Final

:
In the name of ALLAH

The most Beneficial, the most Merciful
“If you are on the right path and you are not facing
Difficulties then think
For a while u may be on wrong path, because right path Contain difficulties”
Hazrat Ali (R.A)
1
Says of HOLLY PROPHET (PBUH):
“Acquire knowledge, because he who acquires it, in the way of the Lord, performs an
act of piety; who speaks of it praises the Lord; who seeks it, adores God, who
dispenses instruction in it, bestows alms; and who imparts it to its fitting objects,
performs an act of devotion to God. Knowledge enables its possessor to distinguish
what is forbidden from what is not; lights the way to Heaven; it is our friend in the
desert, our companion in solitude, our companion, when bereft of riends; it guides us
to happiness; it sustains us in misery; it is our ornament in the company of friends; it
serves as an armor against our enemies. With knowledge the creatures of Allah rises
to the heights of goodness and to noble position, associates with the sovereigns in
this world and attains the perfection of happiness in the next.”
2
Dedicated to
Holy Prophet (PBUH)

[Greatest Reformer]
&
My Precious Parents
3
In the name of ALLAH Almighty, the most gracious and merciful, who
gave us the power, knowledge, strength and ability to complete this
dissertation
We are indebted to many people for the successful completion of this

document. First of all, we would like to thank Department of Business
Administration of University of Education, for providing us the golden
opportunity to improve our knowledge and skills in the field of Business
Management.
We would not forget to thank our project supervisor, MS. Tahira nisar
for his generous support, who made us to realize the concept of research
during his course, Research Project.
We are also grateful to Muddassar Ahmad Bhatti, who helped us in the

completion of this project.At the end, we are very thankful to all my
friends and my family who helped, supported and motivated us in
completion of this project.
4
Executive Summary
This research is a part of my Bachelor of Business Administration degree. The purpose of this research is to
explore the potential of Banking in Pakistan and to find out the challenges & opportunities faced by Banking
Industry. In this project comparison of consumer financing products of local and foreign banks have also been done
and the problems faced by borrowers and lenders have also been identified. There are Meezan islamic have been
selected in this project, from which interviews and surveys are conducted.
Banking was backed by the SBP to give boost to economic growth through demand-pull pressure. Various
instruments of bank have attractions for consumers for reasons that are dictated by personal desires, income
constraints, paying capacity, social needs and access to getting loans. Rising interest rates, spiraling service charges
and deterioration in quality of service are bringing down the demand for personal loans, credit cards and auto
financing. Consumer banking is facing new challenges as a result of interest hikes.
The real beneficiaries of banking are the people who did not have capacity to purchase expensive household items
in a single go but could afford them because of banking, the commercial banks that have been earning large interest
and huge returns on their investment in consumer finance and the economy that got impetus for growth.
Local banks are preferred by people for general banking services because of their low charges and wide branch
network but for consumer banking people prefer foreign banks because of their good customer service and wide
range of facilities. Despite of so many changes in consumer financing regulations bank’s customers are still facing
hidden charges problem, difficulty in getting consumer loans and not highly satisfied by tenure of consumer loans.
Due to lack of awareness many problems are faced by the banks customers and the industry growth rate is
declining. Banks should take steps to promote consumer banking in such a way that the awareness if consumer
banking services could be increased and the industry could boost at a high rate. New services need to be introduced
and services and banks charges & markup rates should be reduced.
In case economy is to sustain growth through consumer finance as one of the important factors of growth, then
income inequalities should be bridged and income level be increased to develop paying capacity of large number of
consumers.
5
No. Title Pages
1 INTRODUCTION TO PROJECT 07
2 Introduction of industry 08
3 ORGNIZATION PROFILE 09
4 Intoduction of Orgnization 22
5 Vision 29
6 Mission 30
7 Department & Accounts 34
8 Corporate Banking 35
9 CLEARING DEPARTMENT 46
10 Business Accounts 42
11 Term Certificate 49
12 Monetary Evaluation 67
13 Findings 70
14 Recommendations 72
15 Conclusion 74
16 Glossary 77
17 BIBLIOGRAPHY 79
18 Anexture 81
6
7
Introduction of industry
Section 1.0 Introduction
1.1 Background
In Pakistan all banks & DFI’s works under the supervision of the State Bank of Pakistan, the four major sectors in
which SBP has divided banks operations are Corporate, SME, Agriculture and Consumer. SBP provide regulations
according to which all banks should work & continuously keep a track that banks are complying through the
regulations or not.
1.2 Purpose
8
In recent years, Consumer Banking has made tremendous progress and has played a positive role in boosting the
economy and in meeting the needs and requirements of the consumers. Whether large or small bank, multinational
or local, each one of them is geared towards making its mark in an already competitive environment that is the
outcome of consumer banking. The growing economy and further improvements in the level of household income
have created many opportunities for consumer banking. In this research the past, present & future of consumer
banking will be analyzed.
1.3 Objective
This report will give an overview of the problems in current system of consumer banking from the point of view of
both borrowers & lenders and explore the upcoming opportunities in the area of consumer banking.
Main Objectives:
• Comparison of services by local & foreign banks
• Problems in current system of consumer banking
• Solution for problems faced by lenders & borrowers
• Exploration of opportunities in future
• Role of consumer banking in Economic Development
1.4 Scope & Limitation
Issues like, problems in consumer banking due to which some banks temporarily stop consumer financing, why
some banks haven’t implemented full fledge consumer banking and what are the opportunities in consumer
banking & its effect on economic development will be analyzed.
1.5 Assumptions
• Consumer Banking Industry has a lot of potential to grow

• Both borrowers and lenders are facing a lot of problems
• High Interest, wrong policies, lack of education, etc are the factors for decline of consumer banking
industry
• Consumer Banking is still a highly profitable banking sector although its facing a lot of problems
1.6 Study Plan
9
Section – I of this report is totally based on secondary data consist of an overall view of Pakistan Banking
Industry, brief introduction of Meezan bank which are included in this research.
Section-11 of this report consists of recommendation and conclusion bases on our finding & analysis of this whole
research.
2.0 Industry Overview from Secondary Data
2.1 Banking Industry of Pakistan
In Pakistan all banks & DFI’s works under the supervision of the State Bank of Pakistan, the four major sectors in
which SBP has divided banks operations are Corporate, SME, Agriculture and Consumer. SBP provide regulations
according to which all banks should work & continuously keep a track that banks are complying through the
regulations or not.
Pakistan is the sixth most populous country of the world fourth in Asia and second in SAARC countries, with a
population of more than 160 Million of which 100 Million is less than 25 years old and with a 30 Million strong
middle class enjoying many benefits from consumer financing or donor’s agencies. (Alam, 2007)
Banking sector in Pakistan has undergone a significant transformation in the recent years and has also acted as a
catalyst in the revival of the economy. Many privatization, acquisition and mergers took place during last 7 years
which started from privatization of Muslim Commercial Bank and from time to time Allied Bank Limited, United
Bank Limited, Habib Bank Limited were also privatized by the government. These years also witnessed acquisition
of Union Bank by Standard Chartered Bank, Prime Bank by ABN Amro, etc also took place and recently
Metropolitan Bank has been merged with Habib Bank AG Zurich. All these privatization, acquisition and mergers
resulted in high foreign investment in Pakistan and improved performance of the banking industry while its has
also helped banks to gain more market share in short time and to easily meet the high paid-up-capital requirement
of SBP i.e. Rs. 6 Billion till 2009 which was Rs.0.5 to Rs. 1 Billion
in 2000.
The commercial banking sector in Pakistan can be segregated into three categories - (1) five large commercial
banks with total branches in excess of 700 each. Four of these banks have been denationalized in recent years, (2)
branches of foreign banks in Pakistan and (3) local private banks.
Table 2.1
10
2000-2001 2003-2004 2006-2007
No. of Schedules Banks 43 39 41
No. of Schedules Banks 6724 6373 7746
Branches
Scheduled Banks 1276 2002 3373
Deposits
Rupees in Billion
Advances
Rupees in Billion
Assets
Rupees in Billion
Online Branches 450 2475 4179
ATM’s 259 786 2294
Credit Card Holders 29200 809000 5815000
(SBP, 2006)
The market has been dominated by five large commercial banks. Foreign banks have been in operation for a long
time as well, but their business is concentrated with large multinational clients. Local private banks were allowed
to be formed in 1991 and currently there are about 30 such banks, which tend to serve local small to medium-sized
enterprises.
Pakistan has a highly developed financial sector consisting of 4 public 12 private 21 commercial banks, DFI,
leasing companies, mutual funds, Islamic venture capital fund companies. The commercial banks have assets of
over one trillion rupees of which about 80% is held by domestic banks. (Alam, 2007)
2.2 State Bank of Pakistan (Central Bank)
The State Bank of Pakistan (SBP) is the central bank of Pakistan. While its constitution, as originally laid down in
the State Bank of Pakistan Order 1948, remained basically unchanged until January 1, 1974, when the bank was
nationalised, the scope of its functions was considerably enlarged. The State Bank of Pakistan Act 1956, with
subsequent amendments, forms the basis of its operations today. The headquarters are located in the financial
capital of Pakistan, Karachi with its second headquarters in the capital, Islamabad.
The Stat Bank of Pakistan looks into a lot of different ranges of banking to deal with the changes in economic
climate and different purchasing and buying powers. Here are some of the banking areas that the state bank looks
into;
• State Bank’s Shariah Board Approves Essentials and Model Agreements for Islamic Modes of Financing
• Procedure for Submitting Claims with SBP In Respect of Unclaimed Deposits Surrendered By Banks/DFI’s.
• Banking Sector Supervision in Pakistan
• Micro Finance
• Small Medium Enterprises (SMEs)
11
• Minimum Capital Requirements for Banks
• Remittance Facilities in Pakistan
• Opening of Foreign Currency Accounts with Banks in Pakistan under new scheme.
• Handbook of Corporate Governance
• Guidelines on Risk Management
• Guidelines on Commercial Paper
• Guidelines on Securitization
• SBP Scheme for Agricultural Financing
The principal officer of the SBP is the Governor. During December 2005, the President of Pakistan appointed Dr.
Shamshad Aktar as the new Governor of the State Bank for a three year term, to replace Dr. Ishrat Hussain, who
retired on December 1, 2005.
2.2.1 Departments of SBP
• Agricultural Credit
• Audit
• Banking Inspection
• Banking Policy
• Banking Supervision
• Corporate Services
• Economic Policy
• Exchange and Debt Management
• Exchange Policy
• Human Resource
• Information System
• Islamic Banking
• Legal Services
• Payment System
• Research
• Statistics
• Real Time Gross Settlement System (RTGS System)
• Small and Medium Enterprises
12
2.3 Foreign & Local Banks
BANKS IN PAKISTAN
MEMBER'S OF PAKISTAN BANK ASSOCIATION (updated on 23-DEC-2010)
PUBLIC SECTOR BANKS

1. FIRST WOMEN BANK LIMITED
2. THE BANK OF KHYBER
3. NATIONAL BANK OF PAKISTAN
4. THE BANK OF PUNJAB

ISLAMIC BANKS
1. BANKISLAMI PAKISTAN LIMITED
2. ALBARAKA BANK (PAKISTAN) LIMITED
3. DAWOOD ISLAMIC BANK LIMITED
4. MEEZAN BANK LIMITED
5. DUBAI ISLAMIC BANK PAKISTAN LIMITED

PRIVATE BANKS
1. SAMBA BANK LIMITED
2. JS BANK LIMITED
3. ALLIED BANK LIMITED
4. KASB BANK LIMITED
5. SUMMIT BANK LIMITED
6. MCB BANK LIMITED
7. ASKARI BANK LIMITED
8. MYBANK LIMITED
9. ATLAS BANK LIMITED
10. NIB BANK LIMITED
11. BANK ALFALAH LIMITED
12. SILK BANK LIMITED
13. BANK AL HABIB LIMITED
14. SONERI BANK LIMITED
15. THE ROYAL BANK OF SCOTLAND LIMITED
16. STANDARD CHARTERED BANK (PAKISTAN) LIMITED
17. FAYSAL BANK LIMITED
18. UNITED BANK LIMITED
19. HABIB BANK LIMITED
20. HABIB METROPOLITAN BANK LIMITED

FOREIGN BANKS
1. THE BANK OF TOKYO-MITSUBISHI UFJ LIMITED - PAKISTAN OPERATIONS
2. CITIBANK N.A. - PAKISTAN OPERATIONS
3. HSBC BANK MIDDLE EAST LIMITED – PAKISTAN
4. DEUTSCHE BANK AG - PAKISTAN OPERATIONS
5. BARCLAYS BANK PLC
13
6. OMAN INTERNATIONAL BANK S.A.O.G – PAKISTAN OPERATIONS
DEVELOPMENT FINANCIAL INSTITUTIONS
1. HOUSE BUILDING FINANCE CORPORATION
2. PAKISTAN KUWAIT INVESTMENT COMPANY LIMITED
3. PAK BRUNEI INVESTMENT COMPANY LIMITED
4. PAK OMAN INVESTMENT COMPANY LIMITED
5. PAK IRAN JOINT INVESTMENT COMPANY
6. SAUDI PAK INDUSTRIAL & AGRICULTURAL INVESTMENT COMPANY LIMITED
7. PAK LIBYA HOLDING COMPANY LIMITED
8. PAK-CHINA INVESTMENT COMPANY LIMITED

SPECIALIZED BANKS
1. INDUSTRIAL DEVELOPMENT BANK OF PAKISTAN
2. THE PUNJAB PROVINCIAL COOPERATIVE BANK LTD
3. SME BANK LIMITED
4. ZARAI TARAQIATI BANK LIMITED

MICRO FINANCE BANKS / INSTITUTIONS
1. KHUSHHALI BANK LIMITED
2. ROZGAR MICROFINANCE BANK LIMITED
3. NETWORK MICROFINANCE BANK LIMITED
4. TAMEER MICRO FINANCE BANK LIMITED
5. PAK OMAN MICROFINANCE BANK LIMITED
6. THE FIRST MICRO FINANCE BANK LIMITED
7. KASHF MICROFINANCE BANK LIMITED
2.4 Products / Services in Banking Sector
Some major services in banking industry of Pakistan;
SMS Alerts Term Accounts

Current Accounts Savings Accounts
Foreign Currency Accounts Cash Management Service
E-Statements Statements by Fax
Merchant Services Business Loans
Remittance Service Trade Finance
Investment Banking Lockers Facility
SWIFT Service International Banking
14
Current Accounts Debit Cards
ATM Traveler Cheque
Pay Order Telegraphic Transfer
Demand Draft Home Loans
Auto Loans
Personal Loans
Credit Cards
Business Loans
Running Finance
Balance Transfer Facility
Online Banking
Internet Banking
Mobile Banking
2.5 Consumer Banking in Pakistan
Consumer banking which is one of the fastest growing sectors of Pakistan Banking Industry is also now major
interest point for the banks. Initially the consumer banking sector was only focused by the foreign banks but its
efficiency & profitability attracted others to come towards this business but still the major share of consumer
banking in Pakistan is in the hands of foreign banks.
In a generic sense, institutional arrangements that provide consumers with financing support to enhance their
consumption and as a result thereof, improve their standards of living should fall within the broad definition of
consumer finance. For the past 50 years commercial banks in Pakistan had completely ignored consumer financing
as an activity.
Consumer banking is a huge industry with great profits massive potential for improving economic conditions. But
the banking sector has to care more for its subscribers rather than solely about itself. It needs to offer itself. It needs
to offer better services at better terms and needs to inform the consumer completely and fully about the services.
According to an analysis, credit cards loans have increased from Rs33.538 billion during first of last calendar year
to Rs42.822 billion during first half of current calendar year. Likewise, personal loans have increased from
Rs120.517 billion in H1CY06 to Rs142.373 billion in H1 CY07. Growth in auto loans has not been less
impressive. It registered an increase of approximately Rs8.0 billion from RS97.777 billion to Rs105.444 billion
during the corresponding period of growth of credit cards and personal loans. Housing loans have also registered an
increase of approximately Rs11.0 billion in H1 CY 07 from Rs43.205 billion in H1 CY06. (Sharif, 2007)
15
Exposure per borrower
Rupees in 000 2004 2005 2006
Credit Cards 23 26 32
Auto Loans 423 430 411
Consumer Durable 37 29 22
Mortgage Loans 1572 1982 2025
Other Personal Loans 82 89 100
(SBP, 2006)
Figure 2.1
Consumer Financing Share by Sector(SBP, 2006) Amount of Consumer Financing (SBP, 2006)
Figure 2.2
Figure 2.3
NPL Ratio of Consumer Financing (SBP, 2006)

2.5.1 Auto Loans
In Pakistan auto loans are purchase of brand new or used, imported or local cars for private use. Auto financing and
auto leasing both facilities are offered by most of the banks. Salaried Persons/Self Employed Professionals /
Business Persons who meet the terms and conditions to qualify for the finance are eligible for the loan. Some banks
are also offering both variable rate & fixed rate options for auto loans. The average market rate for auto loans is 14-
16%.
16
2.5.2 Home Loans
The loans taken for Buying, Building or Renovating of house/land are classified as home loans. For home loans
both variable rate & fixed rate options are also available. The maximum duration offered by banks for home loans
is generally twenty years that’s why banks conveniently give loans to permanent employees of any firm to ensure
strong repayment ability.
2.5.3 Personal Loans
Personal Loans are generally unsecured type of loans but in certain cases when the amount of personal loans
increases the normal limit its remaining portion must be secured. Personal loans include loans for the purpose of
education, marriage, purchase of consumer durables, furnishing, traveling, etc. Generally the limit for personal
loans is maximum Rs.500, 000/-
2.5.4 Credit-Debit Cards
Credit Cards mean cards which allow a customer to make payments on credit. Supplementary credit cards are
considered part of the principal credit card. Initially only foreign banks are offering credit cards in Pakistan but
now many local banks is also offering credit card facility. Credit Card is covered by three networks VISA, Master
Card & American Express.
Debit cards are issued to account holders of any bank in Pakistan almost all the banks are offering debit card
facility the amount used by the debit card holder is directly debited from the account of the card holder. Debit cards
are accepted at all ORIX Network in Pakistan and it can also be used as ATM cards which are covered by 1-Link &
MNET network in Pakistan.
2.5.5 Deposit Accounts
All the commercial banks are offering different kinds of deposit accounts these account ranges from customer to
customer to fill the need of every type of customer. Few of the accounts provide high interest while some pay low
interest & some don’t pay any interest. Some major categories of deposit accounts are;
• Current Accounts
• Saving Accounts
• Foreign Currency Accounts
• Business Accounts
17
• Term Deposits Accounts
2.5.6 Wealth Management
Wealth management is a new kind of service introduced in consumer banking sector now days. It covers all aspects
of securing future of bank’s customers it includes insurance, tax advisory, financial consultancy, investments plans,
etc. Yet wealth management service are mainly covered by few foreign banks only this is a new service are even
bank’s customers don’t have any idea about Wealth Management Service. Almost all the banks are offering
insurance services to some of their customers but the concept of wealth management is not behind it.
2.5.7 E-banking
To facilitate its customers all banks local & foreign are offering high technological e-banking services. These
services let the banks customers to perform many banking activities easily without any restriction of time & place.
Some of the major e-banking services provided by the banks are;
• Phone banking
• Internet banking
• Plastic Cards
• Online banking
• Mobile banking
• ATM
18
19
ORGNIZATION STRUTURE
20
21
Shareholders
Shareholding Structure Rs. in millions %
Noor Financial Investment Co, Kuwait 3,429 49

Pakistan Kuwait Investment Company (Pvt.) Limited 2,095 30
Islamic Development Bank, Jeddah 651 9
Others 808 12
Paid up Capital 6,983 100
Noor Financial Investment Company is a Kuwaiti investment company, engaged in investment and financial activities
primarily in Kuwait, the Middle East, Asia and other emerging markets. The company was established as the financing arm
of the National Industries Group (NIG), which is one of the largest private sector industrial groups in Kuwait.
Noor provides a broad range of financial services, which include advisory services, underwriting, guarantee or counter
guarantee services, term financing and syndications. The company actively invests in local capital markets and also diversifies
its investments through international capital markets.
Pakistan Kuwait Investment Company (Private) Limited (PKIC) , a joint venture between the Governments of Pakistan
and Kuwait, is one of the most profitable and respected financial institutions in Pakistan. It is commonly referred to as a
leading example of a successful sovereign joint venture. PKIC has nurtured a diversified experience in foreign currency
transactions, project finance and syndications in 30 years of its operations in Pakistan. It is the first financial institution in
Pakistan that has been rated AAA (Triple A) for medium to long term by JCR-VIS Credit Rating Company Limited, an
affiliate of Japan Credit Rating Compan y.
Islamic Development Bank (IDB) is located in Jeddah and is an international financial institution established in 1975 in
pursuance of a declaration of the Conference of Finance Ministers, of Muslim countries to foster economic development and
social progress in member (Islamic) countries. IDB has an equity of approximately USD 8 billion and enjoys presence in
56 member countries. The Bank participates in equity capital and grants loans for productive projects and enterprises
besides providing financial assistance in other forms for economic and social development.
22
23
History of Islamic Banking
"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-e-Azam Mohammed Ali Jinnah
Opening Ceremony of The State Bank of Pakistan on July 1, 1948
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 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
24
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
25
Meezan Bank becomes the first customer of Islamic Insurance (Takaful) by signing the
first Memorandum of Understanding MoU with Pak-Kuwait Takaful Company Limited
(PKTCL). The signing of this MoU has ushered Pakistan into a new era of Islamic
Insurance (Takaful).
2006
A number of new dedicated Islamic Banks, namely Bank Islami and Dubai Islamic Bank,
commence operations in Pakistan.Meezan continues its leadership position in the industry
by more than doubling it branch network to a total of 62 branches in 21 cities, clearly
establishing itself as the largest Islamic Bank of the country. Meezan Bank, becomes the
first Islamic bank to introduce 8 am to 8 pm banking at selected branches in Karachi.
2007
Meezan Bank's branch network reached the milestone number of 100 branches (including
sub-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.
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;
26
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.
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 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.
27
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.
28
ss
29
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.
30
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
31
Our Va lues
Core Values Shariah Compliance, Integrit y, Professionalism,
Service Excellence,
Social Responsibility
Staff Committed, motivated and professionally trained employees who
are empathic to
their customers’ needs.
Brand Personality A sober and established, strong, empathic,
professional person; who is
an extremely loyal and dependable friend and business partne r, and is
committed to offering
comprehensive value-based Shariah-compliant financial solutions.
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.
32
33
Histoy of Meezan Bank
Meezan Bank Limited, a publicly listed company, was

incorporated on January 27, 1997 and started operations as an
investment bank in August that year. In January, 2002 in an
historic initiative, Meezan Bank was granted the country’s first
full-fledged commercial banking license as a dedicated Islamic
Bank, by the State Bank of Pakistan.
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1- Corporate Banking
35
2- Business Banking
Corporate Banking
Meezan Bank’s Corporate Banking is geared towards providing comprehensive
and innovative financial solutions through a diverse product offering. Aimed at
nurturing and developing long-term relationships with our clients we take great
care in understanding each client’s unique financing requirements and
accordingly provide Shariah-compliant financing solutions.
At present we cater to a large number of multinational and local clients

representing various sectors of the economy. By providing financial solutions for
the needs of the Small & Medium Enterprises (SMEs) and having recognized the
significance and diverse business needs of the Commercial Banking sector in the
country, Meezan Bank is committed towards developing tailored financial
solutions and assisting the growth of the Corporate sectors in Pakistan.
Our dedicated Relationship Managers, supported by our Branch staff provide

high quality service at competitive and market-driven pricing to all customers.
Murabaha
One of the most common modes of finance employed by Islamic Banks,

Murabaha is based on the exact requirements of each customer. It can be
defined as a sales transaction where Meezan Bank purchases the commodity
and sells it after adding an agreed profit. Thus, it is not a loan given on interest -
it is sale of a commodity on a deferred price.
Murabaha involves the purchase of a commodity by Meezan Bank on behalf of a

customer and subsequent sale to the customer on cost-plus-profit basis. The
cost and profit margin to the bank is expressly disclosed to the customer.
Simply put, rather than advancing money to the customer, Meezan Bank buys
the commodity from a third party and sells it to the customer at an agreed price,
which includes an element of profit.
Tijarah
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Meezan Tijarah is a Finished Goods financing facility for Customers to sell
Finished Goods on Credit basis. The facility will enable the Customers to sell
their Finished Goods stock, meet their working capital requirements and enjoy
the benefits of Cash sales.
Under this concept the Bank will purchase the finished goods of the Customers
and will appoint the Customer as its agent to sell the same goods in the market
generally on Credit basis.
It is necessary for the validity of Finished Goods transaction that the price is fixed
with the consent of the parties and that the necessary specification of the
required items is fully settled between them. The Finished Goods price is ideally
paid on Spot with immediate delivery of Goods.
Istisna’a
Istisna’a is a sale transaction where an asset is sold before it comes into

existence. It is an order to manufacture a specific asset for the purchaser. The
manufacturer (our customer) uses its own material to manufacture the required
goods. In Istisna’a, price is fixed with the consent of all parties involved. Similarly
all other necessary specifications of the finished product are agreed beforehand.
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Rupee Current Account
Meezan Current Account is a Rupee-based current account that provides you the
convenience of putting your money in a Riba-free account and accessing it
without any restrictions on withdrawal while enjoying a host of professional
conveniences from Meezan Bank.
Meezan Current Account is based on Qard contract where the Bank is liable to
pay your money back on demand. The Bank can use these funds for investment
and other purposes. This account allows you the peace of mind of having your
money safely deposited with a bank with the additional assurance that the Bank
is not investing your money in activities that contravene Shariah principles.
Meezan Current Account can be opened by Individuals, Sole-Proprietorships,

Partnerships and Limited Companies.
Rupee Saving Account
he Riba-free Rupee Saving Account is a basic banking account for every

customer's need. The account provides expected monthly returns along with a
variety of free packaged benefits.
On agreeing to become a Rupee Saving Account holder, the customer enters

into a relationship based onMudarabah 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; funds from the pool are
utilized to provide financing to customers under Islamic modes that include, but
are not restricted to Murabaha, Ijarah, Istisna and Diminishing Musharkah.
Meezan Rupee Saving Account can be opened by Individuals, Sole-

Proprietorships, Partnerships and Limited Companies.
Meezan Bachat Account
Meezan Bachat Account is a unique saving account that provides high expected
monthly returns with the flexibility to withdraw savings if needed. Meezan Bachat
Account offers a higher expected rate of return with nearly the same convenience
and service of a regular savings account.
38
Meezan Bachat Account can be opened by Salaried or Self-employed,
Housewives and Retired individuals.
On agreeing to become a Meezan Bachat Account holder, the customer enters

are not restricted to Murabaha, Ijarah, Istisna and Diminishing Musharkah
Labbaik Saving Aasaan
Meezan Labbaik Saving Aasaan is an ideal deposit product for you if you are an
individual saver and wish to save for your spouse, children, parents, etc. You can
take benefit from this special Mudarabah based Deposit account (available in six
months to twenty years plan) for Umrah & Hajj where you will also be entitled for
profit on the deposited amount, thus providing Customers a bigger incentive to
save for Umrah/Hajj through Meezan Labbaik Saving Aasaan.
On agreeing to become a Labbaik Saving Aasaan Account holder, you will enter
into the relationship of Mudarabah with the Bank. Under this relationship, you will
be the Investor (or Rab-ul- Maal) and the Bank will be the Manager (or Mudarib)
of the funds deposited by you in the Deposit pool. These funds will be utilized by
the Bank to provide financing to customers under Islamic modes of financing,
including but not limited to Murabaha, Ijarah, Istisna and Diminishing
Musharakah.
Meezan Labbaik Saving Account can be opened by Individuals, Sole-

Meezan Business Plus
Meezan Business Plus is a Mudaraba-based account that allows you to conduct

your banking transactions while availing a wide range of free services and
therefore provides you the ideal blend of convenience & flexibility that you
deserve in Islamic banking.
Meezan Business Plus Account can be opened by Individuals and businesses

including Sole Proprietorships, Partnerships and Limited Companies.
On agreeing to become a Meezan Business Plus Account holder, the customer

enters into a relationship based on Mudarabah with Meezan Bank. Under this
the funds received from the customers to a deposit pool. These funds from the
39
pool are utilized to provide financing to customers under Islamic modes that
include, but are not restricted to Murabaha, Ijarah, Istisna and Diminishing
Musharkah.
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Foreign Currency Accounts
Dollar Saving Account
The Riba-free Dollar Savings Account is a Mudarabah-based savings account

that you can open and operate using US Dollars and is therefore an excellent
business tool for both individuals and corporate clients for meeting their business
needs and for diversifying their investment in different foreign currencies to
safeguard against currency fluctuations.
The Meezan Dollar Saving Account can be opened by individuals and

businesses including Sole Proprietorships, Partnerships and Limited Companies.
Dollar Savings Account works on the principle of Mudarabah under which the
customer is an Investor (Rab-ul-Maal), and the Bank is the Manager (Mudarib) of
the funds deposited by the customer. The Bank allocates the funds received from
the customers to a Deposit pool; funds in the pool are invested under Islamic
modes of finance that include but are not restricted to Murabaha, Sukuk and
Ijarah.
Meezan Euro Savings Account
The Riba-free Euro Saving Account is a Mudarabah-based savings account that

you can open and operate using Euros and is therefore an excellent business
tool for individuals and corporate clients both for meeting their business needs
and for diversifying their investment in different foreign currencies to safeguard
against currency fluctuations
On agreeing to become a Meezan Euro Savings Account holder, the customer

Musharkah.
Meezan Euro Saving Account can be opened by Individuals, Sole-

Meezan Pound Savings Account
The Riba-free Pound Saving Account is a Mudarabah-based savings account

that you can open and operate using UK Pounds and is therefore an excellent
business tool for individuals and corporate clients both for meeting their business
41
safeguard against currency fluctuations
Meezan Pound Saving Account can be opened by Individuals, Sole-

On agreeing to become a Meezan Pound Saving account holder, the customer

Musharkah.
42
2 Business Banking
Meezan Bank’s Business Banking is geared towards providing comprehensive

and innovative financial solutions through a diverse product offering. Aimed at
nurturing and developing long-term relationships with our clients we take great
care in understanding each client’s unique requirement and accordingly provide
Shariah-compliant solutions.
At present we cater to a large number of multinational and local clients

representing various sectors of the economy
Meezan Business Plus
Meezan Business Plus is a Mudaraba-based account that allows you to conduct

your banking transactions while availing a wide range of free services and
therefore provides you the ideal blend of convenience & flexibility that you
deserve in Islamic banking.
Meezan Business Plus Account can be opened by Individuals and businesses

On agreeing to become a Meezan Business Plus Account holder, the customer

Musharkah.
Karobari Munafa Account
43
Karobari Munafa is a high profit savings account specifically tailored for large
Corporate or GoP-controlled entities. It allows customers to earn higher returns
on surplus cash balances, has no preset transaction limits and comes with a
variety of free packaged benefits.
Karobari Munafa Account can be opened by Individuals, Sole-Proprietorships,

The Karobari Munafa Account works on the principle of Mudarabah under which
the customer is an Investor (Rab-ul-Maal), and the Bank is the Manager
(Mudarib) of the funds deposited by the customer. The Bank allocates the funds
received from the customers to a Deposit pool. Funds in the pool are invested
under Islamic modes of finance that include but are not restricted to Murabaha,
Sukuk and Ijarah.
MIIDA
The Meezan Islamic Institution Deposit Account (MIIDA) is a unique product,

tailored exclusively for Islamic Financial Institutions (IFIs). With MIIDA, any IFI
now has the opportunity to manage excess liquidity in an immediate and
profitable manner by maintaining a checking account with Meezan Bank.
Meezan Islamic Institution Deposit Account (MIIDA) can be opened by

Individuals, Sole-Proprietorships, Partnerships and Limited Companies.
MIIDA works on the principle of Mudarabah under which the customer is an

Investor (Rab-ul-Maal), and the Bank is the Manager (Mudarib) of the funds
deposited by the customer. The Bank allocates the funds received from the
customers to a Deposit pool. Funds in the pool are invested under Islamic modes
of finance that include but are not restricted to Murabaha, Sukuk and Ijarah.
Rupee Current Account
Meezan Current Account is a Rupee-based current account that provides you the
convenience of putting your money in a Riba-free account and accessing it
without any restrictions on withdrawal while enjoying a host of professional
conveniences from Meezan Bank.
Meezan Current Account is based on Qard contract where the Bank is liable to
pay your money back on demand. The Bank can use these funds for investment
and other purposes. This account allows you the peace of mind of having your
money safely deposited with a bank with the additional assurance that the Bank
is not investing your money in activities that contravene Shariah principles.
44
Meezan Current Account can be opened by Individuals, Sole-Proprietorships,
Rupee Saving Account
The Riba-free Rupee Saving Account is a basic banking account for every customer's need.
The account provides expected monthly returns along with a variety of free packaged
benefits.
On agreeing to become a Rupee Saving Account holder, the customer enters into a
relationship based onMudarabah 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; funds from the pool are utilized to provide financing to customers under Islamic modes
that include, but are not restricted to Murabaha, Ijarah, Istisna and Diminishing Musharkah.
Meezan Rupee Saving Account can be opened by Individuals, Sole-Proprietorships,

Meezan Bachat Account
Meezan Bachat Account is a unique saving account that provides high expected
monthly returns with the flexibility to withdraw savings if needed. Meezan Bachat
Account offers a higher expected rate of return with nearly the same convenience
and service of a regular savings account.
Meezan Bachat Account can be opened by Salaried or Self-employed,

Housewives and Retired individuals.
On agreeing to become a Meezan Bachat Account holder, the customer enters

are not restricted to Murabaha, Ijarah, Istisna and Diminishing Musharkah.
Labbaik Saving Aasaan
45
the Bank to provide financing to customers under Islamic modes of financing,
Musharakah.

Dollar Saving Account
The Riba-free Dollar Savings Account is a Mudarabah-based savings account

that you can open and operate using US Dollars and is therefore an excellent
business tool for both individuals and corporate clients for meeting their business
safeguard against currency fluctuations.
The Meezan Dollar Saving Account can be opened by individuals and

businesses including Sole Proprietorships, Partnerships and Limited Companies.
Dollar Savings Account works on the principle of Mudarabah under which the
the customers to a Deposit pool; funds in the pool are invested under Islamic
modes of finance that include but are not restricted to Murabaha, Sukuk and
Ijarah.
Open a Dollar Savings Account!
Visit any of Meezan Bank’s branches, fill-in the Application Form and complete a
few simple formalities required for opening your Riba-Free Dollar Savings
Account; this is all you need to do to enjoy our personalized banking services.
Meezan Euro Savings Account
The Riba-free Euro Saving Account is a Mudarabah-based savings account that

you can open and operate using Euros and is therefore an excellent business
tool for individuals and corporate clients both for meeting their business needs
and for diversifying their investment in different foreign currencies to safeguard
against currency fluctuations
46
On agreeing to become a Meezan Euro Savings Account holder, the customer
Musharkah.
Meezan Euro Saving Account can be opened by Individuals, Sole-

Meezan Pound Savings Account
The Riba-free Pound Saving Account is a Mudarabah-based savings account

that you can open and operate using UK Pounds and is therefore an excellent
business tool for individuals and corporate clients both for meeting their business
safeguard against currency fluctuations
Meezan Pound Saving Account can be opened by Individuals, Sole-

On agreeing to become a Meezan Pound Saving account holder, the customer

Musharkah.
CLEARING DEPARTMENT
Every banker acts both as a paying as well as a collecting banker, It is however

an important function of crossed cheques. A large part of this work is carried out
through the bankers clearing house.
A clearing house is a place where representative of all banks of the city get
together and settle the receipts and payment of cheques drawn on each other.
As the collecting banker runs certain risks in receipt of their ownership the law
has provided certain protections to the banks.
The Negotiable Instrument Act, 1881, lays down hat drawer or holder of a
cheque or draft may cross the instrument generally or specially. It further lies
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down that a crossed cheque can only be paid to a banker, who collects it for a
customer in good faith and without negligence.
Types of Cheques
• Transfer cheques: are those cheques, which are collected and paid by
the same branch of bank.
• Transfer delivery cheques: are those cheques, which are collected and
paid by two different branches of the same bank situated in the same city.
• Clearing cheques: are those cheques, which are drawn on the
branches of some other bank of the same city or of the same area, which is
covered by a particular clearing house.
• Collection cheques: are those cheques, which are drawn on the
branches of either the same bank or of another bank, but those branches, are
not in the same city or they are not the members of clearing house.
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CLEARING PROCESS (FLOW CHART)
Cheque with slip Slip is asked & filled

given
Cheque along with slip checked, signed &

received by officer
Entries in daybooks are made
Entries checked & verified by another

officer after banking hours by officer
Cheques collected at the day end by Main

Branch’s Officials
The day after tomorrow the banks are

informed about dishonored cheques
Provisional entries for returned cheques

are debited again in both computer &
daybooks
Party is informed about returned cheques

through Phone or personal contact
Cheques are mailed through TCS in case

of no personal contact the same day
(If there is any availability)
49
50
Certificate of Islamic Investment
The Certificate of Islamic Investment (COII) is a Mudarabah-based deposit

product through which you can invest your savings for periods ranging from 3
months to 5 years and earn Halal profit on a periodic basis.
The Certificates of Islamic Investment is an ideal investment for Individuals, Sole

Proprietorships, Partnerships and Limited Companies
Meezan Amdan Certificate
Meezan Amdan Certificate is a Mudarabah-based long-term deposit product that

offers a high expected return to investors and is ideal for those individuals and
corporate clients who need a regular stream of monthly income.
Meezan Amdan Certificates work on the principle of Mudarabah under which the
the customers to a Deposit pool; funds from the pool are utilized to provide
financing to customers under Islamic modes that include, but are not restricted to
Murabaha, Ijarah, Istisna and Diminishing Musharakah.
The Meezan Amdan Certificate is available for Individuals and businesses

Monthly Mudarabah Certificate
The Riba-Free Monthly Mudarabah Certificate (MMC) is a short-term deposit

product which has been designed to give you expected monthly returns.
Monthly Mudarabah Certificates work on the principle of Mudarabah under which

received from the customers to a Deposit pool; funds from the pool are utilized to
provide financing to customers under Islamic modes that include, but are not
restricted to Murabaha, Ijarah, Istisna and Diminishing Musharakah.
The Monthly Mudarabah Certificate is available for Individuals and businesses

including Sole Proprietorships, Partnerships and Limited Companies
Dollar Mudarabah Certificate
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The Dollar Mudarabah Certificate (DMC) is a deposit product through which you
can invest your US Dollars with Meezan Bank for periods ranging from 3 months
to 3 years and earn six-monthly or at maturity profit payments on your
investment.
Dollar Mudarabah Certificates (DMC) work on the principle of Mudarabah under

which the customer is an Investor (Rab-ul-Maal), and the Bank is the Manager
The Dollar Mudarabah Certificate is an ideal investment for Individuals, Sole

52
Online Banking
Our free On-line Banking facility allows all customers to access their account
and conduct banking transactions from any of Meezan bank's branches
nationwide. Our on-line facility makes it easy to deposit and withdraw cash, make
pay-order requests and access numerous banking services from any Meezan
Bank branch even if the account is based in a different city.
Our free On-line Banking, offers the following services:
Real-time cash deposit, instantly crediting your account!

Real-time cash withdrawal upto Rs. 5 million, giving you access to your money
from anywhere in the Country!
Transfer of funds between your Meezan Bank accounts
Deposit and collection of clearing Cheques drawn within the same city
Issuance of Pay-order from any Meezan Bank branch
8 to 8 Banking
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 to enable our customers to avail banking services 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 without having to worry
about losing valuable office hours.
From 8am till 5pm we offer the full range of our banking services while from 5pm
till 8pm our customers are able to avail several commonly-used banking facilities
at the branch (value next day) which meet most of their daily banking
requirements.
Our 8 to 8 banking service is a part of Meezan Bank’s mission to focus on

customer convenience & service quality and is thereby an important step towards
making Islamic Banking the banking of First Choice.
Ladies Banking
Meezan Bank is the first bank in the country to introduce 'Ladies Banking', a
dedicated banking section only for ladies. This new service provides an exclusive
53
banking area as per the set Shariah principles for our female customers in a
comfortable environment.
Special Baking Services: Dedicated Customer Services Officer in our ladies only
banking area who provide consultancy for all Halal banking needs.
Consumer Financing: Car Ijarah and Easy Home
Retail Banking: Current & Savings Accounts, Foreign Currency Accounts, Term
Deposits
24/7 Banking Services: ATM/Debit Card, Call Center, Internet Banking
Our ladies banking service is a part of Meezan Banks mission to focus on

customer convenience and service quality and make Islamic Banking the banking
of First Choice.
This service is presently being offered at our Barkat-e-Hyderi branch in Karachi.
Meezan Home Remittance
Meezan Bank's Remittance services are simple and reliable. They are available
at your doorstep through a wide and efficient network of corresponding banks
worldwide. Only the leading global financial institutions form this network of
correspondent banks.
Quick Remittance in major currencies i.e USD, GBP, EUR, JPY, CHF, SGD,
AUD
Instant online transfer within our branch network without any charges
Extensive branch network in all major cities of Pakistan
Meezan Visa Debit Card allows you to use your own money at more than 30
million outlets and 160 countries worldwide
Free Internet banking facility
Labbaik Travel Aasaan
the Bank to provide financing to customers under Islamic modes of finance
54
Musharakah.

55
Internet Banking
Meezan Internet Banking is the smarter way to bank, providing you global access
to your account 24 hours a day, 7 days a week.
Facilities
With Meezan Internet Banking, you can get secure and convenient access to the
following facilities:
Balance inquiry of multiple accounts

View account statement
Real time cheque status and stop payment request
Cheque book and pay-order request
Lodging and tracking status of complaints
Account activity alerts
ATM Network
Meezan Bank offers a wide network of ATMs located at its branches as well as
prominent offsite locations. You do not need to carry cash anymore; simply go to
the ATM and withdraw cash anywhere, anytime. We also offer access to more
than 2,000 ATM locations country-wide via 1Link and MNET Network.
SMS Alerts
Meezan SMS Alerts service makes your life easier and more convenient than
ever before. Now you do not need to call or visit the branch to inquire about your
daily transactions.
Once you sign up for the Meezan SMS Alert service, you will receive an instant
SMS alert from Meezan Bank on your mobile phone whenever any of the
following transactions occur on your Current or Savings account(s).
24/7 Call Center
With our Call Centre facility, you no longer have to take time out to visit your
branch for your everyday banking needs. By simply dialing 111-331-331 (dial 00-
92-21-111-331-331 from outside Pakistan) you get access to a wide range of
56
Tele-banking solutions and personalized banking services including answers to
questions on Islamic Banking. You can also access our self-service banking,
where you will be guided and assisted in all transactions by our Interactive Voice
Response System (IVR).
Services Provided on IVR
Check your account balances

Instruct issuance of pay orders and demand drafts
Transfer funds between your own accounts
Order issuance of chequebook
Check transaction history of your accounts
Receive information on various MBL products and services
Issue stop payment instructions
Report loss of your chequebook
Register your comments and suggestions regarding MBL products and services
Request or change T-PIN
ATM PIN Reissuance
Report loss of Visa Debit Card or cheque(s)
Request for new Internet Banking Username / Password.
ATM Helpline
You may instantly contact our Call Center officers for any inquiry by just picking
up the phone located beside the ATM.
Meezan Visa Debit Card
Want access to your money anytime, anywhere? With a Meezan Visa Debit
Card, you have access to the money in your account wherever you are,
whenever you want, wherever you see the Visa symbol. The money is deducted
from your balance straight away — there is no interest to pay, no bills & no late
fees!
Using your card is quicker than making a trip to the bank!
Using your card is quicker and far more convenient than queuing at a cash
dispenser and safer than carrying cash.
Use your own money at more than 30 million outlets and 160 countries
worldwide.
Use it to buy both big and small items, wherever you see the Visa symbol.
Each withdrawal taken directly from your Meezan Bank Linked Account.
A safe and convenient alternative to carrying cash.
You can call support 24 hours a day, 7 days a week with any queries. Simply call
111-331-331
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All shopping transactions on your card are signature based. Simply swipe and
sign!
Next time you’re planning to go abroad, you can use your Meezan Visa debit
card for all your purchases and to withdraw cash at ATMs, just as you do at
home wherever you see the Visa symbol.
Convenient - No need to buy foreign currency or travellers’ cheques in advance.

Safe - No need to take large amounts of cash with you.
Accepted all over the world - Pay for hotels, sightseeing, shopping and dining
out.
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Car Ijarah
As a step towards Meezan Bank’s mission to provide a one-stop shop for

innovative value-added Shariah compliant products, Meezan Bank’s
Car Ijarah unit provides 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’ 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.
Special Offer - Residual Value Ijarah with Indus Motors

Meezan Bank Car Ijarah Introduces Residual Value Financing enabling customer
to afford luxury with economy, where the customer can enjoy the benefits of
eased rental. Details
Car Ijarah also features Used Vehicles!

In addition to leasing of new cars, Meezan Bank also provides the unique
opportunity of leasing second hand, both locally assembled and imported
vehicles. 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%. Financing of used cars are subject to a selection criteria.
Key Features of Car Ijarah

Low monthly rental
Rental paid after delivery, not in advance
Fastest processing and delivery
Tracker option available
Minimum security deposit as low as 10%*
All new, used, local, imported and luxury vehicles can be financed
59
Easy Home is a Shariah-compliant Home Finance facility! One that is comprehensive,
affordable, and totally hassle-free. Meezan Bank is committed to meet our customers’
needs in a truly Shariah-compliant manner coupled with dedicated service excellence. Why
not have the best of both worlds? Isn't that what you are working so hard for anyway?
Easy Home not only allows you to own your own home by paying easy instalments but also
keeps you safely away from interest based financing.
Easy Home works on a Diminishing Musharakah basis
With Easy Home you participate with Meezan Bank in joint ownership of your property,
where the Bank will provide a certain amount of financing. You agree to a monthly payment
to the bank of which one component is for use of the home, and another for your equity
share. In fact, the total monthly payment is reduced regularly as your share in the property
grows. When you have made the full investment, which had been agreed upon, you
become the sole owner with a free and clear title to the property.
Special Limited time Offer for Salaried employees of Selected Companies* & Chartered
Accountants
Owning a home you always wanted is no longer a distant dream.
Meezan Bank now offers very preferential profit rate for salaried individuals working in
selected companies approved by the bank. These special rates are also applicable for
salaried Chartered Accountants.
65tytb4rex
Creek Vista is a mega residential project of DHA comprising of high rise complexes
equipped with all modern day facilities. Meezan Bank proudly announces to be the first
Islamic Bank to extend Home Financing for purchase of apartments in Creek Vista.
*For details, please call our 24/7 call center or visit our Housing Hub nearest to you.
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Realizing the increasingly diverse needs of our customers for advisory and
structured finance transactions, a specialized department focusing on Investment
Banking services has been established at Meezan Bank. The department is
geared towards providing comprehensive and innovative financial solutions
through a diverse product offering, providing a broad array of financing solutions
to the bank’s clients. The focus is on nurturing and developing long-term
relationships with clients by understanding their unique financing requirements
and providing Shariah-compliant financing solutions.
In a short span of time, the Investment Banking department has been able to
develop core expertise in arranging syndicated, structured and Project finance
and providing advice on mergers and acquisitions, buy-side / sell-side advisory,
financial restructuring, structured equity and venture capital investments
61
Al Meezan Investment Management Limited (Al Meezan), the asset management and
investment advisory arm of Meezan Bank, specializes exclusively in the development and
management of Shariah compliant investment products. Al Meezan has one of the longest
and the most successful track record of managing mutual funds in the private sector,
spanning over fifteen years.
Al Meezan is presently managing the following funds:

Open End Funds
Meezan Islamic Fund (MIF) - open end equity fund
Meezan Islamic Income Fund (MIIF) - open end income fund
Meezan Cash Fund (MCF) - open end money market fund
Meezan Sovereign Fund (MSF) - open end government securities fund
Meezan Capital Protected Fund-I (MCPF-I) open end capital protected fund
Pension Funds
Meezan Tahaffuz Pension Fund (MTPF)- Voluntary Pension Scheme
Closed End Funds

Al Meezan Mutual Fund Limited (AMMF)- closed end equity fund
Meezan Balanced Fund (MBF)- closed end balanced scheme
The total size of the funds under management as at June 30, 2010 was over PKR 18 billion
as compared to PKR 13 billion at the corresponding date last year. The increasing size of
assets under management manifests the ability of the professional fund management team
to consistently out-perform its peers and consequently build the investor confidence. The
fund wise performance details as at June 30, 2010 is as under:
Net Assets
PKR Return
Fund (Millions) Rating FY - 10
Meezan Cash Fund 5,224 AA(f) 10.10%
Meezan Islamic Fund 3,966 MFR 5-Star 31.00%
Meezan Islamic Income Fund 3,394 A+(f) 7.31%
Meezan Sovereign Fund 971 AA+(f) 9.69%
Meezan Capital Protected Fund-
I 637 - 14%
Al Meezan Mutual Fund 1,404 - 31.23%
Meezan Balanced Fund 1,278 - 22.35%
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Meezan Tahaffuz Pension Fund 277 - 32.00%
Al Meezan is ranked among the best performing asset management companies in

Pakistan. It has achieved Management Quality Rating “AM2”, assigned by JCR-VIS. AM2 is
currently the Highest Management Quality Rating to any Asset Management Company in
the mutual funds industry. This rating denotes high management quality with a stable
outlook. For the year 2009, Eurekahedge - world's largest independent data provider and
research house has ranked Meezan Islamic Fund (MIF)- Pakistan’s largest equity fund in
the private sector and Al Meezan Mutual Fund (AMMF) among the Top 10 Islamic Funds by
returns for the year 2009. MIF was ranked 4th for the year 2009 while AMMF was ranked
6th among the Top 10 performing funds. The statistics have been calculated by
Eurekahedge using funds’ return since inception.
The Shariah Advisor of Meezan Bank Limited, also being the Shariah Advisor of Al Meezan,
supervises the operations in order to ensure Shariah compliance of the funds. In addition to
the quality service, Shariah compliance and impressive performance in terms of returns to
investors, Al Meezan also complies with the global best practices in asset management and
has voluntarily adopted “Asset Manager Code of Professional Conduct” from CFA Institute,
USA. Hence it has the distinction of being the first asset management company in Pakistan
to comply with the best global practices in asset management.
Units of all open end funds are available at the offices of Al Meezan and all branches of
Meezan Bank across Pakistan. For the convenience of investors, Al Meezan has placed
dedicated investment officers at the selected branches of MBL. These officers provide
guidance and assist the investors in meeting their investment objectives.
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Meezan Bank’s treasury is guided by Shariah with the objective of reviewing,
streamlining, and controlling the bank’s domestic and international Treasury-
frelated operations. Treasury caters to the branches and customers for their
entire foreign exchange requirement with efficiency and professionalism. Ready/
spot as well as all forward cover services are provided to branches/customers
within Shariah guidelines. Customers are also provided advice on a regular basis
about the currency movement by the dealing room augmented by market outlook
(without any commitment & obligation)
Treasury has enhanced its market activity with increased depth and enhanced
volumes, making an impact in the inter-bank FX market. Due to its good
relationship with other treasuries, the institution has the ability to generate
sufficient amount of liquidity at any time through the inter-bank market on
Shariah-approved Musharaka basis.
Meezan Bank conducts Commodity Murabaha transaction to optimize its returns

on its Dollar portfolio, besides participating in local/ international Sukuk issues,
e.g. WAPDA, Qatar, Dubai Sukuks, etc. This treasury is the only treasury in
Pakistan with a mandate to provide Shariah-compliant investment opportunities
in capital market that provides Halal income to the shareholders
64
Islamic Adviory service
Meezan Bank has extensive experience and expertise in developing and

advising on the creation of Shariah-compliant financial products and services.
The main objective of Meezan Bank’s Islamic Financial Advisory function is to
assist Financial Institutions develop Islamic banking alternatives by sharing our
expertise, research and success stories. This function works under the guidance
of Shariah Supervisory Board which comprises of renowned Islamic Scholars
from both Pakistan and abroad.
Meezan Providence Certificate
Meezan Providence Certificate is a long-term investment certificate specially

designed to cater to the needs of corporate and business concerns for purposes
of investing their Provident, Pension and Gratuity Funds.
Meezan Providence Certificate is an ideal investment for Individuals, Sole-

Meezan Providence Certificate works on the principle of Mudarabah under which

65
received from the customers to a Deposit pool. Funds in the pool are invested
under Islamic modes of finance that include but are not restricted to Murabaha,
Sukuk and Ijarah.
Certificate of Islamic Investment
The Certificate of Islamic Investment (COII) is a Mudarabah-based deposit product through

which you can invest your savings for periods ranging from 3 months to 5 years and
earn Halal profit on a periodic basis.
The Certificates of Islamic Investment is an ideal investment for Individuals, Sole

Invest in Certificate of Islamic Investment!
Visit any of Meezan Bank’s branches, fill-in the Application Form and complete a few simple
formalities required for investing in Meezan Certificate of Islamic Investment. This is all you
need to do to enjoy our personalized banking services.
Meezan Amdan Certificate
Meezan Amdan Certificate is a Mudarabah-based long-term deposit product that

offers a high expected return to investors and is ideal for those individuals and
corporate clients who need a regular stream of monthly income.
Meezan Amdan Certificates work on the principle of Mudarabah under which the
the customers to a Deposit pool; funds from the pool are utilized to provide
financing to customers under Islamic modes that include, but are not restricted to
Murabaha, Ijarah, Istisna and Diminishing Musharakah.
The Meezan Amdan Certificate is available for Individuals and businesses

Invest in Meezan Amdan Certificate!
few simple formalities required for investing in Meezan Amdan Certificates. This
is all you need to do to enjoy our personalized banking services.
66
Monthly Mudarabah Certificate
The Riba-Free Monthly Mudarabah Certificate (MMC) is a short-term deposit

product which has been designed to give you expected monthly returns.
Monthly Mudarabah Certificates work on the principle of Mudarabah under which

The Monthly Mudarabah Certificate is available for Individuals and businesses

Invest in Monthly Mudarabah Certificate!
few simple formalities required for investing in Meezan Amdan Certificates. This
is all you need to do to enjoy our personalized banking services.
Dollar Mudarabah Certificate
The Dollar Mudarabah Certificate (DMC) is a deposit product through which you
can invest your US Dollars with Meezan Bank for periods ranging from 3 months
to 3 years and earn six-monthly or at maturity profit payments on your
investment.
Dollar Mudarabah Certificates (DMC) work on the principle of Mudarabah under

which the customer is an Investor (Rab-ul-Maal), and the Bank is the Manager
The Dollar Mudarabah Certificate is an ideal investment for Individuals, Sole

Invest in Dollar Mudarabah Certificate!
few simple formalities required for investing in Meezan Dollar Mudarabah
Certificate. This is all you need to do to enjoy our personalized banking services.
67
what is the process of monetary evaluation of
meezan bank ?
Ans. We generate our policy according to the regulations of state bank of Pakistan.
Some private policies we can not provide to our vistors.
68
what are the steps taken by bank in crucial
stages in depression?
1) By increasing the current asset

2) By increasing the savings
3) By converting the securities into cash
4) By recovering loans
Phase of business cycle of Meezan Bank?
Ans. Meezan bank is in growth stage in phase of business cycle. Because

growth rate of Mezeen bank is 61% annually .
Effect on Meezan bank performance of Globle

crises?
Ans. Global crisis effect mostly the conventional banking . very little or no effect
on Islamic banking . Meezan bank is still growing .
Effect on Meezan bank performance of

Insolvency of Lehman brother?
Ans. NO effect on meezan bank also no effect on Islamic banking .
Effect on Meezan bank performance of Dubai

financial crises?
Ans. No effect on Islamic banking as well as Meezan bank.

Pakistan financial crises?
Ans. Pakistan financial crisis affect badly every sector. But meezan
bank is still in smooth position because it has a lot of foreign investors.
69
In this stage meezan bank increase their savings and investment. So it
going to towards a positive direction.

Currency devaluation?
Ans . yes it effects the whole economy as well as meezan bank.
Effect on Meezan bank performance of political

instability?
Ans. No effect on Islamic banking as well as meezan bank .
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Findings
71
 Meezan bank is the interest free bank.
 It is providing 100% Islamic banking.
 After many monetary crices it is going still towards development.
 Its main moto is to satisfy the customer.
 It is having largest branch network in pakistan
72
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Recommendations
• As the number of complaints of misuse cards increased PIN-based credit cards

should be issued that would provided additional security.
• Financing to negative area residents should be made available and term & policies
should be designed accordingly to reduce the chances of defaults.
• Markup charged on consumer financing should be reduced to a substantial level

so the spread between bank loans and deposit could be reduced and customer
could easily pay off the loans
• Better returns should be provided on deposit accounts
• To facilitate the customers new products and services should be introduced

continuously
• SBP should continuously update its regulations according to need of people and
economic situations of the country
• Increase consumer awareness, give clear instructions and guidance
• Make customer friendly policies but it should also cover the risk factor
• Markup charge on loans & interest given on deposits should be regularly

monitored and guided by SBP
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BIBLIOGRAPHY
 Internet
 Consultation with the supervisor
 Interaction with respondents
 www.meezanbank.com
 http://www.meezanbank.com/Personalbanking.aspx
 http://www.meezanbank.com/BusinessBanking.aspx
 Annual report of Meezan banks
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In the name of ALLAH

Hazrat Ali (R.A)

Holy Prophet (PBUH)

We are indebted to many people for the successful completion of this

We are also grateful to Muddassar Ahmad Bhatti, who helped us in the

Section 1.0 Introduction

1.4 Scope & Limitation

• Consumer Banking Industry has a lot of potential to grow

1.6 Study Plan

2.0 Industry Overview from Secondary Data

2.1 Banking Industry of Pakistan

2.2 State Bank of Pakistan (Central Bank)

2.2.1 Departments of SBP

MEMBER'S OF PAKISTAN BANK ASSOCIATION (updated on 23-DEC-2010)

PUBLIC SECTOR BANKS

4. THE BANK OF PUNJAB

5. DUBAI ISLAMIC BANK PAKISTAN LIMITED

20. HABIB METROPOLITAN BANK LIMITED

8. PAK-CHINA INVESTMENT COMPANY LIMITED

4. ZARAI TARAQIATI BANK LIMITED

7. KASHF MICROFINANCE BANK LIMITED

2.4 Products / Services in Banking Sector

Some major services in banking industry of Pakistan;

SMS Alerts Term Accounts

NPL Ratio of Consumer Financing (SBP, 2006)

2.5.3 Personal Loans

2.5.4 Credit-Debit Cards

2.5.5 Deposit Accounts

2.5.6 Wealth Management

Noor Financial Investment Co, Kuwait 3,429 49

Paid up Capital 6,983 100

Al-Meezan Investment Bank is established with a mandate to pursue Islamic Banking.

The Shariah Supervisory Board is established at Al-Meezan Investment Bank led by

Being a socially responsible bank, Meezan Bank launched Meezan Labbaik,

Al Meezan Investment Management launched Meezan Sovereign Fund - an open-end

Meezan Bank Limited, a publicly listed company, was

At present we cater to a large number of multinational and local clients

Our dedicated Relationship Managers, supported by our Branch staff provide

One of the most common modes of finance employed by Islamic Banks,

Murabaha involves the purchase of a commodity by Meezan Bank on behalf of a

Istisna’a is a sale transaction where an asset is sold before it comes into

Meezan Current Account can be opened by Individuals, Sole-Proprietorships,

Rupee Saving Account

he Riba-free Rupee Saving Account is a basic banking account for every

On agreeing to become a Rupee Saving Account holder, the customer enters

Meezan Rupee Saving Account can be opened by Individuals, Sole-

Meezan Bachat Account

On agreeing to become a Meezan Bachat Account holder, the customer enters

Labbaik Saving Aasaan

Meezan Labbaik Saving Account can be opened by Individuals, Sole-

Meezan Business Plus

Meezan Business Plus is a Mudaraba-based account that allows you to conduct

Meezan Business Plus Account can be opened by Individuals and businesses

On agreeing to become a Meezan Business Plus Account holder, the customer

Dollar Saving Account

The Riba-free Dollar Savings Account is a Mudarabah-based savings account

The Meezan Dollar Saving Account can be opened by individuals and

Meezan Euro Savings Account

The Riba-free Euro Saving Account is a Mudarabah-based savings account that

On agreeing to become a Meezan Euro Savings Account holder, the customer

Meezan Euro Saving Account can be opened by Individuals, Sole-

Meezan Pound Savings Account