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ABOUT MEEZAN BANK LIMITED

Meezan Bank Limited 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 Nations 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 lending 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 banks main shareholders are leading and international financial


institutions, including “Pak-Kuwait investment Company”, the only AAA
rated financial entity in the country, the “Islamic Development Bank of
Jeddah”, and the renown ”Shamil Bank of Behrain”. The established
position, reputation, strength and stability, of these institutions add
significant value to the Bank through Board representation and applied
synergies.

The Bank has an internationally renowned, very high caliber and pro-
active Shariah Supervisory Board presided over by Justice (Retd.)
Mulana 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 Ghudda (Saudi Arabia).

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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 which our customers demand, all within the bounds of
Shariah.

Meezan 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 by providing Shariah complaint financing
solutions through corporate banking and structured finance.

By implementing robust and aggressive strategic and tactical


initiatives on the side of consumer banking, Meezan Bank aims to fulfill
its prime target of providing customers accessibility and convenience,
within an atmosphere and culture of dedicated service and recognition
of their needs. The bank has a rapidly growing branch network across
all major cities nation-wide.

Meezan Bank Limited is the first scheduled bank in Pakistan, which has
been licensed by the state bank of Pakistan to operate as an Islamic
Commercial Bank. Meezan Bank Limited is dedicated to Islamic
Banking and adheres strictly to the principles of Islamic Shariah with
absolutely no compromise. By the grace of ALLAH, Meezan Bank is
recognized today as Pakistan’s largest and truly premier Islamic Bank.

Meezan Bank has a strong balance sheet with excellent operating


profitability, including a capital adequacy ratio that has placed the
bank at the top of the industry, a long-term entity rating of A+, and a
short-term entity rating of A1.

Meezan Bank assures you of a truly Halal and absolutely Riba-Free


investment.

Capital and Ownership


The shareholders of Meezan Bank Limited are leading financial
institutions including Pakistan Kuwait Investment Company (Pvt) Ltd,

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Shamil Bank of Bahrain E.C., and the Islamic Development Bank,
Jeddah. The remaining shareholders comprise of the general public.
The Bank’s shares are quoted on the Karachi and Lahore Stock
Exchanges. At the end of the year 2006 the position of capital is as
follows:

Authorized Capital:
200,000,000 Shares of Rs 10 each= Rs.2000,000,000

Issued, subscribed and paid-up capital:

203,658,200 shares of Rs. 10 each= Rs. 2,036,582,000

Credit Rating of the Bank

Meezan Bank entity rating of A+ for long term and A-1 for
short-term.

Meezan Bank entity rating reaffirmed by JCR-VIS

Meezan Bank has reaffirmed its entity ratings at A+ for medium to


long-term and A-1 for short-term. This rating was made by JCR-VIS
Credit Rating Company, which has also set Meezan Bank’s outlook on
medium to long-term rating as “Stable”. The rating is yet another
milestone achievement in the Bank’s endeavor to be the Bank

Meezan Bank’s ratings are based on its shareholding with world-


renowned financial institutions, pioneering role in the industry, strong
management initiatives in continuously introducing various range of
Islamic products. The Credit Rating agency JCR-VIS has expressed
commendation to Meezan Bank management’s ability to deploy funds
in core banking assets, which reflected healthy growth trends last year.

RATING SCALE AND DEFINITIONS

MEDIUM TO LONG TERM

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AAA

Highest Credit quality .The risk factors are negligible, being only
slightly more than for risk –free Pakistan’s debt.

AA+, AA, AA-

High Credit Quality. Protection factors are strong. Risk is modest


but may very slightly from time to time because of economic
conditions.

A+, A, A-

Good credit Quality. Protection factors are adequate. Risk factors


may very with possible changes in the economy.

BBB+, BB, BB-

Adequate Credit Quality. Protection factors are reasonable and


sufficient. Risk factors are considered variable if changes occur in
the economy.

BB+, BB, BB-

Obligations deemed likely to be met. Protection factors are


capable of weakening if changes occur in the economy. Overall
quality may move up or down frequently within this category.

B+, B, B-

Obligations deemed less likely to be met. Protection factors are


capable of fluctuating widely if changes occur in the economy.
Overall quality may move up or down frequently within this
category or into higher or lower rating grade.

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CCC

Considerable uncertainty exists towards meeting the obligations.


Protection factors are scarce and risk may be substantial.

CC

A higher default risk.

A very high default risk

Defaulted Obligations

SHORT TERM
A-1+

Highest certainty of timely payment. Short-term liquidity,


including internal operating factors and /or access to alternative
sources of funds, is outstanding and safety is just below risk free
Government of Pakistan’s short-term obligations.

A-1

High certainty of timely payment. Liquidity factors are excellent


and supported by good fundamental protection factors. Risk
factors are minor.

A-2

Good certainty of timely payment. Liquidity factors are company


fundamental are sound. Risk factors are small.

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A-3

Satisfactory liquidity and other protection factors qualify


entities/issues as to investment grade. Risk factors are larger
and subject to more variation. Nevertheless, timely payment is
expected.

Speculation investment characteristics. Liquidity may not be


sufficient to ensure timely payment of obligations.

C
Capacity for timely payment of obligations is doubtful.

RATING WATCH

JCR-VIS places entities and issues on ‘Rating Watch’ when it


deems that there is conditions present that necessitate re –
evaluation of the assigned rating. A ‘Rating Watch’
announcement means that the status of the assigned rating is
uncertain. Developments in factors other than those that
necessitated the’ Rating Watch’ may result in a rating change,
while the rating continues to be under ‘Rating Watch’.

RATING OUTLOOKS

The three outlooks ‘Positive’,’ Stable’ and ‘Negative’ qualify the


potential direction of the assigned rating. An outlook is not
necessarily a precursor of a rating change.

SUSPENTION

In the event that JCR_VIS deems that, because of lack of


cooperation with regard to the provision of information or for any
other reason it is not possible to access the current status of the
assigned rating, the rating will be suspended.

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History of Islamic Banking in Pakistan
"Seek the other world by means of what Allah has
bestowed upon you"(28:77) 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]

_
“Establish Islamic banking as banking of choice to
facilitate implementation of an equitable economic system, providing a
strong foundation for establishing a fari and just society for mankind”
Vision, Meezan Bank Limited.

-1947-

The inception of Pakistan as the first Islamic Republic created in the


name of Islam.

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-1949-

The Objectives Resolution was adopted by the first


Constituent Assembly based on the ideology of a sovereign Islamic
state. This was the first step in the conception towards Pakistan’s
Constitution.
-1956-

The first Constitution defined Islam as State Religion and all laws
to be according to the injunction of the Quran and Sunnah.

-1962-

The establishment of Council of Islamic Ideology (CII) was


followed by the conception of the second constitution of Pakistan.

-1973-

The third constitution of Pakistan was passed allowing comprehensive


legislation on Islamic principles and establishment of Federal Shariat
Court.

-1980-

CII presents report on the elimination of Interest genuinely considered


to be the first major comprehensive work in the world undertaken on
Islamic banking and finance.

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-1985-

Commercial banks transformed their nomenclature stating all Rupee


saving accounts as interest-free. However, foreign currency deposits in
Pakistan and on lending of foreign loans continued as before.

-1991-

Procedure adopted by banks in 1985 was declared un Islamic by


the Federal Shariat Court (FSC). The Government and some banks/DFIs
made appeals to the Shariat Appellate Bench (SAB) of the Supreme
Court of Pakistan.

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-1997-

Al-Meezan Investment Bank is established as the first Islamic


bank of Pakistan. Mr. Irfan Siddiqui appointed as first and founding
Chief Executive Officer.

-1999-

The Shariat Appellate Bench of the Supreme Court of Pakistan


rejects the appeals and directs all laws on interest banking to cease.
The government sets of a high level commission, task forces and
committees to institute and promote Islamic banking on parallel
banking on parallel system.

-2001-

The Shariah Supervisory Board is established at Al-Meezan Investment


Bank led by Justice (Retd.) Muhammad Taqi Usmani as chairman. State
Bank sets criteria for establishment of Islamic commercial banks in
private sector and subsidiaries and stand-alone branches by existing
commercial banks to conduct Islamic banking in the country.

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-2002-

The first Islamic banking license is issued to Meezan Bank by the State
bank of Pakistan. Societe Generale, a French commercial bank’s
operations in Pakistan was amalgamated with Meezan Bank. President
General Pervez Musharraf inaugurates the first commercial banking
branch of MBL at the FTC Building, Karachi.

-2003-

A Musharaka-based Export Refinance Scheme has been designed


by the State Bank in coordination with Meezan Bank Limited, in order
to provide export finance to eligible exporters on the basis of Islamic
modes of financing. Efforts are underway to develop Islamic money
market instruments like Ijarah Sukuk to facilitate the banks in respect
of liquidity and SLR management.

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Pakistan’s first Shariah compliant Mortgage facility is launched by
Meezan Bank. Approved by the Shariah Supervisory Board, the product
enables home purchase, home construction, renovation, as well as
replacement of any existing mortgage.
Al Meezan Investment Management Limited (AMIM), a group company
of Meezan Bank, introduces Meezan Islamic Fund (MIF). MIF is an open-
end mutual fund that is Shariah compliant.

-2004-

The State Bank establishes a dedicated Islamic Banking Department


(IBD) by merging the Islamic Economics Division of the Research
Department with the Islamic Banking Division of the Banking Policy
Department. A Shariah Board has been appointed to regulate and
approve guidelines for the emerging Islamic Banking industry.

The Government of Pakistan awards the mandate for debut of


international Sukuk (Bond) offering for USD 500 million. The offering is
a success and establishes a benchmark for Pakistan. Meezan Bank
acted as the Shariah Structuring Advisor for this historic transaction.
Meezan Bank’s asset management arm, Al Meezan Investment
Management Limited (AMIM), launches the Meezan Balance Fund
(MBF). The offering was oversubscribed 1.25 times.

- 2005 –

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Meezan Bank launches the Meezan Islamic Institution Deposit
Account (MIIDA), a unique product tailored exclusively for Islamic
Financial Institutions (IFIs). The facility is the first of its kind in Pakistan,
whereby Islamic Banks (including dedicated, as well as conventional
Islamic windows) now have the opportunity to manage excess liquidity
by maintaining a checking account with Meezan Bank specifically
designed for this purpose.

Meezan Bank becomes the first customer of Islamic Insurance (Takaful)


by signing the first Memorandum of Understanding MoU with Pak-
Kuwait Takaful Company Limited (PKTCL). The signing of this MoU has
ushered Pakistan into a new era of Islamic Insurance (Takaful).

-2006-

A number of new dedicated Islamic Banks, namely Bank Islami and


Dubai Islamic Bank, commence operations in Pakistan. Meezan
continues its leadership position in the industry by more than doubling
it branch network to a total of 62 branches in 21 cities, clearly
establishing itself as the largest Islamic Bank of the country.

Meezan Bank becomes the first Islamic bank to introduce 8 am to 8 pm


banking at select branches in Karachi.

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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

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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 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 values and ensuring
recognition and a quality banking
experience to our customers.

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Difference between Conventional and Islamic
banking

Conventional Banking Islamic Banking


Functions and operating modes Conventional Banking Islamic
are based on man made Banking
principles. Functions and operating modes
are based on principles of Islamic
Shariah.
Investor is assured a It promotes risk sharing between
predetermined rate of interest. provider of capital and the user of
funds.
Creditor and debtor relationship Relationship between Islamic bank
between the bank and the client. and client is that of partners,
investors & traders, and buyer &
seller.

Lending money and getting it back Participation in partnership


with compounding interest is the business is the fundamental
fundamental function. function. So Islamic Banks have to
understand the customer’s
business very well.
It can charge additional money No provision to charge any extra
(penalty and compounded money from the defaulters. Only
interest) in case of defaulters. small amount of compensation
and these proceeds are given to
charity. Rebates are given for
early settlement at the Bank’s
discretion.
A conventional bank has to Only guarantee deposits for

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guarantee all its deposits. deposit account, which is based on
the principle of al-Wadiah, thus
the depositors are guaranteed
repayment of their funds, however
if the
account is based on the
Mudarabah
concept, client have to share in a
loss
Position.
Greater emphasis is paid on Greater emphasis is on the
creditworthiness of the clients. viability of the projects.

Borrowing from the money market For the Islamic banks, money
is market funding must be based on
Relatively easier. a Shariah approved underlying
transaction.
It does not deal with Zakat. In the modern Islamic banking
system, it has become one of the
service-oriented functions of the
Islamic banks to be a Zakat
Collection Centre.
Corporate profile Meezan Bank Limited:

Shariah board:
The members of the Shariah Board of Meezan Bank are Internationally-
renown scholars, serving on the boards of many Islamic banks
operating in different countries.

The members of the Shariah Board are:

• Justice (Retd.) Muhammad Taqi Usmani


• Dr. Abdul Sattar Abu Ghuddah
• Sheikh Essam M. Ishaq
• Dr. Muhammad Imran Ashraf Usmani - Shariah Advisor

Justice (Retd.) Muhammad Taqi Usmani

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Justice (Retd.) Muhammad Taqi Usmani is a
renowned figure in the field of Shariah, particularly in Islamic Finance.
He currently holds advisory positions in a number of financial
institutions practicing Islamic Banking and Finance.

Justice (Retd.) Muhammad Taqi Usmani has vast experience


in Islamic Shariah, teaching various subjects on Islam for 39 years. He
has served as a Judge in the Shariat Appellate Bench, Supreme Court
of Pakistan from 1982 to 2002. He is also the Editor of the magazine
‘Albalagh’ (a weekly publication of Jamia Darul Uloom, Karachi) as well
as an active contributor of articles in leading Pakistani newspapers.

Born in Pakistan, Justice (Retd.) Muhammad Taqi


Usmani graduated from Punjab University, Pakistan in 1970 and also
holds an LLB from Karachi University, Pakistan. Prior to these, he
completed the ‘Takhassus’ course, which is the specialization course of
Islamic ‘Fiqh’ and ‘Fatwa’ (Islamic Jurisprudence) from Jamia Darul
Uloom Karachi, Pakistan.

In March 2004, His Highness Sheikh


Mohammad Bin Rashid Al Maktoum (Dubai Crown Prince and UAE
Minister of Defense) presented a special award to Justice (Retd.)
Muhammad Taqi Usmani in recognition of his lifetime service and
achievement in Islamic Finance at the occasion of International Islamic
Finance Forum, Dubai, which is one of the biggest events in Islamic
Finance Industry.

Other positions currently held:

• Permanent Member International Islamic Fiqh Academy, Jeddah,


Saudi Arabia
• Vice President, Darul Uloom Karachi, Pakistan
• Chairman, Shariah Council AAOIFI, Bahrain
• Member and Former Chairman, Islamic Fiqh Academy of Rabita-
al-Alam-e-Islami, Makkah, Saudi Arabia
• Member, European Council of Fatwa and Research, Dublin,
Ireland
• Chairman, Center for Islamic Economics Pakistan
• Chairman, Shariah Board Dow Jones Islamic Market Index, New
York, USA
• Chairman, Shariah Board, Bahrain Monetary Agency, Bahrain
• Chairman, Shariah Board, Amana Investments Limited, Sri Lanka
• Chairman, Shariah Board Abu Dhabi Islamic Bank, UAE
• Chairman, Shariah Board Islamic House of Britain plc, UK

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• Member, Shariah Board, First Islamic Investment Bank, Bahrain
• Member Shariah Board, Islamic Corporation for Development of
the Private Sector, (an organ of IDB), Jeddah, Saudi Arabia
• Chairman, Shariah Board Islamic Financial Services Board.
• Chairman, Shariah Board International Islamic Rating Agency
• Member Shariah Board, Guidance Financial Group, USA

Dr.Abdul Sattar Ghuddah

Dr. Abdul Sattar Abu Ghuddah is the Shariah


Advisor and Director, Department of Financial Instruments at Al-Baraka
Investment Co. of Saudi Arabia. He holds a PhD in Islamic Law from Al
Azhar University Cairo, Egypt. He is an active member of Islamic Fiqh
Academy and the Accounting & Auditing Standards Board of Islamic
Financial Institutions.

Dr. Abdul Sattar teaches Fiqh, Islamic studies and


Arabic in Riyadh and has done a valuable task of research and
compiling information for the Fiqh Encyclopedia in the Ministry of
‘Awqaf’ and Islamic Affairs, Kuwait. He has been a member of the
‘Fatwa’ Board in the same Ministry from 1982 to 1990.

Other positions currently held:

• Member Shariah Board, Dow Jones Islamic Market Indexes, USA


• Member Shariah Board, UBS, Switzerland
• Member Shariah Board Guidance Financial Group, USA
• Member Shariah Board, Saudi American Bank, Saudi Arabia
• Member Shariah Supervisory Board, First Islamic Investment
Bank, Bahrain.

Sheikh Essam M.Ishaq

Born in Bahrain Sheikh Essam M. Ishaq


graduated in Political Science from McGill University, Montreal,
Canada. Currently he is teaching Fiqh, Aqeeda and Tafseer courses
in Bahrain. He holds the position of Shariah Advisor at Discover
Islam, Bahrain. He holds position of Director in a number of
Business and Educational institutions, which include:

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• Al Baraka Islamic Bank, Bahrain
• Bahrain Development Bank, Bahrain
• Discover Islam, Bahrain
• Middle East Traders, Bahrain
• Zawaya Property Development, Bahrain
• Al Iman Islamic School, Bahrain
• Muslim Educational Society, Bahrain

Dr Muhammad Imran Ashraf Usmani – Shariah Advisor

Dr. Muhammad Imran Ashraf Usmani is a M.


Phil and Ph. D. in Islamic Finance and is a graduated as a scholar from
Jamia Darul Uloom, Karachi, Pakistan. He has also completed the
specialization course in Islamic Jurisprudence from Jamia Darul Uloom,
Karachi, Pakistan. Currently he is involved in conducting training
sessions for Meezan Bank’s staff in the area of Islamic finance and has
been teaching several subjects of Islamic Fiqh since 1998 at Jamia
Darul-Uloom, Karachi, Pakistan. Dr. Usmani has also authored various
books on Islamic Shariah and especially his book ‘Meezan Bank’s Guide
to Islamic banking’ has been the guiding light in the area of Islamic
Banking.

Other positions currently held:

• Member, Shariah Board, State Bank of Pakistan


• Member, Shariah Supervisory Board, Credit Suisse Bank,
Switzerland
• Shariah Advisor and Shariah Board Secretary, Guidance
Financial Group, USA
• Shariah Advisor, DCD Financial Group, UK
• Member of Shariah Board, Lloyds TSB Bank, UK
• Member of Advisory / Member of Shariah Supervisory Board,
HSBC Amanah (Global)
• Member, Shariah Board, Future Growth Equity Fund, South
Africa
• Shariah Advisor/ Member of Shariah Supervisory Board ABN
AMRO Bank (Global)
• Shariah Advisor/ Member of Shariah Supervisory Board Japan
Bank of International Corp (Global).
• Member of Shariah Supervisory Board AIG Insurance Company
(Global)

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• Member of Shariah Supervisory Board Pak Kuwait Takaful
Company Ltd.
• Executive Director (Administrator), HFS Project and Mutawassita
classes, Jamia Darul Uloom Karachi

Board of Directors

• H. E. Sheikh Ebrahim Bin Khalifa Al-Khalifa


(Chairman)
(Undersecretary, Ministry of Finance &
National Economy, Kingdom of Bahrain)

• Naser Abdul Mohsen Al-Marri (Vice


Chairman)

• Irfan Siddiqui (President & Chief Executive


Officer)

• Istaqbal Mehdi (Director)

• Mohammed Abdul-Rehman Hussain (Director)

• Nawid Ahsan (Director)

• Ariful Islam (Chief Operating


Officer)

• Rana Ahmed Humayun (Director)

• Mohammed Azzaroog Rajab (Director)

• Ahmed Abdul Rahim Mohamed (Director)

Share Holding of the Meezan bank limited:

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Shareholding Structure Rs. In %
million
Pakistan Kuwait Investment Company (Pvt.) 1,143 30
Limited
Shamil Bank of Bahrain E.C 979 26

Islamic Development Bank, Jeddah 352 9

Noor Financial Investments Company 588 16

Others 727 19

Paid up Capital 3,780 100%

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Management System:

Organogram of the Bank:

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Departments

Departments

Meezan bank Allama Iqbal Town has a following department:

 Customer Service Division

• Account Opening Department


• Cash Department
• Remittances Department

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• Clearing/Outstation Bills Department

 Service and Quality Coordination Division

• Car Ijarah
• Meezan Islamic Funds (MIF)
• Mahana Amdan Certificates (MAC)
• Mahana Mudarbah Certificates (MMC)
• Certificates of Islamic Investment (COII)
• Meezan Providence Certificates (MPC)
• Dollar Mudarabah Certificates (DMC)

 Finance Division

• SME Financing Department

 Accounts Department
 IT Department

CUSTOMER SERVICE DIVISION


The Customer Service Division is a combination of all the departments,
which are involved in the provision of customer services. The section
basically provides the general banking services like opening of
accounts, deposits and with drawls of cash. The Customer Service
Division consists of the following departments:

• Account Opening Department


• Cash Department
• Remittance Department

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• Clearing/Outstation Bills Department

Account Opening Department


Deposits are considered backbone of any bank. Since a bank has two
main functions. Accepting of Deposits & Advancing of Loans, So the
first priority of bank is to attract deposits. The Account Opening
Department is involved not only in the opening of accounts but also
the provision of many other utility services for the customers.

Functions:

Followings are the functions of Account Opening Department:

• Opening of various types of accounts


• Account closing
• ATM
• Safe Deposit Lockers
• Statement of Accounts
• Queries

Opening of Accounts

Meezan Bank Limited is offering various types of accounts for it’s


customers. The bank’s account opening department is very keen
provide efficient and friendly services to its customers.

Types of Accounts

• Riba Free Current Account


• Riba Free Dollar Saving Account
• Riba Free Karobari Munafa Account
• Riba Free Rupee Saving Account

Riba Free Current Account

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Key features of the Riba-Free Current Account

The main features of Riba Free Current Account are

• Free Online Banking services at our branch network nationwide

• Instant access to funds at any online branch.

• No restriction on withdrawals or number of transactions

• Bank balance certificates & duplicate statements of account

• Stop Payment & Hold Mail instructions

• 24/7 Card – your ATM & Debit Card in one

• 24/7 Call Center with complete Tele-banking services

• Personal financial consultancy services

• Dedicated Banking hours from 9am to 5pm (Saturdays 9am to


12:30pm)

Riba Free Dollar Saving Account

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

Riba-Free Dollar Saving Account works under the principles of


Mudarabah and is strictly in conformity with the rules of Islamic
Shariah.

On agreeing to become an account holder, the customer enters into a


relationship based on Mudarabah with Meezan Bank. Under this
relationship, the customer is an Investor (Rab ul Mal), and the bank is
the Manager (Mudarib) of the funds deposited by the customers.

The bank allocates the funds received from the customers to a foreign
currency Deposit pool. These funds from the pool are invested under
Islamic modes that include, but are not restricted to, Murabaha, Sukuk
and Ijarah.

The bank calculates the profit of the deposit pool every month. The
Banks profit sharing ratio is 50% of Gross Income and Depositors profit
sharing ratio is 50% of Gross Income, calculated after deducting costs
and expenses directly incurred in deriving that Income.

How is profit calculated and distributed

• The bank calculates the profit of the deposit pool every month.
Profit is distributed at the Gross Income level. The Gross Income
is calculated after deducting costs and expenses directly
incurred in deriving that Income.

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• Gross income of the deposit pool is shared between the Bank
(Mudarib) and customers (Rab ul Mal) on the basis of a pre-
determined profit sharing ratio announced at the beginning of
the period.
• The Banks profit sharing ratio is 50% of Gross Income and
Depositors profit sharing ratio is 50% of Gross Income.
• The profit is distributed among the account holders on the basis
of predetermined weightages, announced at the beginning of
the month, based on their respective category/tiers.
• At the end of the month, the Bank may unilaterally reduce its
profit sharing ratio for the benefit of depositors.
• In case of a loss, as per the rules of Mudarabah, the deposit pool
shall bear the loss in the ratios of investment of depositors.
• Profits to be calculated on average monthly balance and
disbursed every month
• Profit rates and weightages shall be derived and announced on a
monthly basis

Key features of the Dollar Saving Account

• Personalized cheque books


• No restriction on withdrawals or number of transactions.
• Call center facilities
• Monthly profit payment
• Taking stop payment instructions
• Taking hold mail instructions
• Issuance of duplicate statement of account
• Personal financial consultancy services

Riba Free Saving Account

A unique bank account that offers the opportunity to earn Halal profits,
while enjoying a range of added benefits. It can be opened with a
minimum amount of only Rs.10,000. The profit on this account is
calculated and paid on a monthly basis, and comes with a variety of
free benefits including personalized check books, no restrictions on
transactions, priority banking and so on.

• Minimum amount required to open account Rs. 10,000

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Riba-Free Rupee Saving Account works under the principles of
Mudarabah and is strictly in conformity with the rules of Islamic
Shariah.
On agreeing to become an account holder, the customer enters into a
relationship based on Mudarabah with Meezan Bank. Under this
relationship, the customer is an Investor (Rab ul Mal), and the bank is
the Manager (Mudarib) of the funds deposited by the customers.

The bank allocates the funds received from the customers to a deposit
pool. These funds from the pool are utilized to provide financing to
customers under Islamic modes that include, but are not restricted to,
Murabaha and Ijarah.

The bank calculates the profit of the deposit pool every month. The
Banks profit sharing ratio is 50% of Gross Income and Depositors profit
sharing ratio is 50% of Gross Income, calculated after deducting costs
and expenses directly incurred in deriving that Income.

How is profit calculated and distributed

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• The bank calculates the profit of the deposit pool every month.
Profit is distributed at the Gross Income level. The Gross Income
is calculated after deducting costs and expenses directly
incurred in deriving that Income.
• Gross income of the deposit pool is shared between the Bank
(Mudarib) and customers (Rab ul Mal) on the basis of a pre-
determined profit sharing ratio announced at the beginning of
the period.
• The Banks profit sharing ratio is 50% of Gross Income and
Depositors profit sharing ratio is 50% of Gross Income.
• The profit is distributed among the account holders on the basis
of predetermined weightages, announced at the beginning of the
month, based on their respective category/tiers.
• At the end of the month, the Bank may unilaterally reduce its
profit sharing ratio for the benefit of depositors.
• In case of a loss, as per the rules of Mudarabah, the deposit pool
shall bear the loss in the ratios of investment of depositors.
• Profits to be calculated on average monthly balance and
disbursed every month
• Profit rates and weightages shall be derived and announced on a
monthly
Basis

Additional features:

Followings are the features

• Instant access to funds at any online branch.


• Free Online Banking services at our branch network nationwide
• No restriction on withdrawals or number of transactions
• Bank balance certificates & duplicate statements of account
• Stop Payment & Hold Mail instructions
• 24/7 Card – your ATM & Debit Card in one
• 24/7 Call Center with complete Tele-banking services
• Personal financial consultancy services
• Dedicated Banking hours from 9am to 5pm (Saturdays 9am to
12:30pm)

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Riba Free Karobari Munafa Account

Karobari Munafa is a savings account specifically tailored for large


Corporate or GoP controlled entities. It allows customers to earn higher
returns on surplus cash balances. It has no preset transaction limits
and comes with a variety of free packaged benefits
Riba-Free Karobari Munafa Account works under the principles of
Mudarabah and is strictly in conformity with the rules of Islamic
Shariah.

On agreeing to become an account holder, the customer enters into a


relationship based on Mudarabah with Meezan Bank. Under this
relationship, the Customer is an Investor (Rab ul Mal), and the Bank is
the Manager (Mudarib) of the funds deposited by the customers.

The bank allocates the funds received from the customers to a deposit
pool. These funds from the pool are utilized to provide financing to
customers under Islamic modes that include, but are not restricted to,
Murabaha and Ijarah.

The bank calculates the profit of the deposit pool every month. The
Banks profit sharing ratio is 50% of Gross Income and Depositors profit
sharing ratio is 50% of Gross Income, calculated after deducting costs
and expenses directly incurred in deriving that Income.

34
How is profit calculated and distributed

• The bank calculates the profit of the deposit pool every month.
Profit is distributed at the Gross Income level. The Gross Income
is calculated after deducting costs and expenses directly
incurred in deriving that Income.
• Gross income of the deposit pool is shared between the Bank
(Mudarib) and customers (Rab ul Mal) on the basis of a pre-
determined profit sharing ratio announced at the beginning of
the period.
• The Banks profit sharing ratio is 50% of Gross Income and
Depositors profit sharing ratio is 50% of Gross Income.
• The profit is distributed among the account holders on the basis
of predetermined weightages, announced at the beginning of
the month, based on their respective category/tiers.
• At the end of the month, the Bank may unilaterally reduce its
profit sharing ratio for the benefit of depositors.
• In case of a loss, as per the rules of Mudarabah, the deposit pool
shall bear the loss in the ratios of investment of depositors.
• Profits to be calculated on average monthly balance and
disbursed every month
• Profit rates and weightages shall be derived and announced on a
monthly basis

Basic features of Karobari Munafa Account

Followings are the features

• Profit will be calculated on a Daily Product Basis


• Minimum balance requirement for account opening is Rs. 1
Million.
• No restriction on deposits and withdrawals.
• Free facilities: chequebooks and pay orders.
• Dedicated account / relationship manager.

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Nature of Accounts

All the above accounts can be opened in the following natures:

• Individual Accounts

• Joint Account

• Minor Accounts

• Sole Proprietor Accounts

• Illiterate Customer Accounts

• Partnership Accounts

• Limited Liability Companies Accounts

• Associations, Committee, Societies or Club Accounts etc.

• Non-Resident Rupee Account

• Trust Accounts (with prior permission from the HO)

• Executors, Administers Accounts (with prior permission from the


HO)

• Local Bodies Accounts

• Special Convertible Rupee Account (SCRA)

• Staff Accounts

Documents Requirement:

Different documents are required to be attached with the application


from depending on the nature of account i-e, different documents are
required from different clients. Following are the necessary documents
to be attached with the application form in case of accounts opened in
different natures.

36
Individual Account

• Clear copy of CNIC (New computerized ID card)

• Current signature of the customer is needed on NIC’S Photocopy

• In case NIC don’t bear the picture of NIC holder, (OR) Copy of
Driving License (OR) A passport size photograph is needed.

• Original visiting card (OR) Copy of Company Card (OR) A letter


from employer confirming the status of employment in original.

• Two specimen signature cards with signatures of customer


 In case of signatures are in URDU or are not
steady/firm/even:
o Customer has to sign a vernacular
indemnity
o Four current passport size photographs
are required.
o Withdrawals from such accounts can only
be made in person.

• In case customer is opening a saving account and claiming


exemption from compulsory deduction of Zakat:
 A Zakat declaration (in original) has to be submitted which
should be executed on Rs.20/- STAMP paper and attested
by notary public.
 Photocopy of Zakat declaration is also acceptable if both
sides of stamp paper have been clearly photocopied and
the notary public has attested it in original.

• Account maintenance certificate in case the individual is


maintaining an account with another bank previously.

Joint Account
In case of joint account in addition to all documents
required in case of individual account, copy of CNIC of all persons
involved in joint Account and Specimen Signature of all will be
required.

37
Public Limited Companies

• Account opening form completed with signatures of


authorized signatures along with company stamp.

• Specimen signature cards with signatures of authorized


signatures along with company stamp.

• Board resolution embossed with company’s SEAL, which


should clearly state authorized signature (Certified by the
company’s Secretary/Director and attested by chairman of
the company)

• Copies of national identity cards/Passports of all directors


attested by Director/Secretary of the company.

• Copy of Memorandum and Articles of Association (certified by


the company’s Secretary/Directors)

• List of Directors with their signatures (certified by the


company’s Secretary/Directors)

• Copy of certificate of Incorporation (Certified by the


company’s Secretary/Directors)

• Copy of certificates of Commencement of Business (certified


by the company’s Secretary)

• FORM-29 (Certified by the company’s Secretary/Director)

• Copy of National tax number certificate (Certified by the


company’s Secretary/Director)

Private Limited Company

• Account opening form completed with signatures of


authorized signatures along with company stamp.

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• Specimen signature cards with signatures of authorized
signatures along with company stamp.

• Board resolution embossed with company’s SEAL, which


should clearly state authorized signature (Certified by the
company’s Secretary/Director and attested by chairman of
the company)

• Copies of national identity cards/Passports of all directors


attested by Director/Secretary of the company.

• Copy of Memorandum and Articles of Association (certified by


the company’s Secretary/Directors)

• List of Directors with their signatures (certified by the


company’s Secretary/Directors)

• Copy of certificate of Incorporation (Certified by the


company’s Secretary/Directors)

• FORM-29 (Certified by the company’s Secretary/Director)

• Copy of National tax number certificate (Certified by the


company’s Secretary/Director)

Partnership Account

• Account Opening Form completed and singed by all the partners


of the firm, bearing the stamp of the firm.

• Signed specimen signature cards by authorized partners with


stamp of the firm.

• Copies of NIC/Passports of all partners.

• Copy of National Tax Number (NTN) Certificate, signed and


stamped by the authorized partners.

• Copy of Partnership Deed (signed and stamped by the authorized


partners)

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 Names and addresses clearly stated of all partners
 Authorized signature clearly stated
 Nature of the business clearly stated
 Original Partnership Deed should be signed by all partners.

• Letter of authority (for authorized partner to operate the


account on other partner’s behalf)

Sole Proprietorship

• Copy of National Identity Card/Passport

• Copy of National Tax Number(NTN) Certificate

• Declaration of Sole Proprietorship (To be printed on Firm’s letter


head)

• Stamp of the Firm to be affixed along side all signature

• Copy of Business registration certificate (if any)

• Visiting card of Sole Proprietor

Minor Account

• Guardian Account on behalf of Minor

• Signature of Guardian

• CNIC of Guardian

• Specimen Signature Card (Minor date of birth in Bold Form)

• No third party can operate this account (only nominated person


may operate)

• Form “B”

Illiterate Account (Photo Account)

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• Thumb impression of both thumbs (in presence of customer
service officer on Specimen Signature Card)

• CNIC copy

Trust Account

• Resolution of Board of Trustees

• List of trustees (Preferably signs of all Board of trustees on


account opening form)

• By-laws(true copy/certified copy)

• Trust deed

• Income tax exemption certificate

• Justification from Branch Manager for opening of this type of


account.

Resident and Non-Resident Account

• Passport copy (for stay validity)

• From “QA 7”(Sent to SBP in case of foreigner and resident)

• Form “QA 22” is for Non-Resident


 No debit and credit in absence of this
 Remittances from abroad (not required for resident)

Note
Status of this joint account of resident and non-resident is Non-
resident.

Procedure for Opening of Account


Following are the Account Opening Procedures:

41
• First step for opening a new account will be the verification of the
introducer of new account. The introducer should preferably be
an existing Account Holder of the bank/ Branch. During
verification of the introducer, Customer Service Officer (CSO) at
Front Office will further ensure that:

• While accepting introduction for opening of new accounts,


through enquiries will be made the credential of introducer and
invariably record the full details i-e, name, CNIC Number, address
and telephone number etc in AOF.

• Account holders whose accounts are inoperative/ dormant


cannot introduce any new account.

• An account holder maintaining an account in his/her own or in


the name of a firm where he/she is a proprietor or partner should
not introduce account of another firm where he/she is also a
proprietor or partner.

• MBL permanent staff may introduce accounts only for those


persons who are personally known to them.

• CSO will furnish a complete set of AOF after ascertaining the


requirement of the customer along with other relevant
documents; form a letter etc, to the customer.

• Customer will be facilitated by CSO in filling the AOF and provide


clarifications and necessary assistance if required by the
Customer, for opening of account.

• The customer will sign the AOF, in the presence CSO of the
branch.

• It will be CSO’s responsibility to review the AOF and underlying


documents and ensure that the AOF is duly completed in all
aspects.

• The AOF along with relevant documents will then be forwarded to


OIC (Officer in Charge) customer service.

• A copy of the CNIC of the customer will be attested by OIC


Account opening or Manager Operation of the branch who will
sign the same after having it compared with the original CNIC
and writing “Original Seen” on the copy as evidence.

42
• OIC CSD will ensure that all requirements for opening of new
account have been fulfilled and AOF is completed against all the
signatures give in the AOF and SSC and affix the stamp of
“Signature Admitted” near the specimen signatures of the
account holder / customer and sign in full. OIC CSD will also
verify the signatures of the introducer and affix the stamp of
“Signature Verified”

• MO (Manager Operation) will ensure that all the requirements for


Account Opening have been met and the styles of the signatures
of introducer are verified and customer signature on SSC is
admitted by a designated officer. MO wills those sign in full on
the AOF authorizing opening of account. MO will also approve the
KYC by signing in full.

• Once the above formalities are duly completed, CSO will obtain
Account Number from the System and note it down on the AOF,
SSC, and all other relevant underlying documents.

• CSO will then key in the data of the new Account Holder(s) in the
system and new account transaction will be saved in the system.

• CSO will print new account profile and hand over all forms and
underlying documents to the MO for authorization and
supervision in the system.

• MO will scrutinize AOF and all underlying documents and


compare the same with the information loaded by the CSO in he
‘Islamic Banker’ system by retrieving the Account Opening data
i-e, name of the customer, title of account, CNIC number and
SBP’s Depositor’s code etc in the Islamic Banker system. MO will
this data on screen and once satisfied with documentation and
accuracy of the transaction in the system, MO will authorize/
supervise the same and the new account will become operative.

• The CSO will ensure that the ‘Letter of Thanks’ on the Bank’s
format has been sent to the new account holder through
registered post/ courier. This precaution would not only
accomplish the purpose of confirming his / her address but also
notify the Account Holder that an account has been opened in his
/ her name. a copy of this letter along with courier receipt will be
placed with the relevant AOF.

43
• A similar thank you letter will be sent to introducer as
confirmation / notification that an account has been introduced
by him.

• Next morning, Manager Operation will review ‘Account Opened


List’ produced by the IB system of the accounts opened during
the previous day and ensure that only approved accounts have
been opened in the system.

• MO will send this ‘Account Opened List’ along with all AOF for the
review of BM for his review and signatures.

• Branch Manager will review all account opened previous day and
further ensure that:
 AOF has been completely filled-in and no mandatory field is
left blank.
 Any field, which is not applicable, is crossed or marked
’N/A’
 Required documents, letters and forms according to the
type of account are duly attached along with the AOF, in
accordance with the requirements specified in relevant
sections.
 Attested copy(s) of CNIC (s) of Account Holder(s) is
attached with the AOF.
 Introducer’s signatures are verified and ‘signature verified’
stamp is affixed.
 Signature(s) on SSC are duly admitted by MO and stamp
affixed after placing signatures.
 AOF is signed by OIC CSO as first and MO as second
signatory.
 Once satisfied BM will counter sign the AOF as an evidence
of having reviewed all account opened.

Terms and Conditions for Account Opening:

INITIAL DEPOSIT:
Initial deposit must be in CASH. Cheque may only
be accepted as initial deposit in case of reputable sound parties and on
personal responsibility of Branch Manager. In all such cases, the
cheque when tendered should be crossed by the Account Holder /

44
Customer before being lodged for collection. Cheque Book should only
be issued after the proceed of crossed cheque has been actually
realized and all KYC formalities have been completed.

SIMILAR ACCOUNT:
In case of business account, CSO shall ascertain
from the List of existing Accounts in IB System that the title of new
Account is not similar to any other account opened earlier. In case of
individual account CSO must ensure that a person already having a
saving or current account will not be allowed to open additional saving
or current account in same Branch.

CHANGE OF ADDRESS:
A request for the change of address must be
obtained in writing from customer. Before changing the address in the
system CSO must ensure to obtain approved from Manager Operation
or Branch Manager. A thank you letter must be sent to customer’s new
address to accomplish and confirm his/ her availability on new address.

Whenever a request for the changes of


residential change address is received Branch must also obtain
Customer new telephone number as in most of the cases the residence
telephone will also change unless the change of address is in same
locality.

CHANGE IN NATURE OF ACCOUNT:


Once an account is opened, regardless of
the type of account, the same cannot be and should not be altered/
changed later. This type of an account opened in individual’s name
CANNOT be later converted to Joint Account by adding the name of
another person on the AOF and not the nature of account opened as
Current Account can be later changed to PLS Saving Account.
If the change is desired, the Account Holder should be advised to close
the account and open a fresh account. Branches are therefore, advised
to ensure that no changes are made in the nature of account, under
any circumstances.
Any such change, if brought in the notice of management or
highlighted during the audit, will be a ground for disciplinary action.

SAFE CUSTODY OF AOF (ACCOUNT OPENING FORM):


Account Opening Forms and underlying relevant documents relating to
all type of accounts should be kept under the joint custody of the MO
and OIC Customer Service, as the case may be, and must be placed in
the strong room or in fireproof cabinet.

45
NOTE:
CNIC of all new accounts must be verified through NADRA verification
system at Head Office Operation Department.

ACCOUNT CLOSING:
An account may be closed due to any one of the following reasons:

• Zero Balance Accounts

• Customer’s specific request

Zero Balance Account

The balances in the customer’s accounts are


reviewed periodically usually after every month and the accounts
having zero balances in their accounts are closed after sending a
notice by post of such closure.
Customer’s specific:
The account may also be closed on the specific request of the
account holder. The account holder may for any reason get his
account closed after charges of account closing and undergoing the
procedure for account closing.
Procedure for account closing:
When a customer wants to close it’s account he/she has to follow a
specific procedure which is as follows:

1. Application Form

The customer who wants to close his account gets an


application form for account closing and fills it out mentioning all
the information like account number, account name, reason of
closing the account etc.

2. Handover the form and cheque book

46
The client hands over the chequebooks and account
closing form to the officer.

3. Account closing charges

Account closing charges of Rs.200 are debited from the


account.

4. Withdrawal of balance amount

After deducting the amount for account closing charges,


the balance amount in the account is given to the client through
a cheque drawn by him on his account.

5. Stamping

Now date and time stamp is marked on the account closing


form.

6. Entry in the system &register

Entry of account closing is made in the system and in the


register.

7. Filling

The account opening form and SS card of the account,


statement of the account which has been closed are taken out
of the files and stamped “Account Closed” and attached with
the account closing form and filled in account closing file.

ATM / Debit Card


The Meezan Bank 24/ 7 Card means you can stay in touch
with your money any time, anywhere.

Benefits:-

Meezan Bank 24/7 ATM / Debit Card offers the facilities of:

• Cash withdrawal at any time.

• Balance Enquiry.

47
• 24 hours and 7 days Accessibility.

• Purchasing at any of the merchant linked to the ORIX


Debit Card Machine.

24/7 ATM Card

The Meezan Bank ATM card allows you to draw cash anytime
nationwide. You no longer have to worry about carrying cash on a trip
within the country, simply carry your Meezan Bank ATM card and draw
cash or simply check your balance information from any Banks ATM
which is on the 1Link or MNet network.

• Accessing any conveniently located Meezan Bank ATM or those


of any other bank, you can withdraw up to Rs. 20,000 per
transaction and up to Rs. 20,000 per day.
• You may also perform a host of transactions including
transferring your funds across any online account or getting a
mini-statement or balance information. The 24/7 ATM provides
you all these facilities and much more.
• You can use any ATM which is on the 1Link or MNet network.

24/7 Debit Card

48
The Meezan Bank Debit Card allows you the benefit of making cash
free purchases and payments upto Rs.50,000 per day, saving you the
hassle and risk of carrying cash around or having to visit your branch
or ATM every time you need to make a payment.

Accepted at most prominent outlets across Pakistan, Meezan Bank


Debit card offers safety, convenience and efficiency 24 hours a day
seven days a week And unlike credit cards, there are no monthly bills,
no service charges and no late payment fees.

• The cashier will swipe the Card across the Orix machine and the
purchase amount will be entered.
• Select your desired account from the three options: Current and
Savings.
• Enter* your 4-digit Pin code for verification.
• After verification, the machine will issue a slip. Confirm your
transaction amount and collect your Debit Card.
• The transaction is complete and the money will be debited from
your account.

Account opening Department & ATM/ Debit Card:

Account Opening department is also involved with the activities


regarding ATM/Debit Card in the following ways:

• Issue of ATM/Debit Card


• Deduction of ATM/Debit Card Charges

 Issuance of ATM / Debit Card

49
ATM card is issued on the specific request of the
customer and Rs. 200 is charged out of the account of the customer.
Following is the procedure for issuance of ATM / Debit Card charges:

1. Application Form
For the issuance of ATM or Debit Card, there is a
specific form to be filled with AOF. The form requires the
information of the account i-e, account name and account
number.

2. Head Office Involvement


The form is sent to the head office Karachi. The head
office sends the PIN code at address of the account holder and
ATM / Debit Card to the bank branch.

3. Issuance of Card
The account holder after receiving the PIN code
can come to the bank and get his card.

4. Activation of Card
After handing over the card to the customer, the
officer activates the card making it usable on ATM machines.

 Deduction of ATM / Debit Card charges

The account opening officer is responsible to


make deduction of the following charges:

• Rs. 200 is charged for the issuance of Card.


• Rs. 15 per transaction is charged in case of usage of card
on machines other than Meezan Bank’s ATM like “I-Links”.

Procedure of using ATM Card:

50
Special Banking

It contains the following


• 8 to 8 Banking
• Ladies Banking

 8 to 8 Banking

51
Meezan Bank is proud to be the first bank in Pakistan to introduce the
concept of Eight to Eight banking, giving our customers access to the
branch from 8 'o clock in the morning to 8 'o clock at night.

This adds a completely new dimension to our banking service and has
been designed so as to enable our customers to do banking at their
convenience. Customers may visit their respective branch early in the
morning before going to work, or can drop by in the evening on their
way home and not have to worry about losing valuable office hours.

From 8AM till 5PM we offer the full range of our baking services. After
5PM and until 8PM our customers are able to carry out the numerous
transactions (value next day) which meet most of their daily
requirements.

Services provided from 8AM to 8PM include:

• Acceptance of cash
• Acceptance of cheque for collection and clearing
• Acceptance of transfer instructions
• Acceptance of Cheque Book, Pay Order and Demand Draft
requests
• Locker operation (where locker facility is available)
• Accepting ATM, telephone banking and Internet banking
requests.

 Ladies Banking

52
The Bank is the first in the country to introduce 'Ladies Banking' a
dedicated banking section only for ladies. This new service provides an
exclusive banking area as per the set Shariah principles for our lady
customers in a more comfortable environment.

The dedicated Customer Services Officer in our ladies only banking


area will provide consultancy for a full range of our Halal banking
services including, 9am to 5pm Online Banking, Term Certificates,
Current & Saving Accounts, Consumer Financing and 24/7 banking
services.

Services provided at the Ladies Banking Section include:

• Special Baking Services: Dedicated Customer Services Officer in


our ladies only banking area who provide consultancy for all
Halal banking needs.
• Consumer Financing: Car Ijarah and Easy Home
• Retail Baking: Current & Savings Accounts, Foreign Currency
Accounts, Term Deposits
• 24/7 Banking Services: ATM/Debit Card, Call Center, Internet
Banking

Ladies banking service is a part of Meezan Banks mission to focus on


customer convenience and service quality and make Islamic Banking
the banking of First Choice.

Remittance department

53
This department performs the following functions;

 Issuance of Demand Draft


 Issuance of Pay Order
 Issuance of Foreign Demand Draft
 FTT

DEMAND DRAFT

It refers to the payment of money on demand to the holder of


draft. Demand draft includes DD issued and DD payable. This is
issued against cash/value received from customer for payment
with in the country.

Issuance of demand draft

PAY ORDER

Pay Order is issued to other banks for payments by the bank.


This is issued against cash/value received from customer for
payment to be made with in the city.

FDD

It is issued for payment to overseas.

FTT

This is used for urgent payments to overseas against cash value


received from customer.

Service and Quality coordination division

54
Service and Quality coordination division offers an easy and affordable
way to acquire homes, vehicles and different type of investments and
these are completely based on Islamic Modes of Financing like
Murabaha, Mudarbah, Musharaka and Ijarah and totally Shariah
complaint. Service and Quality coordination division consist of
following services:

• Car Ijarah
• Meezan Islamic Funds (MIF)
• Mahana Amdan Certificates (MAC)
• Mahana Mudarbah Certificates (MMC)
• Certificates of Islamic Investment (COII)
• Meezan Providence Certificates (MPC)
• Dollar Mudarabah Certificates (DMC)

Car Ijarah

Ijarah

Ijarah is a term of Islamic Fiqh. Literally, it means

“To give something on rent”

The term “Ijarah” is used in two situations:


• It means ‘To employ the services of a person on wages’
• Another type of Ijarah relates to paying rent for use of an asset
or property.

This Ijarah is analogous to the English term “Leasing”

Car Ijarah

55
Meezan Bank’s mission to provide a one-stop shop for innovative value
added Shariah compliant products, Meezan Bank’s ‘Car Ijarah’ unit
provides a car financing, based on the principles of Ijarah and is free of
the element of interest.
Car Ijarah is Pakistan’s first "Interest Free" car financing based on the
Islamic financing mode of Ijarah (Islamic leasing). This product is ideal
for individuals looking for car financing while avoiding an interest-
based transaction.

Meezan Bank’s Car Ijarah is a car rental agreement, under which the
Bank purchases the car and rents it out to the customer for a period of
3 to 5 years, agreed at the time of the contract. Upon completion of
the lease period the customer gets ownership of the car against his
initial security deposit.

Meezan Bank’s Car Ijarah is a car rental agreement, under which the
Bank purchases the car and rents it out to the customer for a period of
3 to 5 years, agreed at the time of the contract. Upon completion of
the lease period the customer gets ownership of the car against his
initial security deposit.

Car Ijarah is unique and is approved by Meezan Banks Shariah


Board

Car Ijarah, designed under the supervision of Meezan Banks Shariah


Supervisory Board, is unique to car leasing facilities provided by other
banks.

Rights & liabilities of Owner v/s User

An Islamic Ijarah is an asset-based contract, i.e. the Lessor should have


ownership of the asset during the period of the contract. Under Islamic
Shariah, all ownership related rights and liabilities should lie with the
owner while all usage-related rights and liabilities should lie with the
user. A conventional lease contract does not distinguish between the
natures of these liabilities and places all liabilities on the user of the
asset, contradictory to Islamic Shariah. Under Ijarah, all ownership-

56
related risks lie with the Bank while all usage related risks lie with the
user, thus making the Lessor the true owner of the asset and making
the income generated through the contract permissible (Halal) for the
Bank.

Continuation of lease rentals in case of total loss or theft


of vehicle

If the leased vehicle is stolen or completely destroyed, the


conventional leasing company continues charging the lease rent till the
settlement of the Insurance claim. Under the Islamic system, rent is
consideration for usage of the leased asset, and if the asset has been
stolen or destroyed, the concept of rental becomes void.

Permissibility for Penalty of Late Payment of Rent under


Islamic Shariah

In most contemporary financial leases, an extra monetary amount is


charged, ‘in their income’, if the rent is not paid on time. This extra
amount is the considered as Riba and is Haram. Under Ijarah, the
Lessee may be asked to undertake, that if he fails to pay rent on its
due date, he will pay certain amount to a charity, which will be
administered through the Islamic Bank. For this purpose the bank
maintains a charity fund where such amounts may be credited and
disbursed for charitable purposes.

Key Features of Car Ijarah

• Ease of acquiring any new locally assembled car

• No upfront Insurance Payment

• No advance Rental

• Available in tenures of 3, 4 and 5 year

• Minimum security deposit as low as 15%

• Maximum security deposits are 50%

57
• Rentals are Monthly is Arrears after delivery.

• Car Ijarah of Meezan Bank Limited is available of all new and


used (Max 5 years old)

Eligibility Criteria

• Are a salaried individual/ self-employed


professional/businessman.

• Have a net take home income exceeding three times your


monthly installment.

• Have 3 years working/professional /business experience.

• Are working with your present employer for at least 6 months


(for salaried individuals).

• Net saving should be greater than the 150% of the rental.

• Address verification.

• Complete documentation.

Strengths of Car Ijarah

Following are the strengths of Car Ijarah of Meezan Bank Limited which
makes it different from other conventional banks:

• Completely Halal

• Availability of Takaful

• First rent after delivery of vehicle

• No hidden charges

• Competitive rates

• Competitive service

Car Ijarah also features Used Vehicles

58
In addition to our leasing of new cars, Meezan Bank also provides the
unique opportunity of leasing second hand, locally assembled, vehicles
as well. This feature is specifically designed as a highly economical
option. The Used Car Ijarah facility is made available at a minimum-
security deposit as low as 20%.

Used Car Selection Criteria

• The second hand car selected should be from its first owner.
• The vehicle should not be older than 5 years.
• The minimum security deposit for a vehicle up to 2 years of age
is 20%, while minimum security deposit for a vehicle over 2
years of age is 30%.
• At the time of termination of the Ijarah agreement, the vehicle
should not be more than 8 years old. This means that if a car is
5 years old, the Car Ijarah tenure is not more than 3 years and if
its 4 years old, the tenure may be set for a maximum 4 year
term.
• This facility is for locally manufactured cars of Suzuki, Toyota,
Honda & the new model of Santro only.
• Second hand vehicles selected should not be worth more than
Rs. 1 million and less than Rs. 250,000/-. Meezan Bank will have
the vehicle valued by an independent valuation company
accordingly.

Documentation and Eligibility for Car Ijarah

Individuals/Self-Employed Professionals/Businessmen

 Copy of NIC
 Two recent passport sized photographs
 Recent Utility Bill (Electric/Gas/Water) received at the
residential address
 Last Six Month Bank Statements
 Last Six Month Bank Statement of Business (for Businessmen)
 Certified/Original copy of Recent Pay slip (for Salaried
Individuals)
 Copy of Rent Agreement (if applicable)

Meezan Islamic Fund

59
Introduction to Meezan Islamic Fund
Meezan Islamic fund is an open-ended mutual fund. The open-ended
mutual funds enable investors to participate in diversified portfolio and
get returns thereon. There is no upper limit to apply in the units of MIF
however there is a lower limit for investor applying, which is as follow:
• Rs. 5,000 for new investor applying first time in MIF.
• Rs. 1,000 for subsequent investment i.e., from existing unit
holder.

A trust deed has been signed between the management company (MC)
and trustee to undertake the business of the fund. The Securities and
Exchange Commission (SECP) has developed NBFC (Non-Banking
Financial Corporation) Rules 2003 (replaced Asset Management Rule
1995), which govern the activities of these kinds of mutual funds and
other non-banking financial institutions.

PARTICIPANTS TO THE FUND

1. Management Company
Al-Meezan Investment Management Ltd.
(AMIM) is the Management Company (MC) and received a license from
SECP to operate as the Asset Management Company according to
NBFC Rules 2003. AMIM shall be responsible foe managing all affairs of
the fund and investment of investor’s money in various investment
avenues and declare any profit thereon to the investors.
The Management Company shall also announce prices of the fund on
daily basis from Monday to Friday after calculating the Net Asset Value
(NAV) of the fund.

2. Trustee

The Central Depository Company of Pakistan (CDC) is


the trustee of the funds and shall be responsible to take into is custody
all assets of the funds including bank accounts, all kind of securities
etc. The Trustee on the written instructions received from Management
Company if it complies with the trust Deed and NBFC Rules governing
the fund shall operate all bank accounts. The role of Trustee is to
safeguard the interest of the investor (Unit Holders).
The money received from investors shall be credited to the
bank account maintained by trustee title “Trustee-CDC Meezan Islamic
Fund”. Trustee shall also responsible to make payments for
redemption and profits to the investors.

3. Transfer Agent

60
Meezan Bank Ltd. (MBL) is the transfer Agent (TA) of
the funds. An agreement between the AMIM and MBL has already been
signed to carry out the functions of TA.
MBL has acquired Software called Unit Holder Accounting System
(UHAS), which is being used to maintain all records of investors (unit
holder). The TA shall be responsible for issuance / redemption/ transfer
/ splitting and replacement of units. TA shall also responsible for the
distribution of dividend warrants / bonus units if declared by the AMIM.

4. Distribution Company

Distribution Company means a company including a


Bank appointed by Management Company in consultation with the
Trustee.

Distribution Companies shall be responsible to collect


applications from investors for Account opening, investment,
redemption, transfer and for pledge.

All branches of Meezan Bank Ltd. (MBL) have been


designated as Authorized Branch i.e., Distribution Company, to collect
the application from investors. An agreement between CDC (Trustee)
and MBL has already has been has already been signed.

Non-Checking Collection Account With Authorized


Branch

Authorized branch shall maintain a collection account (non-checking) in


the name of CDC-Trustee-Meezan Islamic Fund. All investments
received from investors shall be deposited in this account and after
realization shall be transferred to main account.

Main Collection Account With Meezan Bank Ltd. PNSC


Branch

The main collection account in the of CDC-Trustee-Meezan Islamic


Fund has already been opened with Meezan Bank Ltd. PNSC Branch,
Account Number is 00811053301. Trustee shall issue standing
instructions to the branches to remit all the collected / realized
amount(s) against sale of unit(s) to the main Collection Account. In

61
case where the distribution Company (DC) is not a bank then the sales
agents / facilitators / brokerage houses shall directly send to the
account / nearest Distribution Company maintaining the account the
cheques.

Investors Account Opening


Investors shall fill in an account opening form (called
investors Account Opening Form) containing all details of investors
which shall be entered in the Transfer Agent (TA) System (A database
system being maintained to record unit holders data). This account
opening form is one-time requirement thus any customer who is
already unit holder / Investor shall not be required to fill in this form.

Attachments to Account Opening Form

For individual(s)

• NIC of Holder and joint holders if any (or any form of


identification acceptable to the Management Company)
• Zakat Declaration (in case of joint holders Zakat declaration of all
Joint holders should be obtained)

For Corporate / Statutory Bodies

• Memorandum and Articles of Association / trust Deed /Charter /


By Laws or Rules and Regulations.
• Certificate of Incorporation / Registration.
• Power of Attorney (or any other document authorizing officer to
operate the account)
• NIC’s of Authorized Signatures.
• Board of Directors Resolution Authorizing Investment.

Investment Form (Sale of Units)


Sale of unit Prices:
On daily basis, branches shall receive a notification from the
Management Company by email for the official prices of redemption of
units.

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Sale of unit prices shall be applicable on the day the funds are
received in the account of Trustee-CDC Meezan Islamic Fund.

Procedure for Handling Investment Form (sale of


units)

Below is the procedure to handle the investment form received from


an investor:
Branch shall

Step # 1

• Receive application form(s) duly filled and signed by the


Investor(s) with in the banking hours.
• Receive payment from applicant(s) for unit by cheques /
payment order /bank draft is made in favor of CDC trustee-
Meezan Islamic Fund and Crossed Account Payee only. Payment
in term of cash, outstation cheques should not be accepted.
Please note that if the cheques or bank draft is returned unpaid
the application shall be rejected.
• Issue a copy of (customer copy) Investment form the applicant
duly filled and signed by authorized person at Branch /
Distribution Company.

Attachments:

• Board Resolution authorizing investment from Corporate /


statutory bodies (this shall be required for every fresh
investment in Units)

Step # 2

• Verify the documents with the original request for attested


copies.
• Deposit the payment into the collection non-checking account of
CDC Trustee-Meezan Islamic Fund.
• Maintain an Investment register, enter the details of applications,
and assign a serial number (along with the branch code number
as assigned by TA to every branch).

Step # 3

• Mark a serial number over the application form.

63
• Prepare a Statement of Unrealized Cheques and fax or email the
same to MBL-Transfer Agent HO & AMIM before 3:30 pm.
From Monday to Friday
• Keep one copy of investment form for branch records and
• Send original forms along with the related documents to TA
Office.

Note:

Application for Investment shall be accepted Monday to Saturday with


in banking hours. Units issued on the day the funds are realized thus
any fund realized on Saturday will be taken as the sale of next
proceeding day.

Step # 4

• Monitor the realization of the payments deposited into the


Trustee’s Collection Account. After realization of payments,
branch shall prepare a statement of Realized Accounts with
commission and fax or email the same to MBL-Transfer Agent
HO & AMIM.

Based on application form and confirmation of receipt of funds from


Trustee the Transfer Agent shall process the application(s) and print
the physical or statement or Book Units. Transfer Agent shall dispatch
the original unit(s) / statement or Book Units directly to the address of
the principal account holder.

Redemption of Units:

Authorized Branch shall receive Redemption Form duly filled and


signed by the holder / joint holders as the case may be.

Redemption prices of units:

On daily basis branches shall receive a notification from the


management company for the official prices of sale and redemption of
units.

Procedure for Handling Redemption of Units:

Branch shall

Step # 1

64
• Receive redemption application form duly filled and signed by
the applicant(s) along with the physical unit(s) or original
statement of Book Units last issued to the customer.

• Issue a copy of Redemption Form to the applicant duly filled and


signed by the authorized person at the distribution company.

Step # 3

• Mark the Redemption number over the application form.

• Prepare a Statement of Redemption of Units and fax or email the


same to MBL-Transfer Agent HO & AMIM before 3:30 pm
from Monday to Friday.

• Keep one copy of Redemption Form for branch records and send

• Original forms along with the related documents to TA office.

Note:
Application for redemption shall be accepted Monday to Saturday with
in banking hours. Any redemption application form received on
Saturday shall be taken redemption for next proceeding day.

Based on application form, Transfer Agent shall verify the details of


application with its existing records i.e., signature(s), and units held by
customer etc and redeem the units in the TA system. Transfer Agent
shall send verified form and a computer print out to Trustee and
Management Company who shall make the payment directly to the
applicant, by means of cheques (crossed Account Payee only) or bank
transfer as the case may be in favor of main holder. Transfer Agent
shall also send Customer Statement to the unit holder informing him
about unit holder informing him about the change in this account
activity.

LOCKERS

Lockers operations shall not be permitted under power of attorney of a


customer. A customer wishing to allow another Person or agent may be
requested to open a new locker account under joint names and close
the existing account.

65
In offering the facility branches have to be selective and should
provide lockers to the customers whose identity and integrity is
verified, who should maintain account with the branch and have
potential for deposits and other banking business. It is reiterated that
honesty, creditability and good reputation of the customer is of utmost
importance in the selection of customer for lockers.

Lockers Issuance

 How to fill out a form


 Requirements
 Knowledge of rent, size of lockers etc
 How to prepare Locker Identification cards
 Locker Issuance
 Locker Operation
 Locker surrender
 How to make entry in registers
 How to maintain files
 Debit/credit entries on issuance and surrender

Meezan Amdan Certificate

66
The Riba-Free Meezan Amdan Certificate (MAC) is a long-
term deposit certificate with an exceptionally high monthly profit
designed especially for those individuals and corporations who are in
need of regular stream of monthly income. MAC is a monthly income
(mahana aamdani) certificate with a variety of free packaged benefits.

The Riba-Free Meezan Aamdan Certificate (MAC) works under the


principles of Mudarabah and is strictly in conformity with the rules of
Islamic Shariah.

On agreeing to become a MAC holder, the customer enters into a


relationship based on Mudarabah with Meezan Bank. Under this
relationship, the customer is an Investor (Rab ul Maal), and the Bank is
the Manager (Mudarib) of the funds deposited by the customers.

The Bank allocates the funds received from the customers to a deposit
pool. These funds from the pool are utilized to provide financing to
customers under Islamic modes that include, but are not restricted to,
Murabaha and Ijarah.
The bank calculates the profit of the deposit pool every month. The
Banks profit sharing ratio is 50% of Gross Income and Depositors profit
sharing ratio is 50% of Gross Income, calculated after deducting costs
and expenses directly incurred in deriving that Income.

The profit is distributed among the MAC holders based on


predetermined weight ages, announced at the beginning of the month,
based on their respective category/tiers. These weight ages are
available on the website or can be obtained upon request from the
branch.

Key Features of Meezan Amdan Certificate

• High and very competitive returns.

• Ensured Long-term security.

• Minimum investment amount: Rs. 100,000/-

• Special attraction for Widows and Senior citizens with minimum


investment of PKR 50,000/-

• Available tenures of 5½ years and 7 years.

• Profit payment on monthly basis.

67
• Pre-mature withdrawal options available.

• Free cheques book.

• Free ATM withdrawals on investment of Rs.500,000/- and above (


5 per month).

• Free Online Banking services at our branch network nationwide.

• Free Internet banking facility.

• 24/7 Call Center with complete Telebanking services.

• Dedicated Banking hours from 9am to 5pm (Saturdays 9am to


12:30pm)

How is profit calculated and distributed

• The bank calculates the profit of the deposit pool every month. Profit is
distributed at the Gross Income level. The Gross Income is calculated
after deducting costs and expenses directly incurred in deriving that
Income.

• Gross income of the deposit pool is shared between the Bank


(Mudarib) and customers (Rab ul Mal) on the basis of a pre-
determined profit sharing ratio announced at the beginning of
the period.

• The Banks profit sharing ratio is 50% of Gross Income and


Depositors profit sharing ratio is 50% of Gross Income.

• The profit is distributed among the account holders on the basis


of predetermined weight ages, announced at the beginning of
the month, based on their respective category/tiers.

• At the end of the month, the Bank may unilaterally reduce its
profit sharing ratio for the benefit of depositors.

• In case of a loss, as per the rules of Mudarabah, the deposit pool


shall bear the loss in the ratios of investment of depositors.

68
• Profits to be calculated on average monthly balance and
disbursed every month

• Profit rates and weight ages shall be derived and announced on a


monthly basis.

Meezan Providence Certificate

A long-term investment product specially designed to cater to the


needs of corporate and business concerns for purposes of investing
their Provident, Pension and Gratuity Funds.

As any prudent investor, your main concerns would be total security


along with the best returns possible, especial A long-term investment
product specially designed to cater to the needs of corporate and
business concerns for purposes of investing their Provident, Pension
and Gratuity Funds.

As any prudent investor, your main concerns would be total security


along with the best returns possible, especially as these funds are a
trust from your 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, a long-term entity
rating of A+, and a short-term entity rating of A1.

Furthermore, our sterling track record shows consistently beneficial


and highly competitive returns for our 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.

y as these funds are a trust from your employees and one that bears
an important responsibility.

69
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, a
long-term entity rating of A+, and a short-term entity rating of A1.

Furthermore, our sterling track record shows consistently beneficial


and highly competitive returns for our 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.

Riba-Free Meezan Providence Certificate (MPC) works under the


principles of Mudarabah and is strictly in conformity with the rules of
Islamic Shariah.
On agreeing to become a MPC holder, the customer enters into a
relationship based on Mudarabah with Meezan Bank. Under this
relationship, the Customer is an Investor (Rab ul Mal), and the Bank is
the Manager (Mudarib) of the funds deposited by the customers.
The bank allocates the funds received from the customers to a deposit
pool. These funds from the pool are utilized to provide financing to
customers under Islamic modes that include, but are not restricted to,
Murabaha and Ijarah
The bank calculates the profit of the deposit pool every month. The
Banks profit sharing ratio is 50% of Gross Income and Depositors profit
sharing ratio is 50% of Gross Income, calculated after deducting costs
and expenses directly incurred in deriving that Income.

Key Features of Meezan Providence

• A 100% Halal investment in strict compliance with Shariah.

• High Returns.

• Long-term security ensured.

• Minimum investment amount: PKR 1,000,000

• Available tenures of 2, 3, 5 and 7 years.

• Pre-mature withdrawal options available.

70
Eligibility Criteria

• To have a registered or unregistered Employee


Provident/Gratuity/Pension Fund.

• Have operations based in Pakistan.

How is profit calculated and distributed

• The bank calculates the profit of the deposit pool every month.
Profit is distributed at the Gross Income level. The Gross Income
is calculated after deducting costs and expenses directly
incurred in deriving that Income.

• Gross income of the deposit pool is shared between the Bank


(Mudarib) and customers (Rab ul Mal) on the basis of a pre-
determined profit sharing ratio announced at the beginning of
the period.

• The Banks profit sharing ratio is 50% of Gross Income and


Depositors profit sharing ratio is 50% of Gross Income.

• The profit is distributed among the account holders based on


predetermined weight ages, announced at the beginning of the
month, based on their respective category/tiers.

• At the end of the month, the Bank may unilaterally reduce its
profit sharing ratio for the benefit of depositors.

• In case of a loss, as per the rules of Mudarabah, the deposit pool


shall bear the loss in the ratios of investment of depositors.

• Profits to be calculated on average monthly balance and


disbursed every month

• Profit rates and weightages shall be derived and announced on a


monthly basis

Monthly Mudarabah Certificate

71
RibaFree Monthly Mudarabah Certificates is a flexible investment
product, which has been designed to give you a monthly return, which
is Halal. The minimum investment required is only Rs. 100,000 and you
receive profit for each complete month of investment with the Bank.

Riba-Free Monthly Mudarabah Certificate (MMC) works under the


principles of Mudarabah and is strictly in conformity with the rules of
Islamic Shariah.
On agreeing to become a MMC holder, the customer enters into a
relationship based on Mudarabah with Meezan Bank. Under this
relationship, the Customer is an Investor (Rab ul Mal), and the Bank is
the Manager (Mudarib) of the funds deposited by the customers.
The bank allocates the funds received from the customers to a deposit
pool. These funds from the pool are utilized to provide financing to
customers under Islamic modes that include, but are not restricted to,
Murabaha and Ijarah.

The bank calculates the profit of the deposit pool every month. Profit is
distributed at the Gross Income level. The Gross Income is calculated
after deducting costs and expenses directly incurred in deriving that
Income.
Gross income of the deposit pool is shared between the Bank (Mudarib)
and customers (Rab ul Mal) on the basis of a pre-determined profit
sharing ratio announced at the beginning of the period.

The Banks profit sharing ratio is 50% of Gross Income and Depositors
profit sharing ratio is 50% of Gross Income.
The profit is distributed among the account holders on the basis of
predetermined weightages, announced at the beginning of the month,
based on their respective category/tiers.

72
The profit rate, so calculated, is applied to all investments, which
mature between the period starting from the 1st day of each month to
the last day of the month.

At the end of the month, the Bank may unilaterally reduce its profit
sharing ratio for the benefit of depositors.
In case of a loss, as per the rules of Mudarabah, the deposit pool shall
bear the loss in the ratios of investment of depositors.

The weightages used for profit calculation of MMC are in the following
tiers

• Rs. 100K up to Rs. 4.99 Mn

• Rs. 5.00 Mn up to Rs. 9.99 Mn

• Rs. 10 Mn up to Rs. 49.99 Mn

• Rs. 50 Mn up to Rs. 99.99 Mn

• Rs. 100 Mn up to Rs. 499.99 Mn

• Rs. 500 Mn & above

Additional benefits

• A 100% Halal investment in strict compliance with Shariah

• Monthly profit payment to your current or saving account with


us

• Pre-mature withdrawal options available.

• Bank balance certificates

• Free Online Banking services at our branch network nationwide

• Dedicated Banking hours from 9am to 5pm (Saturdays 9am to


12:30pm)

• 24/7 Call Center with complete Telebanking services

• Personal financial consultancy services

73
Profit calculation

• The bank calculates the profit of the deposit pool every month.
Profit is distributed at the Gross Income level. The Gross Income
is calculated after deducting costs and expenses directly
incurred in deriving that Income.

• Gross income of the deposit pool is shared between the Bank


(Mudarib) and customers (Rab ul Mal) based on a pre-determined
profit sharing ratio announced at the beginning of the period.

• The Banks profit sharing ratio is 50% of Gross Income and


Depositors profit sharing ratio is 50% of Gross Income.

• The profit is distributed among the account holders on the basis


of predetermined weightages, announced at the beginning of the
month, based on their respective category/tiers.

• At the end of the month, the Bank may unilaterally reduce its
profit sharing ratio for the benefit of depositors.

• In case of a loss, as per the rules of Mudarabah, the deposit pool


shall bear the loss in the ratios of investment of depositors.

• Profits to be calculated on average monthly balance and


disbursed every month

• Profit rates and weightages shall be derived and announced on a


monthly basis

Monthly Dollar Mudarabah Certificate

74
The Riba-Free Dollar Mudarabah Certificate (DMC) works under the
principles of Mudarabah and is strictly in conformity with the rules of
Islamic Shariah
On agreeing to become a DMC holder, the customer enters into a
relationship based on Mudarabah with Meezan Bank. Under this
relationship, the customer is an Investor (Rab ul Maal), and the Bank is
the Manager (Mudarib) of the funds deposited by the customers
.
The Bank allocates the funds received from the customers to a deposit
pool. These funds from the pool are utilized to provide financing to
customers under Islamic modes that include, but are not restricted to,
Murabaha and Ijarah.
The bank calculates the profit of the deposit pool every month. The
Banks profit sharing ratio is 50% of Gross Income and Depositors profit
sharing ratio is 50% of Gross Income, calculated after deducting costs
and expenses directly incurred in deriving that Income.

The profit is distributed among the DMC holders on the basis of


predetermined weightages, announced at the beginning of the month,
based on their respective category/tiers. These weightages are also
available on the website or can be obtained upon request.

The Bank at time of profit declaration, at its sole discretion may give
additional profit to the customers from its own profit share.

In case of a loss, as per the rules of Mudarabah, the deposit pool shall
bear the loss on a pro rata basis.

75
Key Features of DMC

• High and very competitive returns


• Six monthly profit payment to your current or saving account
with us
• Long-term security ensured. Minimum investment amount: USD
10,000/
• Available tenures of 3 months, 6 months, 1 year, and 3 years
• Pre-mature withdrawal options available
• Bank balance certificates
• 24/7 Call Center with complete Telebanking services
• Dedicated Banking hours from 9am to 5pm (Saturdays 9am to
12:30pm)
• Personal financial consultancy services.

Profit calculation

• The bank calculates the profit of the deposit pool every month.
Profit is distributed at the Gross Income level. The Gross Income
is calculated after deducting costs and expenses directly
incurred in deriving that Income.

• Gross income of the deposit pool is shared between the Bank


(Mudarib) and customers (Rab ul Mal) on the basis of a pre-
determined profit sharing ratio announced at the beginning of
the period.

• The Banks profit sharing ratio is 50% of Gross Income and


Depositors profit sharing ratio is 50% of Gross Income.

• The profit is distributed among the account holders on the basis


of predetermined weightages, announced at the beginning of the
month, based on their respective category/tiers.

• At the end of the month, the Bank may unilaterally reduce its
profit sharing ratio for the benefit of depositors.

• In case of a loss, as per the rules of Mudarabah, the deposit pool


shall bear the loss in the ratios of investment of depositors.

• Profits to be calculated on average monthly balance and


disbursed every month

76
• Profit rates and weightages shall be derived and announced on a
monthly basis

• Riba Free Certificate of Islamic Investment


(COII)
The Riba Free is a Shariah compatible Islamic Investment Certificate.
The minimum investment is Rs. 50,000, with tenures of 3 months, 6
months, 1 year, 2 years, 3 years and 5 years. Profit on investment may
be earned 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.

 Minimum Investment Rs. 200,000

Riba-Free Certificate of Islamic Investment (COII) works under the


principles of Mudarabah and is strictly in conformity with the rules of
Islamic Shariah.

On agreeing to become a COII holder, the customer enters into a


relationship, based on Mudarabah, with Meezan Bank. Under this
relationship, the Customer is an Investor (Rab ul Mal), and the Bank is
the Manager (Mudarib) of the funds deposited by the customers.

77
The bank allocates the funds received from the customers to a deposit
pool. These funds are utilized to provide financing to customers under
Islamic modes that include, but are not restricted to, Murabaha and
Ijarah.

The bank calculates the profit of the deposit pool every month. The
Banks profit sharing ratio is 50% of Gross Income and Depositors profit
sharing ratio is 50% of Gross Income, calculated after deducting costs
and expenses directly incurred in deriving that Income.
It is possible to withdraw your investment any time during the course
of your investment. However, profit shall be paid only after completion
of one month of investment.

All banking transactions at Meezan Bank Limited are in strict


adherence to the Islamic Shariah. Meezan Bank also has an
independent, external Shariah Board comprising of internationally
renowned Islamic banking scholars serving on the boards of many
Islamic banks operating in different countries, who meet on a regular
basis to review the overall performance of the Bank.

Key Features of COII

• High and very competitive returns

• Long-term security ensured

• Minimum investment amount: Rs. 50,000/-

• Available tenures of 3 months, 6 months, 1 year, 2 years, 3


years and 5 years

• A variety of profit frequencies: monthly, quarterly, and at


maturity

• Pre-mature withdrawal options available

• Free Online Banking services at our branch network nationwide

• 24/7 Call Center with complete Telebanking services

• Dedicated Banking hours from 9am to 5pm (Saturdays 9am to


12:30pm)

78
• The bank calculates the profit of the deposit pool every month.
Profit is distributed at the Gross Income level. The Gross Income
is calculated after deducting costs and expenses directly
incurred in deriving that Income.

• Gross income of the deposit pool is shared between the Bank


(Mudarib) and customers (Rab ul Mal) on the basis of a pre-
determined profit sharing ratio announced at the beginning of
the period.

• The Banks profit sharing ratio is 50% of Gross Income and


Depositors profit sharing ratio is 50% of Gross Income.

• The profit is distributed among the account holders on the basis


of predetermined weightages, announced at the beginning of
the month, based on their respective category/tiers.

• At the end of the month, the Bank may unilaterally reduce its
profit sharing ratio for the benefit of depositors.

• In case of a loss, as per the rules of Mudarabah, the deposit pool


shall bear the loss in the ratios of investment of depositors.

• Profits to be calculated on average monthly balance and


disbursed every month

• Profit rates and weightages shall be derived and announced on a


monthly basis

79
Internet Banking

The pinnacle of any Alternate Distribution strategy is Internet Banking,


the ability to bank “Anytime – Anywhere”.

Using any computer with Internet connectivity, the following facilities


are available

• Balance inquiry
• Statement viewing & download (in PDF or MS Excel format)
• Cheques status
• Cheques blocking
• Pay order request
• Funds transfers between own accounts at Meezan Bank
• Cheques book request
• Change of address request
• Complaint logging and follow-ups.

80
WORK DONE BY ME
I joined the Meezan Bank Limited Allama Iqbal Town Branch
Lahore, and reported the manager of the bank. He said Welcome
words and said me to report second officer. Then, I went to Miss
Tayyaba she is very nice lady. She offered me a cup of tea and in
the mean time she gave me a brief introduction about the various
departments of the bank. After this in her giddiness, I met the
entire staff member they welcomed me in their bank.

I this report, my endeavor have been to stipulate my experiences


and observations, during my internship in MEEZAN BANK LIMITED
Allama Iqbal Town Branch Lahore, Which would always be
memorable for me.

INTER BRANCH ACCOUNTS

Like other successful commercial banks, MBL has a network of


branches all over the country. These branches in different cities
are interlinked with each other through their correspondent
accounts in other branches.

In case, there are more than one branch of a bank in the city the
main branch deals with other city branches through their
correspondent accounts. Similarly, in one city, all branches of a
bank have their corresponding accounts with each other.
So, all payments from one branch to another branch (in the same
city or another) are made by debiting and crediting these inter-
branch accounts.

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INTER BANK ACCOUNT

Like inter-branch accounts of a bank, different banks have


correspondent accounts with each other. Main branches of banks
in a city maintain these inter-bank accounts .So; money is
transferred from one branch to another bank’s branch through
these inter-banks and inter-branch accounts.

CUSTOMER SERVICES

I start my internship in Customer Services Department. I spent


two weeks of my internship in that department Mr. Mubbashir in
charge of the department Welcomed me in his department.
I do work under the supervision of Miss Tayabba. All other
department members are also proving a helping hand for me & I
learned a lot with in a short duration of time.

Account opening and closing is the function of customer services


department. The bank’s customers includes individuals (single or
joint), firm (partnership/proprietorship), Autonomous
corporations, Limited companies, Charitable Institutions,
associations, Educational Institutions or local bodies. MBL
accounts

 Current account
 Saving Account
 Foreign Currency Account

Brief Explanation of these accounts is as follows

CURRENT ACCOUNT

Current account is used to meet the daily transactions. The


money kept in current account is in the form of CARZE HASNA
gives the advantage for paying debts by the convenient and safe

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means of sending cheques through the post thus avoiding the
trouble and loss.

SAVING ACCOUNT

Mini deposit:::::::::::::::::::::::::::::::::::::Rs.10,000/- only

The deposits of the customers together with the bank’s


contribution are invested in a pool that consists of Ijarah and
Murabaha financing. The profit earn on this pool is calculated
every month, and if you maintain a minimum average monthly
balance of Rs.10, 000/- you shall be eligible to receive profits that
will be disbursed to you every month. But if u’r balance is less
then 10000 then u get no profit or no penalty is charges to u.
there is no fixed profit b/c every month new rate declared.

Profit Calculation
Rs. 10,000 up to Rs. 9,999,999
Rs. 10,000,000 up to Rs. 49,999,999
Rs. 50,000,000 up to Rs. 99,999,999
Rs. 100,000,000 and above

FOREIGN CURRENCY ACCOUNT


Mini deposit:::::::::::::::::::::$100 under Mudarabah arrangement.

The return earns on the Mudarabah pool is calculated every


month and profit ratio is declared 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 will be disbursed to
you every month.

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BASIC OF ACCOUNT OPENING

The next week of my internship was to open new accounts. The


opening of an account is the establishment of banker customer
relationship.

Following are the steps involved in the opening of new account.

INTRODUCTION AND PRELIMINARY


INVESTIGATION

GENERAL INFORMATION ABOUT ACCOUNT OPENING

Account opening is the basic and first relationship, which is established


between Bank and the customer. In account opening extreme care has
to be exercised in case of completion of account opening
documentation.
Whenever a client comes in the bank in order to open an account
the first information that is given to him/her about the types of
accounts, which can be opened, so far this purpose the client is
given detailed information about the accounts and their
respective profit rates.

TYPE OF ACCOUNTS OPENED

INDIVIDUAL ACCOUNTS

These accounts can be opened in any one of the


schemes

• CURRENT
• PLS/SAVING
• TERM DEPOSIT
• RIBA FREE

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At the death of an individual account holder the account is flagged as
“deceased account”. The credit balance is not paid to anyone unless
the bank receives the court order.

IMPORTANT DOCUMENTS REQUIRED

MINOR ACCOUNT
• Bay form and copy of passport minor
• National Identity card of Guardian
• Signature requirement of guardian
• Title as follows “ABC (M) DEF (G)

JOINT ACCOUNTS
As evident from the name these accounts can be jointly opened
by any number of persons. The minimum number of persons
required to open a joint account is two but there is no maximum
limit.
• National Identity card of all Applicants.
• Signature of all Applicants.
• Zakat Affidavit of all Applicants (In case of zakat
Examption).
• Operation of account clearly mentioned.
• The options available to operate the account are:
o Jointly
o Either or Survivor
o Other(s)(Please specify)

INDIVIDUAL ACCOUNT

• Copy of national identity card


• Complete account opening form
• Letter of introduction if required
• Visiting Card (if the person is employed)

CLUB /SOCIETY/ASSOCIATION
Certified copy of resolution

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Certified copy of rules

Copies of National Identity cards of all directors/passports


Completed account opening form
Specimen Signature Card

TRUSTS ACCOUNTS
Completed account opening form
Specimen Signature Card
Certified copy of trust deed
Copy of rules/by laws
Copies of National Identity cards of all trustees

CORPORATE ACCOUNTS

1.ACCOUNTS OF SOLE PROPRIETOR

These accounts can also be opened in any one of the schemes


mentioned before.

IMPORTANT DOCUMENTS REQUIRED

• Declaration Letter
• Copy of NIC/Passport of the proprietor
• National Tax Certificate
• Declaration of Sole Proprietor on company letterhead
• Business registration Certificate
• Specimen Signature Cards and completed account op

2.ACCOUNT OF PARTNARSHIP

86
These accounts can also be opened in any one of the schemes.

IMPORTANT DOCUMENTS REQUIRED

• Partnership Deed, certified copy.


• Photocopies of NIC of all partners.
• Partnership Mandate(Prescribed Format).

3.ACCOUNT OF LIMITED COMPANIES

A lot of documentation is required in case of these accounts.

IMPORTANT DOCUMENTS REQUIRED

• List of Directors of company.


• NIC of all Directors.
• Copy of certificate of Incorporation.
• Memorandum of Association.
• Article of Association.
• Copy of Board Resolution.
• Latest Copy of Form-29
• Stamp of Company, which is to be affixed on the account
opening form.
Certificate of Commencement of Business

ACCOUNTS OF LITERATE
Features

• These accounts can be opened individually or jointly.

87
• For men, the right hand thumb impression and for women,
the left hand thumb impression is taken on account opening
form.
• The customer is given advice to come to bank himself in
order to withdraw any cash or deposit the cheque.

IMPORTANT DOCUMENTS REQUIRED

• Photocopy of NIC of Account Holder.


• Two-three passport size photographs.

ACCOUNTS OF MINORS
Features

• The name of guardian is written in Title of Account.


• The account can be in any one of the schemes.
• Signatures of the guardian are always used to perform any
transaction.

IMPORTANT DOCUMENTS REQUIRED


• Birth Certificate of minor.
• Photocopy of NIC of guardian.

THINGS TO BE CONSIDERED BEFORE OPENING


AN ACCOUNT

• Verification of the customers’ credentials.


• The suitability of the prospective customer.
• The proposed relationship should be violate:
o Any of the local laws.
o State Bank’s rules and regulations.

88
o The Bank’s own policy.
• The prospective profitability of the relationship.

IMPORTANT POLICIES REGARDING ACCOUNT


OPENING

• Some of the important policies of bank that has to be


considered before opening an account are as follows:
• Identification and screening of customer.
• Completion of all relevant columns of account opening form.
• Ascertaining the genuineness of credentials furnished by
customer.
• Proper completion of documentation.
• Verify the genuineness of introduction.
• Account should be opened after seeing the originals
documents like

o NIC
o Passport
o Partnership Deed, etc.

FUNCTIONS PERFORMED IN CUSTOMER


SERVICES/

ACCOUNT OPENING DEPARTMENT

• ACCOUNT OPENING
• ACCOUNT CLOSING
• GENERAL CLIENT DEALING
• LOCKER OPENING

INFORMATION TO BE FILLED IN ACCOUNT


OPENING

FORM

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• Type of account
• Title of account
• Personal Information of Applicant
I. Name
II. Father’ Name
III. Mother’s Maiden Nam
IV. Occupation

V. Employer
VI. Job Title
VII. Address of employer
VIII. Nationality
IX. Country of Residence
X. NIC
XI. N.T.N. number
XII. Passport number
XIII. Date & Place of Issue
XIV. Residential Address
XV. Correspondence Address.
XVI. Hold Mail Instruction (Either Yes or No)
XVII. E-Mail Address
XVIII. Fax No.
XIX. Telephone No.
a. Next of Kin
b. Corporate Account
c. Type of Entity/Organization
d. Nature of Account
e. Currency of Account
f. Zakat Deduction
g. Signature Requirement
h. Details of other Bank Account
i. Introduced By (most important part in account
opening process without which no account can be
opened.)

INTRODUCER CAN BE

 Anyone from the staff members.


 A well reputed customer of the Bank.
 Another well reputed Bank.

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 Customer employer, if he/she is of good repute.

PROCEDURES FOR ACCOUNT OPENING


First of all, after inquiring from the customer what type of
account he/she wants to open, the account opening form is got
filled from the customer and signed it. Along with the account
opening form, the customer is also signed two Specimen
Signatures Cards.

After fulfilling all the formalities of account opening, the computer


generated account number is given to the customer that is of
special series depending on the type of account.

DIFFERENT SERIES OF ACCOUNT NUMBERS


Sr. No. ACCOUNT TYPE SERIES
1 SAVING/PLS 0085
2 CURRENT 020
3 MARK UP 0666

REQUISITION SLIP
A requisition slip is given to the customer to sign it so that the
customer can get chequebook.
Chequebook is issued after one-two days of receiving the
requisition slip.

LETTER OF THANKS

91
After opening the account “A Letter Of Thanks” is send to the
customer in order to thank the customer for opening an account
in the Bank. This letter tells all the information regarding his/her
accounts, which are kept very confidential.

ACCOUNT OPENING REGISTER


After an account is opened, an entry is made in the account
opening register, which has the following columns:

• Date
• Account Number
• Name & Address
• Telephone Number
• Initial Deposit

Customer Services /Relation Officer enters the new account


opened in computer and the Specimen signature Cards are also
scanned so that whenever a cheque of the respective account
comes for encashment, the signatures can be verified.

CAR IJARAH PAKISTAN’S FIRST


ISLAMIC
CAR FINANCING SCHEME
After working two weeks in Customer Service department, I was
moved on to the Car ijarah.

"CAR IJARAH"

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Car Ijarah is Pakistan's first "Interest Free" car-financing scheme
based on Islamic financing mode of Ijarah or Islamic leasing. This
product is ideal for interest adverse individuals, looking for a car-
financing scheme that provides the convenience of a well-
designed product while avoiding an interest based transaction.

Car Ijarah is simply a rental agreement under which the car will
be given to the customer on rent for a period, agreed at the time
of the contract. Meezan Bank purchases the car and rents it out
to the customer for a period of 3, 4 or 5 years.

WHAT MAKE CAR IJARAH UNIQUE


• First Islamic Car Financing Scheme (Approved by Meezan
Bank’s Shariah Board)
• Free from Interest/Riba
• It is not a Hire-Purchase agreement

KEY FEATURES OF CAR IJARAH


• No applying fee
• Ease of acquiring any new locally assembled car
• No upfront Insurance Payment
• No advance Rental
• Available in tenures of 3, 4 and 5 years
• As little as 20% security deposit

RENTAL CALCULATIONS

To calculate the monthly rentals simply multiply the cost of the


car with the rental factors given in the table below;

Rental Calculation **

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Security Deposit 3 years 4 years 5 years
20% 0.028994 0.023837 0.020854
25% 0.027386 0.022544 0.019741
30% 0.025779 0.021252 0.018629
35% 0.024171 0.019960 0.017517
40% 0.022564 0.018667 0.016405
45% 0.020956 0.017375 0.015293
50% 0.019349 0.016083 0.014180
* No separate Insurance will be charged

Eligibility Criteria

You can enjoy the benefits of Car Ijarah if you:

 Are a salaried individual/ self-employed professional/businessman


 Have a net take home income exceeding three times your
monthly
installment
 Have 3 years working/professional /business experience
 Are working with your present employer for at least 6 months (for
salaried
individuals)

DOCUMENTATION REQUIRED FOR CAR IJARAH

It is very easy to apply for Car Ijarah, just bring the following
documents.

INDIVIDUALS/SELFEMPLOYED/PROFESSIONALS/

94
BUSINESSMEN
 Copy of NIC
 Two recent passport sized photo
 Recent Utility Bill (Electric/Gas/Water) received at the
residential address graphs
 Last Six Month Bank Statement
 Last Six Month Bank Statement of Business (for
Businessmen) Certified/Original copy of Recent Pay slip (for
Salaried Individuals)
 Copy of Rent Agreement (if applicable)

PROCEDURE
Simple! All you need to do is fill out a customer application form,
attach the required documents mentioned in the form and get
your financing approved in a 1-2 working days. To experience the
comfort of personalized services just visit your nearest Meezan
Bank Branch.

OPERATIONS DEPARTMENT
I spent two week of my internship in operations department &
do work under the supervision of Mr.Ashraf. Mr. Waqar Azeem,
Department In charge is very nice & sophisticated person.

95
FUNCTIONS PERFOMED:

A. CLEARING
B. REMITTANCE

CLEARING

• Inward clearing
• Outward clearing

INWARD CLEARING

In the morning, the bank receives its own cheques, which have
been presented by the customers in some other bank to be
deposited in their account. NIFT provides the facility of bringing
cheques for inward and also takes the cheques of outward
clearing to other banks. The cheques received in inward clearing
are the cheques drawn on bank and the bank has to pay for
them. For this purpose the bank makes clearing in computer by
checking the balances of the respective customer, if their
balances are up to the mark then that cheque is cleared and the
respective customer account is debited with the respective
amount. If the balances are short then that cheque is bounced
back to the related bank.

Reasons for returning a cheque:

• Not all required stamps of Clearing, Crossing and


Endorsement are present on cheques.

96
• Cheque is post date.
• Refer to drawer
• Effects not cleared, may be presented again
• Amounts in words and figures differ.

If any of these reasons exists then that cheque is returned


through NIFT and deducts Rs. 300 from customer’ account as
cheque returned charges.

For this purpose, an entry is passed on multi entry voucher like:

Customer’s Account Dr.


State Bank of Pakistan Cr.
Cheque returned charges Dr.
Other commissions Cr.

Then the report of returning any cheque is sent through fax to


the head office Karachi. After this put the entry in Cheque return
register showing the following columns:

• Date
• Title of account
• Account number
• Cheque number
• Bank and Branch name
• Reason to return

OUTWARD CLEARING
All the cheques of other banks, which are deposited, to MBL are
presented in outward clearing. This is said as inward clearing
because they are presented on the very next day after depositing
a cheque.
In outward clearing, the entry is made like:

Customer Account Cr.


State Bank of Pakistan Dr.

97
This entry is made when we come to know about the clearing of
all cheques, which are sent to other banks.

SERVICES PROVIDED

 TRANSFER AF AMOUNT
 LOOSE CHEQUE
 TELLING ACCOUNT BALANCES
 ISSUING CHEQUES BOOKS

TRANSFER OF AMOUNT

If a customer holds two accounts in the bank and/she wants to


transfer money from one account to other account, customer
writes a cheque and fills deposit slip in which he/she writes
account number to which amount is to be transferred. After
making transfer entry in the computer, affix transfer stamp in the
middle of the cheque, crossing on the upper left and bank’s
endorsement stamp on the backside of the cheque.

TELLING ACCOUNT BALANCES

Whenever clearing officer receives phone call from the customer


inquiring about his/her account balance after confirming
the name, address and other information he tells the
balance through computer.

ISSUING CHEQUE BOOKS


It is also the duty of department to issue a chequebook when an
officer receives request from the customer.

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B. REMITTANCE
 Pay order
 Demand drafts
 Inward collection
 Outward collection

PAY ORDER

Pay order is an order to pay money but this payment is to be


made within city. In other words it can be said that the payee and
the payer should be in one city.

In pay order the payment can be made in

A) Cash
B) Clearing
C) Transfer

PROCEDURE

In case of pay order first of all the customer has to fill a pay
order application form in favoring section: name, account
number, amount, beneficiary name, address, etc.
The data is entered in already set format of pay order in
computer and pay order print out is taken. An authorized person
and manager operations are signed pay order.
The original copy of the pay order is given to the customer and
carbon copy is kept with bank for office record.

DEMAND DRAFT

99
An order to pay money to the payee who is residing outside the
city. DD can be for a customer who may or may not have an
account in the bank but the other person’s account must be
maintained with the bank for which the payer has demanded the
DD.

INWARD COLLECTION

When the bank receives cheques of any other bank from its any
branch situated in the some other city, and then those have been
dealt as inward collection.

PROCEDURE
After receiving the cheque, an entry is made in inward collection
register and then all stamps are affixed on the cheque (clearing,
Endorsement, IC # stamp) and make outward clearing voucher,
which shows the following entry:

Remittance payable Cr.

On the next evening after the delivery of clearing cheques, make


reversal entry like

Remittance Payable Dr.


Respective Branch Cr.

Also, make a fax message to inform the respective branch that we


have credited their nostro account.

100
RATIO ANALYSIS

101
Ration analysis is very important measure to judge the
performance of an organization and to compare that performance
ratio with previous year ratios and future of the position of the
organization.

RATIOS

1. PROFITABILITY RATIOS
 Net profit ratio
 Return on assets
 Return on shareholder fund
 Return on equity capital
 Earning per share

2. LIQUIDITY RATIOS
 Current ratio
 Loan to deposit ratio
 Loan to asset ratio

3. LONG TERM SOLVENCY AND CAPITAL RATIOS


 Equity capital to asset ratio
 Proprietary ratio

Debt equity ratio

LATEST ACHIEVMENTS
102
The Governor State Bank of Pakistan, Dr. Ishrat Husain presented his
vision about the evolution of Islamic Banking in Pakistan.

State Bank Governor outlines the Evolution of Islamic Banking.

Meezan Bank selected as key Lead Manager for SSGC Privatization.

SSGC shares subscription at all Meezan Bank’s branches from


Feb 9-11, 2004

PKR.910 million Islamic Finance Facility arranged by Meezan Bank

Meezan Bank becomes Lead Arranger for PKR.910 million Islamic


Finance Facility, largest ever provided by an Islamic Bank.

Meezan Bank airs Islamic Banking talk shows on ARY Digital.

Meezan Bank brings Islamic Banking to your TV.

Meezan Bank 2nd Annual Corporate Conference concludes with


exciting results.

The 2nd Annual Corporate Conference reviews the successes of


2003, and highlights the grand plans for 2004.

Meezan Bank’s new Jodia Bazaar branch brings Islamic Banking to the
heart of this vibrant business area.

Meezan Bank’s new Jodia Bazaar branch, its fifth in Karachi, now
open.

Meezan Bank to open its doors to Jodia Bazaar.

Jodia Bazaar branch, Meezan Bank’s fifth branch in Karachi, to be


functional by mid December 2003.

The Wait is Over! EasyHome - Islamic Housing Finance has arrived!

Meezan Bank is pleased to announce EasyHome – Islamic


Housing Finance. The totally halal, comprehensive, and hassle-
free way to the home of your dreams.

103
Meezan Islamic Fund Launched – Introduction of a new Investment
Solution

Al Meezan Investment Management Limited introduces Meezan


Islamic Fund - A Shariah compliant solution for stock market
investors.

Meezan Bank’s new Multan branch in full swing.

Meezan Bank now open at Abdali Road, Multan

New premises in Islamabad takes branch banking to the next level

Meezan Bank relocates to a new premises in Islamabad.

EASY HOME: comprehensive Islamic Home Financing to address all


customer needs.

Meezan Bank's EASY HOME to open it's doors soon!

Islamic Housing Finance chosen to facilitate the Karachi DHA Creek


City Project.

Meezan Bank chosen as the preferred provider of Islamic Home


Financing for the Karachi DHA Creek City Project.

Meezan Bank to expand its operations to Multan.

Meezan Bank announces the upcoming launch of its new branch


in Multan.

Meezan Bank launches its Islamic Banking Financial Advisory Program

Meezan Bank launches another first in Pakistan, with an Islamic


Banking Advisory Program for the Bank of Khyber

Meezan Bank now has two full-fledged branches in Faisalabad.

Meezan Bank opens its second branch in Faisalabad.

104
Meezan Bank Lahore branch inaugurated by Governor Punjab

Meezan Bank officially inaugurates its new branch premises in


Lahore.

Meezan Bank now in Gulshan-e-Iqbal, Karachi

Meezan Bank opens another branch in Karachi on University


Road, Gulshan-e-Iqbal.

Meezan Bank Car Ijarah Special Discount Offer

Meezan Bank Limited is pleased to announce a special Discount


Package on Car Ijarah - Pakistan’s First Islamic Car Financing
Scheme.

Meezan Bank Limited commenced operations in the textile city of


Faisalabad

Meezan Bank Limited commenced operations in the textile city of


Faisalabad by opening its branch on 1st October, 2002

General Pervez Musharraf formally inaugurates Meezan Bank’s


commercial operations.

President of the Islamic Republic of Pakistan General Pervez


Musharraf formally inaugurated Meezan Bank’s commercial
operations on September 17,2002.

Meezan Bank announces half yearly profit of Rs 92.3 million

Meezan Bank announces half yearly profit of Rs 92.3 million.

International Islamic Banking Conference

The International Conference on Islamic Banking and Finance


concludes with a pledge to work for Islamic Banking system in
Pakistan.

105
Meezan Bank acquires SG's Pakistan operations

Meezan Bank Limited - the first scheduled Islamic commercial


bank of Pakistan successfully acquires SG's Pakistan operations.

License for the first Islamic Commercial Bank

License for the first islamic commercial bank issued to Meezan


Bank

First Islamic bank to be functional in March

Dawn Jan 31,2002: Al Meezan Bank receives the licence to set up


the first Islamic commercial bank from State Bank.

106

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