Muhammad Naeem Sibtain

LHR-0262
Section C
Vehari Chowk Branch,
Multan





Acknowledgement


Believe that the God is one who is very merciful to his creation and
believe that he is Master of havens and the nature around us.

I also believe that MUHAMMAD MUSTAFA (P.B.U.H) is
the everlasting prophet and the messenger of the GOD who deliver the
GIFT OF GOD the HOLLY QURAN to his loving fellow
beings. I supremely believes saying of prophet MH. (P.B.U.H)

Do you love your creature?
Do love his fellow beings first.

I wish to express deep sense of gratitude
to MR. Faraz Abdul Rahim, Operation Manager and his all team
Vehari Chowk, Multan, who provided me the opportunity to achieve this
practical experience under his valuable supervision and helping
suggestions to complete this report.
I am thankful to all those people who
helped me a lot and provided me an opportunity and learn every aspect of
Islamic Banking.





Muhammad Naeem Sibtain

I
Preface


usiness environment are becoming more and more complex
with the passage of time. To understand and deal with the
riddle phenomenon, one need a lot of energy and
knowledge .So business education has become an evolving science,
which help to solve the business problems. Academic education provides
general knowledge about business decision and policies.

Training is an integral part of the Job. It provides the opportunity of
peeping into the real economics of the country. It enables us to evaluate
and understand the practical application of all the terms & techniques that
we have studied during our classroom training.

This report is an upshot of my 34days weeks Training in Meezan Bank
Limited, Vehari Chowk Branch, Multan. In spite of newly opened branch
it remains the center of hustles in business activities. It always endows
with great covenant of rally round in terms of funds and services at all
epochs of its dynamism.
B
History

eezan Bank Limited, a publicly listed company, was incorporated on
January 27, 1997 and started operations as an investment bank in August
that year. In January, 2002 in a historic initiative, Meezan Bank was
granted the nations first full-fledged commercial banking license as a dedicated
Islamic Bank, by the State Bank of Pakistan.
By implementing robust and aggressive strategic and tactical initiatives on the
side of consumer banking, Meezan Bank aims to fulfill its prime objective of
providing customers accessibility and convenience, within an atmosphere and culture
of dedicated service and recognition of their needs.

Since its inception as an Islamic commercial bank in 2002, Meezan Bank has
been one of the fastest growing banks in the history of the countrys banking sector.
The Banks deposits grew at an average rate of 46% p.a. from December 2002 to
December 2012 while its branch network grew from 6 branches in 2002 to 366
branches in September 2014, an average growth rate of 48% p.a. The Bank has
established a strong and credible management team comprising of experienced
professionals that has achieved a strong balance sheet with excellent operating
profitability and strong ratios. The JCR-VIS Credit Rating Company Limited has
upgraded the Banks long-term entity rating to AA (Double A) from AA- (Double A
minus) and short term rating at A1+ (A One Plus) with stable outlook. The short term
rating of A1+ is the highest standard in short term rating. Meezan Bank is the only
Islamic bank with AA credit rating in the Islamic banking industry in Pakistan.

The Banks main shareholders are leading financial institutions of the Region
namely, Noor Financial Investment Company, Pak-Kuwait Investment Company, and
the Islamic Development Bank of Jeddah. The established position, reputation,
strength and stability, of these institutions add significant value to the Bank through
Board representation and applied synergies.

Meezan Bank has a strong technology focus. It has invested heavily in state-
of-the-art software applications namely Temenos T-24 and Oracle. It has also
recently upgraded its hardware platform and also has a hot disaster recovery site in
place to cater to any unforeseen eventualities.

M
Operations Department
Operation department comprises the following sub departments
Cash Department
Remittances Department
Account opening Department
Clearing Department

Cash Department performs two main functions:
Cash Deposits
Cash Payments

CASH DEPOSITS
Cash receiving officer receives cash along with pay-in slip from the customer.
He checks if the deposit slip is properly filled up containing title of account, account
number, date and amount in word and figures. He also verifies signature. Cash is
received by the cash receiving officer, twice counted and matched with the deposit
slip. The cash details are written on the deposit slip and are also entered in account of
the customer. Cash received stamp is affixed on the face of both deposit slips along
with the signature of the cash receiving officer and the customers copy is given to the
customer as a receipt.

Deposit slip given to the Operation Manager. Again proper scrutiny is made
by the incharge cash department on cash receipt. Operation Manager signs the deposit
slip; Deposit slip is checked and verified in the concerned account in the system.

PAYMENT OF CHEQUES
The process for payment of cheques for local and foreign currency is same.
First the customer presents the cheque or holder to branch and the particulars of
cheque are properly filled in. Signature of the holder is taken on the back of the
cheque. Cheque handed over to the officer cash department for scrutiny where officer
checks the date, amount in words and amount in figures, payee's name crossing if any,
account number, cheque serial number, any material alterations, endorsements and
signature of the customer. Account is debited and then the officer cancels cheque. It is
posted in the system and posting stamp and number is affixed on it. Cheque is handed
over to the cash payment officer for payment. One more signature on the back of the
cheque is taken from the holder to match with the first one, and then cash is paid to
the payee. Cash detail is written on the back of the cheque. Cash paid stamp is affixed
on the face of the cheque. Entry is passed in the system.

If the payment is of Rs. 100,000 the cashier can make it on its own because of his
assigned limit. If the amount is greater than Rs.100,000 the cashier and Operation
Manager verifys the check and sings it. Then the payment is made.



ACCOUNT OPENING DEPARTMENT:

ACCOUNT OPENING PROCEDURE
Following types of accounts are being maintained at bank
Individual Account
Joint Accounts
Proprietorship A/C
Partnership A/C
Private Limited Company A/C
Public Limited Company A/C.

The operation/procedure requirement that is needed for Individual Account
differs greatly from the Joint Accounts proprietorship A/C, Partnership A/C, Private
Limited company A/C and Public Limited Company A/C.

INDIVIDUALS ACCOUNT:
When a single man or woman opens an account in his or her own name and
has the right to operate, it is called individual A/C.

DOCUMENTATION:
Copy of National Identity Card.
Source of Income

OPERATION:
The person place in the type of account and type of operation required in the
account opening form.
He/she fills in part 1 of the form, a fix his/her either two of four similar signature (
or thumb expression in the signature space ) and get it introduced and signed by a
person who already has an account with the bank and write his account number in
the specific rows in a specific space.
The person fills his or her father, mother, husband/wife or any other relatives
name, his/her address, phone number, his or her sign to certify this requirement.
This requirement is needed because in his/her absence bank can have
correspondence with a specific person.
The person deposits the initial amount for opening account onto the cash counter.
The person put his signature on form on two places in authorized Signature and
fills in the Title of Account space by writing his name.
If the person put his signature in Urdu or any other language other than English,
then photo account of that particular person will be opened.
After completing documentation by the person the account is opened in the same
day.






JOINT ACCOUNT:
When two or more persons neither partners nor, trustees, open an account in
their name is joint account.
DOCUMENTATION:
Copy of N.I.C card.
Source of Income

OPERATION:
The person checks the type of account and type of operation required in the
respective box on the form.
The person fills the Part-1 and Part-II
Signature of box or all persons are obtained on the formed in the area specified
for signature.
In the title of account space names of all persons maintained.
Account holders specified in the form that they will operate the form singly or
jointly.

PROPRIETORSHIP ACCOUNT:
When the owner of the firm operating singly, open an account in his firm name.
DOCUMENTATION
Copy of C.N.I.C.
Status of the firm.
Copy of Sole Proprietorship Declaration.

OPERATION:
All operation remains the same, except that the firm name is written in title of
account area and Signature of the proprietor in the specified area with stamp.



PARTNERSHIP ACCOUNT:

The account is opened in the firm name and all partners designate one or two persons
to act behalf of the partnership firm all acts of the firm jointly and severely.

DOCUMENTATION:
Account Opening Request on letterhead
Copy of C.N.I.C of all partners.
Status of the firm.
The attested copy of Partnership Deed.
Operation of the A/C (as per deed).
Third party Mandate.
Letter showing the authority of one or more partners to act on.




OPERATION:
All other requirements are same except that all partners dully sign the form,
cards are signed by all of those partners who will act on behalf of the firm.




PRIVATE LIMITED COMPANY ACCOUNT :
DOCUMENTATION
C.N.I.C of all partners.
Articles and Memorandum of association.
List of directors.
Resolution of Board of directors.
Certificate of Incorporation Form 29 (B) (Lasted Copy).

OPERATION:
The person authorized in the resolution of the board of directors put their
signature on the S.S Card.
Next of Kin requirement is not need in a case of Private Limited Company.
Other procedure is same.
After completing each and every formalities are signed by all partners who
will act on behalf of the firm.
PUBIC LIMITED COMPANY ACCOUNT:
DOCUMENTATION:
Copy of C.N.I.C of all partners.
Articles and Memorandum of association.
List of directors on companys letterhead
Resolution of Board of Directors with stamp
Certificate of Incorporation
Certificate of commencement of Business.
Latest form-29

OPERATION:
Operation is same as Private Limited Company


REMITTANCES DEPARTMENT:
In remittances, following banking instruments is used:
Pay order
The procedure for dealing with all these under local as well as foreign currency in
Meezan Bank is as under.
PAY ORDER

A pay order is a written order issued by a bank, drawn upon & payable by
itself, to pay a specified sum of money to or to the order of a specified person.

PROCEDURE FOR PAY ORDER

Application form is given to the customer to fill. Two signatures are taken on
the form one for request and other for receiving the instrument. All the particulars of
application form are checked. Pay order is only issued the account holders of the
Bank. Customer who is maintaining his account with the branch, he gives cheque for
total amount of instrument.

Application form is then given to the Remittances Incharge for issuance of
instrument. He enters all the particulars of the application form in the system and
computer gives an Auto Control Number to the instrument. Printout is taken on the
block of payment Order. Two authorized officers of the branch then sign it. .
When instrument is presented for payment, it is posted in the system and canceled by
the Operation Officer after proper scrutiny.

CLEARING DEPARTMENT:
CLEARING PROCESS (INWARD/OUTWARD)

There are four types of clearing
Normal Clearing
Same day Clearing
Intercity Clearing
US Dollar Clearing

Here the local cheques are received that are drawn on MBL. All the cheques
are received on one counter along with the paying slips duly filled in properly
containing particulars of cheques and account holder. Customers Copy of paying slip
is handed over to the customer by putting stamp for #cheque received for collection
for on it duly signed by officer. . These cheques are scrutinized and cheques for local
clearing are separated from OBC.

Clearing officer checks and verifies title of all the cheques deposited by the
customers to confirm the good title of the cheques. Cheques are scrutinized properly
and paying slips are separated from cheques. Special crossing, endorsement and
clearing stamps are affixed on the cheques. All the cheques are then entered into the
clearing system of the bank. Print out of the clearing is taken and details are attached
with the cheques of each bank. Details of these banks are then entered into the
clearing schedule containing number of cheques presented and their total amount
against the name of each bank. Then total number of cheques presented to all banks
and their total amount is written on the foot of that schedule, which is tallied with the
clearing register.

Next morning, these cheques are delivered to the respective banks in clearing
through NIFT between 9:00 to 9:30AM and for outward clearing at 4:00PM. If any
cheque is not passed due to insufficient balance or any other reason, Officer Cash
Department returns the same cheque by attaching a cheque return memo containing
reason for return. This cheque is entered into the cheque returned register and bank
charges are deducted according to the schedul charges. .


Lockers:

These are one of the services that MBL provides to its clients for safekeeping
of their Valuables and documents at cheaper rates. These are available in three sizes at
the designated branches. These are small, medium and large. These are usually used
for keeping the gold, documents etc. MBL issues lockers on ijara basis and 3000
rupees are taken as security which is refundable.


ATM BALANCING


ATM is an electronic telecommunications device that enables the customers of
a financial institution to perform financial transactions without the need for a human
cashier, clerk or bank teller. On most modern ATMs, the customer is identified by
inserting a plastic ATM card with a magnetic stripe or a plastic smart card with a chip
that contains a unique card number and some security information such as an
expiration date Authentication is provided by the customer entering a personal
identification number (PIN).

Brach balance the ATM cash daily between 9am to 10am.After taking the
print of cash position from ATM and print of ATM cash account form T-24 system
and after taking the cash cassettes along with the rejected bin, tellers counts actual
cash and compare cash position with ATM cash GL account. ATM cash should match
with actual cash. If actual cash is greater than ATM cash account it means overage
and if actual cash is less than ATM cash Account means shortage. ATM cash is
credited against the same balance showing in ATM cash account and teller fills the
ATM balancing logbook annexure B and this logbook is signed by the two ATM
custodians.













PERSONAL & CORPORATE
BANKING SERVICES





Rupee Current Account
Rupee Savings Account
Dollar Saving Account
Karobari Munafa Account
Meezan Bachat Account

Meezan Labbaik
Meezan Business Plus
TERM CERTFICATES
Certificate of Islamic Investment
Meezan Amdan Certificate
Monthly Mudarabah Certificate
Meezan Providence Certificate
Dollar Mudarabah Certificate