19464997 internship report on meezan bank complete

8/6/2019 19464997 Internship Report on Meezan Bank Complete

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Meezan is a publicly listed company first incorporated on January 27, 1997. It started

operations as an investment bank in August of the same year. In January, 2002 in an

historic initiative, Meezan Bank was granted the nation's first full-fledged commercial

banking license dedicated to Islamic Banking, by the State Bank of Pakistan.

Our 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.

Our 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.

Introduction of Products

Riba Free Meezan Providence

Riba Free - Certificates of Islamic Investment

Riba Free - Monthly Musharakah Certificate

Riba Free - Dollar Saving Account

Riba Free - Rupee Saving Account

Riba Free - Current Account

Car Ijarah - Islamic Car Financing

Riba Free Meezan Providence:


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Islamic Mode of Financing

Musharakah

Mudarabah

Murabaha

Salam

Istisna

Ijarah

Net Profit

Years 2005 2006 2007 2008

profit 20.15 17.80 16.27 8.27

Share Price in Stock Market

Years 2005 2006 2007 2008

Share Price 23.25 19.50 38.55 21.48

MBL is incorporated in Pakistan and engaged in Islamic and commercial banking. It is

listed on all the stocks exchanges in Pakistan. The banks registered office and principal

office are situated the adoption of new technology and offering new products has made

MBL one of the best domestic bank of Pakistan.

According to the department internship program I completed my eight weeks internship at

MBL Rahim Yar Khan.

General banking department is concerned with daily operation of the branch. This

department is divided into four sections which are Cash section, Clearing section,


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Remittance section and fixed deposit section. Cash section performs cash related function

like receipt of cash, payment of cash and collection of utility bills. Clearing section

performs the clearing of cheques for collection. Remittance section performs transferring

of funds from one branch to another or from one account to another.

Credit department issues short term and long-term loan. MBL offer two types of loans or

finances, fund based finances and non-fund based finances. Funds based finances include

running finance, demand finance, cash finance and staff finance. Non fund base finance

include letter of credit and guarantees like performance guarantees, mobilization

guarantees shipping guarantees, bid bonds and security deposit guarantees.


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Meezan bank is a premier Islamic bank and publicly listed company first

incorporated on January 27, 1997. It started operations as an investment bank in

August of the same year. In January, 2002 in an historic initiative, Meezan Bank

was granted the nation's first full-fledged commercial banking license dedicated to

Islamic Banking, by the State Bank of Pakistan.

Meezan Bank stands today at a noteworthy point along the evolution of Islamic

Banking in Pakistan. The banking sector is showing a significant paradigm shift

away from traditional means of business and 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 a stable and dynamic Islamic Banking system replete with dynamic

and cutting-edge products and services.

The Bank has made fundamental and significant progress forward, and in doing so

has established a strong and credible management team comprised of experienced

professionals, which have achieved a strong balance sheet with excellent

operating profitability, including a capital adequacy ratio that places the Bank at

the top of the industry, a long-term entity rating of A+, and a short-term entity

rating of A1+, the highest short-term rating.

The Bank's main shareholders are leading local and international financialinstitutions, including Pak-Kuwait Investment Company, the only AAA rated

financial entity in the country, the Islamic Development Bank of Jeddah, and the

renowned Shamil Bank of Bahrain, that in addition to their strength and stability,

add significant value to the Bank through Board representation and applied

synergies.


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The Bank has an internationally renowned, very high caliber and pro-active

Shariah Supervisory Board presided over by Justice (Retd.) Maulana Muhammad

Taqi Usmani, a renowned figure in the field of Shariah, particularly Islamic

Finance. He holds the position of Deputy Chairman at the Islamic Fiqh Academy,

Jeddah and in his long and illustrious career has also served as a Judge in the

Shariat Appellate Bench, Supreme Court of Pakistan. The Bank also has a resident

Shariah advisor, Dr. Imran Usmani, who strictly monitors the regular transactions

of the Bank. The board also includes Sheikh Essam M. Ishaq (Bahrain), and Dr.

Abdul Sattar Abu Ghuddah (Saudi Arabia).

At Meezan Bank, we strive to find commonalties with the conventional banking

system with absolutely no compromise on Shariah rulings. The bank has

developed an extraordinary research and development capability by combining

investment bankers, commercial bankers, Shariah scholars and legal experts to

develop innovative, viable, and competitive value propositions that not only meet

the requirements of today's complex financial world, but do so with the world-

class service excellence that our customers demand, all within the bounds of

Shariah.

Furthermore, the Bank has built a strong Information Technology and customer

knowledge-based focus that continues to use state of the art technology and

systems. The Bank's Corporate and Investment Banking business unit is geared

towards nurturing and developing a long-term relationship with clients by

understanding their unique financing requirements and providing Shariahcompliant financing solutions across the horizon of corporate banking and

structured finance. The Bank is also implementing robust and aggressive strategic

and tactical initiatives on the consumer banking side. The Bank has a rapidly

growing branch network across all major cities nation-wide. Providing our

customers accessibility and convenience is a prime target, within an atmosphere

and culture of dedicated service and recognition of their needs.


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We believe in adding value to our customers' lives and businesses through

dynamic and competitive products and services that fulfill their needs while

conforming completely with the dictates of Shariah. At the same time, we

endeavor to deliver competitive risk adjusted returns to our stakeholders.

History of Islamic banking in Pakistan

Al-Meezan Investment Management Limited (AMIM) was established in 1995 as

a joint venture between Pakistan Kuwait Investment Company (PKIC), National

Investment (Trust) Limited, and Jardine Fleming Investment Management

International Limited (Jardine Fleming). AMIM has over the years benefited

immensely from domestic investment management expertise of PKIC and

National Investment (Trust) Limited and international expertise of Jardine

Fleming.

Jardine Fleming made a substantial contribution towards the development ofsystems and procedures for AMIM during its six years of association with the

company. The key investment professionals of Jardine Fleming, Hong Kong who

served as Directors of AMIM for these six years, contributed to the development

of strategic plans and investment policies of the company.

The Holy Quran

"We must work our destiny in our own way and present to the works an economic

system based on true Islamic concept of equality of manhood and social justice

"Quaid's concept of Islamic Banking [Opening Ceremony of The State Bank of

Pakistan on July 1, 1948]


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Meezan bank is provide services in the market to their customers and shareholders

its nature is reflected by its admission statements.


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Our 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.

Our 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.

Our Objectives


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To develop a committed service culture which ensures theconsistent delivery of our products and services within the highest quality service

parameters, promoting Islamic values and ensuring recognition and a qualitybanking experience to our customers.


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University of Karachi M.E.F After P.G.D 11


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Introduction of Products

Types of products offered

Riba Free Meezan Providence

Riba Free - Certificates of Islamic Investment

Riba Free - Monthly Musharakah Certificate

Riba Free - Dollar Saving Account

Riba Free - Rupee Saving Account


Car Ijarah - Islamic Car Financing

Riba Free Meezan Providence:

It is a long term investment product especially designed for the need and to fulfill

the requirements of the corporate and business concerns for purpose of

investing their provident, pension and Gratuity Funds as any sensible and wise



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person who wants to invest his earning, his main concerns would be total security

along with the best returns possible, especially as these earnings or funds are a

trust from his employees and one that bears an important responsibility.

Meezan Providence rests on the well known and solid financial strength of

Meezan Bank, which has a strong and credible balance sheet with excellent

operating profitability, including a capital adequacy ratio that has placed the Bank

at the top of the industry.

Furthermore, its sterling track record shows consistently beneficial and highly

competitive returns for their broad range of investors. Finally, comes the benefit

of truly Halal returns, a benefit you may not have had the opportunity to enjoy

before and one that you can now pass on to your employees, many of whom

would be grateful for such an opportunity.

Key Features of Meezan Providence

A 100% hilal investment in strict compliance with Shariah

High returns



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Long Term security ensured

Minimum investment amount: PKR 1,000,000

Available tenures of 3, 5 and 7 years.

Pre-mature withdrawal options available

Riba Free-Certificates of Islamic Investment:

This investment product is designed to meet the short term and long term

needs. The minimum investment is PKR 50,000 and it is available in tenures

of 3 and 6 months, 1, 2, 3 and 5 years.

Furthermore, these certificates can be encashed at any time without any charge or

penalty, only the profit rates will be adjusted according to the tenure completed.

You can earn profit on your investment on the following basis:

Monthly profit on 1, 2, 3 and 5 years

Quarterly profit on 1, 2, 3 and 5 years

At maturity profit payment for all tenures

In the Riba Free COII, you enter into the Musharakah agreement that is strictly

in conformity with the principles of Islamic Shariah. The deposits of the

customers together with the Banks contribution are invested in a pool that

consists of Ijarah and Murabaha financing. The profit/loss on this pool is

calculated every month on the basis of profit sharing ratio determined by



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assigning weightings. Such weightings are assigned at the beginning of every

month and are displayed on the bank notice board and website. This facility is

available during the course of investment. However, profit shall be paid only

after completion of one month of investment.

Riba Free-Monthly Musharakah Certificate:

The riba free Monthly Musharakah Certificates are a flexible investment product

which has been designed to give the depositor a monthly return which is

Halal. The depositors participate with the bank in the pool of investments

which is comprised of Murabaha and Ijarah transactions. The minimum

investment required is required is only PKR 100,000 and you receive profit

for each complete month of investment with the bank. The profit rate, so

calculated, is applied to all investments which mature between the periods starting

from the 6thday of each month to the 5thday of the next month. During your

relationship with us, you would be entitled to receiving the following additional

benefits.

Personalized cheque books.

No restriction on withdrawals.

Call centre facilities.

Monthly profit payment to your current or saving account with us.

Free bank balance certificates

Personal financial consultancy services

Access to priority desk



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Riba Free-Dollar Saving Account

With a minimum of only $100 you can open a Dollar Saving Account with

us under a Mudarabah arrangement that is strictly in conformity with the

principles of Islamic Shariah. The return earned on the Mudarabah pool is

calculated every month and the profit ratio for all investors is declared at the

beginning of the month. If you maintain a minimum average monthly balance of $

500, you shall be eligible to receive profits that shall be disbursed to you every

month. Apart from first class service and personalized attention that our

customers get when they bank with us, we offer the following additional

conveniences to our customers.

Personalized cheque books

No restriction on withdrawals or number of transactions.

Call centre facilities

Monthly profit payment

Free bank balance certificates

Taking stop payment instructions.

Taking hold mail instructions.

Issuance of duplicate statement of account.

Personal financial consultancy services.

Access to priority desk.



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Riba Free-Rupee Saving Account

With a minimum of only PKR 10,000 THE Rupee Saving Account can be opened

under musharakah agreement. The profit earned is calculated every month. And if

the client maintains a monthly balance of PKR 10,000 the client is eligible for the

profits that will be disbursed every month. However, the clients of COII may

open this account with any minimum balance.

Profit calculation is based on weight ages in the following tiers:

PKR 10,000 up to PKR 9,999,999

PKR 10,000,000 up to PKR 49,999,999

PKR 50,000,000 up to PKR 99,999,999

PKR 100,000,000 and above


In this type of account the client is allowed to deposit or withdraw money as he

likes. He may, thus, deposit or withdraw several times in a day as he likes.

Usually the bank allows this and charges service charges are deducted by the

bank from current deposit account. It gives advantage for paying debts by the

convenient and safe means of sending cheques through the post thus avoiding the

trouble and loss. This bank account that is ideal for businesses and individuals

looking for Shariah compliant banking and ease of access. With a minimum

amount of only Rs.10,000 this product offers you a range of benefits

including personalized checking facility, no restrictions on the number of

transactions, free Call Centre facilities, free balance certificates, priority

banking and much more.



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Car Ijarah Islamic Car Financing

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. Car Ijarahtotally halal auto finance facility that is very affordable,

with quick processing and minimal documentation. Car financing that is very

competitively priced, hassle-free, and totally Halal.

As Ijarah is basically is the transfer of usufruct of a fixed asset to another person

for an agreed period, at an agreed consideration. Under car Ijarah agreement the

car will be given to the customer for the period agreed on the time of contract. In

car Ijarah the asset remains in the ownership and risk of bank and the customers

only pay the rentals for use of the asset: just like house rent. The product

has grown all over the country with a portfolio of Rs 291 million as of 31st

December with non-performing contracts.

Key Features of Car Ijarah

No application fee

Ease of acquiring any new locally assembled car

No upfront Insurance Payment

No advance Rental



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Available in tenures of 3, 4 and 5 years

Minimum security deposit as low as 20%

Uses of Murabaha in Meezan

Murabaha can be used in following conditions:

Short / Medium / Long Term Finance for:

Raw material

Inventory

Equipment

Asset financing

Import financing

Export financing (Pre-shipment)

Consumer goods financing

House financing

Vehicle financing

Land financing

Shop financing

PC financing



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One of the most important aims of the student life is to express him / her correctly and

adequately. This was believed in my mind when I first decided to go to Islamic Meezan

Bank Limited to complete my internship program.

The organization has been not growing both in size and profit for past few years

and but repute in the market is good. The employee turnover is very high which they

have to cut down as they are losing a number of good trained employees due to its poor

policy. The year 2007 is expected to offer increased competition in the secured assets

business as more Islamic banks are in the market. With their focused strategy and product

development initiatives planned for the year, Meezan Bank is strongly positioned to meet

these challenges. The bank has very well repute in the market. Overall bank is going well

and doing a good business but there are few problems for that I have tried to give few

recommendations that might help company to improve.


19464997 internship report on meezan bank complete

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