Akeel Hussain 11022720-130

MCB
INTERNSHIP REPORT ON MUSLIM COMMERCIAL BANK LIMITED

Internship Report submitted to the Faculty of Management & Administrative Sciences in Partial Fulfillment of the Requirements for the Degree of Master of Business Administration
By: Akeel Hussain M.B.A. (Finance) Roll no. 11022720-130 Session: 2011 2015
University of Gujrat
Date of Submission: 22-01-2013 Name of Program Coordinator_________________ Signature of Program Coordinator______________
Akeel Hussain 11022720-130
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MCB
ACKNOWLEDGEMENT
All praise to Almighty Allah, the most merciful and compassionate, who give me skills and abilities to complete this report successfully I am grateful to my parents who are always been a source of encouragement for me throughout my life and from start to the end of this report I am thankful to all my staff members so Muslim commercial Bank Road Chamber of commerce & Industry Branch, Sialkot. I found every one very co-operative and helpful for providing me the Theoretical as well as practical knowledge about the function and operation of the bank. I express my greatest gratitude to my kindhearted Supervisor Miss Mehreen who was the Person who made me able to write this report, Her enthusiasm shows the way forward to me to achieve this success and who kept me in high spirit through his appreciation. She helped me a lot each time I went up to her.
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1 EXECUTIVE SUMMARY:
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Internship is the one of the crucial part of the MBA course and this provide the practice knowledge of what students read about business in their books. Internship report is prepared to full fledge analysis of an organization. As this is the only field experience that students before entering practically into the market. Banking play very important role in the commerce and economic development of a country. Now-a-days banks are using different modern technologies, which influence the managerial activities that are why I decided to do my internship Training in the bank. In preparation of this Report is have tried my best to provide all Possible information about the operation, function and tasks of MCB in brief and comprehensive form. It also includes a brief department worked during internship. I have also tried my best to use simple and easy words and language. The first chapter includes executive summery and objective study of the organization; the second chapter includes overview of the MCB with brief history, nature of the organization, Business Volume numbers of employee and product line. Later on third chapter contain the Branch structure, various departments and functions & strictures of account and finance departments, finance and accounting operations, Role of finance Manager and the use of electronic media in decision making. Forth chapter consist of the critical analyses of theatrical concepts with the help of five year balance sheets and Income statements and future prospects. Then internship report ends with some recommendation after identification of some weakness observed during the course of internship.
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Table of Contents
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ACKNOWLEDGEMENT.................................................................................................................................... i 1 EXECUTIVE SUMMARY: .............................................................................................................................. ii Part-1............................................................................................................................................................. 1 5.1 Introduction: ....................................................................................................................................... 1 5.1.1 Back Ground of study:.................................................................................................................. 1 5.1.2 Purpose: ....................................................................................................................................... 1 5.1.3 Scope of Work:............................................................................................................................. 2 5.1.4 Objectives that I want to achieve: ............................................................................................... 2 5.2 overview of organization: ................................................................................................................... 2 5.2.1 History of MCB Bank: ................................................................................................................... 3 5.2.2 Nature of organization:................................................................................................................ 4 Vision Statement:.............................................................................................................................. 4 Mission Statement: ........................................................................................................................... 4 Key Values of MCB Bank Ltd: ............................................................................................................ 4 Integrity:........................................................................................................................................ 4 Respect:......................................................................................................................................... 4 Excellence: .................................................................................................................................... 5 Customer Centricity: ..................................................................................................................... 5 Innovation: .................................................................................................................................... 5 NATURE OF BUSINESS ACTIVITES:..................................................................................................... 5 Holder of public money: ............................................................................................................... 5 Business loans: .............................................................................................................................. 5 Consumer loans: ........................................................................................................................... 6 Investments: ................................................................................................................................. 6 5.2.3 Business volume:.......................................................................................................................... 7 Total Assets: .......................................................................................................................................... 7 Investment: ........................................................................................................................................... 8 Deposits: ............................................................................................................................................... 9 Gross Advances: .................................................................................................................................. 10 Profit before Taxes:.............................................................................................................................11 Profit after Taxes:................................................................................................................................12 Akeel Hussain 11022720-130 iii FMAS
5.2.3.1 ACHIVEMENTS AND AWARDS: .................................................................................13 Euro money Awards: .......................................................................................................................13 Asia Money Award: ..........................................................................................................................13 5.2.4 MCB Products and Services Details:...........................................................................................13 Current Account:.............................................................................................................................13 Savings Account: .............................................................................................................................13 Term Deposit:.................................................................................................................................. 14 MCB Online Banking: ......................................................................................................................14 MCB MNET: ..................................................................................................................................... 14 MCB Cash Management: ................................................................................................................14 MCB Channel Financing: .................................................................................................................14 MCB Local Rupee Drawing Arrangement: ......................................................................................14 MCB Home Remittance:..................................................................................................................14 MCB Corporate Financing: .............................................................................................................. 15 MCB Project & Structured Finance: ................................................................................................15 MCB Syndicated Loans and Debt Capital Markets:......................................................................... 15 MCB Quasi Equity/Hybrid Instruments:..........................................................................................15 MCB Advisory Services:...................................................................................................................15 MCB Islamic Banking:......................................................................................................................15 MCB Agri Products: .........................................................................................................................16 MCB Privilege: ................................................................................................................................. 16 MCB Salary Club:.............................................................................................................................16 MCB Investment Services: .............................................................................................................. 16 MCB Visa Credit Card: .....................................................................................................................16 MCB Car4U:..................................................................................................................................... 17 MCB Instant Finance: ......................................................................................................................17 MCB Smart Card:.............................................................................................................................17 MCB Rupee Travelers Cheque: ....................................................................................................... 17 MCB ATMs:...................................................................................................................................... 17 MCB Mobile ATM:...........................................................................................................................17 MCB Lockers:................................................................................................................................... 17
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MCB Full-Day Banking:....................................................................................................................18 MCB Bancassurance:.......................................................................................................................18 MCB Call Centre: .............................................................................................................................18 MCB Mobile: ................................................................................................................................... 18 MCB Virtual Banking: ......................................................................................................................18 5.2.5 PEST Analysis:.............................................................................................................................18 Political:........................................................................................................................................... 19 Economical:..................................................................................................................................... 19 Social: .............................................................................................................................................. 19 Technological: ................................................................................................................................. 19 5.2.6 Contribution of MCB toward economic development: .............................................................20 5.3 Organizational Structure:..................................................................................................................20 5.3.1 Organizational Hierarchy chart: ................................................................................................. 20 5.3.2 Number of employees: .............................................................................................................. 21 5.3.3 Main offices:...............................................................................................................................21 5.3.4: Introduction of all departments: ..............................................................................................21 Cash Department: ...........................................................................................................................22 Clarification: .................................................................................................................................... 22 Payment: ......................................................................................................................................... 22 Receipts:.......................................................................................................................................... 23 Collection of money from the customer in accounts: .................................................................... 23 Collection of utilities bills:...............................................................................................................23 Remittance Department: ................................................................................................................23 Foreign remittances: .......................................................................................................................23 Local remittances:...........................................................................................................................24 Demand Draft: ................................................................................................................................24 Pay Orders:...................................................................................................................................... 24 Telegraphic Transfer: ......................................................................................................................24 Foreign Exchange Department: ...................................................................................................... 25 Kinds of Foreign Exchange Transaction: .........................................................................................26 Current Transactions:......................................................................................................................26
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Visible Trade:................................................................................................................................... 26 Invisible Trade:................................................................................................................................26 Capital Transactions:.......................................................................................................................27 Short term financial Transaction: ................................................................................................... 27 Working Balance: ............................................................................................................................27 Imports:........................................................................................................................................... 27 Credit Department: .........................................................................................................................27 5.3.5 Comments on the organizational structure:.............................................................................. 28 Part 2:..........................................................................................................................................................29 Internee Work:........................................................................................................................................ 29 Introduction of branch:.......................................................................................................................29 Hirarchy of branch: .............................................................................................................................30 Supervisors during internship: ............................................................................................................ 31 First week:........................................................................................................................................... 31 Customer service department: ........................................................................................................... 31 Second week: ...................................................................................................................................... 33 Account opening: ............................................................................................................................33 Third week: ......................................................................................................................................... 34 Know your customer:......................................................................................................................34 Apply for check book: .....................................................................................................................35 Issuance of cheque book: ...............................................................................................................35 DAK receipts and dispatch: ............................................................................................................. 36 Wastage of cheque book: ...............................................................................................................36 Fourth week: ....................................................................................................................................... 36 Account closing and account dormant: ..........................................................................................36 Clearing department:......................................................................................................................37 Cheque of transfer: .........................................................................................................................37 Cheque of clearing: .........................................................................................................................38 Cheques of collection:.....................................................................................................................38 Return memo about cheques: ........................................................................................................ 39 Fifth week: .......................................................................................................................................... 39
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Fifth week in my internship: ........................................................................................................... 40 Department of remittance:............................................................................................................. 40 Demand draft:................................................................................................................................. 41 Clearing process of demand draft:.................................................................................................. 42 Pay order:........................................................................................................................................ 42 Cross branch transaction: ...............................................................................................................42 Sixth week: .......................................................................................................................................... 43 Cash department: ...........................................................................................................................43 5.4.6 Summary of learning:.................................................................................................................44 5.4.6.1 Skill and qualification: ......................................................................................................... 44 5.4.6.2 Responsibilities: ..................................................................................................................44 5.4.6.3 Impact of internship on future career plans:...................................................................... 45 5.4.6.4 Relation of classroom and practical knowledge: ................................................................46 6.1 Conclusion of Internship: .............................................................................................................. 46 6.2. General observation: ...................................................................................................................47 6.3. SWOT analysis:.............................................................................................................................48 Strengths:........................................................................................................................................ 48 Weakness: ....................................................................................................................................... 48 Opportunity:.................................................................................................................................... 49 Threats: ........................................................................................................................................... 49 7.0 Recommendations: .......................................................................................................................49 8.0 Refferences: 58
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Part-1 5.1 Introduction:
This internship offers me an incredible opportunity to gain real-world experience in the high-stakes finance industry. Most importantly this internship allows me to distinguish myself from my classmates, as I gain a competitive advantage by connecting my coursework with industry experience.
5.1.1 Back Ground of study:

The Background of this study is that we are student of business administration and required to complete our six-week internship in an organization. We are requires to submit our knowledge, not submit our report because this report is purely based on our knowledge. It is necessary for us to work in an organization, which is more near to facilitate you as an employee. Because if any organization treat you as a staff member, it mean they give you same as giving to their employees and MCB is the bank which have a potential to train the student as a employee which actually provides you a real picture about the working of the organization or what actually happens in the practical life.
5.1.2 Purpose:
The main purpose of that study is to aware with the organization environment because this field is entirely different from the university or home life although both have certain importance on their places but we are required to gain practical knowledge and to implement those things which we have learnt in theories which will be helpful for us to improve our analytical skills, working skills, communication skills and other skills etc, and it gives us a sense to how to make a relation how to manage these relation and how to be a successful in future. The other rationale to doing internship is to use our academic knowledge or we
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can say we compare our educational knowledge with the practical field and try to implementation of those acquaintances because as internee we get opportunity to enhance our academic knowledge Creating PR (personal relations) because on the bases of PR more chances of progress no matter whichever field you chose for you career.
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5.1.3 Scope of Work:

The scope of work, I feel that all organization prefers the internship program and this program give them the right person and this is easier for the organization to select the person by this program. Because it cut the cost of many usual steps of hiring and without these, they obtain fresh blood so that why organization feel internee as an employee.
5.1.4 Objectives that I want to achieve:

Prime concern to learn maximum about the Banking sector in General and MCB in particular. Analyze the companys financial condition through the financial statements (compute financial ratios and compare to the industry averages). To describe the impact of financial decisions on the health and functioning of the overall organization. To learn the various steps and procedures of credit risk management & administration. Finding out the weaknesses, short comings, strengths and beauties of the credit administration department.
5.2 overview of organization:

Banking is one of the most sensitive businesses all over the world. Banks play very important role in the economy of a country and Pakistan is no exemption. Banks are custodian to the assets of the general masses. The banking sector plays a significant role in a contemporary world of money and economy. Pakistan has a well-developed banking System, which consists of a wide variety of
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institutions ranging from a Central Bank to commercial banks and to specialized agencies to cater for special requirements of specific sectors. These are few processes and developments from which banking industry has been passing through for few years. Improvements and strengthening of IT systems to cater to E-banking demands of customers. Optimizing the level of human resources to ensure quality customer service. Wide range of services in consumer and corporate banking fields. Foreign banks with their corporate culture have started coming in light of banking, Industry growth and development. Banks started providing project and term finance to build additional manufacturing Capacity, to increase exports, productivity and employment in the country. Deep and broad-based organizational restructuring Upgrading the human resource base through training and quality recruitment. Privatization. Mergers and Acquisitions. Mortgage based personal running finance. Auto and Home financing. Margin financing.
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5.2.1 History of MCB Bank:

MCB Bank Limited" formerly known as "Muslim Commercial Bank Limited was incorporated by the Adamjee Group on July 9, 1947, under the Indian Companies Act, VII of 1913 as a limited company. MCB is one of the leading banks of Pakistan with a deposit base of Rs. 368 Billion and total assets over Rs.500 Billion. Incorporated in 1947, MCB soon earned the reputation of a solid and conservative financial institution managed by expatriate executives. In 1974, MCB was nationalized along with all other private sector banks. The Bank has a customer base of approximately 4 million, a nationwide distribution network of over 1,100 branches and over 500 ATMs in the market. During the last fifteen years, the Bank has concentrated on growth through improving service quality,
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investment in technology and people, utilizing its extensive branch network, developing a large and stable deposit base.
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5.2.2 Nature of organization: Vision Statement:

To be the leading financial services provider, partnering with our customers for a more prosperous and secure future.
Mission Statement:
We are a team of committed professionals, providing innovative and efficient financial solutions to create and nurture long-term relationships with our customers. In doing so, we ensure that our shareholders can invest with confidence in us.
Key Values of MCB Bank Ltd:

These are the standards and principles which determine our behavior and how we interact with our customers and each other:
Integrity:
We are the trustees of pMCBic funds and serve our community with integrity. We believe in being the best at always doing the right thing. We deliver on our responsibilities and commitments to our customers as well as our colleagues.
Respect:
We respect our customers values, beliefs, culture and history. We value the equality of gender and diversity of experience and education that our employees bring with them. We create an environment where each individual is enabled to succeed.
Excellence:
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We take personal responsibility for our role as leaders in the pursuit of excellence. We are a performance driven, result oriented organization where merit is the only criterion for reward.
Customer Centricity:
Our customers are at the heart of everything we do. We thrive on the challenge of understanding their needs and aspirations, both realized and unrealized. We make every effort to exceed customer expectations through superior services and solutions.
Innovation:
We encourage and reward people who challenge the status quo and think beyond the boundaries of the conventional. Our teams work together for the smooth and efficient implementation of ideas and initiatives.
NATURE OF BUSINESS ACTIVITES: Holder of public money:

Collecting deposits from customers and giving them interest
Business loans:
Short term loans to business firms Working capital loans In term construction financing Security dealer financing Retailer financing Assets based financing Syndicated loans Long term business loans
Term business loans Long term project loans
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The revolving credit financing Loans to support acquisition of the business funds
Consumer loans:
Home Finance Car Finance Credit Card Personal Loans
Investments:
Government securities Stock exchange Pakistan investments bonds
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5.2.3 Business volume: Total Assets:
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Rupees in billions
December 31st Total Assets Increase/Decrease Percentage changes 2006 342.1 ----------2007 410.5 68.4 20.00% 2008 443.6 33.1 8.06% 2009 509.2 65.6 14.79% 2010 567.6 58.4 11.47% 2011 653.2 85.6 15.08%
Figure: 1 Total Asset 2006 to 2011
Total Assets in billions

700 600 500 400 300 200 100 0 2011 2010 2009 Column1 2008 2007 2006
Comments: Figure 1 and table shows that assets of MCB increase every year throughout from 2006 to 2011. That is positive sign for bank but this is a hurdle if bank hold unnecessary assets.
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Investment:
Rupees in billions
December 31st Investment Increase/Decrease Percentage changes 2006 63.5 --------2007 113.1 49.6 2008 96.6 -16.5 2009 167.1 70.5 72.98% 2010 213.1 46.0 27.53% 2011 316.7 103.6 48.62%
78.11% 14.59%
Figure: 2 Investments 2006 to 2011
Total Investment in billions

350 300 250 200 150 100 50 0 2011 2010 2009 2008 2007 2006
Comments: The position of the bank in the case of the investment is as strong as compare to the other previous years. The investment decrease in 2008 but increase in 2007, 2009, 2010 and 2011. The bank also has the plan of investment in successful projects in coming years.
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Deposits:
Rupees in billions
December 31st Deposits Increase/Decrease Percentage changes 2006 257.5 --------2007 292.1 34.6 13.44% 2008 330.2 38.1 13.04% 2009 367.6 37.4 11.33% 2010 431.4 63.8 17.36% 2011 491.2 59.8 13.86%
Figure: 3 Deposits 2006 to 2011
Deposits in billions
600 500 400 300 200 100 0 2011 2010 2009 2008 2007 2006
Comments: The position of the deposits and other accounts is satisfactory for the bank. The bank deposit and other accounts increase from year to year because of increase in the business of the bank. The above figures from 2006 to 2011 show the position of the MCB very clearly.
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Gross Advances:
Rupees in billions
December 31st Gross Advances Increase/Decrease Percentage changes 2006 206.8 --------2007 229.7 22.9 11.07% 2008 330.2 100.5 43.75% 2009 367.6 37.4 2010 431.4 63.8 2011 491.2 60.2
11.33% 17.36% 13.95%
Figure: 4 Gross Advances 2006 to 2011
Gross Advances in billions

600 500 400 300 200 100 0 2011 2010 2009 Column2 2008 2007 2006
Comments: From 2006 to 2011 the figures and chart shows the strength of the bank in the case of the advances. The advance increases from year to year.
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Profit before Taxes:
Rupees in billions
December 31st Profit before Taxes Increase/Decrease Percentage changes 2006 18.5 ------2007 21.3 3.2 17.30% 2008 21.9 0.6 2.82% 2009 23.2 1.3 5.94% 2010 26.3 3.1 13.36% 2011 31.5 5.2 19.77%
Figure: 5 profit before taxes 2006 to 2011
Profit before Taxes

35 30 25 20 15 10 5 0 2011 2010 2009 Years 2008 2007 2006
Comments: From the figures and chart shows the strength of the bank in the case of the profit before taxes. The profit before taxes increases from year to year. The chart shows the strength of the MCB from year to year comparison and this increasing trend indicates the successful business of the MCB in banking sector.
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Profit after Taxes:
Rupees in billions
December 31st Profit after Taxes Increase/ Decease Percentage changes 2006 12.1 ------2007 15.3 3.2 26.45% 2008 15.4 0.1 0.66% 2009 15.5 0.1 0.65% 2010 16.9 1.4 9.03% 2011 19.4 2.5 14.79%
Figure: 6 profit after taxes 2006 to 2011
Profit after Taxes

25 20 15 10 5 0 2011 2010 2009 Years 2008 2007 2006
Comments: From the figures and chart shows the strength of the bank in the case of the profit after taxes. The profit after taxes increases from year to year. The chart shows the strength of the MCB from year to year comparison and this increasing trend indicates the successful business of the MCB in banking sector.
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5.2.3.1 Achivements and Awards: Euro money Awards:

Best Bank Award 2010 Best Bank Award 2009 Best Bank Award 2008 Best Bank Award 2007
Best Bank Award 2006
Asia Money Award:

Best Domestic Bank Award 2009 Best Domestic Commercial Bank Award 2007 Best Domestic Commercial Bank Award 2006
5.2.4 MCB Products and Services Details: Current Account:

MCB Bank offers a variety of current accounts to cater to the everyday Transactional needs of various customers. These accounts ensure ease and Freedom to bank from any of the 1100+ branches across the country. The Different accounts include: the Basic Banking Account that has no minimum balance; Business Account offering free online transactions, Demand Drafts, Pay Orders and lots more to meet the day to day business requirements; Current Life Account which offers the security of life insurance free of cost; and for all others, the conventional Current Account.
Savings Account:
MCB Bank offers a wide array of savings products that suit short term growth & transactional needs. Our savings accounts offer attractive profit rates as well as flexibility to transact. Savings Xtra is targeted for customers having Rs. 5 million + deposit, 365 Gold offers profit rate on daily balance while PLS savings has a lower minimum balance requirement. In addition, two unique products: Smart Savings and Savings Maximizer are special saving accounts run solely via debit cards and other remote banking channels, offering a very competitive rate to both high and low end savers.
Term Deposit:
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MCB Term Deposit offer attractive short to mid-term investment options with flexibility, convenience and security. With various tenor options available, customers can choose one that suit their needs. This is combined with different profit payout options and the added facility of being able to avail credit facility against their deposits.
MCB Online Banking:

MCB has a fast growing network of 1100+ online branches in the country providing customers real-time online transaction facilities.
MCB MNET:
MNET is an electronic inter-bank connectivity platform for online transactions on ATM and other remote banking channels. It offers other value added services that include a portfolio of e-banking and payment system products as well as management and day-to-day operations of the same. Members include 10 local and foreign financial institutions enjoying ATM sharing and value added services.
MCB Cash Management:

Cash Management provides a wide range of value added services to large corporations through its vast network of online branches. Our structured and customized products enable our customers to realize their sales proceeds swiftly from all over the country, supported by real-time MIS. Cash Management also provides payment solutions through MCB network and through third parties and customized solutions for dividend payouts.
MCB Channel Financing:

MCB Channel Financing provides working capital facilities to dealers and vendors of selected companies under a structured product program. This product enables our customers dealers to leverage themselves and increase their business capacity with their respective business partners.
MCB Local Rupee Drawing Arrangement:

Transaction Banking Department at MCB, provides Local Rupee Drawing Arrangement, a product for small banks and financial institutions to use our vast branch network platform to make payments in areas where their own branch network does not exist, thus extending their reach nationwide.
MCB Home Remittance:

MCB Home Remittance provides a seamless inflow of foreign remittances credited in the beneficiarys account within minutes. Cash payments can also be
made at our designated branches on behalf of Xpress Money, Samba (Speed Cash Now), Money Gram and My bank Money Express Malaysia, along with cash payments from other correspondents from all over the world under the brand name of MCB Fast & Easy.
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MCB Corporate Financing:

MCB Corporate Financing provides access to diversified financing options, including working capital loans, term loans, trade finance services and investment banking.
MCB Project & Structured Finance:

MCB Project & Structured Finance involves financing complex projects, usually in an SPV structure, where the loan is tightly structured around the cash flows, risks are allocated amongst various stakeholders, and there is limited or no recourse to the sponsors.
MCB Syndicated Loans and Debt Capital Markets:

MCB Syndicated Loans and Debt Capital Markets involve arrangement, underwriting and placement services for significant financing requirements by large corporate and institutional clients to other financial institutions or through the debt capital markets.
MCB Quasi Equity/Hybrid Instruments:

MCB Quasi Equity/Hybrid Instruments structure and place a category of debt that has some characteristics of equity such as being unsecured, subordinated or with a potential equity upside. MCB Equity Capital Raising MCB Equity Capital Raising relates to raising capital for our clients by offering common or preferred equity to public or private investors, through initial public offers, offers for sale, rights issues and private equity placements.
MCB Advisory Services:

Financial and Capital Raising Advisory provides our clients with financial advisory services, commercial structuring support and access to capital resources to help companies successfully finance their business/project.
MCB Islamic Banking:

With the help of Shariah specialists, lawyers and professional commercial bankers, MCB Islamic Banking provides Riba Free and Shariah Compliant products and services both on the liability and asset side of the statement of financial position to various customers of all demographic segments with its
presence in a growing number of cities. MCBs Islamic Banking products are available to cater the need of Working Capital, Capital Expenditures, International/Local trade and consumers requirements.
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MCB Agri Products:

MCB is committed to the farming community to support their national objectives of self-sufficiency & food security to the people of Pakistan. Dedicated and specialized staff, supervised by the Agri Credit Division, is posted in lending branches to cater for strong business relationships & facilitation. The banks extensive branch network in all the provinces and diversified product range extends our reach of agri credit facilities to farmers engaged in any type of activity, encompassing both crop & non crop sectors.
MCB Privilege:
A first from a local bank, MCB Privilege through its dedicated, world class Privilege Centers offers a higher level of personalized services, more rewarding in-branch experiences and a wide array of deposit and investment products that are tailored to meet the financial expectations of our affluent clientele. As members of MCB Privilege, customers experience unparalleled advantages that put them ahead of others. MCBs dedicated Privilege Centers await to welcome you in Karachi, Lahore, Islamabad and Multan, with plans to expand to more locations.
MCB Salary Club:

A payroll solution designed to make life easy; it simplifies all the monthly payroll related banking needs of employers and opens the door to a world of special offers for employees. Salary Club provides the convenience of having an extensive range of financial services available to employees at their place of work.
MCB Investment Services:

Make the most of your wealth with investment opportunities that match your unique financial aspirations. MCB Investment Services offer distribution of mutual funds managed by the leading fund managers of Pakistan. We can suggest the products most suited for your needs, or work with you to create a personalized solution completely focused on your expectations of the capital markets.
MCB Visa Credit Card:

MCB offers a complete suite of Classic, Gold and Platinum Visa Credit Cards focusing on providing, superior services, travel privileges & shopping pleasure. It also offers comprehensive insurance & installment plans, reward points and SMS
alerts that give a different feel to the world of credit cards. These unique features include i-revolve, which makes variable mark-up rate available to customers allowing them to repay at affordable rates.
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MCB Car4U:
MCB Car4U not only gets you a car of your own choice but is also affordable with competitive mark-up, flexible conditions, easy processing and above all, no hidden costs.
MCB Instant Finance:

With MCB Instant Finance, you can get a loan instantly at any MCB branch against liquid collateral at competitive pricing.
MCB Smart Card:

MCB Smart Card opens the opportunity to have access to your funds via multiple banking channels. It enables you to withdraw cash from ATMs across Pakistan and around the world, transfer funds, pay utility and mobile bills and register for mobile and virtual banking services.
MCB Rupee Travelers Cheque:

MCB Rupee Travelers Cheque is the best and safest alternate way of carrying cash. It can be used by travelers, businessmen or by the general pMCBic in meeting their day to day cash requirements while they travel. It is a safe and secure way to make payments because it gives the purchaser security that even if the cheque is lost it can be refunded.
MCB ATMs:
MCB has one of the nations largest ATM networks with 500 ATMs covering 110 cities across the country and still growing. MCB ATMs give you a 24-hours convenience of cash withdrawal, mini-statement, utility bill payments, mobile topups, funds transfer services and much more.
MCB Mobile ATM:

Through our MCB Mobile ATM we allow for convenient world class banking services. Our innovative MCB Mobile ATM van ensures that we offer our services wherever you are, be it concerts, fairs or any other occasion/special event.
MCB Lockers:
MCB Lockers are the best protection for your valuables. Lockers of different capacities are available nationwide. MCB SMS Banking with MCB SMS Banking, you can bank on your fingertips. Once youre registered onto the service you can SMS anytime to get account information.
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MCB Full-Day Banking:
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Enjoy the convenience of extended banking hours from 9am to 5pm, including Saturdays at MCB Full-Day Banking branches across the country.
MCB Bancassurance:
Combining the best of banking and insurance solutions, MCB Bancassurance has created a one-stop shop for all your financial and insurance needs. Whether you want to save for your childs education or marriage, for the security of dignity after retirement or gaining maximum return on savings, MCB Bancassurance has a plan for you. You can also buy instant insurance coverage through your mobile without any medical assessment.
MCB Call Centre:

The simplest way to bank is with the new enhanced 24/7 MCB Call Centre, which blends innovation and convenience to provide banking services that go beyond expectations. MCB Call Centre enables you to manage your VISA Credit & ATM/Debit Cards, confirm account balances & view last 5 transactions, pay utility/mobile phone & MCB Visa Credit Card bills, topup your mobile, transfer money within MCB network accounts and register complaints. Most importantly it provides you with our very own banking consultant to discuss your financial needs and requirements. Simply call at 111-000-622 and well do the rest.
MCB Mobile:
MCB Mobile is a quick easy and secure way to recharge mobile phones, transfer money, pay bills and do much more. Visit the nearest MCB ATM or call 111-000622 to register and logon to www.MCBmobile.com using your mobile phone to start transacting.
MCB Virtual Banking:

MCB Virtual Banking Service is a convenient way to access your account(s) 24/7. It is secure, free of cost and lets you do your banking whenever and wherever. This service allows you to transfer funds, pay utility/mobile bills, set up standing order instruction, download account statement and much more.
5.2.5 PEST Analysis:

The "Political, Economic, Social, and Technological analysis", it describes a framework of macro-environmental factors used in the environmental scanning component of strategic management. I explained these two types of analysis in detail. The pest analysis is that analysis which stated that how much firm organization affects from the factors as pest
Political:
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As we know that MCB, is acting under provisional government so the bank focus on the agriculture and provides variety of packages to the formers, through this development the poor former may be establishing their lives by the loan provided by the MCB. Government has also worked in the field of agriculture. State bank of Pakistan has decreased its reserve requirement from 8% to 6%, which is helpful for all banks. Improvement in law and order can attract both the local customer & the foreign investors. Government of Pakistan through SBP establishing the rule for those people that are import luxury goods from out of the country, the rule are impending to discourage those peoples and to imply the tax on import by this encouraging the local industry. Political instability affects the economy ultimately affects the banking sector as well the margin going shrinks.
Economical:
The inflationary pressure influence the economy of Pakistan, and the decreasing trend in the new business, people prefer to invest in the out of the country and due to this the market share of banking sector going reduces day by day. Energy crisis is the main problem of our country, because there is a huge demand but the supply is less. Economic instability prevailing in worldwide financial markets and investors are losing their confidence in banks.
Social:
Visible confusion in society is raiding people to take out their investments and valuables from banks as there are huge chances of banks liquidation. There was trend in few years ago when so many people are opening accounts, but now this trend has decreased to some extent. The scope of banking sector going decline, because of the need and the salaries of the bank are not as much, which fulfill the requirements of the new talent so everyone want to switch from banking sector to the other.
Technological:
Advanced computerized and control system.
Growing network of online branches of the bank in the whole country.
MCB
5.2.6 Contribution of MCB toward economic development:

Majority of the rural setup in Pakistan lacks necessary exposure to financial and modern services. MCB has 427 rural branches where we offer customized product menu to suit and meet the requirements of these people. MCB is committed in enhancing knowledge and understanding of banking business vis-vis spreading and exploring neglected regions of the country.
5.3 Organizational Structure:

5.3.1 Organizational Hierarchy chart:
Board of Directors
Mian Mohammad Mansha Mr. S. M. Muneer Mr. Tariq Rafi Mr. Shahzad Saleem Mr. Sarmad Amin Dr. Muhammad Yaqub Dato' Mohammed Hussein Mian Raza Mansha Mr. Aftab Ahmad Khan Mian Umer Mansha Mr. Muhammad Ali Zeb Dato' Seri Ismail Shahudin Mr. M.U.A. Usmani
Chairman Vice Chairman Director Director Director Director Director Director Director Director Director Director President / CEO 20 FMAS
MCB
5.3.2 Number of employees: 5.3.3 Main offices:
Head office and the main branch of MCB is in Gulberg 3, Lahore and Egerton, Lahore respectively. The is divided into seven regions. Each consisting number of branches. Lahore region Faislabad region Gujranwala region Rawalpindi region Karachi/Quetta region Multan region Peshawar region Rests are the branches working under these regions. Which are almost 270 in all over Pakistan.
5.3.4: Introduction of all departments:

MCB is working as a Government bank but it is not fully government bank, The MCB working under the provisional government of Pakistan. MCB offers variety of products and these products or offering not handling by the one leave of a tree mean every aspect controls by the different department. The proper departmentalization provides the path towards growth and MCB is one of the examples of that growth. Each branch is divided into the following departments: Cash department Remittance department Foreign exchange department Credit department
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MCB
Cash Department:
The main function of this department is Payments and receipts. It collects and pays money to the customers, on behalf of their account, through cheque or any other negotiable instruments. There are three main functions of the cash department: Clarification Payment Receipts
Clarification:
The clarification is the duty, responsibility or the safe guard of the cash officer, when the account holder come at the cash counter and holding cheque so cash officer must check the posting of cheque , sign, stamps, token number and transaction number which is the sign of proper posting or debating of check from the account holder. Another main aspect of verification includes checking of proper date, amount, endorsements, such as issue stamp, clearing stamp and backside stamp, and signature. After proper verification of cheque, the payments have issued.
Payment:
The cash officer pays the cash against the cheque or negotiable instruments. The department receives the cheque and after their clearance, cash is issuing to the check-holder. Cash officer paying cash to only those which have the cheque or if the customer is not a account holder then he or she must have he ordered cheque, officer paying the cash before checking or clarify the receiver of that cash. At the period of day end cash officer must balance their cash in hand with the balance of the system.
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Receipts:
MCB
Another duty of cash department is to receiving the cash from the account holders, or any one that want to deposit money in the account. In the receipt section, most of the receipt goes through the accounts of the MCB. The cash receipts are done in two forms: Collection of money from customers in their accounts Collection of utility bills
Collection of money from the customer in accounts:

The collection of cash from the customer it is surely credited in the account of holder, because account holder save their surplus money in their account and depositing of cash is only trough the prescribed receipt on which account holder mentioning the account number type , date, contact number and signature of depositor.
Collection of utilities bills:

MCB also offers the facility of collection of utility bills. The customer can deposit electricity, gas, and telephone bills through the bank. The bills are receiving, stamping and kept in record. The record are base on the system posting which deals by the cash officer, at the end of the working hour cash officer must post that bills in the system and through credit voucher bank transfer the bill amount to the corresponding account.
Remittance Department:
Remittance department is relating to funds transferring. There are two main kinds of remittances. These are: Foreign remittances Local remittances
Foreign remittances:
Foreign remittances means the money transfer from one country to the another, or we can say that, the family or the family members those are out of the country
and want on the way to remit their money to the families in Pakistan, so they use that facility and MCB offers facility which make easy that remittances. These modes includes Express Money transfer, Habib Express, Western Union, Ansary International etc these are the mode of system from which bank remit the money from one country to the another and the other modes are foreign demand drafts, foreign telegraphic transfers, and online transactions.
MCB
Local remittances:
Local remittances are way of transfer money from one place to another in the country it includes pay orders, demand drafts, telegraphic transfers; travelers cheque, and mail transfers. All these remittances can be categorized into four main kinds: Demand Draft Pay Order Telegraphic Transfer Mail Transfer
Demand Draft:
Demand Draft is the negotiable instrument use in the transfer of money from one place to another in the particular country and this draft can be use from one bank to another, but this instrument pay only by the drawer bank. This is issuing by one branch and payable at other branch of same bank or other banks branch.
Pay Orders:
Pay order is a financial instrument use for the transfer of money with in a city for the specific purpose through paper document because the issuance and paying of instrument doing by the same branch.
Telegraphic Transfer:
Telegraphic transfer is the mode of remittances in which customer want to transfer their money from one city to another, but in this type of remittances the document will not move from the drawer bank to the payee bank the information
or the transformation convey through the telephone. It is a facility providing by the bank, through which a customer can send or transfer their amount immediately. There are two kinds of telegraphic transfers: Ordinary Telegraphic Transfer Telegraphic Transfer Ordinary Telegraphic Transfer reaches to its destination after two days when it is dispatching. For ordinary TT only two vouchers are prepared: Commission Voucher Postage Voucher Telegraphic Transfer reaches to its payee immediately because the payee branch is informed immediately through telephone and fax. For this, three vouchers are prepared: Commission Postage Telephone charges
MCB
Foreign Exchange Department:

The department of operations is mainly working in the Pak Rupees and the foreign Exchange Department is working it like the other department. Its means that the opening of account, in cash of the currency, loaning, financing, investing etc but the main difference between the foreign exchange department and other department is the currency, in this department all activities related with the
foreign currency, the account must be open in foreign currency and deal in the foreign currency as well. In foreign exchange department, the major things to be dealt with are: Foreign Currencies Deposits Foreign Trade Foreign Exchange Rate
Remittances
MCB
The foreign exchange department deals with the foreign currency accounts. It deals in following main foreign currencies: US Dollar UK pound Euro For Account opening minimum balance for each of these currencies is 500 in the respective currency. The accounts in which foreign currency accounts can be open are PLS, Current Account, and Fixed Account etc. These accounts are opening in the currencies other than Pakistani currency.
Kinds of Foreign Exchange Transaction:

The foreign exchange transactions are usually put into four categories: Current transactions Capital transactions ST financial transactions Working balances
Current Transactions:
As regards the current transactions, they are dividing in two classes.
Visible Trade:
The visible trade is that type of business activity in which import and export of goods physically, some time it known as merchandizing.
Invisible Trade:
The invisible trade is relating with the trade invisibly as the payment made to or received from the other country for the shipment, for the purpose of business, banking, insurance services received or provided to them. The remittances, profit-bearing business all comes in this category.
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Capital Transactions:
MCB
Capital transactions are the transaction in which obtaining the aids, grants, trusts, long-term loan or any sort of help by the other country. Then the bank operated by the capital or huge transaction.
Short term financial Transaction:

If any customer want to invest in the other country or some time bank itself investing in the other country because of the fluctuations in the currency or the instability in the political and economical system of country so the bank or the customer invest in other country for 3 months minimum and the bank help in the transaction.
Working Balance:
The commercial banks sometimes keep their balances in the outside of the country due to the economical and political instability the economy suffer the loss then bank store the money in the other country and these type of financial activities provides them a profit which is basic need of nay investment or financial institution.
Imports:
Imports mean bringing commodity into Pakistan from outside, by sea, land or area. The import of any goods or item bank plays a vital role between the transaction they help to the customer through opening of LC and other mode of remittances, which gives them the secure way. However, SBP discourage the imports of luxury item by putting the taxes on the imports these help to encourage the local companies that they manufacture and sale in their own country.
Credit Department:
Credit department provides the plate forum to those wants the finance from the bank sometimes banking or credit office focus some factor while providing the loan to those people. these loan are categorized in two areas as
Criteria for Granting Loans Advances
MCB
When the customer comes at the branch premises and want to credit then the concern officer focus on the come criteria that must be fulfill by the customer these criteria includes the customer must have sound mind, having well and stable financial position, nor any other obligation or default of any bank, having good character and payback capacity.
5.3.5 Comments on the organizational structure:

By examining the organizational hierarchy chart it is obvious that the hierarchy is not complicated but it is simple. More simple structure results in more efficiency of quality work and also the well communication of the orders from top to bottom of the hierarchy. These types of the structures provide an ease in transmitting different type of information through different managerial levels without any ambiguities. If the hierarchy is more complicated there must be more chances of collapsing the information between the different managerial groups and as a result downfall in the cultural values of the organization. In these types of structures that MCB have employees feels comfortable in describing their problems to their seniors for assistance in many issues.
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MCB
Part 2: Internee Work: Introduction of branch:
Bank Branch code: Branch name City Phone no. Fax no. MCB limited 1403 Chamber of commerce and Industry building Sialkot 0524274827 0524262938
In summer I complete my internship from MCB chamber of commerce & industry building branch. Mr. Muhammad Sarwar held the post manager in that branch he is very nice personality cooperative with branch staff, regular and also has very good manager qualities. Mr. Mukhtar Ahmad held the post of operation manager in that branch. He very competent person to manage the overall operation of the branch he also follow the time table of banking working hours. He has a lot of knowledge and experience in general banking. Mr. Rashid held the post of asset manger he deal in advances he has very grace person and Mr.Sikandar zulifiqar held the post forex manager he deal with customer in very good way.
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MCB
Hirarchy of branch:
Manager
Asset Manager
Operation Manager General Banking officer
Forex Manager Cash Department
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Supervisors during internship:
MCB
First of all I am starting my practical work during internship from the CSOs post the CSO in MCB chamber of commerce and industry building branch is held by Miss Mehreen. She is very hardworking lady she give me precious kind of knowledge about the post of customer service officer. Second phase of learning I am supervised by Miss Asma. She is very kind personality and held the post of general banking officer. She provides me very useful knowledge about clearing department. Phase three I am supervised by Mr. Mubashar Hussain he did his MBA from university of Gujrat. He held post of remittance and give me very depth knowledge about remittance department. At the end did work under the supervision of Hafiz Sheraz. He is senior cashier in MCB CC&I branch. He is very nice personality and gives me a lot of instruction about handling the cash department.
First week:
Date Aug 27-2012 Aug 28-2012 Aug 29-2012 Aug 30-2012 Aug 31-2012 Day 1st day 2nd day 3rd day 4th day 5th day Timing 9:00 AM to 5:00PM 9:00 AM to 5:00PM 9:00 AM to 5:00PM 9:00 AM to 5:00PM 9:00 AM to 5:00PM Task Observe customer dealing Filling of pay in slips Filling of pay in slips Filling of online transfer slips Filling of online transfer slips
Customer service department:

During this summer I did my internship in MCB chamber of commerce and industry branch Sialkot. Where I started my internship from the customer service department in that bank the post of customer service officer is held by Miss Mehreen. At very starting day I only observed the customer dealing whole day. Customer dealing play important role in success of every organization. Because
every customer first of meet with customer service department in bank and branch first impression on customer must from the side of customer service officer. After that someday I take on the seat of CSO and dealing with customers. During that period I fill deposit slips that give me knowledge about the deposit methods. On deposit slip I write the branch name, branch code, name of the account holder under the heading of account title, complete account number, amount in words, amount in figure and also write currency type either the deposit amount consist of 500 rupee note or 1000 rupee note etc. then on deposit slip put the sign of thumb or signature of the customer. I also fill slip of credit cards these are totally different from deposit slip on these slips I write the name of the card holder under the heading of customer name, card number, and amount in figure and in word that must be same in both the signed by the customer and pass to the cash counter for collection. I also give duty to operate the photo copier machine this generally use for copy of CNIC of the customers that come for online and account opening and had not copy of their CNIC. I also fill the online slips this slip is same as deposit slip but it has other formalities like if the amount is more than 50000 rupee then a form is also filled that require the t national identity card of client, purpose of transaction, nature of transaction and who is the person to whom that should receive the amount. For the purpose of this form is to control illegal transformation of money. The rules of State Bank of Pakistan relating to internee are very stick due to this they not give the control of online in the hand of internees. I only involve in manual work of bank during my internship but the staff of that branch is very lenient with me they orally tell me about the system how to operate it. I also performed the duty to calculate the withholding tax of the customers account. These calculate for the purpose of preparing tax certificate to the customer that they use to prepare their tax return. I also performed the responsibility to giving the account statement to customers.
MCB
32 FMAS
MCB
Second week:
Date Sep03-2012 Sep04-2012 Sep05-2012 Sep06-2012 Sep07-2012 Days 1st day Timing Task
9:00 AM to 5:00 PM Account opening
2nd day 9:00 AM to 5:00 PM Account opening 3rd day 4th day 5th day 9:00 AM to 5:00 PM Account opening 9:00 AM to 5:00 PM Account opening 9:00 AM to 5:00 PM Account opening
Account opening:
During second week of my internship I learn about the account first day at account opening whole day I observed the process of account opening. Miss Mehreen give me a filled opening form tell me to check the process of account opening form she also said me the rules and regulation of states bank are very stick. In that branch the account opening target assigned by the main office of MCB which normally 70 to 100 account in a month. For this she calls to the customer and tell him about the MCB positive point also facilities of MCB. Account opening form of MCB many parts that are describe as bellow: Type of accounts (individual, business, partnership and company a/c etc.) Nature of account and currency Personal information of customer Detail of other banking relationships ATM card Know your customer (KYC)
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Basic banking account is basically opened by the salaried persons this account is open with 100 rupee after approval of head office customer is able to deposit amount in their account. The process of saving account is same as the basic banking account but the basic banking account has fewer turnovers. Foreign currency account is require to $500 dollar it also require that customer should have Pak currency account with the same branch and also show the purpose of opening foreign currency account.
MCB
Third week:
Date Sep 10-2012 Sep 11-2012 Sep 12-2012 Sep 13-2012 Sep 14-2012 Days Timing Task KYC (know your customer) KYC (know your customer) Issuance of cheque book DAK receipt & dispatch Waste of cheque book
1st day 9:00 AM to 5:00 PM 2nd day 9:00 AM to 5:00 PM 3rd day 4th day 5th day 9:00 AM to 5:00 PM 9:00 AM to 5:00 PM 9:00 AM to 5:00 PM
Know your customer:

At the start of my third week during my internship Miss Mehreen tell me about know your customer form that she filled for customers new account opening. Know your customer is form that holds the detail personal information of the account holder. This formality is applied by the state bank to control over money laundering. This form holds the detail source of income of an account holder. In this form detail about the residency of the customer either his accommodation is his personal or he live in rented house. This form has brief information about the account holders business (what kind of business is run by the account holder) either he run sole proprietorship, partnership or company. This KYC consist of detail past history of customer dealing with banks. This information help to bank for making decision about giving the loan to the customer and save the bank
from any unseen situation that give loose to bank. Know your customer give more reliable information about the customer to bank. This rule is run after the scandal of money laundering by khanani & kalian. This gives the information about the transaction of the account. This form is filled by customer service officer during the process of completing the form of account opening. This form also holds the information about the dealing of the customer with other branches. An exemption to the customer when it also a financial institution. A customer account opening process requires checking the following things: Computerized national identity card is valid (not expired) Presented document are original (like as letter pad of business etc.) Two time signature in specimen signature card. All evidences are consistent (signatures at account opening form on specimen must same) If branch manager not available then account opening form verified by the operation manager
MCB
Apply for check book:

When the approval account opening is delivered by head office then customer service officer inform to customer through call then customer come to the branch and deposits some amount in his account and then apply for his cheque book.
Issuance of cheque book:

After two to five days of applying the cheque book the cheque books DAK is received by head office and then also customer service officer call to customer for giving them information about their cheque book. And they come with letter of thanks and get their cheque book for this process bank maintains a register with the name of issuance of cheque books. Customer service officer must record of distribution of cheque book.
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DAK receipts and dispatch:
MCB
As all process banks also maintain a register with the name of DAK receipts. Customer service officer must record of every post receipt or dispatch and their detail from where post is delivered and also detail of all dispatch to whom this is delivered.
Wastage of cheque book:

Miss Asma tell me about the cheque books that yet not received by customer up till period of six month then bank is liable waste the cheque books because he must audited if bank does not wastes these cheque book auditor require the report. The wastage process of cheque book is save the account number, name of the account holder and also save the cheque no and after compellation of this process bank should record it in waste of cheque book register.
Fourth week:
Date Sep17-2012 Sep18-2012 Sep19-2012 Sep20-2012 Sep21-2012 Days Timing Task
1st day 9:00 AM to 5:00 PM Account closing & Dormant 2nd day 9:00 AM to 5:00 PM Clearing 3rd day 4th day 5th day 9:00 AM to 5:00 PM Clearing 9:00 AM to 5:00 PM Clearing 9:00 AM to 5:00 PM Clearing
Account closing and account dormant:

During the fourth week of my internship Miss. Mehreen tell me about the account closing and a/c dormant. When one person want to close his a/c he draw cheque on his branch with the equal amount that he has in his a/c. when the cheque is
presented at the counter of the cashier and bank make payment of that cheque after charging process fee to the customer. And she also tell me about the a/c dormant when a person not operate his a/c within the time period of the six month. For reactivation of a/c the customer must fill the a/c dormant application to the branch.
MCB
Clearing department:
After completing my tasks in customer service department that are necessary require for operation manager change my desk and pass me from customer service department to clearing department in this department I am supervised by Miss Asma who hold the general baking officer seat at MCB CC&I branch Sialkot. She teach me about the clearing of cheques when cheques are presented at the counter then she sort the cheques and differentiate the cheques either it is cheque of collection, cheque of transfer or cheque of clearing. And it is the responsibility of the clearing officer to take proper care to the cheque that she receives from the customers. After completion of the process finally the amount of cheque added to the a/c of customer who present the cheque at clearing counter.
Cheque of transfer:
When the presented cheque is from the drawer of the a/c that is in the same branch then it will treated as cheque of transfer i.e. both a/cs are in the MCB CC&I branch then it must be treated as cheque of transfer. This type of cheque transfer from one a/c to another a/c after check in the balance and stumping it. This is requiring the transfer stump.
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Cheque of clearing:
MCB
When the presenting cheque is from the any branch of any bank the t cheque is treated as cheque of clearing. It is responsibility of the clearing department to take care to cheque. These cheques are forwarded by branch to their main branches and main forwarded it to the state banks clearing department to verify either this a/c has amount and also transfer the money from that bank to the MCB. When this process is successfully complete then the amount transfer to the presenter a/c. when the cheque of the MCBs customer from other for verification in MCB that is called inward clearing wise versa when the cheque of other transfer to that bank for clearing from the site of MCB that is called outward clearing the clearing of chques further divided into two categories that are described below: General clearing (when the cheques are cleared in normal clearing time that are known as general clearing) Same day clearing (when the cheque is cleared in single day it is only possible when cheque is from the bank branch situated in same city) Clearing officer must care during the receiving the cheques the date of cheque, a/c number, signature of drawer and payee and must fill the deposit slip for cheque if above mention points are not fulfill then cheque going to dishonored.
Cheques of collection:
When the presenting cheque is from any branch of MCB then will be treated as cheque of collection. Either it is situated in Sialkot or out of Sialkot. This cheque sent to main branch through TCS. When the process is success fully completed then it transfer to the a/c of that person who present the cheque. The register of collection of cheques has same specimen of column as the register of clearing.
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Return memo about cheques:
MCB
When cheque has any problem that is presenting it attach with a document that is called cheque return memo. The cheque return memo has described these component name of the branch and code of branch in which the a/c of cheque is maintain. Date of the cheque, a/c number, account title and also the reason for which the cheque is return. There are following reasons for the cheques are return: Payment stops (when the payment is stopped on the request of the a/c holder) Amount differ (when the amount written on cheque is different in word and figure) Mutilated cheques (when the condition of cheque is very bad) Post dated cheques (when cheques are presented after six month) Stump of clearing (when the stump of clearing not put on cheque) A/c closed (may the a/c is close) Incomplete cheque
Fifth week:
Date Sep 24-2012 Sep 25-2012 Sep 26-2012 Sep 27-2012 Sep 28-2012 Days 1st day 2nd day 3rd day 4th day 5th day Timing 9:00 AM to 5:00 PM 9:00 AM to 5:00 PM 9:00 AM to 5:00 PM 9:00 AM to 5:00 PM 9:00 AM to 5:00 PM Task Rupee traveler cheque Remittance Remittance Remittance Remittance
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Fifth week in my internship:
MCB
During the fifth week of my internship period I am dealing with rupee traveler cheques this assignment assign me for the site of Miss Asma she give me a brief introduction of rupee traveler cheques. She introduce me the feature of rupee traveler cheques these are easily available in whole Pakistan about 900 branches of MCB deal with rupee traveler cheques. The safety of rupee traveler cheque is much higher than liquid cash and commodity like as gold and silver. These are easily convertible into cash for any branch of MCb that deal in rupee traveler cheques. It has also the features as securities like as bond and common stock. These are available in 5000 rupee and also in 1000 rupee and these are valid until these are used by the person who purchased it from his bank. It necessary for the buyer must have the a/c with MCB and only available from that branch in which he has his a/c. the clearing process of rupee traveler cheques require the stump of clearing. It must have the signature of the person who sell out it and the signature must match with the signature that he put in bank at the time of issuance otherwise its clearing canceled by the clearing officer. It must have the stump of endorsement on rupee traveler cheques, signature of IBS and should carefully check it either it is genuine or not.
Department of remittance:
This dept give the service of transforming of money from one place to another place to a/c holder of MCB people use the remittance department for transferring money from one place to other place for safety purpose. Demand draft issued for transferring money within the city and the pay order is used to transferring money from one city to other city like from Sialkot to Lahore. Customer carry the demand draft and pay order instead of cash the most commonly used instrument in remittance department are given bellow. Pay order Demand draft Cross branch transaction
40 FMAS
MCB
Demand draft:
Demand draft is written instrument that is drawn by one branch on other branch of the same bank or order to the other branch of same bank to pay a certain sum of money to the particular person for this purpose the person who want make demand draft must give an application to the bank. The payment of demand draft by the mode of cash or by cheque to the brawer bank by the person who show his willingness to make the demand draft it must be recorded in the remittance registered and also signed by the person who wants to make it. Then the demand drat is making by the remittance officer after checking/ testing his application. There are following parties involved in demand draft: Purchaser (the person who want to purchase the demand draft from the bank) Drawee branch (the bank branch that is responsible for making payment to the beneficiary) Payee (The person who has right to receive the money from the drawee branch) Drawer (the bank branch that make the demand draft or give the odder to the other branch ) The important points for making payment of demand draft it is responsibility of drawee branch to verified by the bank branch that give the order of giving
payment of demand draft either it is genuine or not . checkout the serial no. of the demand draft if it is applicable and also check the amount in words and amount in figure are same if same then it will be treated as valid otherwise it go to dishonored. Also check the name of beneficiary and amount. When it is proof from all aspects then drawee bank make payment of the demand draft and entered it into demand draft registered.
41 FMAS
Clearing process of demand draft:

The clearing of demand draft must require the following process in all branches of MCB bank limited in whole Pakistan. Crossing stump( it is necessary for the drawee bank to put the clearing stump on the demand draft) Endorsement stump (endorsement stump that show how payment is made it from the site of drawee bank) Verification of signature (it is duty of drawee branch to verified the signature )
MCB
Pay order:
A pay order is also a written instrument just likes as the demand daft but it is drawn on the branch of the same bank in other city. It also contains the name and address of the person who is the payee of instrument. Pay order is also drawn by the bank branch on the same bank branch in other city. Pay order cant be transferable it is only paid to the person whose name and address is written on pay order it is not paid to the any bearer of pay order. Pay order is only payable when it has the revenue stamp put by the clearing. Pay order does not issue to the person who not meet the age of majority. Parties that are involved in pay order are describing bellow: Buyer (the person who make the pay order from his bank) Drawer (bank branch that involved in making the pay order or give the order to the other branch of same bank in other city) Payee (the person that have right to receive the money from the drawee branch) Drawee ( bank branch that is liable to pay the amount of money to the payee)
Cross branch transaction:

It is a process of transferring money from one branch to the other branch of the same bank. In this process there is no constraint of city either branch is situated in the same city or it is situated in other city. The amount of money debited from
the a/c of payee and advice him to receive the money from the specific branch of a bank with proper identification. The cross branch transaction cant be negotiable. There are following parties involved in cross branch transaction: Applicant (the person who apply for it) Drawer branch (the branch that make the cross branch transaction) Drawee branch(the branch that is liable to pay the amount of cross branch transaction)
MCB
Payee (the person who is beneficiary in this case) Sixth week:

Date Sep 24-2012 Sep 25-2012 Sep 26-2012 Sep 27-2012 Sep 28-2012 Days 1st day 2nd day 3rd day 4th day 5th day Timing 9:00 AM to 5:00 PM 9:00 AM to 5:00 PM 9:00 AM to 5:00 PM 9:00 AM to 5:00 PM 9:00 AM to 5:00 PM Task Payment and Receipts Bills Received Online Services Prize bond dealing Prize bond dealing
Cash department:
At the last week of my internship I did work in cash department where I am guided by Hafiz Sheraz senior cashier at MCB CC&I building branch. He tells me how to handle cash. Cashier is liable to meet the deposit and withdrawal at the end of each day that is very much difficult but he handles it in very good way. This department play very necessary rile in banking industry they generate fund for lending by deposit and provide money to the customer when they want to withdrawal through cheques. This department provide different kind of services to the general public and reward of all these services the generate revenue for bank cash department provide services to different sectors like as collection of utility bill. Cash department also involve in dealing of sale and purchase of prize bond MCB purchase these bond from the state bank and then sell it to general public.
Cash department also play an important role in online banking services to general public. MCB this service to his customers as well as general public this is done through by cheques and also by cash.
MCB
5.4.6 Summary of learning: 5.4.6.1 Skill and qualification:

I have got very useful knowledge about banking sectors. First of all practically I learn about customer dealing the customer dealing is very necessary in the success of every organization. I have got confidence in customer dealing during my internship. I have lot of information about accounting opening process that is very helpful for me in my practical life. I have experience of operating the photo copier machine during my internship. Before my internship I had no experience about the fax machine during internship I have to use fax machine that is very help full for me in my future life. I get the knowledge about filling of account opening form and also get very keen knowledge about the account opening process and also aware about the policies of state bank of Pakistan about account opening process like as the purpose of filling KYC (know your customer ) form. I am also getting the skill working with different people that are senior for me in age and also in education. I have experience of checking vouchers during my internship that are very help full for me in my future of my educational life. I have not skill to control work burden before my internship but during my internship I get high stamina of working continuously. Before internship I had no knowledge about clearing that is very necessary for a business student I get this during my internship. I also get knowledge about remittance rupee traveler cheques and also what type of method use to control work burden.
5.4.6.2 Responsibilities:
At very first days in my internship process I am involve in customer dealing in this process I fill deposit slips and cheques. And I also did the responsibility of photo copier operator. Many days during my internship operation manager give me calculation of withholding tax as assignment this is required by the clients of MCB for the purpose of submission of their tax returns. Demand draft register
also maintain during my internship. I am also check vouchers of whole branch during my internship that give me very keen information about the how many stamps are require for cheque process. I did duty as CSO and get the signature of the person new account holding. Some time I did the responsibility to fill the deposit slips for the customers who come for deposit and for those who come for online. Some days operation manager give assignment for binding of the account opening form and also said for checking the account opening form and differentiate the form that are incomplete from the completed forms. During my internship the audit of branch is conducted by the auditors of MCB and in these days operation manager said for checking the voucher of whole day and check them from all aspects either they are signed by all required authorities during their process. Someday our branch super-dent of cashier gives me assignment of checking signature of rupee traveler cheques. And the last assignment during my internship from the side of assets manager for arrangement of files of customer who got loan from the MCB CC&I branch this responsibility did by me for three days.
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5.4.6.3 Impact of internship on future career plans:

My internship gives me lot of benefit experience and much newness that do not know me before my internship. I did not experience about banking industry before my internship I got lot of experience about banking job. I enjoyed my internship very much and my internship influences me to follow banking job after my study life. I see the responsibilities of bank employees they done their work but after that they are totally free from tensions. But on the posit side it give me experience of dependent job such as casher not able to leave the cash counter up till closing of all day balance of receipts and payment if he failed to match 5 time in both he cant able to leave the bank. Like as casher every employee bound to close all days activities performed by him during whole working day. These point are influence me against the bank job and force me start my own business because in personal business everyone is free he do his job with his willingness. And also enjoyed the huge as compare to dependent employee. The
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social life of an employee also bonded because he go everyday for his job if absent from his job then boss verify by him why he is not on his job today. The internship at MCB will very helpful for me in future career because MCB is very large organization that helps me to achieve my job at completion of my study career. The experience of internship also very helpful me in my future study career because I am student of finance department in which banking knowledge is very repeatedly use in higher education.
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5.4.6.4 Relation of classroom and practical knowledge:

I got many things about banking set or during my study life that is not totally but many things that I read in books are different from the practical work just like pay in slip about it I read in my book it read green and pink color and different deposit slip for current account & saving a/c but in real it has single color and only single deposit slip use for current a/c and saving a/c. I had limited knowledge about a/c opening process in my study life but in real it much complicated for this many formalities fulfill after that new a/c would opened like KYC form is use to check the personal information about the new a/c holder that information also included in a/c opening form. The knowledge about clearing department in before my internship also limited but it also has many complications like as inward clearing outward clearing same day clearing general clearing. The classroom knowledge helps us in our practical life but it is very limited to perform tasks in job life. Accounting concepts that I studied also different in practical and in books. The management that we study in books is practically seen during my internship. When work with our branch cashier then I see the cash control that read in bookish knowledge. Bookish knowledge provides us direction of work but it is enough for working in organization because different type of innovations occurs day by day. It is very necessary to get training about that for facing the changes in present world.
6.1 Conclusion of Internship:

Internship is very beneficial for me in financial career I did my internship with dedication hard working that give me a lot knowledge about the realty of practical
work. Internship give me knowledge about financial department during my internship I learn the process of lending loan to the general public. I also see the importance of banking sector in our economy. I also learn theoretical as well as practical knowledge about banking sector banks run their business at a very large scale. The banking sectors is very expert in saving them from future loses. Banks lend loan to general by checking their past credit history they secure their lend by pledging the property of loan receiver. I learn the about the different policies to run their business in different economic situation. That helpful for me in future when I start my practical life in business industry. I also had opportunity to match my bookish knowledge with real practical career. I also concluded Pakistans banking industry need to improve in many aspects. The staff in our banks is traditional and they need to improve their knowledge about the changing in whole world banking industry. They need to train to operate online system the online banking system is very weak. The staff in banks are traditional they are not properly deal with employees. They had traditional view and not knew about the task of other they only done their daily work and also have knowledge about that. I got experience to face the customers that give me confident to face different people in my life. The behavior of employee at closing time is unethical with their customers. A banker is not a good banker if it not deal with their at their mental level so, that it is very necessary for a banker to show professional attitude dealing with their customer. I got professional attitude during my internship that is because in my life first time I am going to work in practical field before it only got the bookish knowledge. I got experience of practical during my internship did my task that are new for me in my whole career.
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6.2. General observation:

Banking sector is very much important for supporting to economy of country. It backbone of our industry it support to our trading, manufacturing and also for foreign trade. The job of banking is very difficult for employees before my internship my perception about banking job very different as compare to after the job. Work load in banking job is obese when I did my internship most employees
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work till 9:00 o clock. The behavior of employees with customer like small scale customer they deny for working at 2:00 pm mostly, it is for check out from the job at time.
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6.3. SWOT analysis: Strengths:

Muslim commercial bank is large organization in banking sector of Pakistan due to this general public relay on MCB. MCB has good reputation in banking sector of Pakistan. Because the MCB is the first privatize bank. Always follow the rules announce by the state bank due to this it save from the unseen risks. The product line of MCB is very vast they offer very attractive product to general public and also for organization. MCB has very lenient in customer dealing it give better facility of mobile banking. The policies of MCB are flexible it quickly adopt the technological changes as well as economic changes in banking industry. Highly qualified staff holds by MCB those work properly among customer requirement and also have a lot of experience in banking industry.
Weakness:
Majority of general public not aware about the products of MCB. High charges at ATM card as compare to other banks. Less job rotation among their task due to this specialty of employees low. Lack of time management that affect the employee turnover because employees work their task up to 7:00 PM.
The development process is very slow. The policy about collection of funds is not good it is more concentration on deposit and less on their mobilization.
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Opportunity:
MCB has opportunity to division of their deposit in financial market. It has opportunity to capture the financial market through its product like as RTCs, forex and by remittance department. MCB has qualified staff that has ability to capture the market by better utilization of time in working hours. This is opportunity to adopt the information technology to improve its customer service. MCB has opportunity to mobilize its accumulated deposit for generating funds.
Threats:
Government policies are hurdles in expansion of business because government imposes different types of formalities that are influence the banking business. High competition is also a threat for MCB different banks launch new strategies to capture the market. Employee union is also influence our polices about employees. High rate of inflation affect the customer buying capability.
7.0 Recommendations:
To enhance the profit of MCB to control cost for this bank should increase the current deposits. In competitive market there are need to improve the customer dealing of bank because customer always influence by the dealing of marketer/ customer services. There are need to follow the proper bank timing in some banks employee stop their public dealing at 2:00 PM. Bank should improve their training techniques and each employee have knowledge about overall banking operation. MCB should control its expenditure because the extra expenditure
affects the profit of the organization. MCB should control their employee turnover when one train employee leave the organization then for that post organization spend huge money for the training of junior employee. The employee turnover should be reducing through offering different rewards and incentives. I recommend the banking industry to send their employees in foreign for training because in our country the banking system runs over very traditional methods and techniques. Banking industry should also remove the old and lady staff and replace it with refresh graduate because new graduate have much more knowledge about the current world banking business. In our country the online system is very weak and to exist in today world it is very necessary to improve our online system. To follow the computerize system is very necessary many bank branches in Pakistan use computerize system but the staff in our banks yet not knowledge about operating this system. Improve their incentive to remove the large difference in salary of higher staff and lower staff by the help of this tool the work efficiency of lower staff must improve that directly affect the reputation of bank. MCB must improve its customer service because customers first perception is important in future relation of customer with bank. I recommend the MCB to open their branches in foreign to expand their business. I recommend to MCB the recruitment process must be on merit base because recruitment play important role in success of every organization.
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8 Refferences:
The material or books consulted for the preparation of the branch are as follows: Operations manual of MCB Bank Ltd M.C.B. Bank Ltd Official Web site. Credit manual. Compliance newsletters. Every staff member working in MCB CC&I Building branch Sialkot www.MCB.com.pk
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Akeel Hussain 11022720-130

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Akeel Hussain 11022720-130

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INTERNSHIP REPORT ON MUSLIM COMMERCIAL BANK LIMITED