30945211 Final Report on Meezan Bank

5/21/2018 30945211 Final Report on Meezan Bank

1/73

INTERNSHIP REPORT ON

MEEZAN BANK ABBOTTABAD(1501)

BY

Mubasher Nazir

BBA HONS (Finance)

ROLL NO: 8!8

SESSION "##$%"#

HA'ARA NIERSITY MANSEHRA

HAZARA UNIVERSITY MANSEHRA.


2/73

In*ernshi+ Re+,r* ,n Meezan Ban- Abb,**aba.

This In*ernshi+ Re+,r* Is Sub/i**e. In Par*ia0 Fu01i00/en* O1 The Re2uire/en*s

F,r The 3e4ree O1 Bache0,r O1 Business A./inis*ra*i,n A5ar.e. B6 The Hazara

ni7ersi*6 Mansehra




3/73


A++r,7a0 Shee*

A++r,7a0 ,//i**ee

&9 E*erna0 Ea/iner

Mr. _____________________________________________

Signature_______________

"9 Su+er7is,r

Mr. ____________________________________________

Signature_______________

;9 Hea. ,1 3e+ar*/en*

Mr. ___________________________________________

Signature ________________



4/73

3e.ica*e. T,

My dearest Parents and My Respected Teachers h! "!ti#ate and enc!urage "e in e#ery aspect

!$ "y %i$e and a $e Specia% &riends h! ha#e 'een supp!rting and c!!perating ith "e t!

acc!"p%ish this tas(.



5/73

ABSTRAT

M!dern 'an(ing syste" as intr!duced int! the Mus%i" c!untries at a ti"e hen they ere

p!%itica%%y and ec!n!"ica%%y at %! e'') in the %ate *+th century. ,ith the passage !$ ti"e)

h!e#er) and !ther socio-economic forcesde"anding "!re in#!%#e"ent in nati!na% ec!n!"ic

and $inancia% acti#ities) a#!iding the interacti!n ith the 'an(s 'eca"e i"p!ssi'%e. As c!untries

'eca"e independent,the need t! engage in 'an(ing acti#ities 'eca"e una#!ida'%e and urgent.

-!#ern"ents) 'usinesses and indi#idua%s 'egan t! transact 'usiness ith the 'an(s) ith !r

ith!ut %i(ing it. This state !$ a$$airs dre the attenti!n and c!ncern !$ Muslim intellectuals. The

st!ry !$ interest$ree !rIslamic banking'egins here. The hist!ry !$ interest$ree 'an(ing can 'e

di#ided int! t! parts. &irst) hen it sti%% re"ained an idea/ sec!nd) hen it 'eca"e a rea%ity. The

%iterature !$ the peri!d 'egins ith e#a%uati!ns and ends ith atte"pts at $inding ays and

"eans !$ c!rrecting and !#erc!"ing the pr!'%e"s enc!untered 'y the e0isting 'an(s. 1uring the

%ast $e decades interest-free banking attracted "!re attenti!n) part%y 'ecause !$ the political

interestit created in Pa(istan and part%y 'ecause !$ the e"ergence !$ y!ung Mus%i" ec!n!"ists.

Mee2an 'an( is thefirst Islamic bankand is there$!re rec!gni2ed as !ne !$ the pi!neer 'an(s

that pr!"!tes Ri'a$ree 3interest $ree4 'an(ing acti#ities a%% !#er the c!untry. The 'an( has

de#e%!ped an e0tra!rdinary research and de#e%!p"ent capa'i%ity 'y c!"'ining in#est"ent

'an(ers) c!""ercia% 'an(ers) Shariah sch!%ars and %ega% e0perts t! de#e%!p inn!#ati#e) #ia'%e)

and c!"petiti#e #a%ue pr!p!siti!ns that n!t !n%y "eet the re5uire"ents !$ t!day6s c!"p%e0

$inancia% !r%d) 'ut d! s! ith the !r%dc%ass ser#ice e0ce%%ence hich !ur cust!"ers de"and)

a%% ithin the '!unds !$ Shariah.



6/73



7/73

TABLE OF ONTENTS

Ac(n!%edg"ents i

Pre$ace ii

E0ecuti#e Su""ary iii

HAPTER &

In*r,.uc*i,n *, Re+,r*

*.* 7ac(gr!und 8$ The Study 9*

*.: Purp!se 8$ The Study 9*

*.; Sc!pe 8$ The Study 9*

Research Meth!d!%!gy 9:

*.< Sche"e 8$ Study 9:

HAPTER "

In*r,.uc*i,n *, Ban-in4 #;

:.* E#!%uti!n 8$ 7an(ing 9=

:.: &air%y -r!rh 9=

:.; 3*>:? *@?> 7 4 9=

:.= >?@ 7 9=

:.< M!dern 7an(ing 9=

:.> Type 8$ 7an(ing 9 apita% can 'e In#ested in a 7usiness #enture **

;.@ Ri'a **

;.? !""ercia% interest and usuey *:

HAPTER =

His*,r6 O1 Meezan Ban- > &$

=.* *++@:99+ *

=.; !rp!rate Va%ues *>

=.= 7ac(gr!und Re#ie *+

HAPTER $

,/+rehensi7e Business S,0u*i,n ""


9/73

HAPTER%!

Meezan Tea/ "!

>.* Treasury And &inancia% Intuiti!n :?

>.: Ec!n!"ic 8ur Vie :?

HAPTER

?ha* I Ha7e Learn As A In*ernee ;"

?.* Acc!unt 8pening ;

?.; erti$icate 8$ Is%a"ic In#est"ent ;+

?.= In#est In erti$icate 8$ Is%a"ic In#est"ent ;+

?.< a%% 1ep!sit Receipt =9

?.> he5ues &!r !%%ecti!n =:

?.@ @thAnd ?th,ee(s At Mee2an 7an( =;

HAPTER

+.: Rati! Ana%ysis


10/73

,nc0usi,ns !#

**.* &inancings >9

**.: Ter" Structure 8$ In#est"ent 7y :9 Is%a"ic 7an( )*+?? >*

HAPTER &"

Rec,//en.a*i,n !!

*:.* Per$!r"ance Appraisa% >>

*:.: Pr!per !' R!tati!n >>

*:.; &air 7ene$its >>

*:.= 8#er%!ad 8$ ,!r( >@

*:.< redi'i%ity 8$ ust!"ers >@

*:.> ust!"er Re%ati!nship >@

*:.@ E"p!er"ent 8$ E"p%!yees >?

*:.? Mar(eting u%ture >?

*:.+ Hea%th Acti#ities >?

Re$erences @9

7i'%i!graphy @*

Appnde0 @ ti"es. I ha#e a%s! "enti!ned the pr!ducts hich the 'an( is

!$$ering t! its cust!"ers and then I ha#e gi#en a 'rie$ !#er#ie !$ di$$erent p!%icies !$ the 'an(.

In third chapter I ha#e discussed a'!ut the c!ncept !$ Is%a"ic 'an(ing acc!rding t! !ur re%igi!n.

this chapter 'egins ith the Is%a"ic $inance and the ec!n!"ic gr!th !$ Is%a"ic 'an(ig.$urther I

ha#e discussed the g!a%s !$ Is%a"ic 'an(ing.) and Is%a"ic the!ry ha#e a%s! discussed

Mushara(ah G Mudara'ah and its uses .In $!rth chapter there is the hist!ry !$ Mee2an 'an() its

!rigin and 'asics) #isi!n and "issi!n state"ent) the c!rp!rate #a%ues and the !rgani2ati!na%

structure.

In thchapter the 'usiness !$ "ee2an 'an( is discussed the pr!ducts and ser#ices !$ the

"ee2an 'an( are discussed in this chapter. this chapter a%s! te%%s us a'!ut the 'ranch net!r( !$

Mee2an 'an(. $urther I ha#e discussed the "ee2an tea". the @ thchapter is the detai% !$ "y h!%e



14/73

internship that hat I ha#e %earned in ? ee(s the chapter is 'ased !n the day 'y day

per$!r"ance. In the ?thchapter I ha#e discussed a'!ut $inancia% ana%ysis. I d! the c!""!n si2e

ana%ysis !$ the and c!"pany $!r this purp!se I ta(e the data !$ %ast $i#e years. Then I d! the rati!

ana%ysis and in %ast I ana%y2e the net inc!"e) EAT) dep!sits) E7IT) %!ans and ad#ances !$ the

'an( during %ast $i#e years. In +thchapter I ha#e gi#en the s!t ana%ysis !$ Me2an 7an(. S!t

ana%ysis is d!ne (eeping in the #ie hat I ha#e seen and $e%t in the 'ranch during "y intership.

In the *9thchapter I ha#e gi#e the c!nc%usi!ns !$ "y internship that the Mee2an 'an( is n!

ha#e a g!!d reputati!n in "ar(et.

In **th chapter I ha#e gi#e s!"e pers!na% rec!""end i!ns as h! 'an( can i"pr!#e its

per$!r"ance and then I ha#e rite the c!nc%usi!n a'!ut "y internship as e%% as rep!rt. And in

%ast I "enti!ned s!"e i"p!rtant re$erences and e' sights $r!" here I get the he%p during

preparati!n !$ "y rep!rtrnship.



15/73

HAPTER &

INTRO3TION TO REPORT

&9&) Bac-4r,un. ,1 s*u.6 :

Mee2an 7an( Btd has gr!n t! 'ec!"e the %argest Is%a"ic 'an( in the c!untry. The 'an(

c%ai"s t! 'e the Pa(istan pre"ier Is%a"ic 'an( deter"ined t! set higher standards !$

achie#e"ents . The 'an( c!"es in t! e0istence 'y the !rder pr!"u%gated 'y g!#ern!r genera%

and standard $uncti!ning $r!" N!# :9) *++@

Mee2an 7an( is the "aD!r 'usiness partner !ur g!#ern"ent !$ Pa(istan ith specia% e"phasis !n

$!stering Pa(istan ec!n!"ic gr!th thr!ugh aggressi#e and 'a%anced %ending p!%ices)

techn!%!gica%%y !riented pr!ducts and ser#ices !$$ered thr!ugh its %arge net!r( !$ :9;

'ranches .

&9") Pur+,se ,1 s*u.6 :

The purp!se !$ study is t! get "!re (n!%edge a'!ut the structure and $uncti!n !$ the

depart"ent !$ M7B has c%ear picture !$ its $inancia% hea%th in particu%ar . &!r this purp!se a

thr!ugh $inancia% ana%ysis thr!ugh c!""!n si2ing and rati! ana%ysis !$ the 'an() is carried !ut t!is t! Dudge the actua% $inancia% standing !$ the 'an( .

S!%id rec!""endati!ns are gi#en !n a%% aspects t! $urther i"pr!#e the $uncti!ning !$ the 'an( .

&9;) Sc,+e ,1 *he s*u.6 :

The ti"e durati!n !$ eight ee(s is a 5uite insu$$icient $!r c!nducting c!"p%ete study and



16/73

!'ser#ati!n !$ %arge 'an(. 7eing a specia%i2ing in $inance) the "ain $!cus !$ study is its $inancia%

aspects inc%uding the $inancia% hea%th !$ the 'an( and its c!"paris!n ith pre#i!us year

per$!r"ance .

S!"e !$ the pr!'%e"s $aced 'y the 'an( ha#e 'een identi$ied and s!"e re"edies ha#e a%s! 'een

suggested t! !#erc!"e these pr!'%e"s and i"pr!#e the pre#ai%ing $inancia% c!nditi!n !$ the

'an( .

&9=) Research Me*h,.,0,46:

M7B is !ne !$ the %eading and esta'%ishes 'an( !$ the c!untry. It has a %arge step !$

depart"ents and a 'ig !rgani2ati!na% structure. ,hi%e !r(ing in a 'ranch !$ the 'an( ) it is n!t

p!ssi'%y t! th!r!ugh%y c!#er a%% the areas !$ the 'an( ) as it re5uires "!re ti"e and eight ee(s

are in n! ay su$$icient t! d!.

1i$$erent t!!%s and techni5ues ere use t!gether re%e#ant in$!r"ati!n $!r riting the rep!rt $irst

inter#ie ere ta(en $r!" the "anager and !ther sta$$ "e"'er !$ the 'an(. &!r this purp!se

s!"e unstructured 5uesti!n ere as(ed and depending !n the" s!"e c!nc%usi!n ere "ade.

Sec!nd%y) the %iter D!urna% $r!" regi!na% head 5uarter and sta$$ c!%%ege ere a%s!re#ieed hich ga#e #ery use$u% in$!r"ati!n a'!ut the $uncti!ning !$ the 'an(.

I a%s! #isited the M7B !$$icia% e'site i.e. www.meezanbank.com hich ga#e #ery use$u%

in$!r"ati!n a'!ut $uncti!ning !$ the 'an(.

My pers!na% !'ser#ati!ns during the sh!rt stay a%s! he%ped "e t! c!%%ect a'!ut this speci$ic

'ranch.

&9$) Sche/e ,1 s*u.6 :

The sche"e !$ study !$ the rep!rt is as under .

* Part !ne is a'!ut the intr!ducti!n !$ the study) hich inc%udes its 'ac(gr!und) purp!se and

sc!pe !$ the study research "eth!d!%!gy and the sche"e !$ study .

: Part t! is a'!ut the %iterature re#ie) !$ the 'an( ) the depart"entati!n and its $uncti!n) and

detai% study !$ the credit depart"ent . Part three is a'!ut the $inancia% ana%ysis !$ the 'an()



17/73

hich inc%udes the rati! ana%ysis) c!""!n si2e ana%ysis) c!"parati#e ana%ysis and inde0

ana%ysis .

; Part $!ur is inc%udes S,8T ana%ysis) pr!'%e"s and rec!""endati!ns prescri'e $!r the 'an(

t! $urther i"pr!#es its $uncti!ning .

HAPTER "

INTRO3TION TO BAN@INC

?HAT IS BAN@D

7e$!re g!ing t! start e "ust (n! that hat is 'an( Bi(e "any !ther su'Dects and s!cia%

sciences n! any precise de$initi!n can 'e gi#en $!r the study !$ 'an(ing a%s!. 1i$$erent auth!rs

ha#e de$ined and descri'ed this su'Dect) (eeping in #ie the particu%ar $uncti!ns !$ 'an(ing.

Mr. Paget says JN! !ne and n! '!dy c!rp!rate can 'e a 'an(er h! d!es n!t !penK

* urrent Acc!unt

: Pays che5ues dran up!n hi"

; !%%ects che5ues $!r the cust!"ers

Mr. Fin%y says J7an( is an instituti!n hich recei#es dep!sits and ad#ances %!ansL.

The de$initi!n %aid d!n in the 7an(ing !"panies Act *+>: is J7an(ers "eans a pers!n)

transacting the 'usiness !$ accepting $!r the purp!se !$ %ending !r in#est"ent) !$ dep!sits !$

"!ney $r!" pu'%ic) repaya'%e !n de"and !r !therise and ithdraa%s 'y che5ues) dra$ts !r

!rders !r !therise and inc%udes any P!st 8$$ice Sa#ing 7an(.L

In #ie !$ the a'!#e de$initi!ns) in si"p%e !rds a 'an( can 'e de$ined as an instituti!n dea%ing

in "!ney) accepting dep!sits and ad#ancing %!ans.

3e1ini*i,n

There are di$$erent !pini!ns a'!ut the !rigin !$ the !rd J7an(L. Acc!rding t! s!"e auth!rs the



18/73

!rd 'an( is deri#ed $r!" Batin !rd J7ancusL !r J7an5ueL hich "eans a 'ench. The

e0p%anati!n !$ this !rigin is attri'uted t! the $act that the es in B!"'ardy transected the

'usiness !$ "!ney e0change !n 'enches in the "ar(et p%ace. ,hen the 'usiness $ai%ed) the

pe!p%e destr!y the 'ench. Incidenta%%y the !rd 'an(rupt is said t! ha#e 'een e#!%#ed $r!" this

practice.

Ori4in:

The !pp!nents !$ this !pini!n argue that i$ it as s!) then h! is it that the Ita%ian

"!neychangers ere ne#er ca%%ed 7unchier in the "idd%e ages. 8ther auth!rities h!%d the

!pini!n that 7an( is deri#ed $r!" -er"an !rd 'ac( hich "ean D!int st!c( $und. Bater !n)

hen the -er"an !ccupied "aD!r part !$ Ita%y) the 7ac( as ita%ici2ed int! 7an(.

"9&) E7,0u*i,n ,1 ban-in4

The !rd 7an( deri#ed $r!" the !rds J 'ancus !r 'an5ue hich "eans a 'ench .

The !rd 'an( is deri#ed $r!" the -er"an !rd 7an( hich D!int St!c( &und .

"9") Ear06 4r,5*h

7a'y%!nians h! de#e%!ped 'an(ing syste" as ear%y as :999 7 .Te"p%es !$ 7a'y%!n ere usedas 7an(s .

"9;) &!"8 &8! B 9

(ing Ha""ura'i the $!under !$ the 7a'y%!nian e"pire de up a c!de here in he %aid d!n

standard uses !$ pr!cedure $!r 'an(ing !perati!ns 'y te"p%es and great %and !ners .

Su"erians ) 7a'y%!nians) Hittites and Assyrians standardi2ed the #a%es !$ g!!ds in si%#er )

c!pper) 'r!n2e !r e%ectru" .

"9=) !8 B9

-yges ) (ing !$ Bydia) casted e%ectru" ing!ts !$ identica% shape and uni$!r" eight. As an

!$$icia% guarantee !$ #a%ues in >?@ 7.

In -reece) the te"p%es !$ Ephesus and 1e%phi ere the 'iggest 7an(s .



19/73

The ear%iest (n!n pu'%ic 'an( is said t! 'e the 'an( !$ Venice hich as esta'%ished in **


20/73

The c!""ercia% 'an(s recei#e $r!" the genera% pu'%ic hich are repaya'%e !n de"and up!n

ritten !rders !$ dep!sit!rs. The c!""ercia% 'an(s are a%s! distinguished $!r pr!#iding sh!rt

ter" $inance t! trade ) c!""erce and industry t! ena'%e these sect!r t! e0pand their

pr!ducti#e acti#ities .

"9 Merchan* ban-s :

Merchant 'an(s are th!se hich ha#e 'een "ain%y $inancing the d!"estic and internati!na%

trade in united (ing 1!" . 1uring the %ate *?thand *+thcentury the trade 'eteen c!untries

as $inanced 'y 'i%%s !$ e0change 'y e%% reputed "erchant h!uses $!r hich they !u%d

charge a c!""issi!n $!r their ser#ice .

;9Sa7in4 Ban-s :

The 'asic purp!se !$ these 'an(s is t! incu%cate the ha'it !$ sa#ings in the pe!p%e . The

sa#ing 'an( dep!sits are n!t repaya'%e up!n the ritten !rders !$ the dep!sit!r 'ut the

dep!sit!r !r his agent has t! appear pers!na%%y at sa#ing 'an( t! "a(e ithdraa% ) and $!r

this purp!se he "ust present a pass '!!() a certi$icate !$ dep!sit !r s!"e si"i%ar d!cu"entst! pr!#e his right t! recei#e pay"ent.

=9 M,r*4a4e Ban-s :

These 'an(s "ain%y dea% in %!ans $!r the ac5uisiti!n !r c!nstructi!n !$ rea% estate against the

security !$ "!rtgages . Sa#ing and %!ans ass!ciati!ns and $ar" _%!an ass!ciati!ns are s!"e

!$ the e%% (n!n $!r"s !$ the "!rtgage 'an(s .

$9 ,nsu/er Ban-s :

These 'an(s pr!#ides $inance $!r purchasing c!nsu"pti!n g!!ds $!r the use !$ the '!rr!ers

. sa%es $inance and credit uni!ns are s!"e !$ the p!pu%ar $!r"s !$ c!nsu"er 'an(s

!9 In7es*/en* Ban-s :



21/73

The in#est"ent 'an(s asset 'usiness h!uses and g!#ern"ent '!dies t! raise "!ney thr!ugh

the sa%e !$ st!c(s and '!nds $!r usua%%y %!ng ter" purp!ses .

9 3e7e0,+/en* Ban-s :

The 'an(s ha#e 'een esta'%ished t! pr!#ide %!ngter" de#e%!p"ent $inance t! the trade)

c!""erce) and industry.

89 ,,+era*i7e Ban-s :

These are the 'an(s esta'%ished and registered as a c!!perati#e #enture t! pr!#ide 'an(ing

$aci%ities t! the "e"'ers !$ the c!!perati#e .


22/73

'an(ing syste" as $uncti!ning satis$act!ri%y ith as "any as *=)

"9


23/73

HAPTER ;

INTRO3TION TO ISLAMI BAN@INC

;9& Is0a/ic Finance

Is%a"ic $inance as practiced pred!"inant%y in the Mus%i" !r%d thr!ugh!ut the "idd%e Ages)

$!stering trade and 'usiness acti#ities ith de#e%!p"ent !$ credit . In Spain and the

Mediterranean and 7a%tic states ) Is%a"ic "erchants 'eca"e indispensa'%e "idd%e"an $!r trading

acti#ities. In $act Eur!pean $inancier and 'usiness"en %ater ad!pted "any c!ncepts) techni5ues)

and instru"ents !$ Is%a"ic $inance. The $inancia% syste" is $!unded !n the a's!%ute pr!hi'iti!n

!$ the pay"ent !r receipt !$ any predeter"ined. granted rate !$ return .this c%!ses the d!!r t! the

c!ncept !$ interest and prec%udes the use !$ de't 'ased instru"ent . The syste" enc!urages ris(

sharing pr!"!tes entrepreneurship) disc!urages specu%ati#e 'eha#i!r) and e"phasi2es the

sanctity !$ c!ntracts .

;9" The Is0a/ic Ec,n,/ic S6s*e/

8ne !$ the $!r"s !$ capita%is") hich has 'een $%!urishing in n!n Is%a"ic s!cieties ) is the

interest 'ased in#est"ent . There are n!r"a%%y t! participant in such transacti!n . !ne is the

in#est!r h! pr!#ides capita% !n %!an and !ther "anager h! run the 'usiness . The in#est!r has

n! c!ncern hether the 'usiness run in t! pr!$it !r %!ss he aut!"atica%%y get interest .

3is*ribu*i,n O1 ?ea0*h

The distri'uti!n !$ ea%th is !ne !$ "!st i"p!rtant and c!ntr!#ersia% su'Dect c!ncerning the

ec!n!"ic %i$e !$ "an hich has gi#en 'irth t! g%!'a% re#!%uti!n in t!day6s !r%d and a$$ectede#ery sphere !$ hu"an acti#ity $r!" internati!na% p!%icies d!n t! the pri#ate %i$e !$ the

indi#idua% .

;9;The I/+,r*ance O1 The Ec,n,/ic C,a0s

Is%a" is !pp!sed t! "!nasticis") and #ies the ec!n!"ic acti#ities !$ "an 5uite %a$u%)



24/73

"erit!ri!us and s!"eti"es e#en !'%igat!ry and necessary . it appr!#es !$ the ec!n!"ic pr!gress

!$ "an ) and c!nsider %a$u% !r righte!us %i#e%ih!!d an !'%igati!n !$ the sec!ndary !rder .

N!tithstanding a%% thus) it is n! %ess truth that it d!es n!t c!nsider ec!n!"ic acti#ity t! 'e the

'asic pr!'%e" !$ "an .

;9= a+i*a0is* ie5 Is0a/ic *he,r6 :

& a+i*a0 :

1e$ined as Jthe pr!duced "eans !$ pr!ducti!nL a c!""!dity hich has a%ready

underg!ne !ne pr!cess !$ hu"an pr!ducti!n) and is again 'eing used as a "eans pr!cess !$

pr!ducti!n .

" Lab,r :

That is t! say e0erti!ns !n part !$ "an .

; Lan. :

1e$ined as Jnatura% res!urcesL th!se thing hich are 'eing used as "eans !$

pr!ducti!n ith!ut ha#ing pre#i!us%y underg!ne "y pr!cess !$ hu"an pr!ducti!n .

= En*re+reneur Or Or4aniza*i,nK

The $!urth $act!r that 'rings t!gether the !ther three $act!rs) e0p%!its the" and 'earsris( !$ pr!$it and %!ss in pr!ducti!n .

;9$) The Is0a/ic ie5 :

&r!" Is%a"ic p!int !$ #ie there are t! (inds !$ pe!p%e h! ha#e right t! ea%th .



25/73

< Th!se h! ha#e pri"ary right that is t! say) th!se h! ha#e a right t! ea%th direct%y in

c!nse5uence !$ participati!n in the pr!ducti!n. In !ther !rds it is th!se #ery $act!rs !$

pr!ducti!n hich ha#e ta(en a part in the pr!cess !$ pr!ducing s!"e (ind !$ ea%th .

> Th!se h! ha#e a sec!ndary right) that is t! say) th!se h! ha#e n!t ta(en a direct part in

the pr!cess !$ pr!ducti!n) 'ut it has 'een enD!ined up!n the pr!ducers t! "a(e the" c!

sharers in their ea%th .

;9!a+i*a0 an Be In7es*e. In a Business en*ure

& Pri7a*e Business

The "an h! in#est capita% "ay hi"se%$ run the 'usiness ith!ut the he%p !$ any partners !r

shareh!%ders. In this case the return hich he gets "ay 'e ca%%ed pr!$it $r!" the %ega% !r

p!pu%ar p!int !$ #ie) 'ut in ec!n!"ic ter"s) this reard !u%d 'e "ade up !$ .

: Pr!$it in as "uch as capita% has 'een in#ested .

; ,ages) as earning !$ "anage"ent .

= Par*nershi+G

The sec!nd $!r" !$ in#est"ent is that se#era% pers!ns "ay D!int%y in#est capita%) D!int%y

"anage the 'usiness and D!int%y 'ear the ris( !$ pr!$it and %!ss. In the ter"in!%!gy !$ the

&i5h) such a #enture is ca%%ed Shir(atA5d !r Partnership in c!ntract .

* ,%,+era*i,n O1 a+i*a0 An. Or4aniza*i,n (Mu.arabah4

The third $!r" !$ in#est"ent is that !ne pers!n "ay in#est capita% hi%e an!ther "ay "anage

the 'usiness) and each "ay ha#e a share in the in the pr!$it . In the ter"in!%!gy !$ &i5h) it is

ca%%ed Mudara'ah.The pers!n h! in#est his capita% Ra''u%Ma% i%% get his share in the

$!r" !$ pr!$it hi%e the pers!n h! has actua%%y "anaged the 'usiness i%% get it in the $!r"

!$ ages .



26/73

;9) Riba

" 3e1ini*i,n ,1 Riba

The !rd Ri'a "eans e0cess) increase !r additi!n) hich c!rrect%y interpreted acc!rding t!

Shariah ter"in!%!gy) i"p%ies any e0cess c!"pensati!n ith!ut due c!nsiderati!n .

; This de$initi!n !$ Ri'a is deri#ed $r!" Curan and is unani"!us%y accepted 'y a%% Is%a"ic

sch!%ars

.

= TYPES OF RIBA

There are t! types !$ Ri'a .

*. Ri'a An Nasiyah

: .Ri'a A% &ad%

Riba An Nasi6ah :

1e$ined as e0cess) hich resu%t $r!" predeter"ined interest hich a %ender recei#es

!#er and a'!#e the princip%e 3Ras u% Maa%4.

& Riba A0 Fa.0 :

1e$ined as e0cess c!"pensati!n ith!ut any c!nsiderati!n resu%ting $r!" a sa%e !$ g!!ds .

Ri'a A% &ad% i%% 'e c!#ered in greater detai% %ater .

;98) ,//ercia0 In*eres* An. sur6 :

In *@thcentury t! ne technica% ter"s !$ interest e"erged a$ter the esta'%ished !$ 'an(ing

syste".

" Tiar*i S,,. :

Interest paid !n %!an ta(en $!r pr!ducti#e pr!$ita'%e purp!ses .

; Sar1i S,,. :

Interest paid !n %!an ta(en $!r pers!na% need and e0penses .

Is0a/ic ban-in4:



27/73

The interest $ree syste" en#isages the gain$u% use !$ !ne6s sa#ing ith !ther !n the 'asis !$

pr!$it and %!ss sharing in a de$ined "anner . E$$ecti#e $r!" an 9*) *+?*) the Nati!na%i2ed

c!""ercia% 'an(s and n! a%% !ther c!""ercia% 'an(s in Pa(istan ha#e intr!duced the

pr!$it and %!ss sharing 3PBS4 1ep!sit Sche"e $eatures !$ hich as under .

= PBS Sa#ing Acc!unts

< PBS Ter" 1ep!sit Acc!unts

> In#est"ent 8$ PBS 1ep!sits

Mushari-ah Financin4 :

A 'usiness re%ati!nship esta'%ished under a c!ntract 'y the "utua% c!nsent $ parties $!r

sharing !$ pr!$it and %!sses arising a D!int enterprise #entureL

Iarah ( Leasin4

IDara as Jan agree"ent here'y a pers!n agrees t! trans$er the usu$ruct !$ a pr!perty t!

an!ther pers!n $!r a "utua%%y agreed rent) ter"s) and c!nditi!ns hi%e the !nership !$ the

c!rpus !$ the %eased pr!perty re"ain #ested in %esser .

Mu.arabah Financin4 :

Mudara'ah is a 'usiness in hich a pers!n participates ith his "!ney hi%e the !ther

ith his s(i%% !r e$$!rts !r '!th his s(i%% and e$$!rts . NIT Units and Mutua% &unds are the

'est e0a"p%e !$ M!dara'a in Pa(istan .

T6+es O1 Mu.arabah :

* A% Mudara'ah A% Mu5ayyadah

: A% Mudara'ah A% Mut%a5ah

&9 A0 Mu.arabah A0 Mu2a66a.ah :

Particu%ar 'usiness !r particu%ar p%ace $!r the the "udari') in hich case he sha%%

in#est the "!ney in the particu%ar 'usiness !r p%ace . This is ca%%ed A% Mudara'ah A%



28/73

Mu5ayyadah .

:. A0 Mu.arrabah A0 Mu*0a2ah:

Ra'u%"aa% gi#es $u%% $reed!" t! "udari' underta(e hate#er 'usiness he dee"s) $it

this is ca%%ed A% Mudara'ah A% Mut%a5ah .

ses O1 Mushara-ah Mu.arabah :

& Asse* Si.e Financin4 :

&9 Sh!rt G "ediu" G %!ng ter" $inancing

"9 Pr!Dect $inancing

;9 7ridge $inancing

=9 E0p!rt $inancing

$9 ,!r(ing capita%

Liabi0i*6 si.e Financin4 :

&9 urrent G Sa#ing G Mahana A"dani G In#est"ent .

"9 Inter 7an( Bending G '!rr!ing .

;9 Ter" &inance erti$icate .

Is*isna :

J Ad#ances pay"ent !$ g!!ds t! 'e "anu$actured asse"'%ed) 'ui%t !r c!nstructed) !r caused s!

t! 'e d!ne) at an agreed price in hich the g!!ds ith speci$icati!ns are t! 'e de%i#ered at 'e

de%i#ered at a speci$ied $uture date and p%ace .L

& Sa0a/ :3Ad#ances pay"ent against de%i#ery4 J A sa%e here'y the se%%er agrees t! supp%y speci$ied

g!!ds t! a 'uyer 'y a $uture date in c!nsiderati!n !$ price paid in ad#ances at a ti"e speci$ied in

the c!ntract .L



29/73

HAPTER =

HISTORY OF MEE'AN BAN@

=9&) MEE'AN BAN@

T! 'e a pre"ier Is%a"ic 'an( !$$ering a !nest!p sh!p $!r inn!#ati#e #a%ueadded pr!duct

and ser#ices t! !ur cust!"ers ithin the '!unds !$ Shariah) hi%e !pti"i2ing the sta(e h!%der6s

#a%ue thr!ugh an !rgani2ati!na% cu%ture 'ased !n %earning) $airness) respect $!r indi#idua%

enterprises and per$!r"ances .

&


30/73

Inaugurates the ne Is%a"ic c!""ercia% 7an( at a $!r"a% cere"!ny in Farachi.

"##;%%%%%"##< :

" Mee2an 7an( esta'%ished itse%$ a pi!neer !$ Is%a"ic 7an(ing in Pa(istan and

ide range !$ pr!ducts are de#e%!ped .

; The state 7an( esta'%ishes a dedicated Is%a"ic 'an(ing de#e%!p"ent 'y

"erging the Is%a"ic ec!n!"ic di#isi!n .

= Mee2an 'an( 'ec!"es the $irst cust!"er !$ Is%a"ic issuance 'y signing the

$irst "e"!randu" !$ understanding M8U ith pa( Fuait Ta(a$a%

c!"pany %td .

$ Mee2an 'an(s 'ec!"es the $irst Is%a"ic 'an( t! intr!duce ?a" t! ?p"

'an(ing at se%ected 'ranches in Farachi

! Mee2an 'an(s !pen up its *99th'ranch

,ith *>> 'ranches in =9 cities acr!ss Pa(istan. ,!r(s start !n the

c!nstructi!n !$ Mee2an 7an(s ne Head 8$$ice 'ui%ding

.

=9") Meezan Ban- isi,n an. Missi,ns:

& isi,n:

Esta'%ished Is%a"ic 'an(ing as 'an(ing !$ $irst ch!ice t! $aci%itate i"p%e"entati!n !$ an

e5uita'%e ec!n!"ic syste") pr!#iding a str!ng $!undati!n $!r esta'%ishing a $air and Dust

s!ciety $!r "an(ind .

" Missi,n s*a*e/en* :

T! 'e a pre"ier Is%a"ic 'an( !$$ering a !nest!p sh!p $!r inn!#ati#e #a%ueadded pr!duct

and ser#ices t! !ur cust!"ers ithin the '!unds !$ Shariah) hi%e !pti"i2ing the sta(e

h!%der6s #a%ue thr!ugh an !rgani2ati!na% cu%ture 'ased !n %earning) $airness) respect $!r

indi#idua% enterprises and per$!r"ances .



31/73

=9;) ,r+,ra*e a0ues :

; ,re a0ues :

Shariah !"p%iance) Integrity) Pr!$essi!na%is") Ser#ice E0ce%%ence) S!cia%Resp!nsi'i%ity .

= Bran. Pers,na0i*6 :

A s!'er and esta'%ished) str!ng) e"pathic) pr!$essi!na% pers!n/ h! is an e0tre"e%y %!ya% and

dependa'%e $riend and 'usiness partner) and is c!""itted t! !$$ering c!"prehensi#e #a%ue

'ased Shariah c!"p%iant $inancia% s!%uti!ns .

$ S*a11 :

!""itted) "!ti#ated and pr!$essi!na%%y trained e"p%!yees h! are e"pathic t! their

cust!"er s needs .

Re0a*i,nshi+s :Are %!ng te" ith Mee2an 7an( . e rec!gni2e and !ur cust!"er6s needs

and stri#e t! ensure their $u%$i%%"ent . A%% cust!"ers are treated pr!$essi!na%%y and in a

$riend%y

"anner .

It is !ur endea#!r t! ensure that they recei#e e$$icient and ti"e%y ser#ice .

The Mee2an 7an( e0perience is a uni5ue !ne .

Are %!ng te" ith Mee2an 7an( . e rec!gni2e and !ur cust!"er6s needs and stri#e t!

ensure their $u%$i%%"ent . A%% cust!"ers are treated pr!$essi!na%%y and in a $riend%y

"anner .

It is !ur endea#!r t! ensure that they recei#e e$$icient and ti"e%y se. The Mee2an 7an(

e0perience is a uni5ue !ne .



32/73

RGANIZATI N CHART



33/73

=9= BA@CRON3 REIE? :

AB Mee2an 7an( started its c!""ercia% !perati!ns in sept in *++@ and g!t its schedu%ed

c!""ercia% status in May :99: Mee2an 7an( Bi"ited .The s!undness !$ the 7an( ) hich is

n!r"a%%y "easured 'y re$erence t! the Tier * capita% Ade5uacy Rati!) is a'!#e ?9. The

internati!na%%y accepta'%e standard) hich is a%s! the "ini"u" re5uire"ent !$ the state 7an(

!$ Pa(istan) is ?. M7B capita% ade5uacy rati! p%aced the 'an( at the t!p !$ the industry .

Mee2an 7an( Bi"ited is the $irst schedu%e Is%a"ic 'an( in Pa(istan) hich has 'een

%icensed 'y the state 7an( !$ Pa(istan t! !perate as an Is%a"ic !""ercia% 'an( .The 'an(

pirates strict%y under the princip%es !$ Is%a"ic Shariah . !ur in dependa'%e Shariah

Super#is!ry '!ard) c!"prising !$ internati!na%%y ren!ned Is%a"ic sch!%ars) regu%ar%y

re#ies the 'an(6s acti#ities .

> ustice 3Retd4 Muha""ad Ta5i Us"ani 3Pa(istan4 hair"an

@ 1r. A'du% Sattar -huddah 3Suadia Ara'ia4

? Shi(h Essa" M. Isha5 37ahrai"4

+ 1r. Muha""ad I"ran Us"ani 3Pa(istan4



34/73

HAPTER $

OMPREHENSIE BSINESS SOLTIONS

Mee2an 7an( has !ne !$ the %argest !$$ering !$ Shariah dri#en pr!ducts and ser#ices under !ne

r!!$ .The 7an( has de#e%!ped an e0tra!rdinary research and de#e%!p"ent capa'i%ity 'y

c!"'ining in#est"ent 'an(ers) c!""ercia% 'an(ers shariah sch!%ars .The intr!ducti!n !$ "any

pr!ducts hich satis$y 'usiness needs and "eets !r%dc%ass ser#ice standards .

$9& ,r+,ra*e An. ,//ercia0 Ban-in4:Mura'aha O i"p!rt E0p!rt &aci%ities

Mushara(ah O guarantees

1i"inishing Mushara(ah O 7i%% 1isc!unting 'y using 1!%%ar Sa%a" !r Mura'ah

IDarah O Is%a"ic E0p!rt re$inance

Mudara'ah

IstiDrar

Istisna

Re*ai0 Ban-in4 :

Rupee Sa#ing Acc!unt certi$icate !$ Is%a"ic In#est"ent

urrent Acc!unt M!nth%y Mudara'ah erti$icate

1!%%ar Sa#ing Acc!unt 1!%%ar Mudara'ah certi$icate

Far!'ari Muna$a Acc!unt Mee2an A"dan erti$icate

Mee2an Is%a"ic Instituti!n 1ep!sit Acc!unt Mee2an Pr!#idence erti$icate

,nsu/er Financin4 :

ar IDarahIs%a"ic Aut! &inance

Easy H!"e O Is%a"ic H!using &inance



35/73

"= Ban-in4 :

ATM G 1e'it ard

ATM !ut%ets

SMS A%erts

S+ecia0 Ban-in4 :

Badies 7an(ing ?a" t! ?p" 7an(ing

Mee2an 'an( c!ntinue t! educate the "ar(et 'y !$$ering #ari!us 'usiness #a%ue pr!p!siti!ns in a

transparent and !pen "anner) in additi!n t! addressing c!""!n%y as(ed 5uesti!ns a'!ut Is%a"ic

7an(ing and h! it di$$ers $r!" the c!n#enti!na% syste" .

In7es*/en* Ban-in4 J Sharaiah A.7is,r6 Ser7ices :

Syndicati!n Structuring Su(u( Structuring

Pri#ati2ati!n Mandates c!n#enti!na% 7an( !n#ersi!n Ad#is!ry Ser#ices

Mergers Ac5uisiti!ns Is%a"ic 7an(ing Training

$9" LARCEST BRANH NET?OR@Mee2an 7an( has esta'%ished *99 'ranches in ;* cities acr!ss Pa(istan .

This is a "i%est!ne that is n!t !n%y the success st!ry !$ Mee2an 7an( 'ut a%s! c!ntinuing success

st!ry !$ Is%a"ic 7an(ing in Pa(istan . A%% 'ranches pr!#ides a%% the $aci%ities t! cust!"ers

Mee2an 7an( c!ntinue t! 'ui%d its #isi!n The cities in hich 'an( present%y !perates are as

$!%%!s .



36/73

S,u*hern Re4i,n en*ra0 Re4i,n N,r*hern Re4i,n

Hydera'ad 7ahaa%pur A''!tta'ad

Farachi 1era -ha2i Fhan 1era Is"ai% (han

Na'shah &aisa%a'ad Peshaar

Cuetta -uDrana%a

Su((ur Fasur

Tand!A%%ah OYar Is%a"a'ad

S,u*hern Re4i,n en*ra0 Re4i,n N,r*hern Re4i,n

Mu%tan Rahi" Yar Fhan Mandi 7ahauddin Sat

Sadi5a'ad Raa%pindi

Sarg!dha

Sahia%

Shei(upura

Sia%(!t

$9;) FINANIAL BA@INC:

Shareh,0.in4 s*ruc*ure K Rs9in /i00i,n

Pa(istan Fuait In#est"ent ! ;9 *)=@?

N!!r Fuait In#est"ent ! => :):=:

Is%a"ic 1e#e%!p"ent 7an() eddah + =

$9=) SERIE ALITY :

Mee2an 7an(6s ser#ice "issi!n is K



37/73

J T! de#e%!p a c!""itted ser#ice cu%ture hich ensures the c!nsistent de%i#ery !$ !ur pr!ducts

and ser#ices) ithin the highest 5ua%ity ser#ice para"eters) pr!"!ting Is%a"ic #a%ues and

ensuring rec!gniti!n and a 5ua%ity 'an(ing e0perience t! !ur cust!"ersL.

$9$) AI3S ONEPT OF ISLAMI BAN@INC:

J,e "ust !r( !ur sestiny in !ur !n ay and present t! the !r%d an ec!n!"ic syste" 'ased

!n true Is%a"ic c!ncept !$ e5ua%ity !$ "anh!!d and s!cia% DusticeL.

$9!) RIBAFREE BAN@INC OBETIES:

: T! pr!#ide Shariah c!"p%iant pr!duct and ser#ices as a $easi'%e and

; #a%ua'%e a%ternati#e t! c!n#enti!na% interest 'ased $inance.

= T! c!ntinue e0p%!ring de#e%!ping and de%i#ering ne pr!ducts and

< Ser#ices that $u%$i%% a%% 'an(ing needs !$ !ur cust!"ers

> T! achie#e sustaina'%e gr!th) "a0i"u" "ar(et share) and high

@ Pr!$ita'i%ity in a%% areas !$ 'an(ing and !ther a$$i%iated

? Is%a"ic $inancia% ser#ices .

+ T! "aintain a's!%ute !r%d c%ass ser#ice e0ce%%ence) ith a dedicated

*9&!cus !n #a%ue and rec!gniti!n $!r !ur cust!"ers.

**T! 'ui%d and sustain a high per$!r"ance cu%ture in acc!rdance ith

*:Is%a"ic #a%ues and Shariah princip%es.*;T! e$$ecti#e%y "anage "ee2an 7an(6s p!rt$!%i! !$ 'usinesses t!

*=Achie#e str!ng and sustaina'%e return t! !ur dep!sit!rs

*


38/73

HAPTER !

MEE'AN TEAM

The 'usiness seg"ents !$ the 'an(s are K

!rp!rate 7an(ing

In#est"ent 7an(ing



39/73

!""ercia% 7an(ing

Treasury &inancia% Instituti!ns

Asset Manage"ent

,r+,ra*e Ban-in4 :

!rp!rate 7an(ing p%ays an i"p!rtant r!%e in the gr!th !$ the 'an(6s $inancing

acti#ities and pr!$ita'i%ity. 1uring the year Mee2an 7an( "aintained a cauti!ns appr!ach in

'!!(ing ne assets and $!cused !n reducing %arge e0p!sures t! a sing%e !'%ig!r s! as t! "itigate

c!ncentrati!n !$ ris( .

!rp!rate 7an(ing success$u%%y intr!duced a ne pr!duct ca%%ed TiDarah this pr!duct is

designed t! a%%! cust!"ers t! raise $unds $!r $inancing !$ st!c(s !$ $inished g!!ds .Istisna

hich is intr!duced in :99? as #ery success$u%%y and e0tensi#e%y dep%!yed acr!ss the Mee2an

'an( net!r( .

In7es*/en* Ban-in4 :

The in#est"ent 'an(ing depart"ent as setup in :99> and $!cuses pri"ari%y !n the

$!%%!ing acti#ities K

*Syndicated Structured $inance:Pr!Dect &inance

;!rp!rate &inancia% Ad#is!ry Ser#ices

In#est"ent 'an(ing has de#e%!ped uni5ue Shariah structuring capa'i%ity in a #ery sh!rt peri!d !$

ti"e and is acti#e%y in#!%#ed in inn!#ati#e pr!duct de#e%!p"ent initiati#es re5uired t! "eet the

%!ng ter" pr!Dect $inance needs !$ cust!"ers .

,//ercia0 Ban-in4 :

!""ercia% 7an(ing target the "idd%e "ar(et . This "ar(et represent the 'ac('!ne !$

Pa(istan s ec!n!"y and has high gr!th p!tentia%. Since the incepti!n !$ this depart"ent in

:99


40/73

e#idenced 'y ti"e%y pay"ent !$ a%% !'%igati!ns .ust!"ers ith a turn!#er !$ %ess than Rs.?99

"i%%i!n in this 'usiness seg"ent) that inc%udes s"a%% and

"ediu" sca%e enterprises 3SME4 . The 3SME4 target ith an annua% turn!#er !$ Rs. ;99 "i%%i!n

and t!ta% $inancing is @< "i%%i!n .

,nsu/er Finance :

!nsu"er &inance is resp!nsi'%e $!r "anaging the retai% assets pr!ducts !$ aut! $inancear

IDarah and h!use "!rtgage Easy H!"e . ,ith pi!neering and pri"e "!#er initiati#es in '!th

pr!ducts) the depart"ent has n! esta'%ished itse%$ !n s!und 'usiness in$rastructures) penetrated

(ey "ar(et seg"ents) and 'ui%t rec!gni2a'%e 'rand identities in n!t !n%y the Is%a"ic 'ut the

!#era%% 'an(ing sect!r .

ar IDarah app%icati!n is usua%%y pr!cessed ithin t! days) hi%e the d!cu"ent intensi#e and

c!"p%e0 pr!cess !$ Easy H!"e O h!"e "!rtgage 'ased !n the c!ncept !$ 1i"inishing

Mushara(ah is a#ai%a'%e in a rec!rd setting a#erage !$ *< days .

Au*, Finance :

The aut! $inance 'usiness has a @ years trac( rec!rd and its p!rt$!%i! n! stands at Rs.=);

"i%%i!n c!"prised !$ !#er +999 acti#e #ehic%e c!ntracts. -r!th has 'een steady during thisperi!d) ithin depressed and uncertain ec!n!"ic c!nditi!ns

.

H,usin4 1inance :

The nati!n6s $irst Is%a"ic H!using &inance $aci%ity .Mee2an 7an(6s Easy H!"e c!"p%eted its

> ne

'ranches and su' 'ranches t! its net!r() 'ringing the t!ta% net!r( t! *>> 'ranches in =9 cities

acr!ss c!untry. The 7an(6s 1ep!sit p!rt$!%i! gre t! Rs. @9.:;= 'i%%i!n during the year .



41/73

!9& Treasur6 J Financia0 Ins*i*u*i,ns :

"##< as an e#ent$u% year .Rising interest rates) c!up%ed ith a $ree2e in the %!ca% st!c(

"ar(et $!r "!re than three "!nths resu%ted in a se#ere %!ss !$ c!n$idence and %ed t! a %i5uidity

crunch in the %ast 5uarter .

Mee2an 7an( re"ained una$$ected 'y this crises ) rather 'ec!"ing a $!r"ida'%e p%ayer in the

%!ca% "!ney "ar(et ) p%acing $unds ith "aD!r 'an(s and n!n 'an(ing $inancia% instituti!ns

using Shariah O appr!#ed structures. Treasury as n!t !n%y a'%e t! dep%!y its e0cess %i5uidity)

'ut a%s! 'ene$it $r!" the SBR e%igi'%e security that as in its cust!dy $!r the peri!d .

!9" Ec,n,/ic O7er7ie5:

:99+ as a tu"u%tu!us year !$ the !r%d $inancia% sect!r ) starting ith Su'pri"e "!rtgage

crisis in US that e#entua%%y %ed t! the c!%%apse !$ the $inancia% giant Beh"an 7r!thers and started

the 'iggest d!nturn $aced 'y the $inancia% industry since the -rat 1epressi!n !$ *++:. Re%ati#e

t! this catac%ys"ic crisis $aced 'y the internati!na% $inancia% "ar(ets) the Pa(istan 'an(ing sect!r

has re"ained re%ati#e%y sta'%e.

They e0terna% current acc!unt de$icit gre t! US *= 'i%%i!n) e5ui#a%ent t! ?.= !$ -1P

hich is appr!0i"ate%y three and a ha%$ percentage p!ints higher than the initia% pr!Decti!n $!rthe year :99+ and "!re than tice !$ %ast year6s %e#e% in a's!%uter ter"s. As a resu%t) $!reign

e0change reser#e dr!pped sharp%y and the Pa( Rupee depreciated 'uy !#er ;9 during the year.

Initia% resu%ts are satis$act!ry and ga#e sta'i%i2ed the c!""!dities) has pr!#ided signi$icant re%ie$

t! the ec!n!"y) as a resu%t !$ hich $!reign e0change reser#es are a%s! n! sta'%e and in$%ati!n)

a%th!ugh sti%% high) has a%s! decreased t! %e#e%s !$ ar!und :9

O+era*in4 Resu0*s

1espite the g%!!"y ec!n!"ic !ut%!!() Mee2an c!ntinued ith its 'ranch e0pansi!n

strategy) 7y the -race !$ A%%ah) the 7an( n! has *>> 'ranches %!cated in =9 cities in Pa(istan)

an additi!n !$ >> 'ranches inc%uding ;< su' 'ranches during :99+) This signi$icant achie#e"ent

!$ esta'%ishing an e0tensi#e net!r( ithin a sh!rt span !$ @ years ena'%ed Mee2an 7an( t!

"aintain its %eading p!siti!n an a"!ng the Is%a"ic 7an(s !perating in Pa(istan. As a resu%t the



42/73

7an( as a'%e t! rec!rd str!ng gr!th in dep!sits) that increased 'y :+c!"pared t! the

'an(ing sect!r as h!%e that gre 'y appr!0i"ate%y > during the year. A gre $inancia%

high%ights are gi#en 'e%!K

Rs 9 in /i00i,n

"##< "##8 Cr,5*h in K

3e+,si*s #";= $=$8" "* *9:*::>+ +;@;? =?=?==9 ;>9@@>>


55/73

S,07enc6 Ra*i,

1e't e5uity Rati! 1e't %ia'i%itiesG Net assets

Year "##! "## "##8 "##?:>?:= =*;@ @=;:* *9:*::>+ >


56/73

Pr,1i*abi0i*6 ra*i,

Year "##! "## "##8 "##.:@ ?.:@

Cr,ss +r,1i* /ar4in =;.?; = =>.;+ *

Re*urn ,n ca+i*a0

e/+0,6e.

.9*? 9.99:9 .99:: .99:=

Return !n capita% e"p%!yed 3P7IT G apita% e"p%!yed4*99

P7IT !re 'an(ing inc!"e 'e$!re pr!#isi!n

apita% E"p%!yed E5uity B!ng ter" %ia'i%ities


Profitability ratio

0

0.01

0.02

2006 2007 2008 2009

Series1 0.018 0.002 0.0022 0.0024

1 2 3 4


57/73

:99+ >;=* **9:?:= ;>?;*


58/73

Here the "anage"ent has rec!#ered their p!siti!n and i"pr!#ed.


Price Earning Ratio

15.92

10.51

15.2 17.03

0

10

20

2006 2007 2008 2009

Series1 15.92 10.51 15.2 17.03

1 2 3 4

Diidend Per Share

16

10

20

8.6

0

5

10

15

20

25

1 2 3 4

2006 2007 2008 2009


59/73

The di#idend has decreased :9 t! ?.> R.s. This is #ery 'ad $!r c!"pany6s g!!d i%% !r st!c(

"ar(et. Manage"ent has t! $!cus !#er it !ther ise the c!"pany has t! 'ear "!re %!ss in $uture.

a+i*a0 A.e2uac6 Ra*i, (a+i*a0 *, Ris- (?ei4h*e.) Asse*s Ra*i,)

Year :99> :99@ :99? :99+A#erage Rati! *.>@ *..@9 *= *9.;9 *?.;+


!erage Ratio

1.67 1.57 1.7

0.82

0

0.5

1

1.5

2

1 2 3 4

2006 2007 2008 2009


60/73


!erage Equity

16.7 15.64

10.3

18.39

0

5

10

15

20

1 2 3 4

2006 2007 2008 2009


61/73

HAPTER

30945211 Final Report on Meezan Bank

Documents

Transcript of 30945211 Final Report on Meezan Bank