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

It started
operations as an investment bank in August of the same year. In January, 2002 in an
historic initiative, Meezan Bank was granted the nation's first full-fledged commercial
banking license dedicated to Islamic Banking, by the State Bank of Pakistan.

Our Vision

Establish Islamic banking as banking of first choice to facilitate the implementation of an

equitable economic system, providing a strong foundation for establishing a fair and just
society for mankind.

Our Mission

To be a premier Islamic bank, offering a one-stop shop for innovative value added
products and services to our customers within the bounds of Shariah, while optimizing the
stakeholders value through an organizational culture based on learning, fairness, respect
for individual enterprise and performance.

Introduction of Products

 Riba Free Meezan Providence

 Riba Free - Certificates of Islamic Investment

 Riba Free - Monthly Musharakah Certificate

 Riba Free - Dollar Saving Account

 Riba Free - Rupee Saving Account

 Riba Free - Current Account

 Car Ijarah - Islamic Car Financing

 Riba Free Meezan Providence:

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 Islamic Mode of Financing

 Musharakah
 Mudarabah
 Murabaha
 Salam
 Istisna
 Ijarah

Net Profit

Years 2005 2006 2007 2008

profit 20.15 17.80 16.27 8.27

Share Price in Stock Market

Years 2005 2006 2007 2008

Share Price 23.25 19.50 38.55 21.48

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

listed on all the stocks exchanges in Pakistan. The bank’s registered office and principal
office are situated the adoption of new technology and offering new products has made
MBL one of the best domestic bank of Pakistan.

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

MBL Rahim Yar Khan.

General banking department is concerned with daily operation of the branch. This
department is divided into four sections which are Cash section, Clearing section,

University of Karachi M.E.F After P.G.D 2

Remittance section and fixed deposit section. Cash section performs cash related function
like receipt of cash, payment of cash and collection of utility bills. Clearing section
performs the clearing of cheques for collection. Remittance section performs transferring
of funds from one branch to another or from one account to another.

Credit department issues short term and long-term loan. MBL offer two types of loans or
finances, fund based finances and non-fund based finances. Funds based finances include
running finance, demand finance, cash finance and staff finance. Non fund base finance
include letter of credit and guarantees like performance guarantees, mobilization
guarantees shipping guarantees, bid bonds and security deposit guarantees.

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University of Karachi M.E.F After P.G.D 4
 Meezan bank is a premier Islamic bank and publicly listed company first
incorporated on January 27, 1997. It started operations as an investment bank in
August of the same year. In January, 2002 in an historic initiative, Meezan Bank
was granted the nation's first full-fledged commercial banking license dedicated to
Islamic Banking, by the State Bank of Pakistan.

Meezan Bank stands today at a noteworthy point along the evolution of Islamic
Banking in Pakistan. The banking sector is showing a significant paradigm shift
away from traditional means of business and is catering to an increasingly astute
and demanding financial consumer who is also becoming keenly aware of Islamic
Banking. Meezan Bank bears the critical responsibility of leading the way forward
in establishing a stable and dynamic Islamic Banking system replete with dynamic
and cutting-edge products and services.

The Bank has made fundamental and significant progress forward, and in doing so
has established a strong and credible management team comprised of experienced
professionals, which have achieved a strong balance sheet with excellent
operating profitability, including a capital adequacy ratio that places the Bank at
the top of the industry, a long-term entity rating of A+, and a short-term entity
rating of A1+, the highest short-term rating.

The Bank's main shareholders are leading local and international financial
institutions, including Pak-Kuwait Investment Company, the only AAA rated
financial entity in the country, the Islamic Development Bank of Jeddah, and the
renowned Shamil Bank of Bahrain, that in addition to their strength and stability,
add significant value to the Bank through Board representation and applied
synergies.

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 The Bank has an internationally renowned, very high caliber and pro-active
Shariah Supervisory Board presided over by Justice (Retd.) Maulana Muhammad
Taqi Usmani, a renowned figure in the field of Shariah, particularly Islamic
Finance. He holds the position of Deputy Chairman at the Islamic Fiqh Academy,
Jeddah and in his long and illustrious career has also served as a Judge in the
Shariat Appellate Bench, Supreme Court of Pakistan. The Bank also has a resident
Shariah advisor, Dr. Imran Usmani, who strictly monitors the regular transactions
of the Bank. The board also includes Sheikh Essam M. Ishaq (Bahrain), and Dr.
Abdul Sattar Abu Ghuddah (Saudi Arabia).

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

system with absolutely no compromise on Shariah rulings. The bank has
developed an extraordinary research and development capability by combining
investment bankers, commercial bankers, Shariah scholars and legal experts to
develop innovative, viable, and competitive value propositions that not only meet
the requirements of today's complex financial world, but do so with the world-
class service excellence that our customers demand, all within the bounds of
Shariah.

Furthermore, the Bank has built a strong Information Technology and customer
knowledge-based focus that continues to use state of the art technology and
systems. The Bank's Corporate and Investment Banking business unit is geared
towards nurturing and developing a long-term relationship with clients by
understanding their unique financing requirements and providing Shariah
compliant financing solutions across the horizon of corporate banking and
structured finance. The Bank is also implementing robust and aggressive strategic
and tactical initiatives on the consumer banking side. The Bank has a rapidly
growing branch network across all major cities nation-wide. Providing our
customers accessibility and convenience is a prime target, within an atmosphere
and culture of dedicated service and recognition of their needs.

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 We believe in adding value to our customers' lives and businesses through
dynamic and competitive products and services that fulfill their needs while
conforming completely with the dictates of Shariah. At the same time, we
endeavor to deliver competitive risk adjusted returns to our stakeholders.

History of Islamic banking in Pakistan

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

a joint venture between Pakistan Kuwait Investment Company (PKIC), National
Investment (Trust) Limited, and Jardine Fleming Investment Management
International Limited (Jardine Fleming). AMIM has over the years benefited
immensely from domestic investment management expertise of PKIC and
National Investment (Trust) Limited and international expertise of Jardine
Fleming.

Jardine Fleming made a substantial contribution towards the development of

systems and procedures for AMIM during its six years of association with the
company. The key investment professionals of Jardine Fleming, Hong Kong who
served as Directors of AMIM for these six years, contributed to the development
of strategic plans and investment policies of the company.

The Holy Quran

"We must work our destiny in our own way and present to the works an economic
system based on true Islamic concept of equality of manhood and social justice
"Quaid's concept of Islamic Banking [Opening Ceremony of The State Bank of
Pakistan on July 1, 1948]

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 Meezan bank is provide services in the market to their customers and shareholders
its nature is reflected by its admission statements.

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 Our Vision

Establish Islamic banking as banking of first choice to facilitate

the implementation of an equitable economic system, providing a strong
foundation for establishing a fair and just society for mankind.

Our Mission

To be a premier Islamic bank, offering a one-stop shop for

innovative value added products and services to our customers within the bounds
of Shariah, while optimizing the stakeholders value through an organizational
culture based on learning, fairness, respect for individual enterprise and
performance.

Our Objectives

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 To develop a committed service culture which ensures 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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University of Karachi M.E.F After P.G.D 11
 Introduction of Products

Types of products offered

 Riba Free Meezan Providence

 Riba Free - Certificates of Islamic Investment

 Riba Free - Monthly Musharakah Certificate

 Riba Free - Dollar Saving Account

 Riba Free - Rupee Saving Account

 Riba Free - Current Account

 Car Ijarah - Islamic Car Financing

 Riba Free Meezan Providence:

It is a long term investment product especially designed for the need and to fulfill
the requirements of the corporate and business concerns for purpose of
investing their provident, pension and Gratuity Funds as any sensible and wise

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 person who wants to invest his earning, his main concerns would be total security
along with the best returns possible, especially as these earnings or funds are a
trust from his employees and one that bears an important responsibility.

Meezan Providence rests on the well known and solid financial strength of
Meezan Bank, which has a strong and credible balance sheet with excellent
operating profitability, including a capital adequacy ratio that has placed the Bank
at the top of the industry.

Furthermore, its sterling track record shows consistently beneficial and highly
competitive returns for their broad range of investors. Finally, comes the benefit
of truly Halal returns, a benefit you may not have had the opportunity to enjoy
before and one that you can now pass on to your employees, many of whom
would be grateful for such an opportunity.

Key Features of Meezan Providence

 A 100% hilal investment in strict compliance with Shariah

 High returns

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  Long Term security ensured

 Minimum investment amount: PKR 1,000,000

 Available tenures of 3, 5 and 7 years.

 Pre-mature withdrawal options available

 Riba –Free-Certificates of Islamic Investment:

This investment product is designed to meet the short term and long term
needs. The minimum investment is PKR 50,000 and it is available in tenures
of 3 and 6 months, 1, 2, 3 and 5 years.

Furthermore, these certificates can be encashed at any time without any charge or
penalty, only the profit rates will be adjusted according to the tenure completed.
You can earn profit on your investment on the following basis:

 Monthly profit on 1, 2, 3 and 5 years

 Quarterly profit on 1, 2, 3 and 5 years
 At maturity profit payment for all tenures

In the Riba Free COII, you enter into the Musharakah agreement that is strictly
in conformity with the principles of Islamic Shariah. The deposits of the
customers together with the Bank’s contribution are invested in a pool that
consists of Ijarah and Murabaha financing. The profit/loss on this pool is
calculated every month on the basis of profit sharing ratio determined by

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 assigning weightings. Such weightings are assigned at the beginning of every
month and are displayed on the bank notice board and website. This facility is
available during the course of investment. However, profit shall be paid only
after completion of one month of investment.

Riba Free-Monthly Musharakah Certificate:

The riba free Monthly Musharakah Certificates are a flexible investment product
which has been designed to give the depositor a monthly return which is
Halal. The depositors participate with the bank in the pool of investments

which is comprised of Murabaha and Ijarah transactions. The minimum

investment required is required is only PKR 100,000 and you receive profit
for each complete month of investment with the bank. The profit rate, so
calculated, is applied to all investments which mature between the periods starting
from the 6thday of each month to the 5thday of the next month. During your
relationship with us, you would be entitled to receiving the following additional
benefits.

• Personalized cheque books.

• No restriction on withdrawals.
• Call centre facilities.
• Monthly profit payment to your current or saving account with us.
• Free bank balance certificates
• Personal financial consultancy services
• Access to priority desk

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  Riba Free-Dollar Saving Account

With a minimum of only $100 you can open a Dollar Saving Account with
us under a Mudarabah arrangement that is strictly in conformity with the
principles of Islamic Shariah. The return earned on the Mudarabah pool is
calculated every month and the profit ratio for all investors is declared at the
beginning of the month. If you maintain a minimum average monthly balance of $
500, you shall be eligible to receive profits that shall be disbursed to you every
month. Apart from first class service and personalized attention that our
customers get when they bank with us, we offer the following additional
conveniences to our customers.

• Personalized cheque books

• No restriction on withdrawals or number of transactions.

• Call centre facilities

• Monthly profit payment

• Free bank balance certificates

• Taking stop payment instructions.

• Taking hold mail instructions.

• Issuance of duplicate statement of account.

• Personal financial consultancy services.

• Access to priority desk.

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  Riba Free-Rupee Saving Account

With a minimum of only PKR 10,000 THE Rupee Saving Account can be opened
under musharakah agreement. The profit earned is calculated every month. And if
the client maintains a monthly balance of PKR 10,000 the client is eligible for the
profits that will be disbursed every month. However, the clients of COII may
open this account with any minimum balance.

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

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

PKR 10,000,000 up to PKR 49,999,999
PKR 50,000,000 up to PKR 99,999,999
PKR 100,000,000 and above

 Riba Free - Current Account

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

likes. He may, thus, deposit or withdraw several times in a day as he likes.
Usually the bank allows this and charges service charges are deducted by the
bank from current deposit account. It gives advantage for paying debts by the
convenient and safe means of sending cheques through the post thus avoiding the

trouble and loss. This bank account that is ideal for businesses and individuals
looking for Shariah compliant banking and ease of access. With a minimum
amount of only Rs.10,000 this product offers you a range of benefits
including personalized checking facility, no restrictions on the number of
transactions, free Call Centre facilities, free balance certificates, priority
banking and much more.

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  Car Ijarah – Islamic Car Financing

Car Ijarah is Pakistan's first "Interest Free" car-financing based on Islamic

financing mode of Ijarah or Islamic leasing. This product is ideal for
interest averse individuals, looking for a car financing that provides the
convenience of a well designed product while avoiding an interest based
transaction. Car Ijarahtotally halal auto finance facility that is very affordable,
with quick processing and minimal documentation. Car financing that is very
competitively priced, hassle-free, and totally Halal.

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

for an agreed period, at an agreed consideration. Under car Ijarah agreement the
car will be given to the customer for the period agreed on the time of contract. In
car Ijarah the asset remains in the ownership and risk of bank and the customers
only pay the rentals for use of the asset: just like house rent. The product
has grown all over the country with a portfolio of Rs 291 million as of 31st
December with non-performing contracts.

Key Features of Car Ijarah

 No application fee
 Ease of acquiring any new locally assembled car
 No upfront Insurance Payment
 No advance Rental

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  Available in tenures of 3, 4 and 5 years
 Minimum security deposit as low as 20%

Uses of Murabaha in Meezan

Murabaha can be used in following conditions:

Short / Medium / Long Term Finance for:

 Raw material
 Inventory
 Equipment
 Asset financing
 Import financing
 Export financing (Pre-shipment)
 Consumer goods financing
 House financing
 Vehicle financing
 Land financing
 Shop financing
 PC financing

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University of Karachi M.E.F After P.G.D 20
One of the most important aims of the student life is to express him / her correctly and
adequately. This was believed in my mind when I first decided to go to Islamic Meezan
Bank Limited to complete my internship program.

The organization has been not growing both in size and profit for past few years
and but repute in the market is good. The employee turnover is very high which they
have to cut down as they are losing a number of good trained employees due to its poor
policy. The year 2007 is expected to offer increased competition in the secured assets
business as more Islamic banks are in the market. With their focused strategy and product
development initiatives planned for the year, Meezan Bank is strongly positioned to meet
these challenges. The bank has very well repute in the market. Overall bank is going well
and doing a good business but there are few problems for that I have tried to give few
recommendations that might help company to improve.

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