Professional Documents
Culture Documents
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 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).
1
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 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.
2
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
Meezan Bank entity rating of A+ for long term and A-1 for
short-term.
3
AAA
Highest Credit quality .The risk factors are negligible, being only
slightly more than for risk –free Pakistan’s debt.
A+, A, A-
B+, B, B-
4
CCC
CC
Defaulted Obligations
SHORT TERM
A-1+
A-1
A-2
5
A-3
C
Capacity for timely payment of obligations is doubtful.
RATING WATCH
RATING OUTLOOKS
SUSPENTION
6
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-
7
-1949-
The first Constitution defined Islam as State Religion and all laws
to be according to the injunction of the Quran and Sunnah.
-1962-
-1973-
-1980-
8
-1985-
-1991-
9
-1997-
-1999-
-2001-
10
-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-
11
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-
- 2005 –
12
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.
-2006-
13
Vision
Mission
14
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.
15
Difference between Conventional and Islamic
banking
16
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.
17
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.
18
• 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
19
• 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
20
• 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
21
Shareholding Structure Rs. In %
million
Pakistan Kuwait Investment Company (Pvt.) 1,143 30
Limited
Shamil Bank of Bahrain E.C 979 26
Others 727 19
22
Management System:
23
24
25
Departments
Departments
26
• Clearing/Outstation Bills Department
• 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
Accounts Department
IT Department
27
• Clearing/Outstation Bills Department
Functions:
Opening of Accounts
Types of Accounts
28
Key features of the Riba-Free Current Account
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With a minimum of only $100 you can open a Dollar Saving Account.
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.
• 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
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.
31
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.
32
• 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:
33
Riba Free Karobari Munafa Account
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
35
Nature of Accounts
• Individual Accounts
• Joint Account
• Minor Accounts
• Partnership Accounts
• Staff Accounts
Documents Requirement:
36
Individual Account
• In case NIC don’t bear the picture of NIC holder, (OR) Copy of
Driving License (OR) A passport size photograph is needed.
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
38
• Specimen signature cards with signatures of authorized
signatures along with company stamp.
Partnership Account
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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.
Sole Proprietorship
Minor Account
• Signature of Guardian
• CNIC of Guardian
• Form “B”
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• Thumb impression of both thumbs (in presence of customer
service officer on Specimen Signature Card)
• CNIC copy
Trust Account
• Trust deed
Note
Status of this joint account of resident and non-resident is Non-
resident.
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:
• The customer will sign the AOF, in the presence CSO of the
branch.
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”
• 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.
• 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.
• 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.
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.
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:
1. Application Form
46
The client hands over the chequebooks and account
closing form to the officer.
5. Stamping
7. Filling
Benefits:-
Meezan Bank 24/7 ATM / Debit Card offers the facilities of:
• Balance Enquiry.
47
• 24 hours and 7 days Accessibility.
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.
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.
• 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.
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.
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.
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Special 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.
• 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.
Remittance department
53
This department performs the following functions;
DEMAND DRAFT
PAY ORDER
FDD
FTT
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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
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.
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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.
• No advance Rental
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• Rentals are Monthly is Arrears after delivery.
Eligibility Criteria
• Address verification.
• Complete documentation.
Following are the strengths of Car Ijarah of Meezan Bank Limited which
makes it different from other conventional banks:
• Completely Halal
• Availability of Takaful
• No hidden charges
• Competitive rates
• Competitive service
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%.
• 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.
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)
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.
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
3. Transfer Agent
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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
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.
For individual(s)
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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.
Step # 1
Attachments:
Step # 2
Step # 3
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• 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:
Step # 4
Redemption of Units:
Branch shall
Step # 1
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• 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.
Step # 3
• Keep one copy of Redemption Form for branch records and send
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.
LOCKERS
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
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 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.
67
• Pre-mature withdrawal options available.
• 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.
• At the end of the month, the Bank may unilaterally reduce its
profit sharing ratio for the benefit of depositors.
68
• Profits to be calculated on average monthly balance and
disbursed every month
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.
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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.
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.
• High Returns.
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Eligibility Criteria
• 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.
• At the end of the month, the Bank may unilaterally reduce its
profit sharing ratio for the benefit of depositors.
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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.
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.
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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
Additional benefits
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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.
• At the end of the month, the Bank may unilaterally reduce its
profit sharing ratio for the benefit of depositors.
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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 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.
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Key Features of DMC
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.
• At the end of the month, the Bank may unilaterally reduce its
profit sharing ratio for the benefit of depositors.
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• Profit rates and weightages shall be derived and announced on a
monthly basis
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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.
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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.
• At the end of the month, the Bank may unilaterally reduce its
profit sharing ratio for the benefit of depositors.
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Internet Banking
• 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.
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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.
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
CUSTOMER SERVICES
Current account
Saving Account
Foreign Currency Account
CURRENT ACCOUNT
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means of sending cheques through the post thus avoiding the
trouble and loss.
SAVING ACCOUNT
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
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BASIC OF ACCOUNT OPENING
INDIVIDUAL ACCOUNTS
• 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.
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
CLUB /SOCIETY/ASSOCIATION
Certified copy of resolution
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Certified copy of rules
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
• 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
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These accounts can also be opened in any one of the schemes.
ACCOUNTS OF LITERATE
Features
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.
ACCOUNTS OF MINORS
Features
88
o The Bank’s own policy.
• The prospective profitability of the relationship.
o NIC
o Passport
o Partnership Deed, etc.
• ACCOUNT OPENING
• ACCOUNT CLOSING
• GENERAL CLIENT DEALING
• LOCKER OPENING
FORM
89
• 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
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Customer employer, if he/she is of good repute.
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.
• Date
• Account Number
• Name & Address
• Telephone Number
• Initial Deposit
"CAR IJARAH"
92
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.
RENTAL CALCULATIONS
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
It is very easy to apply for Car Ijarah, just bring the following
documents.
INDIVIDUALS/SELFEMPLOYED/PROFESSIONALS/
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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.
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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.
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• Cheque is post date.
• Refer to drawer
• Effects not cleared, may be presented again
• Amounts in words and figures differ.
• 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:
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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
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B. REMITTANCE
Pay order
Demand drafts
Inward collection
Outward collection
PAY ORDER
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
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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:
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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
LATEST ACHIEVMENTS
102
The Governor State Bank of Pakistan, Dr. Ishrat Husain presented his
vision about the evolution of Islamic Banking in Pakistan.
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.
103
Meezan Islamic Fund Launched – Introduction of a new Investment
Solution
104
Meezan Bank Lahore branch inaugurated by Governor Punjab
105
Meezan Bank acquires SG's Pakistan operations
106