final present of commercial banking

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Project of commercial banking

Comparison of Islamic bank andconventional bank investment activities .



G roup Membersy JAMIL L ATIF MBA-F A09-049y BABAR HUSS A IN MBA-F A09-031y M. UMER MBA-F A09-100y A SS AD F ARMA N MBA-F A09-025y H A SSN A IN RAZA MBA-F A09-085



Comparison of the following banks

Meezan Islamic bank

A llied bank



MEEZAN ISLAMIC BANK

Meezan is a publicly listed company first incorporated

on January 27, 1997. It started operations as aninvestment bank in A ugust 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 theState Bank of Pakistan.



Our Vision

Establish Islamic banking as banking of first choice tofacilitate the implementation of an equitableeconomic system , providing a strong foundation forestablishing a fair and just society for mankind.



Our Mission

To be a premier Islamic bank , offering a one -stop shopfor innovative value added products and services to ourcustomers within the bounds of Shariah , whileoptimizing the stakeholders value through anorganizational culture based on learning , fairness ,respect for individual enterprise and performance.



Our Objectives

To develop a committed service culture which ensuresthe consistent delivery of our products and services

within the highest quality service parameters ,

promoting Islamic values and ensuring recognitionand a quality banking experience to our customers



T ypes of products offered

R iba Free Meezan Providence

R iba Free - Certificates of Islamic InvestmentR iba Free - Monthly Musharakah CertificateR iba Free - Dollar Saving A ccount

R iba Free - R upee Saving A ccountR iba Free - Current A ccountCar Ijarah - Islamic Car Financing



I slamic Mode of Financing

These modes of financing have been written by

Maulana Taqi Usmani who is the former Chairman of Shariah board of Meezan Bank. A fter studying these we will be in a position to understand the 90% working of the bank. The important modes of financing are



C ont..

MusharakahMudarabahIjarah



I nvestment BankingR ealizing the increasingly diverse needs of ourcustomers for advisory and structured financetransactions , a specialized department focusing onInvestment Banking services has been established atMeezan Bank. The department is geared towardsproviding comprehensive and innovative financialsolutions through a diverse product offering , providinga broad array of financing solutions to the bank sclients. The focus is on nurturing and developing long -term relationships with clients by understanding theirunique financing requirements and providing Shariah -compliant financing solutions.



C ont..

A ugust 2010U fone - Pakistan Telecommunication Corporation

LimitedSyndicated Musharakah

PKR 1,000 millionLead A dvisor & A rranger

To finance its network expansion



C ont..2 009

Liberty Power Tech LimitedFebruary 2009

Liberty Power Tech LimitedR ated Privately Placed Sukook Issue

PKR 12 ,650 millionLead A rranger

Shariah Structuring A dvisor



C ont..

September 2007

E ngro Chemicals LimitedPrivately Placed Sukook Issue

PKR 3,000 million Joint Lead A dvisor & A rranger



C ont..

September 2007D awood Hercules Chemicals Limited

Privately Placed Sukook IssuePKR 6,500 million

Lead A dvisor & A rrangerShariah Structuring A dvisor



A nalysis

Deposits were 100,333,051 in D ec. 31 2 009 which were119,000,889 in Sept. 30 2 010. (growth 19%).

Financings Net were 44,188,066 in D ec. 31 2 009 which were 43,371,335 in Sept. 30 2 010. (growth - 2 %).

Investments in D ec. 31 2 009 was 23,290,309 which was 25,471,727 in Sept. 30 2 010. (growth 9%).



C ont..Due from financial institutions was 34,499,500 in D ec. 312 009 and now 37,158,500 in Sept. 30 2 010. (growth

8%).

Total A ssets was 124,181,734 in D ec. 31 2 009 and now143,422,448 in Sept. 30 2 010. (growth 15%).



ALLIED BANK LIMITEDIt started out in Lahore by the name A ustralasia bank

before independence in 1942; was renamed allied bankof Pakistan limited in 1974 and than A llied banklimited on 2005 . In august 2008, because of capitalreconstruction , the bank s ownership was transferred

to a consortium comprising of A braham leasinglimited , and than A braham group.



v ision

To become a dynamic and efficient bank providingintegrated solutions and the first choice of bank for allcustomers .



MISSIONTo provide value -added services to our customers.

To provide high -tech innovative solutions to meetcustomer requirements.To create sustainable value through growth , efficiency and diversity for all stakeholders.To provide a challenging work environment , andreward dedicated team members.To play a proactive role in contributing towards thesociety.



CORE VALUESThe core values of A llied Bank are these:

Integrity Excellence in ServiceHigh PerformanceInnovation and Growth



PRODUC TSPhone Banking:

Credit Cards:Internet Banking:Online Banking: A llied ATM Networks:Corporate Leasing:



Gross deposits thus depicted a modest decrease of around 4% from R s. 249,887 million as at December31, 2009 to R s. 240,359 million as at March 31, 2010.Gross A dvances as at March 31, 2010, however ,remained higher by R s. 36,770 million or 18% fromMarch 31, 2009 level , leading to increase in Loans toDeposit R atio to 75.6% as at March 31, 2010.

The balance sheet size of Y our Bank increased to R s.399,837 million as at March 31, 2010while the equity of the bank increased to R s. 30,250 million compared toR s. 29,960 million as at December 31, 2009.



The balance sheet size of Y our Bank increased to R s.399,837 million as at March 31, 2010while the equity of the bank increased to R s. 30,250 million compared toR s. 29,960 million as at December 31, 2009.

Profit Before Tax of Y our Bank increased by 19.9% toreach R s. 2,683 million during three months periodended March 31, 2010compared to R s. 2,239 million in

the corresponding period of March 31, 2009.



Profit A fter Tax also rose by 22.7% to R s. 1,777 millioncompared to R s. 1,448 million in the correspondingperiod.

R esultantly , the EPS of Y our Bank increased to R s. 2.27during three months ended March 31, 2010comparedto R s. 1.85 in the corresponding period of previous

year.



Conclusion

W e have studied both the banks products and servicesand their process very deeply and the result for all thisresearch is that the conventional banking system is anold system which have a strong base now at the time so

for competing conventional banking system definitely Islamic system has required some time



Recommendations to Meezan bank

They should provide personal loan by makingassurance that loan would be not used in any illegalactivity.

They should use Musharakah contracts no doubt thisis risky but they also have a rate of profitability.

They should launch awareness programs to promoteIslamic banking.



C ont..Increase the use of takaful as people want assurance of

their assets and investments.

Grand incentives to create Islamic private debtsecurity.



Recommendations to Allied bank

The bank has a lot of financing schemes but there arelittle advertisements of these schemes so ABL shouldmore advertise its schemes.

Some of the talented employees should be sent toother countries for their advance trainings.

In back offices the employees are still depend onmanual work which causes slow performance. Itshould convert their system to an automated one.



C ont. ABL should promote the paperless banking.

In some groups or wings , approach towards employeesis still bureaucratic , late promotion , favoritism inappraisals and lack of sufficient incentives are someproblems arising dissatisfaction so the employeesshould be promoted on fair policies to increase more

satisfaction among them.

ABL should introduce the Islamic products because ithas the potential market.



Thank you

final present of commercial banking

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