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COMSATS Institute of Information Technology,

Sahiwal

Internship Report

Meezan Bank Limited

511/V11, Civil Lines near Niazi Filling Station Jail Road, Sahiwal

Submitted To:

Mr. Ali Ahmed (Assistant Professor)

Department of Management Sciences

Submitted By:

DaimSarfraz

CIIT/FA09/BBA/015/SWL

Date of Submission:

04-12-2012

COMSATS Road, Off GT Road Sahiwal

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PREFACE

To handle the changing environment some practical experience is required. As

Business students we have to gain experience because we go through different

management techniques. This course will help us in learning that how they can be

applied . I select to do my internship in Meezan Bank, Branch SAHIWAL. I worked there

for six weeks & it gave me better practical knowledge about the operations of a bank in

a well manner.

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Contents

Executive Summary ....................................................................................................................................... 6

Chapter No. 1 Introduction ........................................................................................................................... 7

1.1 History of Meezan Bank ................................................................................................................ 71.2 Slogan of Meezan Bank ..................................................................................................................... 8

1.3 Mission ................................................................................................................................................ 8

1.4 Vision ................................................................................................................................................... 8

1.5 Introduction of Meezan Bank ............................................................................................................. 9

1.6 Scope ................................................................................................................................................. 10

Chapter No. 2 Business Process Analysis .................................................................................................... 11

2.1 Organizational Structure ................................................................................................................... 11

2.2 Branch Structure ............................................................................................................................... 12

2.3 Product and Services ......................................................................................................................... 13

2.3.1 Products ..................................................................................................................................... 13

2.3.2 Services ...................................................................................................................................... 16

2.4 Operations ........................................................................................................................................ 18

2.4.1 Credit Department ..................................................................................................................... 18

2.4.2 Operations Department ............................................................................................................. 18

2.4.3 Account Opening Department ................................................................................................... 19

2.4.4 Service Quality Department ....................................................................................................... 20

2.4.5 Credit Department ..................................................................................................................... 20

2.5 SWOT Analysis ................................................................................................................................... 23

2.5.1 Strengths .................................................................................................................................... 23

2.5.2 Weaknesses................................................................................................................................ 23

2.5.3 Opportunities ............................................................................................................................. 24

2.5.4 Threats ....................................................................................................................................... 24

2.6 Competitive Strategy of MBL ............................................................................................................ 25

2.6.1 Differentiation ............................................................................................................................ 25

2.6.2 Making Existing and New Customer Loyal ................................................................................. 25

Chapter No. 3 Learning as a Student Intern................................................................................................ 26

3.1 Duties ................................................................................................................................................ 26

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3.1.1 First Week ........................................................................................................................... 26

3.1.2 Second Week ............................................................................................................................. 26

3.1.3 Third Week ................................................................................................................................. 27

3.1.4 Forth Week................................................................................................................................. 27

3.1.5 Fifth Week .................................................................................................................................. 27

3.1.6 Sixth Week ................................................................................................................................. 27

3.2 New Knowledge Acquired ................................................................................................................. 28

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Executive Summary

Internship program is an opportunity for Bachelor in Business Administration students to

experience working life. The purpose of this program is to teach students that how

theoretical concepts are applied practically. This internship report is on my six weekspractical training at Meezan Bank Branch, Sahiwal. Really, it was a nice opportunity to

have a close comparison of academic concept in practical field, involving the use of

primary and secondary data. All the way attempts are summarized in this internship

report.

In the introductory part of the report I have discussed the introduction and history of

Meezan Bank Limited. In introductory part I discuss the vision, mission, core values,

board of directors and the branch hierarchy of Meezan Bank, branch Sahiwal.

In the body of the report I have discussed all the departments in which I have worked

that are account opening, credit department, clearing, remittance and cash department.

During this internship I got a chance to get an idea about the practical working of all the

departments.. After that I discussed the SWOT and PEST analysis of Meezan Bank. In

the last part of the report I discussed the class room learning in bank and I have also

identified the problems that are faced in branch. Then I have given some new ideas and

suggestions to improve the overall working of the bank.

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Chapter No. 1 Introduction

1.1 History of Meezan Bank

Premier Islamic Bank which create products and services on Shariah Principles and

provide innovative value to stakeholders through organization culture. In 1997 Al-

Meezan Investment Bank engaged itself in Islamic Banking. Mr Irfan Siddique was the

first hired CEO of the bank. In 2002, a license was received by the bank for the Islamic

Banking and since then it is changing our lives professionally. The name was also

changed to Meezan Bank Limited. Chief Executive General Pervez Musharraf

inaugurated the new Islamic commercial bank.

In 2006, MBL has 62 branches in 21 cities and thats why it is ranked highly in banking

sector. Due to its fast growing branch network, it is the nations largest Islamic

bank.MBL Karachi lead towards a new trend of 8am to 8pm banking.

In 2012, MBL has 310 branches in 90 cities. Meezan Bank limited won multiple awards

which include Asia Money CFA Association of Pakistan award. Meezan Bank Limited

also won awards like Best Islamic Trade Finance Bank, Pakistan Best Islamic Retail

Bank. In short Meezan Banks progress was incredible during these time periods.

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1.2 Slogan of Meezan Bank

The Premier Islamic Bank

1.3 Mission

To become a leading Islamic bank store offers

one-stop shop for unique value of products and

value-added services to customers within the

provisions of the Islamic Shariah, while

optimizing the stakeholder value through an

organizational culture based on scholarship,

justice and respect for institutions and

individual performance.

1.4 Vision

The establishment of Islamic banks and

banking of first choice to facilitate the

implementation of a just economic system, and

provide a solid foundation for the establishment

of a just and equitable society for mankind.

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1.5 Introduction of Meezan Bank

MBL is a public listed company in premier Islamic bank in Pakistan and it is the fastest

bank in the countrys banking sector to be growing. It has largest bank network in the

country. MBL law compliance products and services are filled with various kinds of

dynamic Islamic banking system, MBL dedicated services and identify customers need

and values within the environment accessibility and comfort for the c lients to easily

meet its main goal.

In January 1997 MBL was included investment banking as its functions. After that in

2002, the State Bank of MBL as an Islamic bank in the country was provided before the

full commercial banking license. MBL meet the needs of complex financial world, but

also to embrace not only the world, but also inspiring, practical and competitive value

propositions for establishing investment bankers, commercial bankers Shariah scholars

and experts from the merger has developed an outstanding research and development

capabilities which quality and services for our customers demanded according to the

principles of the Shariah,

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1.6 Scope

Meezan Bank, Human capital is our most valuable equity, and the balances carry

forward the mission and vision of the peoples bank. As dedicated Islamic bankers,

making Islamic banking the banking of first choice to take responsibility for the

professional with an unwavering commitment to the Islamic Sharia person with a belief

and it takes a special breed.

Bank with world-class analytical, leadership, management and relationship building

skills has develop the necessary tools for them. They deal with the current market

trends and business requirements to ensure proper development of their employees. Amilestone in an individuals career is also helpful in the organization of the Bank

because if an employee is getting better lifestyle, it shows organization is progressing.

MBL continued work environment, foster teamwork and encourage innovation, improve,

and career development to ensure our policies to create a more customized and

competitive efforts.

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Chapter No. 2 Business Process Analysis

2.1 Organizational Structure

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2.2 Branch Structure

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2.3 Product and Services

2.3.1 Products

MBL Bank by using marketing strategies are also asking customers what they need

today and by the use of these strategies attract clients easily MBL is awesome. MBL

provides various products which are as follows:

2.3.1.1 Local Currency Accounts

2.3.1.1.1 Rupee Current Account

Current account interest free money to put their funds in an account that provides

customers easily and there are no restriction for a refund. This account is based on

Qard agreement .

2.3.1.1.2 Rupee Saving Account

Savings account per month profit gains as well as some free savings account which

offers interest free. The Lord Almighty Mudarib and customer act as the Bank Act, as

the agreement between the bank and customers on the basis of the principle of

Mudarabah.

2.3.1.1.3 Meezan Bachat Account

Meezan Bachat Account required estimated monthly profits and customers can

withdraw savings account. This account is based on the principle of Mudarabah

between customers and the Bank.

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2.3.1.1.4 Meezan Labbaik Saving Aasaan

Key features of Iran Aasaan balance savings account can be opened by individuals; it

can be a joint account. Minimum initial amount which is required to open the account is

Rs. 1,000.

2.3.1.1.5 Meezan Business Plus

The banking transactions are being done free of cost under the Mudaraba principal.

2.3.1.1.6 Meezan Kids Club Account

This is something really very special; children under the age of 12 can also open their

account in the bank. This is also based on Mudaraba principal

2.3.1.1.7 Meezan Teens Club Account

This account is for teens of 12 years to 18 years old and the Amount needed to open

this account is Rs.1000.

2.3.1.2 Foreign Currency Account

2.3.1.2.1 Dollar Saving Account

Dollar savings account based on Mudarabah principle and interest-free savings

account. Customers can open an account and it works using the US dollar.

2.3.1.2.3 Meezan Euro Saving Account

Euro savings account based on Mudarabah principle and interest-free savings account

customers can open an account and it works using the euro.

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2.3.1.2.4 Meezan Pound Saving Account

Pound savings account based on Mudarabah principle and interest-free savings

account customers can open an account and it works using the UK pound.

2.3.1.3 Term Certificate

2.3.1.3.1 Certificate of Islamic Investment

COII customer is able to invest their savings based on the principle of Mudarabah in

which the product is assembled.

2.3.1.3.2 Meezan Amdan Certificate

Total Amdan certificate clients are able to invest their savings and more profit, which is

favorable for deposit products, is based on the principle of Mudarabah.

2.3.1.3.3 Monthly Mudarabah Certificate

MMC based on Mudarabah principle a short-term interest Deposit products and it is

expected monthly profit to those who have favorable for customers.

2.3.1.3.4 Dollar Mudarabah Certificate

DMC able to combine their U.S. dollars based on Mudarabah principle and deposit

products to customers.

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2.3.2 Services

MBL offers different services like:

2.3.2.1 Labbaik Travel Asaan

If clients wanted to perform Umrah with ease, MBL is perfect for the client for thisservice, It is free of all interest.

2.3.2.2 Online Banking

Meezan Bank Limited account holder can access to his account from any branch and

the transactions can b done free of cost from all the nationwide branches of the bank .

MBL through this service to their customers deposit and withdraw cash, you can apply

for PO and MBL across any branch can access many banking services.

2.3.2.3 8 to 8 Banking

MBL has first time introduced the concept of 8 to 8 banking in Pakistan .A customer can

access to the bank with ease. Mostly the customers find it hard to go to the bank in

office timing as they have their own jobs. But now MBL has made it very easy for

everyone. This is a unique service provided by the bank to all its employed clients.

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2.3.2.4 Electronic Banking

2.3.2.5 Meezan Visa Debit Card

Meezan Bank also offers Visa Debit Card. With this card users can access to their cash

whenever they desire. They can get their cash without interest late charges or any other

fee. Using the card is much faster and safe process rather than holding the cash in their

hands.

2.3.2.6 ATM Card Network

ATM service provided by MBL has made a life a lot easy. Clients can get their money

from the nearby MBL ATM Card Machine. This gives them the feeling of safety as wellas obliged by the bank.

2.3.2.7 SMS Alerts

SMS alerts service by MBL is a great service. Nowadays customers about their

everyday affairs or for advice, they contact the Bank. They do not need to contact the

bank for check and balance because they can sign-up for SMS alert services. With this

they can get all the required information.

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2.4 Operations

2.4.1 Credit Department

This section consists of various departments of the business process analysis,

description of Meezan Bank Limited. Meezan Bank Limited work in different

departments. Sahiwal branch of Meezan Bank are working in different departments.

Description departments and their duties are as follows:

Operations Department

Account Opening Department

Service Quality Department

Credit Department

2.4.2 Operations Department

Various checks and remittance handling department learned about cleaning it.

Operations performed by the Department are the two main functions:

1. Clearing

2. Remittance

2.4.2.1 Clearing

MBL clearing department ensures everything to b fine. When they receive a cheque

from other bank , they first clarifies it. First, they check details on the bank, the check

number, account number and amount of which are written in the register. NIFT

Procedure provides clearing services. National Institute facility Technologies is an

abbreviation of the private organization. By using the careers of all banks in the city,

check, DD, PO, etc. is collected and then checks are being sent to their banks andrespectively.

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2.4.2.2 Remittance

Remy is an important function of any bank. It is mainly between two banks or money

transfer between two sites. MBL not only crossed uncrossed check and counter check

was paid. Through the transfer of funds can be:

1. Pay Order

2. Demand Draft

PO basically this person is to pay cash, but payment is made to the same city.

But in Pakistan for MBL MBL approved by any branch or can be paid is that pay

facility.

DD Basically it is a cash payment, but payments from other cities built for him.

But this is not an account payee bank , cheque must have an account in.

2.4.3 Account Opening Department

AO as it deals with deposits of any bank's main section. Any relationship with the bank

account is the first step to maintain this relationship. After learning in the department of

surgery, I worked in the Department of account opening. The following are the main

types of accounts:

2.4.3.1 Current Account

The account from which the customer can withdraw money at its own will is known as

current account. The customer cant earn any money from this account. The customer

can withdraw its money without any notice, anytime when he/she wants.

2.4.3.2 Saving Account

In saving account of the bank, fixed amounts can b drawn out. The specific amounts

which can b drawn out has to b mentioned earlier. Account holder gets specific amount

of profit on the remaining amount monthly, semi-annually or annually bases.

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2.4.4 Service Quality Department

In this section, the bank floor in time management and learned about quality control

issues.

2.4.4.1 Floor Time Management

MBL staff standing near to the main gate, welcomes the incoming customer with care

are proper respect. This thing shows the training of the staff and culture of MBL. After

that officer provide personal attention to consumers which provides them comfort. This

thing helps in increasing the balance of the branch.

2.4.4.2 Responsibilities of Floor Time Management

They have to maintain CRM customer records and the record of the complaints filed by

the customers. Branch Manager and Service Quality Officer daily monitors the sheets.

Complaints are being checked and handled on daily bases. Modifications and

improvements to systems and processes are suggested.

2.4.5 Credit Department

The bank's most important purpose is to get deposit from peoples and give money to

lenders and by providing money to them bank become able to provide profit to those

who deposit their money in the bank and also earn return on investment for the bank.

Islamic financing for the following:

1. Commercial Financing

2. Consumer Financing

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2.4.5.1 Commercial Financing

MBL in trade financing to meet the needs of business finance offers. To meet the needs

of their business customers are short term finances. MBL under the Credit Department

is providing the following facilities:

1. Working Capital Financing

2. Project Finance

2.4.5.1.1 Working Capital Financing

This requirement is for short-term financing. Suitable for all services are provided in

accordance with Islamic rules and regulations. Murabaha and Istisna'a customer's

working capital requirements, which are designed for gardeners are ways. A customer

for the purchase of raw materials or Istisna'aMurabaha financing needed so the

customer can use. These methods are the following facts:

1. Murabaha

2. Istisnaa

Based on customer needs a Murabaha mode of financing. The MBL decided tobuy the product and after-sales benefits including where to put a sales

agreement may be described as.

A product before it comes into existence for products sold in the transaction

agreement. It is mainly for the buyer is an order for the production of a particular

product.

2.4.5.1.2 Project Finance

Medium and long term financing needs and to develop their business to meet the

perfect Musharakah and Ijarah Islamic financing methods that are less than perfect.

1. Diminishing Musharakah

2. Ijarah

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Using this mode of financing, MBL become a joint owner of an asset to our

customers. Assets are divided into different units and client on a periodic basis

during the period from the bank to get these units.

This financing mode fixed rent for a period of time, etc., real property, such as

machinery, required to meet the financial requirements of solid assets are used.

In the traditional banking model, which is usually the "lease" concept is based on.

To be barred according to the law which render traditional lease, although there

are certain restrictions. This mode is usually long-term and medium-term fixed

assets for homes and vehicles used for financing.

2.4.5.2 Consumer Finance

Consumer financing is for consumers' personal use. The medium-term and long-term

financing needs of the time. Products for consumer financing are:

1. Easy Home

2. Car Ijarah

3. Laptop Ease

The regulations of the law on the basis of a Home finance facility. Easy Home

Free is not just interested customers paying by installments, owner allows their

own home. Easy search of their property customer gets shared with MBL and

MBL in agreement with provides some funds for financing.

MBL according to the principles of car lease unit lease financing offers clients a

completely fascinating and it's free. This is the first in Pakistan's interest free car

financing. Its interest free financing is an ideal product for consumers. The MBL

has decided to get the car at the time of the agreement, for a period of three to

five years, which gives the client to hire a car rental agreement. After completion

of this period, it becomes the property of the client's vehicle. MBL easily Laptop laptop financing is Shariah compliant principles. A range that

cheap and comfortable. MBL is dedicated to deal with Islamic principles of

excellence to meet the needs of consumers. MBL provides popular brands like

Dell and HP.

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2.5 SWOT Analysis

Every organization strengths, weaknesses and some features such as MBL has

following features.

2.5.1 Strengths

Pakistanslargest Islamic banking branch network.

PakistansIslamic banking sector, the biggest market share.

To meet the needs of consumers, the most number of Islamic products Islamic

banking as low as competitors.

Truly comprehensive menu of products and services according to the law.

Shariah Supervisory Board and management team dedicated to.

MBL branches to attract customers to your pulse points which are located in the

commercial and residential area.

MBL to achieve its mission, which is a good combination of fresh graduates and

experienced staff, hiring

The Islamic Consumer Banking menu.

2.5.2 Weaknesses

Limited availability of human resources, with the Islamic banking knowledge

Branch staff is experienced, but their training capabilities are not sufficient to

meet the requirements.

No branch of industry accounts.

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2.5.3 Opportunities

Growing local and international Islamic banking market.

Growing demand for Islamic financial products and services.

Islamic financial services and the demand for Sharia compliant products and

services, increase awareness.

Personal contact with customers, employees and managers than other banks so

that to increase the efficiency of these.

2.5.4 Threats

Conventional banks entering the Islamic banking market.

Islamic banking in the myths and misconceptions about people.

Competitors very strong brand awareness.

Significant threat to the success of the branch has better service competitors.

Weak marketing strategy.

Meezan Bank Limited is no credit card facility.

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2.6 Competitive Strategy of MBL

Competitive strategy is basically the exclusive benefit organization on the challenger

that is designed to gain a competitive edge. Meezan Bank limited because they attract

customers to its customers better and provide better services. Are as follow: competitive

strategy are the following:

2.6.1 Differentiation

MBL is to achieve competitive advantage through differentiation. MBL other traditional

banks offer different products. MBL is providing to its customers an interest-free

products. MBL is really different from their competitors Shariah compliant products and

services that create MBL comprehensive menu of traditional banks is providing. MBL

provides free check books and pay order and other banks and MBL MBL give our

customers a competitive edge which makes their services MBL various allegationsagainst online banking site.

2.6.2 Making Existing and New Customer Loyal

MBL to develop good relationships with your customers and clients by providing the

services of a full-fledge from their faithful to both existing and new customer as it is

focused on bank balance Limited competition strategy.

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Chapter No. 3 Learning as a Student Intern

My first practical internship experience. I worked as a look at the bank balance and

learned many new things and gain practical knowledge. I work for an organization that

was a good experience. Employees to follow the rules and regulations of every

organization. Experience was totally different from the material studied material studied

to understand me easily practical knowledge helps. I work as a part of an organization

to a great experience.

3.1 Duties

During my internship I learn many new things. Study materials and practical knowledge

are different. But to understand the material studied practical knowledge helps. I work

as a look at the bank. Mr. FaheemNiazi (Relationship Officer) monitoring work. Weekly

my duties are as follows.

3.1.1 First Week

On the first day, Mr. Fahim with the bank staff and the manager introduced me with. My

first week, I had a tendency to Saturday. This week, Mr. Fahim bank account opening

system and introduce me with the procedure. My first week at the bank's systems,

customer information and account information associated with the procedure was done.

Ramadan was starting the next day internship zakat on its fourth day ten 'days, was

there.

3.1.2 Second Week

During the second week of internship, MrFahim said to fill the account opening form and

for me it was a practical session. I started to work during the week and start the account

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opening form. During the week I also learned about the insurance policies of Meezan

Bank. There is a difference between general banking and Islamic banking. In this week

about the difference between Islamic banking and general banking had a meeting with

the manager. Islamic banking follows the rules of Islam. Using the following systems

are:Mudaraba, Musharka, Istisna, Ijarah, and Sallam.

3.1.3 Third Week

During the third week of my internship, the methods, insurance (Takaful) and collection

calls to customers for account opening. This week I also learned new knowledge like

DD and pay order slips.

DD Means of demand draft. The way people move from one bank account to be

used. Check a relatively safe form of Demand Draft are marketed as. The main

difference between the demanded control air currents and the demand draft be

charged a signature is not required. Also "called to check in the dictionary.

For a pay slip must be paid to a debtor with all the information sent by a creditor

to a document. Debtor his / her payment and pay for signature confirmation.

3.1.4 Forth Week

My internship with information about insurance was out. They are presented in various

ways and I learned about the types of insurance. Total bank life insurance (Takaful)

does not offer.

3.1.5 Fifth Week

In my fifth week internship cash department of the bank. Slips in the pay order, demand

draft, cash counting, and documents filed. I also made invoices and payment vouchers.

3.1.6 Sixth Week

I worked in the department of clearing. This week I introduced my supervisor about this

section. The clearing bank reconciliation statements of the companies with works for. I

learned about the process of purification. Bank statement and if there is a difference

between the company's statement. Bank reconciliation statement and removes

differences.

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3.2 New Knowledge Acquired

I have learned about how to open a new account when dealing with the customer and

gather information about the person. And the workplace to communicate with

customers.

Various tools and methods developed in the accounts posting. For example, at first, to

be charged to the account holder's account and adequate flow of funds in the account

number and account holder must write detail. In this section, I learned about patterns of

different procedures that a retail section.

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3.3 How Experience Impact My Career:

The work during the training is directly related to customers, as well as the different

conditions that we read in our books in general worked out in practice. This experience

helps me to face and work under public pressure and the importance of the conclusion

of the day.