CHAPTER: 01

Introduction to MCB Bank

MCB is one of the leading banks of Pakistan with a deposit base of more than Rs. 600
billion and total assets of around Rs.800 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. This led to deterioration
in the quality of the Bank’s loan portfolio and service quality. Eventually, MCB was privatized
in 1991.

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 and managing its non-performing loans via improved
risk management processes.

Golden History of MCB Bank

Before separation of Indo Pak, the need for more Muslim banks was felt. Muslims
having strong financial capacity were thinking to invest in this sector as well. This was the idea
which paved the way for setting up Muslim Commercial Bank Ltd known as MCB. This was
the third Muslim bank in the subcontinent.

This bank was incorporated under companies’ act 1913 on 9th July, 1947 (just before
partition) at Calcutta. But due to changing scenario of the region, the certificate of incorporation
was issued on 17th August, 1948 with a delay of almost 1 year; the certificate was issued at
Chittagong.

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 The first Head office of the company was established at Dacca and Mr. G.M. Adamjee
was appointed its first chairman. It was incorporated with an authorized capital of Rs. 15
million.After some time the registered office of the company was shifted to Karachi on August
23rd, 1956 through a special resolution, now recently the Head office of MCB Bank has been
transferred to Islamabad in July, 1999 and now Head office is termed as Principle Office.

REVOLUTIONS IN MCB

Incorporated in Calcutta, India on 9th July 1947

First chairman – Mr. G.M Adamjee
Head office was shifted to Dhaka in August 1948
Head office was shifted to Karachi in august 1956
Nationalized on 1st January 1947
Privatized on 8th April 1991
Fist chairman after privatization – Mr. Mian Muhammad Mansha
Head office transferred to Islamabad 1991

Nationalization

This institute was nationalized with others on January 1st, 1974. At that time it had 506
branches and deposits amounting to Rs. 1.640 million. Although. MCB has a reputation of a
conservative bank but nationalization also left its effects on this institute as well and by end of
year 1991 in which it was privatized the total deposits amounting to as high as Rs. 35,029
million.

Privatization

When privatization policy was announced in 1990, MCB Bank was the first to be
privatized upon recommendations of World Bank and IMF. The reason for this choice was the
better profitability condition of the organization and less risky credit portfolio which made'' it a

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 good choice for investors. On April 8th, 1991, the management control was handed over to
Nishat Group (the highest bidders). Initially only 26% of shares were sold to private sector at
Rs. 56 per share.

After Privatization

23 years after privatization, MCB Bank 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 portfolio and rationalized the cost structure in order to remain a low cost
producer. After privatization, the growth in every department of the bank has been observed.
Following are some key developments:

 Launching of different deposit schemes to increase saving level.

 Increased participation on foreign trade.
 Betterment of branches and staff service level.

MCB Bank Today

MCB Bank today represents a bank that has grown with time, experience and Pakistan. A major
financial institution, in scope and size, it symbolizes a fully growing tree evergreen, strong, and
firmly rooted.

MCB Philosophy

MCB Bank knows the best to deal with its customers and thus has a customer
oriented philosophy. The MCB philosophy in their words is described below :

“For us, you are not just a set of numbers; you are a valued customer whom we know by
name. This helps us serve you exactly the way you want us to – that’s the difference! We offer
effective solutions derived from our personal knowledge of all your banking requirements
which are met when we meet you…by name.”

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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.

Core Values of MCB Bank

 Integrity
 Respect
 Excellence
 Customer centricity
 Respect

Objectives of MCB

The following are the objectives of MCB Bank Limited.

 Creating and managing values

The first objective of MCB Bank Limited is to create and manage the values, which is one of
the back bone of the objectives of any well organized and managed organization.

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  Human Capital

The second objective of MCB Bank is to take care of the Human capital which is a necessary
thing for the development and prosperity of any well-established organization.

 Best Place to Work

The third objective of MCB Bank Limited is to make it a place which is much feasible and
comfortable for employees of the bank. The MCB is always conscious in developing such place
where employees of the bank feel easiness.

 Technology

The forth objective of MCB Bank Limited is to bring new and latest technology in the
operations of the bank. MCB Bank’s strength lies in providing a technological base at the grass
roots level of the society with a challenge to educate and assimilate such systems across vast
cultural and economic backgrounds. With over 1150automated and online branches, over 600
MCB Bank ATMs in 45 cities nationwide and a network of over 16 banks on the MNET ATM
switch, MCB Bank continuously innovate new products and services that harness technology
for the customer’s benefit.

 Understanding convenience

The next objective of MCB Bank Limited is to make understanding a convenient thing for the
whole environment of the bank. Convenience is what the customer is looking for; and this is
what we at MCB are continuously striving to provide. Whether it is the 24 hours cash
convenience of our ATM network or the easy availability of financing requirements or simple
opening of account, MCB has tailored its products and services to make your life easier.

 Understanding reliability

The last but not least objective of MCB Bank Limited is to make an environment which have an
understanding of reliability in the whole structure of the bank.MCB speaks their language; it
understands their needs and provides tangible results. By responding in a timely manner with a
flexible approach, MCB provides its clients with the reliable financial services.

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PRODUCTS
1) CURRENT DEPOSITS

i) Current Account (CUR)

It is a non-profit account with no restriction on transactions it is opened with an initial deposit
of RS. 1000 and it is required to maintain minimum balance of RS 10000/ if balance goes below
this limit monthly Rs 50 are deducted as service charges according to Schedule of Bank
Charges (SOBC)..

ii) Basic Banking Account (BBA)

It is a non-profit account with no requirement of maintaining minimum balance. It is opened with
an initial deposit of Rs 1000, and there is no need of maintaining a minimum balanceVirtual
Banking, Mobile Banking and ATM are offered in it. No Zakat is deducted on this account.

iii) Current Life Account

A Non-profit bearing account with the benefit of Free Life Insurance Cover. More the balance
maintained, higher the cover. Account activation deposit is 1000, and minimum balance
requirement is PKR 25,000.

iv) Business Account

It is a Non-profit bearing account for Businessmen who can maintain high deposits and get Pay
orders, Demand drafts, multiple cheques and need many account statements. This account is
opened with a minimum deposit of PKR 1000.

v) Foreign Currency Current Account

It is a non-profit bearing foreign currency account with no limit on transactions. It is opened
with deposit of USD 500 and minimum balance maintenance requirement is USD 500.
vi) Fun Club - Banking For Kids
MCB believeS saving money is “never too late, nor ever too early”. Get your kids into the habit
of saving and help them.

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 SAVING ACCOUNTS

MCB offers following types of saving accounts, these accounts are suitable for those who
have idle money and know no more ways of investments so it is best for them to open an
suitable saving account and keep money in it.

i) PLS Savings Account

It is a plain saving account for customers with no limit on transactions, it is opened with an
initial deposit of PKR 1000 and minimum balance requirement is PKR 10,000. Profit rate of
this account is 6%

ii) Smart Savings Account

It is a saving account bears high profit rates for depositors who maintain their balance between
PKR 200,000-300,000. No cheque book is issued in this account only smart card is issued to
account holder.

iii) 365 Savings Gold Account

It is a daily product for customers who have high net worth and maintain a higher minimum
balance. It is opened with initial deposit of PKR 1000 and account holder is required to
maintain a minimum balance of PKR 500,000. Profit is calculated on basis of daily ending
balance @ 8.5%. and paid out monthly.

iv) Savings Xtra Account

It is a high profit offering account to large investors. There are only three free with drawls in
this over 3 all with drawls will be charged according to SOBC. It is opened with an initial
deposit of PKR 1000 and minimum balance requirement is PKR 100,000. Profit is calculated @
8.5% p.a. on the basis of minimum monthly balance and paid out monthly.

vi) Foreign Currency Savings Account

This account is opened in foreign currency for ease of banking in Pakistan. This account is
opened with an initial deposit of FCY 500 minimum balance requirement for this account is
FCY 500/- to avoid charges.

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 2) HOME REMITTANCE

MCB Home Remittances offers an unmatched service for overseas Pakistanis to send money
home FAST and FREE across Pakistan within our large network of over 1200 branches.
MCB Home Remittance Service is FREE & INSTANT throughout our network of international
send-agents like "MoneyGram", "Xpress Money" and "Samba Speed Cash Now". Pick up your
remittances from any MCB branch displaying these logos.
i) MCB Burqraftaar Transfer (Straight to Account!) enables you, the Non-Resident-Pakistanis,
to send money to your loved ones in Pakistan through our hassle free straight to account credit
service.
ii) Cash in Hand is available via MCB's entire branch network. Payments can be made at any
MCB branch to walk-in customers simply with the provision of their Xpin code and CNIC (No
account number is required for such transactions).

iii) MCB Burqraftar Cash

MCB Burqraftaar Cash enables you, the Non-Resident-Pakistanis, to send money to your
loved ones in Pakistan quickly, easily and conveniently.
Fast, dependable and hassle-free funds transfer
Instant cash payment of up to Rs. 500,000/- over the counter can be made to the
beneficiary at any MCB branch
Convenience of over 1200 online branches nationwide
No bank account required
SMS alert for beneficiary (subject to provision of valid mobile number

iv) MCB Motherland Account allows overseas Pakistanis who wish to open and operate a bank
account in their home country while residing abroad. It is designed to allow transferring of funds
to your family & loved ones with your own personal account back home with ease.
o MCB Motherland account offers you a host of benefits that includes no minimum
balance requirement, free first cheque book and MCB VISA debit card.
o Overseas Pakistanis can open PKR accounts whilst abroad.

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CONSUMER LOANS

MCB Bank offers following consumer loans:

i) Car4U
Life in the fast lane can be really slow without a car. MCB Car4U makes it a breeze to finance
your new/used car. So get up to speed, because "Kahin Na Kahin Tau Hai…Aik
Car4U".Financing up to PKR 6 Million for New Cars & PKR 4 Million for Used Cards
Financing Tenure from 1 to 7 years for New Cars & 5 years for Old Cars Standard Minimum
20% down payment
.
ii) Student Personal Loan
This product has been developed to offer financial assistance to students enrolled in Higher
Education Programs. Currently, MCB has formed a partnership with Lahore University of
Management Sciences (LUMS) and is offering Student Personal Loans to all MBA and
Executive MBA students of the University.
iii) Personal Loan
MCB Personal Loan is a Fast, Affordable and Easy option to meet your immediate financing
needs.Minimum Loan Amount: PKR 50,000 .Maximum Loan Amount: Up to PKR 2 Million
Tenure: 1 year to 5 years . No securities or collateral required.

iv) Home Loans

A home of your own is a blessing and a long held aspiration of many. After all, your home is
where your heart is.
Purpose is to Purchase of ready property.Construction of house on land owned by borrower(s)
where the loan is disbursed in tranches.Applicant(s) must be Pakistani Resident Nationals
Salaried, Self Employed Businessmen / ProfessionalsSatisfactory verifications.
Loan Amount
Home Purchase: PKR 40 Million
Home Construction: PKR 20 Million
Home Renovation: Up to PKR 15 Million
Plot Purchase Plus Construction: PKR 40 Million

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 MCB AGRI PRODUCTS
MCB is committed to meet the diversified banking needs of the farming community as integral
part of overall business strategy of the bank aligned with national objective of achieving self-
sufficiency in food security for the people of Pakistan. Bank fully supports SBP/Govt initiatives
launched for strengthening agriculture sector and recognizes its contribution & significance in
national economy.

Dedicated and specialized staff, supervised by Agriculture Credit Division is posted in agri
lending branches to cater for strong business relationships and facilitation. The bank’s extensive
branch network in all the provinces and diversified product range extends our reach of agri credit
facilities across the country, comprehensively meeting all banking needs of the farmers
pertaining to Farm & Non-Farm activities.

The agriculture financing products are offered under the two main plans which cover
requirements of both production and development needs of farm & non-farm activities. The
farmers may need long term finance to undertake development project or there may be working
capital requirements. Long term financing needs will be met through Term Finance whereas
working capital requirements will be met by production finance.The plans are:-

 Shadabi Plan (Agri Production Finance)

 Khushali Plan (Agri Development Finance)

Shadabi Plan: Covers the agriculture loan products for the production requirements of farm &
non-farm activities of the farming community. Financing products extended under this category
are Agriculture Running Finance-Revolving (ARF-R),

Agriculture Production Finance (APF) and Agriculture Production Finance Growers (APF-G).
All working capital needs of non-farm are also covered under Shahdabi Plan through APF/ARF.

Khushali Plan: ADF caters the credit needs of farmers, generally long term, pertaining to
development projects related to both farm & non-farm sectors. Under Khushali Plan, different
products are offered to cater sector specific credit needs.

The products offered are ADF (Tractor Finance), ADF (Aabiari Finance), ADF (Dairy & Meat
finance), ADF (Murghbani Finance), ADF (Baghbani Finance), ADF (Mahigeri Finance) and
ADF (Zari Technology Finance).

The amount of finance sanctioned depends upon the credit requirement and collateral. Non-farm
credit (poultry, fisheries, apiculture, sericulture etc) and financing for land leveling/development,
heavy equipment, agriculture machinery, vehicles/transport for Agriculture purpose are covered .

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 5) CARDS

i) MCB Visa Gold Credit Card

MCB Visa is not just another card in your wallet. It not only provides the conventional credit
card services in a manner that is superior in comparison, but goes an extra mile. Introducing
unique, innovative and state of the art services, MCB Visa is the most secure, affordable and
rewarding credit card... turning your shopping into a much more exciting experience.
MCB Visa is accepted at all Automated Teller Machine (ATM)s across Pakistan as well as at 27
million acceptance locations worldwide.

Schedule of Charges MCB VISA Credit Card

Platinum Gold Classic

Joining Fee Free Free Free

Annual Fee Free Free Free

Chip Maintenance Fee PKR 3,000 p.a. PKR 1,500 p.a. PKR 1,000 p.a.

Supplementary Annual Fee Free Free Free

Supplementary Chip Maintenance Fee Free Free Free

DEBIT CARDS

MCB Visa Debit Card

From the makers of MCB Mobile comes a brand new innovation MCB Gold Plus - Pakistan's
first chip-based Visa Debit Card pre-enabled with the power of mobile.

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With MCB Gold Plus, access to your account is now just a touch away.
o International Acceptance
o All Telecom/Device Compatible
o Unlimited Transactions

Limits & Fee Structures Gold Plus Gold Silver

Daily Transaction Limits:

Automated Teller Machine (ATM) Withdrawal 50,000 25,000 10,000

Shopping 150,000 100,000 25,000

MCB Mobile 100,000 100,000 100,000

Promotional Schemes:

Cash Back on 1st Retail Purchase (1) PKR 250 PKR 250 No

MCB Mobile Free 300 300

1300 cc Car Lucky Draw (2) Yes Yes No

Annual/Issuance fee (3) 1,000 750 500

Replacement Charges (3) 1,000 750 500

Total Cost of 1st Year (4) 750 500 500

MCB Visa Platinum Debit Card

Welcome to the world of MCB VISA Debit Platinum. The card that’s built around unmatched
convenience with enhanced security and round-the-clock accessibility to your funds in Pakistan
and from around the world. Matching the persona and lifestyle of high-net-worth customers, the
VISA Debit Platinum card is a status symbol.

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SELF SERVICE CHANNELS
MCB Bank offers the following self service facilities:

 MCB Internet Banking

 MCB Mobile
 Automated Teller Machine (ATM) Services
 Call Center
 E-Statements
 SMS Alert

1) MCB Internet Banking

MCB Internet Banking offers you the convenience to manage and control your bank account and
finances; whenever and wherever you want!

MCB Internet Banking is:

 Simple
 smart
 Secure
 Free of cost

MCB Internet banking is available to Islamic, Retail and Corporate customers and it offers the
following services:

o Account summary of all your listed accounts

o Mini-statements (last 10 transactions) of each of your listed accounts
o Statement-by-period of each of your listed accounts, based on the period specified
o Ability to customize your homepage according to your needs and requirements
o Mobile browser compatibility so you can carry out transactions on the go
o Enhanced security by dual security mechanism that authenticates you at different levels

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 o Immediate or scheduled transfer of funds between your own accounts, as well as to third-
party accounts within MCB Bank
o Scheduling of one-time as well as recurring payments. Option for full or partial payment
based on the payment conditions
o Maintain beneficiaries of frequent payees
o Cheque book request for any of your listed accounts (online branches only)
o Exchange Rate Inquiry
o Mail box to request for Linking, De-linking of Account & Credit Card
o Alerts on Login, Account status, Funds transfer & Bill payments on your Mobile and
Email.

2) MCB Mobile
MCB Mobile allows you to make payments, check your account balance and view your mini-
statement from the comfort of your home, office or anywhere else in the world, 24 hours a day, 7
days a week.

3) ATM Services
MCB Visa Debit Card is accepted at over 6,000 Automated Teller Machine (ATM)s (Automated
Teller Machine) nationwide. MCB Visa Debit Card enables you to access fast cash, inquire
account balance, transfer funds and pay utility and mobile bills/mobile top-ups from any of over
800 MCB Automated Teller Machine (ATM)s in the country.

So go ahead! Use your MCB Visa Debit Card – anytime, anywhere.

4) Call Center
The state of the art MCB call center is the right choice to keep you in step with your ever hectic
schedule by providing you round the clock services relating to your Bank Accounts, Visa cards
and MCB Lite at any point in time.

Our well-abreast and dedicated call center team is available 24 x 7, 365 days a year to ensure that
your daily financial obligations are taken care of guaranteeing you a good night’s sleep.

MCB Call Center Offerings

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Value Added Features

Call Rating Feature

Regional Languages

Financial Services

Account Balance Inquiry

Funds Transfer Request
Debit card Transactions Details
Last Six Transactions Details
All Credit Card Related Requests and Payments.
24 Hours Visa Debit, MCB Lite, Prepaid, Credit Card Blocking
Bill Payments (PTCL, SSGC, SNGPL, KESC, HESCO, IESCO, Mobilink, Ufone,
Zong, Telenor)
Purchase Vouchers (Mobilink, Ufone, Zong, Warid Telenor).

Non-Financial Services

MCB Credit & Prepaid Card Activation

Credit Card Address Change Request
Internet Banking Activation
24 Hours Complaint Registration
Mobile Banking Activation
MCB Lite Activation
MCB Products related information
MCB Bank charges

5) E-Statements
MCB e-Statement offers you to keep a close eye on your bank account transactions by receiving
your electronic statement. Main features are:

o Free of cost

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 o Convenient
o Secure
o Receive in PDF format on your given e-mail address.
o Receive on monthly basis and detailed transaction history on semi & bi-annual basis
as well.
o No charges at all.

6) SMS Alert
MCB brings to you Free SMS Alerts Service to keep track of your transactions 24/7! Make life
easier by receiving real-time SMS updates for transactions conducted on your account(s). You no
longer need to call or visit the branch to inquire about your daily transactions.

Eligibility Criteria

o An active MCB account

o A local mobile number

Transaction Type

o Cash Deposit
o Cheque Withdrawal
o Cheque Clearing Credit
o Cheque Clearing Debit
o Cheque Deposit (Internal)
o Cheque Withdrawal (Internal)
o Salary Credit

Key Features

o Multiple registrations: You can receive SMS notifications for all your MCB
accounts.
o Secure: SMS’s will only be sent to your registered mobile number which you
provide at the time of applying for this service.

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 MCB LOYALTY & DISCOUNTS
Your MCB VISA Cards (Debit, Credit, Prepaid, Lite) open up an array of incredible discount
opportunities for you and your loved ones. Whether it’s shopping, dining or lodging that you
want to indulge in simply use your MCB Cards and avail remarkable offers and privileges! We
offer discounts on our entire debit, credit and prepaid portfolio because all our customers are
special to us.

To avail these and many more discount offers apply for any of the cards below:

 MCB Visa Debit Card (Platinum, Gold Plus, Gold & Silver)
 MCB Credit Card
 MCB Lite Card
 MCB Prepaid Card

LOCKERS
Ensuring security to your valuables, we offer deposit lockers that you can operate in the privacy
and comfort of your own MCB branch.

Available at selected branches in cities / towns all over the country. For details, please
visit your MCB branch
Lockers available in Small, Medium and Large sizes
Fixed sum assured as per size of locker
Locker can be operated in single or joint capacity

Locker Management
Overview

Branches all over the country offer Safe Deposit Lockers facility to their customers. Each locker
irrespective of its size has a separate number and is fitted with a double key lock which cannot be
opened except with the two keys, one being Master Key under the custody of
Manager/Authorized Officer and the other possessed by the customer.The relationship subsisting

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between Bank and Person to whom locker is rented out will be that of a Licensee and a Licensor
and not that of a customer and banker.

Rights & Obligations of Licensee

The ownership in the locker will vest in the Bank and the licensee will have only the right to use,
subject to the fulfilment of the terms and conditions described hereinafter. The licensee will not
be entitled to assign or sublet the locker or any part thereof. The License will terminate on death
or insolvency of the Licensee.

Issue of License (Procedure for Issuance of Locker)

Before issuing a License for the use of locker, make it sure that the licensee maintains an account
in any branch of our Bank in the same City preferably in the branch where locker facility is
available.

General Banking Officer or Designated Locker Custodian:

o Makes sure that the customer maintains an account in any online Branch within the city
preferably the same branch.
o In case the customer maintains account in other branch, a confirmation is obtained from
parent branch about the account being active, KYC is complete and the risk level
assigned to the account holder. Either the customer maintains account in same branch or
other branch, KYC needs to be updated.
o If the customer is assigned high risk, a fresh KYC needs to be conducted and approval
needs to be obtained from Senior Management ,before assigning locker facility in
compliance with Prudential Regulation IX to conduct enhanced due diligence for high
risk customers.

GBO:

Completes the following forms / formalities from the customer:

i. Locker Application Form MF – 19R

ii. Specimen Signature Card MF - 19AR

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 iii. A Valid copy of CNIC

The locker can be opened singly or jointly and the authority to operate can be singly, jointly or
either or survivor.

Termination of License

The agreement of License may be terminated by either party giving “7” days notice in writing
and licensee will deliver key and vacant possession of the locker to the Bank during office hours.

Key Deposit

Apart from rent/License fee presently in force, a 'Certain' amount as per schedule of Bank
Charges will be payable as key deposit. This amount will be refunded to the licensee on the
surrender of locker and key and clearance of dues, if any

Payment of Rent

The rent / License fee as per schedule of Bank Charges will be payable in advance on yearly
basis and will not be refundable in the event of the locker being surrendered earlier than the
expiry of the term of the License.

Locker Insurance Policy

As per the SBP guidelines on the Lockers Security Standards, it is mandatory that all the existing
and new locker holders are aware of the deposit box/locker insurance policy and the salient
features including the amount of coverage and the limit from time to time.

Control Guidelines

In order to avoid any unpleasant incident, all BMs/ BOMs are instructed to check the following
on regular intervals:

i. Check that locker application forms and specimen signature cards are complete and
intact
ii. Check that Master key and Master Chart indicating Key Nos. and Locker Nos. is
handled carefully and remains with the authorized person only
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 CHAPTER: 02
CORPORATE PROFILE OF THE BANK

MCB is one of the oldest banks of Pakistan, incorporated in 1947. It was privatized in 1991. To
accede to international capital markets, the Bank launched Global Depositary Receipts (GDRs)
in 2006. It was the first Pakistani Bank that got its GDRs listed on the London Stock Exchange.
In 2008, the Bank entered into a strategic partnership with May bank, Malaysia, which owns
20% stake in it through May bank International Trust (Labuan) Berhad.

CORPORATE INFORMATION

Management Profiles:

Imran Maqbool President & CEO

Agha Saeed Khan Group Head Operations
Salman Zafar Siddiqi Chief Financial Officer
Ali Mubashir Kazmi Group Head International Investments
Mohtashim Ashai Group Head Wholesale & Investment Banking
Shahid Malik Group Head CCM (Corporate, Communication & Marketing) and
Special Projects
Kamran Rasool Group Head CSR (Corporate Social Responsibility) & security
Muhammad Ramzan Group Head Treasury & FX (Foreign Exchange)
Usman Hassan Group Head Human Resource Management
Laqa sarwar Group Head Special Assets Management
Muhammad Nauman Chughtai Group Head Risk Management
Nadeem Afzal Head Retail Banking (South)
Imtiaz Mehmood Head Information Technology
Syed Mudassir Hussain Naqvi Group Head Legal Affairs
Ali Muhammad Mahoon Group Head Islamic Banking

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 BOARD OF DIRECTORS

1 Mian Mohammad Mansha Chairman

2 S. M. Muneer Vice Chairman

3 Tariq Rafi Director

4 Shahzad Saleem Director

5 Sarmad Amin Director

6 Mian Raza Mansha Director

Leave Policy
According to the leave policy of the Bank following types of leaves may be granted to
employees:

i. Leave on full pay:

The maximum period of leave on full pay, that may be granted at one time, be as follows:
o Without medical Certificate 120 days
o With medical Certificate 180 days.
ii. Leave on half pay:
There is no limit on the grant of leave on half pay.

Termination
The employees of MCB can be terminated in the following three ways:

 An employee shall retire from service if:

i. He/She has completed 30 years of service in the Bank, or
ii. He/She has attained the age of 58 years.

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Human Resource Management Policy of MCB Bank
Human resource department is concerned with the staffing, training, development, motivation
and maintenance of the employees. This department is also called staff administration and is of
much greater importance. It coordinated the various activities performed by different workers. It
facilitates the smooth running of an organization. Its main objectives are as follows:

1. The attraction of employees

2. The retention of employees

3. The development of their personalities and minds

HRM is needed for making suitable policies. It presents these policies before committee for
discussion and approval. It deals with following personnel matters

1) Selection & Recruitment Policy.

2) Employee training and development program.
3) Performance appraisal of employment
4) Benefit Schemes.
MCB places great importance on human resource management and for this purpose Human
Resource Development Division had been established. The major functions performed by the HR
Department are as follows

Selection & Recruitment Policy:

“Recruitment is the process of discovering potential candidates for actual or anticipated

organizational vacancies or from another perspective, it is linking activity, bringing together
those with jobs to fill & those seeking jobs.”
It is of vital importance in a sense that if a non-deserving or a wrong person selected who is not
fit for that job, then he will become a permanent loss to the organization. Therefore, selection of
a right person for the right job at the right time is of vital importance.

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Procedure of Selection

There are certain steps involved in the procedure in recruiting to MCB 21. They are:
o Applications are invited from candidates on prescribed forms against the vacant posts
advertised in the newspapers.
o Application forms received are scrutinized and eligible candidates are called for written
test. Test is conducted in four subjects, i.e. English, Computer, General Knowledge and
Mathematics.
o Candidates who qualify the written test are called for interview. Interviews are held at
GM office.
o After that the candidates have to undergo a medical checkup by the prescribed doctor.
o Appointment letters are sent to the selected candidates, who have to present themselves
before the Head Office for signing the following documents.
a. Bank Secrecy. Bond
b. Security Bond
c. Service Agreement Bond.
Appointed candidates are kept on probation for 9 months. They are sent for a 9- months pre-
service training in the Staff College.On the successful completion of the training program they
are appointed as officers grade- III.

Employees Training and Development Program:

“Training & development specialist are responsible for counseling employees helping them to
make better choices about their caress and finding ways to achieve the desired goals”.
Training plays an important role in an administration is to improve the performance and level of
efficiency of employees to enhance the knowledge. The training program of MCB is as follows:

i. Pre-Service Training:
ii. In- Service Training:
Performance Appraisal of employees

For the evaluation of the performance of the employees, the bank takes the following steps.

i. Audit Report
ii. Inspection
iii. Sanction

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 FINANCIAL ANALYSIS OF MCB BANK
Horizontal Analysis of Balance Sheet
ITEMS 2014 (Rs M) 14 vs 13 2013 (Rs M) 13 vs 12 2012 (Rs M) 12 vs 11
% % %
Assets
Cash and balances with treasury 46,754 -22% 59,946 4% 57,420 8%
bank
Balances with other banks 3,016 96% 1,537 29% 1,192 -48%
Lending to financial institutions 1,418 16% 1,225 -21% 1,551 62%
Investments 511,137 14% 449,006 12% 402,069 27%
Advances 303,559 22% 248,243 4% 239,583 5%
Operating fixed assets 31,193 9% 28,595 20% 23,738 8%
Other assets 37,555 39% 26,956 -35% 41,520 33%
934,631 15% 815,508 6% 767,075 17%
LIABILITIES
Bills payable 16,628 64% 10,139 2% 9,896 5%
Borrowings 59,543 54% 38,543 -51% 78,951 102%
Deposits 688,330 9% 632,330 16% 545,061 11%
Deferred tax liabilities 10,397 147% 4,201 -56% 9,530 47%
Other liabilities 26,630 48% 20,064 -5% 21,166 15%
804,527 14% 705,277 6% 664,604 18%

NET ASSETS 130,104 18% 110,231 8% 102,471 15%

PPRESENTED BY
Share capital 11,130 10% 10,118 10% 7,602 10%
Reserves 48,830 5% 46,601 5% 40,163 5%
Unappropriated profit 46,948 16% 40,552 14% 21,416 23%
Surplus on revaluation of Assets 23,196 79% 12,959 -5% 10,024 37%
– net of Tax
130,104 18% 110,231 8% 102,471 15%

Horizontal Analysis of Income Statement

Profit & Loss Account
Mark-up earned 77,269 19% 65,064 -5% 68,356 0%
Mark-up expensed (33,757) 24% (27,196) -1% (27,500) 16%
Net mark-up income 43,512 15% 37,868 -7% 40,856 -8%
Provisions & write off 1,373 -52% 2,888 -1093% (291) -93%

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Net mark-up income after 44,885 10% 40,756 0% 40,565 1%
provision
Non Mark-up Income 13,453 20% 11,171 22% 9,153 13%
Non Mark-up Expense (21,591) 10% (19,639) 9% (18,077) 6%
Profit before Taxation 36,729 14% 32,288 2% 31,642 1%
Taxation (12,405) 15% (10,793) -2% (10,969) -9%
Profit after Taxation 24,325 13% 21,495 4% 20,673 6%

Interpretation Of Horizontal Analysis

Asset base of the bank has increased considerably over the past 6 years; highest increase was
observed in 2012 where assets increased by 17%, mainly contributed by investments in terms of
volume. On an annualized basis, the asset base has recorded an increase of 13% over the last six
years. Highest increase in investment base was reported in 2011 of 49%, followed by 27%
increase reported for 2012.

The deposit base of the Bank has increased considerably over the years growing from Rs. 368
billion in 2009 to Rs. 688 billion in 2014 translating into an annual growth of 13% over past 6
years. Equity of the bank has also posted healthy increase due to higher profitability in past 6
years, translating into 14% average growth.

On to Profit and Loss side, gross markup earned has posted an average increase of 12% over a
span of six years. Corresponding to the shift in asset mix, contribution from income on
investments has increased over the years.

Interpretation Of Vertical Analysis

Vertical analysis depicts higher concentration levels of investments and advances in the asset
base of the Bank. The advances base of the Bank has posted moderate growth over the last few
years due to the lack of credit opportunities and intense competition. This has resulted in the
decrease of advances concentration in the asset mix from 50% in 2009 to 32% in 2014 The
investment concentration, on the other hand, had increased from 33% in 2009 to 55% in 2014.

Corresponding to the infrastructural and operational growth registered by the Bank, the deposit
base has increased considerably over the period of six years. Improved quality service levels and
tailored products have earned the loyalty of our customers. This can be substantiated by the fact
that the CASA base of the bank has been above 80% over the last many years. Concentration on
deposits remained at similar levels over past 6 years i.e. 74% for 2014 (2009 : 72%)

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 Vertical Analysis of Balance Sheet
ITEMS 2014 (Rs M) 14 vs 13 2013 (Rs M) 13 vs 12 2012 (Rs M) 12 vs 11
% % %
Assets
Cash and balances with treasury 46,754 5% 59,946 7% 57,420 7%
bank
Balances with other banks 3,016 0% 1,537 0% 1,192 0%
Lending to financial institutions 1,418 0% 1,225 0% 1,551 0%
Investments 511,137 55% 449,006 55% 402,069 52%
Advances 303,559 32% 248,243 30% 239,583 31%
Operating Fixed Assets 31,139 3% 28,595 4% 23,738 3%
Other Assets 37,555 4% 26,956 3% 41,520 5%
934,631 100% 815,508 100% 767,075 100%
LIABILITIES
Bills payable 16,628 2% 10,139 1% 9,896 1%
Borrowings 59,543 6% 38,543 5% 78,951 10%
Deposits 688,330 74% 632,330 78% 545,061 71%
Deferred Tax Liabilities 10,397 1% 4,201 1% 9,530 1%
Other Liabilities 29,630 3% 20,064 2% 21,166 3%
804,527 86% 705,277 86% 664,604 87%

NET ASSETS 103,104 14% 110,231 14% 102,471 13%

REPRESENTED BY
Share Capital 11,130 1% 10,118 1% 9,199 1%
Reserves 48,830 5% 46,601 6% 44,253 5.8%
Unappropriated profit 46,948 5% 40,552 5% 35,425 4.6%
Surplus on revaluation of Assets- 23,196 2% 12,959 2% 13,594 1.8%
Net assets
130,104 14% 110,231 14% 102,471 13%

Vertical Analysis of Income Statement

Profit & Loss Account
Mark-up earned 77,269 85% 65,064 85% 68,356 88%
Mark-up expensed (33,757) -37% (27,196) -36% (27,500) -35%
Net mark-up income 43,512 48% 37,868 50% 40,856 53%
Provisions & write off 1,373 2% 2,888 4% (291) 0%
Net mark-up income after 44,885 49% 40,756 53% 40,565 52%
provision
Non Mark-up Income 13,435 15% 11,171 15% 9,153 12%
Non Mark-up Expense (21,591) -24% (19,639) -26% (18,077) -23%
Profit before Taxation 36,729 40% 32,288 42% 31,642 41%
Taxation (12,405) -14% (10,793) -14% (10,969) -14%
Profit after Taxation 24,325 27% 21,495 28% 20,673 27%

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 CHAPTER: 03
Tasks and Duties during Internship

My internship at MCB Bank Jadah branch Shahdara lahore started on and ended on 5th
September 2016. I learnt different things in bank regarding Cutomer services, Clearing,
Remittances & also about Hajj Scheme introduced by the bank timely.

1st Week

Accounts Opening Department

Accounts opening department is one of the departments that come under the retail/general
banking facilities provided by MCB Jaddah branch shahdara .I worked in this department under
the guidance of CSO Miss Saira Saleem. The working done and experience gained in this
department includes

Basic Requirements for Account Opening

The basic requirements to open an account for individuals/self-employed are as follows:

o CNIC
o Source of income (salary slip etc)
o NTN certificate (optional)
o Company letterhead or authorization (as required)
o The basic requirement to open an account for a partnership:
o Partnership Deed
o Partners CNIC
o Company Letterhead

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 o NTN certificate (optional)
o The basic requirement to open an account for companies:
o Memorandum of Association
o Article of Association
o Directors CNIC
o Company Letterhead
o NTN certificate (optional)

ACCOUNT OPENING

The general banking performs various functions among them the first and most
important function is A/C opening. The process of opening an account is very simple
and any body who would like to open his account could do it easily without any
difficulty.

Procedure for Account Opening

1) Application Form
The customer would like to open his account is required to meet with the manager or
second officer, who will give him an “APPLICATION FORM” specifically used for
account opening. Separate colour-coded Application Form is available for each type
of account. So that a particular coloured form is given to the customer to fill in for
opening a related account.

2) Specimen Card
As I have already mentioned about “SIGNATURE SPECIMEN CARD”. This card
contains three signatures of an applicant, applicant A/c no, A/c type, branch code, title
of A/c, it will be attached with an application form. Banker uses this card at the time
when he receives the cheque; he compares customer’s signature with the signature on
the cheque for avoiding fraud.

3) Account Opening Register

The manager records the necessary details into this register and allots an a/c number
from this a/c opening register. This register is maintained for each type of account
and the a/c numbers are allotted serially. After opening a saving and current account
every applicant’s data is entered into the computer to maintain a safe record and

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 application form is properly filled so that it can be available when necessary. For
fixed deposit only that application form is needed which is prepared manually,
because most of the procedure of fixed deposit is done manually.

4) Cheque Book
Cheque book is issued to the customer when the bank accepts the A/C opening
application form.
Major Work Done by Account Opening Department

Stop Payment

If a customer’s cheque book is lost, then that customer will have to come to the bank and
firstly report the loss and then stop payment, by telling the series of cheque he has lost.
By stopping payment, the customer is guaranteed that no illegal payment is made from
their account.The process for stopping payment, after the customer tells that he has lost is
cheque book is that he fills a ‘Form B’, which is same as a cheque book requisition form
and an indemnity form, stating no responsibility on behalf of the bank if any illegal
payment is made before the time of announcing a cheque book lost.As part of my
internship, I was to assist a customer towards the whole process of stopping payment.

2nd Week
CLEARING DEPARTMENT

Second assignment I have done in the Clearing department under the guidance GBO Sir umer
Saeed and learned about inward and outward clearing, intercity clearing and I also learnt about:

i. Procedure of clearing a cheque

ii. Checking of cheques
iii. Inward and outward clearing
iv. Within bank transfer
v. Different reason of returning a cheque
vi. Types of clearing stamps

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The basic function of the clearing department is to facilitate the customer; it provides them the
services in collection of their cheque in other banks. Clearing actually means the transfer of
funds from one branch of bank to the other branch of the same bank or the other bank on which
the instrument is drawn, without involving cash through State banks clearing house.

NIFT:

NIFT stands for National Institutional facilitation Technologies. Clearing House of SBP has
shifted a tiresome part of its work to a private institution named NIFT. NIFT collects cheques,
demand drafts, Pat orders, Travelers Cheques, etc. from all the branches of different banks within
city through its carriers and send them to the branches on which these are drawn for clearing.
After the branches approve the instruments drawn on them, NIFT prepares a sheet for each
branch showing the number for instruments and amount in its favor and drawn on it and sends it
to each branch. A similar sheet for each bank is also sent to clearing house of SBP where
accounts of banks are settled in the same manner.

The instruments are collected from the client. Following things are checked i.e; Cheque date (a
cheque is valid for six months, for example a cheque is dated 01.01.08 it will be valid till
30.06.08 and it should not be post-dated).

o Title
o Amount in figures and words should be same
o There should be no cutting and overwriting on the cheque.
o Deposit should also match with the cheque.

Stamping Procedure:

In stamping procedure, the pay-in-slip counter foil the following three stamps are used:

· If the cheques is for the same bank, and drawer and the payee both have the account in the
same bank, the simple bank stamp is used, and this stamp indicates the transfer of cheques from
one account to another account. This cheque is directly moves towards posting in computer
terminal where the computer operator debit one account and credit the account of another party.
This stamp is known as the Transfer stamp.

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Stamping On Cheques:

After receiving the cheques and issuance of the counter foil to the client, stamping process starts
on the cheques, the following stamps can be used. The name and branch name of the bank stamp
is used on the front side of the cheques. This stamp is used on all types of cheques. This stamp is
known as crossing stamp.The second stamp used is the clearing stamp on the front side of the
cheques. It also indicates the presenting date of the cheques. If the cheques is dishonored and
deposited again for clearing, the clearing stamp is used again with new date of presenting.

So the clearing stamp is necessary wherever the cheques are presented for clearing.

The third necessary stamp that is the endorsement indicates the paying bank to “payees account
credited”. It is the confirmation of outward clearing.The whole clearing process requires about 2
days, after 2 days the customers’ account is credited and the customer can make the transactions.

I also got a chance to call a few customers of the branch over the phone to let them know that the
cheque which they had deposited a few days back has been cleared i.e. the funds according to
that cheque have been transferred to their accounts. This activity was fairly easy. I asked a few
questions regarding the identity of the customer, upon receiving positive response I simply
delivered the information to the customer that money is transferred to his account and it is
available for him to use.

3rd week
Collection Department

All the cheques under collection are called cheques under collection in MCB bank. There are two
types of bills for collection:I learn when cheques come into the branch,how to check those
cheque and sort them according to their kinds and handed over those cheques to the respective
counters. In cash department both deposits and withdrawals go side by side. This department
works under the accounts department and deals with cash deposits and payments. This
department maintains the following sheets, books, ledger of account:

 Cash received voucher sheet.

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  Cash paid voucher sheet.
 Paying-in-slip
 Cheque Book
 Cash balance book

Cash or collection department is performing its job completely through computers.

4th Week
Operations Department

This department at MCB jaddah Branch Shahdara is responsible for issuing new cheque books,
Visa debit Cards & to monitor the daily activities of different departments working in
Bank.Upon receiving the new cheque books the customer has to either sign or put his stamp on
the new cheque book. The stamps are used if the account is opened in the name of a company. I
guided a few people who wanted to collect the new cheque book on the original account holder's
behalf. I explained that the original account holder has to come in person and collect the cheque
book himself and it is not possible to collect the cheque book on his or her behalf. I also got a
few cheque books stamped by the customers and handed them over their new cheque books.

I made calls to the customers who were to receive their ATM cards. As part of my internship
program I entered the professions, the SBP codes of different customer’s professions in
SYMBOL system. I also learnt how the dormant account is activated.

5th Week
HAJJ SCHEME:

Last assignment that I did in the MCBjaddah Bank Shahdara Branch under the guidance of
Branch Manager Rashida Malik was about Government Hajj Scheme. Under this Government
Hajj Scheme, the MCB Bank has to collect Hajj applications from customer who want to
perform Hajj in year 2015.

I filled in their application forms. Made their groups & punched their records in the system.

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 6th Week
Remittance Department

The need of remittance is commonly felt in commercial life particularly and in everyday life
general. A major function of any banking system is the transfer of funds from one client or one
place to another. By providing this service to the customer the bank earns a lot of income in the
form of service charges. This department deals with local currency remittance i.e. remittance
from one city to another without actually carrying the currency. MCB uses following instrument
for transferring of money

 Demand Drafts (DD)

 Pay Order (PO)
 Telegraphic Transfer (TT)
 Mail Transfer (MT)

Demand Draft:

DD is a written order given by the branch of the bank on behalf of the customer to other branch
of the same bank to pay the certain amount to the customer. DD are issued for the particular
place other than place of issuance. A draft is a Cheque drawn by a bank on its own branch or any
other branch of another bank at a different place requesting it to pay on demand a specified
amount of money which is already received to the person named on it.

Pay Orders:

For this kind of remittance the payer must have the account in the issuing bank. Pay order are
more liquid as compared to cheques because cheques may be dishonored while PO can’t be. It is
written order issued by the bank drawn and payable on itself. It is used for local transfer of
money from one person to another person. It is also used by the public for depositing money with
Government or Semi Government department.

Documentation:

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The party who requires a pay order will get a printed application from the bank. He will fill it
and deposits the amount and commission. The bank charges are same as on demand draft.

 Bank Serial No.

 No. of PO
Telegraphic Transfer (TT):

In this case the authority is given from one bank to other on the behalf of the customer through
telecommunication to debit their inter office account through them and credit their parties
account mentioned in TT. It is an inter-bank transaction. Telegraphic transfer is an instant
transfer of funds. Through this method applicant can transfer money from one place to another
place. There are two types of TT; both types of TT are maintained in separate registers, test is
applied by the manager of every amount of TT.

 Incoming TT
 Outgoing TT
Applicant has to fill a form along with depositing amount to be transferred and bank
commission. MCB charges the commission at the same rate as in the case of demand drafts.

Documentation

 Issuing Branch Name & Code

 Beneficiary Branch Name & Code
 No. of TT
 Amount in words & Figure
 Test key
Mail Transfer (Mt):

As the name shows, it is transfer of money in the shape of document through mail. Procedure is
like TT. The transfer of funds from one place to another by mail is called Mail Transfer (MT).
The MT can be foreign or domestic. The applicant who is desiring to remit the funds by way of
Mail Transfer can either deposit cash or ask the bank to debit his/her account with the cost of MT
including the bank charges. These all measures are for safe transfer of funds.

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 Chapter # 4

SWOT ANALYSIS

SWOT ANALYSIS

For any institution or organization, its external environment contains certain opportunities & threats and
internal environment contains Strengths and Weaknesses. So in this situational analysis, I try to match
organizational strengths and weaknesses with the environmental opportunities and threats to determine
the organization's right niche.

1. STRENGTHS

MCB Bank Limited is making an efficient use of latest computer & telecommunications
terminology for facilitating the international banking transaction as well as external &
internal banking procedure.
All the branches of MCB are online and connected to a single system.
MCB Bank Limited has a well-established reputation over a period of many years. It has
rich history and a support of Mansha Group.
MCB Bank limited has a wide range of products and services for every type of customer
from businessman to student and from deposits, loans to insurance services.
MCB Bank has a trained and motivated pool of employees. They are committed to
excellence and have high work stamina.
The bank has deep responsiveness of market. Bank always makes modifications in
services according to requirement of market and customers,
MCB is Successive and Market oriented.
In order to update the knowledge of employees & enhance their understanding to job,
training facility is also provided to them. Refresher courses are offered continuously to
keep employees skills according to business environment.

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 MCB is investing huge sums on HR development and training.
Customer default rate is lower as compared to other banks.
MCB has the largest ATM network in the country.
Meeting the challenges of latest Technology by introducing Smart card remit express, mobile
banking etc.
One of the major strengths of MCB is that it has very stable deposit base.
MCB is largest private bank in Pakistan with more than 1200 branches, which cover almost
every part of Pakistan.
The bank enjoys competitive advantage over other banks in Pakistan & competitive
profitability in the industry.
MCB has captured majority of potential customers in Pakistan.
MCB has the highest share price in the banking sector.

2. WEAKNESSES

The products &Services offered by MCB Bank are expensive as compared to other banks
in the market so customers often shift to other banks.
Some employees at MCB Bank don’t have proper knowledge about their products. As a
result customers suffer often due to unsuitable service.
The online banking system doesn’t work properly. If the technology is not properly
utilized, it creates more hurdles for clients.
The heavy burden of work destroys social life of employees.
The employees should try to accommodate uniformly all types of customers. Rich &
Educated clients are dealt especially while poor customers have to wait more for their
turn.
Employees too sometimes feel dissatisfaction due to ill treatment and improper reward
system.
MCB Bank doesn’t have high number of branches abroad.
Though ATM network is the largest in Pakistan, still some potential areas don’t have the
ATM.
Less efficiency of SYMBOL System due to disconnectivity.

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 The majority of people are not well aware about the products of MCB due to little
advertisement.

3. OPPORTUNITIES
MCB Bank has opened its branches in Canada & international offices in Bahrain.
Through this opportunity MCB provide foreign transections facilities to their customers.
There is a huge potential for Expansion in the Network to increase its local customers and
market share by opening branches in business areas.
MCB Bank may introduce innovative products with high quality to sustain its position in
the market and increase market share. It can launch a marketing campaign for this
purpose.
MCB Bank can focus to change its target customers areas as per requirement and
availability of products and services.
Leasing sector is growing in Pakistan for the last two to three years which provides
opportunity to MCB to go ahead in this area as well.

4. THREATS

New banks with new innovative products offering high quality this will result of
competition in the banking sector and there are chances of losing market share.

All the Banks are improving their customer services by incorporating new informational
technology and responsiveness to market changes so there is change of rapid technology
changes.
Foreign banks are also seeing Pakistan as strong market so they arecoming in the country
it is an alarming situation for all the banks.

Political condition in the country is not stable so this is also a major threat to economy as
well as whole banking sector.

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 Chapter # 5 Research Project

Impact Of Motivation On Employee’s Turnover In MCB

Introduction
Motivation is the big factor that provide a direction to hold the particular behavior that is very
important for achieving best performance level. This reserch will refer to human motivation.
This study is looking into the impact of motivation on employee turnover in MCB bank of
Pakistan. This research will add to the body of literature relating motivation factors and
theoretical frame work will describe the motivation indicators or attributes for measurement
employee motivation. Motivation is significantly relating to employee job satisfaction which
impacted employee turnover intention. The study will provide employee motivation theories and
explain of how employee motivation affects employee retention in banking industries. Employee
turnover has become one of the most serious issues facing the banking industry. Most of the
researchers are putting their best efforts and focus to find out the best ways to reduce annual
employee turnover. The purpose of this study was to examine the impact of motivation on
employee turnover in banking sector of Pakistan.

Literature Review
Ming (2008) investigated the role of career development practices to turnover intention.
Abeysekera (2007) investigated and empirically evaluated that human resource practices
(realistic job information, job analysis, work family balance, career development, compensation
and Supervisor support) may impact on marketing executive intention to leave or turnover in Sri
Lankan leasing companies. He used the administrator questionnaire technique for gathered data
from which the sample include of hundred marketing executives from 10 leasing different
companies of Sri Lanka. He used regression technique and defined job analysis, career
development, compensation, realistic job information variables were negatively correlated with
marketing executive intention to leave and the work family balance was not negatively correlate
with marketing executive turnover and he defined compensation and job analysis has strong
impact on marketing executive intention to leave.

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Samad (1995) examined that the relationship of job characteristic, job satisfaction and turnover
intention and define the contribution of demographic variables segments of human populations
broken down by age or sex or income etc. he collected the data from 292 IT staff in telecom
Malaysia. He used correlation technique to find out the variable (job satisfaction, skill variety,
task identity, task significance, autonomy, feedback,) he defined demographic variables, job
characteristics and job satisfaction has a significant impact on turnover intentions.
Bloch (2004) investigated that the effect of job satisfaction on employee motivation and turnover
intensions. He collected the data from different organizations he collected the data on seven
variables using questionnaire technique from 250 workers he used correlation technique to find
out the effect of variable (physical environment, task design, reward and reinforcement,
supervisory support and coaching, social norms and organizational culture) on job satisfaction,
employee motivation and turnover intentions. He defined job satisfaction results increased
motivation and reduce turnover intentions.
Tahir et.al. (2008) investigated the intrinsic and extrinsic compensation instrument in the
banking sector of Pakistan. He defined compensation direct positive relation with motivation; 78
©JBSQ 2013 Schiemann (1987) investigated that the impact of cooperate compensation and
benefits policy on employee attitude and behavior and cooperate profitable. He collected data on
five variables using the questionnaire technique from 884 employees. He used regression
technique to find out the effect of five variables (demographic changes, family composition,
education, fear of insolvency, employee values) on employee attitude and behavior. He found the
most significant factors which affect the employee attitude and behavior are demographic
changes, family composition, and education, fear of insolvency, employee values and enhancing
motivation of employees and build positive behavior and attitude about job and create less turn
over intensions.

Problem Statement

This research is proceeded to conclude what are the key motivation

factor that influence the employee’s turnover in banking sector of
Pakistan.

Research Objective

Basic purpose of the study are

1. To investigate the factors used in the banking sector(MCB) to motivate the employees.

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 2. To determine the impact of motivation of employees towards employees turnover in
MCB.
3. Which motivation factors decrease the employees turnover in the MCB.

Reserch Questions

This research will focuses on the following questions.

1. Which motivation factors are used in the MCB to motivate the employees.
2. How motivation impact on the performance and employees behavior towards their job
satisfaction in MCB.
3. What are the motivation factors that decreases the employee’s turnover rate in MCB.

Key Factors.
Following are the key factors of my research.
Salary , Benefits , Job Satisfaction , ( Independable Variables)
Employee’s Turnover (Dependable Variable)

Explanation of Key Factors

Salary
Salary means what employee receive in exchange of their services put in the workplace. Salary
may be viewed as the cost of acquiring and retaining the human resource for running the
operations.

Benefits
Benefits are the addition in the fixed salaries that are provided in order to motivate a specific
behavior. Benefits are playing an important role in order to retain the workforce and booste the
motivational level of the employees.

Job Satisfaction

Job Satisfaction is the key factor that is playing an important role in retention and turnover of the
employees . If the employee is not satisfy with their work then it increases the turnover of the
employees.

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Hypothesis : H1:

Job Satisfaction of employees in MCB has a significant relationship with employee’s

turnover.

H2:

Salary of employees in MCB has a significant relationship with employee’s turnover.

H3:

Benefits given to employees in MCB has a significant relationship with employee’s turnover.

Research Methodology

Purpose of the study.

Basic aim of the research is to investigate the impact of motivation on employee turnover in
MCB.
Nature of Study.

Research is Quantitative data based.

Sample Size

I have taking the sample size of 100 employees for my research.

Data Collection

Data is collected through closed ended questions.

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This histogram shows that normal distribution of motivation.

This histogram shows that normal distribution of turnover the char line indicates histogram slightly
skewed to right.

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Ho= motivation is not significantly effect on turnover.
Hi= motivation is significantly effect on turnover.
In this matrix we intend to have some idea about the relationship between motivation and
employee turnover. This matrix shows the negative relationship between motivation and employee
turnover because the value of motivation is

increase and the value of turnover is decrease so the result define negative relationship between
both variables.

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Summary and Conclusion
This study has investigated the impact of motivation on employee turnover in MCB of Pakistan.
Reason to chosen this topic was how Employee motivation affects employee retention within
banks of Pakistan. Employee turnover has been used as dependent variable to represent the
turnover in MCB the other variable motivation is independent variable. We have collected data
on two variables which mentioned above. Data was collected through a structured questionnaire.
The questionnaire consisted of 20 questions, in independent variable used motivation attributes
related questions in which 4 questions for employee service, 3 questions for employee teamwork
3 questions for employee regularity or punctuality 3 questions for employee responsibility3
questions for employee relationship and depended variable turn over related used four questions.
In questionnaire used the scale varies 1 to 5.
. The result shows that the independent variable motivation is significant affect of reduce
employee turnover in MCB. Motivation was established to be significant predictors of decrease
employee’s intention to quit. Researchers can be guided by suggestions and insights from this
study that motivation factors contribute to decrease employee’s intention to quit organization.

Conclusion
At the end I conclude by say that there is a strong relationship between motivation
and employee’s turnover . It is because if the employees of MCB bank intrinsically motivated
then they give their best efforts towards the completion of tasks and achievements of altimate
targets. This research shows the basic factors that are considered very important for the in order
to boost up the motivational level of the employees in MCB. My research oriented results are
valid not only in MCB but in other industries and banking sectors. This is the best way to reduce
the turnover the employees in any organization.

OBSERVATIONS

I found my internship training at MCB JADDAH Branch Lahore to be a very rewarding

experience. The training was beneficial because it helped me to have a real life working
environment.
Employees at MCB Bank are quite efficient. They work more than their working hours and it is
all according to their will. It also shows their loyalty, commitment to organization.
So far my observation is concerned; I observed that all the employees at branch were quite
cooperative. They helped me to understand the activities of a bank to possible extent. Their good
attitude gave me more confidence to learn more and to ask if I have any query in my mind.
Besides their ever going activities they never get irritant by my questioning. I had made an

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honest efferent to present the working & operation of MCB Bank Shahdara Morr Branch Lahore
in simplest way.

RECOMMENDATIONS

From the Quantum of the profit and its financial data it can be easily judged that after
privatization, MCB BANK is performing well. Its deposits are growing day by day and so its
profitability. The controlling body is responsible for the productive performance of the
Bank.Following are my observation and suggestion to improve the efficiency for the
development of the economy.

1. There is a criticism on the bank management that the salaries of the employees are
decreasing in every succeeding year. And I think this will shake the confidence, morale
and motivation level of the employees.

2. There is another recommendation about the bank that there is no proper timing of the
bank for employees it should be scheduled as per requirements of staff.

3. Unnecessary delay in the banking transactions, it might not be a good sign for the bank
from future prosperity point of view. It should be eliminated.

4. Staff turnover particularly of trained staff result in financial and other losses. The amount
spent by the bank on employment, induction and training of outgoing officers constitutes.

Institute Of Administrative Sciences Page 45

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