Meezan Bank

Table of Contents
Introduction .................................................................................... 4
Objectives ........................................................................................................................ 4
Overview of the Organization .......................................................................................... 5
Brief History of the Organization ................................................................................ 5
Nature of the Organization ............................................................................................... 9
The Meezan Team ........................................................................................................ 9
Business egments of the Ban! ................................................................................... 9
"##ON $N% M##ON ............................................................................................... &'
()"#*( M##ON ...................................................................................................... &&
O)+$N#,$T#ON$- T).*T.)( ............................................................................ &&
H$)#$H $%"#O)/ BO$)% .............................................................................. &4
BO$)% O0 %#)(*TO) ........................................................................................ &5
O)+$N#,$T#ON$- T).*T.)( O0 TH( B)$N*H ............................................ &1
ACCOUNTS DEPARTMENTS .................................................. 17
T).*T.)( $N% 0.N*T#ON .............................................................................. &2
OBJECTIVE: ............................................................................... 17
0.N*T#ON3 ............................................................................................................ &2
%$T$ *ONT)O--#N+3 ........................................................................................... &2
$s4ects of %ata *ontro55ing ..................................................................................... &6
)(7O)T#N+ $N% (87(N(3 ................................................................................ &6
B.%+(T$)/ 7()0O)M$N*(3 ............................................................................ &9
$**O.NT O7(N#N+ $T M((,$N B$N9 .............................................................. :;
Business $ccount ....................................................................................................... :;
o5e 4ro4rietor accounts3 .......................................................................................... :;
%ocument re<uire= ......................................................................................................... :;
7artnershi4 account3 .................................................................................................. :4
%ocument re<uire=3 ....................................................................................................... :4
-imite= com4any accounts3 ...................................................................................... :4
%ocument re<uire=3 ....................................................................................................... :4
7ersona5 $ccount ....................................................................................................... :5
*5ub ociety $ccount ................................................................................................ :1
$ccounts On the Basis Of *urrency .......................................................................... :2
).7(( *.))(NT $**O.NT ............................................................................... :6
%O--$) $"#N+ $**O.NT ................................................................................ ;:
9$)OB$)/ M.N$0$ $**O.NT ....................................................................... ;4
M((,$N B$*H$T $**O.NT .............................................................................. ;5
*()T#0#*$T( O0 #-$M#* #N"(TM(NT ............................................................. ;2
#nvest in *ertificate of #s5amic #nvestment ................................................................ ;2
M((,$N $M%$N *()T#0#*$T( ......................................................................... ;6
MONTH-/ M.%$)B$ *()T#0#*$T( ..................................................................... 4'
&
M((,$N 7)O"#%(N*( *()T#0#*$T( ................................................................... 4&
%O--$) M.%$)$B$H *()T#0#*$T( .................................................................. 4;
*$) #>$)$H?$.TO 0#N$N*( ................................................................................. 45
*ar #jarah a5so features .se= "ehic5es@ ..................................................................... 45
WORIN! CAPITA" #INANCE ............................................. 47
Murabaha ....................................................................................................................... 42
#stisnaAa .......................................................................................................................... 46
7)O>(*T 0#N$N*#N+B (87$N#ON $N% BM) .................................................... 49
%iminishing Mushara!ah ........................................................................................... 49
#jarah .............................................................................................................................. 5'
#-$M#* (87O)T )(0#N$N*( *H(M( .............................................................. 5&
-(TT() O0 +.$)$NT(( 0$*#-#T/ .................................................................. 5&
-etter of +uarantee 0aci5ity ....................................................................................... 5&
$%"#O)/ ()"#*( ................................................................................................ 5;
MON(/ T)$N0() .................................................................................................... 55
%O--$) M.%$)$B$H *()T#0#*$T( .................................................................. 51
%O--$) $"#N+ $**O.NT .................................................................................... 56
M((,$N B$N9 T)($.)/ ..................................................................................... 59
CREDIT ADMINISTRATION DEPARTMENT ...................... $%
C*ON()"$T#"( /(T %/N$M#* *)(%#T 7O-#*/D ........................................... 1:
The overa55 objective of the =e4artment is to 4rovi=e in=e4en=ent assurance
to branch management an= hea= office cre=it monitoring =ivision that 5en=ing
activities are 4ro4er5y contro55e= an= monitore=. ...................................................... 1:
*$) #>$)$H ................................................................................................................ 16
OBJECTIVE: ............................................................................... $&
T'E PRODUCT : ........................................................................ $&
7revious em45oyer ......................................................................................................... 2;
T)($.)/ $N% #N"(TM(NT ............................................................................... 25
Money Mar!et ............................................................................................................ 25
0oreign (Echange Mar!et .......................................................................................... 25
#nvestment .................................................................................................................. 25
+overnment ecurities ............................................................................................... 21
*usto=ianshi4 ............................................................................................................. 21
0inancia5 $=visory ervices ...................................................................................... 21
ON-#N( B$N9#N+ ..................................................................................................... 22
7HON( B$N9#N+ ....................................................................................................... 22
HOM( 0#N$N*( ......................................................................................................... 29
Buy /our Home ......................................................................................................... 29
Bui5= /our Home ....................................................................................................... 29
)enovation /our Home .............................................................................................. 6'
tart it Together .......................................................................................................... 6'
Transfer ...................................................................................................................... 6'
:
te4s To $rrange a Home .......................................................................................... 6&
#INANCIA" STATEMENT ANA"(SIS ................................... &)
B$-$N*( H((T ...................................................................................................... 64
HO)#,ONT$- $N$-/# O0 B$-$N*( H((T ............................................... 66
*OMM(NT ON HO)#,ONT$- $N$-/# O0 B$-$N*( H((T ................ 9:
"()T#*$- $N$-/# O0 B$-$N*( H((T ..................................................... 95
*OMM(NT ON "()T#*$- $N$-/# O0 B$-$N*( H((T ...................... 96
#N*OM( T$T(M(NT .............................................................................................. &'&
HO)#,ONT$- $N$-/# O0 #N*OM( T$T(M(NT ..................................... &'4
*OMM(NT ON HO)#,ONT$- $N$-/# O0 #N*OM( T$T(M(NT ....... &'2
"()T#*$- $N$-/# O0 #N*OM( TT(M(NT ........................................... &'9
*OMM(NT ON "()T#*$- $N$-/# O0 #N*OM( T$T(M(NT ............. &&:
RATIO ANA"(SIS .................................................................... 114
)eturn on (<uity .......................................................................................................... &&4
)eturn on $ssets ........................................................................................................... &&5
Net 4rea= Margin ....................................................................................................... &&1
Net Other #ncome Margin ............................................................................................ &&2
(arnings 4er hare ....................................................................................................... &&6
toc! %ivi=en= 7ercentage .......................................................................................... &:'
Mar!et 7rice 4er hare ................................................................................................. &:&
7rice (arning )atio ...................................................................................................... &::
Net 7rofit before TaE Margin ...................................................................................... &:;
Net 7rofit after TaE Margin .......................................................................................... &:4
O4erating (E4enses to #ncome .................................................................................... &:5
0inancing to %e4osit )atio .......................................................................................... &:1
Boo! "a5ue 4er hare ................................................................................................... &:2
SWOT ANA"(SIS ..................................................................... 1%*
T)(N+TH .............................................................................................................. &:9
F($9N(( ........................................................................................................... &;'
O77O)T.N#T#( ....................................................................................................... &;:
TH)($T .................................................................................................................... &;;
)(*OMM(N%$T#ON ............................................................................................. &;4
;
#nternshi4 is an integra5 4art of MB$ 4rogram. #t 4rovi=e= me the o44ortunity to =eve5o4
4ractica5 !now how of conce4ts which before that were on5y in theoretica5 form. My
internshi4 in Meezan Ban! -imite=B $b=a5i )oa=B BranchB Mu5tan was fu55 of 5earning
regar=ing various as4ect of ban!ing. The re4ort contains 4ractica5 !now5e=geB which # gaine=
=uring my internshi4.
Meezan Ban! 5imite= is one of the 5argest 4rivate ban!s in 7a!istanB an= it has bright future
forwar=. $55 information in this re4ort is base= on my observationB interviews an= 4ractica5
invo5vement in =ifferent tas!s =uring my internshi4 in Ban!.
#ntro=uction
O+,-cti.-/
4
Overview of the Organization
Brief History of the Organization
1*47
The ince4tion of 7a!istan as the first #s5amic )e4ub5ic create= in the name of #s5am.
1*&0
*## 4resents re4ort on the e5imination of Mar!u4 genuine5y consi=ere= to be the first
major com4rehensive wor! in the wor5= un=erta!en on #s5amic ban!ing an= finance.
1*&1
*ommercia5 ban!s transforme= their nomenc5ature stating a55 )u4ee aving $ccounts as
mar!u4?free. HoweverB foreign currency =e4osits in 7a!istan an= foreign 5oans continue=
as before.
1**1
7roce=ure a=o4te= by ban!s in &965 was =ec5are= un?#s5amic by the 0e=era5 hariat
*ourt G0*H. The +overnment an= some ban!sI%0#s ma=e a44ea5s to the hariat
$44e55ate Bench G$BH of the u4reme *ourt of 7a!istan.
1**7
$5?Meezan #nvestment Ban! is estab5ishe= with a man=ate to 4ursue #s5amic Ban!ing.
Mr. #rfan i==i<ui a44ointe= as first an= foun=ing *hief (Eecutive Officer.
5
1***
The hariat $44e55ate Bench of the u4reme *ourt of 7a!istan rejects the a44ea5s an=
=irects a55 5aws on mar!u4 ban!ing to cease. The government sets u4 a high 5eve5
commissionB tas! forces an= committees to institute an= 4romote #s5amic ban!ing on
4ara55e5 basis with conventiona5 system.
%001
The hariah u4ervisory Boar= is estab5ishe= at $5?Meezan #nvestment Ban! 5e= by
>ustice G)et=.H Muhamma= Ta<i .smani as chairman. tate Ban! of 7a!istan sets criteria
for estab5ishment of #s5amic commercia5 ban!s in 4rivate sector an= subsi=iaries an=
stan=?a5one branches by eEisting commercia5 ban!s to con=uct #s5amic ban!ing in the
country.
%00%
Meezan Ban! ac<uires the 7a!istan o4erations of ociete +enera5e an= concurrent5y $5
Meezan #nvestment Ban! converts itse5f into a fu55 f5e=ge= #s5amic commercia5 ban!. The
first #s5amic ban!ing 5icense is issue= to the Ban! an= it is rename= Meezan Ban!.
7resi=ent +enera5 7ervez Musharraf inaugurates the new #s5amic *ommercia5 Ban! at a
forma5 ceremony in 9arachi.
%00)
Meezan Ban! estab5ishes itse5f as the 4ioneer of #s5amic Ban!ing in 7a!istan an= <uic!5y
estab5ishes branches in a55 major cities of the country. $ wi=e range of 4ro=ucts are
=eve5o4e= an= 5aunche= conso5i=ating the Ban!As 4osition as the 4remier #s5amic Ban! of
1
the country $5 Meezan #nvestment Management -imite= G$M#MHB the asset management
arm of Meezan Ban!B intro=uces Meezan #s5amic 0un= GM#0HB the countryAs first o4en?
en= #s5amic Mutua5 0un=.
%004
The tate Ban! estab5ishes a =e=icate= #s5amic Ban!ing %e4artment G#B%H by merging
the #s5amic (conomics %ivision of the )esearch %e4artment with the #s5amic Ban!ing
%ivision of the Ban!ing 7o5icy %e4artment. $ hariah Boar= has been a44ointe= to
regu5ate an= a44rove gui=e5ines for the emerging #s5amic Ban!ing in=ustry. The
+overnment of 7a!istan awar=s the man=ate for =ebut of internationa5 u!u! GBon=H
offering for .% 5'' mi55ion. The offering is a success an= estab5ishes a benchmar! for
7a!istan. Meezan Ban! acts as the hariah tructuring $=visor for this historic
transaction.
%001
Meezan Ban! becomes the first customer of #s5amic #nsurance GTa!afu5H by signing the
first Memoran=um of .n=erstan=ing Mo. with 7a!?9uwait Ta!afu5 *om4any -imite=
G79T*-H. The signing of this Mo. has ushere= 7a!istan into a new era of #s5amic
#nsurance GTa!afu5H.
%00$
$ number of new =e=icate= #s5amic Ban!sB name5y Ban! #s5ami an= %ubai #s5amic Ban!B
commence o4erations in 7a!istan.Meezan continues its 5ea=ershi4 4osition in the in=ustry
by more than =oub5ing it branch networ! to a tota5 of 1: branches in :& citiesB c5ear5y
2
estab5ishing itse5f as the 5argest #s5amic Ban! of the country. Meezan Ban!B becomes the
first #s5amic ban! to intro=uce 6 am to 6 4m ban!ing at se5ecte= branches in 9arachi.
%007
Meezan Ban! o4ens u4 its &''th branch. Two new =e=icate= #s5amic Ban!s start
o4erations in 7a!istanB name5y (mirates +5oba5 #s5amic Ban! an= %awoo= #s5amic Ban!.
%00&
Fith &11 Branches Ginc5u=ing ;5 sub?branchesH in 4' cities across 7a!istanB Meezan
Ban! is c5ear5y 4ositione= as the 5ea=ing #s5amic Ban! in the country. For! starts on the
construction of Meezan Ban!As new Hea= Office bui5=ing.The financing an= investment
4ortfo5io of 5oca5 #s5amic ban!s reache= )s. &65 bi55ion in %ecember :''6 com4are= to
)s. &;2.1 bi55ion in %ecember :''2. Mar!et share in the overa55 ban!ing increase= to five
4er cent at en= %ecember :''6 com4are= with four 4er cent at en= %ecember :''2. Tota5
assets of #s5amic ban!ing reache= )s. :2&.& bi55ion in %ecember :''6 com4are= to )s.
:'5.: bi55ion in %ecember :''2.
6
Nature of the Organization
9
Meezan Ban! is a commercia5 ban! which receives =e4osits from the 4eo45e who have it s4are
an= invests it with those who are in nee= of them. #t has got the 5icense of commercia5 ban!ing
from the tate Ban! of 7a!istan an= is registere= un=er the 5egis5ation of Ban!ing *om4anies
Or=inance &91:. #t has =e=icate= itse5f to =o business of ban!ing accor=ing to is5amic ru5es an=
regu5ations an= is su4ervise= by a hariah Boar= who !ee4s an eye on the o4erations of the
ban! an= ensures that the same must be in accor=ance with the teachings of is5am an= there
must be no e5ement of )iba in it.
The Meezan Team
Meezan Ban! is manage= by a team of 4rofessiona5 ban!ers committe= to the cause of #s5amic
Ban!ing. This sing5e unifying factor un5eashes the tremen=ous 4ower of a =e=icate= an=
motivate= team committe= to fu5fi55ing the "ision an= Mission of this Ban!.
Business egments of the Ban!
*or4orate an= #nvestment Ban!ing
*ommercia5 an= M(
*onsumer 0inance
Treasury J 0inancia5 #nstitutions
$sset Management Gmanage= through a subsi=iary $5 Meezan #nvestment
Management -imite=.H
)etai5 Ban!ing is organize= in three )egions across 7a!istanB name5y outh )egionB *entra5
)egion an= North )egion.
"##ON $N% M##ON
VISION
(stab5ish #s5amic ban!ing as ban!ing of first choice to faci5itate the
im45ementation of an e<uitab5e economic systemB 4rovi=ing a strong foun=ation for
estab5ishing a fair an= just society for man!in=.
MISSION
To be a 4remier #s5amic ban!B offering a one?sto4 sho4 for innovative va5ue a==e=
4ro=ucts an= services to our customers within the boun=s of hariahB whi5e o4timizing
the sta!eho5=ers va5ue through an organizationa5 cu5ture base= on 5earningB fairnessB
res4ect for in=ivi=ua5 enter4rise an= 4erformance.
&'
()"#*( M##ON
To =eve5o4 a committe= service cu5ture which ensures the consistent =e5ivery of our
4ro=ucts an= services within the highest <ua5ity service 4arametersB 4romoting #s5amic
va5ues an= ensuring recognition an= a <ua5ity ban!ing eE4erience to our customers.
OR!ANI2ATIONA" STRUCTURE
SHARIAH SUPERVISORY BOARD BOARD OF DIRECTORS AUDIT
COMMITTEE
Shariah Advisor
Internal Audit
(Dr. Muhammad Imran Usmani)
(Mr. Zia-ul-Hasan)
Produt Develo!"ent #
Shariah Co"!liane PRESIDE$T # CEO
(Mr. Ahmed Ali Siddiqui) (Mr. Irfan Siddiqui)
Ris% Mana&e"ent
(Mr. Syed Ali Azhar Naqvi)
'e&al A((airs
(Mr. Atique Ahmed Siddiqui)
&&
Co"!liane
(Mr. Saleem afai)
Ad"inistration
(Mr. Muna!ar "izvi)
Branh E)!ansion
(Mr. Muna!ar "izvi)
PRESIDE$T # CEO
Mr. Irfan Siddiqui)
CHIEF OPERATI$* OFFICER
(Mr. Ariful Islam)
BRA$CH $ET+OR, BUSI$ESS SE*ME$T SUPPORT
SOUTH CORPORATE FI$A$CE
(Mr. A#dul $haffar Mem%n) (Mr. Zu#air Haider)(Mr. Sha##ir Hamza)
CE$TRA' I$VESTME$T BA$,I$* OPERATIO$
&:
(Mr. "iz!an Ata) (Mr. Syed Amir Ali) (Mr. Arshad
Ma&eed)
$ORTH COMMERCIA' BA$,I$* I-T
(M". Saleem 'han) (Mr. Sh%ai# (ureshi) (Mr. )aiz-
ul-"ehman)
SME HUMA$ RESOURCES
(Mr. Salim 'h%!a&a) (Mr. Irfan
Ali Hyder)
TREASURY # FI$A$CIA' TRAI$I$* I$STITUTIO$
(Mr. M. A#dullah Ahmed) (Mr. M. S%hail 'han)
CO$SUMER BA$,I$* SERVICE .UA'ITY
(Mr. Muhammad "aza) (Mr. Asadullah *h.)
A'TER$ATE DISTRIBUTIO$ CHA$$E'S
(Mr. +mer Salimullah)
MAR,ETI$*
GMr. M. ohai5 9hanH
&;
H$)#$H $%"#O)/ BO$)%
&4
The 5etter an= s4irit of #s5amic Ban!ing rest u4on abso5ute a=herence to the hariah. The
foun=ations of a strong hariah un=er4inning at Meezan Ban! were 5ai= from the
beginning. $ wor5= renowne= hariah u4ervisory Boar= an= a high5y <ua5ifie= an=
eE4erience= in house hariah $=visor are fun=amenta5 as4ects of the Ban!Ks core .7. The
4rimary ro5e of this boar= is to maintain an= further strengthen this commitment an= to
ensure strict hariah com45iance in a55 the Ban!Ks o4erations.
The members of the hariah u4ervisory Boar= of Meezan Ban! are #nternationa55y?
renowne= scho5arsB serving on the boar=s of many #s5amic ban!s o4erating in =ifferent
countries.
T3- 4-4+-r/ o5 t3- Bo6rd 6r-:
>ustice G)et=.H Muhamma= Ta<i .smani G*hairmanH
%r. $b=u5 attar $bu +hu==ah
hei!h (ssam M. #sha<
%r. Muhamma= #mran $shraf .smani G$=visorH
BO$)% O0 %#)(*TO)
T3- Bo6rd o5 Dir-ctor/ o5 M--76n B6n8 6r-:
H. (. hei!h (brahim Bin 9ha5ifa $5?9ha5ifa G*hairmanH
GMinister of HousingB Ministry of HousingB 9ing=om of BahrainH
Naser $b=u5 Mohsen $5?Marri G"ice *hairmanH
>assar %a!hee5 $5?>assar
)ana $hme= Humayun
Mohamme= $zzaroog )ajab
$hme= $b=u5 )ahim Mohame=
Nawa5 $hme=
$5aa $. $5?arawi
#rfan i==i<ui G7resi=ent J *hief (Eecutive OfficerH
$rifu5 #s5am G*hief O4erating OfficerH
&5
O)+$N#,$T#ON$- T).*T.)( O0 TH( B)$N*H
Mr. $sim a5eem
)egiona5 Manager I Branch Manager
Mr. Navee= Bari
$ssistant Branch Manager
O4erations %e4artment *$% %e4artment M(+. %e4artment *onsumer
%e4artment
Mr. Navee= Bari Mr. ,ahi= Miss. 0aiza Mr. )izwan
GManagerH GManagerH GManagerH GManagerH
#T I H) %e4artment *or4orate %e4artment
Mian Fasf $5i Babar Tari< Mehmoo= $nsari
%e4artment Hea= %e4artment Hea=
&1
$**O.NT %(7$)TM(NT
T).*T.)( $N% 0.N*T#ON
$ccounts =e4artment in the ban! wor!s as an interna5 au=it =e4artment of the
organization. $55 the vouchers 4re4are= an= a55 the che<ues that are 4rocesse= are fina55y
come to the accounts =e4artment where these are sorte= an= summarize=.
OBJECTIVE:
The objective of this =e4artment is to con=uct the interna5 au=it an= to 4rovi=e eEact
information of =ai5y transactions.
0.N*T#ON3
Three main functions of accounts =e4artment are as fo55ow3
%ata contro55ing
)e4orting an= eE4ense
Bu=getary 4erformance review an= ana5ysis
%$T$ *ONT)O--#N+3
&2
The main features of =ata contro55ing are3
To match 4hysica5 =ata with com4uter generate= =ata
To chec! authorization contro5 of transactions
#s the =ata 4ro4erty authorize=
To !ee4 a trac! of recor= of a55 transactions G4hysica5 =ataH for future evi=ence
To arrange the =ata in some or=er to faci5itate or to ease the 4rocess of =ata
)etrieva5
$s4ects of %ata *ontro55ing
&3 *ustomer activity
:3 +enera5 5e=ger
%ua5 effect of transactions is state= 5i!e =ebit cre=it.
0irst5y receiving of voucher then main sorting is =one which is =one on the basis of main
numbering.
)(7O)T#N+ $N% (87(N(3
The major re4orts generate= by this section are3
&6
%ai5y branch 4osition
%ai5y 4osition of =e4osits an= a=vances
%ai5y M# re4ort Gmanagement information systemH
%ai5y foreign currency account re4ort
%ai5y fun= ru4ee 4osition re4ort
tatement of affairs
Fee!5y re4orts are of foreign eEchange an= then month5y an= <uarter5y re4orts are ma=e.
%ai5y branch 4osition of ban! is not faEe= an= is !e4t with the ban!. %ai5y foreign
currency re4ort is faEe= to treasury. The ban! =ea5 in three foreign currencies that are3
. =o55arB (.)O an= +B7 Gstan=s for +reat Britain 7oun=H. %ai5y fun= ru4ee 4osition is
faEe= to the state ban!. tatement of affairs is not faEe=.
B.%+(T$)/ 7()0O)M$N*(3
This section inc5u=es the =isbursementsB which are as fo55ows3
Mod-/ o5 r-4itt6nc-/3
%eman= =raft %.%
Te5egra4hic transfer T.T
7ay or=er s5i4
&9
They are a5so ca55e= B7+ bi55s 4ayab5e genera5.
D-46nd dr65t is for outstation 4ur4ose .#t secures the 4ayment because at firstB the cash
is =e4osite= in the ban! an= then =raft is ma=e.
%eman= =raft is having four copiesB which are !e4t as fo55ow3
One is !e4t with the customer. G!r69 co:9H
One with ban! ;:3oto co:9H
One with the hea= office ;:in8H
One with the entity being finance= ;9-<<o=H
P69 ord-r is for 5oca5 transfer of money that is within the city.
Two other ways of =isbursement in the ban! are
7ay s5i4
*ash 4ayment voucher
Pay slip is use= when the ban! has to 4ay 5ess then )s.5'''
Cash payment voucher is use= by the ban! when it has to 4ay more than )s.5'''.
#n the accounts section # came to !now about some other terms 5i!e
:'
7rovision
)u4ee trave5ers che<ue
%e4osit certificate
#nter branch cre=it a=vice
#nter branch =ebit a=vice
Outwar= bi55s for co55ection
#nwar= bi55s for co55ection
ociety for wor5= wi=e transactions
Term finance
7rovisions are the amount !e4t se4arate5y to be =ebite= for the eE4enses of ban!.
%e4osit certificates are being taEe= as
im45e =e4osit???????????;L taE
ervices =e4osit??????????5L taE
:&
::
$**O.NT O7(N#N+ $T M((,$N B$N9
This accounts at Meezan Ban! are =ivi=e= into three categories. These are as fo55ows.
Business $ccount
7ersona5 $ccount
*5ub ociety $ccount
Business $ccount
This account is re5ate= to the business community. This account is a5so further sub=ivi=e=
into three categories.
o5e 4ro4rietor account
7artnershi4 account
-imite= *om4any account
o5e 4ro4rietor accounts:
These account are the account o4ene= by businessesB which are owne= by sing5e 4ersons.
The fo55owing =ocuments are re<uire= to o4en the account.
Document required
#ntro=ucer of account who is a5rea=y account ho5=er of the ban!
*o4y of N#*
:;
)e<uest on 5etterhea= of the com4any
(very signature must be stam4e= with com4any stam4
%ec5aration of so5e 4ro4rietorshi4
7artnershi4 account:
These are the accounts s4ecifica55y o4ene= for the 4artnershi4 firms. The =ocuments
re<uire= for this ty4e of account are as fo55ows.
%ocument re<uire=3
*o4y of N#* of the entire 4artners
)e<uest on 5etterhea= of the firm
(very signature must be stam4e= with com4any stam4
7artner shi4 =ee=
7artnershi4 man=ate
-imite= com4any accounts3

This account is re5ate= to 5imite= com4anies either 4ub5ic 5imite= or 4rivate 5imite=. The
=ocuments re<uire= to o4en this ty4e of account are as fo55ows3
%ocument re<uire=3
:4
*o4y of N#* of a55 the %irectors
)e<uest on 5etterhea= of the com4any
*o4y of certificate of #ncor4oration
Memoran=um an= $rtic5e of $ssociation
-ist of %irector
*o4y of Boar= )eso5ution M4rescribe formatN
*ertificate of *ommencement of Business.
-atest co4y of 0orm $?:9
7ower of $ttorneyIMan=ate Mif re<uire=N
7ersona5 $ccount
The accounts re5ate= to 4ersons other than com4anie= an= 4artnershi4 firms are ca55e=
4ersona5 accounts. These are further sub=ivi=e= into three categories3
7ersona5 account
>oint account
P-r/on6< 6ccount3
7ersona5 account is own by on5y one 4erson an= not more then this. This account can be
current or saving =e4en=ing u4on the wi55 of the customer.
Docu4-nt/ r->uir-d
#ntro=uction of nay account ho5=er of B$- or any other ban!
:5
*o4y of N#*
Joint 6ccount:
>oint accounts are those accounts that are owne= by : or more 4ersons. This account may
a5so be either saving or current =e4en=ing on the customerAs wi55.
Docu4-nt/ r->uir-d:
#ntro=uction of nay account ho5=er of B$- or any other ban!
*o4y of N#* of a55 the member of joint account
*5ub ociety $ccount
The account o4ene= by any N+O or any non?4rofit firm fa55s in this category. 0or
o4ening of such ty4e of account the ban! has to get 4ermission from the hea= office. #f
hea= office gives 4ermissionB the ban! o4ens this account other wise refuse to =o so.
Docu4-nt/ r->uir-d:
*o4y of ru5es
*ertificate co4y of reso5ution M4rescribe= formatN
:1
$ccounts On the Basis Of *urrency
This account is a5so =ivi=e= into two categories. These are as fo55ows3
"oc6< Curr-nc9 6ccount
#or-i?n Curr-nc9 Account
"oc6< Curr-nc9 6ccount:
The account =ea5ing with the 5oca5 currency is ca55e= 5oca5 currency account.
#or-i?n Curr-nc9 Account3 The account =ea5ing with the foreign currency is ca55e=
foreign currency account. This account is further sub=ivi=e= into fo55owing.
.%
+B7
(uro
>7/
:2
).7(( *.))(NT $**O.NT
;RIBA #REE@
Meezan Ban! is offering )iba?0ree *urrent $ccountB a f5eEib5e )u4ee base= account that
is i=ea5 for in=ivi=ua5s an= businesses 5oo!ing for hariah com45iant ban!ing an=
4rofessiona5ism both un=er one roof.
The Meezan Ban! *urrent $ccount is a com4rehensive Halal metho= of ac<uiring a
secure an= easi5y maintainab5e )iba 0ree ban! account.
Bun=5e= with :4I2 an= s4ecia5 ban!ing servicesB the Meezan Ban! *urrent $ccount is an
innovative va5ue a==e= account which 4rovi=es customers both ease of uti5ity an=
unmatche= service <ua5ity.
-9 5-6tur-/ o5 t3- Ri+6 A#r-- Curr-nt Account
0ree On5ine Ban!ing services at a55 Meezan Ban! branches nationwi=e
#nstant access to fun=s at any on5ine branch
No restriction on with=rawa5s or number of transactions
Ban! ba5ance certificates J =u45icate statements of account
to4 7ayment J Ho5= Mai5 instructions
:4I2 *ar= your $TM J %ebit *ar= in one
:4I2 *a55 *enter with com45ete Te5e?ban!ing services
:6
7ersona5 financia5 consu5tancy services
4ecia5ize= 6 to 6 Ban!ing at se5ecte= branches
:9
RUPEE SAVIN! ACCOUNT
$ uni<ue ban! account that offers the o44ortunity to earn Ha5a5 4rofitsB whi5e enjoying a
range of a==e= benefits. #t can be o4ene= with a minimum amount of on5y )s.&''''. The
4rofit on this account is ca5cu5ate= an= 4ai= on a month5y basisB an= comes with a variety
of free benefitsB no restrictions on transactionsB 4riority ban!ing an= more.
Minimum amount re<uire= to o4en account O )s.&'B'''
)iba 0ree *O## Ho5=ers may o4en accounts without any minimum ba5ance
re<uirements
)iba 0ree )u4ee aving $ccount wor!s un=er the 4rinci45es of Mu=arabah an= is strict5y
in conformity with the ru5es of #s5amic hariah. 7rofit ca5cu5ation an= a55 ban!ing
transactions are in strict a=herence to the #s5amic hariahB monitore= by our hariah
$=visor an= the hariah u4ervisory Boar=
-9 5-6tur-/
$4art from first c5ass service an= 4ersona5ize= attention that our customers get when they
ban! with usB we offer the fo55owing a==itiona5 conveniences3
#nstant access to fun=s at any on5ine branch.
No restriction on with=rawa5s or number of transactions
;'
Ban! ba5ance certificates J =u45icate statements of account
to4 7ayment J Ho5= Mai5 instructions
;&
%O--$) $"#N+ $**O.NT
Meezan Ban! is 45ease= to offer )iba?0ree %o55ar aving $ccountB a foreign?currency
base= investment o44ortunity that is set u4 on the 4rinci45es of hariah an= as a resu5t is
free from the e5ement of mar!u4.
Fith a minimum of on5y P&'' you can o4en a %o55ar aving $ccount with us un=er a
Mu=arabah arrangement that is strict5y in conformity with the 4rinci45es of #s5amic
hariah. The return earne= on the Mu=arabah 4oo5 is ca5cu5ate= every month an= the
4rofit ratio for a55 investors is =ec5are= at the beginning of the month. #f you maintain a
minimum average month5y ba5ance of P 5''B you sha55 be e5igib5e to receive 4rofits that
sha55 be =isburse= to you every month.
Addition6< #-6tur-/
ban! with usB we offer the fo55owing a==itiona5 conveniences to our customers3
7ersona5ize= che<ue boo!s
No restriction on with=rawa5s or number of transactions.
Month5y 4rofit 4ayment
Ta!ing sto4 4ayment instructions
Ta!ing ho5= mai5 instructions
;:
#ssuance of =u45icate statement of account
;;
9$)OB$)/ M.N$0$ $**O.NT
9arobari Munafa is a savings account s4ecifica55y tai5ore= for 5arge *or4orate or +ovt.
contro55e= entities. #t a55ows customers to earn higher returns on sur45us cash ba5ances. #t
has no 4reset transaction 5imits an= comes with a variety of free 4ac!age= benefits.
-9 #-6tur-/
7rofit wi55 be ca5cu5ate= on a %ai5y 7ro=uct Basis
Minimum ba5ance re<uirement for account o4ening is )s. & Mi55ion
No restriction on =e4osits an= with=rawa5s
0ree faci5ities3 che<ueboo!s an= 4ayor=ers
%e=icate= account I re5ationshi4 manager
The 9arobari Munafa $ccount wor!s un=er the 4rinci45es of Mu=arabah an= is strict5y in
conformity with the ru5es of #s5amic hariah. 7rofit ca5cu5ation an= a55 ban!ing
$=visor an= the hariah u4ervisory Boar=.
;4
M((,$N B$*H$T $**O.NT
Meezan Bachat $ccount is a uni<ue saving account that 4rovi=es high month5y returns
with the f5eEibi5ity to with=raw savings if nee=e=. Thus Meezan Bachat $ccount offers a
higher eE4ecte= rate of return with the convenience of a savings account.
Fith a Meezan Bachat $ccountB you are entit5e= for a higher the 4rofit with a higher
account ba5ance. /ou receive 4rofit even if your ba5ance fa55s be5ow )s. :5B'''I? in any
one month. 7rofit is cre=ite= to your account every month an= is ca5cu5ate= with
reference to the minimum ba5ance maintaine= in the account =uring the 4rece=ing month.
The )iba?0ree Meezan Bachat $ccount wor!s un=er the 4rinci45es of Mu=arabah an= is
strict5y in conformity with the ru5es of #s5amic hariah. 7rofit ca5cu5ation an= a55 ban!ing
-9 #-6tur-/
Highest eE4ecte= rate of return
)iba?free 4rofit 4ai= every month
Minimum ba5ance for account o4ening is just )s.:5B'''I?
MaEimum ba5ance 5imit for getting highest 4rofit rate is )s. &B'''B'''I?
;5
Faiver of a445ication fee for *ar #jarah J (asy Home for accounts with
minimum ba5ance of )s. 5''B'''
0ree ban! ba5ance certificates.
:4I2 #nternet Ban!ing Q free an= instant access to your accountGsH anytime J
anywhere
7ersona5 financia5 consu5tancy services.
;1
*()T#0#*$T( O0 #-$M#* #N"(TM(NT
The )iba 0ree *ertificate of #s5amic #nvestment *ertificate is a hariah com4atib5e
investment certificate with a minimum investment of )s. 5'B''' an= tenures from ;
months to 5 years. 7rofit on investment may be earne= on the fo55owing basis3
Month5y 4rofit on &B :B ; an= 5 years GMinimum #nvestment )s. :''B'''H
Ruarter5y 4rofit on &B :B ; an= 5 years
$t maturity 4rofit 4ayment for a55 tenures
Fith=raw your investment any time =uring the course of your investment.
G7rofit sha55 be 4ai= on5y after com45etion of one month of investmentH
)iba?0ree *ertificate of #s5amic #nvestment G*O##H wor!s un=er the 4rinci45es of
Mu=arabah an= is strict5y in conformity with the ru5es of #s5amic hariah. 7rofit
ca5cu5ation an= a55 ban!ing transactions are in strict a=herence to the #s5amic hariahB
monitore= by our hariah $=visor an= the hariah u4ervisory Boar=.
#nvest in *ertificate of #s5amic #nvestment
)iba?0ree *O## is avai5ab5e at a55 branches of Meezan Ban! -t=. Fe invite you to visit
any of our branches to eE4erience the comfort of our 4ersona5ize= service. To ma!e an
investment the ban! re<uires customers to maintain either a current or a saving account
;2
with Meezan Ban!. #n or=er to o4en an accountB fi55 in the $ccount O4ening 0ormB bring
in the re<uire= =ocumentsB an= get intro=uce= by an eEisting ban!er.
Addition6< #-6tur-/
(njoy a range of va5uab5e features inc5u=ing3
High an= very com4etitive returns
-ong?term security ensure=
7re?mature with=rawa5 o4tions avai5ab5e
0ree On5ine Ban!ing services at any of our branches
M((,$N $M%$N *()T#0#*$T(
The )iba?0ree Meezan $am=an *ertificate GM$*H is a 5ong?term =e4osit certificate with
an eEce4tiona55y high month5y 4rofit =esigne= es4ecia55y for those in=ivi=ua5s an=
cor4orations who are in nee= of regu5ar stream of month5y income. M$* is a month5y
income Gmahana aam=aniH certificate with a variety of free 4ac!age= benefits.
For!ing un=er the 4rinci45es of Mu=arabahB the Meezan $am=an *ertificate an= is
strict5y in conformity with the ru5es of #s5amic hariah. 7rofit ca5cu5ation an= a55 ban!ing
;6
-9 #-6tur-/
(nsure= -ong?term security
Minimum investment amount3 )s. &''B'''I?
4ecia5 attraction for Fi=ows an= enior citizens with minimum investment
of 79) 5'B'''I?
$vai5ab5e tenures of 5S years an= 2 years
7rofit 4ayment on month5y basis.
7re?mature with=rawa5 o4tions avai5ab5e.
0ree che<ue boo!
0ree $TM with=rawa5s on investment of )s.5''B'''I? an= above G 5 4er
monthH
0ree #nternet ban!ing faci5ity
;9
MONTH-/ M.%$)B$ *()T#0#*$T(
)iba 0ree Month5y Mu=arabah *ertificates is a f5eEib5e ru4ee base= investment which
has been =esigne= to give you a month5y return. The minimum investment re<uire= is
on5y )s. &''B''' an= you receive 4rofit for each com45ete month of investment with the
Ban!.
For!ing un=er the 4rinci45es of Mu=arabah an= in strict conformity with the ru5es of
#s5amic hariahB the 7rofit ca5cu5ation of Month5y Mu=arabah *ertificates an= a55 other
ban!ing transactions are in strict a=herence to the #s5amic hariahB monitore= by our
hariah $=visor an= the hariah u4ervisory Boar=.
T3- =-i?3t6?-/ u/-d 5or :ro5it c6<cu<6tion o5 t3- Mont3<9 Mud6r6+63 C-rti5ic6t-
6r- in t3- 5o<<o=in? ti-r/:
)s. &''9 u4 to )s. 4.99 Mn
)s. 5.'' Mn u4 to )s. 9.99 Mn
)s. &' Mn u4 to )s. 49.99 Mn
)s. 5' Mn u4 to )s. 99.99 Mn
)s. &'' Mn u4 to )s. 499.99 Mn
)s. 5'' Mn J above
4'
Addition6< #-6tur-/
%uring your re5ationshi4 with usB you wou5= be entit5e= to receive the fo55owing
a==itiona5 benefits.
$ &''L ha5a5 investment in strict com45iance with hariah
Month5y 4rofit 4ayment to your current or saving account with us
Ban! ba5ance certificates
0ree On5ine Ban!ing services at a55 Meezan Ban! branches
4ecia5ize= 6 to 6 Ban!ing an= -a=ies Ban!ing at se5ecte= branches
M((,$N 7)O"#%(N*( *()T#0#*$T(
Meezan 7rovi=ence *ertificate is a 5ong?term investment certificate s4ecia55y =esigne= to
cater to the nee=s of cor4orate an= business concerns for 4ur4oses of investing their
7rovi=entB 7ension an= +ratuity 0un=s.
$s any 4ru=ent investorB your main concerns wou5= be tota5 security a5ong with the best
returns 4ossib5eB es4ecia55y as these fun=s are a trust from your em45oyees an= one that
bears an im4ortant res4onsibi5ity.
4&
Meezan 7rovi=ence rests on the we55 !nown an= so5i= financia5 strength of Meezan Ban!B
which has a strong an= cre=ib5e ba5ance sheet with eEce55ent o4erating 4rofitabi5ityB
inc5u=ing a ca4ita5 a=e<uacy ratio that has 45ace= the Ban! at the to4 of the in=ustryB a
5ong?term entity rating of $TB an= a short?term entity rating of $&. 0urthermoreB our
ster5ing trac! recor= shows consistent5y beneficia5 an= high5y com4etitive returns for our
broa= range of investors.
0ina55yB comes the benefit of tru5y Ha5a5 returnsB a benefit you may not have ha= the
o44ortunity to enjoy before an= one that you can now 4ass on to your em45oyeesB many
of whom wou5= be gratefu5 for such an o44ortunity.
)iba?0ree Meezan 7rovi=ence *ertificate GM7*H wor!s un=er the wor!s un=er the
4rinci45es of Mu=arabah an= is strict5y in conformity with the ru5es of #s5amic hariah.
7rofit ca5cu5ation an= a55 ban!ing transactions are in strict a=herence to the #s5amic
hariahB monitore= by our hariah $=visor an= the hariah u4ervisory Boar=.
-9 #-6tur-/
$ &''L ha5a5 investment in strict com45iance with hariah
High )eturns
-ong?term security ensure=
Minimum investment amount3 79) &B'''B'''
4:
$vai5ab5e tenures of :B ;B 5 an= 2 years
%O--$) M.%$)$B$H *()T#0#*$T(
The )iba 0ree %o55ar Mu=arabah *ertificate is a f5eEib5e =o55ar base= investment which
has been =esigne= un=er the 4rinci45es of Mu=arabah an= is strict5y in conformity with
the ru5es of #s5amic hariah.
The *ertificate wor!s un=er the 4rinci45es of Mu=arabah an= is strict5y in conformity
with the ru5es of #s5amic hariah. 7rofit ca5cu5ation an= a55 ban!ing transactions are in
strict a=herence to the #s5amic hariahB monitore= by our hariah $=visor an= the hariah
u4ervisory Boar=.
-9 #-6tur-/
iE month5y 4rofit 4ayment to your current or saving account with us
-ong?term security ensure=. Minimum investment amount3 .% &'B'''I?
4;
$vai5ab5e tenures of ; monthsB 1 monthsB & yearB an= ; years
44
*$) #>$)$H?$.TO 0#N$N*(
C6r I,6r63B P68i/t6nC/ #ir/t I/<64ic C6r #in6ncin?
$s a ste4 towar=s Meezan Ban!As mission to 4rovi=e a one?sto4 sho4 for innovative
va5ue a==e= hariah com45iant 4ro=uctsB Meezan Ban!As *ar #jarah unit 4rovi=es a car
financingB base= on the 4rinci45es of #jarah an= is free of the e5ement of mar!u4.
*ar #jarah is 7a!istanAs first Mar!u4 0ree car financing base= on the #s5amic financing
mo=e of #jarah G#s5amic 5easingH. This 4ro=uct is i=ea5 for in=ivi=ua5s 5oo!ing for car
financing whi5e avoi=ing an mar!u4?base= transaction.
Meezan Ban!A *ar #jarah is a car renta5 agreementB un=er which the Ban! 4urchases the
car an= rents it out to the customer for a 4erio= of ; to 5 yearsB agree= at the time of the
contract. .4on com45etion of the 5ease 4erio= the customer gets ownershi4 of the car
against his initia5 security =e4osit.
*ar #jarah a5so features .se= "ehic5es@
#n a==ition to our 5easing of new carsB Meezan Ban! a5so 4rovi=es the uni<ue o44ortunity
of 5easing secon= han=B both 5oca55y assemb5e= an= im4orte= vehic5es. This feature is
s4ecifica55y =esigne= as a high5y economica5 o4tion. The .se= *ar #jarah faci5ity is ma=e
avai5ab5e at a minimum?security =e4osit as 5ow as :'L. 0inancing of use= cars are
subject to a se5ection criteria.
S36ri63 Co4:<i6nc-
45
*ar #jarahB =esigne= un=er the su4ervision of Meezan Ban!s hariah u4ervisory Boar=B
is uni<ue to car 5easing faci5ities 4rovi=e= by other ban!s.
-9 #-6tur-/ o5 C6r I,6r63
-ow month5y renta5
)enta5 4ai= after =e5iveryB not in a=vance=
0astest 4rocessing an= =e5ivery
Trac!er o4tion avai5ab5e
Minimum security =e4osit as 5ow as &'L
$55 newB use=B 5oca5B im4orte= an= 5uEury vehic5es can be finance=
41
FO)9#N+ *$7#T$- 0#N$N*(
Wor8in? C6:it6< #in6nc- So<ution/
;5or /3ort t-r4 5in6ncin? r->uir-4-nt/@
7arts of the wi=e range of hariah com45aint so5utions for the customers are
Murabaha an= #stisnaAaB =esigne= to meet wor!ing ca4ita5 re<uirements. 0or eEam45eB if
you nee= finance for 4urchasing raw materia5s for your in=ustry or are tra=ing in goo=s
then you cou5= use Mu=arabah or #stisnaAa to meet your financia5 nee=s.
Mur6+636
One of the most common mo=es of finance em45oye= by #s5amic Ban!sB Murabaha is
base= on the eEact re<uirements of each customer. #t can be =efine= as a sa5es transaction
where Meezan Ban! 4urchases the commo=ity an= se55s it after a==ing an agree= 4rofit.
ThusB it is not a 5oan given on mar!u4 ? it the sa5e of a commo=ity on a =eferre= 4rice.
Hence Murabaha invo5ves the 4urchase of a commo=ity by Meezan Ban! on beha5f of a
customer an= the subse<uent resa5e to the customer on cost?45us?4rofit basis. The cost
an= 4rofit margin to the ban! is eE4ress5y =isc5ose= to the customer.
im45y 4utB rather than a=vancing money to the customerB Meezan Ban! buys the
commo=ity from a thir= 4arty an= se55s it to the customer at an agree= 4riceB which
inc5u=es an e5ement of 4rofit.
42
So =36t i/ t3- di55-r-nc- +-t=--n Mur6+636 6nd 6 S6<-D
$ sim45e sa5e in $rabic is ca55e= Musawamah ? a sa5e that =oes not invo5ve =isc5osing or
referring to the cost of goo=s so5=. HoweverB when the cost 4rice is =isc5ose= to the c5ientB
it is ca55e= Murabaha.
I/ti/n6C6
#stisnaAa is a sa5e transaction where a commo=ity is transacte= before it comes into
eEistence. #t is an or=er to manufacture a s4ecific commo=ity for the 4urchaser. The
manufacturer Gour customerH uses its own materia5 to manufacture the re<uire= goo=s. #n
#stisnaAaB 4rice is fiEe= with the consent of a55 4arties invo5ve=. imi5ar5y a55 other
necessary s4ecifications of the finishe= 4ro=uct are agree= beforehan=.
I/ti/n6C 6/ 6 4od- o5 5in6ncin?
#stisna 0inance is use= to cater for the wor!ing ca4ita5 re<uirements of a business
invo5ve= in the manufacturing of goo=s. #t is i=ea55y suite= for eE4orters an=
manufacturers who have eE4ort or=ers in the sha4e of ightI.sance -etter of *re=itI
ight (E4ort *ontract %I7I .sance (E4ort *ontract %I$.
46
7)O>(*T 0#N$N*#N+B (87$N#ON $N% BM)
Pro,-ct #in6ncin?B EE:6n/ion or BMR R->uir-4-nt So<ution/
;#or 4-diu4 6nd <on? t-r4 5in6ncin? r->uir-4-nt/@
Two of the most common5y use= #s5amic financing so5utions avai5e= by businesses to=ayB
%iminishing Mushara!ah an= #jarah are i=ea5 for eE4ansion of businessesB BM)
re<uirements or other me=ium to 5ong term financing re<uirements.
%iminishing Mushara!ah
.sing this financing mo=e5B Meezan Ban! an= the customer 4artici4ate in the joint
ownershi4 of an asset. The asset is =ivi=e= into a number of units an= the customer
4erio=ica55y 4urchases these units from the ban! over a s4ecifie= 4erio=. Over timeB the
customer 4urchases a55 units owne= by the ban!B ma!ing him or her so5e owner of the
asset or the commercia5 enter4rise.
%iminishing Mushara!ah is most common5y use= for the financing of fiEe= assetsB
4rojectsB homes an= automobi5es.
49
I,6r63
#n contrast to =iminishing mushara!ahB this mo=e of financing is base= on the 4rovision
of the re<uire= tangib5e assetsB such as 4ro4ertyB machineryB etcB on renta5 for an agree=
4erio= of time. The conce4t is simi5ar to C5easingDB which is common in conventiona5
ban!ing. However there are some s4ecific 4rohibitions which ren=er conventiona5 5easing
to be forbi==en un=er hariah.
#jarah is common5y use= for 5ong an= me=ium term fiEe= asset financingB 4roject
financing an= for retai5 4ro=ucts such as homes an= automobi5es.
5'
IS"AMIC EFPORT RE#INANCE SC'EME
I/<64ic EE:ort R-5in6nc- #6ci<it9
The 5aunch of this 4ro=uct ma=e Meezan Ban! the first #s5amic ban! in 7a!istan
to offer )efinance faci5ities with com45ete com45iance to hariah. This 4ro=uct
4rovi=es for a55 the uni<ue re<uirements of eE4orters an= is avai5ab5e in both 7art?
# an= 7art?## as 4er the origina5 (E4ort )efinance cheme of the tate Ban! of
7a!istan.
-(TT() O0 +.$)$NT(( 0$*#-#T/
$ com45ete range of 4ro=ucts an= services for im4orters an= eE4orters are avai5ab5e.
Base= on various mo=es of #s5amic 0inanceB the so5utions have been =esigne= to suit the
nee=s of our customers. ome of the !ey services offere= inc5u=e3
-etter of +uarantee 0aci5ity
Product/ 5or EE:ort-r/
(E4ort bi55s for co55ection
5&
(E4ort GightH bi55s 4urchase un=er a5am $rrangement
(E4ort G.sanceH bi55s 4urchase un=er Murabaha $rrangement
Product/ 5or I4:ort-r/
ight -etter of *re=it
.sance -etter of *re=it
5:
$%"#O)/ ()"#*(
)ea5izing the increasing5y =iverse nee=s of our customers for a=visory an= structure=
finance transactionsB a s4ecia5ize= unit focusing on #nvestment Ban!ing has been
estab5ishe= at Meezan Ban!. The #nvestment Ban!ing =e4artment 4rovi=es uni<ue
structuring ca4abi5ity using com45eE hariah structures for transactions so as meet
customer nee=. Meezan Ban! as torchbearer of #s5amic Ban!ing has ma=e a significant
contribution in the #nvestment Ban!ing in=ustry by 45aying 5ea=ing ro5es in business
transactions amounting to PR 1) +i<<ion in the year :''2.
-9 S-r.ic-/
yn=ication tructuring
7rivatization Man=ates
Mergers J $c<uisitions
$=visory ervices
5;
54
MON(/ T)$N0()
The Meezan Ban!As remittance services are sim45e an= re5iab5e. They are avai5ab5e at
your =oorste4 through a wi=e an= efficient networ! of corres4on=ing ban!s wor5=wi=e.
On5y 5ea=ing g5oba5 financia5 institutions form this networ! of corres4on=ent ban!s.
Ad.6nt6?-/ o5 M--76n 'o4- R-4itt6nc-:
Ruic! )emittance in major currencies i.e. .%B +B7B (.)B >7/B *H0B +%B
$.%
(Etensive branch networ! in a55 major cities of 7a!istan
#nstant on5ine transfer within our branch networ! without any charges
0ree #nternet ban!ing faci5ity
E6/9 !uid-<in-/ 5or Mon-9 Tr6n/5-r
#f you wish to remit money to 7a!istanB sim45y give instructions to your eEisting ban! for
money transfer by 4rovi=ing the name of your 4referre= Meezan Ban! branch an=
beneficiary account number.
55
%O--$) M.%$)$B$H *()T#0#*$T(
The )iba 0ree %o55ar Mu=arabah *ertificate is a f5eEib5e =o55ar base= investment which
has been =esigne= un=er the 4rinci45es of Mu=arabah an= is strict5y in conformity with
the ru5es of #s5amic hariah.
The *ertificate wor!s un=er the 4rinci45es of Mu=arabah an= is strict5y in conformity
with the ru5es of #s5amic hariah. 7rofit ca5cu5ation an= a55 ban!ing transactions are in
strict a=herence to the #s5amic hariahB monitore= by our hariah $=visor an= the hariah
u4ervisory Boar=.
-9 #-6tur-/
iE month5y 4rofit 4ayment to your current or saving account with us
-ong?term security ensure=. Minimum investment amount3 .% &'B'''I?
$vai5ab5e tenures of ; monthsB 1 monthsB & yearB an= ; years
51
52
%O--$) $"#N+ $**O.NT
Meezan Ban! is 45ease= to offer )iba?0ree %o55ar aving $ccountB a foreign?currency
base= investment o44ortunity that is set u4 on the 4rinci45es of hariah an= as a resu5t is
free from the e5ement of mar!u4.
Fith a minimum of on5y P&'' you can o4en a %o55ar aving $ccount with us un=er a
Mu=arabah arrangement that is strict5y in conformity with the 4rinci45es of #s5amic
hariah. The return earne= on the Mu=arabah 4oo5 is ca5cu5ate= every month an= the
4rofit ratio for a55 investors is =ec5are= at the beginning of the month. #f you maintain a
minimum average month5y ba5ance of P 5''B you sha55 be e5igib5e to receive 4rofits that
sha55 be =isburse= to you every month.
Addition6< #-6tur-/
ban! with usB we offer the fo55owing a==itiona5 conveniences to our customers3
7ersona5ize= che<ue boo!s
No restriction on with=rawa5s or number of transactions.
Month5y 4rofit 4ayment
56
Ta!ing sto4 4ayment instructions
Ta!ing ho5= mai5 instructions
#ssuance of =u45icate statement of account
M((,$N B$N9 T)($.)/
Meezan Ban!As treasury is gui=e= by hariah with the objective of reviewingB
stream5iningB an= contro55ing the ban!As =omestic an= internationa5 treasury re5ate=
o4erations. Treasury caters to the branches an= customers for their entire foreign
eEchange re<uirement with efficiency an= 4rofessiona5ism. )ea=yI s4ot as we55 as a55
forwar= cover services are 4rovi=e= to branchesIcustomers within hariah gui=e5ines.
*ustomers are a5so 4rovi=e= a=vice on a regu5ar basis about the currency movement by
our =ea5ing room augmente= by mar!et out5oo! Gwithout any commitment J ob5igationH
Treasury has enhance= its mar!et activity with increase= =e4th an= enhance= vo5umesB
ma!ing an im4act in the inter?ban! 08 mar!et. %ue to its goo= re5ationshi4 with other
treasuriesB the institution has the abi5ity to generate sufficient amount of 5i<ui=ity at a
time through inter?ban! mar!et on hariah?a44rove= Mushara!a basis.
Meezan Ban! con=ucts *ommo=ity Murhaba transaction to o4timize its returns on its
=o55ar 4ortfo5ioB besi=es 4artici4ating in 5oca5I internationa5 su!u! issuesB e.g. F$7%$B
RatarB %ubai su!u!sB etc. This treasury is the on5y treasury in 7a!istan with a man=ate to
59
4rovi=e hariah com45iant investment o44ortunities in ca4ita5 mar!et that 4rovi=es ha5a5
income u5timate5y to shareho5=ers
Tr-6/ur9 Cont6ct D-t6i</:
$ma5 ,ehra G*or4orate %ea5erH3
ama5.zehraUmeezanban!.com
$hme= .sman hei!h G*or4orate %ea5erH3
ahme=.shei!hUmeezanban!.com
Osama Niaz $hme= G%ea5erB #nterban!H3
osama.ahme=Umeezanban!.com
,ia ur )ehman Genior %ea5erB *or4orate TreasuryH3
zia.rehmanUmeezanban!.com
)aza ,ai=i G%ea5erB #nterban!H
raza.zai=iUmeezanban!.com
Mura= %hanani Genior %ea5erB *or4orate TreasuryH3
mura=.=hananiUmeezanban!.com
1'
ara aiye= G*hief %ea5erB #nterban!H3
sara.saiye=Umeezanban!.com
Mr. /asir $5i 9hoso G%ea5erB #nterban!H3
yasir.!hosoUmeezanban!.com
1&
*)(%#T $%M#N#T)$T#ON %(7$)TM(NT
The chairman of the Ban! in his review for :''2 annua5 re4ort =efine the cre=it 4o5icy of
Ban! as3
CONSERVATIVE YET DYNAIC CREDIT !O"ICY#
OBJECTIVE:
T3- o.-r6<< o+,-cti.- o5 t3- d-:6rt4-nt i/ to :ro.id- ind-:-nd-nt 6//ur6nc-
to +r6nc3 46n6?-4-nt 6nd 3-6d o55ic- cr-dit 4onitorin? di.i/ion t36t <-ndin?
6cti.iti-/ 6r- :ro:-r<9 contro<<-d 6nd 4onitor-d.
#UNCTIONS:
%ocumentation
-o=gment of =ocuments an= cash co55atera5
)eimbursement au=it certificate
-imit in4ut in ban! smart
7ost =isbursement monitoring
Monitoring of irregu5ar =oubtfu5 an= ba= =ebts
1:
)e4orting
Here it is necessary that we must have an overview of at 5east the most im4ortant
=ocuments that are re5evant to this =e4artment.
DOCUMENTATION
anction a=vice
0aci5ity offer 5etter
+enera5 =ocumentation
tan=ar= charge =ocuments
-ega5 =ocument 4ertain to 4ro4erties
*ash co55atera5
*harge with (*7
Other securities
#nsurance covers
+uarantees
Now we =iscuss above se4arate5y.
S6nction 6d.ic-
$ ty4e of =ocument which is ma=e when the senior officer of ban! =iscuss a55 the
confi=entia5 terms J con=ition that the =eman=e= faci5ity shou5= be 4rovi=e= or not so
1;
we can say that it is a =ay of fina5 =ecision that faci5ity shou5= be 4rovi=e= or not. $t that
time borrower worthiness is chec!e= accor=ing to that =ecision ma=e.
#6ci<it9 o55-r <-tt-r
Fhen this is =eci=e= that 5oan shou5= 4rovi=e= to borrower than branch ma=e faci5ity
offer 5etter that what ty4e of faci5ity shou5= be 4rovi=e= J =ocument are re<uire= from
borrower accor=ing to this faci5ity.
!-n-r6< docu4-nt/
$fter faci5ity offer 5etter genera5 =ocument are chec!e= these =ocument consist of
*om45ete account o4ening form
0aci5ity re<uest 5etter
BB0
*#B
*re=it o4inion
earch re4ort
$u=ite= Iune=ite= financia5
BorrowerAs 4rofi5e
*hec!5ist of state ban! regu5ation
Boar= reso5ution to borrow
Memoran=um an= artic5e of association
14
$t this stage a55 the 4ast recor=s are chec!e= J verifie= to ensure that 4ast recor= of the
borrower matches with =ata 4rovi=e= in re<uest 5etter. The most im4ortant =ocumentB
which is chec!e= is *#B re4ort. #n this re4ort a55 the 4ast 5oan of borrower are showe=
an= their re4ayment recor= is a5so mentione=. The com4any 4o5ices are a5so co55ecte= an=
their aim is chec!e= that whether the com4any is wor!ing in the same =irection which it
has mentione=.
St6nd6rd c36r?- docu4-nt
*0 G*urrent financeH
T0 GTerm financeH
0$7*# G0inance against 4ac!ing faci5ityH
0$0B G0inance against foreignH
-B7 G-oca5 bi55 4urchaseH
0B7 G0oreign bi55 4urchaseH
-$ Gight 5etter of cre=itH
.-( G.sance 5etter of cre=itH
0#M G0inance against im4ortH
0$T) G0inance against trust recei4tH
+.$)$NT((
15
#n this stage we see that what ty4e of faci5ity he or she want to ta!e or what ty4e of
faci5ity he or she a5rea=y have. #s the re<uirement accor=ing to nature of business Ja55
faci5ity term J con=ition are change accor=ing5y to that.
"-?6< docu4-nt :-rt6in to :ro:-rti-/
Tit5e =ee=s
*o4y of recor= of rights
*o4y of mutation
N(*
7T#
$! shajra
ite 45an
"a5uation
ite visit re4ort
7ower of attorney
$greement to create mortgage
To!en mortgage
7re=isbursment 5awyers o4inion
7erfection certificate of 5awyer

11
These a55 =ocuments are ta!en from borrower J ban! ma!e a fi5e of these =ocuments.
These =ocuments are most because when some time ban! have to ta!e 5ega5 action
against borrower then ban! !now that who are the owner or 4artner of the com4any what
4ro4erty is for mortgage its 4a4er are ta!en an= these a55 the things are 4rovi=e= to ban!
own 5awyer which fina55y =eci=e= that is everything right an= he ma!e a certificate or
borrower can bring this certificate himse5f from the recommen=e= 5awyer of ban!.
C6/3 co<<6t-r6<
-ien on =e4osits
-ien of =e4osits
!u6r6nt--/
7ersona5 guarantees of borrower
7ersona5 guarantees of mortgagors
*ounter guarantees
*ross cor4orate guarantees
+uarantees are most im4ortant thing because in this =ocument it is written that who is
res4onsib5e in case of =efau5t. 7ersona5 +uarantees are consi=er most im4ortant because
mention 4erson has to 4ay whenever he is a5ive.
12
*$) #>$)$H
OBJECTIVE:
The main objective of the car finance =e4artment is to finance a55 the cars manufacture=
or assemb5e= in 7a!istan at a very reasonab5e mar!u4.
T'E PRODUCT :
# have 4resente= the 4roce=ure of car finance =e4artment in <uestion answer form
because in my o4inion it wi55 better eE45ain the who5e of the 4roce=ure.
C6n I 6.6i< t3- c6r <o6n 56ci<it9D
/esB you can avai5 the car 5oan faci5ity from Meezan Ban! to 4urchase a bran= new car if
you are3
7a!istani nationa5 i=entity car= ho5=er
Over :' years of age maEimum 1' years in case of sa5arie= an= 1: is case of a
business4erson at the time of maturity of the 5oan.
a5arie=B businessman or se5f em45oye=.
W3ic3 c6r/ c6n I 6::<9 t3i/ <o6n 5orD
$55 bran= new 7a!istani assemb5e= I manufacture= cars Gunregistere=H
'o= 4uc3 <o6n 56ci<it9 c6n I 6.6i<D
16
Minimum amount is )s :''B'''I? an= maEimum is )s.:'''B'''I?
W36t i/ t3- :-riod o5 <o6nD
The 5oan can be avai5e= from & year to 5 years with ear5y a=justment faci5ity at any time
before the maturity.
'o= 4uc3 initi6< do=n :694-nt do I 36.- to 468-D
:'L of the va5ue of car
W36t ot3-r c36r?-/ do I 36.- to :69D
/ou have to 4ay one time fee of )s ;'''I? being amount of 4rocessing an=
=ocumentation charges an= first yearAs insurance 4remium.
W3o =i<< in/ur- t3- c6rD
Meezan Ban! has ma=e arrangements with the to4 insurance com4anies who are offering
s4ecia5 5owest insurance rates for Meezan Ban! c5ients.
'o= do I r-:69 t3- <o6nD
/ou wi55 re4ay the 5oan by ma!ing easy e<ua5 month5y insta55ments to Meezan Ban! in
the form of 4ost?=ate= che<ues.
C6n I r-:69 t3- <o6n +-5or- t3- 46turit9D
/esB you have the o4tion to re4ay the 5oan at any time =uring the tenure of the 5oan.
W36t i/ t3- /-curit9 o5 t3- <o6nD
19
The car is the securityB which wi55 be hy4othecate= in the favors of ban! an= a 5ien wi55 be
mar!e= with the register.
W36t i5 I =6nt t3- c6r in t3- n64- o5 49 564i<9 4-4+-rD
/ou can inc5u=e your s4ouseB chi5=ren G&6 years an= aboveH or 4arents as co a445icants
for the car 5oan an= the car can be registere= in the names.
W36t docu4-nt/ 6r- r->uir-d to ?-t 6 c6r <o6n /6nction-dD
Our re4resentatives wi55 =iscuss the =ocuments you are re<uire= to submit in =etai5. $n
in=icative 5ist is given be5ow3
Two 4ass4ort size 4hotogra4hs
*o4y of nationa5 #.% car=
Ban! statement for 5ast siE months
a5ary certificate Gin (ng5ishH s4ecifying the nameB =ate of joiningB =esignation
an= sa5ary =etai5s Gfor sa5arie= in=ivi=ua5sH
Business 4roof Gfor a business 4ersonH
*urrent uti5ity bi55 of your resi=ence in 7a!istan
*o4y of the nationa5 #% car= of the co?borrower Gif the car is to be in the name of
the co?borrowerH
'o= i/ it di55icu<t 5ro4 ot3-r 5in6ncin? /c3-4-/ 6.6i<6+<- in P68i/t6nD
(asi5y affor=ab5e J f5eEib5e insta55ments
2'
05eEibi5ity of a=justment at any time =uring the tenure
Ruic! 4rocessing
Minimum =own 4ayment
Minimum insurance
W36t i/ t3- 5ir/t /t-: I n--d to t68-D
*a55 or visit ort as! your fami5y member to visit any of our branches in 7a!istan

This was the who5e conce4t which is c5ear5y =efine= here .now the =etai5s of the
a445ication form are given that what is inc5u=e= an= what is nee=e= to be fi55e= in the
form un=er the fo55owing hea=s3
P-r/on6< d-t6i</
0u55 name
0athersIhusban= name
%ate of birth
Nationa5 #% car= no
Nationa5 taE no
Marita5 status
No of =e4en=ents
(=ucationa5 <ua5ifications
2&
*urrent resi=entia5 a==ress
#f rente=B month5y rent
)esi=entia5 te5e4hone no
)esi=entia5 status
Ty4e of accommo=ation
)esi=ing since
7ermanent home a==ress
7ersona5 mobi5e 4h no
(Eisting car
Ma!e an= mo=e5 of current car
*ar status
E4:<o94-nt d-t6i</ ;5or /6<6ri-d indi.idu6</@
Name of 4resent em45oyer
$==ress
*urrent =esignation
(m45oye= since
Business te5e4hone no
0aE no.
Officia5 mobi5e no.
2:
!re$ious emplo%er
Name of the em45oyer
$==ress
-ast =esignation he5=
ervice tenure
Office te5e4hone no
0aE no.
Bu/in-// d-t6i</ ; 5or :ro5-//ion6< 6nd /-<5A-4:<o9-d indi.idu6</ @
Name of business
Nature of business
*onstitution of firm
$==ress
(stab5ishe= since
)egistere= with
Nationa5 taE no
Business te5e4hone no
Mobi5e 4hone no
Inco4- d-t6i</
)egu5ar month5y gross income Gcost of e<uitation of =e4en=entsH
2;
+uarantee= bonus
Other month5y income
ource of other month5y income
$verage month5y savings
24
T)($.)/ $N% #N"(TM(NT
Money Mar!et
hort term money mar!et inter?ban! tra=ing.
$ctive Treasury Bi55s tra=ing in secon=ary mar!et.
0orwar= Q forwar= inter?ban! money mar!et tra=ing.
Money mar!et 5in!e= 5en=ing to an= borrowing from
cor4orate c5ients.
0oreign (Echange Mar!et
$ctive tra=ing in rea=y an= forwar= .%I79).
$ctive <uotations of foreign eEchange rates in fifteen major currencies.
#nformation in res4ect of 4revai5ing rates of most of the currencies of the
wor5= for
cor4orate c5ients an= in=ivi=ua5s.
0orwar= Q 0orwar= foreign eEchange rates of .%I79).
$ctive swa4 tra=ing in .%I79) an= other major currencies such as
(.)B +B7B >7/ an= *H0.
#nvestment
$ctive #nvestment in treasury bi55s GTBsH.
$ctive Tra=ing in 7a!istan #nvestment Bon=s G7#BsH.
25
$ctive investment in *ertificate of #nvestment G*O#sH
$ctive investment in Terms 0inance *ertificates GT0*sH
+overnment ecurities
(fficient service for in=ivi=ua5s an= cor4orate c5ients for buying an=
se55ing govt. securities on their a44ro4riate re<uests.
*usto=ianshi4
#nvestment ecurities 7ortfo5io $ccounts of *ustomers for ho5=ing on
their beha5f Treasury Bi55sB 7a!istan #nvestment Bon=s.

0inancia5 $=visory ervices
Briefing on current information avai5ab5e in mar!et in res4ect of
4revai5ing rates of .%I79).
Briefing on current information avai5ab5e in mar!et in res4ect of foreign
eEchange rates of major foreign currencies.
0uture eE4ectations an= sentiments on major foreign currencies
inc5u=ing 7a!.)s.
21
ON-#N( B$N9#N+
Meezan Ban! now offers the faci5ity of on?5ine ban!ing to its customers through its
countrywi=e networ! of branches. *ustomers can use the $TMs or the ban!ing counters
of any branch for =ay?to?=ay ban!ing nee=sB irres4ective of branch where they maintain
their accounts.
0or *or4orate customers centra5ize= *ash Management faci5ity is a5so offere= through
on?5ine ban!ing.
7HON( B$N9#N+
GM--76n P3on- +6n8in?D is avai5ab5e to a55 customers on a countrywi=e basis.
*ustomers can =ia5 111A%%1A111 Gwithout any city co=eI4refiEH from their res4ective
cities i.e. :& cities where Meezan Ban! is 4resentB an= get 4rom4t services from the
*entra5ize= 7hone Ban!ing ervices.
*ustomers enjoy %4E7 )oun= the *5oc! 7hone Ban!ing ervices.
22
Meezan Ban! is the first ban! in 7a!istan to offer *entra5ize= .$N connectivity from
%1 citi-/ to its *a55 *enter with Hunting J $*% faci5ities.
26
HOM( 0#N$N*(
PRODUCTS O# 'OME #INANCE
Buy /our Home
Fith this faci5ityB you no 5onger nee= to just =ream about the home you want for yourse5f
an= your fami5y .Fe wi55 4rovi=e you u4 to )s3 2.5' mi55ion or 2'L of the 4urchase 4rice
of the 4ro4erty Gwhichever is 5essHB so that you can rea5ize your =ream an= enter the
rea5ity of owning a home@.
7ayment 4erio= ranges from ; to :' years
Bui5= /our Home
0ami5y@ No 4rob5em. Fe wi55 4rovi=e you u4 to )s32.5' mi55ionB or 2'L of the estimate=
va5ue of constructe= 4ro4erty to enab5e you to say goo=?bye to rent forever@ (ven /ou
have a 45otB an= nee= finance to construct a homeB which eEcites everyone in your if you
=onKt have a 45otB we wi55 4rovi=e you u4 to 1'L of the va5ue of the 45ot that you have
se5ecte= to 4urchase@ %o we eEcite your imaginationV
7ayment 4erio= ranges from ; to :' years.
29
)enovation /our Home
/ou a5rea=y own a homeB but nee= eEtra s4ace for a growing fami5y. im45y a445y for
financing of u4 to )s3 :.5' mi55ion or ;'L of the surveye= va5ue of your home
Gwhichever is 5essH an= get yourse5f the eEtra s4ace. /ou can stretch 4ayments for u4 to 2
years
tart it Together
The crown jewe5 of our Home 0inance chemeB the go5=en o44ortunity for someone
starting a career to buy an a5rea=y constructe= housing unit so ear5y in 5ife@ Fe offer a
moratorium of u4 to ; years in 7rinci4a5 4aymentsB for a financing of u4 to :' years. /ou
service on5y the mar!?u4 e5ement initia55yB an= 4rinci4a5 re4ayment starts after the en= of
monitories 4erio=. Home tart is s4ecia55y =esigne= for young 4eo45e to have there own
home
Transfer
%oes your eEisting insta55ment on a home finance 5eave you with nothing to s4en=V /ou
nee= not worry any more because we have genuine5y 5ow rates an= 4ayment o4tions that
cou5= 5eave more fun=s with you each month. Fith our BT0B re4aying your home finance
6'
wi55 not ma!e you brea! into a sweet@ Transfer u4 to )s3 2.5' mi55ion or &'' L of the
eEisting financeB whichever is 5ess.
tretch your re4ayment 4erio= for u4 to :' years again.
te4s To $rrange a Home
Fe 4rovi=e you with a55 the information you nee= about Meezan Ban! Home
0inance. This can be through a face?to?face meeting with our )e5ationshi4
OfficerB or over the te5e4honeB or through the 4ost.
/ou give us some basic information about your income an= the amount you nee=
so that we can give you an agreement in 4rinci45e.
Once you have =eci=e= on the amount you wantB you com45ete an a445ication
form an= 4ass it on to usB together with the re<uire= =ocuments.
Fe ma!e some in<uiries about your financia5 circumstances.
Fe carryout a va5uation of the 4ro4erty an= verification of your income
Once we have carrie= out a55 the initia5 4rocessingB we sen= you our offer
through a C0aci5ity $=vice -etterD.
/ou sign the 0aci5ity $=vice -etter an= return it to us.
Our %ocumentation *ontro5 *enter wi55 get in touch with you to com45ete
0inance J ecurity =ocumentation inc5u=ing 5ega5 o4inion on the tit5eB =ocuments
of the 4ro4erty an= a5so the insurances.
/ou sign the 0inance $greement an= *harge =ocuments.
6&
Our 5ega5 a=visor wi55 accom4any you to the )egistrarAs office on the a44ointe=
=ate with our che<ue against the financing for conveyance of the 4ro4erty an=
your home finance begins.
6:
0#N$N*#$- T$T(M(NT $N$-/#
6;
B$-$N*( H((T
%00& %007 %00$ %001
%004
G'''H G'''H G'''H G'''H
G'''H
A//-t/
*ash an= ban! ba5ances 521;2&' 5144':6 5692;94 ;9519;6
:1:;566
Ba5ances with other ban!s &;44924 ;2:9549 4&;4625 :6556:;
&25&'6;
%ue from financia5 &6&'6''' 665'''' ;2''''' ??????????
?????????
institutions
64
#nvestments &4:61949 &'5;5&61 :622554 &1'149'
&4:9'5;
0inancing ;921646& ;4521;;9 :2';&'&1 &924'661
&:;;9245
O4erating fiEe= assets &66'5&5 &';:91; 5;&:1: ;'5565
:'42;2
Other assets 4&:;44& :6&'494 ::115:: ::&'&''
&;49&64
Tot6< 6//-t/ &1%7$070 $717&11* 4$4)&$%) )0$71&%%
1*$*7)*0
"i6+i<iti-/
Bi55s 4ayab5e &'52'&2 &&9:&1' 51;::6 :1'2;:
&91&45
%ue to other institutions 4''6491 :4&51'1 4:65:&: :96&2&4
:61:&;9
65
%e4osits an= other accounts 2':;;625 5456:;5; ;444944& ::219:1:
&;2196'2
ubor=inate= 5oans ??????????? ?????????? ??????????? ???????????
???????????
-iabi5ities against assets ??????????? ?????????? ??????????? ???????????
???????????
subject to finance 5ease
%eferre= taE 5iabi5ities 45;';6 4;';22 ;96;'4 &2':24
2191;&
Other 5iabi5ities ;546111 :65&4'2 &929'29 &419:56
:61
N-t 6//-t/ 1*74*7& 170$$1$ 47$))1* )0%41&%
%0*&)&%
Pr-/-nt-d +9:
61
hare ca4ita5 49:591& ;229692 ;229692 :';156:
&;41'&2
)eserves 645':: 2:'265 5:6'65 4'2:;5
:51526
.na44ro4riate= 4rofits 52'&&4&:&9::6 4464:2 5:2&:;
:56;:5
62
HO)#,ONT$- $N$-/# O0 B$-$N*( H((T
%00& %007 %00$ %001
%004
GLH GLH GLH GLH
GLH
A//-t/
*ash an= ban! ba5ances :'2 :'4 :'6 &5&
100
Ba5ances with other ban!s 62 :&; :21 &1;
100
%ue from financia5 469 :;9 &'' '''
000
institutions
#nvestments 999 2;2 :'4 &&:
100
66
0inancing ;:: :6' ::; &1'
100
O4erating fiEe= assets 9:: 5'1 :1' &49
100
Other assets ;'2 :&' &19 &14
100
"i6+i<iti-/
Bi55s 4ayab5e 55& 1:& :62 &;;
100
%ue to other institutions &4' 64 &5' &'4
100
%e4osits an= other accounts 5&: ;96 :5& &15
100
ubor=inate= 5oans ''' ''' ''' '''
000
69
-iabi5ities against assets ''' ''' ''' '''
000
%eferre= taE 5iabi5ities 59 51 5: ::
100
Other 5iabi5ities :4: &95 &;5 &''
000
N-t 6//-t/ %&$ %7) %%& 144
100
Pr-/-nt-d +9:
hare ca4ita5 ;12 :6& :6& &5&
100
)eserves ;;' :6& :'1 &59
100
9'
.na44ro4riate= 4rofits ::& 42: &24 :'4
100
9&
*OMM(NT ON HO)#,ONT$- $N$-/# O0 B$-$N*(
H((T
Horizonta5 ana5ysis of ba5ance sheet shows that the cash an= ban! ba5ances of Meezan
Ban! -imite= increase= from year :''4 to year :''5 an= then to year : ''1 but in the
year :''2 an= year :''6 these ba5ances remain a5most stab5e. o far as ba5ances with
other ban!s is concerne=B they gra=ua55y increase= to year :''1 then they starte=
=ecreasing in year :''2 an= in year :''6 they fe55 to the eEtent of 62 L of that of year
:''4. #t may be because in year :''6 the amounts =ue from financia5 institutions is
consi=erab5y increase= as com4are= to that of 4revious years. #n my o4inion this is not a
goo= sign. #t shows that the 5i<ui=ity of the ban! is =ecrease= in the year :''6 an= this
amount is given as a 5oan to other financia5 institutions. The 4rofit on these fun=s wi55
=efinite5y be 5ow as com4are= to the 4rofit that might be earne= from the ban!As own
customers but now this 4rofit wou5= be transferre= to other financia5 institutions.
The figure of investments a5so show remar!ab5e increase from year to year which shows
that ban! is trying not to !ee4 its fun=s i=5e. The amount of financing is a5so increase=
from the year :''4 to year :''6 continuous5y which is a hea5thy sign.
9:
The amount of o4erating fiEe= assets is increase= continuous5y which is the evi=ence that
ban! is increasing its branch net wor! nation wi=e an= in or=er to meet the infrastructure
re<uirements of this networ!B the ban! has to increase its o4erating fiEe= assets.
Other assets of the ban! are increase= at a regu5ar 4ace from year :''4 to year :''6
which shows that the ban! is fu55y aware of the emerging re<uirements of its networ!.
The amount of bi55s 4ayab5e is increase= from year :''4 to the year :''6 which shows
that ban! is entering into contracts with other businesses for earning 4rofits. imi5ar5yB
the amounts =ue to other institutions is increase= u4 to year :''1 but in the year :''2 this
amount is =ecrease= to 64 L of that of year :''4 but in year :''6 this amount is
increase= again to &4' L. Overa55 this situation shows that ban! is re5ying on its own
fun=s rather than borrowing from other institutions.
The major 5iabi5ity of the ban! i.e. =e4osits an= other accounts is consi=erab5y increase=
from year :''4 to year :''6 which shows that the customers are confi=ent about the
stabi5ity of the ban! an= there is an awareness among the customers about the #s5amic
way of ban!ing.
The amount of net assets i.e. tota5 assets 5ess 5iabi5itiesB on the who5e is satisfactory
because this figure is increase= from year :''4 to year :''6. in year :''6 this figure is
:61 L to that of year :''4 which shows that the net assets have satisfactori5y increase=.
9;
%uring a55 these yearsB the ban! arrange= ca4ita5 by issuing eEtra shares from time to
time. #ncrease in share ca4ita5 was not because of the fun=s nee=e= by the ban! but it was
a5so because the ban! has =istribute= in the form of stoc! =ivi=en=. This a5so shows that
the ban! wante= to save the 5i<ui= reserve to earn more 4rofits by investing these fun=s in
its core o4erations.
The situation of reserves an= una44ro4riate= 4rofits is a5so satisfactory an= shows that
the ban! has save= the sufficient amount of reserves to 4reserve its ca4ita5 structure.
94
"()T#*$- $N$-/# O0 B$-$N*( H((T
%00& %007 %00$ %001
%004
GLH GLH GLH GLH
GLH
A//-t/
*ash an= ban! ba5ances 1.25 6.4' &:.16 &:.66
&;.;&
Ba5ances with other ban!s &.52 5.54 6.69 9.:9
6.69
%ue from financia5 :&.:: &;.&2 2.92 '.''
'.''
institutions
#nvestments &1.24 &5.16 1.&6 5.::
2.:&
95
0inancing 41.1; 5&.42 56.:: 14.;1
1:.1:
O4erating fiEe= assets :.:' &.5; &.&4 '.96
&.':
Other assets 4.6; 4.&6 4.61 2.:'
1.6'
"i6+i<iti-/
Bi55s 4ayab5e &.:; &.22 ;.;1 '.65
'.91
%ue to other institutions 4.19 ;.59 9.:: 9.2:
&4.5;
%e4osits an= other accounts 6:.;1 6&.:1 24.&6 24.:&
19.66
ubor=inate= 5oans ''' ''' ''' '''
'''
91
-iabi5ities against assets ''' ''' ''' '''
'''
%eferre= taE 5iabi5ities '.5; '.14 '.64 '.55
;.61
Other 5iabi5ities 4.&5 4.:4 4.:4 4.21
'.''
N-t 6//-t/ 7.00 &.10 10.%$ *.&$
10.$1
Pr-/-nt-d +9:
hare ca4ita5 5.22 5.1& 6.&: 1.1:
1.6&
)eserves '.96 &.'2 &.&: &.;'
&.:2
.na44ro4riate= 4rofits '.12 &.6' '.95 &.19
&.:2
92
Tot6< A//-t/ 100 100 100 100 100
*OMM(NT ON "()T#*$- $N$-/# O0 B$-$N*(
H((T
#n the year :''4B the cash an= ban! ba5ances were&;.; 4ercent of the tota5 assets whereas
the ba5ances with other ban!s were 6.69 4ercent. However the amounts =ue from other
financia5 institutions were zero 4ercent. This shows that in this year which was actua55y
the secon= year of the ban!As o4erationsB the sco4e of its o4erations was very 5imite=.
imi5ar5y the amount of investments was 2.:& 4ercentB o4erating fiEe= assets were &.':
4ercent an= the other assets were on5y 1.6' 4ercent. However the 4ercentage of 0inancing
was1:.1 4ercent of the tota5 assets which shows that the ban! was ab5e to eEten= 1:.1
4ercent of its tota5 fun=ing as 5oans in the form of #s5amic financing.
Bi55s 4ayab5e is the year :''4 were on5y '.91 4ercentB the ba5ance =ue to other
institutions was &4.5; 4ercent an= the =eferre= taE 5iabi5ity was ;.61 4ercent. However
the 5argest amount of 5iabi5ity was =e4osits an= other accounts which were u4 to 2'
4ercent of tota5 assets. This shows that the ban! was not so much efficient in managing its
96
fun=s because the amount eEten=e= to customers was about 1: 4ercent but the =e4osits
receive= by the ban! from the customers were about 2' 4ercent.
The tota5 amount of shareho5=ersA fun=s was about 9 4ercent which shows that the ban!
was ab5eB from its very beginningB to o4erate on an o4tima5 ca4ita5 structure.
#n the year :''5B the cash an= ban! ba5ancesB ba5ances with other ban!sB investmentsB
o4erating fiEe= assetsB an= other assets show a 5itt5e im4rovement on the who5e but the
amount of financing cou5= not be im4rove= very much. However there was a 4ositive
change of about : L in the amount of financing which is not sufficient when it is
com4are= with the amount of =e4osits an= other accounts which were increase= from 2'
4ercent in :''4 to 24 4ercent in :''5
The situation goes =ownwar= in the year :''1 when the 4ercentage of =e4osits an= other
accounts to tota5 assets was 24.&6 4ercent but the 4ercentage of financing to tota5 assets
was on5y 56.:: 4ercent. This shows that the customers truste= on the ban! an= increase=
the amount of =e4osits in is5amic ban!ing but the ban!B on the other han=B cou5= not be
e<ua55y efficient.
The situation remaine= continue= in the year :''2 an= the year :''6 where the
4ercentage of =e4osits increase= to 6: 4ercent whereas the 4ercentage of financing
=ecrease= to 42 4ercent. However the ban! a5so rea5ize= the situation an= starte= uti5izing
99
the fun=s in other investments an= 5en=ing to other financia5 institutions. This move of
the ban! trie= to ba5ance the situation which was create= by un=er uti5ization of the fun=s
co55ecte= from the customers.
&''
#N*OM( T$T(M(NT
%00& %007 %00$ %001
%004
;Ru:--/ in Mi<<ion/@
Pro5it -6rn-d on 5in6ncin?/B
in.-/t4-nt/ 6nd :<6c-4-nt/ $&0) 417) %704 141*
1)4
)eturn on =e4osits an=
other =ues eE4ense= G;'66H G:45&H G&414H G19'H
G:5'H
N-t /:r-6d -6rn-d )714 %1%1 1%40 7$&
%&4
"-//
7rovision against non?
&'&
4erforming financings GnetH G4:6H G4;5H G&:&H G16H
G&1H
7rovision for =iminution in
va5ue of investments
an= im4airment G:66H G'.6H G&.:H :9.6
G&.2H
N-t /:r-6d 65t-r :ro.i/ion/ %**7 1$&1 1117 7%*
%$1
Other #ncome 2'2 &;42 19' 1::
;15
Tot6< Inco4- )701 )0)) 1&07 1)11
$)0
"-//
Other eE4enses G:2&;H G&214H G&':2H G2&6H
G4'9H
&':
Pro5it B-5or- T6E **% 1%$* 7&0 $))
%%0
"-//
TaEation G;2&H G;'5H G&25H G:&;H
4
Pro5it 65t-r t6E $%1 *$) $04 41*
%%4
&';
HO)#,ONT$- $N$-/# O0 #N*OM( T$T(M(NT
%00& %007 %00$ %001
%004
in.-/t4-nt/ 6nd :<6c-4-nt/ 1%74H &1$H 10$H %7)H
100H
other =ues eE4ense= &:;5 96' 561 :21
&''

N-t /:r-6d -6rn-d 1)0& 747 4)7 %70
100
"-//
&'4
4erforming financings GnetH :125 :2&9 251 4:5
&''
an= im4airment &194& 42 2& &65;
&''
N-t /:r-6d 65t-r :ro.i/ion/ 11)1 $)$ 4%% %71
100
Other #ncome &94 ;19 :5 &2'
&''
Tot6< Inco4- 1&& 4&1 %&7 %14
100
"-//
Other eE4enses 116 4;& :5& &21
&''
&'5
Pro5it B-5or- T6E 411 177 )11 %&7
100
"-//
TaEation 9:25 21:5 4;25 54:5
&''
Pro5it 65t-r t6E %77 4)0 %70 1&7
100
(-6r %004 i/ t68-n 6/ 6 +6/- 9-6r
&'1
*OMM(NT ON HO)#,ONT$- $N$-/# O0 #N*OM(
T$T(M(NT
Horizonta5 ana5ysis of income statement shows that the 4rofit earne= on financingB
investments an= 45acements has consi=erab5y increase= over the years. imi5ar5y the
return on =e4osits an= other =ues eE4ense= was a5so increase= with the same 4ace. The
situation =e4icts that the ban! has been beneficia5 on the who5e.
The most crucia5 situation that is obvious from the ban!As income statement is the amount
of 4rovision against the non 4erforming financings. This amount has increase= over the
years at an a5arming rate. #t shows the ban!As inefficiency in the formu5ation an=
im45ementation of cre=it an= co55ection 4o5icy.
$nother item on the income statement that has =ecrease= the ban!As net income to a 5arge
eEtent is the 4rovision fore =iminution in va5ue of investments an= im4airment. This
amount is increase= u4 to &194& L in :''6 as com4are= to that of :''4. The ban! shou5=
serious5y consi=er that the investment must be ma=e carefu55y so that there may not be
such a huge =ec5ine in their va5ue.
&'2
The other income of the ban! has not 45aye= a consi=erab5e ro5e in the income statement
howeverB the amount of other eE4enses are increase= to a 5arge eEtent as com4are= to that
of year :''4. Fe sha55 ana5yze 5ater in the vertica5 ana5ysis that what is the 4ercentage of
these two items with res4ect to the tota5 revenue.
-ast5yB the figure of 4rofit after taE shows an increase of :22 L from that of the year
:''4. The ana5ysis shows that the 4rofit continuous5y increase= from the year :''4 to
:''2 but in the year :''6 this ratio =ec5ine to a 5arge eEtent.
&'6
"()T#*$- $N$-/# O0 #N*OM( TT(M(NT
%00& %007 %00$ %001
%004
in.-/t4-nt/ 6nd :<6c-4-nt/ 100H 100H 100H 100H
100H
other =ues eE4ense= 45 54 54 42.:9
41.6:
N-t /:r-6d -6rn-d 11 4$ 4$ 1%.71
1).1&
"-//
4erforming financings GnetH 1.:9 9.5& 4.42 4.11
;.''
&'9
an= im4airment 4.:; '.': '.'4 :.'4
'.;:
N-t /:r-6d 65t-r :ro.i/ion/ 44 )$.&1 41.)1 10
4*.$)
Other #ncome &'.;9 :9.41 :5.5: 4:.14
16.;5
Tot6< Inco4- 14.4$ $$ $$.&) *%.1*
11&
"-//
Other eE4enses ;9.66 ;6.52 ;6 49.:&
21.59
Pro5it B-5or- T6E 14.1& %7.71 %&.&1 4).)*
41.%0
&&'
"-//
TaEation 5.45 1.12 1.42 &4.1'
'.25
Pro5it 65t-r t6E *.1) %1.0$ %%.)4 %&.7%
4%
Pro5it -6rn-d on 5in6ncin?/B in.-/t4-nt/ 6nd :<6c-4-nt/ i/ t68-n 6/ 6 +6/-
&&&
*OMM(NT ON "()T#*$- $N$-/# O0 #N*OM(
T$T(M(NT
The vertica5 ana5ysis of the year :''4B the secon= year of the ban!As o4erationsB shows
that the return by the ban! to its =e4osit ho5=ers is about 42 L. .5timate5y the gross 4rofit
earne= by the ban! on the financing was 5; L. 7rovisions for non 4erforming financing
!e4t by the ban! was about ; 4ercent an= 4rovision for =iminution in the va5ue of
investments an= im4airment was on5y about '.;: 4ercent. The other income of the ban!
was about 16 4ercent but this item has not a==e= much in the net income of the ban!
because the 4ercentage of other eE4enses was about 26 4ercent. Hence the net income of
the ban! after taE remaine= at 4: 4ercent.
#n the year :''5B the situation remaine= a5most the same eEce4t that the other income of
the ban! was =ec5ine= to the 4ercentage of about 4; 4ercent of gross revenue whereas the
other eE4enses were a5so =ec5ine= to 49 4ercent. #n this year the net income after taE of
the ban! was =ecrease= to :9 4ercent.
#n the year :''1 the return 4ai= by the ban! was increase= to 54 4ercent 5eaving a net
s4rea= of 41 4ercent for the ban!. The other income of the ban! was =ecrease= again to
&&:
an eEtent of :5.5: 4ercent an= the other eE4enses were ;6 4ercent of the gross revenue.
#n this year the net income of the ban! was =ecrease= further to ::.;4 4ercent.
#n the year :''2B the situation remaine= a5most the same with the eEce4tion that the
4rovision for non 4erforming 5oans was consi=erab5y increase= which is not a goo= sign.
However in this year the net income remaine= a5most e<ua5 to that of year :''1.
The year :''6 has not been 4rove= a goo= year in the history of the ban!. $5though in
this year the net s4rea= earne= by the ban! was 55 L but the 4ercentage of other income
of the ban! was =ecrease= with an a5arming rate. #n this year the 4ercentage of other
income was on5y &' L but the 4ercentage of other eE4enses was about 4' 4ercent. This
fact has worsene= the situation on the who5e an= the ban!As net income =ecrease= to the
maEimum of on5y 9.&; 4ercent which is the 5owest of a55 the 4revious years.
&&;
)$T#O $N$-/#
)eturn on (<uity
R-turn on E>uit9 I N-t Pro5it 65t-r T6E J Stoc83o<d-r/C E>uit9
:''6 O G1:&&62 I 1;4&'92H E &'' O 9.6' L
:''2 O G91;5'& I 52&99&'H E &'' O &1.64 L
:''1 O G1'4:5& I 42514'9H E &'' O &:.2' L
:''5 O G4&9455 I :92'94'H E &'' O &4.&: L
:''4 O G::4;56 I &61'9:'H E &'' O &:.'1 L
This ratio shows the 4rofit earne= by the com4any as a 4ercentage of the amount of
e<uity ca4ita5 investe= by the com4any in the business. #n the year :''4 this ratio was
about &: 4ercent but this ratio seems to f5uctuate in the 5ater years. #n the year :''5B this
ratio is im4rove= to &4 4ercent but again in the year :''1 it is =ec5ine= to about &:
4ercent. This is because the com4any has increase= the amount of ca4ita5 in :''1 but the
net 4rofit after taE cou5= not be increase= accor=ing to that ratio. However in the year
&&4
:''2 the ratio was increase= to the maEimum of a55 the 4revious years in s4ite of an
increase in the stoc!ho5=ersA e<uity. This is because the net 4rofit was increase=
4ro4ortionate5y to that. However in the year :''6B the situation is not so goo= because in
this yearB the amount of 4rofit =ec5ine= an= the com4any again has issue= the e<uity
ca4ita5 in the form of bonus shares.
)eturn on $ssets
R-turn on A//-t/ I N-t Pro5it 65t-r T6E J Tot6< A//-t/
:''6 O G1:&&62 I 65:21'2'H E &'' O '.2; L
:''2 O G91;5'& I 12&26559H E &'' O &.4; L
:''1 O G1'4:5& I 414;61:;H E &'' O &.;' L
:''5 O G4&9455 I ;'1256::H E &'' O &.;2 L
:''4 O G::4;56 I &9192;9'H E &'' O &.&4 L
)eturn on assets is the ratio that shows the 4ercentage of net 4rofit after taE to tota5
assets. This ratio is a5so ca55e= the return on investments because investment by the
&&5
com4any in the business is a5ways in the form of =ifferent ty4es of assets. This ratio of
Meezan Ban! -imite= shows that the return earne= by the ban! on its tota5 investments is
=ecreasing from year to year. This is because the ban! has continuous5y increasing its
investments in the tota5 assets but against that investment the ban! is not earning
sufficient amount of 4rofits. The situation is somewhat better in the year :''2 where
because of highest of a55 the yearsA 4rofitsB the return 4ercentage is &.4;. The ban! shou5=
consi=er the situation an= shou5= try to rectify this.
Net 4rea= Margin
N-t S:r-6d M6r?in I N-t r-turn on "o6n/ 6nd Ad.6nc-/ J Tot6< A//-t/
:''6 O G:992559 I 65:21'2'H E &'' O ;.5: L
:''2 O G&165666 I 12&26559H E &' O &.96 L
:''1 O G&&&2::9 I 414;61:;H E &'' O &.11 L
:''5 O G2:96;& I ;'1256::H E &'' O :.;6 L
:''4 O G:15:11 I &9192;9'H E &'' O &.;5 L
&&1
This ratio shows the gross earnings on financing 5ess the return 4ai= to the =e4osit
ho5=ers as a 4ercentage of tota5 assets. This is some sort of gross 4rofit ratio because the
earning on financing is the main revenue of the ban! where the return 4ai= to =e4osit
ho5=ers is the cost of those fun=s. Here this ratio shows that the situation was better in the
year :'' but in the year :''1 it is again =ec5ine=. Then in the year :''2 it again became
better whi5e in the year :''6 sur4rising5y this ratio is the highest. $5though the net 4rofit
after taE in this year is 5esser than that of the 4revious years but this ratio shows that the
ban! has become efficient in its core o4erations an= the 4rob5em 5ies with its other
income an= other eE4enses as we have a5rea=y seen in the vertica5 ana5ysis of the income
statement for the year :''6.
Net Other #ncome Margin
N-t Ot3-r Inco4- M6r?in I N-t Ot3-r Inco4- J Tot6< A//-t/
:''6 O G2'29'6 I 65:21'2'H E &'' O '.6; L
:''2 O G&;4269; I 12&26559H E &'' O :.'& L
:''1 O G19'51& I 414;61:;H E &'' O &.49 L
&&2
:''5 O G1::&5& I ;'1256::H E &'' O :.';L
:''4 O G;15'9; I &9192;9'H E &'' O &.65 L
Net other income margin is the 4ercentage that shows the return earne= by the ban! from
the sources other than its core o4erations. 9ee4ing in view the intense com4etition among
the ban!s to=ayB a ban! must serious5y concentrate on the other sources because in this
sheer com4etition a ban! is not in a 4osition to earn 4remium revenue on the finances
4rovi=e=. 0or Meezan Ban!B this ratio shows that there have been the f5uctuations in
other income from year to year but the situation is very ba= in the year :''6 where this
ratio is the minimum of a55 the 4revious years. This is the reason that the overa55
4erformance of the ban! =ec5ine= in this year.
(arnings 4er hare
E6rnin?/ :-r S36r- I N-t Pro5it 65t-r T6E J Nu4+-r o5 S36r-/
I//u-d
:''6 O G1:&&62 I 49:591.&H O
)s.&.:1 4er hare
&&6
:''2 O G91;5'& I ;22969.2H O
)s.&.91 4er hare
:''1 O G1'4:5& I ;22969.2H O
)s.&.66 4er hare
:''5 O G4&9455 I :';156.:H O
)s.&.41 4er hare
:''4 O G::4;56 I &;41'&.2H O
)s.&.12 4er hare
(7 is the ratio that measures how many ru4ees the com4any has earne= against one
or=inary share issue= to the shareho5=ers. The greater is the ratioB the better it wou5= be. #t
is because the com4any wi55 have the greater amount of 4rofits 4er share to 4ay as
=ivi=en= to the shareho5=ers. This ratio is the most im4ortant ratio from the shareho5=ersA
4oint of view because they a5so want to !now that how much the com4any is going to
4ay them against the number of shares they are having. 0or Meezan Ban!B this ratio
im4rove= from the year :''4 to the year :''2 with a 5itt5e eEce4tion in :''5 but in the
year :''6 this ratio fe55 to the minimum of )s.&.:1 4er share which is because the
com4any has issue= bonus shares to its shareho5=ers as a stoc! =ivi=en=.
&&9
toc! %ivi=en= 7ercentage
:''6 O 6.1 L
:''2 O :' L
:''1 O &' L
:''5 O &1 L
:''4 O &5 L
Over the years from :''4 to :''6B the ban! has been 4aying the stoc! =ivi=en= instea= of
cash =ivi=en=. $5though this is not a goo= sign but we can say that since this is because
of the consent of the shareho5=ers thatAs why it is com4romisab5e. This ratio shows that
the ban! has been 4aying sufficient amount of =ivi=en= to the shareho5=ers from the year
:''4 to the year :''2 but in the year :''6 this ratio is =ec5ine=. This was because in the
year :''6B the ban! ha= not earne= a han=some amount of 4rofits to justify the 5arger
stoc! =ivi=en=s. $nywaysB in my o4inionB the ban! shou5= consi=er the situation an= try
to =ec5are =ivi=en= in the form of cash a5so.
&:'
Mar!et 7rice 4er hare
:''6 O )s.:&.46 4er hare
:''2 O )s.;6.55 4er hare
:''1 O )s.&9.5' 4er hare
:''5 O )s.:;.:5 4er hare
:''4 O )s.&1.2' 4er hare
The mar!et 4rice 4er share has been f5uctuating from year to year but the overa55 im4act
on the mar!et 4rice is encouraging. However we suggest that the ban! shou5= sto4 4aying
stoc! =ivi=en=s as this increases the number of shares in circu5ation an= the u5timate
resu5t wi55 be the =ec5ine in the mar!et 4rice.
&:&
7rice (arning )atio
Pric- E6rnin? R6tio I M6r8-t Pric- :-r S36r- J E6rnin?/ :-r S36r-
:''6 O :&.46 I &.:1 O &2.';
:''2 O ;6.55 I &.91 O &5.&:
:''1 O &9.5' I &.66 O &'.5&
:''5 O :;.:5 I &.41 O &5.9:
:''4 O &1.2' I &.12 O &'.':
The 4rice earnings ratio is common5y use= to assess the ownerAs a44raisa5 of share
va5ue. This ratio measures the amount that investors are wi55ing to 4ay for each ru4ee of
com4anyAs earnings. The 5eve5 of this ratio in=icates the =egree of confi=ence that
investors have in the firmAs future 4erformance. The highest the 7I( ratioW the greater the
investor confi=ence in the com4any. The figures ca5cu5ate= above show that the investorsA
confi=ence in the com4any is increasing year by year as this ratio is increasing from
&::
ear5ier years to the 5ater years. #n the year :''1B this ratio was =ecrease= but soon after
that this ratio was im4rove= in :''2 an= became even better in :''6.
Net 7rofit before TaE Margin
:''6 O &;.:& L
:''2 O :&.4; L
:''1 O ::.96 L
:''5 O ;'.4: L
:''4 I :4.51 L
Net 4rofit before taE margin re4resents the 4rofit earne= before taE as a 4ercentage of
gross revenue. The nee= to ca5cu5ate this ratio is that the actua5 4erformance of the ban!
is measure= before taE an= not after taE. o this ratio shows that the 4rofit earne= by the
ban! increase= in the year :''5 but in the 5ater years this ratio continue= to =ec5ine an= in
the year :''6 this ratio was on5y &;.:& 4ercent as com4are= to that of year :''4 where it
was about :5 4ercent.
&:;
Net 7rofit after TaE Margin
:''6 O 6.:2 L
:''2 O &1.:2 L
:''1 O &2.6' L
:''5 O :'.&5 L
:''4 O :4.94 L
Net 4rofit after taE margin was about :5 4ercent in the year :''4 whereas it starte=
=ecreasing gra=ua55y in the subse<uent years. The main reason for this =ecrease in the net
4rofit was increase in the other eE4enses an= a5so because of an increase in the amount of
taEation. $5though the better measure for the efficiency of the management is the net
4rofit before taE margin but since that 4rofit is not on the =is4osa5 of the management so
it is better to ca5cu5ate the net 4rofit after taE margin so that the =is4osab5e income of the
organization shou5= be measure=. $n= this ratio shows that the efficiency of the
organization is going =ecreasing year by year.
&:4
O4erating (E4enses to #ncome
:''6 O 2;.;1 L
:''2 O 12.2& L
:''1 O 2;.4' L
:''5 O 2&.:& L
:''4 O 22.:4 L
The o4erating eE4ense to income ratio shows that the organization has been ab5e to
contro5 its o4erating eE4enses over the year from :''4 to :''6. This ratio was 22.:2
4ercent in the year :''4 an= in the year :''6 it is en=e= with a 5itt5e =ecrease to 2;.;1
4ercent. #n s4ite of the stabi5ity of this ratio the net 4rofit margin of the ban! =ec5ine= to a
consi=erab5e eEtent. This was because of an increase in the other eE4enses of the
organization. o the ban! shou5= focus to =ecrease its o4erating eE4enses so that its net
4rofit shou5= be im4rove=.
&:5
0inancing to %e4osit )atio
:''6 O 5&.1: L
:''2 O 51.9' L
:''1 O 15.16 L
:''5 O 2;.61 L
:''4 O 19.92 L
0inancing to =e4osit ratio is 4erha4s the most critica5 ratio for a commercia5 ban!. This
ratio re4resents the amount eEten=e= as a 5oan by a ban! to its c5ients com4are= to
=e4osits that the ban! receives from its =e4osit ho5=ers. $s 4er the =efinition of a
commercia5 ban!B the ban! is an institution that receives money from those who have it
s4are an= 5en=s it to those who are in nee= of them. This ratio of Meezan Ban! has been
=ec5ining from the year :''4 to the year :''6. The ban! shou5= serious5y consi=er this
ratio because these are the core o4erations of the ban!. #f the ban! cou5= not fu55y uti5ize
the fun=s receive= from the =e4osit ho5=ers it wou5= have to suffer a 5oss of its net
income.
&:1
Boo! "a5ue 4er hare
Boo! "a5ue 4er hare O toc!ho5=ersA (<uity I No. of *ommon hares
#ssue=
:''6 O 1;4& M I 49:5 M O )s.&.:9 4er hare
:''2 O 52:' M I ;229 M O )s.&.95 4er hare
:''1 O 421; M I ;229M O )s.&.92 4er hare
:''5 O ;':5 M I :';1 M O )s.&.49 4er hare
:''4 O :'96 M I &;41 M O )s.&.51 4er hare
Boo! va5ue 4er share is the ratio that shows that how much va5ue of assets the ban! has to
4ay to its shareho5=ers in the event of its win=ing u4. #f we com4are the boo! va5ue 4er
share with the mar!et va5ue 4er share we see that a5though the boo! va5ue 4er share is
&:2
much 5esser than the mar!et va5ue even then the shareho5=ers are wi55ing to 4ay much
higher 4rice for the share of the ban!. #t shows that the shareho5=ers have confi=ence in
the com4any that the com4any wi55 the 4ros4erous in the future. However since the
mar!et 4rice has =ec5ine= recent5yB therefore the com4any shou5= ta!e corrective actions
so that the confi=ence of the shareho5=ers shou5= be maintaine=.
&:6
FOT $N$-/#
Meezan Ban! being a <ua5ity organization strives to 4rovi=e <ua5ity to a55 its
sta!eho5=ersB customersB em45oyees an= environment. #n 7a!istanB it is o4erating in a
very vo5ati5e economic an= 4o5itica5 environment. # have summarize= its major strengthsB
wea!nessesB o44ortunities an= threats in the fo55owing 4aragra4hs.
T)(N+TH
MB- has this 4rivi5ege to be the first in the #s5amic Ban!ing sector which gives
MB- a com4etitive e=ge over a55 other ban!s an= being the 4ioneer of this
in=ustry MB- is enjoying major share of it.
Being an #s5amic ban!B MB- has a wi=e nationa5 networ!. $s an emerging
mar!ets ban!B it has branches in a55 the major cities of 7a!istan with the faci5ity of
on5ine ban!ingB it is very easy for its customers to transact a55 over the country.
On5ine ban!ing service means that a customer can with=raw an= =e4osit his
money at any branch in the country. Fhere this service is not 4resentB che<ue has
to be 4resente= on5y in that branch on which they are =rawn. But with this faci5ityB
&:9
a 4erson has access to its fun=s at any branch of the ban!. That wou5= mean that
any 4erson who has an account with the ban!B has an account in :4 branches of it.
#t 4rovi=es a 5ot of comfort an= convenience to the customers.
There are many va5ue a==e= features in the 4ro=ucts offere= by the ban!. $TM
car=s are 4rovi=e= with every account. Other features are 4resent in the various
4ro=ucts. The 4riority customers enjoy a much?4am4ere= status at the ban!.
The em45oyees at the ban! 4rovi=e im4eccab5e customer service to their
customers. 0or them Cthe customer is the !ingA. *ustomers are treate= with great
res4ect an= honore= to the utmost =egree.
The wor!ing environment of the ban! is very frien=5y an= coo4erative. There is
no bossiness in the higher management. The u44er management consu5ts its staff
in ma!ing =ecisions an= 4rovi=es them in=e4en=ence in their job areas. 0or the
objective is 4erformance an= not conformance with the boss.
F($9N((
Ti55 the 5ast yearB MB- ha= a tota55y =ifferent 4ers4ective. The management was
of the view that the customer shou5= come to them an= they =onAt nee= to go to
the customer. But in this era of mass mar!eting an= a=vertisingB it is not 4ossib5e
to stay in com4etition without these too!. The ban! has now change= its
&;'
4erce4tion ari= has starte= an effective mar!eting an= a=vertising strategy. But the
4revious ga4s are sti55 there an= there is 5ac! of awareness in the 4eo45e about the
ban! an= its 4ro=ucts. The ban! nee=s to im4rove on its mar!eting an=
a=vertising areas.
#t was observe= in the ban! that the =egree of satisfaction of the em45oyees was
<uite 5ow. 0irst of a55B the 4ays are 5ower those offere= in other ban!s. econ=5yB
the em45oyees are given targets that are too =ifficu5t to achieve. 0or eEam45eB the
targets given to the 4ersonne5 in sa5es an= services =e4artment are higher than any
other ban! in the countryB be it a 5oca5 ban! or a foreign ban!. This ma!es the job
too stressfu5 an= tense= #t is goo= to !ee4 the 4eo45e un=er a continuous moveB
but to overstress them can be harmfu5 to them an= as we55 as to the organization.
%ue to the =issatisfaction of staffB there is high turnover among them. 7eo45e who
fin= other a5ternatives =o not stay with the ban!. ThereforeB the ban! incurs 5oss
on their training an= =eve5o4ment. The ban! shou5= 4rovi=e incentives to its
em45oyees so that they show more 5oya5ty. 0or eEam45eB there is no commission
4rovi=e= to the sa5es 4ersonne5 which otherwise is a genera5 ru5e a55 over the
wor5=.
There are no sorts of training 4rogrammes for the em45oyees. The em45oyees who
are new5y a44ointe= are straight away 45ace= at their 4ositions with no 4rior
&;&
orientation. This creates 4rob5em for new 4ersonne5 because they fin= =ifficu5t to
un=erstan= the environment an= cu5ture of the organization.
The =ecision?ma!ing is carrie= out the u44er management 5eve5 an= the
subor=inates are not inc5u=e= in this 4rocess. This creates a sense of insecurity in
the 5ower managers an= that is why there is a 5ac! of 5oya5ty among the 4ersonne5.
$5though the u44er management is very frien=5y with the 5ower managers but that
is on5y to the eEtent of cor=ia5 re5ationshi4s.
O77O)T.N#T#(
The economic con=itions are im4roving in the country. The foreign eEchange
reserve has crosse= the 5eve5 the P &4 Bi55ionsB which is something that was never
achieve= in the 4ast. The stoc! eEchange in=eE has a5so crosse= fifty years high
recent5y touching &'B''' this year. This 4rovi=es a better environment for
investment an= growth. This wou5= give a 4ush to incomes of the 4o4u5ationB
which wou5= increase the 5eve5 of savings.
There is an inf5ow of foreign investment in the country. This wou5= increase the
in=ustria5 growth 7a!istan. The #s5amic ban!s are im4ortant 4art of money
mar!ets an= this im4rovement wi55 =efinite5y effect their 4ositions as we55. %ue to
the growth in the in=ustria5 sectorB there wi55 be an increase in the 4ro=uction of
&;:
this sector. The 5eve5s of =e4osits of in=ustria5 accounts wou5= rise =ue to this
factor.
TH)($T
)ight now there are a few ban!s that are 4rovi=ing is5amic ban!ing services in
a==ition to the Meezan Ban!. These ban!s inc5u=e Ban! #s5amiB $5?Bar!ah Ban!
an= some branches of Ban! $5fa5ah which are =e=icate= for is5amic ban!ing
services. ThatAs why we can say that a5though there is no intense threat for the
Meezan Ban! in the near future but it is not =ifficu5t to say that more ban!s may
enter in this fie5= as the awareness of is5amic ban!ing is increasing among the
4ub5ic. Therefore the Meezan Ban! shou5= not be contente= to its 4resent mar!et
share but shou5= strive for 4rovi=ing better an= better an= mo=ern services.

%ue to the increase in the number of conventiona5 commercia5 ban!sB there is an
increase in com4etition. $5so there is a 5ot of aggressive mar!eting by the
com4etitor ban!s. This is a5so a threat for MB-.
&;;
)(*OMM(N%$T#ON
Meezan Ban! is renowne= for being first in #s5amic ban!ing. Fith such com4etitive e=ge
in the ban!ing in=ustryB it ho5=s a very strong 4osition among its com4etitors. #ts
continuous innovation an= a=a4tation to its changing environment has a55owe= it to stan=
amongst the best of the 5ot. But # wou5= 5i!e to give certain recommen=ations in this
4ers4ective3
0irst of a55B # wou5= # 5i!e to suggest that the ban! must 4ursue a very aggressive
mar!eting an= a=vertising strategy so that it can create awareness in the genera5
4ub5ic about its #s5amic 4ro=ucts an= services
econ=5yB there is a nee= for creating satisfaction among em45oyees. They =o not
fee5 any attachment to the organization. There is a re<uirement for bui5=ing u4
their 5oya5ties so that the ban! can curtai5 the =issatisfaction an= turnover among
em45oyees.
The 4ersonne5 in the ban! shou5= not be overstresse= with wor!5oa=. The
wor!5oa= is of a =estructive 5eve5. $t that 5eve5 of 5oa= the em45oyees 5oose a55 the
comfort in their wor! an= remain tense an= frustrate=.
&;4
There is nee= of a new branch in the -ahore Main area. #n our mar!eting researchB
many tra=ers to5= us that they rea55y wante= such a goo= ban! to o4en a branch in
that area. These tra=ers have transactions of mi55ions in a =ay that is why it is not
easy for them to carry that amount of cash. #f MB- o4ens a branch in that areaB it
can ta!e ho5= of a55 those big accounts with a 5ot of =ai5y transactions.
>ob training is a very im4ortant as4ect that MB- is 5ac!ing in. New em45oyees are
recruite= =irect5y without any 4rior training or orientation. The resu5t is that they
=o not un=erstan= the organizationa5 structure an= cu5ture an= become frustrate=
in their start. This re=uces their 4ro=uctivity an= efficiency. #f such a training
4rogramme= is starte=B then the new em45oyees wou5= fee5 more comfortab5e an=
a=a4t easi5y to the environment.
&;5

Meezan Bank

Încărcat de

Informații document

Titlu original

Drepturi de autor

Formate disponibile

Partajați acest document

Partajați sau inserați document

Opțiuni de partajare

Vi se pare util acest document?

Este necorespunzător acest conținut?

Drepturi de autor:

Formate disponibile

Meezan Bank

Încărcat de

Drepturi de autor:

Formate disponibile

Table of Contents

-imite= com4any accounts3

S-ar putea să vă placă și