Final Internship Report - For Subbmission

Prepared By:
Hassan Rafiq
Branch:
Nawan Shaher, Multan
LMQ Road Multan

Phone No 03017449933
Internship Report of Meezan Bank Page 1 of 66

PRAISE TO ALLAH
LORDS OF THE LORDS, THECOMPENSATE,
THE MERCIFUL.
MASTER OF THE DAY OF THE JUDGMENT!
YOU ALONE WE WORSHIP.
AND TO YOU ALONE WE WORSHIP.
AND TO YOU ALONE WE LOOK FOR HELP
THOUSANDS OF SALAM TO HOLY PROPHET
HAZRAT MUHAMMAD
(SALALLAH-O-ALEHY WASSALAM)

PREFACE
Business 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.
Internship is an integral part of the study of

BBA Marketing . 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 course and
report.

ACKNOWLEDGMET
Praise to Allah, who bestowed upon us the

potential and ability to accomplish the task of the
work. Salaam to the Holy Prophet Hazrat
Muhammad (S.A.A.W).
I wish to express deep sense of gratitude to

Mr. Behzad Karim Khan, Branch Manager and
his all team Nawan Shaher, 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.
TABLE OF CONTENTS

Page #
RIBA ITS PROHIBITION & CLASSIFICATION 6
INTRODUCTION TO ISLMAIC BANKING 8
Islamic Banking in Pakistan. 9
MAIN OBJECTIVE OF SELECTING MEEZAN BANK
First and largest Islamic Bank in Pakistan. 11
OVERVIEW OF THE MEEZAN BANK LIMITED
History of Meezan Bank 12
Financial Performance & Business Volumes of Meezan Bank 15
Main Product line 21
Profile of Employees at MBL 30
MANAGEMENT HIERARCHY 31
STRUCTURE OF MARKETING DEPARTMENT
Introduction of Meezan Banks Marketing Unit 32
Management of Marketing Department 33
Role of Marketing Department in Meezan Bank 34
Customer Demand 36
FUNCTION OF MARKETING DEPARTMENT 37
Marketing Mix 38
Planning & Development of Islamic Banking Products 39
Product Pricing of Islamic Banking Products 47
Distribution Strategy of Islamic Banking Products 50
Promotional Strategy of MBL 56
CRITICAL ANALYSIS
Failure of different products 61
Major Competitors of Meezan BanK 62
Future Endeavors for Meezan Bank 63
SHORT FALL / WEAKNESS OF MARKETING DEPARTMENT 64
CONCLUSION & RECOMMENDATION 66
REFERNENCE & SOURCE USED 69
ANNESES 70
RIBA ITS PROHIBITION & CLASSIFICATION

RIBA, ITS PROHIBITION & CLASSIFICATIONS
RIBA IN THE QUR'AN
1. First Revelation (Surah al-Rum, verse 39)
"That which you give as interest to increase the peoples' wealth increases not with God; but that
which you give in charity, seeking the goodwill of God, multiplies manifold." (30: 39)
2. Second Revelation (Surah al-Nisa', verse 161)
"And for their taking interest even though it was forbidden for them, and their wrongful
appropriation of other peoples' property. We have prepared for those among them who reject faith
a grievous punishment (4: 161)"
3. Third Revelation (Surah Al 'Imran, verses 130-2)
"O believers, take not doubled and redoubled interest, and fear God so that you may prosper. Fear
the fire which has been prepared for those who reject faith, and obey God and the Prophet so that
you may receive mercy."
RIBA IN HADITH
From Jabir : The Prophet, , may cursed the receiver and the payer of interest, the one who
records it and the two witnesses to the transaction and said: "They are all alike [in guilt]." (Muslim,
Kitab al-Musaqat, Bab la'ni akili al-riba wa mu'kilihi; also in Tirmidhi and Musnad Ahmad).
From 'Abdallah ibn Hanzalah : The Prophet, , said: "A dirham of riba which a man receives
knowingly is worse than committing adultery thirty-six times" (Mishkat al-Masabih, Kitab al-Buyu',
Bab al-riba, on the authority of Ahmad and Daraqutni). Bayhaqi has also reported the above hadith
in Shu'ab al-iman with the addition that "Hell befits him whose flesh has been nourished by the
unlawful."

From Abu Hurayrah : The Prophet, , said: "Riba has seventy segments, the least serious being
equivalent to a man committing adultery with his own mother." (Ibn Majah).

INTODUCTION TO ISLAMIC BANKING
Islamic banking is system of conducting trade and banking activities in line with the principles of
Islamic Shariah while avoiding all the prohibited activities such as interest or riba, Gharar, financing
of haram trades & businesses etc.
It is not banking which is based on pricing money and earning interest as conventional interest
based bank do but it is a system of trade where goods and services are sold and capital is invested
by taking risk to earn halal profits. It is also not just change of name as many mis-understood but it
is based on the Quranic injunction of
God has permitted trade and forbidden interest.
(Surah al-Baqarah, Verses 275)
Interest free banking is a subset of Islamic banking concept denoting a number of banking
instruments or operations, which avoid interest. However, Islamic banking is a more general term
that aims not only to avoid interest-based transactions, as it prohibited in the Islamic Shariah, but
also to avoid all unethical & immoral practices and participate actively in achieving the goals and
objectives of an Islamic economy.
WHAT DISTINGUISHED ISLAMIC BANKING WITH CONVENTIONAL BANKING
The following are the main points the distinguished Islamic banking with conventional banking.
Transactions are asset-based
It is socially-responsible banking because it operates under Shariah restrictions
Does not permit financing of prohibited goods / Industries

It starves evil out of the societyEthics and moral values play a major role in investment
decisions. Not a choice but a must.
Distinguishing Features
Conventional Banking Islamic Banking
- Conventional banking prices money. - Islamic banking prices goods and services
which creates real wealth in the society leading
to economic well-being.
- Is based on fixed return on both Sides of - Is based on profit sharing on deposits side,
the balance sheet. and on profit on assets side.
- Does not involve itself in trade and - Actively participates in trade and production.
business
- Depositors get a fixed rate regardless of - Profit is shared with the depositor, higher the
the banks profitability, thus insulating them banks profit, higher the depositors income.
from the banks true performance.
ISLAMIC BANKING IN PAKISTAN
In Pakistan, Islamic banking emerged as a response to both religious and economic needs. Efforts
for economy-wide elimination of Riba started during 1970s and most of the significant and practical
steps were taken in 1980s. The mid-80s attempt was a significant step in the evolution of Islamic
banking system in the country. In a technical sense it was the most advanced model compared to
any other model being practiced anywhere in the world at that time. However, that system fell apart
as it did not adequately address issues such as putting in place an effective Shariah compliance

mechanism, giving emphasis to capacity building, and opting for a flexible and evolutionary
approach. The initiative to reintroduce Islamic banking in Pakistan was launched back in 2001
when the government decided to promote Islamic banking in a gradual manner and as a parallel
and compatible system that is in line with best international practices. Following the decision of the
government to shift to interest-free economy in a phased manner without causing any disruptions,
the effort was envisaged to be based on a market-driven and flexible approach.
The Islamic Financial Services segment is an increasingly important constituent of the financial
sector in Pakistan and has grown in size and diversity in just a few years. The participants of the
Islamic banking industry are all strong players with a sound capital base, compliant with SBP's
MCR requirements uniformly applied to both conventional and Islamic banks, which restricts entry
into the sector without the requisite sound financials. The asset-base of the Islamic banks
increased by 13.3 percent in October-December 2009 compared to 7 percent growth in total
assets, posted by conventional banking system during the same period under review. According to
the SBP latest report, Islamic banking operations remain profitable and steady in December-09
quarter.
Growth in assets of Islamic banking continued to surpass the growth of assets in conventional
banking by expanding the share of Islamic Banking Institutions (IBIs) in the industry as a whole.

MAIN OBJECTIVE OF SELECTING MEEZAN BANK
My main intension for selecting the Meezan Banks Marketing Unit for my final report is due to
following reasons
More fully understand the activities and functions of marketing professionals
To learn about the marketing strategies of Meezan Bank Limited
The purpose of the internship is to acquire practical work. This experience is designed to
expand having experience and to integrate and reinforce skills concepts achieved in the
class room
The internship provides a practical experience of a structure of environment.
To develop the ability to analyze and suggest solutions faced to marketing professionals in
marketer.
To apply knowledge and skills, which have been educated by tutors, teachers
simultaneously improve the concepts in a real working situation.

HISTORY OF MEEZAN BANK OF MEEZAN BANK
OVERVIEW
During 1997, Al-Meezan Investment Bank is established as the first Islamic bank of Pakistan. Mr.
Irfan Siddiqui appointed as first and founding Chief Executive Officer.
During 2002, the Shariah Supervisory Board is established at Al-Meezan Investment Bank led by
Justice (Retd.) Muhammad Taqi Usmani as chairman. State Bank sets criteria for 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.
During 2003, A Musharaka-based Export Refinance Scheme has been designed by the State Bank
in coordination with Meezan Bank Limited, in order to provide export finance to eligible exporters
on the basis of Islamic modes of financing. Efforts are underway to develop Islamic money market
instruments like Ijarah Sukuk to facilitate the banks in respect of liquidity and SLR management.
Pakistans first Shariah compliant Mortgage facility is launched by Meezan Bank. Approved by the
Shariah Supervisory Board, the product enables home purchase, home construction, renovation,
as well as replacement of any existing mortgage. Al Meezan Investment Management Limited
(AMIM), a group company of Meezan Bank, introduces Meezan Islamic Fund (MIF). MIF is an
open-end mutual fund that is Shariah compliant. Meezan Banks asset management arm, Al

Meezan Investment Management Limited (AMIM), launches the Meezan Balance Fund (MBF). The
offering was oversubscribed 1.25 times.
During 2005, Meezan Bank launches the Meezan Islamic Institution Deposit Account (MIIDA), a
unique product tailored exclusively for Islamic Financial Institutions (IFIs). The facility is the first of
its kind in Pakistan, whereby Islamic Banks (including dedicated, as well as conventional Islamic
windows) now have the opportunity to manage excess liquidity by maintaining a checking account
with Meezan Bank specifically designed for this purpose.
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 Islamic Insurance (Takaful).
Vision
Establish Islamic banking as banking of first choice to facilitate the implementation of an equitable
economic system, providing a strong foundation for establishing a fair and just society for mankind.
Mission
To be a premier Islamic bank, offering a one-stop shop for innovative value added products and
services to our customers within the bounds of Shariah, while optimizing the stakeholders value
through an organizational culture based on learning, fairness, respect for individual enterprise and
performance.

Meezan Bank is the first and largest Islamic bank operating in Pakistan with a network of 413
branches in 100 plus cities. It offers a complete range of Islamic products and services including
car leasing and home mortgages. The bank's retail banking network is supported by 24/7 banking
services - these include 250 plus ATMs, Internet banking and a 24-hour call centre. The bank has
recently launched its VISA Debit card that allows its customers to shop at more than 30 million
merchandises worldwide and funds withdrawal facilities from more than 1.4 million ATMs
worldwide. The bank was also awarded the Best Islamic Bank of Pakistan for the fourth
consecutive year in 2009 by Islamic Finance News and the Best Islamic Financial Institution in
Pakistan in 2009 by Global Finance

FINANCIAL PERFORMANCE & BUSINESS VOLUMES OF MEEZAN BANK
Notwithstanding the very high level of provisioning, the bank registered an
impressive 65% increase in profit after tax, from Rs 621 million in FY08 to Rs
1,025 million FY09, an increase of 65%. In addition, the consolidated profit after
tax of the bank increased from Rs 213 million in FY08 to Rs 1.577 billion in FY09,
an impressive increase of 640%, primarily on account of substantial increase in
the Net Asset Value of the bank's investments in funds managed by its
subsidiary, Al-Meezan Investment Management Limited. Profitability ratios
demonstrate a turnaround from the declining profits of 2008. ROE recorded at
16% in FY09, up from 12% in FY08
MEBL realised a profit after tax (PAT) of Rs 621 million in FY08, which is 36%
lower as compared to previous year's profit of Rs 963 million. Net income from
financings, investments and placements registered a 75% growth, as a 49%
increase in income was not matched by 26% increase in returns on deposits.
Compared to conventional banks MEBL did not show any massive increases in
NPLs and is within the margin of safety.
The decrease in profits is attributable to lower "Other Income" this year. On a
general observation we see that unlike conventional banks, MEBL has been
relying on other income unlike to make up its total profits but this year the picture
didn't appear to be favorable as it had many losses from sale of securities and

investments. All in all other income fell by 47% while other expenses rose by
54% thus reducing profit before tax by 22% and PAT by 36%. The profits
decoded into an EPS of Rs 1.26 in FY08 while EPS in FY07 was Rs 1.96 per
share.
Meezan Bank's profitability saw a promising growth of 60% in the year 2007. The
growth was driven by a high net spread income of Rs 1.2 billion, an increase of
71.7% from the previous year. Over the years, ROA had shown a mixed trend
despite persistent increase in profits. This might be true due to changing industry
dynamics and rapid increases in assets. For instance, last year the total assets
grew by 26% and before that they grew by 45% thus resulting in lower ROAs as
the profits did not rise proportionately. In FY08 the ROA fell to 0.73% as
compared to 1.43% last year for the reasons quoted before like lower profitability
and increases in Total Assets.The ROA of the bank, which had seen a slight dip
of 1.30% in FY06 (2005: 1.37%), surged to 1.43% in FY07. The bank's assets
have been on average being fuelled by growths in investments and fixed assets.
The bank's assets at the end of 2006 were Rs 67 billion. The bank has been
following a policy of expansion to cater to a large number of people who are
attracted to Islamic banking. An increased investment by 266% and the overall
growth in earning assets promises higher profitability in the years to come. Also
the ROA is above that of the other Islamic Banking Institutions (IBIs) which is
0.9%.

Total deposits at December 31, 2009 crossed Rs 100 billion compared to Rs 70
billion for 2008, an increase of 43%, compared to the national average of
12.63%. Deposits increased in all categories, notably in Current Accounts and
Saving Deposits. Margin deposit is the only category that witnessed a decline of
15% in FY09. Despite a difficult 2009 on both the economic and business fronts,
corporate banking was able to achieve growth in its asset portfolio through
careful addition of high quality customers and application of conservative risk
criteria. Corporate assets, including corporate Sukuks stood at more than Rs 40
billion, an increase of 28% in 2009.
The substantial increase in the bank's branch network has allowed commercial
banking to penetrate key markets and build a very well diversified portfolio. The
total asset portfolio of commercial banking has registered an annualized growth
rate of over 50% per annum during the period 2005-09 - increasing from Rs 1.2
billion to Rs 6.5 billion. In light of the difficult economic conditions during 2009,
total portfolio decreased from Rs 6.9 billion in 2008 to Rs 6.5 billion at the end of
2009 due to bank's cautious lending approach. In FY08, overall the deposits
posted 29% increase as compared to previous year to an amount of Rs 70.233
billion. Major growth of 35% is seen in customer deposits while financial
institutions deposits reduced to almost a quarter of FY07 deposits. A probable
reason could be the liquidity strain prevailing in FY08, which led to deposit drains
coupled with competitive return rates from NSS (National Savings Scheme). For
the same reason in FY08 remunerative accounts grew by 17% while non-

remunerative surged by 68% establishing that other banks were providing better
returns on deposits. An important finding is that the deposits of Islamic banks
increased as a share of banking industry to 4.8% showing increasing confidence
of depositors in Islamic banks disregard the rate of returns. The deposits of the
bank have grown remarkably well in FY07 around increasing by 58.4%. The
deposits of the bank were Rs 54 billion at the end of 2007. The bank's deposits
are mainly comprised of long-term fixed and savings deposits comprising around
72% of the deposits. During FY07 period, the deposit structure depicts some
changes, wherein the share of fixed deposits and saving deposits increased from
38 percent and 29 percent last year to 39 percent and 32 percent in FY07
respectively, thus increasing the term deposits from 67% to 71% respectively.
Financing witnessed a continued upward trend in FY09, recording an increase of
11% over the year. Tijarah financing was the most popular advances of the year,
increasing manifold times in FY09. Other good performing categories were
Istisna (132%), running finance (125%), export refinance and diminishing
mushareka (27%). It is noteworthy that the bank allowed for higher provisioning
in FY09, almost 127% higher than the last year. However this did not mar the
bottom line of the bank. An impressive 15% growth is witnessed in financings
(advances) from FY07 to an amount of Rs 39.768 billion in FY08 with major
contributions from Ijarah (23%), istisna (5 folds) and diminishing Mushareka
(182%). Along with this, it is important to note that non-performing loans
increased by 63% highest recorded for this bank but still it's significantly lower

than the industry averages which actually gives an edge to Islamic banks over
others. Earnings assets as a proportion of total assets followed a fluctuating
trend over the years. From 86.2% in FY08 to 86.3% in FY09 it remained at a
constant level, showing stability in the trend. Finance to deposits declined from
56.6% in FY08 to 44% in FY09. Deposits increased by a 44% in FY09 whereas
financings increased by only 11%. On evaluating the performance of Meezan's
earning assets we see that yield (yield as calculated by net spread
income/earning assets) has shown an overall rising trend till FY09 coupled with
increasing gap between the cost and the yield on the earnings assets. Moreover,
'Cost of Funding Earning Assets' has also followed an escalating trend.
On the performance side, mark-up income experienced a robust growth of 38
percent during FY09. Net mark-up income after provisioning also witnessed
healthy growth of 21 percent in the same period. Moreover, as the yield is still
higher than costs of funding, we hope that Meezan continues future expansion
through low cost funding sources.
With the growing operations and fast expanding financing portfolio, the
occurrence of non-performing financing is inevitable. The NPLs of the bank have
increased in FY09 as well but at a slower pace as compared to previous periods.

PRODUCT LINE OF MEEZAN BANK
At Meezan Bank, the core function this institution is to collect deposit through their best Islamic
products which are developed by PDSC Product Development & Shahriha Compliance and also
investment of these funds into Islamic Banking Financing products that could produce a healthy
future return at very low risk as well.
1-PERSONAL BANKING SERVICES
Currently, Meezan Bank is providing following Personal Banking Services to its depositor
holders

Rupee Current Account

Rupee Savings Account

Dollar Saving Account

Karobari Munafa Account

Meezan Bachat Account

Meezan Labbaik

Certificate of Islamic Investment

Meezan Amdan Certificate

Monthly Mudarabah Certificate

Meezan Providence Certificate

Dollar Mudarabah Certificate

Car Ijarah - Auto Finance

Easy Home - Housing Finance
1-Rupee Current Account
Meezan Bank offer Riba-Free Current Account, a flexible Rupee based account that is ideal for
individuals and businesses looking for Shariah compliant banking and professionalism both under
one roof.The Meezan Bank Current Account, is a comprehensive Halal method of acquiring a
secure and easily maintainable Riba Free Bank account.
Bundled with 24/7 and special banking services, the Meezan Bank Current Account is an
innovative value added account which provides customers both ease of utility and unmatched
service quality.
2- Rupee Savings Account

Requisite unique bank account that offers the opportunity to earn Halal profits, while enjoying a
range of added benefits. It can be opened with a minimum amount of only Rs.10,000. The profit on
this account is calculated and paid on a monthly basis, and comes with a variety of free benefits,
no restrictions on transactions, priority banking and more. Riba Free Rupee Saving Account works
under the principles of Mudarabah and is strictly in conformity with the rules of Islamic Shariah.
Profit calculation and all banking transactions are in strict adherence to the Islamic Shariah,
monitored by our Shariah Advisor and the Shariah Supervisory Board

3- Karobari Munafa Account
Karobari Munafa is a high profit savings account specifically tailored for large Corporate or GoP
controlled entities. It allows customers to earn higher returns on surplus cash balances. It has no
preset transaction limits and comes with a variety of free packaged benefits.
The Karobari Munafa Account works under the principles of Mudarabah and is strictly in conformity
with the rules of Islamic Shariah. Profit calculation and all banking transactions are in strict
adherence to the Islamic Shariah, monitored by our Shariah Advisor and the Shariah Supervisory
4- Meezan Bachat Account
Meezan Bachat Account is a unique saving account that provides high monthly returns with the
flexibility to withdraw savings if needed. Thus Meezan Bachat Account offers a higher expected
rate of return with the convenience of a savings account.
With a Meezan Bachat Account, you are entitled for a higher the profit with a higher account
balance. You receive profit even if your balance falls below Rs. 25,000/- in any month. Profit is
credited to your account every month and is calculated with reference to the minimum balance
maintained in the account during the preceding month.

5. Certificate of Islamic Investment
The Riba Free Certificate of Islamic Investment is a Shariah compliant investment certificate with a
minimum investment of Rs. 50,000 and offering tenures from 3 months to 5 years.
Riba-Free Certificate of Islamic Investment (COII) works under the principles of Mudarabah and is
strictly in conformity with the rules of Islamic Shariah. Profit calculation and all banking transactions
are in strict adherence to the Islamic Shariah, monitored by our Shariah Advisor and the Shariah
Supervisory Board.
6- Meezan Amdan Certificate
The Riba-Free Meezan Aamdan Certificate (MAC) is a long-term deposit certificate with an
exceptionally high monthly profit designed especially for those individuals and corporations who

are in need of regular stream of monthly income. MAC is a monthly income (mahana aamdani)
certificate with a variety of free packaged benefits.
7- Monthly Mudarabah Certificate
Riba Free Monthly Mudarabah Certificates is a flexible rupee based investment which has been
designed to give you a monthly return. The minimum investment required is only Rs. 100,000 and
you receive profit for each complete month of investment with the Bank.
8- Meezan Providence Certificate
Meezan Providence Certificate is a long-term investment certificate specially designed to cater to
the needs of corporate and business concerns for purposes of investing their Provident, Pension
and Gratuity Funds.

2- COMMERCIAL CORPORATE & INVESTMENT BANKING
On financing side, provide the following Shariha complained services in order to fulfill the needs of
the Sole Proprietor / Medium Size Organization / Big corporate clients where main aim of the the
Bank is to attain maximum profit at minimum level of risk.
Meezan Bank is providing following services
Working Capital Finance
Project Financing, Expansion, BMR
Islamic Export Refinance Scheme
Letter of Guarantee Facility
Exporter's Products
Importer's Products
Advisory Services
Syndication Structuring
Privatization Mandates
Mergers & Acquisitions
1-Working Capital Finance
Part of the wide range of Shariah complaint solutions for our customers are Murabaha, Tijarah and
Istisnaa, designed to meet working capital requirements. For example, if one need finance for
purchasing raw materials for your industry or are trading in goods then you could use Murabaha or
Istisna/ Tijarha a to meet your financial needs.

a-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 be defined as a sales transaction where Meezan Bank
purchases the commodity and sells it after adding an agreed profit. Thus, it is not a loan given on
interest - it is the sale of a commodity on a deferred price.
Hence Murabaha involves the purchase of a commodity by Meezan Bank on behalf of a customer
and the subsequent resale to the customer on cost-plus-profit basis. The cost 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.
b.Istisnaa
Istisnaa is a sale transaction where a commodity is transacted before it comes into existence. It is
an order to manufacture a specific commodity for the purchaser. The manufacturer (our customer)
uses its own material to manufacture the required goods. In Istisnaa, price is fixed with the consent
of all parties involved. Similarly all other necessary specifications of the finished product are agreed
beforehand. Istisna Finance is used to cater for the working capital requirements of a business
involved in the manufacturing of goods. It is ideally suited for exporters and manufacturers who
have export orders in the shape of Sight/Usance Letter of Credit/ Sight Export Contract D/P/
Usance Export Contract D/A

2- Project Financing, Expansion, BMR
Two of the most commonly used Islamic financing solutions availed by businesses today,
Diminishing Musharakah and Ijarah are ideal for expansion of businesses, BMR requirements or
other medium to long term financing requirements.
a-Diminishing Musharakah
Using this financing model, Meezan Bank and the customer participate in the joint ownership of an
asset. The asset is divided into a number of units and the customer periodically purchases these
units from the bank over a specified period. Over time, the customer purchases all units owned by
the bank, making him or her the sole owner of the asset or the commercial enterprise.
Diminishing Musharakah is most commonly used for the financing of fixed assets, projects, homes
b-Ijarah
In contrast to diminishing musharakah, this mode of financing is based on the provision of the
required tangible assets, such as property, machinery, etc, on rental for an agreed period of time.
The concept is similar to leasing, which is common in conventional banking. However there are
some specific prohibitions which render conventional leasing to be forbidden under Shariah.
Ijarah is commonly used for long and medium term fixed asset financing, project financing and for
retail products such as homes and automobiles.
3-Letters of Guarantee

A complete range of products and services for importers and exporters are available. Based on
various modes of Islamic Finance, the solutions have been designed to suit the needs of our
customers. Some of the key services offered include:
4-Exporters Products
Export bills for collection

Export (Sight) bills purchase under Salam Arrangement
Export (Usance) bills purchase under Murabaha Arrangement
5-Importers Products
Sight Letter of Credit

Usance Letter of Credit
6- Advisory Services
Realizing the increasingly diverse needs of our customers for advisory and structured finance
transactions, a specialized department focusing on Investment Banking is funtioning at Meezan
Bank. The Investment Banking department provides unique structuring by using complex Shariah
structures for transactions so as to meet customer's commercial needs. Meezan Bank as
torchbearer of Islamic Banking has been making significant
3- OTHER BANKING FACILITIES / NON RESIDENT PAKISTANI

SERVICES
Besides, following services are also providing to facilities their customer
Visa Debit Card

Money Transfer
Dollar Mudarabah Certificate
Dollar Saving Account
Account Opening Procedure

Housing Finance
Internet Banking
Remittance Rates
Irfan Siddiqui President & Chief Executive Officer

Ariful Islam
MANAGEMENT HIERARCHY
Chief Operating Officer
Zubair Haider Country Head Corporate
Muhammad Shoaib Qureshi General Manager Commercial Banking
Shabbir Hamza Khandwala Chief Financial Officer & Company Secretary
Dr. Muhammad Imran Usmani Shariah Advisor
Abdul Ghaffar Memon Regional Manager - South
Rizwan Ata Regional Manager - Central
Saleem Khan Regional Manager - North
Arshad Majeed
Head of Operations
Mohammad Haris Head of Corporate & Structured Finance
Mohammad Sohail Khan Head of Human Resources
Faiz-ur-Rehman
Head of Information Technology
Munawar Rizvi Head of Branch Expansion & Administration
Zafar Ali Khan Head of Consumer Finance
Muhammad Abdullah Ahmed Head of Treasury & Financial Institutions
Saleem Wafai Head of Compliance & Organizational Learning
Zia ul Hasan Head of Internal Audit
Muhammad Raza Head of Liability Products & Service Quality
Ahmed Ali Siddiqui Manager Product Development & Shariah Compliance
Omer Salimullah Manager Alternate Distribution

Javed Ahmed Shaikh Manager Risk Management
STRUCTURE OF MARKETING DERATEMENT
INTRODUCTION OF MEEZAN BANKS MARKETING UNIT
At Meezan Bank ltd, the Marketing department is responsible for the promotion of Meezan Banks
brand image as the Premier Islamic Bank across various channels, through which the bank is
visible to the general public. The department continually devises strategies to attract customers
towards Islamic Banking, primarily selecting Meezan bank for consumer, corporate and commercial
banking services.
ATL and BTL activities are effectively incorporated which include initiatives taken by the Marketing
Department, individual departments or branches. Activities include those which are one time
occurrences, monthly, quarterly or annual activities and may involve single or multiple departments
and branches; focused in single or multiple areas, regions or done nationwide.
Special Projects, a sub-division of the marketing department, is responsible for Internet presence
(corporate website, online advertising and social media management), internal and external
corporate communication, in-house designing and project management of numerous technology
focused projects.

MANAGEMENT OF MARKETING DEPARTMENT

ROLE OF MARKETING DEPARTMENT IN MEEZAN BANK
Marketing is the delivery of right product to the right costumer at the right place at the right time at
the right place through the communication and promotion.
Marketing department is go into the marketing and selling for the Meezan Banks products that are
Banking services products. Huge sales force of Bank officers are working in the field. There are
many Regions, Area Managers in the regions / area of the sales department. The achievement of
the targets is very necessary for this department.
Sales force of the company is very much skilled and motivated towards its tasks.
In Meezan Bank, the marketing is defined as
Marketing is the backbone of the Bank, which plays a vital role in company sales,
building brands and Bank image.
All functions of marketing department are very much important to the Meezan Bank
To Create the favorable image of the brands and company in the minds of the
customers which results in sales on which company exists.
The marketing department of the Meezan Bank does the marketing, sales, and research of their
Banking products.
Importance of Marketing research
Market research and marketing research are often confused. 'Market' research is simply research
into a specific market. It is a very narrow concept. 'Marketing' research is much broader. It not only

includes 'market' research, but also areas such as research into new products, or modes of
distribution such as via the Internet. Here are a couple of definitions:

Marketing research is the function that links the consumer, customer, and public to the marketer
through information - information used to identify and define marketing opportunities and problems;
generate, refine, and evaluate marketing actions; monitor marketing performance; and improve
understanding of marketing as a process. Marketing research specifies the information required to
address these issues, designs the methods for collecting information, manages and implements
the data collection process, analyzes, and communicates the findings and their implications.
Obviously, this is a very long and involved definition of marketing research.
Marketing research is about researching the whole of a company's marketing process
This explanation is far more straightforward i.e. marketing research into the elements of the
marketing mix, competitors, markets, and everything to do with the customers.
Marketing is no doubt the most important tool for the success of an organization. It helps to
recognize the problems that are confronted to an organization. The basic purpose of this research
is to identify the problems and then find out the solutions for that. In MBL, they are having the
research and development in the Head Office at Karachi. But this department is very much
efficient. They are highly skilled persons for research unit
In order to meet the requirements of the customers and facilitate them in a better way it is
necessary for Meezan Bank is maintaining the research unit and to make more active and
efficient the existing department at their Branches. It is also needed to compete in the market.
As many Islamic Banks is not having the such a research department as Meezan Bank which is
more advanced and equipped with the technological skills like MBL.. Due to this, MBL is able to
maintain its market image more better way and they still beat their competitors.

CUSTOMER DEMAND
Major Trend of marketing:
Competitive movement: Retaining and promoting the bank as the Premier Islamic Bank in
Pakistan, the largest Product Portfolio, largest branch network and largest deposit holder.
Strongly focused on improving Service Quality levels to become the Best Service Bank by 2011.
Segmentation of their Main Target Customer :
1. Business men
2. Select Self Employeed
3. Employees (White Colour & Blue colour)
4. House wives & Career Entrants
Quality Assurance Process:
A. Product Quality : Information may be taken from PDSC department in regard to
Shariah Audit and Product Development

B. Service Quality: May be taken from Service Quality Department, in regard to Mystery
Shopping, Service Quality Champions, etc. (
FUNCTION OF MARKETING DEPARTMENT
Main Functions of Marketing Department at Meezan Bank are

1) All ATL and BTL functions; some of which may be below (Marketing Mix cannot be
disclosed)
2) Marketing of Islamic Banking Services
3) Brand Management
4) Developing the Product Marketing Strategies
5) Designing of new and reshaping the existing products
6) Advertising of new and existing products as well
7) Market Research to identify the need of basic need of the customer to be fulfilled through
their products
8) Promotion of their Islamic Brands and also search the various media to be used for
promotion
9) Event Management
10) Maintenance and Development of Corporate Website
11) CSR
12) Corporate Communication (SPECIAL PROJECTS) (Internal & External)
13) Band and Industry Promotion
14) Developing and Execution of Market expansion strategies
15) Online Social Media Management

The 'marketing mix' is probably the most famous phrase in marketing. The elements are the
marketing 'tactics', also known as the 'four Ps'. The marketing mix elements are product, price,
placement and promotion.
Some commentators will increase the mix to the 'five Ps', to include people. Others will increase
the mix to 'Seven Ps', to include physical evidence (such as uniforms, facilities, or livery) and
process (i.e. the whole customer experience e.g. a visit the Disney World). Neil H. Borden coined
the term in his article 'The Concept of the Marketing Mix' in 1965. The concept is simple. Think
about another common mix - a cake mix. All cakes contain eggs, milk, flour, and sugar. However,
you can alter the final cake by altering the amounts of mix elements contained in it. So for a sweet
cake add more sugar! It is the same with the marketing mix. Varying the mix elements can alter the
offer you make to your customer. So for a high profile brand increase the focus on promotion and
desensitize the weight given to price.

PLANNING & DEVLOPMENT OF ISLAMIC BANKING PRODUCTS
Product Development is a set of activities beginning with perception of a market opportunities
and ending in product launch and delivery of product.
In Meezan Bank, Product Development is done by the following departments in the following
respects
1. PDSC All deposit and term certificate products

2. ADC Alternate Services focused on customer convenience and Alternated Channels of
Banking
3. MARKETING (SPECIAL PROJECTS) IT related projects, assisting ADC and
consultants for numerous researches in product development cycle.

4. MARKETING Consultancy & Research for PDSC and ADC (where applicable)
PRODUCT DEVELOPMENT & SHARIAH COMPLIANCE (PDSC)
Product Development & Shariah Compliance (PDSC) is one of the important departments of the
bank that reflects strong commitment of the towards Islamic banking and research. PDSC works
directly under the supervision of banks Shariah Advisor Dr. Muhammad Imran Usmani and is
managed by Mr. Ahmed Ali Siddiqui. The function is vital in ensuring strict Shariah Compliance in
all area of banks operations.
PDSC role is manifold and comprises facilitating New Product Development Activities, refining
existing products & procedures, providing Islamic Banking training to new recruits and existing staff
members, conducting regular Shariah Audit & reviews of branches & departments, coordinating
with Banks Shariah Board and providing Islamic Banking Advisory Services to both local and
foreign financial institutions.

In the area of Product Development, the bank has initiated several new structured Islamic Sukuk
transaction, developed a new investment avenue of local Commodity Murabaha to manage excess
liquidity of the bank is a Shariah compliant manner. The bank is also conducting research on
several new Islamic products in the areas of consumer, corporate & retail banking level.
PDSC has played a vital role in imparting Islamic banking training to bank employees, customers,
Ulemas & scholars throughout Pakistan. The department regularly carries out training sessions
ranging from basic to in-depth specialized workshops. During the year 2006, a comprehensive
Islamic Banker Certification (IBC) Program was successfully introduced in Pakistan.
The bank has also provided Product Development Advisory services to different financial
institutions interested in offering Islamic Banking products & services around the world via its
research wing. The main objective of Meezan Banks Advisory function is to help financial
institutions develop Islamic Banking Products by sharing the experience, research & success
stories. The bank has successfully entered into advisory arrangements with Capitas Group of USA,
Al Meezan Investment Management (AMIM), Pakistan & other Islamic banks & financial
institutions.
Currently, Meezan Bank launched the newly deposit product MEEZAN BUSINESS PLUS, main
steps involved in newly added product planning & development involved are
Understanding Customer Need / identify the strategic role of Meezan Business Plus
Generation of Idea of Meezan Business Plus - MBP
Screening of Idea for MBP

Business / Market Analysis for MBP
Main MBP Concept
Development of prototype
Finally Design and Market testing

.
Commercialization
Maintenance & Improvement in MBP
1. Understanding Customer Need / identify the strategic role of Meezan Business Plus
At first, focus of the Marketing Unit was remained at the following:-
Identify the target market which is suitable for target. So the main customer identify
are small SME. & Sole proprietor.

Also recognise the basic need that would be fulfil through the Meezan Buiness Plus.
What are the alternative options available for the same target customer against the
MBP.
Identity the target market future demand
Assist the market position of MBP as compared to already competitive products
available in the market.

Marketing unit also recognise the current customer trend and satisfaction level.
Complete SWOT analysis of MBP.
Researching the NEXT Market was next step for marketing team through conduct and
study studying the

- Trend Report
- Consumer Studies
- Various Surveys & Interviews
- Various Focus Group
- Various Observations
2. Generation of Idea of Meezan Business Plus - MBP

For generation of idea for MBP, marketing unit met with following persons
- Various already customer.

- Sales / Marketing persons of the Bank.
- Various employees of the Bank.
Besides they also conduct the below strategy:
- Research & Development for identify the main idea of MBP
- Analyze their competitors product with same attributes.
3. Screening of Idea for MBP
After that Marketing unit screning the idea of development of MBL by
- Analyzing the benefit if the product launch in the target market..
- Assessing the feasibility of developing and delivering the MBP
- Measuring the profitability of MBP when it has designed and deliver to the
customer at target market.

4. Business / Market Analysis for MBP
In this step, Marketing Unit, estimate the below estimation
- Estimated Selling Price / Profit Rate for MBP
- Estimated number of accounts to be opened.
- Estimated Breakeven & profitability of the product as it become the good
source of deposit.
5. Main MBP Concept

Main concept of the Meezan Business Plus is a unique business account that is based on the
concept of Mudarabah and is a Shariah compliant solution of offering free services to the
Business account holders as an alternative to the conventional banking current accounts (that
are based on Qarz and offer free services related to a specific balance - hence linking the
benefit of free services to the amount of loan/qarz and entering into the domain of Riba).
While developing the main structure of Meezan Business Plus (MBP), marketing unit kept in
mind the following

- Actual Target Market.
- Key Decision Makers in opening the account of MBP.
- Design Main features of MBP
- Estimate the benefit that would attain through the MBP.
- Analyze the customer reaction after opening and exections of transction in
MBP.
6. Development of Prototype
- Focus Group Interviews.
- Existing depositors interviews

- Made key adjustment in the MBP where it necessary.
- Pilot Testing.
7. Commercialization
Now the Marketing Unit under kind guideline of PDSC have developed and successfully
launched the product of Meezan Business Plus Account

MAIN FEATURES OF THE MEEZAN BUSINESS PLUS ACCOUNT ARE
Offered maximum free services like
Free Unlimited Cheque Books
Free Unlimited Pay Orders (if issued from Parent Branch)
Free VISA Debit Card
Free On-Demand Account Statements
Free Intercity Clearing through NIFT
Free Hold Mail Facility
Free Stop Payment requests
Free SMS Alerts
Free Certificate of Accounts/ Balance maintenance
8. Maintenance & Improvement Practises in MBP
Currently, following material / brochures for marketing purpose has been sent to the branches
of Meezan Bank.
Urdu Brochures placed in branches

English brochures placed in branches
Standees placed in branches
Urdu/English Leaflets to be used for mega marketing by sales team at
seminars, Jamma prayer Mosque activities, sales blitz, take one stand etc
Further, Marketing Department has also prepared Advertisement Theme and recommended to
give Advertisements in all important & related news Papers like Dawn, Business
Recorder, Financial Times, Jang, and Daily Express, country wide as per attached media plan
Moreover, they also a plan to provided necessary training to branches and sales teams
PRICING OF ISLAMIC BANKING PRODUCTS

Pricing is a very important component of marketing mix. In this, organization which are made for
generating revenues charge some profits meeting their costs.

Rice = total cost + profit
Different organizations have different preferences related to price. Some are in favours of
charging high profits margin per unit. Which other firm keep the per unit profit low but try to
maximize their total profit.
Pricing is not an easy achitiy, it is effected by large number of variables which include.
The nature of product.
Campaign past second
Companys pricing strategy
Nature Of Product
This price charged for a product depends largely on the nature of product. For an
innovative product generally high price are charged following the price skinning strategy.
This strategy can only charged by those organization which have stray R & E facilities and
a culture of innovation and increasing new cities.
On other hand, the campaign which are involved in walking routine products usually dont charge
very high price i.e keep high profits because, normally a large number of competitor are present in
this category and prices tend to stabilize. The companies in this situation mainly follow price
penetration strategy by keeping a nominal price and targeting a large segment of market in one
time. But in the same category higher can also be charged if the product is under strong brand
have and trade mark.
Companies Vast Record
The prices charged a company also depends upon the part performer of the company that
how reliable one the products of company is there one contain trade marks whose pressure on the

product ensures that this s a high quality product, developed from state of art technology, there
would no defect in the product and product is not harmful for human health the big players. This
category involves the big players like McDonalds, KFC, SONY etc. There big players can charge
high price specially when there hit new markets but as soon as competition builds up price slow
down world trend.
Situation is opposite in case worked or its past record is not good. This means the products
company made care not of higher quality or there who defects in the products based on less
spending on R & D. these new entries first try to build up brand loyalty by charging low prices and
offering maximum facilities to the customer.
Companys Pricing Strategy
This is also one of the main determinants that what pricing strategy company is following. There
are two very famous pricing strategies.
Price of kimming
Penetration pricing
Price skimming is generally used for innocent we products. In this strategy price are moved from
top to button in order to skim the segments layer by layer. What as penetration pricing is used
when nature of product is moved from top to bottom in order to skim the segments of target market
is focused.
P R I C E AT WAL L S
Walls at being the market leader and the major innovator in the industry normally charge higher
prices for its products. These high prices are justify by the management that they are due to
High quality standards

Research and development cost
Extensive distribution etc
High Quality Standards
When there is a question of quality, the only consumer in ice cream industry is walls. Walls quality
standards are based its international expenses of marketing ice cream n more than 100 countries
of the world. Also quality maintenance is one of the top priorities of LBPL and competitive
advantage.
The two factor of walls with state of the art equipment ensure that the products made are
of high consistent quality. But to maintain this quality definitely some cost is circurred which is very
genuinely charged by walls.
DISTRIBUTION STATEGY OF ISLAMIC BANKING PRODUCTS

A channel of distribution comprises a set of institutions, which perform all of the activities utilized to
move a product and its title from production to consumption.
Place is also a channel of distribution or intermediary. It is the mechanism through which goods
and/or services are moved from the manufacturer/ service provider to the user or consumer. There
are many types of intermediaries such as wholesalers, agents, retailers, the Internet, overseas
distributors, direct marketing (from manufacturer to user without an intermediary), and many
others.
1. Branches Network
Meezan Bank has established 201 branches in 54 cities across Pakistan. This is a milestone that is
not only the success story of Meezan Bank but also the continuing success story of Islamic
Banking in Pakistan. With this extensive network, their existing and potential customers are now
closer than ever in attaining Islamic Banking at their doorstep. All branches provide real time online
banking facilities to customers.
As the first and largest dedicated Islamic Bank in Pakistan, Meezan Bank team continues to build
on its Vision of establishing "Islamic Banking the Banking of First Choice". One of the key
objectives of the Bank is to have its footprint strategically placed throughout the country enabling
the public to avail the benefits of Shariah Compliant Banking in their neighborhood.
The Bank is currently segmented into three Regions of Pakistan. The cities in which the Bank
presently operates are as follows:
Meezan's Branch Network

Southern Region Central Region Northern Region
Arifwala Abbottabad
Hub (Lasbela)
Hyderabad Attock
Bahawalpur
Karachi Burewala Dera Ismail Khan
Mirpurkhas Chiniot Dina
Nawabshah Daska Gujar Khan
Quetta Dera Ghazi Khan Haripur
Sakrand Faisalabad Havelian
Sukkur Islamabad
Gojra
Tando Adam Gujranwala Jhelum
Tando-Allah-Yar Gujrat Kohat
Hafizabad Mansehra
Jhang Mardan
Kasur
Muzaffarabad
Khanpur Nowshera
Khushab Peshawar
Lahore Rawalpindi
Lalamusa Swat
Mandi Bahauddin
Mian Channu
Multan
Okara
Rahim Yar Khan
Sadiqabad
Sahiwal
Sargodha
Sheikhupura
Sialkot

2.Specialized Product Centres (Housing Finance / Car Ijarah)
At almost every Branch of Meezan Bank, there is special unit of consumer Finance is working is
working which is an excellent channel of introducing the Islamic Banking products of MBL that are
fully Sharihs complained.

2. PDSC: Shariah Advisory Services directly with clients
Besides, PDSC unit at Meezan Bank also met with different customers of the Bank periodically
where main purpose is to develop the intention and understanding / introducing the Islamic
Banking products of Meezan Bank.

3. Corporate & Commercial Department & Regional Corporate Department divisions:
Direct Correspondence with Clients
MBL is dedicated to providing you Shariah-Compliant financing. With our extensive and dynamic
product portfolio, we are continuously working not only to improve and strengthen our customer
relationships but to further provide new and better products and services to our customers.
At present, Corporate Banking has a large number of multinational and local clients representing
various sectors of the economy. Client relationships are handled by dedicated Relationship
Managers and fully supported by our Branch staff to provide high quality service at competitive and
market driven pricing. As part of a continuous effort to bring Islamic financial services to all
businesses, Meezan Bank established its Commercial & Corporate Banking unit.
The Commercial Banking unit is responsible for business generation focusing primarily on the
middle / corporate market customers, which include a diverse group of medium / large scale
industries, traders, importers, exporters, distributors, etc.

A substantial number of entrepreneurs and sponsors prefer Shariah based financial solutions to
conventional financial solutions. With no other solution fitting to their requirement they often
maintain only current accounts. Meezan Bank aims at providing this segment with immediate relief
and support by promoting Riba-free Banking as the obvious and most viable solution.
As a key incentive for providing convenience to the Commercial & Corporate Banking segment,
Meezan Bank promptly increased its Branch and now Bank will give the Islamic Banking services
to meet the needs of the customer. Meezan Banks Corporate & Commercial Banking unit provides
comprehensive and innovative financial solutions to the Banks client base through a diverse
product offering. With focus on providing value added services to meet its customers financial
needs, based on the rapidly changing global environment, the solutions provided include the use of
different modes of Islamic finance for meeting short & long-term financing as well as other trade
related customer requirements.
Small & Medium Enterprises SMEs are officially classed in Pakistan as units employing between
10 and 100 staff. Under this definition, there are about 80,000 SMEs in the country, most
concentrating on trade and services. However the true significance of SMEs is much higher taking
into account the SMEs operating in the informal sector each employing between 5 and 10 staff.
Meezan Bank has been providing financial services to this segment for nearly 4 years. SMEs, due
to their enormous employment generation potential, have assumed a critically important role in the
economic development and poverty alleviation particularly in developing countries. The
Government has also recognized it as an important component of its economic development and
poverty alleviation strategy. With growing concentration in the sector (SMEs), SBP has also
established a separate SME Department during the year to focus on all SME finance issues.

According to recent estimates (by SMEDA), there are approximately 3.2 million business
enterprises in Pakistan.
4. Treasury & FI : Direct correspondence with Clients
Meezan Banks treasury is guided by Shariah with the objective of reviewing, streamlining, and
controlling the banks domestic and international treasury related operations. Treasury caters to the
branches and customers for their entire 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
basis about the currency movement by our dealing room augmented by market outlook (without
any commitment & obligation)
Treasury has enhanced its market activity with increased depth and enhanced volumes, making an
impact in the inter-bank FX market. Due to its good relationship with other treasuries, the institution
has the ability to generate sufficient amount of liquidity at a time through inter-bank market on
Shariah-approved Musharaka basis.
Meezan Bank conducts Commodity Murhaba transaction 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 in Pakistan with a mandate to provide Shariah
compliant investment opportunities in capital market that provides halal income ultimately to
shareholders

Financial Institutions, part of Treasury and F.I. Group, primarily focuses on building and maintaining
relationships. Relations range from authenticated communication links by way of SWIFT BKE to
Trade, Treasury and account maintenance in different currencies worldwide. With over 172 banks
in 83 countriies, our 565 globally located correspondents provide all trade services seeking to add
value and service to our branches and functional units. Services include advising, confirmation,
discounting of letter of credits, reimbursement undertakings and standby LCs and guarantees.
Further, the ever-increasing BKE relationships with financial institutions serves to route all kinds of
transactions.
Corresponding Network
Our network of correspondent banks comprises of leading financial institutions around the globe.
For your convenience we have defined type of services provided by our correspondent banks in
terms of Remittance & Payments (R/P), Advising (Adv) & Confirmation (Conf).
PROMOTIONAL STRATEGY OF ISLAMIC BANKING PRODUCTS

MBL use of all media and communication channels available for nationwide promotion. Global
promotion is strictly done via utilization of the World Wide Web and participating in international
lectures and seminars.
PUBLICITY (Promotion)
Publicity is any form of non-paid commercially significant news or editorial comment about
ideas, products or institutions.
ADVERTIING CREATIVE (Promotion)
Advertising is the most important component of the Islamic Banking products consumer
communication program.
Advertisement Media
Print
While print lacks the motion and sound elements of TV, it offers the advertisement of high
resolution visual imagery and no time constraints. As such, print creative will feature dramatic
beauty features of Islamic banking services and help build the visual brand imagery, and provide
more information about the product. Print will contribute the Surround the consumer effort during
and following the launch, adding both reach and frequency plans. Following the launch explosion,
print creative will build awareness of the major product features that are the key to achieving
Islamic Banking products incredible performance superiority and that will separate these from any
imitators to come.

Radio

Radio creative will complement TV advertisement in building the Islamic Banking products brands
personality and message while capitalizing on the audio power of super sonic flight. Radio creative
will make extensive use around creative elements, such as news time. Radio will quite literally
contribute to the Loudness Islamic banking products.
Because of its cost effectiveness, radio can significantly contribute to the Surround the consumer
effort by adding incremental frequency at rationally low cost. Radio is also an effective media for
positive ins with major retail accounts. Execution have been developed for use during all phases
of the MY1 plan pre launch, launch explosion and post launch franchise building.
Newspapers
News paper advertisement will play a secondary, supportive role in the Islamic banking services of
Meezan Bank. News paper creative will be developed for the two uses. As a part of the launch
explosion, day 1 newspaper creative will portray the Islamic banking services in unexpected
settings, such as bursting out of the financial pages. These day 1 executions will play a high impact
role in kicking off the Surround the consumer campaign, with the intention of generating
immediate brand awareness and word of mouth buzz.
For market with limited vehicles for male oriented print advertisement, newspapers variation of
the print execution will be available .
Out door
Out door advertisement like newspapers will play a secondary, supportive role in the launching and
promotion of Islamic banking services. Out door provide an effective support medium to
supplement the pre-launch explosions phases of the introductory advertisement. As with
newspaper creative, final execution for out door have not yet been developed.

Internet
As part of the surround the consumer launch effort, MBLs Islamic Banking services will burst onto
the internet at the time of launching of new products. The internet provides a new opportunity for
highly interested audiences (including the media, the investment community, and the trade, as well
as motivated consumer) to learn more about the revolutionary new product. For these audiences, a
comprehensive website is being developed. In addition to creating an extensive Meezan Bank
website GNAG, Interactive team in working with an Internet, specific agency to evaluate the
potential for using the internet for awareness building advertisement medium.
Conduct Islamic Banking Seminars
Meezan Bank Limited conducted a series of seminars on Islamic Banking at 20 locations in various
cities across Pakistan. These seminars were in line with the banks vision of making Islamic
banking the banking of first choice and to increase the awareness amongst the general public
about the importance and benefits of Islamic banking, says the banks press release.
Islamic banking has grown very rapidly in Pakistan but people are generally not clear on the
concepts on which it is based. These seminars would dispel the misunderstandings about Islamic
banking, give access to the general public for one-on-one discussions, answer queries, and
develop a better understanding of the concepts of Islamic finance.
The seminars of Meezan Bank were successfully held not only in major cities but also in many
small towns across Pakistan. The seminars were appreciated by customers who requested these
be held more frequently.

Public Relation (PR)
An aggressive PR program will ensure two explosion of editorial coverage across the Pakistan.
CRITICAL ANALYIS
REASONS FOR FAILUR OF MEEZAN BANKS PRODUCTS

MBL use of all

MAJOR COMPETITORS OF MEEZAN BANK
Main competitors of Meezan Bank are as follows
Year ISLAMIC BANKS & CONVENTIONAL BANKS WITH ISLAMIC BANKING

WINDOW
Meezan Bank
Bank Of Khyber
2003
MCB Bank
Bank Alfalah
Albaraka Islamic Bank

2004 Habib Bank AG Zurich
Metropolitan Bank
Standard Chartered
Soneri Bank
Habib Bank
2005
Bank Al Habib
Dubai Islamic Bank

Bank Islami Pakistan
RBS
2006
Askari Bank Ltd
National Bank
United Bank

Emirates Global Islamic Bank
2007
Dawood Islamic Bank
FUTURE ENDEAVORS FOR MEEZAN BANK
Islamic financial assets of MBL are expected to cross $1 trillion by 2010, in other words, 12% of
domestic banking industry share by 2012. The Islamic banking industry continues to grow in
Pakistan and six full-fledged Islamic banks are now in operation.
It is interesting to note that the conventional banks are increasingly realizing the huge potential
market backed by the untapped and steadily growing appetite for Islamic banking products; hence
the drive for entering this market is based on business considerations in addition to religious
considerations.
As the level of awareness and understanding of Islamic banking remains very low, this might pose
as a threat to the credibility to the full-fledged Islamic banks like Meezan. For this reason, there is a
need for all banks to act in concert and help build awareness of Islamic banking throughout the
country.

SHORTFALL / WEAKNESS OF MARKETING UNIT
The majority of people are not well aware about the products of Bank Meezan.
There should be advertisements especially for home, agri & car loans, RTC and Credit
Cards.
Mismanagement of time is another big mistake in Bank Meezan branches
Bank official time of closing is 6:00 pm but due Mismanagement of time employees leave
their desk at 8.00 pm which is so hectic and cause employee frustration.
A behavior has been noted that bank tries to feel at ease with good looking rich and
educated people and the un-educated and old customers feel some bit strange in the
environment of the bank.
Proper guideline should be given to the customer about bank products.
They must facilitate customers with current information.
Many of the customers complaint that there should be two or more person who will guide
people at entrance where they have to move, concerned person and department, teach
how to fill forms, slips and cheques.
The number of cash counter must be increased

The customer have to wait at peak hours on the counter for deposit
Withdrawals procedures are time taken
Online payment slips need plenty of time to go through
No proper name plates are available for the employees.
Cultural values are somewhere strong and somewhere are very weak
Bank Meezan has many competitors who are continuously increasing their products and
marketing aggressively it may cause its customer to shift to its competitors. The
Competition has become severe by the entrants of so many banks, So to exist one will
have to prove himself in its services through excellent management and will have to satisfy
its shareholders. Otherwise he will be out the market.
The decrease purchasing power of consumer in the current economic situation of the
country affecting the business activity speed too much and the result is the low investment
from the investors in new projects can create problem for the bank because it is working a
lot in trade.
The privatization of other banks is also a threat for the Bank. Due to the privatization of
the different bank e.g. MCB; the competition has increased a lot. Furthermore many
private banks have come in the sector due to which it is becoming more difficult day by day
to attract the customers.
The biggest threat in the banking sector is the continuous downfall of the country economy
since the last few years. If this downfall remains for more few years then it may be the
great hindrance in achieving the Banks objectives.

FINAL CONCLUSION / RECOMMENDATIONS
Finally, here are some suggestions for Bank Meezan Limited. These suggestions are based on my
observation while my stay at bank.
This is a routine practice that in order to give personalized services to the customer, bank
staff tries to fill all the columns of AOE with their own handwriting, which is wrong. AOE
must be filled in by the customers. Bankers should avoid to fill in the AOE because it can
create problem if the address, title of account or any other information provided by the
customer has not been written properly. Customer may be affected or he may claim that
the information was not provided by him, but if AOE is filled by the customer then bankers
will not held responsible for any incorrect information provided by the customer.
Under no circumstances chequebook should be given to the customer if the account
formalities are incomplete.
There are two officers involved in cash deposit process, which is time consuming. Cashier
should be given certain powers to receive cash of US$ & DM to provide prompt services.
Similarly, there are two officers involved in cheque payment process, which is time
consuming. Cashier should be given certain powers to pay cheques up to Rs. 25000/- to
provide prompt services.

Cheques, which are drawn on Bank Meezan Branch and returned unpaid in clearing, are
not reflected in the statement of account of the customers. These cheques must be
reflected in the accounts so that credibility of the customers may be assessed.
ATM, credit card, all these facilities should be provided to attract more customers.
Audit should be held internally, rather there should be an audit department in the branch to
make audit on daily basis. This can become so, helpful as a different banks are having this
department of their own.
Demand draft issuance procedure is very time consuming, as the has to wait for than
almost half an hour to get a Demand Draft. This operation must be one window operation.
ATM machine is almost out of order most of the times. This facility is very important to
provide to the customers as they want to cash the money in no time and this is also not
worthy for the bank that its employees are using the ATMs of MCB or PICIC bank for the
delivery of cash.
No customer can know the designation and name of any of the employees working there in
the bank. The reason behind is there is no nameplates for the employees.
OBSERVATION & CONCLUSION
I observed the bank Meezan a financially sound bank. Its profits are increasingly year by year. Its
staff is very good and sincere with the bank. Bank Meezan under the leadership of Sheik Nahayan
Mabarak Al-Nahayan has made significant progress in building and strengthening both the
corporate and retail banking sectors in Pakistan. The bank attained number 2 positions in terms of
its balance sheet size amongst the private banks in Pakistan in 2000.

Bank Meezan views specialization and service excellence as the cornerstone of its strategy. The
people at bank realize that innovation; creativity, reliability, customized, services and their
execution are they key ingredients for their future growth.
Revenues from these activities has started yielding dividends and they expect significant growth.
The areas in the coming years.
They are aware that they have stepped into the 21 st century and they must meet its challenges by
acquiring the highest level of the technology. They will thus be accelerating their technological
advance to enable them to distribute their products and services through most efficient and high
tech means. They say that they will continue to invest in the modern tools and substantial
allocation to resources will be made to achieve this objective during the current year. Online
banking have been started and the introduction of ATM at strategic locations have been firmed up
and it will be fully operations during the June 2001.

A NNE X U RE S
1. MARKETING STRATEGIES
2. HISTORY OF MEEZAN BANK
3. CERTIFICATE OF INTERNSHIP ISSUED BY THE MEEZAN BANK
LTD O L D B H A W A L P U R R O A D M U LTAN

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Internship Report of Meezan Bank Page 1 of 66

LORDS OF THE LORDS, THECOMPENSATE,

MASTER OF THE DAY OF THE JUDGMENT!

YOU ALONE WE WORSHIP.

AND TO YOU ALONE WE WORSHIP.

AND TO YOU ALONE WE LOOK FOR HELP

THOUSANDS OF SALAM TO HOLY PROPHET

Internship Report of Meezan Bank Page 2 of 66

Business environment are becoming more and

Internship is an integral part of the study of

Internship Report of Meezan Bank Page 3 of 66

Praise to Allah, who bestowed upon us the

I wish to express deep sense of gratitude to

I am thankful to all those people who helped

Internship Report of Meezan Bank Page 4 of 66

RIBA ITS PROHIBITION & CLASSIFICATION

Internship Report of Meezan Bank Page 5 of 66

RIBA IN THE QUR'AN

1. First Revelation (Surah al-Rum, verse 39)

2. Second Revelation (Surah al-Nisa', verse 161)

a grievous punishment (4: 161)"

3. Third Revelation (Surah Al 'Imran, verses 130-2)

you may receive mercy."

Internship Report of Meezan Bank Page 6 of 66

Internship Report of Meezan Bank Page 7 of 66

of haram trades & businesses etc.

is based on the Quranic injunction of

God has permitted trade and forbidden interest.

(Surah al-Baqarah, Verses 275)

objectives of an Islamic economy.

WHAT DISTINGUISHED ISLAMIC BANKING WITH CONVENTIONAL BANKING

Transactions are asset-based

It is socially-responsible banking because it operates under Shariah restrictions

Does not permit financing of prohibited goods / Industries

Internship Report of Meezan Bank Page 8 of 66

decisions. Not a choice but a must.

Conventional Banking Islamic Banking

which creates real wealth in the society leading

the balance sheet. and on profit on assets side.

from the banks true performance.

ISLAMIC BANKING IN PAKISTAN

Internship Report of Meezan Bank Page 9 of 66

the effort was envisaged to be based on a market-driven and flexible approach.

increased by 13.3 percent in October-December 2009 compared to 7 percent growth in total

Internship Report of Meezan Bank Page 10 of 66

More fully understand the activities and functions of marketing professionals

To learn about the marketing strategies of Meezan Bank Limited

The internship provides a practical experience of a structure of environment.

simultaneously improve the concepts in a real working situation.

Internship Report of Meezan Bank Page 11 of 66

Irfan Siddiqui appointed as first and founding Chief Executive Officer.

commercial banks to conduct Islamic banking in the country.

as well as replacement of any existing mortgage. Al Meezan Investment Management Limited

Internship Report of Meezan Bank Page 12 of 66

offering was oversubscribed 1.25 times.

with Meezan Bank specifically designed for this purpose.

Internship Report of Meezan Bank Page 13 of 66

Pakistan in 2009 by Global Finance

Internship Report of Meezan Bank Page 14 of 66

Notwithstanding the very high level of provisioning, the bank registered an

an impressive increase of 640%, primarily on account of substantial increase in

subsidiary, Al-Meezan Investment Management Limited. Profitability ratios