m& b project

8/7/2019 m& b project

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Thanks to Allah for providing me the strength, courage, direction and skills to learn,

acquire knowledge and the ability to accept and meet challenges.

Secondly I would like to thank all those who have helped in performing this project

especially Muddassar Ahmad Bhatti and Atif Munir who is Manager Operations at

Meezan Bank.

I would like to appreciate all those people who give their precious time to conduct

interview and to fill questionnaires. I would like to express my sincere gratitude to

my Supervisor Ms. Tahira Nisair.

I hope this project will be beneficial for the student to come in UE after us. Once

again I would like to thank all those who have been involved directly or indirectly in

this project.

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s

This thesis is dedicated to our parents, who taught us that the bestkind of knowledge to have is that which is learned for its own sake.

It is also dedicated to my mother, who taught me that even the

largest task can be accomplished if it is done one step at a time.

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Executive Summary

This research is a part of my Bachelor of Business Administration degree. The

purpose of this research is to explore the potential of Banking in Pakistan and

to find out the challenges & opportunities faced by Banking Industry. In this

project comparison of consumer financing products of local and foreign banks

have also been done and the problems faced by borrowers and lenders have

also been identified. There are Meezan islamic have been selected in this

project, from which interviews and surveys are conducted.

Banking was backed by the SBP to give boost to economic growth through demand-

pull pressure. Various instruments of bank have attractions for consumers for reasons

that are dictated by personal desires, income constraints, paying capacity, social needs

and access to getting loans. Rising interest rates, spiraling service charges and

deterioration in quality of service are bringing down the demand for personal loans,

credit cards and auto financing. Consumer banking is facing new challenges as a

result of interest hikes.

The real beneficiaries of banking are the people who did not have capacity to

purchase expensive household items in a single go but could afford them because of

banking, the commercial banks that have been earning large interest and huge returns

on their investment in consumer finance and the economy that got impetus for

growth.

Local banks are preferred by people for general banking services because of their low

charges and wide branch network but for consumer banking people prefer foreign

banks because of their good customer service and wide range of facilities. Despite of

so many changes in consumer financing regulations banks customers are still facing

hidden charges problem, difficulty in getting consumer loans and not highly satisfied

by tenure of consumer loans.

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Due to lack of awareness many problems are faced by the banks customers and the

industry growth rate is declining. Banks should take steps to promote consumer

banking in such a way that the awareness if consumer banking services could be

increased and the industry could boost at a high rate. New services need to be

introduced and services and banks charges & markup rates should be reduced.

In case economy is to sustain growth through consumer finance as one of the

important factors of growth, then income inequalities should be bridged and income

level be increased to develop paying capacity of large number of consumers.s

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Section 1.0 Introduction

1.1 Background

In Pakistan all banks & DFIs works under the supervision of the State Bank of

Pakistan, the four major sectors in which SBP has divided banks operations are

Corporate, SME, Agriculture and Consumer. SBP provide regulations according to

which all banks should work & continuously keep a track that banks are complying

through the regulations or not.

1.2 Purpose

In recent years, Consumer Banking has made tremendous progress and has played a

positive role in boosting the economy and in meeting the needs and requirements of

the consumers. Whether large or small bank, multinational or local, each one of them

is geared towards making its mark in an already competitive environment that is the

outcome of consumer banking. The growing economy and further improvements in

the level of household income have created many opportunities for consumer

banking. In this research the past, present & future of consumer banking will be

analyzed.

1.3 Objective

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This report will give an overview of the problems in current system of consumer

banking from the point of view of both borrowers & lenders and explore the

upcoming opportunities in the area of consumer banking.

Main Objectives:

Comparison of services by local & foreign banks

Problems in current system of consumer banking

Solution for problems faced by lenders & borrowers

Exploration of opportunities in future

Role of consumer banking in Economic Development

1.4 Scope & Limitation

Issues like, problems in consumer banking due to which some banks temporarily stop

consumer financing, why some banks havent implemented full fledge consumer

banking and what are the opportunities in consumer banking & its effect on economic

development will be analyzed.

1.5 Assumptions

Consumer Banking Industry has a lot of potential to grow

Both borrowers and lenders are facing a lot of problems

High Interest, wrong policies, lack of education, etc are the factors for decline

of consumer banking industry

Consumer Banking is still a highly profitable banking sector although its

facing a lot of problems

1.6 Study Plan

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Section I of this report is totally based on secondary data consist of an

overall view of Pakistan Banking Industry, brief introduction of Meezan bank

which are included in this research.

Section-11 of this report consists of recommendation and conclusion bases on our

finding & analysis of this whole research.

2.0 Industry Overview from Secondary Data

2.1 Banking Industry of Pakistan

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In Pakistan all banks & DFIs works under the supervision of the State Bank of

Pakistan, the four major sectors in which SBP has divided banks operations are

Corporate, SME, Agriculture and Consumer. SBP provide regulations according to

which all banks should work & continuously keep a track that banks are complying

through the regulations or not.

Pakistan is the sixth most populous country of the world fourth in Asia and second in

SAARC countries, with a population of more than 160 Million of which 100 Million

is less than 25 years old and with a 30 Million strong middle class enjoying many

benefits from consumer financing or donors agencies. (Alam, 2007)

Banking sector in Pakistan has undergone a significant transformation in the recent

years and has also acted as a catalyst in the revival of the economy. Many

privatization, acquisition and mergers took place during last 7 years which started

from privatization of Muslim Commercial Bank and from time to time Allied Bank

Limited, United Bank Limited, Habib Bank Limited were also privatized by the

government. These years also witnessed acquisition of Union Bank by Standard

Chartered Bank, Prime Bank by ABN Amro, etc also took place and recently

Metropolitan Bank has been merged with Habib Bank AG Zurich. All these

privatization, acquisition and mergers resulted in high foreign investment in Pakistan

and improved performance of the banking industry while its has also helped banks to

gain more market share in short time and to easily meet the high paid-up-capital

requirement of SBP i.e. Rs. 6 Billion till 2009 which was Rs.0.5 to Rs. 1 Billion

in 2000.

The commercial banking sector in Pakistan can be segregated into three categories -

(1) five large commercial banks with total branches in excess of 700 each. Four of

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these banks have been denationalized in recent years, (2) branches of foreign banks in

Pakistan and (3) local private banks.

Table 2.1

2000-2001 2003-2004 2006-2007

No. of Schedules Banks 43 39 41

No. of Schedules Banks

Branches

6724 6373 7746

Scheduled Banks

Deposits

Rupees in Billion

1276 2002 3373

Scheduled Banks

Advances

Rupees in Billion

864 1242 2376

Scheduled Banks

Assets

Rupees in Billion

3086 4193 8744

Online Branches 450 2475 4179

ATMs 259 786 2294

Credit Card Holders 29200 809000 5815000

(SBP, 2006)

The market has been dominated by five large commercial banks. Foreign banks have

been in operation for a long time as well, but their business is concentrated with large

multinational clients. Local private banks were allowed to be formed in 1991 and

currently there are about 30 such banks, which tend to serve local small to medium-

sized enterprises.

Pakistan has a highly developed financial sector consisting of 4 public 12 private 21

commercial banks, DFI, leasing companies, mutual funds, Islamic venture capital

fund companies. The commercial banks have assets of over one trillion rupees of

which about 80% is held by domestic banks. (Alam, 2007)

2.2 State Bank of Pakistan (Central Bank)

The State Bank of Pakistan (SBP) is the central bank of Pakistan. While its

constitution, as originally laid down in the State Bank of Pakistan Order 1948,

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remained basically unchanged until January 1, 1974, when the bank was nationalised,

the scope of its functions was considerably enlarged. The State Bank of Pakistan Act

1956, with subsequent amendments, forms the basis of its operations today. The

headquarters are located in the financial capital of Pakistan, Karachi with its second

headquarters in the capital, Islamabad.

The Stat Bank of Pakistan looks into a lot of different ranges of banking to deal with

the changes in economic climate and different purchasing and buying powers. Here

are some of the banking areas that the state bank looks into;

State Banks Shariah Board Approves Essentials and Model Agreements for

Islamic Modes of Financing

Procedure for Submitting Claims with SBP In Respect of Unclaimed Deposits

Surrendered By Banks/DFIs.

Banking Sector Supervision in Pakistan

Micro Finance

Small Medium Enterprises (SMEs)

Minimum Capital Requirements for Banks

Remittance Facilities in Pakistan

Opening of Foreign Currency Accounts with Banks in Pakistan under new

scheme.

Handbook of Corporate Governance

Guidelines on Risk Management

Guidelines on Commercial Paper

Guidelines on Securitization

SBP Scheme for Agricultural Financing

The principal officer of the SBP is the Governor. During December 2005, the

President of Pakistan appointed Dr. Shamshad Aktar as the new Governor of the State

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Bank for a three year term, to replace Dr. Ishrat Hussain, who retired on December 1,

2005.

2.2.1 Departments of SBP

Agricultural Credit

Audit

Banking Inspection

Banking Policy

Banking Supervision

Corporate Services

Economic Policy

Exchange and Debt Management

Exchange Policy

Human Resource

Information System

Islamic Banking

Legal Services

Payment System

Research

Statistics

Real Time Gross Settlement System (RTGS System)

Small and Medium Enterprises

2.3 Foreign & Local Banks

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2. CITIBANK N.A. - PAKISTAN OPERATIONS

3. HSBC BANK MIDDLE EAST LIMITED PAKISTAN

4. DEUTSCHE BANK AG - PAKISTAN OPERATIONS

5. BARCLAYS BANK PLC

6. OMAN INTERNATIONAL BANK S.A.O.G PAKISTAN OPERATIONS

DEVELOPMENT FINANCIAL INSTITUTIONS

1. HOUSE BUILDING FINANCE CORPORATION

2. PAKISTAN KUWAIT INVESTMENT COMPANY LIMITED

3. PAK BRUNEI INVESTMENT COMPANY LIMITED

4. PAK OMAN INVESTMENT COMPANY LIMITED

5. PAK IRAN JOINT INVESTMENT COMPANY

6. SAUDI PAK INDUSTRIAL & AGRICULTURAL INVESTMENT COMPANY LIMITED

7. PAK LIBYA HOLDING COMPANY LIMITED

8. PAK-CHINA INVESTMENT COMPANY LIMITED

SPECIALIZED BANKS

1. INDUSTRIAL DEVELOPMENT BANK OF PAKISTAN

2. THE PUNJAB PROVINCIAL COOPERATIVE BANK LTD

3. SME BANK LIMITED

4. ZARAI TARAQIATI BANK LIMITED

MICRO FINANCE BANKS / INSTITUTIONS

1. KHUSHHALI BANK LIMITED

2. ROZGAR MICROFINANCE BANK LIMITED3. NETWORK MICROFINANCE BANK LIMITED

4. TAMEER MICRO FINANCE BANK LIMITED

5. PAK OMAN MICROFINANCE BANK LIMITED

6. THE FIRST MICRO FINANCE BANK LIMITED

7. KASHF MICROFINANCE BANK LIMITED

2.4 Products / Services in Banking Sector

Some major services in banking industry of Pakistan;

14
http://www.citibank.com.pk/http://www.hsbc.com.pk/http://www.db.com/http://www.barclays.co.uk/http://www.oiboman.com/http://www.hbfc.com.pk/http://www.pkic.com/http://www.pakbrunei.com.pk/http://www.pakoman.com.pk/http://pijicl.com/http://www.saudipak.com/http://www.paklibya.com.pk/http://www.idbp.com.pk/http://www.pndpunjab.gov.pk/http://www.smebank.org/http://www.ztbl.com.pk/http://www.kb.com.pk/http://www.rozgarbank.com/http://www.pakistaneconomist.com/database2/www.networkmicrobank.comhttp://www.tameerbank.com/http://www.pomicro.com/http://www.mfb.com.pk/webmfb.nsfhttp://www.citibank.com.pk/http://www.hsbc.com.pk/http://www.db.com/http://www.barclays.co.uk/http://www.oiboman.com/http://www.hbfc.com.pk/http://www.pkic.com/http://www.pakbrunei.com.pk/http://www.pakoman.com.pk/http://pijicl.com/http://www.saudipak.com/http://www.paklibya.com.pk/http://www.idbp.com.pk/http://www.pndpunjab.gov.pk/http://www.smebank.org/http://www.ztbl.com.pk/http://www.kb.com.pk/http://www.rozgarbank.com/http://www.pakistaneconomist.com/database2/www.networkmicrobank.comhttp://www.tameerbank.com/http://www.pomicro.com/http://www.mfb.com.pk/webmfb.nsf


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SMS Alerts Term Accounts

Current Accounts Savings Accounts

Foreign Currency Accounts Cash Management Service

E-Statements Statements by Fax

Merchant Services Business Loans

Remittance Service Trade Finance

Investment Banking Lockers Facility

SWIFT Service International Banking

Current Accounts Debit Cards

ATM Traveler Cheque

Pay Order Telegraphic Transfer

Demand Draft Home Loans

Auto Loans

Personal Loans

Credit Cards

Business Loans

Running Finance

Balance Transfer Facility

Online Banking

Internet Banking

Mobile Banking

Telephone Banking

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2.5 Consumer Banking in Pakistan

Consumer banking which is one of the fastest growing sectors of Pakistan Banking

Industry is also now major interest point for the banks. Initially the consumer banking

sector was only focused by the foreign banks but its efficiency & profitability attracted

others to come towards this business but still the major share of consumer banking in

Pakistan is in the hands of foreign banks.

In a generic sense, institutional arrangements that provide consumers with financing

support to enhance their consumption and as a result thereof, improve their standards of

living should fall within the broad definition of consumer finance. For the past 50 years

commercial banks in Pakistan had completely ignored consumer financing as an activity.

Consumer banking is a huge industry with great profits massive potential for improving

economic conditions. But the banking sector has to care more for its subscribers rather

than solely about itself. It needs to offer itself. It needs to offer better services at better

terms and needs to inform the consumer completely and fully about the services.

According to an analysis, credit cards loans have increased from Rs33.538 billion duringfirst of last calendar year to Rs42.822 billion during first half of current calendar year.

Likewise, personal loans have increased from Rs120.517 billion in H1CY06 to

Rs142.373 billion in H1 CY07. Growth in auto loans has not been less impressive. It

registered an increase of approximately Rs8.0 billion from RS97.777 billion to

Rs105.444 billion during the corresponding period of growth of credit cards and personal

loans. Housing loans have also registered an increase of approximately Rs11.0 billion in

H1 CY 07 from Rs43.205 billion in H1 CY06. (Sharif, 2007)

Exposure per borrower

Rupees in 000 2004 2005 2006

Credit Cards 23 26 32

Auto Loans 423 430 411

Consumer Durable 37 29 22

Mortgage Loans 1572 1982 2025

Other Personal Loans 82 89 100

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(SBP, 2006)

Figure 2.1

Consumer Financing Share by Sector(SBP, 2006) Amount of Consumer Financing (SBP, 2006)

Figure 2.2

Figure 2.3

NPL Ratio of Consumer Financing (SBP, 2006)

2.5.1 Auto Loans

In Pakistan auto loans are purchase of brand new or used, imported or local cars for

private use. Auto financing and auto leasing both facilities are offered by most of the

banks. Salaried Persons/Self Employed Professionals / Business Persons who meet the

terms and conditions to qualify for the finance are eligible for the loan. Some banks are

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also offering both variable rate & fixed rate options for auto loans. The average market

rate for auto loans is 14-16%.

2.5.2 Home Loans

The loans taken for Buying, Building or Renovating of house/land are classified as home

loans. For home loans both variable rate & fixed rate options are also available. The

maximum duration offered by banks for home loans is generally twenty years thats why

banks conveniently give loans to permanent employees of any firm to ensure strong

repayment ability.

2.5.3 Personal Loans

Personal Loans are generally unsecured type of loans but in certain cases when the

amount of personal loans increases the normal limit its remaining portion must be

secured. Personal loans include loans for the purpose of education, marriage, purchase of

consumer durables, furnishing, traveling, etc. Generally the limit for personal loans is

maximum Rs.500, 000/-

2.5.4 Credit-Debit Cards

Credit Cards mean cards which allow a customer to make payments on credit.

Supplementary credit cards are considered part of the principal credit card. Initially only

foreign banks are offering credit cards in Pakistan but now many local banks is also

offering credit card facility. Credit Card is covered by three networks VISA, Master Card

& American Express.

Debit cards are issued to account holders of any bank in Pakistan almost all the banks are

offering debit card facility the amount used by the debit card holder is directly debited

from the account of the card holder. Debit cards are accepted at all ORIX Network in

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Pakistan and it can also be used as ATM cards which are covered by 1-Link & MNET

network in Pakistan.

2.5.5 Deposit Accounts

All the commercial banks are offering different kinds of deposit accounts these account

ranges from customer to customer to fill the need of every type of customer. Few of the

accounts provide high interest while some pay low interest & some dont pay any

interest. Some major categories of deposit accounts are;

Current Accounts

Saving Accounts

Foreign Currency Accounts

Business Accounts

Term Deposits Accounts

2.5.6 Wealth Management

Wealth management is a new kind of service introduced in consumer banking sector now

days. It covers all aspects of securing future of banks customers it includes insurance,

tax advisory, financial consultancy, investments plans, etc. Yet wealth management

service are mainly covered by few foreign banks only this is a new service are even

banks customers dont have any idea about Wealth Management Service. Almost all the

banks are offering insurance services to some of their customers but the concept of

wealth management is not behind it.

2.5.7 E-banking

To facilitate its customers all banks local & foreign are offering high technological e-

banking services. These services let the banks customers to perform many banking

activities easily without any restriction of time & place. Some of the major e-banking

services provided by the banks are;

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Phone banking

Internet banking

Plastic Cards

Online banking

Mobile banking

ATM

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History of Islamic Banking

"We must work our destiny in our own way and present to the works an economic

system based on true Islamic concept of equality of manhood and social justice"

Quaid-e-Azam Mohammed Ali Jinnah

Opening Ceremony of The State Bank of Pakistan on July 1, 1948

1947

The inception of Pakistan as the first Islamic Republic created in the name of Islam.

1980

CII presents report on the elimination of Interest genuinely considered to be the first

major comprehensive work in the world undertaken on Islamic banking and finance.

1985

Commercial banks transformed their nomenclature stating all Rupee Saving Accounts as

interest-free. However, foreign currency deposits in Pakistan and foreign loans continued

as before.

1991

Procedure adopted by banks in 1985 was declared un-Islamic by the Federal ShariatCourt (FSC). The Government and some banks/DFIs made appeals to the Shariat

Appellate Bench (SAB) of the Supreme Court of Pakistan.

1997

Al-Meezan Investment Bank is established with a mandate to pursue Islamic Banking.Mr. Irfan Siddiqui appointed as first and founding Chief Executive Officer.

1999

The Shariat Appellate Bench of the Supreme Court of Pakistan rejects the appeals and

directs all laws on interest banking to cease. The government sets up a high level

commission, task forces and committees to institute and promote Islamic banking onparallel basis with conventional system.

2001

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The Shariah Supervisory Board is established at Al-Meezan Investment Bank led by

Justice (Retd.) Muhammad Taqi Usmani as chairman. State Bank of Pakistan sets criteriafor establishment of Islamic commercial banks in private sector and subsidiaries and

stand-alone branches by existing commercial banks to conduct Islamic banking in the

country.

2002

Meezan Bank acquires the Pakistan operations of Societe Generale and concurrently Al

Meezan Investment Bank converts itself into a full fledged Islamic commercial bank. The

first Islamic banking license is issued to the Bank and it is renamed Meezan Bank.

President General Pervez Musharraf inaugurates the new Islamic Commercial Bank at aformal ceremony in Karachi.

2003

Meezan Bank establishes itself as the pioneer of Islamic Banking in Pakistan and quickly

establishes branches in all major cities of the country. A wide range of products are

developed and launched consolidating the Banks position as the premier Islamic Bank of

the country Al Meezan Investment Management Limited (AMIM), the asset managementarm of Meezan Bank, introduces Meezan Islamic Fund (MIF), the countrys first open-

end Islamic Mutual Fund.

2004

The State Bank establishes a dedicated Islamic Banking Department (IBD) by mergingthe Islamic Economics Division of the Research Department with the Islamic Banking

Division of the Banking Policy Department. A Shariah Board has been appointed to

regulate and approve guidelines for the emerging Islamic Banking industry. TheGovernment of Pakistan awards the mandate for debut of international Sukuk (Bond)

offering for USD 500 million. The offering is a success and establishes a benchmark for

Pakistan. Meezan Bank acts as the Shariah Structuring Advisor for this historic

transaction.

2005

Meezan Bank becomes the first customer of Islamic Insurance (Takaful) by signing the

first Memorandum of Understanding MoU with Pak-Kuwait Takaful Company Limited

(PKTCL). The signing of this MoU has ushered Pakistan into a new era of IslamicInsurance (Takaful).

2006

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A number of new dedicated Islamic Banks, namely Bank Islami and Dubai Islamic Bank,

commence operations in Pakistan.Meezan continues its leadership position in the industryby more than doubling it branch network to a total of 62 branches in 21 cities, clearly

establishing itself as the largest Islamic Bank of the country. Meezan Bank, becomes the

first Islamic bank to introduce 8 am to 8 pm banking at selected branches in Karachi.

2007

Meezan Bank's branch network reached the milestone number of 100 branches (including

sub-branches) in 31 cities nationwide.

CarIjarah portfolio reached Rs. 4.1 billion and the Easy Home portfolio stood at Rs. 3.1billion.

The Bank introduced Istisna' financing to cater to the working capital needs of customers.

Meezan Bank was awarded 'Best Islamic Bank in Pakistan' by Islamic Finance News of

REDmoney Group, Malaysia.Deposit base of the Bank grew to over Rs. 54 billion andthe Bank earned profit after tax of Rs. 963 million. Trade Financebusiness reached Rs. 70

billion.

2008

Meezan Bank introduced Tijarah financing to allow customers to raise funds forfinancing of stocks of finished goods.

Meezan Bank was awarded 'Best Islamic Bank in Pakistan' by Islamic Finance News ofREDmoney Group, Malaysia and 'Best Islamic Financial Institution in Pakistan' by

Global Finance Magazine, New York. Branch network grew to 166 branches (including

sub-branches) in 40 cities nationwide. Deposit base grew to Rs. 70 billion and the totalfinancing portfolio amounted to Rs. 39 billion.

2009

2009 was a watershed year for Meezan Bank. The branch network reached 201 branches

(including sub-branches) in 54 cities nationwide; deposit base crossed Rs. 100 billion;

profit/return earned on financing and investment activities exceeded Rs. 10 billion andthe Bank handled more than Rs. 100 billion of import/export business.

Being a socially responsible bank, Meezan Bank launched Meezan Labbaik,aHajj and Umrah product - the primary objective being the desire to facilitate Muslims

in performing their holy duty. Meezan Visa Debit Card was also launched during the year

which is accepted at over 30 million outlets worldwide and allows customers to withdraw

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funds from their account from more than 1.4 million ATMs worldwide and can also be

used for shopping, dining, traveling, fuel and cash needs.


REDmoney Group, Malaysia; 'Best Islamic Financial Institution in Pakistan' by Global

Finance Magazine, New York; 'Best Islamic Bank in Pakistan' for 2009 by ASIAMONEY Magazine, Hong Kong and 'Islamic Bank of the Year' for 2009 by CFA

Association of Pakistan.

Corporate assets, including corporate Sukuk stood at over Rs. 40 billion. Corporate

highlights of 2009 included Tijarah financing with PSO, Istisna financing with PARCO

andMurabaha financing with Punjab Food Department.

The Bank started implementing its new core banking application - T-24. T-24 is a core

banking software which includes banking best practices based on Temenos'

implementations in over 600 financial institutions and 120 countries across Retail,

Corporate, Private Wealth, Islamic and Micro finance and Community Banking sectors.

2010

Meezan Bank developed a number of new deposit products to cater to the unique needs

of different market segments.Among the products launched during this year were Meezan

Business Plus, a Mudaraba-based account that offers an array of free services forbusinesses, Meezan Euro Savings Account and Meezan Pound Savings Account.

Meezan Bank's Car Ijarah completed its 9th year and stood at Rs. 4.2 billion with over8,000 active vehicles. Meezan Bank stood among the top three auto-finance providers in

the country.

Al Meezan Investment Management launched Meezan Sovereign Fund - an open-end

fund; the eighth fund under its management, including two closed-end funds, five open-

end funds and one voluntary pension scheme. The Bank developed a financing product based on the concept of 'Wakalah', to encourage the development of financing

partnerships between Islamic banks and Microfinance banks.

During the year, 38 Islamic banking awareness seminars were held in 23 cities acrossPakistan and were attended by more than 4,400 participants representing customers,

general public and professionals.


REDmoney Group, Malaysia and 'Best Islamic Financial Institution in Pakistan' by

Global Finance Magazine, New York.

Meezan Bank's branch network reached 222 branches in 63 cities across Pakistan and it

became the 11th largest bank in Pakistan in terms of branch network.

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The Bank demonstrated robust business growth in 2010, closing the year with a deposit

figure of Rs. 131 billion and Import/Export business of Rs. 143 billion.

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Our Vision

Establish Islamic banking as banking of first choice to

facilitate the implementation of an equitable economicsystem, providing a strong foundation for establishing

a fair and just society for mankind.

Our Mission

To be a premier Islamic bank, offering a one-stop shop

for innovativevalue-added products and services to our customers

within the bounds of Shariah, while optimizing thestakeholders value through an organizational culture

based on learning, fairness, respect for individual

enterprise and performance.

Our Service Mission

To develop a committed service culture which

ensures the consistent delivery of our products andservices within the highest quality service

parameters, promoting Islamic values and ensuring

recognition and a quality banking experience to ourcustomers.

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Histoy of Meezan Bank

Meezan 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 an historic initiative, MeezanBank was granted the countrys first full-fledged commercial banking

license as a dedicated Islamic Bank, by the State Bank of Pakistan.

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1- Corporate Banking

2- Business Banking

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Corporate Banking

Meezan Banks Corporate Banking is geared towards providing comprehensiveand innovative financial solutions through a diverse product offering. Aimed atnurturing and developing long-term relationships with our clients we take greatcare in understanding each clients unique financing requirements andaccordingly provide Shariah-compliant financing solutions.At present we cater to a large number of multinational and local clientsrepresenting various sectors of the economy. By providing financial solutions for

the needs of the Small & Medium Enterprises (SMEs) and having recognized thesignificance and diverse business needs of the Commercial Banking sector in thecountry, Meezan Bank is committed towards developing tailored financialsolutions and assisting the growth of the Corporate sectors in Pakistan.Our dedicated Relationship Managers, supported by our Branch staff providehigh quality service at competitive and market-driven pricing to all customers.

Murabaha

One of the most common modes of finance employed by Islamic Banks,Murabaha is based on the exact requirements of each customer. It can bedefined as a sales transaction where Meezan Bank purchases the commodityand sells it after adding an agreed profit. Thus, it is not a loan given on interest -it is sale of a commodity on a deferred price.

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Murabaha involves the purchase of a commodity by Meezan Bank on behalf of acustomer and subsequent sale to the customer on cost-plus-profit basis. Thecost and profit margin to the bank is expressly disclosed to the customer.Simply put, rather than advancing money to the customer, Meezan Bank buys

the commodity from a third party and sells it to the customer at an agreed price,which includes an element of profit.

Tijarah

Meezan Tijarah is a Finished Goods financing facility for Customers to sellFinished Goods on Credit basis. The facility will enable the Customers to selltheir Finished Goods stock, meet their working capital requirements and enjoythe benefits of Cash sales.Under this concept the Bank will purchase the finished goods of the Customersand will appoint the Customer as its agent to sell the same goods in the marketgenerally on Credit basis.It is necessary for the validity of Finished Goods transaction that the price is fixedwith the consent of the parties and that the necessary specification of therequired items is fully settled between them. The Finished Goods price is ideallypaid on Spot with immediate delivery of Goods.

IstisnaaIstisnaa is a sale transaction where an asset is sold before it comes intoexistence. It is an order to manufacture a specific asset for the purchaser. Themanufacturer (our customer) uses its own material to manufacture the requiredgoods. In Istisnaa, price is fixed with the consent of all parties involved. Similarlyall other necessary specifications of the finished product are agreed beforehand.

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Rupee Current Account

Meezan Current Account is a Rupee-based current account that provides you theconvenience of putting your money in a Riba-free account and accessing itwithout any restrictions on withdrawal while enjoying a host of professionalconveniences from Meezan Bank.Meezan Current Account is based onQardcontract where the Bank is liable topay your money back on demand. The Bank can use these funds for investmentand other purposes. This account allows you the peace of mind of having yourmoney safely deposited with a bank with the additional assurance that the Bankis not investing your money in activities that contravene Shariah principles.Meezan Current Account can be opened by Individuals, Sole-Proprietorships,Partnerships and Limited Companies.

Rupee Saving Account

he Riba-free Rupee Saving Account is a basic banking account for everycustomer's need. The account provides expected monthly returns along with avariety of free packaged benefits.

On agreeing to become a Rupee Saving Account holder, the customer entersinto a relationship based onMudarabah with Meezan Bank. Under thisrelationship, the customer is an Investor (Rab-ul-Maal) and the Bank is theManager (Mudarib) of the funds deposited by the customers. The Bank allocatesthe funds received from the customers to a deposit pool; funds from the pool are

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utilized to provide financing to customers under Islamic modes that include, butare not restricted to Murabaha, Ijarah, Istisna and Diminishing Musharkah.Meezan Rupee Saving Account can be opened by Individuals, Sole-Proprietorships, Partnerships and Limited Companies.

Meezan Bachat Account

Meezan Bachat Account is a unique saving account that provides high expectedmonthly returns with the flexibility to withdraw savings if needed. Meezan BachatAccount offers a higher expected rate of return with nearly the same convenienceand service of a regular savings account.Meezan Bachat Account can be opened by Salaried or Self-employed,Housewives and Retired individuals.

On agreeing to become a Meezan Bachat Account holder, the customer entersinto a relationship based onMudarabahwith Meezan Bank. Under thisrelationship, the customer is an Investor (Rab-ul-Maal) and the Bank is theManager (Mudarib) of the funds deposited by the customers. The Bank allocatesthe funds received from the customers to a deposit pool; funds from the pool areutilized to provide financing to customers under Islamic modes that include, butare not restricted to Murabaha, Ijarah, Istisna and Diminishing Musharkah

Labbaik Saving Aasaan

Meezan Labbaik Saving Aasaan is an ideal deposit product for you if you are an

individual saver and wish to save for your spouse, children, parents, etc. You cantake benefit from this special Mudarabahbased Deposit account (available in sixmonths to twenty years plan) forUmrah & Hajj where you will also be entitled forprofit on the deposited amount, thus providing Customers a bigger incentive tosave for Umrah/Hajj through Meezan Labbaik Saving Aasaan.On agreeing to become a Labbaik Saving Aasaan Account holder, you will enterinto the relationship of Mudarabah with the Bank. Under this relationship, you willbe the Investor (or Rab-ul- Maal) and the Bank will be the Manager (or Mudarib)of the funds deposited by you in the Deposit pool. These funds will be utilized bythe Bank to provide financing to customers under Islamic modes of financing,

including but not limited to Murabaha, Ijarah, Istisna and DiminishingMusharakah.Meezan Labbaik Saving Account can be opened by Individuals, Sole-Proprietorships, Partnerships and Limited Companies.

Meezan Business Plus

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Meezan Business Plus is a Mudaraba-based account that allows you to conductyour banking transactions while availing a wide range of free services andtherefore provides you the ideal blend of convenience & flexibility that youdeserve in Islamic banking.

Meezan Business Plus Account can be opened by Individuals and businessesincluding Sole Proprietorships, Partnerships and Limited Companies.On agreeing to become a Meezan Business Plus Account holder, the customerenters into a relationship based on Mudarabah with Meezan Bank. Under thisrelationship, the customer is an Investor (Rab-ul-Maal) and the Bank is theManager (Mudarib) of the funds deposited by the customers. The Bank allocatesthe funds received from the customers to a deposit pool. These funds from thepool are utilized to provide financing to customers under Islamic modes thatinclude, but are not restricted to Murabaha, Ijarah, Istisna and DiminishingMusharkah.

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Foreign Currency Accounts

Dollar Saving Account

The Riba-free Dollar Savings Account is a Mudarabah-based savings accountthat you can open and operate using US Dollars and is therefore an excellentbusiness tool for both individuals and corporate clients for meeting their businessneeds and for diversifying their investment in different foreign currencies tosafeguard against currency fluctuations.The Meezan Dollar Saving Account can be opened by individuals andbusinesses including Sole Proprietorships, Partnerships and Limited Companies.Dollar Savings Account works on the principle of Mudarabah under which thecustomer is an Investor (Rab-ul-Maal), and the Bank is the Manager (Mudarib) ofthe funds deposited by the customer. The Bank allocates the funds received fromthe customers to a Deposit pool; funds in the pool are invested under Islamicmodes of finance that include but are not restricted to Murabaha, Sukuk andIjarah.

Meezan Euro Savings Account

The Riba-free Euro Saving Account is a Mudarabah-based savings account thatyou can open and operate using Euros and is therefore an excellent businesstool for individuals and corporate clients both for meeting their business needsand for diversifying their investment in different foreign currencies to safeguard

against currency fluctuationsOn agreeing to become a Meezan Euro Savings Account holder, the customerenters into a relationship based on Mudarabah with Meezan Bank. Under thisrelationship, the customer is an Investor (Rab-ul-Maal) and the Bank is theManager (Mudarib) of the funds deposited by the customers. The Bank allocatesthe funds received from the customers to a deposit pool. These funds from thepool are utilized to provide financing to customers under Islamic modes thatinclude, but are not restricted to Murabaha, Ijarah, Istisna and DiminishingMusharkah.Meezan Euro Saving Account can be opened by Individuals, Sole-Proprietorships, Partnerships and Limited Companies.

Meezan Pound Savings Account

The Riba-free Pound Saving Account is a Mudarabah-based savings accountthat you can open and operate using UK Pounds and is therefore an excellentbusiness tool for individuals and corporate clients both for meeting their business

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needs and for diversifying their investment in different foreign currencies tosafeguard against currency fluctuationsMeezan Pound Saving Account can be opened by Individuals, Sole-Proprietorships, Partnerships and Limited Companies.

On agreeing to become a Meezan Pound Saving account holder, the customerenters into a relationship based on Mudarabah with Meezan Bank. Under thisrelationship, the customer is an Investor (Rab-ul-Maal) and the Bank is theManager (Mudarib) of the funds deposited by the customers. The Bank allocatesthe funds received from the customers to a deposit pool. These funds from thepool are utilized to provide financing to customers under Islamic modes thatinclude, but are not restricted to Murabaha, Ijarah, Istisna and DiminishingMusharkah.

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Certificate of Islamic Investment

The Certificate of Islamic Investment (COII) is a Mudarabah-based depositproduct through which you can invest your savings for periods ranging from 3months to 5 years and earn Halal profit on a periodic basis.The Certificates of Islamic Investment is an ideal investment for Individuals, SoleProprietorships, Partnerships and Limited Companies

Meezan Amdan Certificate

Meezan Amdan Certificate is a Mudarabah-based long-term deposit product thatoffers a high expected return to investors and is ideal for those individuals and

corporate clients who need a regular stream of monthly income.Meezan Amdan Certificates work on the principle of Mudarabah under which thecustomer is an Investor (Rab-ul-Maal), and the Bank is the Manager (Mudarib) ofthe funds deposited by the customer. The Bank allocates the funds received fromthe customers to a Deposit pool; funds from the pool are utilized to providefinancing to customers under Islamic modes that include, but are not restricted toMurabaha, Ijarah, Istisna and Diminishing Musharakah.

The Meezan Amdan Certificate is available for Individuals and businesses

including Sole Proprietorships, Partnerships and Limited Companies.

Monthly Mudarabah Certificate

The Riba-Free Monthly Mudarabah Certificate (MMC) is a short-term depositproduct which has been designed to give you expected monthly returns.Monthly Mudarabah Certificates work on the principle of Mudarabah under whichthe customer is an Investor (Rab-ul-Maal), and the Bank is the Manager(Mudarib) of the funds deposited by the customer. The Bank allocates the fundsreceived from the customers to a Deposit pool; funds from the pool are utilized to

provide financing to customers under Islamic modes that include, but are notrestricted to Murabaha, Ijarah, Istisna and Diminishing Musharakah.The Monthly Mudarabah Certificate is available for Individuals and businessesincluding Sole Proprietorships, Partnerships and Limited Companies

Dollar Mudarabah Certificate

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The DollarMudarabah Certificate (DMC) is a deposit product through which youcan invest your US Dollars with Meezan Bank for periods ranging from 3 monthsto 3 years and earn six-monthly or at maturity profit payments on yourinvestment.

Dollar Mudarabah Certificates (DMC) work on the principle of Mudarabah underwhich the customer is an Investor (Rab-ul-Maal), and the Bank is the Manager(Mudarib) of the funds deposited by the customer. The Bank allocates the fundsreceived from the customers to a Deposit pool; funds from the pool are utilized toprovide financing to customers under Islamic modes that include, but are notrestricted to Murabaha, Ijarah, Istisna and Diminishing Musharakah.The Dollar Mudarabah Certificate is an ideal investment for Individuals, SoleProprietorships, Partnerships and Limited Companies.

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Online Banking

Our free On-line Banking facility allows all customers to access their accountand conduct banking transactions from any of Meezan bank's branchesnationwide. Our on-line facility makes it easy to deposit and withdraw cash, makepay-order requests and access numerous banking services from any MeezanBank branch even if the account is based in a different city.Our free On-line Banking, offers the following services:Real-time cash deposit, instantly crediting your account!Real-time cash withdrawal upto Rs. 5 million, giving you access to your money

from anywhere in the Country!Transfer of funds between your Meezan Bank accountsDeposit and collection of clearing Cheques drawn within the same cityIssuance of Pay-order from any Meezan Bank branch

8 to 8 Banking

Meezan Bank is proud to be the first bank in Pakistan to introduce the concept ofEight-to-Eight banking, giving our customers access to the branch from 8 'o clockin the morning to 8 'o clock at night.

This adds a completely new dimension to our banking service and has beendesigned to enable our customers to avail banking services at their convenience.Customers may visit their respective branch early in the morning before going towork or can drop by in the evening on their way home without having to worryabout losing valuable office hours.

From 8am till 5pm we offer the full range of our banking services while from 5pmtill 8pm our customers are able to avail several commonly-used banking facilitiesat the branch (value next day) which meet most of their daily bankingrequirements.

Our 8 to 8 banking service is a part of Meezan Banks mission to focus oncustomer convenience & service quality and is thereby an important step towardsmaking Islamic Banking the banking of First Choice.

Ladies Banking

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Meezan Bank is the first bank in the country to introduce 'Ladies Banking', adedicated banking section only for ladies. This new service provides an exclusivebanking area as per the set Shariah principles for our female customers in acomfortable environment.

Special Baking Services: Dedicated Customer Services Officer in our ladies onlybanking area who provide consultancy for all Halal banking needs.Consumer Financing: CarIjarah and Easy HomeRetail Banking: Current & Savings Accounts, Foreign Currency Accounts, TermDeposits24/7 Banking Services: ATM/Debit Card, Call Center, Internet BankingOur ladies banking service is a part of Meezan Banks mission to focus oncustomer convenience and service quality and make Islamic Banking the bankingof First Choice.

This service is presently being offered at our Barkat-e-Hyderi branch in Karachi.

Meezan Home Remittance

Meezan Bank's Remittance services are simple and reliable. They are availableat your doorstep through a wide and efficient network of corresponding banksworldwide. Only the leading global financial institutions form this network ofcorrespondent banks.Quick Remittance in major currencies i.e USD, GBP, EUR, JPY, CHF, SGD,AUD

Instant online transfer within ourbranch network without any chargesExtensive branch network in all major cities of PakistanMeezan Visa Debit Card allows you to use your own money at more than 30million outlets and 160 countries worldwideFree Internet bankingfacility

Labbaik Travel Aasaan

Meezan Labbaik Saving Aasaan is an ideal deposit product for you if you are anindividual saver and wish to save for your spouse, children, parents, etc. You cantake benefit from this special Mudarabahbased Deposit account (available in six

months to twenty years plan) forUmrah & Hajj where you will also be entitled forprofit on the deposited amount, thus providing Customers a bigger incentive tosave for Umrah/Hajj through Meezan Labbaik Saving Aasaan.On agreeing to become a Labbaik Saving Aasaan Account holder, you will enterinto the relationship of Mudarabah with the Bank. Under this relationship, you willbe the Investor (or Rab-ul- Maal) and the Bank will be the Manager (or Mudarib)of the funds deposited by you in the Deposit pool. These funds will be utilized by

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the Bank to provide financing to customers under Islamic modes of financing,including but not limited to Murabaha, Ijarah, Istisna and DiminishingMusharakah.Meezan Labbaik Saving Account can be opened by Individuals, Sole-

Proprietorships, Partnerships and Limited Companies.

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Internet Banking

Meezan Internet Banking is the smarter way to bank, providing you global accessto your account 24 hours a day, 7 days a week.FacilitiesWith Meezan Internet Banking, you can get secure and convenient access to thefollowing facilities:

Balance inquiry of multiple accountsView account statementReal time cheque status and stop payment requestCheque book and pay-order requestLodging and tracking status of complaintsAccount activity alerts

ATM Network

Meezan Bank offers a wide network of ATMs located at its branches as well as

prominent offsite locations. You do not need to carry cash anymore; simply go tothe ATM and withdraw cash anywhere, anytime. We also offer access to morethan 2,000 ATM locations country-wide via 1Link and MNET Network.

SMS Alerts

Meezan SMS Alerts service makes your life easier and more convenient thanever before. Now you do not need to call or visit the branch to inquire about yourdaily transactions.Once you sign up for the Meezan SMS Alert service, you will receive an instant

SMS alert from Meezan Bank on your mobile phone whenever any of thefollowing transactions occur on your Current or Savings account(s).

24/7 Call Center

With our Call Centre facility, you no longer have to take time out to visit yourbranch for your everyday banking needs. By simply dialing 111-331-331 (dial 00-92-21-111-331-331 from outside Pakistan) you get access to a wide range of

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Tele-banking solutions and personalized banking services including answers toquestions on Islamic Banking. You can also access our self-service banking,where you will be guided and assisted in all transactions by our Interactive VoiceResponse System (IVR).

Services Provided on IVRCheck your account balancesInstruct issuance of pay orders and demand draftsTransfer funds between your own accountsOrder issuance of chequebookCheck transaction history of your accountsReceive information on various MBL products and servicesIssue stop payment instructionsReport loss of your chequebookRegister your comments and suggestions regarding MBL products and services

Request or change T-PINATM PIN ReissuanceReport loss of Visa Debit Card or cheque(s)Request for new Internet Banking Username / Password.ATM HelplineYou may instantly contact our Call Center officers for any inquiry by just pickingup the phone located beside the ATM.

Meezan Visa Debit Card

Want access to your money anytime, anywhere? With a Meezan Visa DebitCard, you have access to the money in your account wherever you are,whenever you want, wherever you see the Visa symbol. The money is deductedfrom your balance straight away there is no interest to pay, no bills & no latefees!Using your card is quicker than making a trip to the bank!Using your card is quicker and far more convenient than queuing at a cashdispenser and safer than carrying cash.

Use your own money at more than 30 million outlets and 160 countriesworldwide.Use it to buy both big and small items, wherever you see the Visa symbol.Each withdrawal taken directly from your Meezan Bank Linked Account.A safe and convenient alternative to carrying cash.You can call support 24 hours a day, 7 days a week with any queries. Simply call111-331-331

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All shopping transactions on your card are signature based. Simply swipe andsign!

Next time youre planning to go abroad, you can use your Meezan Visa debit

card for all your purchases and to withdraw cash at ATMs, just as you do athome wherever you see the Visa symbol.Convenient - No need to buy foreign currency or travellers cheques in advance.Safe - No need to take large amounts of cash with you.Accepted all over the world - Pay for hotels, sightseeing, shopping and diningout.

Car Ijarah

As a step towards Meezan Banks mission to provide a one-stop shop forinnovative value-added Shariah compliant products, Meezan BanksCarIjarah unit provides car financing based on the principles of Ijarah and is free

of the element of interest.Car Ijarah is Pakistans first Interest Free car financing based on the Islamicfinancing mode of Ijarah (Islamic leasing). This product is ideal for individualslooking for car financing while avoiding an interest-based transaction.Meezan Bank Car Ijarah is a car rental agreement, under which the Bankpurchases the car and rents it out to the customer for a period of 3 to 5 years,

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agreed at the time of the contract. Upon completion of the lease period thecustomer gets ownership of the car against his initial security deposit.

Special Offer - Residual Value Ijarah with Indus Motors

Meezan Bank Car Ijarah Introduces Residual Value Financing enabling customerto afford luxury with economy, where the customer can enjoy the benefits ofeased rental. Details

Car Ijarah also features Used Vehicles!In addition to leasing of new cars, Meezan Bank also provides the uniqueopportunity of leasing second hand, both locally assembled and importedvehicles. This feature is specifically designed as a highly economical option. TheUsed Car Ijarah facility is made available at a minimum-security deposit as lowas 20%. Financing of used cars are subject to a selection criteria.

Key Features of Car IjarahLow monthly rentalRental paid after delivery, not in advanceFastest processing and deliveryTracker option availableMinimum security deposit as low as 10%*All new, used, local, imported and luxury vehicles can be financed

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Easy Home is a Shariah-compliant Home Finance facility! One that is comprehensive,affordable, and totally hassle-free. Meezan Bank is committed to meet our customersneeds in a truly Shariah-compliant manner coupled with dedicated service excellence. Whynot have the best of both worlds? Isn't that what you are working so hard for anyway?

Easy Home not only allows you to own your own home by paying easy instalments but alsokeeps you safely away from interest based financing.

Easy Home works on a Diminishing Musharakah basisWith Easy Home you participate with Meezan Bank in joint ownership of your property,where the Bank will provide a certain amount of financing. You agree to a monthly paymentto the bank of which one component is for use of the home, and another for your equityshare. In fact, the total monthly payment is reduced regularly as your share in the property

grows. When you have made the full investment, which had been agreed upon, youbecome the sole owner with a free and clear title to the property.Special Limited time Offer for Salaried employees of Selected Companies* & CharteredAccountantsOwning a home you always wanted is no longer a distant dream.Meezan Bank now offers very preferential profit rate for salaried individuals working inselected companies approved by the bank. These special rates are also applicable forsalaried Chartered Accountants.65tytb4rex

Creek Vista is a mega residential project of DHA comprising of high rise complexesequipped with all modern day facilities. Meezan Bank proudly announces to be the firstIslamic Bank to extend Home Financing for purchase of apartments in Creek Vista.*For details, please call our 24/7 call center or visit ourHousing Hub nearest to you.

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2 Business Banking

Meezan Banks Business Banking is geared towards providing comprehensiveand innovative financial solutions through a diverse product offering. Aimed atnurturing and developing long-term relationships with our clients we take greatcare in understanding each clients unique requirement and accordingly provideShariah-compliant solutions.At present we cater to a large number of multinational and local clientsrepresenting various sectors of the economy.

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Meezan Business Plus

Meezan Business Plus is a Mudaraba-based account that allows you to conductyour banking transactions while availing a wide range of free services andtherefore provides you the ideal blend of convenience & flexibility that youdeserve in Islamic banking.Meezan Business Plus Account can be opened by Individuals and businessesincluding Sole Proprietorships, Partnerships and Limited Companies.On agreeing to become a Meezan Business Plus Account holder, the customerenters into a relationship based on Mudarabah with Meezan Bank. Under thisrelationship, the customer is an Investor (Rab-ul-Maal) and the Bank is the

Manager (Mudarib) of the funds deposited by the customers. The Bank allocatesthe funds received from the customers to a deposit pool. These funds from thepool are utilized to provide financing to customers under Islamic modes thatinclude, but are not restricted to Murabaha, Ijarah, Istisna and DiminishingMusharkah.

Karobari Munafa Account

Karobari Munafa is a high profit savings account specifically tailored for largeCorporate or GoP-controlled entities. It allows customers to earn higher returnson surplus cash balances, has no preset transaction limits and comes with a

variety of free packaged benefits.Karobari Munafa Account can be opened by Individuals, Sole-Proprietorships,Partnerships and Limited Companies.The Karobari Munafa Account works on the principle ofMudarabah under whichthe customer is an Investor (Rab-ul-Maal), and the Bank is the Manager(Mudarib) of the funds deposited by the customer. The Bank allocates the funds

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received from the customers to a Deposit pool. Funds in the pool are investedunder Islamic modes of finance that include but are not restricted to Murabaha,Sukuk and Ijarah.

MIIDA

The Meezan Islamic Institution Deposit Account (MIIDA) is a unique product,tailored exclusively for Islamic Financial Institutions (IFIs). With MIIDA, any IFInow has the opportunity to manage excess liquidity in an immediate andprofitable manner by maintaining a checking account with Meezan Bank.Meezan Islamic Institution Deposit Account (MIIDA) can be opened byIndividuals, Sole-Proprietorships, Partnerships and Limited Companies.MIIDA works on the principle ofMudarabahunder which the customer is anInvestor (Rab-ul-Maal), and the Bank is the Manager (Mudarib) of the funds

deposited by the customer. The Bank allocates the funds received from thecustomers to a Deposit pool. Funds in the pool are invested under Islamic modesof finance that include but are not restricted to Murabaha, Sukuk and Ijarah.

Rupee Current Account

Meezan Current Account is a Rupee-based current account that provides you theconvenience of putting your money in a Riba-free account and accessing itwithout any restrictions on withdrawal while enjoying a host of professionalconveniences from Meezan Bank.

Meezan Current Account is based on Qard contract where the Bank is liable topay your money back on demand. The Bank can use these funds for investmentand other purposes. This account allows you the peace of mind of having yourmoney safely deposited with a bank with the additional assurance that the Bankis not investing your money in activities that contravene Shariah principles.Meezan Current Account can be opened by Individuals, Sole-Proprietorships,Partnerships and Limited Companies.

Rupee Saving Account

The Riba-free Rupee Saving Account is a basic banking account for every customer's needThe account provides expected monthly returns along with a variety of free packagedbenefits.

On agreeing to become a Rupee Saving Account holder, the customer enters into arelationship based onMudarabah with Meezan Bank. Under this relationship, the customeris an Investor (Rab-ul-Maal) and the Bank is the Manager (Mudarib) of the funds deposited

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by the customers. The Bank allocates the funds received from the customers to a depositpool; funds from the pool are utilized to provide financing to customers under Islamic modesthat include, but are not restricted to Murabaha, Ijarah, Istisna and Diminishing Musharkah.Meezan Rupee Saving Account can be opened by Individuals, Sole-Proprietorships,

Partnerships and Limited Companies.

Meezan Bachat Account

Meezan Bachat Account is a unique saving account that provides high expectedmonthly returns with the flexibility to withdraw savings if needed. Meezan BachatAccount offers a higher expected rate of return with nearly the same convenienceand service of a regular savings account.Meezan Bachat Account can be opened by Salaried or Self-employed,

Housewives and Retired individuals.On agreeing to become a Meezan Bachat Account holder, the customer entersinto a relationship based onMudarabah with Meezan Bank. Under thisrelationship, the customer is an Investor (Rab-ul-Maal) and the Bank is theManager (Mudarib) of the funds deposited by the customers. The Bank allocatesthe funds received from the customers to a deposit pool; funds from the pool areutilized to provide financing to customers under Islamic modes that include, butare not restricted to Murabaha, Ijarah, Istisna and Diminishing Musharkah.

Labbaik Saving Aasaan

Meezan Labbaik Saving Aasaan is an ideal deposit product for you if you are anindividual saver and wish to save for your spouse, children, parents, etc. You cantake benefit from this special Mudarabahbased Deposit account (available in sixmonths to twenty years plan) forUmrah & Hajj where you will also be entitled forprofit on the deposited amount, thus providing Customers a bigger incentive tosave for Umrah/Hajj through Meezan Labbaik Saving Aasaan.On agreeing to become a Labbaik Saving Aasaan Account holder, you will enterinto the relationship of Mudarabah with the Bank. Under this relationship, you willbe the Investor (or Rab-ul- Maal) and the Bank will be the Manager (or Mudarib)

of the funds deposited by you in the Deposit pool. These funds will be utilized bythe Bank to provide financing to customers under Islamic modes of financing,including but not limited to Murabaha, Ijarah, Istisna and DiminishingMusharakah.Meezan Labbaik Saving Account can be opened by Individuals, Sole-Proprietorships, Partnerships and Limited Companies.

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Dollar Saving Account

The Riba-free Dollar Savings Account is a Mudarabah-based savings accountthat you can open and operate using US Dollars and is therefore an excellentbusiness tool for both individuals and corporate clients for meeting their business

needs and for diversifying their investment in different foreign currencies tosafeguard against currency fluctuations.The Meezan Dollar Saving Account can be opened by individuals andbusinesses including Sole Proprietorships, Partnerships and Limited Companies.Dollar Savings Account works on the principle of Mudarabah under which thecustomer is an Investor (Rab-ul-Maal), and the Bank is the Manager (Mudarib) ofthe funds deposited by the customer. The Bank allocates the funds received fromthe customers to a Deposit pool; funds in the pool are invested under Islamicmodes of finance that include but are not restricted to Murabaha, Sukuk and

Ijarah.Open a Dollar Savings Account!Visit any of Meezan Banks branches, fill-in the Application Form and complete afew simple formalities required for opening your Riba-Free Dollar SavingsAccount; this is all you need to do to enjoy our personalized banking services.

Meezan Euro Savings Account

The Riba-free Euro Saving Account is a Mudarabah-based savings account that

you can open and operate using Euros and is therefore an excellent businesstool for individuals and corporate clients both for meeting their business needsand for diversifying their investment in different foreign currencies to safeguardagainst currency fluctuationsOn agreeing to become a Meezan Euro Savings Account holder, the customerenters into a relationship based on Mudarabah with Meezan Bank. Under thisrelationship, the customer is an Investor (Rab-ul-Maal) and the Bank is theManager (Mudarib) of the funds deposited by the customers. The Bank allocatesthe funds received from the customers to a deposit pool. These funds from thepool are utilized to provide financing to customers under Islamic modes that

include, but are not restricted to Murabaha, Ijarah, Istisna and DiminishingMusharkah.Meezan Euro Saving Account can be opened by Individuals, Sole-Proprietorships, Partnerships and Limited Companies.

Meezan Pound Savings Account

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The Riba-free Pound Saving Account is a Mudarabah-based savings accountthat you can open and operate using UK Pounds and is therefore an excellentbusiness tool for individuals and corporate clients both for meeting their businessneeds and for diversifying their investment in different foreign currencies tosafeguard against currency fluctuations

Meezan Pound Saving Account can be opened by Individuals, Sole-Proprietorships, Partnerships and Limited Companies.On agreeing to become a Meezan Pound Saving account holder, the customerenters into a relationship based on Mudarabah with Meezan Bank. Under thisrelationship, the customer is an Investor (Rab-ul-Maal) and the Bank is theManager (Mudarib) of the funds deposited by the customers. The Bank allocatesthe funds received from the customers to a deposit pool. These funds from thepool are utilized to provide financing to customers under Islamic modes thatinclude, but are not restricted to Murabaha, Ijarah, Istisna and Diminishing

Musharkah.

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Realizing the increasingly diverse needs of our customers for advisory andstructured finance transactions, a specialized department focusing on InvestmentBanking services has been established at Meezan Bank. The department isgeared towards providing comprehensive and innovative financial solutionsthrough a diverse product offering, providing a broad array of financing solutionsto the banks clients. The focus is on nurturing and developing long-termrelationships with clients by understanding their unique financing requirementsand providing Shariah-compliant financing solutions.

In a short span of time, the Investment Banking department has been able todevelop core expertise in arranging syndicated, structured and Project financeand providing advice on mergers and acquisitions, buy-side / sell-side advisory,financial restructuring, structured equity and venture capital investments.

Al Meezan Investment Management Limited (Al Meezan), the asset management and

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investment advisory arm of Meezan Bank, specializes exclusively in the development andmanagement of Shariah compliant investment products. Al Meezan has one of the longestand the most successful track record of managing mutual funds in the private sector,spanning over fifteen years.

Al Meezan is presently managing the following funds:Open End FundsMeezan Islamic Fund (MIF) - open end equity fundMeezan Islamic Income Fund (MIIF) - open end income fundMeezan Cash Fund (MCF) - open end money market fundMeezan Sovereign Fund (MSF) - open end government securities fundMeezan Capital Protected Fund-I (MCPF-I) open end capital protected fundPension FundsMeezan Tahaffuz Pension Fund (MTPF)- Voluntary Pension Scheme

Closed End FundsAl Meezan Mutual Fund Limited (AMMF)- closed end equity fundMeezan Balanced Fund (MBF)- closed end balanced scheme

The total size of the funds under management as at June 30, 2010 was over PKR 18 billionas compared to PKR 13 billion at the corresponding date last year. The increasing size ofassets under management manifests the ability of the professional fund management teamto consistently out-perform its peers and consequently build the investor confidence. Thefund wise performance details as at June 30, 2010 is as under:

Fund

Net AssetsPKR(Millions) Rating

ReturnFY - 10

Meezan Cash Fund 5,224 AA(f) 10.10%

Meezan Islamic Fund 3,966 MFR 5-Star 31.00%

Meezan Islamic Income Fund 3,394 A+(f) 7.31%

Meezan Sovereign Fund 971 AA+(f) 9.69%

Meezan Capital Protected Fund-I 637 - 14%

Al Meezan Mutual Fund 1,404 - 31.23%Meezan Balanced Fund 1,278 - 22.35%

Meezan Tahaffuz Pension Fund 277 - 32.00%

Al Meezan is ranked among the best performing asset management companies inPakistan. It has achieved Management Quality Rating AM2, assigned by JCR-VIS. AM2 iscurrently the Highest Management Quality Rating to any Asset Management Company in

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the mutual funds industry. This rating denotes high management quality with a stableoutlook. For the year 2009, Eurekahedge - world's largest independent data provider andresearch house has ranked Meezan Islamic Fund (MIF)- Pakistans largest equity fund inthe private sector and Al Meezan Mutual Fund (AMMF) among the Top 10 Islamic Funds byreturns for the year 2009. MIF was ranked 4th for the year 2009 while AMMF was ranked

6th among the Top 10 performing funds. The statistics have been calculated byEurekahedge using funds return since inception.

The Shariah Advisor of Meezan Bank Limited, also being the Shariah Advisor of Al Meezansupervises the operations in order to ensure Shariah compliance of the funds. In addition tothe quality service, Shariah compliance and impressive performance in terms of returns toinvestors, Al Meezan also complies with the global best practices in asset management andhas voluntarily adopted Asset Manager Code of Professional Conduct from CFA Institute,USA. Hence it has the distinction of being the first asset management company in Pakistanto comply with the best global practices in asset management.

Units of all open end funds are available at the offices of Al Meezan and all branches ofMeezan Bank across Pakistan. For the convenience of investors, Al Meezan has placeddedicated investment officers at the selected branches of MBL. These officers provideguidance and assist the investors in meeting their investment objectives.

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Meezan Banks treasury is guided by Shariah with the objective of reviewing,streamlining, and controlling the banks domestic and international Treasury-frelated operations. Treasury caters to the branches and customers for theirentire foreign exchange requirement with efficiency and professionalism. Ready/spot as well as all forward cover services are provided to branches/customers

within Shariah guidelines. Customers are also provided advice on a regular basisabout the currency movement by the dealing room augmented by market outlook(without any commitment & obligation)Treasury has enhanced its market activity with increased depth and enhancedvolumes, making an impact in the inter-bank FX market. Due to its goodrelationship with other treasuries, the institution has the ability to generatesufficient amount of liquidity at any time through the inter-bank market onShariah-approved Musharaka basis.Meezan Bank conducts Commodity Murabahatransaction to optimize its returns

on its Dollar portfolio, besides participating in local/ international Sukuk issues,e.g. WAPDA, Qatar, Dubai Sukuks, etc. This treasury is the only treasury inPakistan with a mandate to provide Shariah-compliant investment opportunitiesin capital market that provides Halal income to the shareholders

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Realizing the increasingly diverse needs of our customers for advisory andstructured finance transactions, a specialized department focusing on InvestmentBanking services has been established at Meezan Bank. The department isgeared towards providing comprehensive and innovative financial solutions

through a diverse product offering, providing a broad array of financing solutionsto the banks clients. The focus is on nurturing and developing long-termrelationships with clients by understanding their unique financing requirementsand providing Shariah-compliant financing solutions.In a short span of time, the Investment Banking department has been able todevelop core expertise in arranging syndicated, structured and Project financeand providing advice on mergers and acquisitions, buy-side / sell-side advisory,financial restructuring, structured equity and venture capital investments.

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Financial Institutions, a part of the Treasury and F.I. Group, primarily focuses onbuilding and maintaining relationships within the Financial sector. Relationsrange from authenticated communication links by way of SWIFT RMA to Trade,Treasury and account maintenance in different currencies worldwide. With

over 258 banks in 80 countries, our 600 globally located correspondents provideall trade services, seeking to add value and service to our branches andfunctional units. Services include advising, confirmation, discounting of letter ofcredits, reimbursement undertakings and standby LCs and guarantees. Further,the ever-increasing SWIFT RMA relationships with financial institutions serve toroute all kinds of transactions.

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Meezan Bank has extensive experience and expertise in developing andadvising on the creation of Shariah-compliant financial products and services.The main objective of Meezan Banks Islamic Financial Advisory function is to

assist Financial Institutions develop Islamic banking alternatives by sharing ourexpertise, research and success stories. This function works under the guidanceof Shariah Supervisory Board which comprises of renowned Islamic Scholarsfrom both Pakistan and abroad.

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Meezan Providence Certificate

Meezan Providence Certificate is a long-term investment certificate speciallydesigned to cater to the needs of corporate and business concerns for purposesof investing their Provident, Pension and Gratuity Funds.

Meezan Providence Certificate is an ideal investment for Individuals, Sole-Proprietorships, Partnerships and Limited Companies.

Meezan Providence Certificate works on the principle ofMudarabah under whichthe customer is an Investor (Rab-ul-Maal), and the Bank is the Manager(Mudarib) of the funds deposited by the customer. The Bank allocates the fundsreceived from the customers to a Deposit pool. Funds in the pool are investedunder Islamic modes of finance that include but are not restricted to Murabaha,Sukuk and Ijarah.

Certificate of Islamic Investment

The Certificate of Islamic Investment (COII) is a Mudarabah-based deposit product through

which you can invest your savings for periods ranging from 3 months to 5 years andearn Halal profit on a periodic basis.The Certificates of Islamic Investment is an ideal investment for Individuals, SoleProprietorships, Partnerships and Limited CompaniesInvest in Certificate of Islamic Investment!Visit any of Meezan Banks branches, fill-in the Application Form and complete a few simpleformalities required for investing in Meezan Certificate of Islamic Investment. This is all youneed to do to enjoy our personalized banking services.

Meezan Amdan Certificate

Meezan Amdan Certificate is a Mudarabah-based long-term deposit product thatoffers a high expected return to investors and is ideal for those individuals andcorporate clients who need a regular stream of monthly income.

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Meezan Amdan Certificates work on the principle of Mudarabah under which thecustomer is an Investor (Rab-ul-Maal), and the Bank is the Manager (Mudarib) ofthe funds deposited by the customer. The Bank allocates the funds received fromthe customers to a Deposit pool; funds from the pool are utilized to providefinancing to customers under Islamic modes that include, but are not restricted to

Murabaha, Ijarah, Istisna and Diminishing Musharakah.

The Meezan Amdan Certificate is available for Individuals and businessesincluding Sole Proprietorships, Partnerships and Limited Companies.

Invest in Meezan Amdan Certificate!Visit any of Meezan Banks branches, fill-in the Application Form and complete afew simple formalities required for investing in Meezan Amdan Certificates. This

is all you need to do to enjoy our personalized banking services.

Monthly Mudarabah Certificate

The Riba-Free Monthly Mudarabah Certificate (MMC) is a short-term depositproduct which has been designed to give you expected monthly returns.Monthly Mudarabah Certificates work on the principle of Mudarabah under whichthe customer is an Investor (Rab-ul-Maal), and the Bank is the Manager(Mudarib) of the funds deposited by the customer. The Bank allocates the fundsreceived from the customers to a Deposit pool; funds from the pool are utilized to

provide financing to customers under Islamic modes that include, but are notrestricted to Murabaha, Ijarah, Istisna and Diminishing Musharakah.The Monthly Mudarabah Certificate is available for Individuals and businessesincluding Sole Proprietorships, Partnerships and Limited Companies.

Invest in Monthly Mudarabah Certificate!Visit any of Meezan Banks b

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