Money banking and Finance

ASSIGNMENT OF M B F
TOPIC: VISIT TO MEEZAN BANK

GROUP NAME: GOAL ACHIEVERS GROUP MEMBERS: 1. 2. 3. 4. 5. ASAD MUSHTAQ USAMA MASOOD ABDUL AZEEM NASIR HAMEED RAZA TAMOOR MOAZZAM BAIG 11407 11414 11465 11430 11429

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Interview with: Omer khan Designnation: Operational Manager Meezan Bank Meezan Bank Branch: Thokar niaz baig branch

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ACKNOWLEDGEMENT
We started working on this Assignment and thanks to Almighty ALLAH who blessed us and made us able to accomplish this task. Our sincere thanks to our parents who cooperated with us all the times and especially to our teacher Prof. Mr. Rafiq who gave us the spirit of independent research and enabled us to produce this document and also Superior University Lahore for their great help. Thanks particularly to all the developers and persons who provide information and share their knowledge through talks, writing book and uploading data on World Wide Web. For the development and production of this document itself, we feel a deep sense of gratitude.

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Table of Contents
Executive Summery...5 History: ......................................................................................................................................................... 6 Vision: ........................................................................................................................................................... 7 Mission: ........................................................................................................................................................ 7 Service Mission:............................................................................................................................................ 7 Role of State Bank: ....................................................................................................................................... 7 Statutory Liquidity Ratio (SLR): .............................................................................................................. 7 Cash Reserve ratio (CRR):........................................................................................................................ 7 Karachi Inter Bank offer Ratio( (KIBOR): ............................................................................................... 8 Customer Information Beaureu (CIB): ..................................................................................................... 8 Non Performing Loan (NPL): ................................................................................................................... 8 National Institute of Facilitation Technology (NIFT):.............................................................................. 8 Types of deposits: ......................................................................................................................................... 8 Current Account ................................................................................................................................ 8 Saving Account ................................................................................................................................. 9 Meezan Monthly Certificate (MMC) ................................................................................................ 9 Fixed Deposit Account...................................................................................................................... 9 Meezan Amdan Certificate (MAC)................................................................................................... 9

TYPES OF LOANS: ................................................................................................................................... 10 Short term Loan: ..................................................................................................................................... 10 Medium term Loan: ................................................................................................................................ 10 Long term Loan: ..................................................................................................................................... 10 Car leasing: ............................................................................................................................................. 11 Securities against loan: ............................................................................................................................... 11 Financial Services: ...................................................................................................................................... 11 Account Opening Process: .......................................................................................................................... 11 Other Services: ............................................................................................................................................ 12 CONCLUSION: .......................................................................................... Error! Bookmark not defined. RECOMMENDATIONS: ....................................................................................................................... 13

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EXECUTIVE SUMMARY

As this final project of MBF was assigned by our respected teacher Sir Rafiq , we visited Meezan bank and got information all about different banking features, policies, types of account, advancements of loan, and terms & conditions, these are all informations got very precisely. We hope this whole information is quiet comprehensive and would be helpful in the further studies about the banking system. We found Meezan bank is a real customer based bank which is having lot of customer oriented features. All the features, polices, & conditions are quiet active. its is done for the sake of security purposes that shows meezan is quiet extremely conscious in applying anti-money laundering measure

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History:
During 1997, Al-Meezan Investment Bank is established as the first Islamic bank of Pakistan. Mr. Irfan Siddiqui appointed as first and founding Chief Executive Officer. During 2002, the Shariah Supervisory Board is established at Al-Meezan Investment Bank led by Justice (Retd.) Muhammad Taqi Usmani as chairman. State Bank sets criteria for establishment of Islamic commercial banks in private sector and subsidiaries and stand-alone branches by existing commercial banks to conduct Islamic banking in the country. During 2003, A Musharaka-based Export Refinance Scheme has been designed by the State Bank in coordination with Meezan Bank Limited, in order to provide export finance to eligible exporters on the basis of Islamic modes of financing. Efforts are underway to develop Islamic money market instruments like Ijarah Sukuk to facilitate the banks in respect of liquidity and SLR management. Pakistans first Shariah-compliant Mortgage facility is launched by Meezan Bank. Approved by the Shariah Supervisory Board, the product enables home purchase, home construction, renovation, as well as replacement of any existing mortgage. Al Meezan Investment Management Limited (AMIM), a group company of Meezan Bank, introduces Meezan Islamic Fund (MIF). MIF is an open-end mutual fund that is Shariah compliant. Meezan Banks asset management arm, Al Meezan Investment Management Limited (AMIM), launches the Meezan Balance Fund (MBF). In March 2005, a dedicated Product Development & Shariah Compliance (PDSC) department was formally setup. The role of this research department is centralization of Product development activities, new product research, Islamic banking training and Shariah Compliance functions. The department works under the guidance & supervision of banks Shariah Advisor Dr. Muhammad Imran Usmani and the Shariah Supervisory Board of the Bank. PDSC now plays a central role at the bank by actively supporting new product development activities, refining existing products menu, preparing product policies & standardize agreements, imparting Islamic banking knowledge at various levels to new & existing staff members, corporate customers and general public, coordinating with banks Shariah Board, and conducting regular Shariah audits & reviews. During 2005, Meezan Bank launches the Meezan Islamic Institution Deposit Account (MIIDA), a product tailored for Islamic Financial Institutions (IFIs). The facility is the first of its kind in Pakistan, whereby Islamic Banks now have the opportunity to manage excess liquidity by maintaining a checking account with Meezan Bank specifically designed for this purpose. Meezan Bank becomes the first customer of Islamic Insurance (Takaful) by signing the first Memorandum of Understanding MoU with Pak Kuwait Takaful Company Limited (PKTCL).

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Vision:
Establish Islamic banking as banking of first choice to facilitate the implementation of an equitable economic system, providing a strong foundation for establishing a fair and just society for mankind

Mission:
To be a premier Islamic bank, offering a 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 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.

Role of State Bank:

Statutory Liquidity Ratio (SLR):
Meezan Banking is a pure Islamic banking system SLR is the percentage that every bank keopt for loans. Meezan bank also keep 20% of fully finance for the loans to customers.

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Cash Reserve ratio (CRR):

Cash reserve ratio Is a Percentage That every bank has to kept to State Bank of Pakistan and the percentage of every bank is different and the percentage for Meezan Bank is 5% of total deposit kept by Meezan Bank .

Karachi Inter Bank offer Ratio( (KIBOR):

Its a Institute and all the commercial banks are its members and this institute provide short term loans to the commercial banks and the percentage ratio kept for KIBOR by Meezan bank is 13.75%.

Customer Information Beaureu (CIB):

CIB customer Information beaureu is an institute that didnt provide any type of Financial services it just provides the information services.

Non Performing Loan (NPL):

Total Investment of Meezan Bank is 181 Billion In which 55 Billion is the total financing of Meezan Bank and the Non Performing Loan of Meezan Bank is Estimated 1.25 Billion.

National Institute of Facilitation Technology (NIFT):

National Institute Of Facilitation Technology Is a Service Institute it provides its services to all the Banks Such as Clearing of Cheques Of all the banks and its has some charges against its services. Meezan bank pays 7000 monthly against the services of NIFT.

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Types of deposits:
In Meezan Bank there are five types of Accounts.

Current Account
This type of account is often maintained by the business Current deposits are those deposits on which Bank offers no interest but it allows the account holders to withdraw their money at any time they want without giving any prior notice to the community, which requires large sums of money very often for their business transaction. Minimum balance of Rs. 10,000 Unlimited transactions Non-profit bearing Meezan Debit Card and Inter Branch Transaction System (IBTS) facilities Funds transfer to any bank through meezan online Banking

Saving Account
Saving deposits or PLS is those accounts on which Bank offers a lower rate of interest. After the Islamization of the Banking system in the country it has been given the name of PLS saving account. Minimum balance of Rs.20, 000 Unlimited transactions Meezan debit card

Meezan Monthly Certificate (MMC)

In Meezan Monthly Certificate is the types of Certificate on which profit is provided on monthly basis and the profit provides on thes certificates is currently 9.5%.

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Fixed Deposit Account

Fixed deposits are those which can be withdrawn only after the maturity period. In this type of deposits the Bank allows high rates of interest depending on the time period of deposits. The shorter the period of deposits, the less will be the interest. Two withdrawals free every month Profit calculated monthly Deposit ranges from Rs. 10, 000 to Rs. 1, 000, 000

Meezan Amdan Certificate (MAC)

Meezan Amdan Certificates are basically long term certificates. In these certificates there are two types. One is for 5 years and 6 months and the profit percentage is 11.05%. Second is for 7 years and the profit percentage is 13.02%.

TYPES OF LOANS:

Short term Loan Meddium term Loan Long term Loan Car leasing

Short term Loan:

Loans that are provided for short period of time at least for one year . (These type of loans typically carry fixed interest rates, and monthly or quarterly repayment schedules and include a set maturity date).

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Medium term Loan:

A loan where repayments are made over a period of between one and three or five years. (Usually running less than three years, these loans are generally repaid in monthly installments (sometimes with balloon payments) from a business's cash flow.)

Long term Loan:

A loan where repayments are made over several years, usually between five and ten years. (These loans are commonly set for more than three years. Most are between three and 10 years, and some run for as long as 20 years. Long-term loans are collateralized by a business's assets and typically require quarterly or monthly payments derived from profits or cash flow).

Car leasing:
Meezan Bank also provides the facility of Leasing cars to Customers. Customer has to pay 10 to 15% as Down Payment for Leasing a car. And the remaining amount in monthly Installments.

Securities against loan:

Every bank kept different types of securities against loans. But the Meezan Bank keeps these securities against loans. Pledge of cars against loans Mortgage of land or building against loan.

Financial Services:
Providing Loans Accepting Deposits Housing Finance Advisory Services

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Account Opening Process:

For Opening a account in Meezan Bank a customer has to fulfill these Requirements. Type of Account Type of Entity (Individual , sole proprietor , partnership , Company) Personal Information Personal Address Contact Details Employment Details Salary Business Details Business Address

Other Services:
Provide free cheque Book Free Statement of Account Pay utility bills on Customers behalf Issuance of Debit cards Issuance of ATM cards

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CONCLUSION:
Meezan is clearly the first choice of every one who believe in qualitative approach of banking an environment of highly responsible people. Bank is enjoying a healthy market share and taste of good status in terms of its operative features and customer support. Meezan is clearly the best bank operating in Pakistan. Personal loan is a distinguished feature of meezan experiencing a good reputation and reasonable mark up with respect to prevailing market mark up with assurance of satisfaction and support. Meezan has more customers as compare to other banks, if they given proper attention to every customer then in few years it will be the leading bank of the country.

RECOMMENDATIONS:
The number of employees should be increased in order to decrease the workload. There should be transport facility for the employees. The management should try to decrease job insecurity among the employees.

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