Acknowledgment
I
am much thankful to “Almighty Allah” the
most beneficent, the most mercy full who has given me strength to complete this
task. I am also thankful to Mr. Muhammad Arshad and Mr. Muddassar Ahmad Bhatti,
Branch Manager and Operation Manager respectively of Meezan Bank Limited,
Gulshan-e-Ravi Branch, Lahore
without whose guidance and support it would not have been possible for me to
accomplish this assignment.
Further
more, I am indebted to the staff of Meezan Bank Limited, Gulshan-e-Ravi Branch,
Lahore from
whom I have gained much experience regarding operational work of Bank is
concerned.
The
last but not the least I convey my credit and thankfulness to Virtual
Universities Authorities without whose well in time support and guidance it
would be much difficult for me to achieve this task successfully.
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If you are doing Research Final Project of VU Then you can click at the below link
Executive Summary
Meezan Bank Limited (MBL) (the holding company) was
incorporated in Pakistan on January 27, 1997 as a
public listed company under the companies ordinance, 1984 and its share quoted
in Karachi
stock exchange. MBL was registered as an ‘Investment financing company on
August 8, 1997 and carried on the business of investment banking as permitted
under SRO 585(I)/87 dated July 13, 1987 in accordance and in conformity
with the principle of Islamic sharaih. A
certificate of commencement of business was issued to MBL on September 29, 1997 .
MBL was granted a ‘Scheduled Islamic commercial bank’
license on January 31, 2002 are formally commenced operations as a scheduled
Islamic Commercial Bank With effect from March 20, 2002 on receiving
notification is this regard from State Bank of Pakistan (SBP) under section 37
of the Statement Bank of Pakistan Act, 1956.
Meezan Bank Limited has 222 branches in 63 cities across Pakistan and it became the 11th largest
Bank in Pakistan
in term of branch network.
Meezan Bank Limited being an Islamic Bank offering its
products to its customers strictly in accordance with the shariah compliance.
It is doing business in Corporate Banking, Commercial Banking, Consumer
Banking, retail Banking, Investment Banking keeping in view the all norms and
standards of Islamic injunction.
During the period of my internship from 8 May, 2011 to 2 June, 2011 , I worked in Customer
Service SQC, Clearing & Remittance and Account Opening successfully and
acquired a lot of knowledge and experience while interacting with staff of
Meezan Bank Limited.
As for as different ratios of Meezan Bank Limited, they
all give a healthy sign regarding financial position of the Bank as well as
operation results of the different financial years. All ratios are fully in
accordance with the banking Industry’s standard and norm which is a yard stick
to measure the performance of any bank. These ratios depict and indicate that the
financial strength of the Bank is on a higher side and future prospect of the Bank
is brighter.
Conclusion and Recommendations are an integral part of
this report. Bibliography regarding data collection and references where from
informations have been obtained.
Introduction:
Banking
plays a very significant role in the economic development of a country. After
Partition of India and Pakistan British Government’s commission distributed the
reserves between Pakistan
and India .
In
August 1947, various Banks transferred their headquarters and funds to India .
Before partition of Pak-o-Hind, some Banks were operated which were Chartered
Bank, Grind-lays Bank, Imperial Bank of India, Australasia Bank and Habib Bank.
After the independence of Pakistan, Muslim Commercial Bank Limited, Bank of
Bahawalpur Limited, Punjab National Bank and National Bank of Pakistan were providing banking
facilities to general public.
The
State Bank of Pakistan
was inaugurated by our great leader Muhammad Ali Jinnah. On 1st July, 1948 . Australasia
Bank and Habib Bank were providing facilities to the Pakistan ’s nation. After some period,
Australasia Bank Limited was converted into Allied Bank of Pakistan .
State
Bank of Pakistan is a
Central Bank of Pakistan .
Other Banks are Commercial Banks, Specialized Bank and Investment Banks.
Now
a days in Pakistan ,
fifty four banks are operated with thousands of branches. Banks are providing
Banking facilities to their customers and clients by offering different
services and packages.
Banking
sector is a back bone of our economy. If this sector is making progress than
whole economy is also growing a lot. Our Agricultural sector, Industrial
sector, Mining sector, Export sector all depend on the banking industry because
Banks provide long term funds as well as short term funds to all these sectors
to meet out their short term as well as long term requirement. Hence, banking
progress is necessary indeed.
Vision statement:
Establish
Islamic banking as banking of first choice to facilitate the implementation of
an equitable economic system, providing a strong foundation for establishing a
fair and just society for mankind.
To
be a premier Islamic bank, offering a one-stop shop for innovation value added
products and services to our customers within the bounds of shariah, while
optimizing the shareholder value through an organizational culture based on
learning, fairness, respect for individual enterprise and performance.
Product line
Deposit products
Meezan Bank
offer the largest range of Riba-free Deposit Accounts for Personal Banking
- Rupee Current Account
- Labbiak Saving Account
- Rupee Saving Account
- Dollar Saving Account
- Euro Saving Account
- Pound Saving Account
- Meezan Bachat Account
- Business plus Account
Term Certificates (Riba- free Term Deposit Certificate)
Meezan bank
provides a complete range of short term and long term deposit certificate with
the flexibility of monthly, quarterly, semi-annual and annual returns
- Certificate of Islamic Investment
- Meezan Amdan Certificate
- Monthly Mudarabah Certificate
- Dollar Mudarabah Certificate
Consumer Finance
Consumer finance
provides for construct a home, purchase a car, etc:
- Easy Home
- Car Ijarah
- Laptop Ease
Electronic Banking
Electronic
Banking provides non-stop banking convenience, twenty four hours a day, seven
days a week.
- Visa Debit Card
- Internet Banking
- ATM Network
- Meezan Quickpay
- SMS Alerts
- 24/7
Services
Meezan Bank is
dedicate in its efforts to provide a quality banking experience to our customer
via a range of unique Banking Services
- Labbaik Travel Aasaan
- Online Banking
- 8 to 8 Banking
- Ladies Banking
- Home Remittance
- Western union Money Transfer
Competitors
The
major competitors of Meezan Bank Limited are Bank Islami, Dubai Islamic Bank
Pakistan Ltd, Albarka Islamic Bank. The other competitors are Bank Al-Falah
Limited, Bank Al Habib Limited, Askari Bank Limited, United Bank Limited,
Allied Bank Limited, Soneri Bank Limited, Faisal Bank Limited.
Introduction to All Departments
Meezan Bank Limited has been divided into
following divisions:
- Assets Management
- Retail Banking Division
- Liability Division
- Common Assets Division
- Credit Administration Division
- Human Resources Division
- Finance Division
- Treasury and International Division
- Information Technology Division
- Corporate Banking Division
- Operation Division
- Credit Risk Management Division
- Control and Compliance Division
- Establishment Division
- Training, Research, Communication
& Public Division
- Consumer Banking Division
- Credit Policy Division
- Audit & Inspection Division
- General Service Division
- Law Division
Asset Management
The Bank invest
funds on behalf of its customers (shariah compliant investment product) and
gives them access to a wide range of traditional and alternative product
offerings. For example open end funds, pension funds and closed end funds
Retail Banking Division
In this division
bank deals with customers and execute their transaction directly. Bank provide
the service of savings, checking of accounts, mortgages, personal loans, debit
cards and ATM cards.
Credit Administration Division
In this
division, banks deals with the credit, banks gives loans to individuals ans to
the corporations.
Audit & inspection Division
This department
of the bank conduct audit of all the branches and submit its reports to the top
level management to take corrective measures.
Human Resource Division
This division
performs the duty of hiring the employees, training the employees as well as
retaining the employees and if necessary, firing the employees.
Finance Division
This division
controls the overall activities relating to finance i.e. monitoring the
investment activities, financing activities, Debit and Credit of funds and
reasons there of with proofs.
Training, Research, Communication & Public Division
This division
makes research about the new product, imparts training to newly hired employees
as well as old employees for innovation as per the rules and regulation of
State Bank of Pakistan .
Operation Division
This division controls
the whole operation of all the branches and controls the cash activities,
cheques, account opening and other things about operations.
Law Division
This division
engages the lawyers and gives them the power of attorney to protect the bank to
in courts of law where cases have been filled by the bank against defaulters of
loan as well as against the bank by the general public.
Information Technology Division
This division provides
the relevant systems for working in the bank and protects the data in computers
at central place and controls the overall online system on daily basis.
Comment on organizational structure
The
organizational structure of the Bank consists of top level management, middle
level management and lower level management. The top level management comprises
of president, executive vice president, and divisional heads. The middle level
management comprises of departmental heads, SVPs and VPs. The lower level
management comprises of AVPs, Managers, and Operation Managers. The reporting
system at horizontal level is much effective and successful. The reporting
system at vertical level i.e. from lower level management to middle level
management is also accurate, timely and complete. The middle level management
gives information to high level management at which decision are made, rules
and regulations are amended keeping in view the present scenario.
Training Program:
Meezan Bank Limited Gulshan-e- Ravi Branch, Lahore
Meezan Bank
Limited opened its branch at F-9, Gulshan-e-Ravi, Lahore in 2007. The code of branch is 0215.
The branch
incharges consist of a Branch Manager and Manager Operations. Manager Operations
control the whole staff. The staff consists of branch system administrator and
operational staff (include Grade-1 officer, Grade-2 officer, Grade-3 Officer
and three cash officer)
I started
internship on 8th
April, 2011 which ended on 2nd June, 2011 . The duration of the internship
was about 8 weeks. The staff of the branch was much cooperative. They imparted
me training in all departments of the branch i.e. Customer Service - SQC,
Clearing & Remittance and Account Opening.
From 8th April, 2011 to 23rd
April, 2011 I worked in Customer Service where from I learnt a lot regarding
attention given to customers by the staff of branch.
From 25th
April, 2011 to 16th May, 2011 I worked in Clearing & Remittance
department where at I learnt about Inward Clearing, Outward clearing, Transfer
of Funds.
From 16th
May, 2011 to 2nd June, 2011 I worked in Account Opening Department
in which I learnt how to open an account, how to close an account and how to
operate an account.
Training program
With the name of Almighty Allah, I started my
internship with Meezan Bank Limited on 8th May, 2011 which continued till 2nd June, 2011 .
On first day, the Branch Manager called me in his office and asked some
questions about my studies and teachers. He told me some basic rules and
regulations about banking operation and introduced me with other staff members
of the Bank
Service Quality
Department
In this department I worked from 9th April, 2011
to 23 April, 2011
where from I learnt a lot about floor time management and quality assurance
affairs in branch.
Floor Time Management
While standing near the main gate we ensure
that customers coming into MBL are properly looked after. We also create a
sense of ownership of service quality and also develop a service mindset and
ultimately a quality service culture at MBL. Further more, we mange the sale
and service area of the branch to provide maximum opportunities to our clients
as well as provide a sense of comfort and personal attention.
Responsibilities of Floor Time Management
We
maintain and file daily working sheet of Floor Time Management and record customer’s
complaints in the CRM. We monitor daily log of TAT sheet and put up it to
Branch Manager. Complaint handling and its follow up is made on daily basis. Modifications
and improvements are suggested in the system and process. Try to make coordination
between branch and Head Office regarding service quality. Lead Floor Manager is
assigned duty first of all.
Responsibilities of Lead Floor Manager/
Floor Manager
Lead Floor Manager welcomes all the customers
and introduces himself with a smiling face and checks branch cleanliness and
pleasant atmosphere in the branch. He also checks availability customers
stationary at proper places as well as maintain the notice and assist in SQ.
Individual customers are provided comprehensive services. He moves around the
banking hall and cash counters area to ensure that every customer is looked
after properly.
Clearing and Remittance Department
Clearing:
After learning
in Service Quality Department, I worked in Clearing Department from 25th April, 2011
to 15th May, 2011 .
I learnt their about Clearing of different cheques and remittance handling. I
was told there the main objects of clearing.
I received all
the clearing cheques and made a schedule of these cheques after making entries
in outward and inward clearing registers and sent the same to main branch where
at all the cheques were sent to NIFT (National
Institutional Facilitation Technology)
NIFT:
NIFT stand for National Institutional
Facilitation Technologies. Clearing House of SBP has shifted a part of its work
to private institution named NIFT. NIFT collets Cheques, Demand Draft, Pay
Order, Travelers Cheques, etc. from all branches of different Banks within city
through its carriers and send them to the branches on which these are drawn for
clearing. NIFT prepares a sheet for each branch and send it to each branch as
well as to State Bank of Pakistan
where accounts of Banks are settled.
Types of Clearing
Inward Clearing
When cheques of other Banks are deposited in
our bank, after clearing these cheques through NIFT by the other Banks on which
these are drawn. Accounts of the customers are credited.
Outward Clearing
When cheques of our bank are deposited in
other Banks and these cheques are sent to us for verification, we debit the of
our client after verification their account
Remittance
Remittance
department transfer the funds from one bank to another bank and one place to
another place. In this department collection takes place. MBL makes payment of
only open cheques at the counter and prohibits the payment of crossed cheques.
MBL transfer money from one place to another place by way of payment order,
demand draft, inward collection, outward collection.
Account Opening Department
Account Opening Procedure
I worked in Accounts Opening Department form 16th May, 2011
to 2nd June, 2011 .
Account Opening
Form
This department
relates to open new accounts Customers approach to Bank and an Account Opening
is given to him for completing and signing the same. After completed account
opening form in all respect and checked by the bank officer and properly signed
by the customer which is also verified by the Operation Manager. Specimen
Signature Card are got signed form the customer and after verifying the
information written their in, Customers are given account number and all these
informations are saved in the system.
Completion of the
Form
After
completed account opening form in all respect and checked by the bank officer
and properly signed by the customer which is also verified by the Operation
Manager
Specimen
Signature Card (SSC)
Specimen
Signature Card are got signed form the customer and after verifying the
information written their in, Customers are given account number and all these
informations are saved in the system.
Signature
Difference Form
The
signature of the client is taken on a signature difference form if his
signature differs from the CNIC.
Computerized
Checking
After
filling in the form, the officer connected via internet to the NADRA website
checks the record of his customer’s social life. If the record of the person is
ok, then the officer of the bank authenticates the record under his signature
and stamp and send it to the Branch Manager
Account Number
After
completion of all formalities, final approval for opening of account is taken
form the Branch Manager and an account number is allotted to the customer and
all the informations are recorded in the computer. Account number is written on
the cheque book requisition. After completion of all procedures, the bank
prepare a letter and send it to the client at his postal address to pay
gratitude to the customer.
Cheque Book Issuance
Cheque
Book requisition for first cheque book is send to Head Office, Karachi for issuance the
same. The cheque consists of 25 leaves and no charges are deducted from the
account the account of client. There after bank sends a recommendation for 25,
50 and 100 leaves with different prices and charges are deducted from the
account of clients.
Procedure for Closing of an account
When
ever a customer wants to close the account, he fills up an account closing form
and signs their in, account balance should be zero, approval is taken from the
Branch Manager specimen card is taken back and is attached with the form and
account is closed.
Locker Operations
Locker
facility is also available at all the branches of MBL for keeping the valuables
their in and this facility is only for account holders. As for as privacy is
concerned, lockers are located in a specially designed area protected with
strong room doors and grills under the control of two officers, operated by use
of Master Key and Customers Key supplied to the customer at the time of locker
is rented out. Lockers are three types: Small, Medium and Large lockers.
Security
fee of locker is Rs. 3000 which is refundable and charges for Small Rs. 1000,
for Medium Rs. 1500 and for Large Rs. 2000 per annum.
A
separate application form is complete and signed by the customer along with SS
Card and a copy of CINC with two photographs. After completing all the
formalities a locker is allocated to the applicant and Key is given to him with
locker identification card.
Procedure of issuance of Bank Statement
For
issuance of bank statement a requisition slip is taken from the customer duly
signed and the period form which the customer wants to take the statement.
After verification of signature Bank Statement is issue to the customer and Rs.
55 are deducted from account of customer
Procedure of Stop Payment
For
stopping the payment, we take sign of the customer on stop payment form where
in account number with date and amount of cheque is written. Customers also
mention the reason of stop payment then we mark that cheque as stop payment.
Charges of stop payment are Rs. 250. Now the bank will not make payments of
these cheques.
Procedure for ATM/PIN Issuance
Meezan Bank limited provides the ATM facility to its Customers and they
can withdraw their amount at any time through ATM. For issuance of ATM, customer
has to sign an ATM form and Bank office make an entry in the system and with in
15 days bank receives ATM card from Head Office which is given to the customer.
For issuance of PIN and activation of ATM customer has to call the help
line (111-331-331). After verification of customer, a PIN number is issue to
him and his card is activated.
Conclusion
As
for as business of the bank is concerned it is quite up to the mark keeping in
view the standard of banking industry. Bank is located in Gulshan-e- Ravi where
Bank Al Habib, Habib hank limited , Habib metropolitan bank limited as well as
Allied bank and MCB are also doing business in the same area but Meezan Bank
limited is competing with all these banks and increasing its clientele. Bank is
giving better services to its customers as well as better farcicalities to its
employees, its employees are making an untiring effort to increase the profit
of the company on year to year basis as well as time their best to increase the
wealth of the shareholders. Bank is offering many products to its customers
which are increasing the margin of the bank.
As
for as Profit Margin, Gross Profit Margin, Operating Profit Margin and Return
on Equity is concerned, it is much satisfactory keeping in view the standard of
industry. Fixed Assets Turnover, Total Assets Turnover, Retune on Total Assets,
Earning Per Share and Price Earning Ratio are as too much satisfactory and
quite up to the mark of industry which shows that financial health of the bank
is very much sound and it will be a going concern for and indefinite period.
Its profit from operation is seems to be reasonable and showing an increasing
trend on year to years basis. Further more Gross Profit Margin is also reasonable;
Profit Margin is also showing a healthy sign. Bank’s future is future to much
secure and it will flourish and grow in the days to come.
Recommendations:
As for as I have observed during my training, the bank should improve the
services given to the customers so that they may feel satisfied. Bank should
increase its products in order to enhance its margin so that it may compete in
the market. Further more employees are the assets of the bank which must be
motivated by the management of the bank. Employees should be given incentive in
the shape of cash award, increase in pay, promotion etc. if the customers of
the bank are satisfied and employees of the bank are hardworking as well as
loyal, the bank will make progress by leaps and bounds. Management of the bank
must try its best in order to satisfy the customers as well as motivate the
employees.
As
for as ratio are concerned, its current ratio is much below the standard which
needs to be increased in order to grow in the market. Working capital is the
life of every organization, in 2008 working capital is in negative but in 2009
and 2010 working capital is positive but below the standard. Working capital
must be increased by the bank so that the bank may show its short term solvency
to meet out its short term debt. Debt of the company is 0.9299 in 2008, in 2009
is 0.9960 and in 2010 is 0.9284 which shows that the Bank is highly levered.
Debt of the company is on higher side which must be decreased to show it long
term solvency. Net profit Margin on sale although increasing on year to year
basis but is much below than the standard of industry which also need to be
increased in order to grow in the markets.
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