Internship is a partial requirement of our Bachelors of Business Administration program. This internship report highlights the various actions, activities and purposes of Meezan bank of Pakistan at Autobahn branch. MBL is the first and largest Islamic bank of Pakistan and it is also the one of fastest growing financial institutions in banking sector of economy. MBL is the one the largest Islamic bank which works on purely Shariah based principles and rules and it has 571branches in nationwide. Internship provides me the opportunity to develop the practical concepts of banks and learn how the banking sector works. Meezan bank limited is not involved in unethical investment like alcohol, gambling etc, as an Islamic bank it doesn't deal with interest and there are no hidden policies in Meezan bank. My internship in MBL was provide me full learning regarding various aspects of banking sector, and my internship report contains practical knowledge and I gained information about the different departments of MBL during my days at MBL. Internship program also helps me to learn about the organization system and how it works and also know about how to solve the problems that are occurring in banking sector. One of the most important reasons for choosing this bank is that it has the largest Islamic bank of Pakistan I want to know how Islamic bank works differ from other conventional banks. The environment of Islamic is safe and secure and the staff of Islamic bank is cooperative and supportive is compare to other conventional banks. Important thing that influenced me to select MBL was that it has the privilege of being premier Islamic bank in Pakistan and it is the market leader among all Islamic banks.
INTRODUCTION OF THE INTERNSHIP
1.1 Purpose of study
The purpose of my internship program is to help the knowledge and activities which are conducted to an open air environment. These skills and knowledge deliver the chance of students to apply concepts in the world.
It is not only gives us a chance to interact with people already working in organization but this enable us to get to know how the financial institutions concerns atmosphere and business stature in Hyderabad. The real purpose of this internship program is to provide an opportunity to the students to see the practical applications to their background professional studies.
The main primary purpose of this study is that it is essential for business and administration students to obtain with real world presentation of professional education by gaining skills and knowledge. In this collection everyone is requisite to get the experience from six weeks of internship program.
The main points of this internship program can be summed up as follows
• To familiarize the student with the practices and working environment during the internship.
• To understand the behavior of banking sector and its organizational set-up.
• To observe the behavior of the officials with their clients.
• To get know-how of overall mechanism of Meezan bank.
• To know how Meezan bank plays its significant role in Islamic banking sector and in the development of financial and business sector of our country.
• To prepare the students for job before they really join it.
• To get orientation about actual working conditions by participating in organization's business affairs, by actually working in various department.
1.2 Reasons for choosing organization
I select the Meezan bank limited in Hyderabad because it is the first and largest Islamic bank of Pakistan. It is also the one of fastest growing financial institution in the banking sector of the country. I choose Meezan bank because I want to get knowledge that how Islamic bank work differ from other conventional banks. Besides, particularly as I am student of management of business and administration science it is important to get knowledge of banking sector and their activities.
The foundation of my knowledge which I get from bank is to help me for the preparation of documents, communication with employees and customers. I get appropriate and suitable knowledge of finance, accountants and HR department which will be the best experience of my future profession.
1.3 Limitations of the report
Being an internee I would like to mention few areas of hurdles faced by me throughout my internship. I challenged many problems in gathering new and exact information which are as follows.
• Due to very limited period of time it was quite difficult for me to get sufficient knowledge about bank and its activities during internship program.
• Due to privacy and bank of matter, bank officers did not answer the amount of questions.
• Due to time limitations I could not gather more information that justifies the purpose of my internship.
• The moral knowledge links to the records of accounts which may have been helpful for my studies are not provided.
• The information about finance department which is my major subject was not provided properly.
1.4 General Description of organization
Meezan bank limited is the Pakistan's first largest Islamic bank and it is also the one of fastest growing financial institutions in the banking sector of the country. With its vision of establishing banking as first choice-the bank commenced operations in 2002, after being issued the first-ever Islamic commercial banking licensed by the state bank of Pakistan.
Meezan bank is Pakistan's first and the largest dedicated Islamic bank with 571 branches in more than 140 cities across Pakistan with widest range of Halal banking products internationally based on Shariah board. This is milestone that is not only the success story of Meezan bank but also the continuing success story of Islamic bank in Pakistan. The bank is headquartered in Meezan-house Karachi Pakistan. Meezan bank is publicly listed company with paid-up capital of Rs 10 billion.
Meezan bank limited is not involved in unethical investment like alcohol, gambling etc, as a Islamic bank it doesn't deal with interest and there are no hidden policies in Meezan bank. There are many departments working in bank but main department is PDSC (product development and Shariah compliances) department which is the core department of Islamic bank based on Islamic principles. The Meezan bank provides only Debit card and it does not offers credit card to its customers because credit card is based on interest charges that is against the Islamic policies.
The bank operates strictly under the principles of Islamic Shariah and is well- recognized its products development capability, Islamic banking research and advisory services. Meezan bank offers the wide range of Shariah-compliant banking products and services to its customers both retails and business. The services that banks offer are ATM banking, internet banking, VISA and master card, Debit card, SMS banking, SMS alerts, Mobile banking applications and utility bills payments through ATM and internet banking.
At Meezan bank, they believe in adding value to their customer's lives and businesses through dynamic and competitive products and services that fulfill their needs while conforming completely to the dictates of Shariah.
MANAGEMENT AND ORGANIZATION STRUCTURE
2.1 Operational structure
The operational structure of MBL operates the different departments of branch. Operational manger observes all the departments of operation properly.
The different operational departments are
• Commercial banking Division
• Credit management Division
• Financial control & Audit Division
• Banking operations Division
• Consumer banking & liabilities Division
• HR& IT Division
The objective of MBL is to inculcate banking habits among the people to mobilize their savings, and to provide the remittance facility to almost all major cities. The aims of MBL are to fulfill its prime objective of providing its customers accessibility and convenience, within the Shariah based principles and culture of fearless services and recognition of their needs. The main objective is to develop committed service culture which establishes the consistent delivery of our products and services within the highest quality services based on Shariah principles by promoting Islamic values and quality of banking experience to our customers.
Establish Islamic banking as banking of first choice to facilitate the implementation of an equitable economic system, by providing a strong foundation for establishing a fair and just society for mankind.
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.
2.5 Core values
• Higher standards of Shariah compliances
• Superiority in services
• Socially responsible
• Staff is committed
• Staff is motivated and professionally trained and who are emphatic to their customer's needs.
The management is the act or skill of controlling and making decisions about its departments. MBL has excellent management system and the staff of MBL is professionally trained and gives first priority to its customers. All the management of MBL performs its task effectively and efficiently. MBL have centralized management in which all the decisions are taken by top level management.
Managing committee of MBL include
1. H.E. Sheikh Ebrahim Bin khalifa AL-khalifa (Chairman)
2. Naser Abdul Mohsen Al-Marri (Vice Chairman)
3. Irfan Siddiqui (president&CEO)
4. Arif-ul-Islam (chief operating officer)
5. Dr. Muhammad Imran Ashraf Usmani (Shariah Advisor)
6. Ma'am Salma Seikh (Operational manager)
7. Muhammad Abdullah Ahmed (treasury and financial institution)
8. Mr. Zia ul Hassan (Group Head Internal Audit)
9. Mr. Irfan Ali Hyder (Group Head Human Resource Department)
10. Mr. Muhammad Raza (Group Head Consumer Banking)
2.7 General organizational chart
DEPARTMENTS AT BRANCH
3.1 General Departments
MBL has following General departments
1. PDSC (Product Development Shariah Compliances)
2. Account opening Department
3. Human resource Department
4. Sales Department
5. Finance Department
6. Risk management Department
7. Administration Department
3.2 Departments at branch
1. Cash Department
2. Clearing Department
3. Remittances Department
4. Service quality Department
5. Accounts Department.
3.3 Descriptions of Departments at branch
3.3.1 Cash Department
The most important department of MBL is the cash department. It receives cash from customers and then deposits it into the accounts of the customers and maintained their balances. The cash department deals with the holding of cash money or currency. Cash department receives cash from depositors and make the payment to checque holder. The checque book is a security document which can be used when the customers want to draw money.
3.3.2 Clearing Department
Clearing department of MBL deals with the collections of checque and processing these checque. The receiving the checque and making payments and majority involves is the clearing process. Clearing house is the place where cheques are presented, collected from bank branch it is one of the services provided by NIFT ( national institution facilitation technology) of commercial banks.
Two types of clearing
• Outward clearing
• Inward clearing
The checque of other banks which are deposited in MBL are called outward clearing. After clearing these checque through NIFT by the other banks on which these are drawn.
The checque of MBL are deposited in other bank and these checque are sent to us for verification, they debit the checque of our client after verification of their account.
3.3.3 Remittances Department
The remittance department of MBL helps customers to transfer the funds from one bank to another bank and from one place to another place. In this department the collection of checque takes place. This department of MBL transfers money from one place to another place by way of payment order, demand draft, inward collection, outward collection. The MBL makes payment of only open checque at the counter.
3.3.4 Services quality Department
In services quality department of MBL there are many service quality officers who visit branch surprisingly to check service quality of branch and also check that customers are receiving the good quality of services or not and all these services are checked by the service quality department. In service quality department the MBL work under the defined operational procedures which are constantly reviewed and monitored through service quality department. The service quality department is in place to review and report the branch activity and results to support branch staff in ensuring delivery of pleasant and professional banking experience to its customers.
3.3.5 Accounts Departments
A healthy and friendly banker-customer relationship is the most important; this is done when customers open an account in bank. Both the parties help to serve the society and economy to expand. An account is the backbone of the bank. This department involved in preparation of financial statements, calculation of profit and loss, preparation of different type of reports of bank etc. Accounts department of MBL offers the wide range of accounts such as
• ASAN account (current, saving)
• Meezan Kids club account
• Meezan teens account
• Premium account
• Partnership account
• Sole proprietorship account
• Meezan Bachat account
SERVICES AND TYPES OF CUSTOMERS
4.1 Services of MBL
Following are the main services of Meezan bank limited
• SMS banking
• Online banking
• Mobile banking
• Internet banking
• MeezanVisa Debit card
• Meezan quick pay
• SMS alerts
4.1.1 SMS banking
MBL offers the SMS banking to its customers an attractive service that allows customers to access their account on demand anytime, anywhere from their mobile phone. It's not only simple and easy but also free to use. It is the simplest way for customers to check their account balance or see the last transactions of their accounts are the Meezan bank SMS banking. The most unique feature of this SMS banking service is that customers can also temporarily activate or deactivate their Meezan bank's debit card just by sending SMS.
4.1.2 Online banking
Meezan bank provides this service to facilitate all customers to access their account and conduct their banking record from any of Meezan bank's branches nationwide. Meezan bank does not take charge of this service and offers free online banking service on all PAK rupee accounts to its clients. Through this service customers can deposit and collect of clearing cheques drawn within the same city.
4.1.3 ATM (Automatic teller machine)
These are modern banking tools that provide the unique facility for customers to withdraw their cash at late hours in the case of emergency. MBL offers ATM service through nationwide network of over 352 ATMs located at branches and also at prominent off-site locations across the country. In Meezan bank's ATM network allows its customers to withdraw cash using any 1-link branded ATM card.
4.1.4 Mobile banking App
MBL design the mobile banking App for its customers on the move, the app is available to download through Google play store and also from Apple App stores. This app relies on high-security procedure to protect customer's privacy and financial information from login to logout. The app allows customers to view accounts, pay bills; top-up mobile phone credits, and transfers the funds in fast and easy by using this app.
4.1.5 Internet banking
MBL offers customers a smarter way to bank through its internet banking service, by providing customers global access to their accounts 24 hours a day, 7 days in a week. Through this service customers can view their account statement and real time checque status and stop payment request. This internet banking facility offers the wide range of features such as payment of utility bills with quick pay service, funds transfer facility, check the status of checques etc.
MBL provides lockers to its customers for safekeeping valuable documents at cheaper rates. This service is available in three sizes at designated branches. These are small, medium, and large size of lockers. They are usually used for keeping the Gold, cash and documents safe and secure.
4.1.7 Meezan Visa Debit card
Meezan Visa Debit card provides convenience service to customers to access their money anytime and anywhere, at all outlets and ATMs displaying the Visa symbol. This Visa Debit card is accepted at more than 30 million outlets. Through this Meezan bank Visa Debit card customers have access to the money in their account wherever they are, whenever they want.
4.1.8 Meezan quick pay
This service allows customers to pay utility bills, mobile phone bills, and top-ups through Meezan bank's ATMs, internet banking, and mobile app meaning that customers have no longer to wait to pay these bills.
4.1.9 SMS alerts
MBL SMS service keeps customers informed about activities in their accounts and enabling them to keep track of their money transaction 24/7. SMS alerts will provide details about transactions and what balance you have in your account, once the clients agree to accept SMS alerts, he/she will get the SMS whatever the point there is the debit or credit transaction in their account.
7.1 Customers of MBL
• Company owners
• Joint stock companies
• Illiterate person
• Salary person
5.1 Working conditions and functions
Duration of my internship program was 6 weeks through Monday to Friday from 9.00 am to 4.00 pm. I was learned about different departments of MBL named cash department and accounts department, where I was experienced that how bank employees will help customers for opening an account. As I was learned about these departments and I have observed that how they use their experience, knowledge, information and stand towards their customers' needs and try to solve their problem during these six weeks. I also came to know how the staff of MBL is responsible towards their work and make good relations to their clients.
My daily activities include
• Fill deposit slips for customers
• Fill account opening form for customers
• Fill ATM form for customers
• Write checks for customers if asked
• Received check books/ ATM cards on daily basis
5.2 Difficulties and Challenges
During of my internship program some difficulties and challenges which I faced are
• Lack of motivation
• Less information is shared with internee
• Supervisors forgot that I am new to the field
• Lack of communication
• Lack of appreciation
• Unsatisfactory due to delivery of work
• Not allowed to use system.
Ma'am Salma sheikh is my supervisor and she is the operational manager of MBL at Autobahn branch Hyderabad.
5.4 Internship Tasks
The practical experience which I got from MBL by performing all the activities during my internship has really helpful for my knowledge and these activities build my interest of doing job as a banker in future after compellation of my BBA.
• How banking system works
• Arrange files and documents.
• Management of bank environment
• Understand the difference between Islamic bank and conventional bank.
• Duties of departments
• Account opening forms.
• Record keeping system of banks
• Behavior of staff members with customers.
5.5 Working tools
• Deposit slips
• Clearness certificates
• Advanced system
• Transfer slips
• ATM/account opening form
5.6 comparison between theory and practice
Things learned at university level and in bank somehow vary, but the way of learning and experience was different, when it comes to implement the concept as some banks goes to the advanced level procedure. Working in an organization is to deal with customers at a practical level is different from learning in university.
AN ASSESSMENT OF THE INTERNSHIP
6.1 skills and qualifications
Internship experience builds my professional skills such as
• Communication skills
• Time management
• Learning skills
• Technical skills
• Work under pressure
• Internship taught me how to deal with customers
During my internship period my supervisor gave me the responsibility to observe how bank officers deal with their customers and how they fulfill their needs, and additionally my duty is that if any customer came in bank for deposit purpose I helped them to fill their deposit slips. I also made the entries of new debit cards and cheques of customers in register on daily basis.
6.3 Internship influence future career plans
After gained the experience of 06-weeks internship at MBL, that internship program will affect my upcoming career procedure in different ways. Internship is a method to check effort potential works and realize different career job options. Internship provides me the building blocks which I need for my future career. Internship gives me the opportunity to meet professionals and interacting with them to gain the new connections and learn how to communicate in a professional environment.
6.4 Internship activities correlate with your classroom knowledge
In class, we only memorize things but in internship we practically implement those things. An internship can help shape our career route, expand our professional network, and build my resume strong, and strengthen our chances of securing a good job after graduation. The theories that we learned in class room are very different from performing the practical work in bank that affects our knowledge. Through internship I apply my class room learning in real world setting.
6.5 Internship meet my expectations
Yes internship meets my expectations because I gain lot of knowledge about banking activities and I learn more about the different departments of the bank. My experience of internship in MBL is very positive experience as it has helped me to understand about the structure, functions, products and services of MBL. The staff of MBL was very cooperative and supportive they helped me to learn about the functions of Islamic bank.
6.6 Main challenges and difficulties
• I was not allowed to work in every department due to secrecy of bank.
• Less information is shared with me.
• Not allowed to use PC's of bank
• Face problem while doing manual work.
6.7 Relationship with internship supervisor and colleagues
My supervisor Ma'am Salma sheikh was very supportive and she guides me lots of things about the Islamic bank. I found the overall staff was very positive and supportive. The overall atmosphere of the branch was friendly and warm, making it pleasant experience for me.
CONCLUSIONS AND RECOMMENDATIONS
My internship report is totally around the Meezan bank limited Autobahn branch Hyderabad, which is one of the pioneer Islamic bank of Pakistan with 571 branches nationwide. I had the opportunity to work with one of the leading Islamic bank of Pakistan. I spent six weeks of my internship in MBL, during these days I felt myself to be a part of the bank.
MBL is truly the HALAL and RIBA free the largest Islamic bank of Pakistan, within a short span of years MBL has successfully achieved all its targets, and also achieved a reputable position in the market. MBL continuously achieve to strive for excellence and reputation of being a Islamic, truly innovative and customer-focused bank providing highest level of satisfactions and services to its customers.
This was my first experience of working in bank, but I learned lots of things from this experience. After working as an internee with a period of six weeks, I have conclude that working in MBL as an internee was completely wonderful opportunity for me and a knowledge gaining experience. During my internship period in MBL I have studied the work of different departments and also know about the products and services of MBL offered to its customers.
Working at MBL was good decision for me because all staff members of MBL were very cooperative friendly and helpful in providing the information about their products and services and gave really good information about their departments working in branch that are helpful for my future career. Working at MBL gave me the confidence and knowledge about banking in practical means.
7.2 General observations
My general observations during my internship program at the bank was
• There is Lack of awareness of Islamic banking in general public
• MBL increases its branches so fast but the business of MBL many not increase with same speed.
• Branch of MBL was very short and congested waiting room for customers.
• There is no proper job training programs for employees.
• Staff of MBL was very cooperative and helpful.
During my internship program the following recommendations I give accordingly due to the different analysis and observations that was carried out.
• MBL should needs to improve it website, because more information relating to the bank and performance of their functions are not available on website.
• In today's current position MBL should penetrate further and capture various corporate customers as well as retail customers by expanding their networks.
• MBL should have a separate marketing department. They should advertise their products through media such as radio, television, and banners.
• I would like to suggest that the MBL should pursue a very strong marketing and advertising strategy so that it can create awareness in the public about Islamic bank and its Islamic products and services.
• MBL should arrange the training sections for the new employees, because the job training is a very important aspect for employees that MBL is lacking in.
• To increase the size of branches as it is little bit congested.
• MBL has an option to it increase its customer ratio through efficient marketing system.
• The employee should be given sense of teamwork and the managers should be trained to manage the team as a good leader.
• New schemes should be introduced and maximum facilities should be given to customers, so that to win money market.
I used following references to prepare my reports
• The very important source where I collected data for my report is official website of Meezan bank ( www.meezan.bank.com.pk).
• Pamphlet and brochures of different products and services.
• I got help from operational manager of MBL.
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