sole
Proprietorships, Partnerships and Limited Companies.
Monthly Mudarbah Certificate :
The Riba-Free Monthly Mudarabah 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 Dollar Mudarabah Certificate (DMC) is a deposit product through which you
can invest your US Dollars with Meezan Bank for periods ranging from 3 months
to 3 years and earn six-monthly or at maturity profit payments on your
investment. The minimum investment is required 10,000 USD. The Dollar
Mudarabah Certificate is an ideal investment for Individuals, Sole
Proprietorships, Partnerships and Limited Companies.
Consumer Finance
Consumer finance provides for construct a home, purchase a car, etc:
• Easy Home
• Car Ijarah
• Laptop Ease
Electronic Banking
Electronic Banking provides non-stop banking convenience, twenty four hours a
day, seven days a week.
• Visa Debit Card
• Internet Banking
• ATM Network
• Meezan Quick pay
• SMS Alerts
25

26. • 24/7 Call Center
Services
Meezan Bank is dedicate in its efforts to provide a quality banking experience to
our customer via a range of unique Banking Services
• Labbaik Travel Aasaan
• Online Banking
• Ladies Banking
• Home Remittance
• Western union Money Transfer
Competitors
The major direct competitors of Meezan Bank Limited are Bank Islami, Dubai
Islamic Bank Pakistan Ltd, Al-Barka Islamic Bank. The other indirect competitors
are Bank Al-Falah Limited, Bank Al Habib Limited, Askari Bank Limited, United
Bank Limited, Allied Bank Limited, Soneri Bank Limited, Faisal Bank Limited.
Depositors Pool
The Depositors pool is just for MUDARBAH based depositors . It is the way of
investing RAB-UL-MAL investment. They invest in three different HALAL
Businesses. The purpose of invest in three different Businesses is just for some
return on investment , if you invest in one business the chances of return will
less but if you invest in three different businesses the chances of return will
increase. They give the permit to RAB-UL-MAL to visit the business where
MUDARIB invest their money with their Molvi’s/Ulma’s just for satisfaction of
either business is HALAL or HARAM.
The Most famous Business of Meezan Bank is “Paper” Business.
26

27. Training program
With the name of Almighty Allah, I started my internship with Meezan Bank
Limited on 15 June, 2015 which completed on 30 July, 2015. On first day, the
Branch Manager called me in his office and asked some questions about my
studies and Banking. He told me some basic rules and regulations about banking
operation, Islamic Shariah Polices and introduced me with other staff members
of the Bank and I worked on General banking , Clearing and Remittance
department , Cash department , Advance department , Consumer finance ,
Consumer product , Service & Quality department.
Clearing and Remittance Department
Clearing:
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)
NIFT:
NIFT stand for National Institutional Facilitation Technologies. Clearing House of
SBP has shifted a part of its work to private institution named NIFT. NIFT collets
Cheques, Demand Draft, Pay Order, Travelers Cheques, etc. from all branches of
different Banks within city through its carriers and send them to the branches on
which these are drawn for clearing. NIFT prepares a sheet for each branch and
27

28. send it to each branch as well as to State Bank of Pakistan where accounts of
Banks are settled.
Types of Clearing
Outward Clearing
When cheques of other Banks are deposited in our bank, after clearing these
cheques through NIFT by the other Banks on which these are drawn. Accounts of
the customers are credited.
Inward Clearing
When cheques of our bank are deposited in other Banks and these cheques are
sent to us for verification, we debit the of our client after verification their
account
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.
28

29. Account Opening Department
Account Opening Procedure
Account Opening Form
This department relates to open new accounts Customers approach to Bank and
an Account Opening is given to him for completing and signing the same. 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. Specimen Signature Card are gotten signed form the customer and
after verifying the information written they’re in, Customers are given account
number and all these information’s are saved in the system.
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
Specimen Signature Card (SSC)
Specimen Signature Card are gotten signed form the customer and after
verifying the information written they’re in, Customers are given account
number and all these information’s are saved in the system.
Signature Difference Form
29

30. The signature of the client is taken on a signature difference form if his signature
differs from the CNIC.
Address Change Form
If the address is differed from CNIC then client will fill this form.
Computerized Inputting
There are three things under the computerized inputting.
Customer Information (CIF)
Here we will generate a customer’s Id
Account Number
After completion of all formalities, final approval for opening of
account is taken from the Branch Manager and an account number is allotted to
the customer and all the information’s are recorded in the computer. Account
number is written on the cheque book requisition. After completion of all
procedures, the bank prepares a letter and sends it to the client at his postal
address to pay gratitude to the customer.
Customer Due diligence (CDD)
Here we observe the customer’s strength to do daily transaction in a
bank
Cheque Book Issuance
Cheque Book requisition for first cheque book is send to Head Office, Karachi for
issuance the same. The cheque consists of 25 leaves and no charges are
deducted from the account the account of client.
30

31. Procedure for ATM/PIN Issuance
Meezan Bank limited provides the ATM facility to its Customers and they can
withdraw their amount at any time through ATM. For issuance of ATM, customer
has to sign an ATM form and Bank office make an entry in the system and within
15 days bank receives ATM card from Head Office which is given to the
customer.
For issuance of PIN and activation of ATM customer has to call the help line (111-
331-331). After verification of customer, a PIN number is issue to him and his
card is activated
Procedure of Stop Payment
For stopping the payment, we take sign of the customer on stop payment form
where in account number with date and amount of cheque is written. Customers
also mention the reason of stop payment then we mark that cheque as stop
payment.
Procedure for Closing of an account
Whenever a customer wants to close the account, he fills up an account closing
form and signs they’re in, account balance should be zero, approval is taken from
the Branch Manager Specimen card is taken back and is attached with the form
and account is closed.
Cash Department
The cash department is the most important department of the bank. It receives
cash from customers and then deposits it into the accounts of the customers and
maintained their balances. In cash departments following books are maintained.
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32. o Scroll book
o Paying book
o Cash balance book
SCROLL BOOK
When cash is received at the customer it is recorded in the scroll book.
PAYING CASH BOOK
The cashier makes entry in the paying cashbook when cash is paid.
CASH BALANCE BOOK
The consolidated figure of receipt and payment of cash is entered in cash
balance book.
SWOT Analysis
Strengths:
 ATM Machine in Branches.
 One Counter Operation.
 Islamic Banking.
 Loyalty of Employees.
 24/7 Online Banking.
 Internet banking facility.
 Excellent Environment.
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33.  Efficient and Qualified Management.
 Fewer Competitors as Islamic Banking.
 A large range of Islamic Investment Schemes.
 Islamic Leasing System.
 No hidden charges.
 Rates are remarkably low as compared to other banks
Weakness:
 Lack of awareness of the people.
 Less Advertisement
 Stressful job.
Opportunities:
 Big market to be captured
 Introduction of innovational products
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34.  Opportunities for provision of Islamic finance facilities such as Musharka,
Estasnaa, Ijara for commercial customers
 Global acceptance of Islamic Banking system.
Threats:
 Islamic banks are increasing.
 Traditional commercial banks are also introducing the Islamic Banking
Facility.
 Lack of awareness (missconception) amongst general public about Islamic
banking.
SUGGESTION & RECOMMENDATIONS
 Expanding their business by establishing new branches in those
areas which are near to the business area.
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35.  MBL has option to increase its customer ratio through efficient marketing
system
 The bank must hire the efficient specialized marketing personnel
 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
 Bank should develop healthy relation with customer
 MBL should give more compensation, incentives, benefits to their
employees for their hardworking and performance to improve more and
more in future because it leads to improvement of overall bank’s
performance
About Latifabad Hyderabad Branch
This Branch is most successful branch of Meezan Bank in Hyderabad. This branch
having a large numbers of depositors in all over latifabad just because of their
Customers services , their employees are very energetic and helpful. The branch
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36. Manager of this branch giving lectures to employees on every weekend i.e
Saturday after working hours , the lecture is about customers facilitations ,
upcoming products of Meezan Bank and Islamic Finance. They maintained the
friendly environment with every employee. This branch having deposits of over 2
Billion rupees , the most of any branch in latifabad and they achieve their 1 year
deposit target in just 3 months. They are running their branch with very good
strategy , the strategy is that their employees are from different provinces and
different castes Like they have SINDHI , PUNJABI , PATHAN and MEMON
employees , because they have every type of customers who are prefer to talk in
their own mother tongue. I really like this strategy , with this strategy their
branch is growing day by day.
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