Internship Report of Meezan Bank Limited
2016
Meezan Bank Limited Alamdar road Branch
Quetta
Submitted To: (BM) Alamdar Road Quetta
Submitted By: Sajida
D/O: Jan Muhammad
Roll No: P (10)
Institute of management science university of
Baluchistan
Qualification: Master of Public Administration
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Contests
Title
pages
1. Preface
Acknowledgement
Executive Summary ………………………………………………………………… 1
2. Evolution of Banking
Early Growth ………………………………………………………………………..… 2
3. Development of Modern Banking
Banking in Pakistan …………………………………………………………………..3
4. Introduction to Meezan Bank Limited ………………………………………..4
5. The Vision & Mission ………………………………………………………………..9
6. competitors of Meezan Bank Limited …………………………………………10
7. Branch Network ………………………………………………………………………10
8. Board of Directors ……………………………………………………………………11
9. Organizational structure …………………………………………………………..12
10.
PMYBL SCHEME ……………………………………………………………..13
11.
Accounts ……………………………………………………………………….17
12.
Cash Department …………………………………………………………..18
13.
Operations ……………………………………………………………………22
14.
SWOT Analysis ……………………………………………………………….24
15.
Recommendations …………………………………………………………25
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Preface:
Internship is an integral part of MPA programme. For the sake of internship the most initial thing is
to have a practical experience. This effort may get a student to get a practical experience if right
organization is selected. During the internship a student comes to particle knowledge. We learn
what we have studied so far. As an MPA student I have also done my internship at Meezan Bank
Limited main branch Alamdar Road Quetta. Here I come to know a different and very interesting
experience of learning and working with staff of Meezan Bank Limited (MBL).
Acknowledgement:
I am grateful to almighty Allah the most Gracious and the most merciful for enabling me to
accomplish this task successfully. I feel much obliged to my parents whose prayers and good wishes
have enabled me to reach this stage. I am thankful to my teachers for his help, advice and guidance
during studies. I would also like to say thanks to the Manager, staff and management of Meezan
Bank Limited for their cooperation and help. I am also thankful to all other people who contributed
their time & efforts in this regard.
Executive Summary:
This is the detailed report about Meezan Bank Limited where I did my internship for eight weeks
from joining date 28 December 2015 till 29 February 2016. Meezan Bank Limited a publically listed
company is the first and largest Islamic Bank in Pakistan and one of the fastest growing banks in the
history of the banking sector of the Country. It commenced operations in 2002 when State Bank of
Pakistan issued first-ever license for Islamic commercial banking. The Bank offers wide range of
Shariah-compliant banking products and services to its customers both retail and business. Besides
traditional banking channels, the Bank offers various Alternate Distribution Channels including
Internet Banking, ATM Banking, Visa & MasterCard debit card, SMS Banking, SMS Alerts, Mobile
Banking Application and Utility Bills Payment through ATM and Internet Banking.
Having the largest branch network and product range 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. Meezan Bank aims to fulfill its prime
objective of providing customers accessibility and convenience within an atmosphere and culture
of dedicated service and recognition of their needs.
Meezan 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 world-class service excellence which our customers demand all
within the bounds of Shariah.
In this report there is complete history of banking as well as bank Meezan Bank Limited.
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Evolution of Banking:
It has not so far been decided as to how the word ‘Bank’ originated. The explanation of this origin is
attributed to the fact that the Jews in Lombardy transacted the business of money exchange on
branches in the market place and when the business failed the people destroyed the Bank.
Incidentally the word ‘bankrupt’ is said to have been evolved from this practice. The opponents of
this opinion argue that it was so then how is that the Italian moneychangers were never called
‘Banchierei’ in the Middle Ages?
Other authorities hold the opinion that the word ‘Bank’ is derived from the German word back
which means joined stock fund. Then ‘Back’ was Italianize into ‘Bank’
Early Growth:
Banking in fact is as primitive as human society for ever since man came to realize the importance
of money as a medium of exchange. Perhaps it was the Babylonians who developed banking system
as early as 2000 B.C. It is evident that the Temples of Babylon were used as ‘Banks’ because of the
prevalent respect and confidence in the clergy.
King Hamurabi (1728 – 1686 B.C) the founder of the Babylonian empire drew up accede wherein
he laid down standard rules of procedure for banking operations by temples and great landlords.
He got his code inscribed on the block of diorite about 8 feet tall containing about 150 paragraphs
which deals with nearly all aspects of loans, interest, pledges, guarantees, natural accidents, loss,
theft etc. Later on Sumerians, Babylonians, Hittites and Assyrians standardized the values of the
goods in silver, copper and bronze.
In 1401 a German public bank was framed comprising the operations of discounting and
transferring of money. By the 16th century some more public banks were
Formed in Venice, Milan, Amsterdam, Hamburg and Nuremburg. In order to streamline Banking
organizations and techniques conferences were held in Nuremburg from 1548 to 1551 and it was
agreed that the commercial interest of the time needed a bank with facilities of growth and transfer
but it should not be a bank run by private individuals. Ultimately in 1587 a State Bank under the
name of banco DI rialto was formed in Genoa. Later the bank of Amsterdam was also formed in
1609. This Bank had a guarantee by the State and rendered valuable services to the Netherlands
trader’s up to the year 1795.
Similarly in 1690 the Bank of Hamburg came into existence in Hamburg with the business of
accepting deposits of fine silver or of foreign money and to run accounts on these deposits. This
Bank rendered great service to the merchants as well as countries it dealt with until 1873 when it
was merged with the Reich bank. By the year 1700 the bank of England was not only issuing notes
but also conducting accounts for customers. Its directors were conducting the business like that of
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limited companies. The bank had the monopoly of issuing banking notes. Up to 1813 or there about
in England the main profit of bank was derived from the circulation of notes.
Development of Modern Banking:
In 1918 came into being eleven clearing banks of today. The effect of this historical development of
banking in England has been fairly wide. First emergence of a small number of large banks with
wide network of branches. Second increase in the popularity of bank accounts and a large-scale use
of cheques.
In 1946 the labor government nationalized the bank of England and transferred the existing stock
to the nominee of British treasury. In 1955 the British Banks made a departure from traditional
banking by undertaking hire-purchase finance for companies buying industrial plants and
machinery and took interest on hire-purchase finance.
Banking in Pakistan:
At the time of independence there were 631 offices of scheduled banks in Pakistan of which 487
were located in West Pakistan alone. As a new country without resources it was very difficult for
Pakistan to run its own banking system immediately. Therefore the expert committee
recommended that the Reserve Bank of India should continue to function in Pakistan until 30th
September 1948 so that problems of time and demand liability coinage currencies exchange etc. are
settled between India and Pakistan. The non-Muslims started transferring their funds and accounts
to India. By the end of June 1948 the number of officers of scheduled banks in Pakistan declined
from 631 to 225. There were 19 foreign banks with the status of small branch offices that were
engaged solely in export of crop from Pakistan, while there were only two Pakistani institutions
Habib Bank of Pakistan and the Australasia Bank. The customers of the bank are not satisfied with
the uncertain condition of banking. Similarly the Reserve Bank of India was not in the favor of Govt.
of Pakistan. The Govt. of Pakistan decided to establish a full-fledge central bank. Consequently the
Governor-general of Pakistan Quaid-E-Azam inaugurated the State Bank of Pakistan on July 1, 1948.
Thus a landmark was made in the history of banking when the state bank of Pakistan assumed full
control of banking and currency in Pakistan.
The banking structure in Pakistan comprises of the following types.
1)
State Bank of Pakistan.
2)
Commercial Bank of Pakistan.
3)
Saving banks.
4)
Co-operative banks
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5)
Specialized credit institutions.
Up to December 31, 1973, there were 14 Pakistan commercial banks that functioned all over the
country and in some foreign countries through a network of branches. All these commercial banks
were nationalized in January 1, 1974, and were recognized and merged into the following five
banks:
1)
National Bank of Pakistan
2)
Muslim commercial bank limited
3)
Habib Bank Limited
4)
United Bank Limited
5)
Allied Bank of Pakistan
The state bank of Pakistan is the Central bank of the country and was established on July 1, 1948.
The separation of East Pakistan and its repercussion in the form of economic depression has caused
a lot of difficulties to the banking system in Pakistan. The network of bank branches now covers a
very large segment of national economy. The numbers of branches have increased appreciably and
there is now on branch of bank for every 3000 heads of population approximately. There is done
reasonable growth in deposits from the establishment of Pakistan. Besides this growth specialized
credit and financial institutions have also developed over the years.
The Government of Pakistan in the late 90’s introducing the need for the privatization of state
owned banks and companies. The private sector has accepted the challenge and most of the banks
are privatized today. The State Bank of Pakistan issues the shares of these periodically. Bank
employees and other common peoples can also purchase these shares and earn profit.
Introduction to Meezan Bank Limited:
1947
The inception of Pakistan as the first Islamic Republic created in the name of Islam.
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.
1985
Commercial banks transformed their nomenclature stating all Rupee Saving Accounts as interest-free.
However, foreign currency deposits in Pakistan and 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
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Court of Pakistan.
1997
Al-Meezan Investment Bank is established with a mandate to pursue Islamic Banking. 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 up a high level commission, task forces and committees
to institute and promote Islamic banking on parallel basis with conventional system.
2001
The Shariah Supervisory Board is established at Al-Meezan Investment Bank led by Justice (Retd.)
Muhammad Taqi Usmani as chairman. State Bank of Pakistan 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.
2002
Meezan Bank acquires the Pakistan operations of Societe Generale and concurrently Al Meezan
Investment Bank converts itself into a full fledged Islamic commercial bank. The first Islamic banking
license is issued to the Bank and it is renamed Meezan Bank. President General Pervez Musharraf
inaugurates the new Islamic Commercial Bank at a formal ceremony in Karachi.
2003
Meezan Bank establishes itself as the pioneer of Islamic Banking in Pakistan and quickly establishes
branches in all major cities of the country. A wide range of products are developed and launched
consolidating the Bank’s position as the premier Islamic Bank of the country Al Meezan Investment
Management Limited (AMIM), the asset management arm of Meezan Bank, introduces Meezan Islamic
Fund (MIF), the country’s first open-end Islamic Mutual Fund.
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 acts as the Shariah Structuring Advisor for this historic transaction.
2005
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
its 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
selected branches in Karachi.
2007
Meezan Bank's branch network reached the milestone number of 100 branches (including sub7
branches) in 31 cities nationwide.
Car Ijarah portfolio reached Rs. 4.1 billion and the Easy Home portfolio stood at Rs. 3.1 billion.
The Bank introduced Istisna' financing to cater to the working capital needs of customers.
Meezan Bank was awarded 'Best Islamic Bank in Pakistan' by Islamic Finance News of REDmoney
Group, Malaysia.Deposit base of the Bank grew to over Rs. 54 billion and the Bank earned profit after
tax of Rs. 963 million. Trade Financebusiness reached Rs. 70 billion.
2008
Meezan Bank introduced Tijarah financing to allow customers to raise funds for financing of stocks of
finished goods.
Meezan Bank was awarded 'Best Islamic Bank in Pakistan' by Islamic Finance News of REDmoney
Group, Malaysia and 'Best Islamic Financial Institution in Pakistan' by Global Finance Magazine, New
York. Branch network grew to 166 branches (including sub-branches) in 40 cities nationwide. Deposit
base grew to Rs. 70 billion and the total financing portfolio amounted to Rs. 39 billion.
2009
2009 was a watershed year for Meezan Bank. The branch network reached 201 branches (including
sub-branches) in 54 cities nationwide; deposit base crossed Rs. 100 billion; profit/return earned on
financing and investment activities exceeded Rs. 10 billion and the Bank handled more than Rs. 100
billion of import/export business.
Being a socially responsible bank, Meezan Bank launched Meezan Labbaik, a Hajj and Umrah product the primary objective being the desire to facilitate Muslims in performing their holy duty. Meezan Visa
Debit Card was also launched during the year which is accepted at over 30 million outlets worldwide
and allows customers to withdraw funds from their account from more than 1.4 million ATMs
worldwide and can also be used for shopping, dining, traveling, fuel and cash needs.
Meezan Bank was awarded 'Best Islamic Bank in Pakistan' by Islamic Finance News of REDmoney
Group, Malaysia; 'Best Islamic Financial Institution in Pakistan' by Global Finance Magazine, New York;
'Best Islamic Bank in Pakistan' for 2009 by ASIA MONEY Magazine, Hong Kong and 'Islamic Bank of the
Year' for 2009 by CFA Association of Pakistan.
Corporate assets, including corporate Sukuk stood at over Rs. 40 billion. Corporate highlights of 2009
included Tijarah financing with PSO, Istisna financing with PARCO and Murabaha financing with
Punjab Food Department.
The Bank started implementing its new core banking application - T-24. T-24 is a core banking
software which includes banking best practices based on Temenos' implementations in over 600
financial institutions and 120 countries across Retail, Corporate, Private Wealth, Islamic and Micro
finance and Community Banking sectors.
2010
Meezan Bank developed a number of new deposit products to cater to the unique needs of different
market segments.Among the products launched during this year were Meezan Business Plus, a
Mudaraba-based account that offers an array of free services for businesses, Meezan Euro Savings
Account and Meezan Pound Savings Account.
Meezan Bank's Car Ijarah completed its 9th year and stood at Rs. 4.2 billion with over 8,000 active
vehicles. Meezan Bank stood among the top three auto-finance providers in the country.
Al Meezan Investment Management launched Meezan Sovereign Fund - an open-end fund; the eighth
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fund under its management, including two closed-end funds, five open-end funds and one voluntary
pension scheme. The Bank developed a financing product based on the concept of 'Wakalah', to
encourage the development of financing partnerships between Islamic banks and Microfinance banks.
During the year, 38 Islamic banking awareness seminars were held in 23 cities across Pakistan and
were attended by more than 4,400 participants representing customers, general public and
professionals.
Meezan Bank was awarded 'Best Islamic Bank in Pakistan' by Islamic Finance News of REDmoney
Group, Malaysia and 'Best Islamic Financial Institution in Pakistan' by Global Finance Magazine, New
York.
Meezan Bank's branch network reached 222 branches in 63 cities across Pakistan and it became the
11th largest bank in Pakistan in terms of branch network.
The Bank demonstrated robust business growth in 2010, closing the year with a deposit figure of Rs.
131 billion and Import/Export business of Rs. 143 billion.
2011
The inauguration of the new Head office in Karachi symbolizes Meezan Bank's established position
amongst the leading banks and the largest Islamic Bank in Pakistan. During the year, 53 branches were
opened to reach a landmark of 275 branches in 83 cities across Pakistan. Meezan Bank was awarded the
‘Best Islamic Bank in Pakistan for 2011’ by Islamic Finance News of REDmoney Group, Malaysia.
The bank expanded its portfolio of consumer financing products with the launch of Meezan Laptop Ease
in first quarter of 2011 which is the first of its kind in Pakistan.
The Bank added another “First” in Pakistan’s Islamic Banking Industry by becoming the Advisor and
Lead Arranger for the first ever short-term Sukuk for Kot Addu Power Company Limited.
During the year 27 Islamic Banking Seminars and over 110 Customer Appreciation Days (115) were
held to educate customers and the general public and Islamic banking.
2012
Meezan Bank reached 10 years of Riba-free banking with 310 branches in 90 cities. The Bank launched
Visa Platinum Debit Card for its customers.
The Bank also started Premium Banking Services and opened Premium Banking Centers throughout
the country.
Another important achievement was the launch of Meezan Kids and Teens Club Account for the
children and teenagers who want to save money for their future.
2013
Meezan Bank became the 8th largest bank in Pakistan in terms of branch network with 350 branches
in 100 cities.
Total deposits of the Bank reached Rs. 280 billion.
The Government of Pakistan nominated Mr. Irfan Siddiqui, the President of Meezan Bank and Dr. Imran
Usmani, Shariah Advisor of Meezan Bank as members of Steering Committee for the Promotion of
Islamic Banking.
The Bank also made an agreement with Ethical Finance Limited for establishing first Islamic
commercial bank in Republic of Mauritius.
2014
Meezan Bank reached a branch network of 428 branches in 117 cities. The Bank acquired Pakistan
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operations of HSBC.
Total deposits reached Rs. 380 billion.
Meezan Bank launched MasterCard Titanium debit card, Mobile Banking Application, Meezan Kafalah
(Takaful), EBiz - Corporate Internet Banking and Meezan Roshni- Generator financing.
The 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.
The 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.
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.
Our Values:
Core Values:
Shariah-compliance,
Responsibility
Integrity,
Professionalism,
Innovation,
Service,
Excellence,
Social
Staff:
Committed, motivated and professionally trained employees who are empathic to their customers’
needs.
Relationships:
Our relationships are long-term. We recognize and value our customers’ needs above all and strive
to ensure their fulfillment. All customers are treated with professionalism and in a friendly manner.
It is our endeavour to ensure that they receive efficient and timely service. The Meezan Bank
experience is a unique one.
Competitors:
Despite notable economic uncertainties the financial strength of Meezan Bank Limited has greatly
enhanced during the previous years. The successful expansion program proved their capability and
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commitment in comparison with the competition in the financial sector. The Banking structure in
Pakistan comprises of:






Central Bank
Commercial Banks
Investment Banks
Development finance Institutions (DFIs)
Specialized Banks
Foreign Banks
Meezan Bank Limited is a private commercial bank so the major competitors of
Meezan Bank Limited is the following:










Muslim Commercial Bank
Standard chartered
Soneri Bank Ltd
Prime Commercial bank
The bank of Punjab
Bank Al-Habib Ltd
ABL
Faysal Bank Ltd
NIB
Arif Habib Rupali Bank Ltd.
Branch Network:
Alhamdulillah, with over 550 branches in over 140 cities across Pakistan, Meezan Bank is the largest
Islamic Bank and the 7th largest Bank (in terms of Branch Network) in Pakistan. This is a milestone that is
not only the success story of Meezan Bank but also the continuing success story of Islamic banking in
Pakistan. With this extensive network, our existing and potential customers are now closer than ever in
benefiting from Islamic Banking at their doorstep. All branches provide real-time online banking facilities
to customers.
The list of Board of Directors of Meezan Bank Limited is as under:






Mr. Riyadh S.A.A. Edrees (Chairman)
Mr. Faisal A.A.A. Al-Nassar
Mr. Bader H.A.M.A. AlRabiah
Mr. Rana Ahmed Humayun
Mr. Alaa A. Al-Sarawi
Syeda Azra Mujtaba
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





Mr. Muhammad Zarrug Rajab
Mr. Mohammad Abdul Aleem
Mr. Noorur Rahman Abid
Mr. Talal S.A. Al-Shehab
Mr. Irfan Siddiqui (President & CEO)
Mr. Ariful Islam (Deputy CEO)
Computerized Working Environment:
In bank all the work is done on computers. All the entries are made in computer. Balance is fed into the
computer. This increases efficiency of the bank. All the branches are centrally controlled through LAN
settings. It helps them to co-ordinate more easily for making efficient and fastest consumer services.
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Organizational structure:
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Islamic Agricultural Financing:
Meezan Bank is considered as a trend setter in Islamic Banking in Pakistan mainly on account of offering
wide range of Shariah-Compliant banking solutions to cater different needs of its customers. Following
its track record, Meezan Bank is now offering Islamic Agricultural Financing Products to farmers.
PMYBL SCHEME:
Under this scheme, financing will be available to the youth of Pakistan under the four major categories,
along with the eligibility criteria:
1. Small Entrepreneur:
Unemployed youth, especially educated ones who are looking for establishing or extending Shariahcompliant business in their personal capacity through establishment of enterprise.
2. Micro Enterprise:
Individuals who have successfully completed 3-4 cycles with Akhuwat and want to graduate from their
current business size.
3. Agriculture (Tractor Ijarah):
Young farmers who require Tractor financing.
4. Car Ijarah:
Vehicles like Bolan & Ravi will be financed for the purpose of Taxi, Delivery Vans and similar activities
etc.
Type of Accounts:
Meezan Bank offers the largest range of Riba-free Deposit Accounts for Personal Banking
1. Local Currency Accounts:









Rupee Current Account - A Convenient, Secure and Stable Deposit Account
Rupee Savings Account - Ensuring Truly Halal Savings with Comprehensive Returns
Meezan Bachat Account - The convenience of a Saving Account with Halal Profit
Labbaik Saving Aasaan - A specialized Saving Account designed to save for Umrah & Hajj
Business Plus Account - Serving you the perfect blend of convenience and flexibility
Meezan Kids Club Account - Specialized saving account for kids under the age of 12 years
Meezan Teens Account - Mudarabah based saving account specifically for teens
Meezan Asaan Current Account - A Convenient, Secure and Stable Deposit Account
Meezan Asaan Savings Account - Ensuring Truly Halal Savings with Comprehensive Returns
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2. Foreign Currency Accounts:






Dollar Current Account - A Truly Halal Dollar Current Account
Dollar Saving Account - A Truly Halal Dollar Saving Account
Euro Current Account - A Truly Halal Euro Current Account
Euro Saving Account - A Truly Halal Euro Saving Account
Pound Current Account - A Truly Halal Pound Current Account
Pound Saving Account - A Truly Halal Pound Saving Account
Procedure of opening Account:
The procedure of opening the account is as given under for account Mis Maria Raza proved so helpful to
me to learn that opening of an account and its all procedure which is as under: For opening of an
account there are different types of account holders are required for all these types. The
operation/procedure requirement that is needed for “Individual Account” differs greatly from the “Joint
Accounts” proprietorship A/C, Partnership A/C, Private Limited Company A/C and Public Limited
Company A/C.
Individual’s Account:
When a single man or woman opens an account in his or her own name and has the right to operate it is
called individual A/C.
Documentation:



Copy of National Identity Card.
Proof of Income
Proper Identification (Introduction).
Operations:

The person place in the type of account and type of operation required in the account opening
form.

He/she fills in part 1 of the form a fix his/her either two of four similar signature ( or thumb
expression in the signature space ) and get it introduced and signed by a person who already has
an account with the bank and write his account number in the specific rows in a specific space.

The person fills his or her father, mother, husband/wife or any other relative’s name his/her
address, phone number, his or her sign to certify this requirement. This requirement is needed
because in his/her absence bank can have correspondence with a specific person.
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

The person deposits the initial amount for opening account onto the cash counter. The person
put his signature on form on two places in “authorized Signature” and fills in the “Title of
Account” space by writing his name.
If the person put his signature in Urdu or any other language other than English he signed a
“Vernacular Form”.

If the person has changed its signature then he must have to sign the “signature change
undertaking”.

The next step is entering in computer because the centralized account opening structure and
generation of account number.
1. Account Opening Form:
First of all the customer fills the account opening form (AOF). Filling of account opening form includes
type of account, currency of account, name, and address, signature of customer and signature of
introducer and attach a photocopy of national identity card. He also signs an undertaking that he will
follow the rules and regulations of the bank.
2. Introduction:
The signature and account number of the account holder introducing the account to the new person is
obtained on the account opening form.
3. Specimen Signature Card:
The signature of the client is obtained on a specimen signature card (S.S Card). The card is obtained with
two signatures from the customer. Every time a cheque is received for payment from the client the
signature on the cheque is verified by comparing it with S.S Card.
4. Requisition slip:
A requisition slip for Cheque book is also given to the customer. The customer fills it and gives it to the
account opening Officer.
5.
Know Your Customer Form:
Every account holder fills this form. The basic purpose of this form is to get some basic information
about the customer’s business and source of incomes.
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6. Account Number:
When all the formalities are completed an account number is allotted to the customer and all the
information is entered into the computer and register. Then that account number is written on S.S Card
and account opening form.
7. Depositing of amount in account:
The client deposit cash in the account. For this purpose cash pay-in-slip is used. The minimum initial
deposit is fixed for each account according to the nature of account. For example for PLS / saving
account the minimum requirement is Rs.100 only.
8. Issuance of a Cheques Book:
After opening an account with the bank the account holder makes a request in the name of the bank for
the issuance of a Cheque book. Such a request is known as Requisition Slip. BAL issues Cheque books
from 10 leaves to 50 leaves. When he used this book completely then he can apply for another known as
subsequent Cheque Book. This process takes a day because the Cheque books come from the Karachi
head office.
9. Entry of Cheques Book:
Before issuance of a Cheque book the bank stamp every leaf with the account number of the customer
enter it in the cheque book register and computer and issues the cheque book to the customer after his
signature on the register.
10. Letter of Thanks:
A letter of thanks is prepared. One letter is for the customer and one for the introducer. One copy is
send to the customer and the other copy is kept in the record along with other documents.
Amendments/Changes in Accounts:
BAL provides the facility of amendments in accounts, whenever required by the customers. Account
holder gives an application along with necessary documents to the bank. Then the amendments are
made in the account of the depositor. These amendments can be made by filling certain application
forms. These forms are as follows:
1. Change of Address Form:
To change the address of the account holder
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2. Change of signature form:
To change the signatures of the customer.
3. Liability / Inquiry Form:
This form is used if some person has acquired loan from the bank and he wants to close his current
account then he fills this form and this form is send to credit department. When the credit department
declares him free from any debt obligations then his account is closed.
4. Mandate To The Third Party To Operate The Account:
This form is used to enable any third party to operate the account.
Closing of Accounts:
The procedure of closing of account is as follows.
1. First of all the customer gives the request to close the account.
2. His signatures are verified.
3. He withdraws all his money from his account but in case of current account Rs. 150 is deducted
as a charge of closing the account.
4. A liability form is send to the credit department if he has taken a loan from the bank. If he is
cleared from all the liabilities then further proceeds are taken.
5. Permission is granted by the authorized person (the manager).
6. Account is closed in the computer system.
7. His specimen signature card is attached with the account opening form and marked closed.
Meezan Bank limited Issues the Following Cheque book Denominations:




10 leaves
25 leaves
50 leaves
100 leaves
Cash Department:
Mis Madia and Mr. basit Hassan helped me in learning about Cash Department. Cash Department
performs two main functions and other subsidiary functions:


Cash Deposits
Cash Payments
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
Online Cash Receipts & Payments
Cash Deposits:
Cash receiving officer receives cash along with pay-in slip from the customer. He/ She checks if the
deposit slip is properly filled up containing title of account, account number, date and amount in word
and figures. He also verifies signature. Detail on both counter file and cash receipt voucher should be
the same. Cash is received by the cash receiving officer, twice counted and matched with the deposit
slip. The cash details are written on the back of the deposit slip and are also entered in cash receiving
register. Cash received stamp is affixed on the face of the deposit slip along with the signature of the
cash receiving officer.
Deposit slip and cash receiving register is given to the officer in cash department. Again proper scrutiny
is made by the officer cash department both on cash receipt and cash receiving register. Officer cash
department signs both the deposit slip and register; Deposit slip is credited and posted in the concerned
account in the system.
Payment of Cheques:
The process for payment of cheques for local and foreign currency is same. First the customer presents
the Cheque or holder to branch and the particulars of cheques are properly filled in. Signature of the
holder is taken on the back of the cheques. Cheque handed over to the officer cash department for
scrutiny where officer checks the date, amount in words and amount in figures, payee’s name crossing if
any, account number, cheque serial number any material alterations, endorsements and signature of
the customer. Account is debited and then the officer cancels cheque. It is posted in the system and
posting stamp and number is affixed on it. Cheque is handed over to the cash payment officer for
payment. One more signature on the back of the cheque is taken from the holder to match with the first
one, and then cash is paid to the payee. Cash detail is written on the back of the cheque. Cash paid
stamp is affixed on the face of the cheque. Entry is passed in the cash payment register.
If the payment is of Rs. 50000 the cashier can make it on its own. If the amount is greater than Rs. 50000
the cashier and cash deposit Incharge will verify the check and will sing it. Then the payment will be
made. Otherwise the payment will not be made.
Clearing Department:
In clearing Mis Kubra Hussain proved so helpful. The clearing process majority involves receiving the
cheques and making payments. This process can be inward or outward.
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Clearing Process (Inward/Outward)
Here the local Cheques are received that are drawn on BAF. All the cheques are received on one counter
along with the paying slips duly filled in properly containing particulars of cheques and account harder.
Counter folio of paying slip is handed over to the customer by putting stamp for #cheque received for
collection for Meezan Bank Limited on it duly signed by officer. These Cheques are scrutinized and
cheques for local clearing are separated from OBC. These are then entered in clearing register and
cheques for collection are entered in OBC register and handed over the Bills Department for collection.
Clearing officer checks and verifies title of all the cheques deposited by the customers to confirm the
good title of the cheques. Cheques are scrutinized properly and paying slips are separated from
cheques. Special crossing, endorsement and clearing stamps are affixed on the cheques. Cheques of
each bank are sorted and arranged branch wise. All the cheques are then entered into the clearing
system of the bank. Print out of the clearing is taken and details are attached with the cheques of each
bank. Details of these banks are then entered into the clearing schedule containing number of cheques
presented and their total amount against the name of each bank. Then total number of cheques
presented to all banks and their total amount is written on the foot of that schedule which is tallied with
the clearing register.
Next morning these cheques are delivered to the respective banks through NIFT in clearing house of
State Bank of Pakistan between 9:00 to 9:30AM. In the same manner other banks present their clearing
drawn on Meezan Bank limited.Total number of cheques and their amount delivered to other banks and
received from them are written on the Clearing House schedule branch for their payment. After proper
scrutiny of cheques verification of signatures and confirmation of balance in the account the Officer
Cash Department pays these cheques by canceling and posting them in the system.
If any cheque is not passed due to insufficient balance or any other reason Officer clearing Department
returns the same cheque by attaching a cheque return memo containing reason for return. This cheque
is entered into the cheque returned register and bank charges are deducted according to the schedule
of charges.
Second clearing is called at 2:30PM to check the fate of the cheques presented to other banks in the
morning. If any cheque is to return that is delivered to the same bank in second clearing. In the same
manner if any cheque presented by Meezan Bank Limited in first clearing is returned they receive it and
once again give schedule of clearing figure to the Officer Clearing House SBP containing number of
cheques and their amount delivered and received unpaid.
Remittances Department:
The need of remittances is commonly felt in today’s business. The main function of remittance
department in a bank is the transfer of funds.
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Mr.Muhammad Aqeel operation manager in Meezan Bank Limited is the officer for Remittances
Department. In remittances following banking instruments are used:





Pay order
Demand draft
Online transfer
Call deposit receipts
Traveling cheque
The procedure for dealing with all these under local as well as foreign currency in MBL is as under.
Pay Order:
A pay order is a written order issued by a bank drawn upon & payable by itself to pay a specified sum of
money to or to the order of a specified person.
Procedure for Pay Order:
Application form is given to the customer to fill. Two signatures are taken on the form one for request
and other for receiving the instrument. All the particulars of application form are checked and bank
commission charges and withholding tax is written on the top of the application form. If the customer is
maintaining his account with the branch, he can give cheque for total amount of instrument plus bank
charges. Cheque and application from is then given to the officer Cash Department for the payment of
cheque. After proper scrutiny Officer Cash Department posts the cheque and signs the application form
in token of payment received. If the customer wants to pay cash then cash is deposited by the customer
along with the bank charges and withholding tax.
Application form is then given to the Remittances In charge for issuance of instrument. He enters all the
particulars of the application form in the system and computer gives an Auto Control Number to the
instrument. Printout is taken on the block of payment Order. Two authorized officers of the branch
then sign it. Instrument is then protecting graphed and given to the customer.
Demand Draft:
A Demand Draft (DD) is an instrument, which is drawn by one bank upon another bank for a specific sum
of money payable on demand. It is made by the bank, given to the purchaser against cash or cheque.
Parties Involved In DD:
Purchaser
Issuing Branch
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Drawee Branch
Payee
Procedure for Issuing DD:
Issuance procedure of Demand Draft is same as of pay Order.
Procedure for Demand Draft Payable:
When DD advice is received, signatures of both signatory on the DD are verified. All the particulars of
the DD payable are entered in the system. Prints out of vouchers (DD payable) are taken. When
instrument is presented for payment, signatures of the attorneys are verified on DD and after proper
scrutiny; it is posted in the system and canceled by the Remittances In charge.
Online Transfer:
Sometimes when the remittance is urgently required by the remitter online Transfer is made.
Collection:
All the cheques under collection are called cheques under Collection in Meezan Bank Limited. There are
two types of bills for collection:


Outward Bills for Collection
Inward Bills for collection
Accounts Department:
Most important department of bank as it is concerned with:
1.
2.
3.
4.
Revenue
Expenses
Assets
Liabilities
Daily Customer Movement List:
All the changes that are made in accounts of customer are shown in the daily customer movement list.
By using this list people of Accounts Department can prepare the vouchers.
Following activities are performed by Account Department:
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




Voucher preparation
Preparation of daily, weekly, monthly, and annual statement.
Budgeting and fixed assets
Employer’s benefit
Expenditure approval.
SWOT Analysis:
Strengths:
 Bank has a belief in customer service
 Customer give suggestion for the improvement of bank and these suggestions are listened
carefully.
 Manager Mr. Muhammad Mehdi Fida has a good coordination with staff members.
 Environment is friendly.
 Products are excellent
 Expansion is consistent
 Modernized banking (online + Internet)
 Fully computerized each department has to own PC.
Weaknesses:
 New Setup
 Staff is lesser.
Opportunities:
 Information Technology.
 Establishing Foreign Branches
 Local Setup Expand
Threats:
 Competition by the settled bank like MCB and others
 There is a possibility that in future the customers are too many to be handled by the so small
number of the employees.
 Governmental policies may pose unpleasant role
 Global issues like America Iran war and terrorism
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Recommendations
Finally there are some suggestions for Meezan Bank Limited. These suggestions are based on
experience with the bank.
This is a routine practice that in order to give personalized services to the customer bank staff tries to fill
all the columns of AOF with their own handwriting which is wrong. AOF must be filled in by the
customers. Bankers should avoid filling in the AOF because it can create problem if the address, title of
account or any other information provided by the customer has not been written properly. Customer
may be affected or he may claim that this information was not provided by him, but if AOF is filled by
the customer then banker cannot be held responsible for any incorrect information provided by the
customer.
Marketing Practices Adopted By Bank
Nowadays marketing of products is of prime importance for any organization. In this dynamic
environment every organization has its own Marketing Department which is responsible for creating the
demand of its goods and services.
Nowadays banks also have their marketing departments which are responsible for creating demand of
their products i.e. their deposit schemes and increasing the deposit of the bank.
Meezan Bank Limited has its own full marketing Department at the Head Office Karachi. This
department prepares different deposit schemes for its customers time to time in order to increase the
business of the bank. At branch level the Operations Department follows marketing practices. At each
branch of bank officers are available to provide marketing activities of their products.
They make customer calls and personally visit the potential customer to convince them to invest. They
make phone calls to customers and inform them about their schemes, profit rates.
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