INTERNSHIP REPORT

ON

MEEZAN BANK LIMITED

SUBMITTED BY

FARVA NAVEED

ROLL NO. 2123106012

MAJOR : BBA 7th

SESSION: 2021-2025

SUPERVISOR

MISS ZIMMAL ARIF

HEAD OF DEPARTMENT

MISS SOBIA NISAR

DEPARTMENT OF MANAGEMENT SCIENCES

GOVT. GRADUATE COLLEGE FOR WOMEN SAMANABAD, LAHORE

LAHORE COLLEGE FOR WOMEN UNIVERSITY

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Table of Contents
Acknowledgement ……………………………………………………………………………….3
Executive Summary……………………………………………………………………………...3

Introduction and Management………………………………………………………………….4

History of the organization
Vision statement/mission statement
Management Hierarchy
Managerial Policies

Marketing………………………………………………………………………………………...6
Product
Price
Place
Promotion

Financial Statement Analysis……………………………………………………………………9

Ratio analysis and interpretations

Work done by internee…………………………………………………………………………14

Weekly activities of internee for six weeks

Recommendations and Conclusion……………………………………………………………20

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 ACKNOWLEDGEMENT

The internship opportunity I had with Meezan Bank was a great chance for learning and
professional development. Therefore, I consider myself as a lucky individual as I was provided a
chance to work in this organization.

First and foremost, I would like to express my thanks to Allah Almighty who has given me the
strength to finish my internship. I do thanks for His blessings on my daily life, good health,
healthy mind and good ideas.

I express my deepest thanks to Mr. Syed Rizwan Jawaid (Branch Manager), Mr. Shahzad Ahmed
(Operation Manager), and all other staff and employees of Meezan Bank link road branch Lahore
for their careful and precious guidance which are extremely helpful during my training session
and for the facilities that they arranged to make my work easier.

I am also highly thankful to my faculty under whose able guidance I completed my internship
program successfully.

I also pay my gratitude and thanks to my teachers for their gentle encouragement and support.

EXECUTIVE SUMMARY

Meezan Bank, Pakistan’s first and largest Islamic bank, is a publicly listed company with a paid-
up capital of Rs.10 billion. It is one of the fastest growing financial institutions in the banking
sector of the country. With its Vision of establishing ‘Islamic banking as banking of first choice’
– the Bank commenced operations in 2002, after being issued the first-ever Islamic commercial
banking license by the State Bank of Pakistan. Meezan Bank is publicly listed company, first
incorporated on January 27, 1997. It started operations as an Islamic investment bank in August
of the same year, which has been licensed by the“State Bank of Pakistan” to operate as an
Islamic Commercial bank on 31st January 2002. State Bank of Pakistan granted the Nations first
full-fledged commercial banking license of Islamic Banking to Meezan bank Ltd. It was a new
era in banking Sector history in Pakistan that Meezan Bank Ltd adheres strictly to the principles
of Islamic Shariah with absolutely no compromise, and is recognized as Pakistan’s truly premier
Islamic Bank.

From the year 2020 to 2023, Meezan Bank Limited has demonstrated strong financial growth,
evidenced by increasing book value per share, earnings per share, and a rising return on equity.
Consistent dividend payouts and improved market value per share reflect strong investor
confidence. However, the bank faces challenges such as a decreased Price to Book Value Ratio,
slight margin compression as shown by the Net Spread to Gross Return, a conservative lending
approach indicated by a reduced Gross Financing/Advances to Deposit Ratio (ADR), and a high

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Investment to Deposit Ratio (IDR). Addressing these concerns will be crucial for sustaining the
bank’s profitability and financial stability.

The Bank maintained its position as the leading Islamic bank in Pakistan with a branch network
of 571 branches in 146 cities. I have learnt a lot during the period of internship at MBL link road
branch. I have performed various functions during my internship like opening of accounts in
MBL (documentation and form filling), dealing with customers and offer them the most suitable
and best products and services according to their needs and demands. I also learned the processes
how bank’s correspondence with their customers and within branches.

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 HISTORY OF ORGANIZATION

Meezan Bank was founded as an Islamic investment bank in 1997 by Noor Financial, Pak
Kuwait Investment Company, and Islamic Development Bank. It was then known as Al-Meezan
Investment Bank.
Here is a possible introduction to Meezan Bank:

Meezan Bank is Pakistan's first and largest Islamic bank, offering a range of Shariah-compliant
financial products and services. With a network of over 700 branches and a presence in over 150
cities, Meezan Bank serves individuals, businesses, and institutions nationwide. Founded in
1997, the bank is committed to promoting Islamic banking principles and values. Meezan Bank
is widely recognized as a pioneer and leader in Pakistan's Islamic banking industry.

In 2000, Meezan Bank was listed on the Karachi Stock Exchange.

In 2002, Meezan Bank acquired Pakistan operations of Société Générale. In its early years from
2002, Meezan Bank faced challenges gaining acceptance in Pakistan due to the unfamiliarity
with Islamic banking and its stricter loan scrutiny. To overcome this, Meezan attracted deposits
from religious Muslims and shifted focus to provide loans to SMEs, including those that
previously avoided traditional banking for religious reasons, allowing it to serve an underserved
segment.

In 2013, Noor Financial tried to sell its entire stake of 49.1 percent, valued at $190 million, to a
British Virgin Island-based company named Vision Financial Holdings, but it was blocked by
the State Bank of Pakistan.

In May 2014, Meezan Bank agreed to acquire Pakistani operations of HSBC Bank Middle
East which included 10 local branches and access to 75 multinational corporate clients. A year
later, Meezan Bank acquired Pakistan operations of HSBC Oman consisting of a single branch.

In 2015, Meezan Bank acquired Pakistan operations of HSBC Oman, consisting of a single
branch.

In March 2019, Noor Financial sold 34.3 million Meezan Bank shares to institutional investors
for $20.92 million. Previously, Noor Financial divested its stake multiple times in 2018.

In 2021, Faisal Fahad Al-Muzaini joined the Board of Directors of Meezan Bank Ltd., as
Director. Mohammad Abdul Aleem was re-elected as an Independent Director on the Board of
Meezan Bank.

In 2023: Saad Ur Rahman Khan joined the Board of Directors of Meezan Bank.

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 VISION STATEMENT:

Establish Islamic banking as banking of first choice to facilitate the implementation of an

equitable economic system, providing a strong foundation for establishment of fair and just
society for mankind.
MISSION STATEMENT:

To be a premier Islamic bank, offering a one-stop shop for innovative value- added products and
services to our customers within the bounds of Shariah, while optimizing the value of
stakeholders through an organizational culture based on learning, fairness, respect for individual
enterprise and performance.

MANAGEMENT HIERARCHY OF MEEZAN BANK

Here is a brief overview of the management hierarchy of Meezan Bank:

1. Board of Directors: Sets the bank's strategic direction and oversees overall performance.
2. President & CEO: Responsible for overall management and operations, implements board
decisions.
3. Deputy CEOs: Assist the President & CEO, oversee various business divisions.
4. Group Heads: Lead specific business areas, such as Corporate Banking, Retail Banking, and
Treasury.
5. Department Heads: Manage specific departments, like Risk Management, Compliance, and
IT.
6. Branch Managers: Oversee branch operations, sales, and customer service.
7. Team Leads/Supervisors: Manage teams of officers and staff in various departments.
8. Officers and Staff: Perform day-to-day tasks, serve customers, and support operations.

MANAGERIAL POLICIES

Meezan Bank Limited's managerial policies focus on:

1. Shariah compliance: Ensuring all operations align with Islamic principles and values.
2. Customer-centricity: Providing excellent service and tailored solutions to meet customers'
needs.
3. Risk management: Prudent risk assessment and mitigation to ensure stability and growth.
4. Innovation: Embracing technology and innovation to enhance products, services, and
efficiency.
5. Human capital development: Investing in employee training, development, and welfare.
6. Corporate social responsibility: Supporting community development and social causes.
7. Transparency and accountability: Maintaining high ethical standards and transparency in all
dealings.
8. Performance-driven culture: Encouraging a culture of high performance, productivity, and
continuous improvement.

These policies guide the bank's decision-making and operations, enabling it to achieve its vision
and mission while maintaining its leadership in Pakistan's Islamic banking sector

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 MARKETING SERVICES OFFERED BY MBL

 PRODUCT:

Meezan Bank offers a wide range of products and services, some of them are discussed below

1. Deposit Products:

- Current Accounts: A daily transaction account for individuals and businesses.

- Savings Accounts: A profit-bearing account for individuals and businesses to save and earn
returns.
- Term Deposit Accounts: A term deposit account with fixed tenure and profit rates.

2. Financing Products:

- Home Financing (Meezan Easy Home): Shariah-compliant financing for purchasing and
constructing homes.
- Auto Financing (Car Ijarah): Financing for purchasing vehicles.
- Business Financing (Meezan Business): Financing for business expansion and operations.

3. Investment Products:

- Meezan Islamic Funds (Mutual Funds, Amin): Investment funds diversified across various
asset classes.
- Meezan Islamic Asset Management: Professional management of investments and assests.

4. Card Services:

- Meezan Visa Debit Cards: Cards for transactions and withdrawals anytime and anywhere
linked to account balances.
 Silver Card: Issuance fees is PKR 2,784. ATM withdrawal limit is PKR 50,000 per day.
 Gold Card: Issuance fees is PKR 3,248.ATM withdrawal limit is PKR 100,000 per day.
 Platinum Card: Issuance fees is PKR 6,960. ATM withdrawal limit is PKR 300,000 per
day.
 World Card: Issuance fees is PKR 18,000. ATM withdrawal limit is PKR 700,000 per
day.
 Titanium Card: Issuance fees is PKR 4,000.ATM withdrawal limit is PKR 150,000 per
day.
 Infinity Card: Issuance fees is PKR 34,800. ATM withdrawal limit is PKR 1,000,000
per day.
 Women First Card: Issuance fees is PKR 580. ATM withdrawal limit is PKR 50,000
per day.

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5. Digital Banking:

- Meezan Online Banking: Internet banking for account access and transactions.
- Meezan Mobile Banking: Mobile app for banking services and transactions.
- Meezan Digital Account Opening App: App for digital account opening and online banking
services

6. Remittance Services:

- Meezan Remit: Inward remittance services for receiving funds from abroad.
- Meezan Cash International: Outward remittance services for sending funds abroad

7. Treasury Services:

- Foreign Exchange: Currency exchange services for individuals and businesses.

- Money Market: Short term investment and financing solutions.
- Capital Market: Investment and trading services for stocks and securities.

8. Priority Banking:

- Meezan Premium and Elite Banking: Personalized banking services for high net worth
individuals.

9. Trade Finance:

- Letter of Credit: Guarantee for payment to suppliers and vendors.

- Bank Guarantee: Guarantee for contractual obligations and performance.
- Export Finance: Financing for export-related activities and transactions.

 PRICE:

- Legal documentation charges at actual price

- Competitive pricing strategy.
- Offering flexible payment plans and financing options.
- Promoting discounts and special offers.

 PLACE:

- Over 1000 branches

- More than 300 cities
- Online banking services
- Partnership with retailers and merchants for card acceptance.

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  PROMOTION:
- Meezan Card promotions
- Discounts and privileges on Meezan Debit Cards
- Lifestyle discounts and privileges at finer retail outlets with Premium Banking services
Additionally, Meezan Bank also uses other marketing strategies such as:
- Segmentation: Targeting specific customer segments like retail, corporate, and premium
banking customers
- Positioning: Positioning itself as a leader in Islamic banking and a provider of innovative
Shariah-compliant solutions
- Branding: Building a strong brand identity and image
- Digital marketing: Using digital channels like email, SMS, and social media to reach
customers and promote products.

RATIO ANALYSIS of MBL

Ratios 2023 2022 2021 2020
Book Value (Rs) 103.23 64.44 53.2 48.9
Market Value per 161.36 99.54 134.1 104.4
Share (Rs)
Price to Book Value 1.56 1.54 2.5 2.1
Ratio
Cash Dividend (%) 200 85 60 60
Stock Dividend (%) - 10 15 10
Right Shares at Par - - - -
(%)
Price Earning Ratio 3.42 3.96 8.46 6.7
Basic Earning per 47.18 25.15 15.84 12.39
Share (Rs)
Net Spread to Gross 52.45 52.43 62.6 60.8
Return (%)
Profit Before Tax to 37.33 35.18 38.0 31.7
Gross Income (%)
Profit After Tax to 18.61 17.92 22.7 19
Gross Income (%)
Operating and Other 28.88 34.26 42.2 39.7
Expenses to Income
Before Provisions
(%)
Gross 44.74 61.4 53.4 42.4
Financing/Advances
to Deposit Ratio –
ADR (%)
Investment to 70.91 77.4 42.6 34.6
Deposit Ratio – IDR
(%)
Capital Adequacy 22.39 18.42 17.8 17.8
Ratio (%)
Return on Average 3.02 2.01 1.7 1.7
Assets (%)
Return on Average 56.27 44.50 36.4 34.6
Equity (%)

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 INTERPRETATIONS of RATIO ANALYSIS

1. Book Value (Rs)

-Trend: Increasing from 48.9 in 2020 to 103.23 in 2023.

- Interpretation: The book value per share is on a consistent rise, indicating that the company's
net asset value is growing.

- Reason: This growth suggests successful reinvestment of earnings and/or a strong balance
sheet with increasing retained earnings.

- Recommendation: Continue to monitor for sustainable growth. Ensure asset quality remains
high to support this increase.

2. Market Value per Share (Rs)

- Trend: Increased from 104.4 in 2020 to 161.36 in 2023, with some fluctuation.

- Interpretation: Market confidence in the bank is increasing, though it experienced a dip in

2022.

- Reason: Market value changes can be due to overall market conditions, investor sentiment, and
the bank’s performance.

- Recommendation: Maintain transparency with investors and manage market perceptions.

Address any factors contributing to market volatility.

3. Price to Book Value Ratio

- Trend: Decreasing from 2.1 in 2020 to 1.56 in 2023.

- Interpretation: The market price is closer to the book value, indicating a more realistic
valuation by the market.

- Reason: This suggests that the market is valuing the bank more conservatively or that the book
value is catching up with the market value.

- Recommendation: Continue improving profitability and asset quality to ensure the market
value aligns positively with the book value.

4. Cash Dividend (%)

- Trend: Significant increase from 60 in 2020 to 200 in 2023.

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- Interpretation: Strong dividend growth shows a commitment to returning value to
shareholders.

- Reason: Reflects improved profitability and cash flow.

- Recommendation: Ensure the dividend payout is sustainable. Balance between reinvestment in

the business and shareholder returns.

5. Stock Dividend (%)

- Trend: Issued stock dividends in previous years, but none in 2023.

- Interpretation: The lack of stock dividends in 2023 could indicate a shift in dividend policy
towards cash dividends.

- Reason: Preference to return cash to shareholders rather than diluting equity.

- Recommendation: Communicate dividend policy changes clearly to avoid investor

uncertainty.

6. Price Earnings Ratio

- Trend: Decreasing from 6.7 in 2020 to 3.42 in 2023.

- Interpretation: Lower P/E ratio indicates the stock might be undervalued or earnings have
significantly increased.

- Reason: Could be due to higher earnings growth or lower market expectations.

- Recommendation: Highlight growth drivers to the market and address any undervaluation
concerns.

7. Basic Earning per Share (Rs)

- Trend: Increasing from 12.39 in 2020 to 47.18 in 2023.

- Interpretation: Significant growth in EPS shows strong profitability.

- Reason: Likely due to improved operational efficiency and higher revenue.

- Recommendation: Continue focusing on profitability while ensuring sustainable growth

practices.

8. Net Spread to Gross Return (%)

- Trend: Slightly decreasing from 60.8 in 2020 to 52.45 in 2023.

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- Interpretation: Margin compression, indicating competitive pressures or rising costs.

- Reason: Could be due to a challenging interest rate environment or increased competition.

- Recommendation: Optimize cost structures and explore new revenue streams to improve
spreads.

9. Profit before Tax to Gross Income (%)

- Trend: Slight fluctuations, generally stable around 35-38%.

- Interpretation: Stable profitability before tax indicates good operational control.

- Reason: Consistent performance in core banking activities.

- Recommendation: Maintain efficiency and control over costs to sustain profitability.

10. Profit after Tax to Gross Income (%)

- Trend: Slight decrease from 22.7 in 2021 to 18.61 in 2023.

- Interpretation: Marginal decline in net profitability.

- Reason: Potential increases in tax liabilities or other expenses.

- Recommendation: Explore tax optimization strategies and manage operating expenses

carefully.

11. Operating and Other Expenses to Income before Provisions (%)

- Trend: Decreasing from 39.7 in 2020 to 28.88 in 2023.

- Interpretation: Improved efficiency and control over operating expenses.

- Reason: Cost management initiatives and operational efficiency improvements.

- Recommendation: Continue focusing on cost control while investing in growth opportunities.

12. Gross Financing/Advances to Deposit Ratio – ADR (%)

- Trend: Decreasing from 61.4 in 2022 to 44.74 in 2023.

- Interpretation: Lower ADR indicates a more conservative lending approach.

- Reason: Could be due to a shift in focus towards liquidity or reduced demand for loans.

- Recommendation: Balance between liquidity and profitability by managing the lending

portfolio effectively.

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13. Investment to Deposit Ratio – IDR (%)
- Trend: Fluctuating, peaking at 77.4 in 2022 and decreasing to 70.91 in 2023.

- Interpretation: High IDR indicates significant investment in securities relative to deposits.

- Reason: Reflects strategic allocation towards investment assets.

- Recommendation: Ensure a balanced investment portfolio to mitigate risks and enhance

returns.

14. Capital Adequacy Ratio (%)

- Trend: Increasing from 17.8 in 2020 to 22.39 in 2023.

- Interpretation: Strong and improving capital base, indicating financial stability.

- Reason: Good earnings retention and/or capital injections.

- Recommendation: Maintain a strong capital base to support growth and absorb potential
losses.

15. Return on Average Assets (%)

- Trend: Increasing from 1.7 in 2020 to 3.02 in 2023.

- Interpretation: Improved asset utilization and profitability.

- Reason: Enhanced operational efficiency and higher income generation.

- Recommendation: Continue optimizing asset utilization while managing risks.

16. Return on Average Equity (%)

- Trend: Increasing from 34.6 in 2020 to 56.27 in 2023.

- Interpretation: Higher returns on shareholders' equity, indicating strong profitability.

- Reason: Effective use of equity capital and strong earnings growth.

- Recommendation: Sustain high returns while ensuring equity base supports future growth.

General Recommendations for Concerning Signs

- Market and Investor Communication: Maintain transparency with investors about strategies
and performance to manage market perceptions.

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- Cost Management: Continuously optimize costs and improve operational efficiency to
maintain profitability.

- Liquidity and Risk Management: Balance liquidity and profitability, ensuring adequate
liquidity while managing risks.

- Investment Strategies: Diversify and manage the investment portfolio to mitigate risks and
enhance returns.

- Growth and Innovation: Invest in growth opportunities and innovative practices to stay
competitive and drive future growth

Overall Financial Performance of Meezan Bank Limited (2020-2023)

Meezan Bank Limited has shown a strong and consistent improvement in its financial
performance from 2020 to 2023. Key indicators such as Book Value per Share, Basic Earning
per Share (EPS), and Return on Average Equity have demonstrated significant growth, reflecting
the bank's robust profitability and efficient use of equity capital. The increase in Market Value
per Share and consistent dividend payouts indicate growing investor confidence and a strong
commitment to shareholder returns.

However, some areas, such as the Price to Book Value Ratio and Net Spread to Gross Return,
have shown signs of challenges that need addressing. Despite these concerns, the bank's overall
stability is supported by an increasing Capital Adequacy Ratio and strong return metrics. By
addressing the areas of concern and capitalizing on its strengths, Meezan Bank can sustain its
growth trajectory and enhance shareholder value.

Internship Activities at Meezan Bank Limited: A Six-Week Overview

Introduction
During my six-week internship at Meezan Bank Limited, I had the opportunity to work in the
sales department. This experience provided me with hands-on knowledge of various banking
procedures and practices. I was involved in a variety of tasks and projects, which allowed me to
understand the intricacies of banking operations, particularly within the realm of Islamic
banking. Below, I provide a detailed account of my activities and the skills I developed during
this internship.

Week 1: Learning Islamic Banking Principles

In the first week, I was introduced to the core principles of Islamic banking, which are central to
Meezan Bank's operations. Islamic banking operates on principles that prohibit interest (riba) and
emphasize profit and loss sharing, asset-backed financing, and ethical investments.

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- Prohibition of Interest (Riba): One of the foundational principles is the prohibition of riba,
which means that earning interest on loans is not allowed. Instead, the bank earns profit through
trade, leasing, and investment.

- Profit and Loss Sharing: Islamic banking promotes risk-sharing between the bank and its
clients. This is done through partnerships where profits and losses are shared based on
predetermined ratios.

- Asset-Backed Financing: Transactions must be backed by tangible assets or services. This

ensures that the bank engages in real economic activities rather than speculative investments.

- Ethical Investments: Investments must comply with Shariah law, meaning they cannot be
made in businesses that are considered harmful to society, such as those involving alcohol,
gambling, or tobacco.

Understanding these principles was crucial for my subsequent tasks and provided a strong
foundation for my work in the sales department.

Week 2: Introduction to Account Opening Procedures

In the second week, I was introduced to the fundamental process of account opening at Meezan
Bank Limited. I learned about the different types of accounts, including current, saving,
individual, joint, and sole proprietor, partnership, private limited accounts. Each type of account
had its own set of requirements and procedures, which I meticulously learned and practiced
through form filling.

- Current Account: A current account is a bank account where you can store and withdraw
money. Salary slip and CNIC are required for opening current account. Meezan bank also offers
Asaan Current Account in which no salary slip is required for account opening. The limit of
asaan current account is PKR 1000,000.

- Saving Account: A saving account is a deposit account designed to hold money you don’t plan
to spend immediately. MBL offers profit on the amount saved because these amounts are
invested in businesses allowed by shariah (halal businesses). The profit rates vary at different
time periods. MBL also offers Asaan Saving Account in which no source of income is required.

- Individual Account: This requires personal identification documents such as CNIC, proof of
address, source of income. Individual accounts are basically of two types stated as follows
 Salaried: Requirements for a salaried person are salary slip and CNIC.
 Self employed: Requirements for a self employed person are CNIC, one business letter
head better to be stamped and signed, visit of business organization (flex and banner are
mandatory), pictures of visit.

- Sole Proprietor Account: In addition to personal identification, this required business

registration documents, proof of business address, and a tax identification number, sole
proprietor stamp, four letter heads.

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- Partnership Account: Requirements for partnership account are CNIC of all partners, letter
head, partnership NTN (National Tax Number), partnership deed (detail of all partners),
documents of partnership attested from registrar office.

- Joint Account: The members of joint account have a close blood relation with each other.
Requirements for joint account are same.

- Private limited Account: Requirements for private limited account are stamp of private
limited, company’s registered documents attested from SECP (Security Exchange Commission
of Pakistan), requirements form 29, memorandum, article, form 2 certificate in corporation.
 First letter head: for request
 Second letter head: includes list of directors
 Third letter head: includes form A7
 Fourth letter head: includes UBO (Ultimate Beneficiary Owner) of the company
 Fifth letter head: it is an extra letter in case of different address

- Meezan women first account: A dedicated bank account exclusively offered to Resident
Pakistani women. Meezan Women First Account enables fast and convenient day to day
transactions directly from the account and comes with a customized vertical debit card, cheque
book, free/discounted banking services and lucrative discounts on exclusively curate brands
and products.
Meezan Women First Account is saving category and can be opened in both PKR and foreign
currencies (USD\GBP and EURO). Women can open this account by providing income
documents of their husbands\financial supporters.

- Kids Account: Now kids can also open their accounts in MBL for saving their pocket money.
Requirements for kids account are
 Bay form (for under 18 kids)
 Father\ financial supporter’s salary slip or letter head
 Father CNIC copy

_ Trust Account: The requirements for opening a trust account are as follows
 Attested Copy of certificate of registration.
 List of all members/leading person that lead to trust.
 Copy of CNIC of all members must be required.
 Visit report is also attached with the form and the visit is done by branch manager.

- Photo Account: If the applicants’ signature are simple (Urdu sign or simple name written),
shaky or not matching with CNIC signature then photo account is opened for which two passport
size photos are required and thumb impressions (both left and right thumbs) with every signature
are necessary.

- Filling account opening forms: I have filled various account opening forms during my
internship period. For account opening forms the CNIC number, mobile number, CNIC copies

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Next of kin’s CNIC copy, customer personal and professional information is necessary. For
thumb account the photos of customers are also necessary.

- Further process of account opening: includes biometric, compliance, key fact sheet (charges
mentioned), signature specimen card, CRS form (declaration for tax residency self certification
required in case of individual, sole proprietor and joint account).

Through this exercise, I gained a comprehensive understanding of different types of accounts

which can be opened at Meezan Bank, the documentation and verification processes essential for
opening different types of accounts.

Week 3: Mastering Deposit Slip and Cheque Filling

The third week focused on the practical aspects of banking transactions, specifically the filling of
deposit slips and cheques.

- Deposit Slip Filling: I learned to accurately fill out deposit slips, ensuring all necessary
information such as account numbers, depositor’s name, and the amount being deposited was
correctly entered. This task emphasized the importance of attention to detail and accuracy.

- Cheque Filling: This involved understanding the components of a cheque, including the
payee’s name, date, amount in words and figures, and the drawer’s signature. I also learned to
process cheques for deposit and withdrawal, ensuring compliance with bank protocols.

This week’s activities honed my skills in precise data entry and familiarized me with the
common errors to avoid in financial documentation.

Week 4: Clearing, Transfer of Cheques and Floor Time Management

In the fourth week, I delved into the processes of cheque clearing and transfer. This involved
several steps:

- Cheque Clearing: Understanding the cycle of cheque clearing, from the moment a cheque is
deposited to its final settlement. This included learning about the roles of clearinghouses and
interbank transactions.

- Cheque Transfer: Handling the transfer of cheques between accounts within the bank and to
accounts in other banks. This required meticulous verification of cheque details and ensuring all
transfers were recorded accurately.

- Floor Time Management: I learned the importance of efficiently managing time on the floor.
This included understanding peak hours, managing customer flow, and ensuring that customer

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needs were addressed promptly and effectively. This experience emphasized the need for quick
decision-making and the ability to handle multiple tasks simultaneously.

These tasks provided me with insights into the back-end operations of banking and the
importance of systematic checks to prevent fraud and I learned effective floor time management
in the modern banking environment.

Week 5: Supervision, Stamping, and Issuance of Cheque Books

The fifth week was dedicated to supervisory tasks, the stamping of account opening forms, and
the issuance of cheque books.

- Supervision of Forms: I supervised the filling of various forms to ensure accuracy and
completeness. This involved cross-checking information and providing guidance to customers
when necessary.

- Stamping of Account Opening Forms: An essential task was the stamping of account opening
forms. This step was crucial for validating the documents and ensuring they met the bank’s
requirements for authenticity and approval. I learn about different about of stamps which are
necessary for account opening

And learn about the use of the stamps on the right place. Following stamps are required to be use
on account t opening form:

 Signature Verified
 Signature admitted
 Void
 Picture Admitted
 Original Seen
 PBO stamp
 Operation manager Stamp
 Branch Manager Stamp
 L.t, R.t thumb
 Time, Date stamp on the front page of form.

After form completion and proper Stamping, Nadra verisys is attached and the form is
authorized by operation manager, and after that PBO, Operation manager and branch manager do
their signatures on their specified place. And the complete procedure is given

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- Issuance of Cheque Books: I learned the process for requesting and issuing cheque books,
which included verifying the account holder’s details and ensuring all necessary approvals were
in place.

These responsibilities enhanced my understanding of the importance of oversight, validation, and

thorough verification in banking processes.

Week 6: Digital Current Account and Customer Interaction

During the sixth week, I was introduced to the bank’s digital current account services and
customer interaction protocols.

- Digital Current Account: I learned about the features and benefits of digital current accounts,
including how to assist customers in setting up and managing these accounts online.

- Customer Interaction: This involved providing general information and guidance to

customers, addressing their queries, and assisting them with banking procedures. Effective
communication and customer service skills were crucial in this role.

These experiences highlighted the importance of digital banking solutions and customer service
excellence in the modern banking environment.

- General Activities of the Sales Department

Throughout the internship, I engaged in several general activities specific to the sales
department. These activities included:

- Customer Relationship: Management: Building and maintaining relationships with clients,

understanding their needs, and offering appropriate banking products and services.

- Promotional Activities: Assisting in the promotion of new banking products and services,
including participating in marketing campaigns and customer outreach programs.

- Product Knowledge: Gaining a thorough understanding of the bank’s products and services,
including savings accounts, current accounts, fixed deposits, and various types of loans.

- Administrative Support: Providing administrative support to the sales team, including

preparing reports, managing customer databases, and coordinating with other departments for
seamless operations.

These activities equipped me with practical knowledge and skills in sales and marketing within
the banking sector, reinforcing my ability to contribute effectively to a sales team.

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 RECOMMENDATIONS FOR FURTHER IMPROVEMENT

During my six-week internship at Meezan Bank Limited, I observed several areas where
improvements could be made to enhance operational efficiency and customer satisfaction. Here
are some recommendations based on my observations:

1. Streamline Account Opening Procedures

Problem Observed:
The account opening process, particularly for joint and sole proprietor accounts, can be time-
consuming due to the extensive documentation and verification required.

Recommendation:
Implement an online pre-verification system where customers can upload necessary documents
in advance. This would reduce the time spent at the branch and speed up the overall process.
Additionally, providing a checklist and clear instructions online could help customers prepare all
required documents beforehand.

2. Enhance Digital Banking Services

Problem Observed:
While the digital current account services are beneficial, some customers find the online platform
challenging to navigate, leading to frequent visits to the branch for assistance.

Recommendation:
Invest in user-friendly interface improvements for the digital banking platform. Conduct
usability testing with a diverse group of customers to identify pain points. Additionally, offer
comprehensive online tutorials and customer support chat bots to assist users in real time.

3. Improve Customer Service Training

Problem Observed:
There were instances where customers had to wait longer than expected for assistance,
particularly during peak hours, due to staff being occupied with other tasks.

Recommendation:
Provide additional training for staff on time management and customer service techniques.
Implement a queue management system to ensure that customers are attended to promptly.
Additionally, consider hiring part-time staff during peak hours to manage the increased customer
flow.
4. Enhance Professionalism and Communication Among Staff

Problem Observed:
There were occasional lapses in professionalism and communication among staff, which affected
customer experiences and the overall working environment.

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Recommendation:
Invest in comprehensive training programs focused on professionalism, effective
communication, and workplace etiquette. Regular workshops and seminars can help reinforce
these values. Encourage a culture of mutual respect and teamwork among staff to foster a
positive work environment. Implement a feedback system where employees can share their
experiences and suggestions for improving professionalism and communication.

5. Establish Comprehensive Feedback Mechanisms

Problem Observed:
There is a lack of a structured feedback mechanism for customers to easily share their
experiences and suggestions for improvement.

Recommendation:
Establish a comprehensive feedback system that allows customers to provide feedback through
multiple channels, such as in-branch kiosks, online forms, and mobile apps. Regularly review
and analyze this feedback to identify common issues and areas for improvement. Additionally,
communicate any changes or improvements made based on customer feedback to show that their
opinions are valued and acted upon.

6. Improve Bill Payment Processes

Problem Observed:
The bill payment process is slow, causing long wait times for customers, especially during rush
hours.

Recommendation:
Introduce an automated bill payment system that can handle transactions more efficiently.
Encourage customers to use digital payment options through the bank's mobile app or online
banking services. For in-branch payments, set up dedicated bill payment counters to reduce wait
times and manage customer flow more effectively.

7. Enhance Branch Management During Peak Hours

Problem Observed:
During rush hours, the branch becomes inefficient in managing the increased customer flow.

Recommendation:
Implement a dynamic staff scheduling system to ensure adequate staffing during peak hours.
Train staff in crowd management techniques and improve the physical layout of the branch to
facilitate better customer movement. Additionally, consider setting up a triage system where a
staff member directs customers to the appropriate service counter, thereby streamlining the
process.

By addressing these areas, Meezan Bank Limited can enhance its operational efficiency, improve
customer satisfaction, and continue to uphold its reputation as a leading Islamic bank.

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8. MBL’s Financial Stability and Sustainable Profitability

Problem Observed:
By the analysis of MBL’s financial ratios I’ve observed decreased price to book value ratio,
slight compression in Net Spread to Gross Return, reduced Gross Financing/Advances to Deposit
Ratio (ADR), and high Investment to Deposit Ratio (IDR).

Recommendations:
To enhance market perception and improve the Price to Book Value Ratio, Meezan Bank
Limited should communicate its growth drivers and financial health more transparently to
investors. To counter the margin compression reflected by the Net Spread to Gross Return, the
bank should explore new revenue streams and optimize cost structures. Balancing liquidity with
prudent lending growth can improve the Gross Financing/Advances to Deposit Ratio (ADR).
Additionally, ensuring a diversified investment portfolio can mitigate risks associated with a
high Investment to Deposit Ratio (IDR). By addressing these concerns, Meezan Bank can
strengthen its financial stability and support sustainable profitability.

CONCLUSION

I spent six weeks of my internship at MBL Model Town Link Road branch. During these six
weeks, I feel myself be a part of bank. Even this was my experience of working in a bank, but I
learned a lot in from my very first experience. Business of the bank is quite up to the mark
keeping in view the standard of banking industry. Bank is located at link road where Allied bank,
MCB bank and Bank Al falah are also doing business in the same area but Meezan Bank limited
is competing with all these banks and increasing its clients.

Bank is giving better services to its customers as well as better facilities 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.
One of the most important aims of the student life is to express him / her correctly and
adequately. This was believed in my mind when I first decided to go to Islamic Meezan Bank
Limited to complete my internship program. With their focused strategy and product
development initiatives planned for the year, Meezan Bank is strongly positioned to meet these
challenges. The bank has very well repute in the market. Overall bank is going well and doing a
good business but there are few problems also which I’ve personally observed as an internee and
I’ve proposed recommendations (stated above) for improvement in those concerning areas.

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