Annual Report 2009 - Meezan Bank

Charity
During the year, an amount of Rs. 51.170 million was transferred to the Charity account and an amount of Rs. 14.605
million was disbursed after the approval of the Shariah Advisor. Details of charity are available in note # 18.4 1 . Moreover,
as per the directive of SSB a charitable foundation by the name of Ihsan Trust has been established to ensure effective
utilization and disbursement of charity funds.
Recommendations
Based on the review of various transactions, it is recommended that:
n For the placement of excess liquidity, the Bank shall explore new avenues of investment instead of only relying on the
Commodity Murabaha transactions. Furthermore, the Bank should explore doing Commodity Murabaha transactions
through the Commodity Exchange.
n In view of the growing branch network and induction of new employees, the Bank should continue its focus on employees
training related to Islamic banking products and services offered by the Bank with specific focus on front-line staff.
n The Corporate, Commercial & SME department and all Regions of the bank shall organize special training workshops
for the executives of their financing clients and continue the practice of conducting customer awareness seminars.
n The Bank should try to initiate execution of Musharakah transactions using the approved models of Running Musharakah
facility and transaction-based Musharakah with its customers.
n In the area of retail banking, new deposit schemes that could give higher returns and added benefits to lower income
segments and senior citizens shall be introduced.
n Efforts should be made to implement Islamic Microfinancing schemes in Pakistan.
n It is recommended that for residential area branches, separate Women-banking counters should be established to
facilitate female customers and arrangements should be made to ensure minimal interaction of female staff with male
customers at the branches.
n To strengthen the Shariah-compliance framework in the bank, the scope of external audit shall also include the review
of bank's activities in light of the guidelines given by the Shariah Supervisory Board, Shariah Advisor, PDSC and SBP
guidelines for Shariah compliance issued from time to time.
Conclusion
As per the charter of the Bank, it is mandatory on all of the management & employees to ensure application of Shariah
principles and guidelines issued by the Shariah Supervisory Board and Shariah Advisor and to ensure Shariah-compliance
in all activities of the bank. The prime responsibility for ensuring Shariah-compliance of the Bank's operations thus lies
with the management.
Based on the extensive reviews of sample cases for each class of transaction, related documentation, processes, the profit
distribution mechanism for the depositors and management's representation made in this regard, in our opinion, the affairs,
activities and transactions, performed by the bank during the year comply with the rules & principles of Islamic Shariah
in light of the guidelines and directives given by the Shariah Supervisory Board, Shariah Advisor of Meezan Bank and
SBP guidelines related to Shariah-compliance. The non-compliant income identified during the review is being transferred
to the charity account.
May Allah bless us with the best Tawfeeq to accomplish His cherished tasks, make us successful in this world and in the
Hereafter, and forgive our mistakes.
Wassalam Alaikum Wa Rahmat Allah Wa Barakatuh.
Dr. Muhammad Imran Usmani
Member Shariah Supervisory Board & Shariah Advisor
Dated: Safar 09, 1431 H / January 25, 2010 AD
1 For details see “Utilization of Charity Fund”
Annual Report 2009
41