Project Of FinanceProject Of FinancePresented to:Presented to:

Sir Ghulam MustafaSir Ghulam Mustafa

Presented by:Presented by:

Mirza Ali Raza Mirza Ali Raza 9090

M. Jaffar Tayar M. Jaffar Tayar 4848

Syed Hussain Zain ul Abiden GardeziSyed Hussain Zain ul Abiden Gardezi 8585

Syed Ali Kamran AbidiSyed Ali Kamran Abidi 5050

BANK DEFINITION:

"Banks are institution that enjoys the public money doing nothing for the public".

Banker Banker includes a body of person whether

incorporated or not who carry on business of banking

“Banks are the guardian & distributor of money”

MCB is one of the leading banks of Pakistan with a MCB is one of the leading banks of Pakistan with a deposit base of about Rs. 280 billion and total assets of deposit base of about Rs. 280 billion and total assets of around Rs.300 billion. Incorporated in 1947, MCB around Rs.300 billion. Incorporated in 1947, MCB soon earned the reputation of a solid and conservative soon earned the reputation of a solid and conservative financial institution managed by expatriate executives.  financial institution managed by expatriate executives.  In 1974, MCB was nationalized along with all other In 1974, MCB was nationalized along with all other private sector banks.  This led to deterioration in the private sector banks.  This led to deterioration in the quality of the Bank’s loan portfolio and service quality of the Bank’s loan portfolio and service quality.  Eventually, MCB was privatized in 1991.  quality.  Eventually, MCB was privatized in 1991. 

Vision StatementVision Statement

Challenging and Changing the Way you Bank. Challenging and Changing the Way you Bank.

Mission StatementMission Statement

MCB Bank’s team of committed professionals is MCB Bank’s team of committed professionals is dedicated to maintaining long term customer dedicated to maintaining long term customer relationships through outstanding service and relationships through outstanding service and convenience.convenience.

ACCOUNTSACCOUNTS Current AccountCurrent Account Saving AccountSaving Account MCB’s Rupee Savings account is the most convenient way to manage your MCB’s Rupee Savings account is the most convenient way to manage your

savings.savings. Term DepositTerm Deposit Basic Banking AccountBasic Banking Account This product has been introduced to facilitate the low income group as This product has been introduced to facilitate the low income group as

well as the existing account holders who wish to convert their regular well as the existing account holders who wish to convert their regular savings or current account into Basic Banking Account.savings or current account into Basic Banking Account.

Khushali Bachat Account:Khushali Bachat Account: Similar to saving account interest rate of 1%. Standard markup rate Similar to saving account interest rate of 1%. Standard markup rate

20%.20%. CIF record in the State Bank Of Pakistan. CIB (Credit Information CIF record in the State Bank Of Pakistan. CIB (Credit Information

Bureau).Bureau).

Basic Banking AccountBasic Banking Account This product has been introduced to facilitate the low income group as This product has been introduced to facilitate the low income group as

well as the existing account holders who wish to convert their regular well as the existing account holders who wish to convert their regular savings or current account into Basic Banking Account.savings or current account into Basic Banking Account.

The Basic Banking Account is a current account and can be opened with a The Basic Banking Account is a current account and can be opened with a minimum initial deposit of Rs. 1000/- only. Account holders will be minimum initial deposit of Rs. 1000/- only. Account holders will be allowed 2 deposit transactions (either cash or through clearing) and 2 allowed 2 deposit transactions (either cash or through clearing) and 2 withdrawals (cash or clearing) each month. All customer-initiated withdrawals (cash or clearing) each month. All customer-initiated transactions over and above this limit will be charged a transaction fee. transactions over and above this limit will be charged a transaction fee. However unlimited free of charge cash withdrawals are allowed through However unlimited free of charge cash withdrawals are allowed through MCB's own ATMs.MCB's own ATMs.

There will be no minimum balance maintenance requirement, and hence no There will be no minimum balance maintenance requirement, and hence no monthly account maintenance charges will apply.monthly account maintenance charges will apply.

Loans:Loans:

1)Cash Finance:(13%)1)Cash Finance:(13%) this loan is given upto 20 million. Basically for the crop season for cotton and this loan is given upto 20 million. Basically for the crop season for cotton and

wheat. Cotton dealers mill owners. Kibor ( Karachi inter bank offer rate).wheat. Cotton dealers mill owners. Kibor ( Karachi inter bank offer rate). On the basis of volume of business and operations of business.On the basis of volume of business and operations of business. It is renewed after 1 year.It is renewed after 1 year. 2)Running Finance:(15%)2)Running Finance:(15%) Account holder in which 6 months installments.Account holder in which 6 months installments. Security: Prime security is property and collateral Security: Prime security is property and collateral 3)Demand Finance:(10%)3)Demand Finance:(10%) Its not necessary to be an account holder. Most liquid security are the certificates. Its not necessary to be an account holder. Most liquid security are the certificates.

The DSC ( Defense Saving Certificate) whose value increases with the time.The DSC ( Defense Saving Certificate) whose value increases with the time. Regular income certificate.Regular income certificate. Project Finance:Project Finance: Fixed investment. New project may be a new plant or machinery. Fixed investment. New project may be a new plant or machinery.

Apna Ghar Pyara Ghar Apna Ghar Pyara Ghar

MCB Pyara Ghar now provides you with all you want as you can renovate your existing home, buy or construct a dream house that you always envisioned for you and your family. After all, "Apna Ghar... Pyara Ghar"

Financing up to Rs 20 millionFinancing up to Rs 20 million Financing Tenures from 2 to 20 yearsFinancing Tenures from 2 to 20 years Equal monthly installments.Equal monthly installments. Loans up to 80% of the value of your house or Loans up to 80% of the value of your house or

flatflat

MCB  CAR4UMCB  CAR4U

Kahin na Kahin tau Hai 1 Car 4 YouKahin na Kahin tau Hai 1 Car 4 You MCB Car4U can give you all ... MCB MCB Car4U can give you all ... MCB

Car4U through its flexibility, affordability, Car4U through its flexibility, affordability, speed and other special benefits makes you speed and other special benefits makes you keep up with the fast pace of life ... because keep up with the fast pace of life ... because we know Kahin na Kahin tau Hai.. 1 we know Kahin na Kahin tau Hai.. 1 Car4U.Car4U.

Financing up to Rs. 20 lacsFinancing up to Rs. 20 lacs Financing tenures from 1 to 7 years Financing tenures from 1 to 7 years Only up to 10% down payment Only up to 10% down payment Equal monthly installments. Equal monthly installments. Currently available in 16 major cities: Currently available in 16 major cities:

Karachi, Lahore, Faisalabad, Rawalpindi, Karachi, Lahore, Faisalabad, Rawalpindi, Islamabad, Quetta, Multan, Peshawar, Islamabad, Quetta, Multan, Peshawar, Hyderabad, Sialkot, Gujrat, Gujranwala, Hyderabad, Sialkot, Gujrat, Gujranwala, Sargodha, Mirpur (AJK), Jhelum, SahiwalSargodha, Mirpur (AJK), Jhelum, Sahiwal

Meezan Bank Limited is a publicly listed company Meezan Bank Limited is a publicly listed company first incorporated on January 27, 1997. It started first incorporated on January 27, 1997. It started operations as an investment bank in August of the operations as an investment bank in August of the same year. In January, 2002 in an historic initiative, same year. In January, 2002 in an historic initiative, Meezan Bank was granted the nation's first full-Meezan Bank was granted the nation's first full-fledged license dedicated to Islamic Banking, by the fledged license dedicated to Islamic Banking, by the State Bank of Pakistan.State Bank of Pakistan.

Our VisionOur Vision

Establish Islamic banking as banking of first Establish Islamic banking as banking of first choice to facilitate the implementation of an choice to facilitate the implementation of an equitable economic system, providing a strong equitable economic system, providing a strong foundation for establishing a fair and just foundation for establishing a fair and just society for mankind.society for mankind.

Our MissionOur Mission

To be a premier Islamic bank, offering a one-To be a premier Islamic bank, offering a one-stop shop for innovative value added products stop shop for innovative value added products and services to our customers within the and services to our customers within the bounds of Shariah, while optimizing the bounds of Shariah, while optimizing the stakeholders value through an organizational stakeholders value through an organizational culture based on learning, fairness, respect for culture based on learning, fairness, respect for individual enterprise and performance.individual enterprise and performance.

Deposit Schemes:Deposit Schemes:

1.Saving Account1.Saving Account

2. Current Account2. Current Account

3. Karobari Munafa Account3. Karobari Munafa Account

4.Riba-Free Meezan Bachat Account4.Riba-Free Meezan Bachat Account

The Riba-Free Meezan Bachat Account works under The Riba-Free Meezan Bachat Account works under the principles of Mudarabah and is strictly in the principles of Mudarabah and is strictly in conformity with the rules of Islamic Shariah. conformity with the rules of Islamic Shariah.

On agreeing to become an account holder, the On agreeing to become an account holder, the customer enters into a relationship based on customer enters into a relationship based on Mudarabah with Meezan Bank. Under this Mudarabah with Meezan Bank. Under this relationship, the customer is an Investor (Rab ul relationship, the customer is an Investor (Rab ul Maal), and the Bank is the Manager (Mudarib) of the Maal), and the Bank is the Manager (Mudarib) of the funds deposited by the customer.funds deposited by the customer.

The Riba-Free Meezan Bachat Account works under The Riba-Free Meezan Bachat Account works under the principles of Mudarabah and is strictly in the principles of Mudarabah and is strictly in conformity with the rules of Islamic Shariah. conformity with the rules of Islamic Shariah.

On agreeing to become an account holder, the On agreeing to become an account holder, the customer enters into a relationship based on customer enters into a relationship based on Mudarabah with Meezan Bank. Under this Mudarabah with Meezan Bank. Under this relationship, the customer is an Investor (Rab ul relationship, the customer is an Investor (Rab ul Maal), and the Bank is the Manager (Mudarib) of the Maal), and the Bank is the Manager (Mudarib) of the funds deposited by the customer.funds deposited by the customer.

Car Ijarah:Car Ijarah:

Car is leased under the name of the bank. Transfer of Car is leased under the name of the bank. Transfer of ownership at the clearance of principal amount and ownership at the clearance of principal amount and rent. No objection certificate.rent. No objection certificate.

Security deposit is 15 %. 5% is the processing Security deposit is 15 %. 5% is the processing charges on purchase of additional units.charges on purchase of additional units.

If car is damaged no payment is given. If the car is If car is damaged no payment is given. If the car is stolen then the installment is stopped.stolen then the installment is stopped.

Time period for which the car is offered are 3, 4 and 5 Time period for which the car is offered are 3, 4 and 5 years. Accordingly the rate of rent is calculated. years. Accordingly the rate of rent is calculated. IRR( International rate of rent).IRR( International rate of rent).

Rent is paid on the monthly bases.Rent is paid on the monthly bases.

Car Ijarah, Pakistan’s First Islamic Car Ijarah, Pakistan’s First Islamic Car FinancingCar Financing

Car Ijarah is Pakistan’s first Interest Free car financing Car Ijarah is Pakistan’s first Interest Free car financing based on the Islamic financing mode of Ijarah (Islamic based on the Islamic financing mode of Ijarah (Islamic leasing). This product is ideal for individuals looking for leasing). This product is ideal for individuals looking for car financing while avoiding an interest-based transaction. car financing while avoiding an interest-based transaction.

Meezan Bank’ Car Ijarah is a car rental agreement, under Meezan Bank’ Car Ijarah is a car rental agreement, under which the Bank purchases the car and rents it out to the which the Bank purchases the car and rents it out to the customer for a period of 3 to 5 years, agreed at the time of customer for a period of 3 to 5 years, agreed at the time of the contract. Upon completion of the lease period the the contract. Upon completion of the lease period the customer gets ownership of the car against his initial customer gets ownership of the car against his initial security deposit.security deposit.

Key Features of Car IjarahKey Features of Car Ijarah No application feeNo application fee Ease of acquiring any new locally assembled Ease of acquiring any new locally assembled

carcar No upfront Insurance PaymentNo upfront Insurance Payment No advance RentalNo advance Rental Available in tenures of 3, 4 and 5 yearsAvailable in tenures of 3, 4 and 5 years Minimum security deposit as low as 15%Minimum security deposit as low as 15%

Diminishing Musharka:Diminishing Musharka:

The type of partnership which eliminates with the passage of The type of partnership which eliminates with the passage of time. As the partner buys the share of the firm.time. As the partner buys the share of the firm.

House finance and Project finance.House finance and Project finance. Sitara textile mill.Sitara textile mill. Car rent. Car rent. LGS.LGS. Nishat School.Nishat School. Bakhtawar Amin Memorial Trust.Bakhtawar Amin Memorial Trust. Transfer of ownership after the completion of the project. Transfer of ownership after the completion of the project.

Maximum time is 7 years. 1 year grace period for construction Maximum time is 7 years. 1 year grace period for construction and working of a project.and working of a project.

Murabaha:Murabaha:

Customer is the agent of the bank. Commodity Customer is the agent of the bank. Commodity purchase, Raw Material (lucky cement)purchase, Raw Material (lucky cement)

““Do not give cash to the customer”. Give tax Do not give cash to the customer”. Give tax invoice.invoice.

Security:Security: Bank act as retailer. Repayment is single Bank act as retailer. Repayment is single

installment. Deferred payments in max. 180 installment. Deferred payments in max. 180 days and min. 9 days.days and min. 9 days.

Why is Halal home finance so important to you? Why is Halal home finance so important to you? Owning your own home is one of life’s most important Owning your own home is one of life’s most important achievements. It represents your security, stability, and is a achievements. It represents your security, stability, and is a great blessing in itself. It provides that all-important safety and great blessing in itself. It provides that all-important safety and comfort for you and your loved ones. comfort for you and your loved ones.

However, in today’s often unpredictable and costly However, in today’s often unpredictable and costly environment, saving the required money can take a lifetime in environment, saving the required money can take a lifetime in itself. Rising property prices, taxes, inflation, currency itself. Rising property prices, taxes, inflation, currency devaluation… it’s all a very hard bargain. On the other hand, devaluation… it’s all a very hard bargain. On the other hand, owning your own home and paying an easy installment, which owning your own home and paying an easy installment, which takes you step by step towards complete ownership, is so takes you step by step towards complete ownership, is so much better than paying rent which ultimately only adds to much better than paying rent which ultimately only adds to your expenses.your expenses.

Islamic Financing on a Diminishing Musharakah Islamic Financing on a Diminishing Musharakah basis basis WithWith Easy Home Easy Home you participate with Meezan Bank you participate with Meezan Bank in a joint ownership of your property, where the Bank in a joint ownership of your property, where the Bank will provide a certain amount of financing (usually up will provide a certain amount of financing (usually up to 85%). You agree to a monthly payment to the bank to 85%). You agree to a monthly payment to the bank of which a component is for the use of the home, and of which a component is for the use of the home, and another for your equity share. In fact, the total another for your equity share. In fact, the total monthly payment is reduced regularly as your share monthly payment is reduced regularly as your share in the property grows. When you have made the full in the property grows. When you have made the full investment, which had been agreed upon, you investment, which had been agreed upon, you become the sole owner with a free and clear title to become the sole owner with a free and clear title to the property. the property.

Easy Buyer Easy Buyer Flexible financing from PKR 300,000/- to PKR 40 Flexible financing from PKR 300,000/- to PKR 40

million million Easy selection of financing tenure from 3 years to 20 Easy selection of financing tenure from 3 years to 20

yearsyears Bank Investment Ratio (BIR)Bank Investment Ratio (BIR)   Up to 85% for Salaried / Up to 85% for Salaried / Select SEPSelect SEP* * Up to 70% for Businesspersons & Self Employed Up to 70% for Businesspersons & Self Employed

Professionals Professionals Up to 75% for Non-Resident Pakistanis (NRP) Up to 75% for Non-Resident Pakistanis (NRP) No restriction on early unit purchase / early No restriction on early unit purchase / early

terminationtermination

Easy BuilderEasy Builder Easy Builder is a comprehensive proposition that contains:Easy Builder is a comprehensive proposition that contains: 1Residential construction on applicant’s owned land 1Residential construction on applicant’s owned land

2Purchase of land & residential construction 3Enhancement of 2Purchase of land & residential construction 3Enhancement of an already constructed residential bungalow an already constructed residential bungalow FeaturesFeatures  

Flexible financing from PKR 300,000/- to PKR 40 millionFlexible financing from PKR 300,000/- to PKR 40 million Easy selection of financing tenure from 2 years (excluding Easy selection of financing tenure from 2 years (excluding

construction period of max 12 months) to 20 yearsconstruction period of max 12 months) to 20 years Bank Investment Ratio (BIR)Bank Investment Ratio (BIR)   Up to 70% for Salaried /Up to 70% for Salaried /Select Select SEPSEPs*/Self Employed s*/Self Employed

Professionals/Businessman Professionals/Businessman Up to 75% for Non-Resident Pakistanis (NRP) Up to 75% for Non-Resident Pakistanis (NRP) No restriction on early unit purchase / early terminationNo restriction on early unit purchase / early termination

Easy RenovateEasy Renovate_â_â

Flexible financing from PKR 150,000/- to Flexible financing from PKR 150,000/- to PKR 1.0 millionPKR 1.0 million

Easy selection of financing tenure from 2 Easy selection of financing tenure from 2 years up to a maximum of 7 years years up to a maximum of 7 years

Up to 50% for Salaried /Up to 50% for Salaried /Select Select SEPSEPs*/ Self s*/ Self Employed Professionals / Businessman / Non-Employed Professionals / Businessman / Non-Resident Pakistanis (NRP) Resident Pakistanis (NRP)

Easy ReplaceEasy Replace Transfer your existing mortgage!You can now continue to Transfer your existing mortgage!You can now continue to

enjoy your home, but with the added satisfaction and peace of enjoy your home, but with the added satisfaction and peace of mind you always wanted. Meezan Bank will help you switch mind you always wanted. Meezan Bank will help you switch your existing liability over to us and let you enjoy the benefits your existing liability over to us and let you enjoy the benefits of Halal and totally flexible financing.of Halal and totally flexible financing.

FeaturesFeatures   Flexible financing from PKR 300,000/- to PKR 40 millionFlexible financing from PKR 300,000/- to PKR 40 million Easy selection of financing tenure from 3 years to 20 yearsEasy selection of financing tenure from 3 years to 20 years Bank Investment Ratio (BIR)Bank Investment Ratio (BIR)   Up to 85% for Salaried /Up to 85% for Salaried /Select Select SEPSEPs*/Self Employed s*/Self Employed

Professionals/Businessman Professionals/Businessman Up to 75% for Non-Resident Pakistanis (NRP) Up to 75% for Non-Resident Pakistanis (NRP) No restriction on early unit purchase / early terminationNo restriction on early unit purchase / early termination

Musharaka:According to this concept, a financier and his client participate either in the joint ownership of a property or an equipment, or in a joint commercial enterprise. Musharka is the partnership. The profit is shared among the bank and the customer with which there is a partnership agreement.

In commercial banking a fixed interest rate is offered to customer after depositing a certain amount of money.

In islamic banking the rate of profit (surplus on deposit)depends on the profit which the particular bank earns means that there is not fixed percentage of the profit rate.

In commercial banking if a customer has deposit below than 10,000 in certain accounts( ) the 50 Rs. is deducted from balance as charges and are included in bank profit & loss statement.

In islamic banking if a person has output balance below than 10,000 in certain accounts( ) 50 Rs. is also deducted but not included in profit & loss statement and goes to charity institutions.

Islamic Banks do not give cash directly to the customers and it provides funds for commodities.