INTRODUCTION

MCB is one of the leading banks of Pakistan with a deposit base of

about Rs. 280 billion and total assets of around Rs.300 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
following the Bank Nationalization Act 1947.

The Bank has a customer base of approximately 4 million and a

nationwide distribution network of 1,700 branches, including Islamic
banking branches, and ATM’s.

During the last fifteen years, the Bank has concentrated on growth
through improving service quality, investment in technology and
people, utilizing its extensive branch network, developing a large and
stable deposit base.

HISTORY AND BACKGROUNG

MCB Bank Limited (Formerly Muslim Commercial Bank Limited) has a

solid foundation of over 50 years in Pakistan, with a network of over
1700 branches.
Eighteen years after privatization, MCB is now in a consolidation stage
designed to lock in the gains made in recent years and prepare the
groundwork for future growth. The bank has restructured its asset

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portfolio and rationalized the cost structure in order to remain a low
cost producer.
MCB now focuses on three core businesses namely Corporate,
Commercial and Consumer Banking. Corporate clientele includes
public sector companies as well as large local and multinational
concerns. MCB is also catering to the growing middle class by providing
new asset and liability products. MCB looks with confidence at year
2005 and beyond, making strides towards fulfillment of its mission, "to
become the preferred provider of quality financial services in the
country with profitability and responsibility and to be the best place to
work".

Awards of MCB

MCB has become the only bank to receive the “Euromoney ” award
for the fourth time in the last five years for being the “Best Bank in
Pakistan”.
 Best Bank award 2008
 Best Bank award 2006
 Best Bank award 2005
 Best Bank award 2004
 Best Bank award 2003

MCB also won the

 Best Domestic Bank in Pakistan awards 2000

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In addition, MCB also has the distinction of winning the “Asia
Money” awards for being "The Best Domestic Commercial Bank in
Pakistan".
 Best Domestic Commercial Bank award 2005
 Best Domestic Commercial Bank award 2004

Mission:
“To become the preferred provider of quality financial services in the
country with profitability and responsibility and to be the best place to
work.”

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.”

Vision Statement:
“To be the leading financial services provider, partnering with our
customers for a more prosperous and secure future.”

GENERAL PROFILE

PRINCIPLES OF PERFORMANE

Customer Focus:

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Over the years MCB has developed strong relationships with its
customers by understanding their needs and treating them with
respect, dignity and importance. The driving force behind its
commitment and services is its focus on customers, ensuring that it not
only meets, but exceeds their expectations.

Quest for Quality:

MCB strives to achieve excellence by ensuring that every moment of
our time is spent in adding value, making sure that we do things right,
first time, and every time. With this quest for quality, MCB has always
taken initiatives in bringing banking into a new arena; from cash to the
convenience of plastic; from branch banking to internet banking and
from face-to-face customer interaction to online accessibility.

Employees Respect:
MCB encourages diversity and treat each of our employees with
fairness. MCB gives constructive feedback for their continuous
development and seek suggestions from all employees for further
improvement. The bank ensures that quality performance is
acknowledged and rewarded and exercise utmost responsibility in
decision-making with regards to our employees.

Team Based Approach:

MCB believes in achieving its Mission and Vision by working together as
a combined group. MCB treats its employees as its internal customers
and ensure that the requirements of internal customer focus are always
met. Equipped with in-depth product knowledge, and recognizing the
strengths in each individual, the bank strives for optimum-results from

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our co-workers and bringing out peak performances by working towards
common goals and objectives in today's dynamic banking environment.

Good Corporate Citizenship:

MCB seeks to continuously improve the quality of life in our
communities. The bank realizes that it has a responsibility to the
society in which it operates and it seeks ways of playing a positive role
for the betterment of the community at large for a progressive
environment, better living and a brighter future.

PRODUCTS AND SERVIES

Commercial Banking

Deposit Accounts:
Basic Banking Account:
A simple account to produce the habit of saving for beginners like
students. The account can be opened with only Rs. 1000, no minimum
balance required, no any monthly or annual charges applicable on this
account, two deposits and two withdrawals can be made in a month.
Also you can avail the facility of MCB ATM card and MCB smart card.

Pak Rupee Current Account:

MCB’s Pak Rupee Current Account offers you the convenience of
unlimited withdrawals i.e. access to your funds whenever you want

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without any notice. There is no limit on the number of transactions you
make in a day plus you can avail finance facility up to 75% of the total
deposit.
In addition, you have access to a countrywide ATM network convenient
cash accessibility 24 hours a day. The facility also provides you with
unlimited daily transactions with a limit on maximum withdrawal
amount through the ATM machines

Pak Rupee Savings Account:

MCB’s Pak Rupee Savings Account offers you attractive returns on your
Pak Rupee investment with a minimum balance of Rs. 10,000.
In addition, you have access to a countrywide ATM network convenient
cash accessibility 24 hours a day. The facility also provides you with
unlimited daily transactions with a limit on maximum withdrawal
amount through the ATM machines. You can also use MCB Smart card
and Locker Facility at economical charges.
Pak Rupee Term Deposit:
MCB Pak Rupee Term Deposit gives a higher rate of return. It gives you
choice of 1 month, 3 months, 6 months, 1 year, 2 years, 3 years, 4
years and 5 year term deposits.
Saving 365 The MCB Saving 365 calculates profits on a daily product
basis and gives you the facility of unlimited withdrawals.

Foreign Currency Savings Account:

MCB’s Foreign Currency Savings Account offers you attractive returns
on your Foreign Currency investment. You can invest in any of the four
currencies i.e. US Dollar, UK Pound Sterling, Japanor Euro Your foreign
currency account is exempted from Zakat and withholding tax.

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Foreign Currency Current Account:
MCB’s Foreign Currency Current Account offers you the convenience of
unlimited withdrawals i.e. access to your funds whenever you want
without any notice. There is no limit on the number of transactions you
make in a day.

MCB Foreign Currency Term Deposit:

MCB Foreign Currency Term Deposit gives a higher rate of return. It
gives the choice of 1 month, 3 months, 6 months, 1 year, 2 years, 3
years, 4 years and 5 year term deposits.

Smart Dollar Account:

The Dollar Khushali Account, a Dollar based account was introduced in
1993 at selected MCB Bank branches. Today, you can open a Smart
Dollar Account at over 200 branches in Pakistan with a minimum
amount of USD 10,000.

Business Account
With MCB Business Account you can avail higher number of free
transactions with higher balance. The account can be opened with Rs.
50,000. You can make free Deposits and Withdrawals from all nation-
wide branches.

Loan Products:

MCB Business Sarmaya:

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“MCB Business Sarmaya” is the best Running Finance facility against
your residential property which empowers you to manage your business
dealings better. So act today and get MCB Business Sarmaya and thus
improve your business, avail lucrative opportunities and expand your
business, with absolute satisfaction of cash flows.

MCB Car4u:
Life is like a chess board. You plan your career options. You analyze
your business moves. But when you really want to improve your life,
you make a power move. MCB CAR4U Auto Finance is the power move
that assists you in more ways than you ever imagined. It is affordable,
with lowest mark up 16%, flexible conditions, easy processing and
above all, no hidden costs.

MCB Pyara Ghar:

Some destinations require a long wait. Like waiting for a home of your
own. But with MCB Pyara Ghar it is now easy to step into your home
and start living a real life.
MCB Pyara Ghar is an ideal Home Finance from your own bank that lets
you Purchase, Renovate or Construct your home the way you have
always wanted. Having your own home was never so easy.

Easy Personal Loan:

MCB Easy Personal Loan provides you with the financial advantage to
do things you've always wanted to but never had the sufficient funds
for. Take that much-needed holiday. Buy a car. Refurnish your house.
Purchase a new TV. Finance a better education for your children.

MCB Master Card:

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Since the beginning of time, people have tried to find more convenient
ways to pay, from gold to paper money and checks. Today, money is
moving away from distinct hard currencies and towards universal
payment products that transcend national borders, time zones, and,
with the Internet, even physical space. Plastic or "virtual" money, credit,
debit, and electronic cash products, inevitably will replace cash and
checks as the money of the future.

MCB Rupee Traveler's Checks:

MCB Rupee Traveler's Checks were first introduced in 1993 as safe cash
for traveling and travel related purposes. The product has been
extremely popular and is preferred over cash by customers while
traveling and in all walks of life.
MCB Rupee Traveler's Checks- The safest way to carry Cash.

Corporate Banking:
Cash Management Services:
MCB’s network of over 1700 branches in Pakistan enables it to collect
and disburse payments efficiently with its cash management services.
This also enables it to offer you a choice of paper based or electronic
fund transfer solutions including collection amounts, cross branch on-
line transactions etc.
Working Capital Loans:
Based on the customer’s specific needs, the Corporate Bank offers a
number of different working capital financing facilities including
Running Finance, Cash Finance, Export Refinance, Pre-shipment and
Post- shipment etc. Tailor- made solutions are developed keeping in
view the unique requirements of your business.

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Term Loans:
MCB offers Short to Medium Term Finance to meet capital expenditure
and short term working capital requirements of our customers. The
loans are structured on the basis of underlying project characteristics
and cash flows of the business.

Trade Finance Services:

Under Corporate Banking MCB offers trade finance services that include
an entire range of import and export activities including issuing Letters
of Credit (L/Cs), purchasing export documents, providing guarantees
and other support services.

Online Services:
MCB ATM Services
With a solid foundation of over 50 years in Pakistan, with more than 750
automated branches, 269 online branches, over 222 MCB ATMs in 41
cities nationwide and a network of over 12 banks on the MNET ATM
switch, MCB is positioned at the forefront of the banking industry in
Pakistan. This success has been possible because of a never-ending
drive to achieve higher levels of excellence, constantly striving to raise
the level of performance.

MCB Mobile Banking:

At the forefront of technological excellence, MCB proudly introduces
MCB MOBILE BANKING. The convenience of accessing your account

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balance information and mini statements whenever you want or
wherever you may need them, with comfort and peace of mind.

MCB Call Center:

Keeping up with banking services can be tedious but not with MCB
Bank, where phone service is at your fingertips. Just dial our Call Centre
from the comfort of your home or office or wherever you happen to be.
It offers basic banking services for your convenience, eliminating the
need for you to make unwanted trips to your branch.

MCB Smart Card:

MCB now brings you MCB SmartCard -a secure and convenient
instrument of payment with unmatched functionalities. It provides 24-
hour direct access to your bank account.
The convenience and flexibility of MCB SmartCard will help you live a
smarter life. It not only helps you manage your expenses, but also
eliminates undue interest on your day to day credit card transactions.
Your balance is always within your reach and you spend accordingly.

MCB Debit Card:

Now MCB brings a secure, convenient and quick payment facility that
enables you to do purchasing by using your existing MCB ATM / MCB
Smart Card as a DEBIT CARD.
　
Virtual Banking:
MCB Virtual Internet Banking offers you the convenience to manage and
control your banking and finances – when you want to, where you want
to. MCB’s Virtual Internet

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Banking facility is simple and secure. And it is free of cost. With MCB
Virtual Internet Banking you can access any of the banking services, 24
hours a day, 7 days a week and throughout the year.
MCB Virtual Internet Banking offers a wide range of online services
which makes your banking accessible anytime and from anywhere.
 Detailed Account Summary of all listed accounts.
 Mini-statements of each of the listed accounts showing recent
transaction history for that account(s).
 Statement-by-Period of each of the listed accounts, based on the
period specified.
 Immediate or Scheduled Transfer of Funds between your own
accounts, as well as to third-party accounts setup as
beneficiaries, maintaining accounts with MCB.
 Scheduling of ‘One-Time’ as well as ‘Recurring’ Funds Transfers.
 Payment of utility bills for registered Utility Companies.
 Immediate or Scheduled Bills Payment. Scheduling of ‘One-Time’
as well as ‘Recurring’ bill payments. Option for ‘Full’ or ‘Partial’
payment based on the payment conditions specified by a
particular Utility Company.
 Bulk Salary Transfer for Corporate Customers, to facilitate them in
paying salary to the corporate employees, who maintain accounts
with MCB.
 Bulk Funds Transfer for Corporate Customers.
 Check Book Request for any of your listed accounts.
 Payment/Transfer Alerts for reminding, in advance, prior to the
processing of specified payments and transfers.
 Personal Alerts for reminding of pre-specified events and
occasions.

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Islamic Banking:
Deposit Schemes :
For customers who are looking for a deposit opportunity where they can
purse their funds and reap halal returns on it, we offer the following
products:
 Al-Makhraj Saving Account
 Al-Makhraj Ianat Account
 Al-Makhraj Term Deposit
 Fund Based Facilities
 Ijarah Products
MCB’s Islamic Ijarah, analogous to the English term 'leasing’, is based
on the ‘Ijarah wa Iqtina’ concept which means the sale of the asset to
the lessee after the Ijarah has matured. Under this scheme, MCB will be
the owner of the asset, and the customer (lessee) will be given the
asset to use for a certain period of time in return for monthly rental
payments. MCB will give a separate unilateral undertaking that it will
offer to sell the asset to the customer (lessee) at the maturity of the
Ijarah agreement at a price that may be equal to the security deposit
amount, hence the term ‘Wa Iqtina’.
Types of Ijarah:
1. Car Ijarah
2. Equipment Ijarah

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 Organizational Hierarchy

President

Senior executive vice president

Executive vice president

Senior Vice president

Vice president

Assistant Vice President

Grade 1

Grade 11

Grade 111

Assistant

Clerical Staff Non-Clerical Staff

1) Cashier 1) Messenger
2) Technical Staff 2) Dispatch Rider

The Organizational chart within deptt. & in different offices.

Head Office Regional Office Zonal Office Branch

Divisional head Regional Head Zonal Head Branch Manager

(SEVP) (EVP) (VP) (VP, AVP)

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 ORGANIZATIONAL STRUCTURE

Board of Directors:
Mian Mohammad
Chairman
Mansha

Mr. S. M. Muneer Vice Chairman

Mr. Tariq Rafi Member

Mr. Shahzad Saleem Member

Mr. Sarmad Amin Member

Dr. Muhammad Yaqub Member

Mian Raza Mansha Member

Dato' Mohammed
Member
Hussein

Mr. Aftab Ahmad Khan Member

Mr. Abdul Farid Bin

Member
Alias

Mian Umer Mansha Member

Mr. Muhammad Ali Zeb Member

Mr. Atif Bajwa President / CEO

Audit Committee

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Mr. Tariq Rafi Chairman

Dr. Muhammad Yaqub Member

Dato' Mohammed
Member
Hussein

Mr. Aftab Ahmad Khan Member

Mr. Muhammad Ali Zeb Member

Mr. Malik Abdul

Member
Waheed

Human Resources Committee

Mian Mohammad
Chairman
Mansha

Dr. Muhammad Yaqub Member

Mian Raza Mansha Member

Mr. Shahzad Saleemn Member

Mr. Atif Bajwa Member

Risk Management & Portfolio Review

Committee
Mr. Shahzad Saleem Chairman

Mr. Tariq Rafi Member

Mr. Sarmad Amin Member

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Mian Raza Mansha Member

Mian Umer Mansha Member

Committee on Physical Planning, IT System &

Contingency Arrangements
Mr. Sarmad Amin Chairman

Mr. S. M. Muneer Member

Mr. Tariq Rafi Member

Mian Raza Mansha Member

Mr. Abdul Farid Bin

Member
Alias

Mr. Atif Bajwa Member

Business Strategy & Development

Committee
Mian Mohammad
Chairman
Mansha

Mr. S. M. Muneer Member

Mr. Shahzad Saleem Member

Mian Raza Mansha Member

Dr. Muhammad Yaqub Member

Dato' Mohammad
Member
Hussein

Mian Umer Mansha Member

Mr. Atif Bajwa Member

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Chief Financial Officer
Mr.Salman Zafar Siddiqi
ENTITY RATING
MCB has the following Entity Ratings from the Pakistan Credit Rating
Agency Limited (PACRA):

Short Term A1+

Long Term AA

Definitions by PACRA:

“A1+” (A one plus)

These ratings are applicable to senior unsecured creditors (depositors)

of the bank. A plus (+) appended to a rating denotes relative status
within major rating categories.

“AA” (Double A)

These ratings denote a very low expectation of credit risk emanating

from a very strong capacity for timely payment of financial
commitments.

4. MCB’s Competitive Strategies

To be competitive the Bank has further reinforced its position in the
Consumer Banking arena by streamlining and re-launching the
consumer financing products and introducing more convenience based
solutions. With the re-launch of auto finance and house finance

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products, the Bank pushed the products with full thrust. The Bank has
also launched a running finance facility against mortgage of property.
Technology continued to play an important role in improving and
expanding product offerings.
The Bank introduced more IT based products to cater to the changing
lifestyles and needs of the customers.
MCB Virtual-Internet Banking was launched with wide ranging banking
solutions for the customers ranging from individual to corporate
customers and it has become the most preferred Internet banking
solution in the country.
MCB also had the privilege of being the first Bank in Pakistan to launch
the comprehensive bill payment facility through its alternate delivery
channels which include Internet Banking, ATMs and MCB Call Centre,
currently with six payment partners. Similarly, the Bank also took
initiatives to increase the usage of debit facility. To provide timely and
updated information, MCB has also provided a new look to its website
which is user friendly and considerably easy to browse.
The Islamic Banking initiative has been very successful in attracting
new customer, both individuals and companies. Similarly, those
relationships, which were confined only to current account facility, have
grown into stronger business relationships. The branch network was
expanded to Lahore and Multan during the last year and recently been
extended to Hyderabad and Faisalabad. The Bank plans to further
expand its Islamic Banking branch network to other metropolitan areas
and also to introduce new sharia compliant banking solutions to a wider
range of customers for satisfying their individual and business needs.
Some wide-ranging new strategic initiatives were also taken up which
will be important for the Bank in years to come. A private company has
been formed in Hong Kong (fully owned subsidiary of MCB) in

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partnership with Standard Chartered Bank, handling trade transactions
of select countries in the Asia-Pacific region. It is projected to earn US$
1 million in its first year of operations. To increase its international
presence, the Bank will be opening its representative office in Dubai
and entering into major strategic alliances with banks in the UAE/
especially for marketing our consumer banking products to non-resident
Pakistanis.
Furthermore, feasibility is also being carried out for entering other
international markets.
MCB's operations continued to be streamlined with focus on
rationalization of expenses, re-alignment of back-end processing to
increase productivity, enhancement of customer service standards,
process efficiency and controls. The Bank has taken the lead in
introducing the innovative concept of centralizing Trade Services in the
country by providing centralized foreign trade services to branches with
a view to improve efficiency, expertise and reduce delivery cost.
Management of Human Resources has been one of our core focus
areas. MCB is committed towards attracting, retaining and motivating
outstanding people. Challenge for MCB is to provide an environment in
which employees can better realize their potential. The Bank introduced
'reward for performance' where high potential officers were identified
and rewarded accordingly. In view of the competitive environment, the
Bank is focusing on performance and introducing a more robust
performance management system.
MCB is also strongly committed to training its staff at all levels.
The Bank will also be implementing the full suite of the latest version of
SYMBOLS Version 8. MCB Bank will run SYMBOLS E-Finance modules to
deliver personalized services to its customers over multiple delivery
channels, while SYMBOLS Enterprise Operations Center will serve as its

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core banking transaction-processing engine. By implementing
SYMBOLS, MCB Bank aims to raise the level of its customer service and
its time to market in new product offerings for its three core banking
businesses in Corporate, Commercial and Consumer Banking - retaining
its market leadership as Pakistan's progressive Bank.

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The following activities have been done during the time period of
internship. The activities given below are on the weekly basis. Mainly
during the internship I worked in all the departments and learned the
working and procedures that are necessary for the processes.

First week: (06 July 2009 to 11 July 2009)

• Observed basic business process
• Observed movement of customers and Employees inside the
Branch
• Learned basics of Account Opening
• Opened Accounts of GOVT employed persons
• Opened PLS saving Accounts
• Opened BBA accounts
• Opened Student account
• Worked as CSO(Customer Service Officer) because CSO was on
leave and performed the following activities:
o Attended phone calls
o Attended customer inquiries
o Received ATM forms
o Received and entered daily DAK
o Filled cheaque book requisition slips
In first week I observed the basic business process. At the end of each
day I totaled the electricity, water, telephone and check amounts.
Mostly the total was correct. But sometimes when the total does not
match with the sheet of the PRINTING I had to do it two or even three
times.
Process:

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Account opening is the basic procedure to create a relationship
between a customer and a banker. When a customer opens his/her
account it increases the business of the bank. The following steps are
taken while a new customer enters in a bank for opening his/her
account. These steps are;
• When a customer wants to open an account the authorized officer
gives him/her an account opening form. This form is known as
“RELATIONSHIP CONTRACT FORM”. This form is filled out with
the hands of the customers.
• All the required fields that are mandatory for account opening
should be filled compulsory. These are the fields like title name of
the customer, occupation, address of the customer, phone no’s,
correspondence address, e-mail address, etc.

(a) requirements for opening an account for the

individual;
In case of employed person
• Copy of CNIC
• Salary slip
• A letter from employer
• Initial deposit of Rs.100 to 1000.
• Photo copy of utility bill
In case of non employed person
• Copy of CNIC
• A letter from Dist. Nazam
• Initial deposit of Rs.100 to 1000.
• Photo copy of utility bill.

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 (b) requirements for opening an account for the
partnership;
• Copy of CNIC
• Copy of CNIC of all the partners
• Request letter of account opening
• Company letter head
• Copy of registered certificate (if registered)
• Signature specimen duly attested
• Initial deposit may be from Rs.100 to 1000
In both cases there is some amount which is fixed for opening current
and saving account that is;

►For opening current account Rs.10, 000 is required.

►For saving account Rs.5000 is the limit.

• After all these requirements, the authorized officer attaches two

signature specimen forms called SSC and one requisition form.
On which the authorized officer put his/her signature and pasted
signature admitted and verified and bank stamp on it.
• Along with this form the copy of CNIC and a Verisys form and form
known as (KYC) is attached with it.
• At the last a separate file is maintained for each of the customer
for bank’s record.

Second week: (13 July 2009 to 18 July 2009)

In the second week of my internship I learned about Cheaque book,
Debit card and Alico products. Some details are as follows:
• Learned About the Requisition request of Check for new Account

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 • Learned about the issuance of new cheaque book.
• Filled the ATM request forms
• Learned how to issue the ATM cards
• Learned how to issue the ATM Pins
• Got basic information about Bank Assurance offered by Alico
• Learned about various offers of Alico
• Learned about the installments of assurance account
• Learned about the Terms and conditions of Alico.

(A) Process of getting the new Check Book.

After opening an account, a letter of thanks is sent
to the customers from the Circle Office after 2 or 3
days. After receiving that letter a customer can obtain
his/her check book from the bank. But while customer is coming to the
bank for receiving his/her check book this letter of thanks should be
with him.

These are the following steps that are used for gaining check book:
• The customer brings the letter of thanks and give to the
authorized person. The person fills the check book requisition slip for
the customer and takes his signatures. Then the authorized person
saves that slip in his record and fills another slip and fwd to Karachi
via NIFT and customer is asked to come after 5 days.
• After 5 days cheaque book is given to customer after taking his
signature in a separate register But in case if ;
(a) Customer is new than after taking letter of thanks check books
would be hand over to him/her.

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 (b) But in other case if customer is not new he is a regular
customer than at the end of each check book a requisition slip
is attached. So whenever a new check book would be needed
the customer will put his/her signature on it and submit it to
the authorized officer.

(B) Process of getting an ATM/DEBIT card

The following steps are taken while issuing an ATM/DEBIT card. When
an ATM or Debit Cards issue, the following steps are needed:
• A copy of CNIC
• A minimum Rs.550 should be in respective account.
After filling up all the required documents for ATM card these
documents are given to the authorized person who pasted a verification
stamp on these documents and signing on it. And at the end, after 5
days the person is called again to hand over ATM card after taking his
Signatures.

(c) Process of getting an ATM/DEBIT card Pin

When the customer is given ATM card he goes to another Person to get
his/her secrete Pin code. The person take the signatures and give it to
customer. Then Customer goes to CSO and activates his CARD.

Alico Products:

Alico offers various products for persons belonging to different age

groups. The purpose is to provide the insurance side by side with
savings. Some of them are given below:

 Income Max
 Current Life Account

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  Capital Sure
 Flexi Life
 Har Pal Mehfooz
 Life Partner
 Dream Weddindg
 Retire Easy
 Edu Care

Third week: (20 July 2009 to 25 July 2009)

The main objective is to know about the different functions of cash
department. Cash handling etc.. Although internees were not allowed in
cash department because of sensitivity of matter, they provide me
maximum possible knowledge, and I spent few time in cash.
 Learned basic things about Cash department
 Learned how to write Cash book
 Signature verification
 Cash Deposit slips Processing
 Intercity Cheaque Processing
 Arranged an event to give Customers awareness about Alico
 Made a list of Valued customers
 Made invitation letters for customers
 Arranged necessary items for the Event
 Filled Cash deposit slips
 Filled some cheaques for aged persons

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  Filled cash deposit slips for online Deposit

Process:
• In Cash department customer after filling up the checks, bonds
etc give it to the authorized office. The following information are
required for further preceding of the check;
›Name of the customer
›Exact amount in words and figures
›Code of currency
›Date of the check
›and signature of the Customer
• After providing all the above mandatory places check is hand over
to the relevant person.
• The authorized person after receiving Checks or bonds puts bank
stamp on it
• Checks the balance of the customer account.
• Verify the signatures of customer
• Then gives the cash to the customer.

Some important things that must keep in mind while filling up a

check:
a. The check should be enchased on that date which has to be
written on the check
b. No cutting/overwriting is allowed
c. Signature should be matched with the ID card signature
d. On the back of the check there should be the sign of the
issuer

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I learned that how to accomplish different tasks like deposit, credit
cards slips, and as well as bonds. I also learned that how original
Checks are identified.

Some important things that must keep in mind while filling

deposit slips:
a. No cutting/overwriting is allowed in amount
b. Amount should be same in words and figures
c. For online deposit a copy of CNIC of depositor is necessary

Fourth Week: (27 July 2009 to 01 August 2009)

Fourth week I spent in Remittance Department and learned following

things:

• Learned basic operations of remittance department (PO, DD)

• Learned how to make entries and vouchers of incoming TT
• Made vouchers and entries for Incoming TT
• Learned the difference between DD and PO
• Observed other operations e.g. PO (Pay Order), DD (Demand
Draft)
• Learned bank charges for PO, DD, TT & MT (Mail Transfer)
• Learned how to make entries and vouchers for Outgoing
TT(Telegraphic Transfer)
• Made few Outgoing TT
• Learned & Made Inter-Branch Credit Advices against the checks
received from outer city branches

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 • Learned how to make entries and vouchers for Outgoing
TT(Telegraphic Transfer)

With these activities, also observed the other activities. The remittance
officer also has to pass the entry that is entered by the cashier. The
cashier enters the amount of check and the check number. Then the
remittance officer enters the password and passes the entry. If the
remittance officer is present on the seat then the operation manager
has the authority to pass the entry. It is actually based on the amount
of the transaction. When the amount of check exceeds a specific
amount of Rs. 200000 the remittance officer has to pass that. And when
the amount increases to Rs. 500000 the operation manager has to pass
that entry. To open the customers account and to keep information of
each of the customer separately so that when information is needed
can be obtained easily.

Learned basic operations of remittance department. Remittance

department deals with the foreign remittances. First of all the
remittances are received in the post. Normally two types of remittances
come. One is credited to the accounts in our branch and the other is to
be given in cash to the holder of the XPIN. One advice is normally made
for all the advices that are to be credited to the accounts.
Then the relevant advices are made. In the advices, originating branch
is Dharampura Branch. PNSC Branch is written in the responding
branch. The code for the originating branch is 0992 and for the
responding branch code is 0069. Current date is written in the date
field. The amount is written in the relevant fields in figures and in
words. In the favoring, we write the name, account numbers, DD
numbers and the amount in front of every beneficiary. Three copies are

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prepared for each advice. One advice goes to CSO for record. One goes
for cashier and one goes to the clearing department for entry in the
computer.

Fifth Week: (03 Aug 2009 to 08 Aug 2009)

• Learned how to Issue the CDR
• Made vouchers and entries for CDR
• Made few CDR
• Learned how to manage CDR register
• Learned payment against CDR
• Balanced the CDR Head of GL for 31 July, 2009.
• Learned how to issue a PO
• Made Debit vouchers against the PO & DD charges
• Made Credit vouchers (contra) against the PO & DD charges
• Learned how to make DD and PO
• Made outgoing Clearing
• Made local clearing
• Made intercity clearing
• Made return clearing
The Fifth week is from 3rd July, 2009 to 8th July, 2009. The main objective
of this is to know about the demand draft (DD), pay order (PO), and
cash deposit receipt (CDR). To know about these entire why all these
documents are used. And how much charges have to be paid for
making all these.

(a) Procedure of making Demand Draft (DD) and Pay Order

(PO):

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Out of the city DD is used, DD is made through Check and Cash. Rs.50
is charged on cash slip and in case of check slip Rs.220 is charged. PO
is made within a city. It is also in the form of Cash and Check. Rs.50 is
charged on cash and Rs.220 is charged on check slip.
• If a regular customer wants to make DD or PO then in this case
he/she has to fill up a form. This form is known as “FUNDS
TRANSFER FROM”; on making this DD/PO Rs.50 is charged for
making this in case of account holder but for non account holder
Rs.220 is charged.
• In the form all the mandatory places are compulsory to fulfill.
Like, currency of instrument, type of remittance, beneficiary
details, particular of applicant, applicant signature etc. these are
such requirements that must be fill up.
• And at the last the authorized officer puts his/her signature on
DD/PO form and three stamps are pasted on it;
a. Transfer stamp
b. Signature verified stamp
c. Crossing check stamp ( in case if half payment is made
through cash form, then a check is fill up for this and
attached with the DD/PO form)
• And at the last the operational manager puts supervision on this
and all the records are transferred into computer for bank
records.

(b) Procedure of making of Cash Deposit Receipt (CDR):

CDR is used locally. It is also in from of Cash AND Check. CDR has
no charges.
• A request form is filled by the hands of the customer for making
CDR. This form is known as “CREDIT DEPOSIT FORM”.

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 • In this form some requirements are compulsory which has to be
full up these are check no, the person name to whom it is going to
be transferred, signature specimen, date etc.
• After all these the verification stamp, check transfer stamp, and
signature verified stamp is pasted on it.
• And at the final stage, all the transactions are recorded in a
register for keeping banks records.
• I learned that how DD’s, CDR’s and PO’s are made. And how
many charges are applied on it.

In this week I was a bit for remittances that are to be paid in cash, one
advice is made for each of the remittance. The person comes in the
bank with the XPIN. He gives it to us. With XPIN he gives the photocopy
of the CNIC. One advice is made for him. Three copies are prepared for
each advice. One advice goes to CSO for record. One goes for cashier
and one goes to the clearing department for entry in the computer.

Procedure for outgoing clearing

I also made out going clearing, for outgoing clearing a list I made an
excel sheet of all bills having depositing account number, amount and
cheaque number then separated bills from slips then posted various
stemps on bills and slips as follows
 Clearing stamp of next date on front of bill
 Accounts credited stamp on back of bill
 Clearing stamp on front of deposit slip

Procedure for intercity Clearing

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I also made intercity clearing. For Intercity Clearing a stamp of intercity
posted on face of bill, then amount, acct number and city name is
entered in a separate register and deposit slip is attached in a specific
file. And a stamp is posted on back of bill. A separate slip is filled for
every city given by NIFT. In the specified envelope is used for every city
given by NIFT with printed name of city.

Sixth week: (10 Aug 2009 to 15 Aug 2009)

(FINANCE,PUBIC DEALING, TDR)
• Learned about dormant account.
• Learned about the activation of dormant account
• Learned about TDR
• Learned how to make TDR
• Learned basic types of financing
• Studied a Running Finance Case
• Learned about instant finance
• Learned about the different documents required for Credit
Investigation
• Studied Financial statements of a client company
• Learned about the documents required for Running Finance
• Learned the Concepts of Demand and Cash Finance

To become familiar that how a customer account change into dormant

account.
Process:
• An account is closed when a customer does not make any
transaction in his/her account till 90 days.

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 • A letter is send to customer to inform him/her, and in case if bank
does not receive any response from customer’s side then the
account of customer becomes “DORMANT”, after that a
customer cannot make any DR or Cr transaction in his/her
account.
• But in case if a customer draws a check in dormant account then
it is returned back from the clearing department with a stamp of
“dormant account”.
• After that customer cannot make any type of transaction in
his/her account.

Procedure for activation of a dormant account:

a. The customer has to given a written request for activation
of the account.
b. Copy of CNIC.
c. And a Debit transaction on the same day is made.
After working in this area I learned that what things are compulsory to
running an account and how we can avoid the dormant account.

TDR (Term deposit receipt):

Procedure:
TDR may be issued for 2 months or 3 months but calculation is made on
daily basis.
›A term deposit receipt has to be filled for TDR on which the following
mandatory places have to be fulfilled:
• Received form
• Amount
• Deposit period

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 • Amount in figures
• And account number

›After the whole information is recorded into the computer system.

›And prepare TDR is given to the customer.

Seventh Week:
• Made GL (general Ledger) analysis
• Analyze different heads of Assets, Liabilities, Income, and
Expenses.
• Made Annual Expanses increase Analysis
• Filled ‘Credit Proposal’ cum Sanction Advice MCB Instant
Financing, BBFS (Borrower Basic Fact Sheet) and Application for
Finance for renewal of 3 cases of CF.
• Studied credit proposals.
• Studied Credit Scoring and Risk Rating for the clients
• Studied classification of customers in the categories
 Substandard
 Doubtful
 Loss
In the last week of my Internship Manager offered me to learn
something of managerial level which I accepted happily. So manager
gave me data and asked to analyze the difference of expenses of July
2008 and July 2009 because there was a major increase in Expanse
account. So I analyze different sub account and separate 6 accounts
showing major increase, I also separated 6 accounts which were
showing major decrease.

Online transactions and Lockers

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Objective:
The objective is to learn about the money grams how they make? And
to know about the lockers and as well as to get knowledge that how
online transactions are done.

(a)ONLINE TRANSACTIONS
Procedure:
In on line transaction the process is so simple in this the client receives
a request form from the customer for online transactions. In such case
customer presence is not compulsory. In this the following requirements
are necessary to keep in mind. These are:
 Sender name,
 Customer account number,
 Bank and branch name,
 Check no,
 Beneficiary branch no,
 Total deposit and date.
An online check is received form customer along with the print out of a
voucher is attached with the check. And three stamps are pasted on it,
these are;
 Clearing Stamp
 Intercity stamp
 Transfer Stamp
 And then in the last entry of an online check is recorded in
the register for maintaining bank records.

(b) LOCKERS
Procedure:

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●whenever a new customer wants to operate locker he/she signs on a
SSC card. And a separate register is maintained for this purpose.
●and after that whenever customer wants to operate the locker than
the authorized person takes the customer signature on the maintained
register. And these signatures are matched with the SSC card
signatures.
●only relevant customer is allowed to operate.

Learning:
After working in this area I learned what money gram is and why it is
used for? And as well as I also learned about the online transactions and
the procedure used for lockers.

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 Summary and recommendations
Overall summary

In a nut shell it can be concluded that the overall performance of the

bank is quite satisfactory. MCB's total assets, investments, deposits and
equity has increased but profitability has decreased by a soaring
percentage of 58.23%. The reasons which I have traced out of my
analysis and studies are as follows;
• Increased financial costs of funds for which expected investment
revenues did not open up.
• Return on lending has been reduces
• Bank has increased its classified advances by 35% to fulfill the
requirements of Prudential Regulations. The fresh increase is
mainly 51% in the other assets especially mentioned

IBIT - 41 -
 classification. According to the prudential regulations
requirements, accrued markup cannot be credited to income but
to suspense A/C.
• During the year 2008, the economy of the country remained in
sluggish. In spite of various policy measure initiated by the
government for confidence building of the domestic and foreign
investors and steps taken such as:
o Creation of small and medium entries development
authority (SMEDA).
o Financing under prime minister's self employment scheme.
o Launching of Mera Ghar scheme etc.
o For revival of economy, the expected investment
environment could not be created and economy did not pick
up.
• The large number of non-commercial banking institutions (DFI's
and NBFI's) also competed for limited resources and investment
avenues- thus further narrowing the spread of banking industry.
• Although, economic sanctions imposed as a result of nuclear blast
and the country's level of foreign debt and directly impending
economic growth, but the debt rescheduling at the Paris Club and
large financial commitments by the multilateral agencies will
improve country's external position and provide a sound footing
for medium term planning. In this improved and stable economic
environment, the bank will get opportunities and by making
sincere efforts can increase its profitability and equity.

Previous year is expected to pose a tough market environment.

Shortage of rains and electricity can seriously impact overall GDP
growth. The tight monetary policy is impacting the country's exports

IBIT - 42 -
with a ripple effect on the manufacturing sector. The documentation
drive, which is good for the country over a long period of time, is being
expectantly viewed with concern by certain segments. The combined
impact of these factors may cause a slowdown of economic activity in
certain pockets of the economy.
On the positive side, the resolution of issues in political and pragmatic
handling of the documentation deive by the government and
continuous efforts to normalize international relations should bring
positive results.
MCB is and will positioned and flexible enough to operate effectively in
the changing scenario. We will continue to broaden our customer base,
harnessing the growing strength of the MCB brand and expand the
platform to provide value based propositions to our customers.

Specific requirements for the organization

1. Banking today has entered into a new era of computer
technology. With introduction to intern on line banking, the
distance between branches has reduced in such a way that a
customer maintains his account thousands of kilometers away.
Branches avail full facilities from other branches. This facility is
very common in foreign banks. My suggestion is that like many
other sectors of banking MCB should also take a lead in this

IBIT - 43 -
 sector.
2. As discussed above, this is an age of computer technology and
the banks having skilled working (in computer technology) will
certainly be able to attain a faster growth rate. My suggestion is
that MCB should stress upon its employees to learn computer
technology and following incentives should be given to them for
this purpose.
3. Special training programs at staff colleges or computer training
institutions should be arranged.
4. Interest free loans to employees for purchase of personal
computer may be extended.
5. Special allowances for computer training will also help in
achieving desired goals.
6. It is a fact which cannot be denied at any stage that both ladies
and gentlemen are facing great problems which they deposit
utility bills no proper counter is available. People have to stand
outside the bank peeping in the window. The collector sitting
inside the bank does not care anything and doing the job at his
will/desire. This must be improved providing adequate facilities to
customers.
7. Loan advances to bank employees are free from interest that is
why huge amount is taken as loan. This is not good as they are
availing other benefits from bank like bounces etc. Restriction
must be imposed up to specific limit.
8. After privatization is seen that attitude and mal-treatment of staff
towards people has considerably changed ethic has promoted the
business a lot, further improvements also depends upon more
good behavior.
9. Now a days a large number of books / documents / registers are

IBIT - 44 -
 being prepared on computerized system. It saves time. All other
books may be computerized if possible to avoid error and
mistakes.
10. New recruitment should be made on merit basis so that efficient,
honest, hardworking, reliable and dependable persons may be at
hand to run the bank easily on sound profit.
11. Bank should make a plan to gear up its recovery efforts on war
footings and re-organize the recovery function on global basis.
12. Bank should tighten up a control on expenditure.

At the end I wish for a rapid and successful growth and prosperity
of MCB bank limited which is already known as a progressive
bank.

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 Specific recommendations for IBIT to improve its
curricula and methods of teaching to MBIT
students

As the students of MBIT I learned a lot from respected teachers who

always found cooperative, helpful, and kind the know which I gained
from them is treasure for my whole life belongingness and affiliation
with teachers and the department that is why when I rewind the last
two and a half year. I was unable to find out any weakness in any of
them.
Following recommendations are only places for the improvement and
betterment. These are only the step which I think should be taken to
achievement.
● Degree of business education need recognition there should be
effective advertising for awareness of people.
● Faculty of MBIT department is not sufficient to satisfy the
educational need of students. Department lack experienced,
skilled and professional permanent faculty so new teachers
should be appointed.
● Case study should be major part of the studies because it creates
more confidence in the students. So they could be able to adjust
in multicultural organization.
● It courses teachers only instruct it thorough books or slides while
practive in terms of concrete work in labs is lacking. That is why
the students of IBIT remain always confused what he knows in it
in real sense. The market demands us much in the field which we
normally failed to provide them.
● Favoritism of teachers towards some specific students not only
give that student credit through unfair means but also upset and

IBIT - 46 -
 dampen the spirits of others. The students who spend more and
more time in the office of teachers get good grades more easily.
So there should be proper check and balanced on this issue.
● At the end MBIT burden should be reduced. Stress should be
given on practical and field work instead of bookish knowledge.
● The specialization must also be offered in more areas like HRM.

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 Specific recommendations for institute for the next
internship in this organization

Department should provide proper guide line to the students during

learning about their practical application in the field of business
so that students becomes familiar with business environment.
Our department must have developed close relations with reputed
organizations adequate help for management of internship can
provided to the students.
The department should try to promote IBIT as a prestigious institute
for clearing and pay attention toward its promotion and
advertisement in business sector.

The department should maintain a record of all its old students working
in various fields and present them as a source of motivation inspiration
for the present students in the department.

1. Practical field is quite different from theoretical knowledge. So an

internee should adopt himself / herself to know situation. He / she
should be able to get firsthand knowledge.
2. Have the quality of confidence.
3. Have a good communication.
4. Should be able to judge the situation.
5. Should have effort to doing best.
6. Have flexibility in opinion making.
7. It is golden rule for relaxation, satisfaction and success.

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MCB bank limited is an attractive and suitable corporation for the
internees as it provides excellent learning opportunities to the students.
Its culture is so inspiring and working structure is so impressing that it
motivates to work. All staff members are very cooperative and helpful
in providing guidance during internship. It is good place of learning for
future job.

IBIT - 49 -
 REFERENCES

www.mcb.com.pk

www.google.com

MCB Brochures
Manuals

IBIT - 50 -