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Thursday, January 24, 2013

Meezan Bank free internship Report 2013


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, Lahorewithout 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.

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 Karachistock 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 Pakistanin 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 Pakistanand 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 Pakistanwas 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.

Pakistan’s banking sector consisting of Islamic Banks, Private Banks, Public Sector Banks, and Micro Finance Banks. These Banks are doing Corporate Banking, Trade Financing, Lease Financing and some Banks are providing online banking facilities, ATM facility and money transfer facilities also.  

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.

Mission Statement:

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 Call Center
      
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 (0215)


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 23rdApril, 2011 I worked in Customer Service where from I learnt a lot regarding attention given to customers by the staff of branch.

From 25thApril, 2011 to 16th May, 2011 I worked in Clearing & Remittance department where at I learnt about Inward Clearing, Outward clearing, Transfer of Funds.

From 16thMay, 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, 2011to 23 April, 2011where 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, 2011to 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 Pakistanwhere 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, 2011to 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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