Saba Intern

Internship report of Muslim commercial bank 1
Internship Report
Muslim Commercial Bank Limited, Pakistan
Submitted to:
Doctor mudasar Ghafur
ADMINISTRATOR, PUJC
Submitted by:
Saba Kousar BBA-F14-23
Department of Business Administration, Jhelum Campus

UNIVERSITY OF THE PUNJAB
CERTIFICATE OF APPROVAL
It is to certify that I have read Muslim Commercial Bank Ltd. Internship Report by Saba
Kousar and that in my opinion this work meets the criteria for approving the internship report
submitted in a partial fulfilment of the requirement for BBA at the University of the Punjab.
Internship Coordinator
Prof Amad
Lecturer
Department of Business Administration
University of the Punjab Jhelum Campus, Jhelum
Administrator
Doctor mudasar Ghafur
University of the Punjab Jhelum Campus, Jhelum

LETTER OF TRANSMITTAL
24/04/2018
Mr. Amad
Lecturer, Business Administration
University of the Punjab, Jhelum Campus
Subject: Submission of Internship Report
Respected Sir,
This letter is regarding the submission of my internship report, which is a mandatory
requirement
for my degree, entitled “Muslim Commercial Bank Ltd.” I was in MCB mangla road Branch
Dina for the 6 weeks () at operation department, during my internship period. This report
reflects the financial, operation and the business model of MCB specially the operation
department. I tried my level best to provide as much as information from different sources. I
would like to thank you for your supervision and also helping me throughout my internship
program for the completion of my BBA degree. This internship program has given me the
opportunity to know about this organization and to explore one of the latest and unexplored
areas of business in context of a developing country like Pakistan. It was a delightful experience
to working an organization like MCB. This gave me an opportunity to learn and understand the
corporate culture which will help me for my future professional career. I have also found the
experience of working with this report both challenging and interesting. I hope this report will
meet your expectation and standard. It would be a great pleasure if this report can serve its
purposes. I will be happy to provide you any kind of elucidation regarding this report.
Sincerely,
Saba Kousar,
BBA (Hons.), Session 2014-2018
ID: BBA-F14-23
DECLARATION
I hereby declare that this is my original work and that it has not been submitted elsewhere for
theaward of any other degree, diploma or other similar title or prize. To prepare this report, I
havegiven my best effort that would enhance the internship report.
Submitted by: Saba Kousar
DEDICATION
I am dedicating this project to my parents who has worked hard to bring me at this step of life
stairs. And the teachers whose support and appreciation made me what I am today.
ACKNOWLEDGEMENT
All praises, thanks and acknowledgements are for CREATOR; the Almighty ALLAH Who has
bestowed upon human being the crown of creation and has endowed him with knowledge and
wisdom. I offer thanks to the Holy PROPHET (PBUH) WHO is the beacon of enlighten and
the greatest benefactor, the mankind ever had. Who brought for us revelation and unlimited
knowledge and civilized the barbarian human being.
I would like to present a token of thanks my parents, family and Teachers who were
cooperative to me in the completion of this report and provided me their complete guidance. I
would also like to thank all the members of Area Office Muslim commercial Bank who were
very supportive towards me. As banks are very much sensitive about their secrecy, even then
after taking an understanding, they let me handle their delicate operations.
Table of Contents
The internship report ..................................................................................................................... 1

Executive summary ................................................................................................................................. 8
Introduction to banking…………………………………………………………………………………………………………………10
history................................................................................................................................... 11
vision,mission,objectives,goals .................................................................................................. 17
strategies of organization ..................................................................................................................... 18
adminstrative/management styles .......................................................................................... 6
situational analysis……………………………………………………………………………………………………………………………...
swot analysis
bcg
production facilities
company marketing mix
3c analysis
Porter 5 forces
Marketing mix
Company hr system
Horizontal analysis
Vertical analysis
Complete ratio analysis
Conclusion
recommendation
EXECUTIVE SUMMARY
The banking structure in Pakistan comprises of the following types, State Bank of Pakistan,
Commercial Bank of Pakistan; Exchange Banks, Saving banks, Cooperative banks, specialized
credit institutions. The state bank of Pakistan is the Central bank of the country and was
established on July 01, 1948. The network of bank branches now covers a very large segment
of national economy. The State Bank of Pakistan issues the shares of these periodically. Bank
employees and other common peoples can also purchase these shares and earn profit. In1956,
MCB transferred its registered office to Karachi, where the Head Office is presently located. In
April 1991, MCB became Pakistan’s first privatized bank. The corporate branch at Shahrah-e-
Faisal Karachi (SFK) branch is the corporate branch of MCB in Karachi. The bank is using
SWIFT for transfer of information about imports and exports. MCB SFK branch has Currently
Following three Departments General Banking Department, Advances Department & Foreign
Exchange Department. To open an account the customer has to meet the general banking
manager with an introducer. The procedure begins with the punching of account opening form
to the customer file i.e. Customer’s master file. Before closing any account, bank send letter to
the account holder for informing him that his account is going to be closed. There is need an
approval form higher authority to close any account. Current deposits are those which are
payable to bank whenever demanded by the customer. Bank does not pay any profit on current
deposits. The following are the financial products/services of MCB Malay Mail Scheme, PLS
Account, Saving 365 Account, Capital growth certificate scheme, Fund Management Scheme,
Khushali Bachat Account, Term/Fixed Deposits and others like night banking, credit cards,
traveler cheques.In remittance department like any other bank MCB also have instruments for
transferring of money, Telegraphic Transfer, Mail Transfer. 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,
and ledger of account cash received voucher sheet, cash paid voucher sheet, Paying-in-slip,
Cheque book, Cash balance book. The clearing in Karachi at MCB or other banks is being done
through NIFT (National Institute of Facilitation Technology).Bank provides this facility to the
people who need advance money to meet their requirement. Party dealing with other banks
financial condition of borrower business and as a first step credit proposal is being made.MCB
provides advances, which are two types. Secured Advances, Unsecured Advances. MCB usually
classified advances in to following types Agricultural Advances, Commercial Advances
Industrial Advances. Commercial Advances are of following types Demand Finance, Cash
Finance, Foreign bills purchased, Finance against imported goods, Finance against foreign bills,
Export Refinance Part I (Pre Shipment) & others. Banks Agriculture division deals with the
agriculture advances. Bank provides the Agriculture Advances in order to enhance and support
the agriculture sector of the country. Farm Credit & Non-Farm Credit. In foreign exchange,
MCB is dealing Foreign Currency Accounts, Foreign Remittances , and Foreign Bills for
Collection, Imports & Exports Foreign currency accounts & the foreign currency department
deals with the following types of accounts, Dollar Khushali account, Current account, Saving
bank account, Term deposit, Prime Currency Scheme. Foreign accounts are convertible on
floating rate available to the bank. Letter Of Credit facility is being provided by MCB in foreign
exchange.
INTRODUCTION TO BANKING
Banking services are extremely important for both economies developed and developing
economy such as Pakistan. Banking services serve two primary purposes. First one is, by
supplying customer with the basic mediums-of-exchange (cash, current account and credit
cards). Without these familiar methods of payment, goods could only be exchanged by barter,
which is time-consuming and inefficient. Second, by accepting money deposits from savers and
then lending money to borrowers, banks encourage flow of money to productive use and
investments. Without this flow, savings would sit idle in someone’s safe, it would not be
available to borrow, people would not be able to purchase cars or houses, and businesses would
not be able to build the new factories. Enabling the flow of money from savers to investors is
called financial intermediation, and it is extremely important for the growth of economy.
HISTORY OF BANKING
According to Professor Breton; “Banks are the guardian & distributor of money”
“Bank is a pipeline through which currency moves into and out of circulation.”
Bank accepts deposits and repays cash to its customers on their demand. The Bank borrows
money at a lesser rate of interest and lends it to the borrowers at a higher rate. It is thus a -profit-
lending concern. Bank cannot lend all the money that has been deposited with it. It has to keep
a certain portion of the total deposits in cash with them in order to meet the cash requirements
of the individuals and business concern.
Word Bank is said to be derived from the words Banc us or Banquet or Bank. The history of
banking is traced to as early as 2000 BC. The priests in Greece used to keep money and valuables
of the people in temples, acted as financial agents. The origin of banking is also traced to early
goldsmiths. They used to keep strong safes for storing the money and valuables of the people.
The FIRST STAGE in the development of modern banking, thus, was the accepting of deposits
of cash from those persons who had surplus money with them. The goldsmiths soon discovered
that all the people who had deposited money with them did not come to withdraw their funds in
cash. They found that only a few persons presented the receipt for encashment during a given
period of time. At the same time, they found that they were being constantly requested for loan
on good security.
They thought it profitable to lend at least some of the money deposited with them to the needy
persons. This proved quite a profitable business for the goldsmiths. This was the THIRD
STAGE, in the development of banking
experience the banks came to know that they could keep a small proportion of the total deposits
for meeting the demands of customers for cash and the rest they could easily lend. They allowed
the depositors to draw over and above the money actually standing to their credit. In Economics
terminology we can say that they allowed the overdraft facilities to their depositors. This was
the FOURTH STAGE, in development of banking.
When every bank issues receipts and most of them allowed the overdraft facilities, there was
then too much confusion in the banking system. The banks in order to earn profits could not
keep adequate reserves for meeting the demands of the customers for cash. The failures on the
part of the bankers to return money caused widespread distress among the peoples.
In order to create confidence among the people, steps were taken to regulate the banking
organization. A conference was held in Nuremberg in 1548. It was decided that a bank should
be set up by the state, which should streamline the banking organization and technique. The first
central bank was formed in Geneva in 1578. Bank of England was established in 1694. The
responsibility of issuing of notes is now entrusted to a central bank of each country.
THE MUSLIM COMMERCIAL BANK LIMITED
History:
MCB was founded by ISFHANI and ADAMJEE families in Calcutta on July 9, 1947.MCB is
not an overnight success story rather good track of services are responsible for the leap sand
bounds progress. After the partition of the Indo-Pak Subcontinent, the bank moved to Dhaka
from where it commenced business in August 1948. In 1956, the Bank transferred its registered
office to Karachi, where the Head Office is presently located. Thus, the bank inherits a 52-year
legacy of trust in its customers and the citizens of Pakistan. The performance of MCB was badly
affected by bureaucrat government. In January1974, MCB was nationalized by Bhutto
Government following the bank act 1974 subsequently in June 1974 Premier Bank Limited
merged with MCB.
Nationalization:
In January 1974, the Government of Pakistan nationalized MCB following the Banks
(Nationalization) Act 1974. MCB was the only bank which was nationalized solely as neither is
Nor any other bank being merged with it due to its consistent and firm policies and its sound
position.
Privatization:
When privatization policy was announced in 1990, MCB 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 good choice for
investors. On April 8th, 1991, the management control was handed over to National Group´ (the
highest bidders). Initially only 26% of shares were sold to private sector at Rs. 56 per share.
MCB besides being money financial organization have rendered invaluable services in the
economics and social developments of our country. MCB today, represents a bank that has
grown with time, experience and Pakistan. A major financial institution, in scope and size, it
symbolizes a fully-grown tree. Evergreen, Strong, and firmly rooted. Mian Mohammad Mansha
is the Chairman of the group (and also MCB) and has played instrumental role in its success. In
recognition of Mr. Masha’s contribution, the Government of Pakistan has conferred him with
"Sitara-e-Imtiaz", one of the most prestigious civil awards of the country.
Developments:
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.
• Introduction of Rupee Traveler Cheques & Photo Credit Card for the first time in
Internship report of Muslim commercial bank
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Pakistan. Extended use of information technology which is evident from the fact that there are
768 fully automated branches, more than 250- online branches (integrated networking), 151
ATMS in 27 cities nationwide and M.C.B continuously innovate new product.
About MCB:
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 also
exceeds their expectation. They strive to achieve excellence by ensuring that every moment of
their time is spent in adding value, making sure that they do things right, first time, and every
time. With the quest of quality MCB has always taken initiatives 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. 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.
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MCB Bank Limited

(Formerly Muslim Commercial Bank Limited) has a solid foundation of over 63 years in Pakistan,
the Bank provides 24 hour banking convenience with a network of over 1000 branches, the largest
ATM network in Pakistan over 450 ATM locations in the market.
ORGANIZATION PROFILE
Name of Organization: MCB Limited
Chairman: Main Mohammad

Mansha
Location: New Garden Town Lahore.
Branch code: 1080
Phone: +92-042-7727456 / 7720054
UAN: 111-000-622 (MCB)
Pattern of Share Holdings
Description Shareholding Percentage

Category as at 31st Dec 2016 No of Shareholders % No of Shares Holding
Individuals 95.1 43.5
Insurance and Assurance 0.1 7.1

Companies
Investment and Trust 1.0 17.90

Companies
Pension and Provident Funds 0.4 13.0
Other Corporate Bodies 3.4 18.5

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Total 100.00 100.00
Organization Structure
As MCB is a banking company listed in stock exchange therefore it follows all the legalities,
which are imposed by concerned statutes. MR. Mian Mohammed Mansha is chairman & chief
executive of the company with a team of 10 directors and 1vice chairman to help in the business
control and strategy making for the company. A team of 10 professionals is handling operational
management of the bank. MR. Mian Mohammed Mansha also heads this team.
The different operational departments are:

 Consumer Banking & IT Division
o Financial & Inter Branch Division
o Banking Operations Divisions
o HRD & Legal Division
o Financial Control & Audit Division
o Credit Management Division
 Credit Management Division

 Commercial Banking Division
 Corporate Banking Division
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.´
 Providing innovative
 Efficient financial solutions
 Long-term relationships with our customers
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 Shareholders invest with confidence
Strategic Objectives
Delivering remarkable returns to stakeholders, sustainable performance, exceeding market and
shareholder expectations. Providing value added services through operational expansion,
geography and upgraded system. Building a corporate culture of equality, trust and team spirit as
we remain dedicated to being a socially responsible organization
Financial goals and objectives
• increase number of corporate accounts by the end of the year.

• Increase total value of commercial loans by the end of the quarter.
• Increase number of consumer deposit accounts and consumer mortgages by by the end of the
year.
• Reduce employee turnover by offering a career development and training program by June.
• Improve community awareness of the bank's services by launching a branch marketing program
by the end of the fiscal year.
• By the end of the quarter decrease number of customer complaints per month by instituting a
quality control process for customer data management.
• Improve customer service scores in every branch by year-end
• Reduce customer wait time in line to minutes by ensuring adequate staffing during peak periods.
The new staffing plan should be completed within weeks.
Hr goals
• Determining the objectives
• Defining skills required to meet objectives
• Determine additional human resource requirements
• Develop action to meet anticipated hr requirements
Marketing’s goals
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MCB industrials sector Competitors:
Contrary to an existing trend of witnessing heavy loan losses in the domestic banking industry, the
MCB Bank reduced its volume of non-performing loans by Rs246 million to Rs23.9 billion in the
third quarter (July-September) of current calendar year from a recond quarter (April-June) 2010.
This was caused by MCBs management prudential approach towards bringing down its infected
loans portfolio at appropriate level and an effective implementation of risk aversion system in the
bank. The gradual slowdown in the provisional expenses has been acting as main key driver in
earning growth since many quarters. Risk-free and quasi risk free assets now comprise 57 per cent
of MCB lending book (loans + investments) while got securities are 35 per cent of total asset size -
also low duration and extremely liquid asset book. This coupled with below industry exposure to
high risk sectors and limited involvement in consumer financing adds credence to low risk profile
of MCB, said Merrill Lynch Report issued recently. A superior risk-return profile - and should not
be ignored in a high interest rates and weak macro setting in which MCB stands are the benefit most
in relative terms; more from higher rates and less from weak macros, it added. According to a
banking sector analyst, the performance of MCB has a superior Risk Management System in place
since privatization, a less infected portfolio, lowest NPL and above average recovery rate.
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Branch level hierarchy
Waqas
Waheed(Branch
Manager)
Faza Shah
(Operation
manager)
Shahid Saba Ijaz

Ifftikhar Kiyani Saqib Shahid
Suleman(Account (Remittance
Officer) (Cash officers) (Credit Officer )
Officer)
Bilal Ahmed
(Assisttent
account Officer)
Head Office
Chudrigor Road of Karachi has same importance in Pakistan’s economy as of the Wall Street in
world economy. The division working under MCB Head office is as follows:
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 Administration
 Credit Management
 Investment Banking
 Human Resource
 Information Technology
 Corporate Planning & Budgeting
MANAGEMENT OF ORGANIZATION
 Board of Directors
Mian Mohammad Mansha Chairman
S. M. Muneer Vice Chairman
Mr.Tariq Rafi Director
MR. Shahzad Saleem Director
Mr. Sarmad Amin Director
Dr. Muhammad Yaqub Director
Mohammed Hussein Director
Mian Raza Mansha Director
Mian Raza Mansha Director
Mian Umer Mansha Director
Mr. M. Ali Zeb Director
Ismail Shahudin Director

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Key Management:
 Audit Committee:
Tariq Rafi Chairman
Dr. Muhammad Yaqub Member
Mohammed Hussein Member
Aftab Ahmad Khan Member
Muhammad Ali Zeb Member
Malik Abdul Waheed Member
 Chief Financial Officer:

Mr. Salman Zafar Siddiqi Chief Financial Officer
 Company Secretary:
Mr. Abdus S. Sami Company Secretary
Values of MCB
Integrity
We are the trustees of public funds and serve our community with integrity. We believe in being
the best at always doing the right thing. We deliver on our responsibilities and commitments to
our customers as well as our colleagues.
Respect
We respect our customer’s values, beliefs, culture and history. We value the equality of gender
and diversity of experience and education that our employees bring with them. We create an
environment where each individual is enabled to succeed.
Excellence
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We take personal responsibility for our role as leaders in the pursuit of excellence. We are a
performance driven, result oriented organization where merit is the only criterion for reward.
Customer Centricity
Our customers are at the heart of everything we do. We thrive on the challenge of understanding
their needs and aspirations, both realized and unrealized. We make every effort to exceed
customer expectations through superior services and solutions.
Innovation
We encourage and reward people who challenge the status quo and think beyond the boundaries
of the conventional. Our teams work together for the smooth and efficient implementation of
ideas and initiatives.
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Competitors –
 National Bank of Pakistan
 Bank Al falah
 United Bank
 Allied Bank of Pakistan
 Citibank
 Habib Bank Ltd.
 Faysal Bank
 Prime Commercial Bank
 ABN Amro Bank
 Saudi Pak Commercial Bank
 Indus Bank
 Soneri Bank
 The Bank of Khyber
 Bank of Punjab
 Gulf Commercial Bank
AWARDS & ACHIEVEMENTS
2016 Euro money Awards Best Bank in Pakistan
2015 CFA 12th Excellence Awards Most stable bank of the year 2014
2015 Finance Asia Country Awards Best Bank in Pakistan
2015 ICAP and ICMAP 1st BCR Award 2014-Banking Sector
2015 SAFA Awards Winner of the best presented annual accounts 2014
2014 The Asset Triple A Best- bank Pakistan
2014 Asia money Awards Best of the best domestic bank
2014 The Asian Banker (USA) Strongest bank in Pakistan 2014
2014 SAFA Awards 1st Runner up best presented annual accounts 2013-
Banking Sector
2013 The Asset Triple a Best Domestic bank-Pakistan
2013 The Asset Triple a Best Islamic Deal
2012 The Asset Triple a Best Domestic Bank-Pakistan
2012 Euro money Best Bank in Pakistan
2012 ICAP and ICMAP 2nd Best Corporate Report Award 2011-Baning
Sector
2012 World Finance Best Commercial Bank -Pakistan
2012 Pakistan Centre for Philanthropy PCP Corporate Philanthropy Award
2011 ICAP / ICMAP 1st-BCR Award 2010-Banking Sector
2010 The Asian Banker Strongest Bank in Pakistan
2010 The Asian Banker Leadership Achievement Award
2010 SAFA Awards Certificate of Merit Award 2009
2009 Asia money Best Domestic Bank in Pakistan

10
2009 The Asset Best Domestic Bank in Pakistan
2008 Euro money Best Bank in Asia
2006 Asia money Best Domestic Bank in Pakistan
2005 Asia money Best Bank in Pakistan
2004 Euro money Best Domestic Bank in Pakistan

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Organizational Structure
As MCB is a banking company listed in stock exchange therefore it follows all the legalities which are
imposed by concerned statutes Mian Muhammad Mansha is Chairman of the company with a team of 10
directors and 1 vice chairman to help in the business control and strategy
making for the company. Operational Management of the bank is being handled by a team of
10 professionals. This team is also headed by Mr. Muhammad Mansha. The different operational
departments are Consumer Banking & IT div; Financial & Inter branch div; Banking operations
div; HR & Legaldiv; financial control & Audit div; Credit management div; Commercial
Banking div; Corporate Banking div; Treasury management & FX Group and lastly Special
Assets Management (SAM) Group .For effective handling of branches, it has been categorized
into three segments with different people handling each category. These categories are:
 Corporate Banking
 Commercial Banking
 Consumer Banking
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Corporate Banking:
These are branches which have an exposure of over Rs. 100 million. Usually includes
multinational & public sector companies.
Commercial Banking:
The branches which have a credit exposure of less than Rs. 100 million but having a credit
portfolio of more than Rs. 20 million (excluding staff loans) Usually branches in large markets
and commercial areas come under this category.
Consumer Banking:
These are the branches which have exposure up to Rs. 20 million and these include all the
branches which are neither corporate nor commercial branches. Recently the organizational
structure was re-designed as follows
Punjab 650
Sindh 243
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NWFP 103
Blochistan 36
Azad J.Kashmir 14
Domestic 1046
Overseas 7
Total 1053
Furthermore, the bank has some proposals under consideration to open more branches in some
European countries and as well as in Japan & china.
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SWOT ANALYSIS –
Strengths –
•Services offering are all Unique and different to others.
•Have the advantage of being the first mover in customer services.
•MCB Bank able to give really good customer care, because they know that customers
are the source of funds for them and also there is a great competition among the banks
in Pakistan.
•Very well and good atmosphere in bank.
•Attractive deposits and financing schemes offer by MCB bank with suit able interest
rate.
•MCB bank is currently in a good financial position
•Great check on operations and working of business through the Mystery shoppers.
•MCB Bank is always there, with absolute convenience and cutting edge technology,
to provide service beyond horizons.
•Online banking is the key feature. Key benefits of MCB Bank Online system is its
simplicity, convenient banking solutions over phone, instant access to banking services
from anywhere at any time, and saves time and money.
•Use of „SYMBOLS‟; banking software which produces greater customer satisfaction
by providing better services.
•MCB bank has an edge over other banks with regard to its timings which are from9am
– 5pm throughout the week and even on Saturdays. Banking is especially popular among
religious people and is operated by Muslims from all around the globe.
•Various types of personal loans are offered to general public for e.g. Car4u, Pyara Ghar
etc.
•MCB Banks virtual Banking provides greater convenience to customers as they can
handle their transactions from anywhere at any time.
•Diversification of their portfolio.
•Greater network with more than 900 branches all around Pakistan.
•Better control on losses.

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•Distinctive customer service provided to customers.

Weaknesses –
•Difficulty in managing the extended network of branches.
•MCB Bank has various types of Debit card but it does not provide its customers the
facility of Credit Card.
• Need to focus more Human Resource issues.
•Shortage of staff, which causes extra burden on existing staff leading to fatigue and
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Boredom.
•Inexperienced hiring process which results in placement of the wrong person at the
wrong seat.
Opportunities –
•Changes in social patterns, population, and lifestyle changes and in economical. Mean
people now thinking to deposit their money in such a sound bank.
•Good financial position creating a good reputation for future advances and huge
deposits.
•The MCB bank is entering in a growing industry and also going to further expand its
branches all over Pakistan as well as internationally.
•Such products or services which can give MCB Bank a monopolistic position.
Threats –
•Large and increasing competition.
•Threat of new entrants is always there.
•Threat of new entrants leads to the tough competition.
•„Hindi‟ system is still operating in Pakistan in growing rate, which is a great threat of
the Remittance department of the union bank limited.
15
BCG(Boston Consulting Group)
MCB lies in the first quadrant which is base on the market penetration, market development, and
product development.
Production facilities
MCB Corporate Financing
MCB Corporate Financing provides access to diversified financing options, including working
capital loans, term loans, trade finance services and investment banking.
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.
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.
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Cash management
Cash Management provides a wide range of value added services to large corporations through
its vast network of online branches. Our structured and customized products enable our
customers to realize their sales proceeds swiftly from all over the country, supported by real-
time MIS.
Transaction Banking Divisions
Transaction Banking provides wide range of value added services to large corporations through
its vast network of real-time online branches network. Our structured and customized products
enable our customers to realize their sales proceeds swiftly from all over the country, supported
by real-time MIS. The basic products offered by Transaction Banking Division are as under:
 Collection
 Payments
 Channel Financing
 Local Rupee Drawing Arrangement
 Home Remittances
MCB Accounts
Current Account
MCB Bank offers a variety of current accounts to cater to the everyday transactional needs of
various customers. These accounts ensure ease and freedom to bank from any of the 1,100
branches across the country. The different accounts include: the basic account that has no
minimum balance; Business Account offering free online transactions, Demand Drafts, Pay
Orders and lots more to meet the day to day business requirements; Current Life Account which
offers the security of life insurance free of cost; and for all the others the conventional Current
Account.
According to my experience and observation in the branch during Internship period
 No restriction on Withdrawals and frequency of transactions
 No profit is paid on Current Accounts
 Service Charges are recovered as specified in the Schedule of Charges
 No Zakat is to be deducted on Current Accounts.

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 Free of cost account statements are dispatched on half yearly basis within one week
after the mid-year closing. If any customer wishes to receive the account statement
other than the half yearly cycle, charges will be recovered as per the Schedule of Bank
Charges RS.50
 Account opening with Rs.500
 Minimum maintain balance Rs.1000 if less then minimum limit Rs.50 will deducted.
Saving account
It offers a wide array of savings products that suit short term growth & transactional needs. Our
savings accounts offer attractive profit rates as well as flexibility to transact. Savings Extra is
targeted for customers having Rs. 5 million deposit, 365 Gold offers profit rate on daily balance
while PLS savings has a lower minimum balance requirement. In addition, a unique product:
Smart Savings is an account run solely via a debit cart, offering a very competitive rate to small
savers.
Foreign currency Account

Enjoy the confidence of operating an international account, locally. MCB Foreign Currency
Account offers the option of earning attractive returns on your Foreign Currency Investment.
Saving 365 Gold
MCB Savings 365 Gold Account offers you a wide range of attractive profit rates. The MCB
Saving 365 calculates profits on a daily product basis and gives you the facility of unlimited
withdrawals.
Offered to Corporate Groups, Multinational Companies, Government and Autonomous bodies.
 Calculation of Profit is made on daily product basis at variable rates according to
Deposit Slab Range at declared rates on Half Yearly basis.
 There is no limitation on number of withdrawals and amount of withdrawals.
 The account requires a minimum deposit of Rs. 500,000 or more in order to get
attractive profits. In case, account holder is not maintaining a minimum deposit of Rs.
500,000 in the account, the profit is paid at the prevailing Savings Rate.
 Service charges would be applicable as per Bank Policy if the balance goes below the
prescribed minimum monthly average balance.
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 All other terms and conditions including rates of profit, Zakat and Withholding Tax
applicable to PLS Savings Bank Accounts are applicable.
Rates
Less than 10 Million 5%Rs.
10 Million to less than 25 Million 6%Rs.
25 Million to less than 50 Million 6.5%Rs.
50 Million to less than 100 Million 7%Rs.
100 Million to less than 250 Million 7.5%
Rs.250 Million to less than Rs.500 Million 8%
Smart Dollar Account
MCB Smart Dollar Account is a sensible way to maitain or grow your US Dollar deposit across
USD Current, Savings or Term Deposits.
Special Term Deposits
With a wide range of choices and tenors, you can open one or more term deposit accounts that
best suit your current or long term needs MCB Term Deposits offer attractive short to mid-term
investment options with flexibility, convenience and security. With various tenor
Options available customers can choose one that suits their needs. This is combined with
different profit payout options and the added facility of being able to avail credit facility against
their deposits.
Minor Accounts: (Age below: 18)
A Minor is a person who has not attained the age of 18 years, if the Court appoints guardian of
his/her person or property, then the period of his minority extends to the age of 21.
 An account in the name of minor is allowed to open by his guardian, preferably jointly
in the name of guardian / Minor or Minors, payable to either or survivor opener of the
Account.
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 Title of Account is on the Minor’s Name (As per Form –B) &word “Minor” be added
to the Title of Account
 In the Account Opening Application, the particulars of the Guardian will be filled out
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In the column of “Personal Information”

 Attested copy of Computerized National Identity Card (CNIC) of the
Guardian.5.Attested photocopy of Form-B of Minor.
Illiterate / Photo/ Disable Persons Accounts:

 Attested photocopy of Computerized National Identity Cards (CNIC).
 Two Attested Photographs. (One photograph shall be pasted on the Account Opening
Form and other will be pasted on Specimen Signature Card.
Business Accounts
Left thumb impression (Right thumb impression in case of female) on the account opening
application & Specimen Signature Card (SSC)
MCB Business Account lets you build your business through the accrued savings from
discounted transaction fees, and more
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Saving Extra Account
Grow with MCB Xtra by saving more and earning greater profit MCB Savings Xtra Account
offers you a wide range of attractive profit rates.
Current Life Account

The coverage you need for the life you lead. MCB Current Life gives you the peace of mind of
comprehensive life insurance in a current account and fits right into your lifestyle.
Mahana Khushali Bachat

MCB Monthly Khushali Scheme provides you with a steady income every month. Just purchase
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a Monthly Khushali Certificate and you will enjoy a steady income of your total deposit every
month. Terms deposit.
 Minimum balance requirement as specified in the Schedule of Bank Charges.Rs.20,000
 Profit provisioning/ accruals are made on Daily Closing Balance of the day.
 Profit is disbursed /paid on half yearly basis as per the rates notified by the bank.
 Free of cost Account Statement is dispatched on half yearly basis.
 Zakat is deducted as per the Government‟s and Zakat Usher Directives. Zakat is not
deducted on the accounts of Non- Muslims and where Affidavit is provided.
 Withholding Tax is deducted on Profit as per the Government’s policy.
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Standing Instructions:
For all Standing Instructions regarding payment of Utility Bills /HBFC Installments, customer
fills out the Standing Instructions Form (SF- 256A) at the time of opening the account or
subsequently whenever desired to avail such facilities
.
Account opening procedure
Following steps are involved in A/C opening,
Account opening form:

Firstly the customer fills the account opening form and provides all the information as provided
above. I experienced to fill this form.
Introduction
An account is needed to be introduced. The introduction of a current account holder is
accepted for the opening of an account. The introducer should be a branch customer or may be
account holder of any branch of MCB; however signatures should be verified by the banker. In
certain cases, introduction from bank other than bank MCB may be allowed. Personally
known accounts may be introduced by the bank staff. Introduction from an account holder not
personally coming to the bank should be verified by the bank.
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Stamping:
Then it is stamped. Stamps like. BAL sign verified, Sign Admitted Stamp, Sign Verified stamps
etc. are affixed.
Account Number:
When all the procedures are completed than the final approval is taken from the branch manager.
After obtaining approval, an account number is allotted to the customer and all the information
is entered in to the computer and KYC is filled up. Then that account number is writing on the
Cheque Book, Specimen Signature cards and account opening form
Knowing Your Customer

After entering information KYC is filled up. It should be ensured that at the time of filling
information in KYC, a customer should be physically present. After this all information is saved
in system. I filled KYC form also.
Approval:
This account is further approved by Manager Operations.
Send Form To Head Office:

After fulfilling all the requirements and verifying the forms from operation manager the account
opening form is sent to Head Office Karachi and make request to issue the printed cheque book.
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Letter of Thanks:
Subsequent to the opening of an account, letter of thanks should be sent under registered post or
courier service to the customer and the introducer.
Issuance of A Cheque Book:

After opening an a/c with the bank, the a/c holder cannot immediately start operating his/ her
account. The cheque book is issued, when a customer will submit a copy of letter of
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acknowledgement duly signed by him, in case of new account. And for subsequent issuance of
cheque book He/she has to make a request once again in the name of bank for the issuance of
cheque book and he should mention title of A/C, A/C number, sign it properly and mention the
number of leaves requires. Normally a cheque book having at least 25 leaves is issued but it can
also be of 50 leaves
Procedure for Issuance of Cheque Book:

1. Customer: Visits the branch and presents cheque book requisition slip. (Available in
the existing cheque book)In case of new customers or lost requisition slip/Cheque book,
customer fills out a cheque book Requisition slip.
2. CSO: receives requisition slip from the customer.
Confirms That…
 Account balance from the Branch Teller Module >. Also confirm the status of account
(Active, Dormant, and Inoperative).
 In case of dormant or inoperative account, CSO request the customer to perform a
financial transaction on the cash counter in order to activate the account & process
cheque book issuance request.
 System does not permit the processor to submit the cheque book request by disabling
the “SUBMIT” icon on the screen, if account has dormant or inoperative status.
 CSO Forwards cheque book requisition slip to Designated Authorized Officer to verify
customer’s signature from the Branch Teller module- BT.
3. Designated Authorized Officer/ Account Maintenance Officer (AMO)
 Verifies customers signature through Branch Teller Module >
 Input account number, press enter, account information & signature appears on the
screen.
 Sign-off and affix stamp “Signature Verified” stamp on the requisition slip.
 Returns requisition slip to CSO for further processing.

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4. Customer Services Officer (CSO- Input USER)

 Receives Requisition Slip
 Log in to Cheque book Registration System (CBR).

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 Input Account Number & click on submit icon.
 Next screen shows the customer’s account details. (At the bottom of the screen all the
Cheque Book Request that are linked to the customer’s account are shown along with
their status).
 Click to the option “Proceed” available on the above screen. Input “Number of Leaves
“as requested by the customer.
5. Click on submit icon, system saves the cheque book request with the “New” status.
6. Designated Authorized Officer/ Account Maintenance Officer (Approver)

 Approver inserts Login ID and password in the Cheque book Request System in order
to approve the cheque book requests. Click on submit icon.
 Click on customer’s Name link, Cheque book Request Details will appear on the screen.
 Check details with the Requisition Slips and select Application Status as “Accepted”
 Click on “SUBMIT” ICON.
 Keep Cheque book Requisition Slips in the Fire Proof Cabinets under Dual Control.
Approver ensures that all the above fields are properly filled by the Input user and
approve the Cheque Book Request accordingly.
7. Central Processing Division (CPD)
 Inserts USERID & Password and submit.
 Main Menu Bar screen appears, clicks on Print Cheque book Tab on the top Menu
Bar.
 Screen will show the details and total number of request received from all the
SYMBOLS Branches.
 Click on “Print” Icon & system gives following message “The Cheque book Request
has been set to Printed”.
 Details of the Cheque book Request automatically upload in the text file.
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 Forwards Text File to NIFT via e-mail.

8. NIFT: Forwards Text file to Printer for marking “Magnetic Ink Character
Recognition” (MICR) & Account Details (Number & Title of Account)
9. Printer:
 Receives cheque book requisition slips from the NIFT for marking MICR codes.
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 After one working day, delivers the same to the respective branches along with the
covering schedule.
 Forwards the details (Via e-mail- Text file) of the printed cheque books to the CPD for
verification and for uploading the cheque series in the CBR system.
10. Central Processing Division (CPD)

 Receives Text File from Printer and updates the cheque series in the system.
 After uploading the series in the system, “Printed” status automatically changed into
“Received”.
11. Designated Authorized Officer
 Receives processed cheque books from Printer along with the covering schedule.
 Mark received on the cheque book covering Schedule (report) and sign off the same.
 Notes down cheque series on the Cheque book requisition slip on which customer’s
signature is already verified. Note down the receipt date on the right corner of the
cheque book.
 Attach requisition slips with the respective cheque books.
 Keeps the cheque books in the safe custody under dual control. (Strong Room or Fire
Proof Cabinets).
 Designated Authorized Officer daily delivers the cheque book Box to CSO for onward
delivery to the customers.
12. CSO (Customer Service Officer) Daily generates Cheque book Issuance Report and
maintain a box file. Match the total number of cheque books received in day with system
generated report
Closing of an account:
• There is no. of reasons of closing an account. Some are listed below:
• If customer desires to close his account
• In case of death of one account holder.
• Bankruptcy of the account holder.
• If an account contain nil balance or not up to the requirement of rules.
Before closing any account, bank send letter to the account hold for informing him that this
account is going to be closed. There is need an approval form higher authority to close any
account.
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CLEARING DEPARTMENT
In clearing department I worked under supervision of Miss Saba ijaz. In clearing department I
learned about inward and outward clearing and I also learnt about,
Meaning of clearing:
“The word clearing has been derived from the word ³clear´ and is defined as”
A system by which banks exchange cheques and other negotiable instruments drawn on each
other within a specific area and thereby secure payment for their clients through the Clearing
House at specified time in an efficient way.
Learning In Clearing Department

My learning in clearing department was of following things:
 Procedure of clearing a cheque.
 Checking of cheques.
 Inward and outward clearing.
 Different reasons of returning a cheque.
 Types of clearing stamps.

Clearing Procedure:
Instruments collected are treated as Transfer, Transfer Delivery, Clearing, and Cheque
collection.
Checking Of Cheques
When the instruments are collected from the client. Following things are checked
• Cheque date, instrument should be neither stale/ nor post-dated.
• Title
• Amount in figures and words should be the same
• There should be no cutting and overwriting on the cheque
• Instrument should not bear any unauthorized alternation.
• Cheque is crossed.
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Transfer:
When the instruments are collected and paid by the same branch, it is called transfer.
Transfer Delivery:
When instruments are collected and paid by two different branches of the same bank situated
in the same city, it is called transfer delivery A cheque is processed under transfer delivery
when it has crossing stamp and is from local branch of MCB.
Cheque Collection (C.C):
When cheque is from another city then it is grouped as C.C. Such instruments are processed as
cheque for collection. In this procedure SF-37 form is used in Cheque collection. Original
voucher with cheque, stamped as C.C along with C.C number is sent to main branch of the
responding city which is further sent to NIFT. Whereas Carbon copy with Pay-In-Slip is taken
by bank for record purposes.
Pay-In-Slip:
It is used for two purposes:
• Whenever we want to deposit cash in our account then pay-in-slip is used by writing
amount on it and depositing it to cashier along with money.
• Whenever we have cheque from any party to be collected in our account we fill pay-in-
slip. One part is attached with cheque and another is given to cheque holder as a receipt.
Clearing:
Instruments which are drawn on the branches of some other bank of the same city or of the
same area, which is covered by a particular clearing house, are processed for clearing. There
are two types of clearing:
• Outward Clearing
• Inward Clearing
Outward Clearing:
“Outward clearing is to send the cheques to other branch” There are three types of outward
clearing
• Same day clearing

• Normal clearing
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• Intercity clearing
Same day clearing

In same day clearing send the cheque in the morning and receive the payment in the evening,
There are two conditions in the same day clearing
• Cheque will be 500000 or above
• Member of the same day
Normal clearing
In normal clearing send the cheque today and receive the payment next day. No condition will
impose in normal clearing like same day clearing.
Intercity clearing
Clearing between two cities is called intercity clearing. In intercity clearing cheque will clear
in two or three days. to understand the process of clearing we first need to understand and
comprehend the workings and the purpose of the state banks institution called NIFT.
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, Pay 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 acco In Ward Clearing
In the morning time I am received the inward clearing from the NIFT employee and then I
count he instruments which I received and match with the summery which is also attached with
these instruments. Than give these instruments to the computer operator who posts these
instruments, after posting all these instruments then he again give me the instruments and I
enter all these instruments into the clearing sheet in his Debit side
Outward Clearing
When the account holder of our bank receives payment from any other party in the form of
cheque, and that cheque is not of our bank or branch, and our account holder deposits it in his
MCB account then that cheque has to pass from the process of outward clearing. All the
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cheques deposited in one day of other banks are then again sent through the NIFT to the SBP
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which sends them to the head offices of their respective banks which through NIFT sends the
instruments to the respective branches from which they were issued. This process of outward
clearing is exactly opposite to the process of inward clearing which I explained in detail before.
This process of outward clearing is also of three days.
Procedure of Out Ward Clearing

First of all receive the instrument from different customers which they present on our branch.
• Separate these instruments with in city clearing wise and intercity wise.
• Giving the receiving slip to the customers.
• Write Down the detail of these entire instruments which I received from customer in to
the Clearing Register.
• Paste the Cross Stamp and clearing stamp at the front of these instruments Face.
• Paste the Payees Account Credited stamp at the back of these instruments
• Calculate the amount of all these instruments
• Prepare the delivery summery report
• Prepare the Clearing Bundle Cover
Also prepare the Add List After each and every thing is completed now put all these instruments
into the NIFT bag and closed this bag with seal. Than the third copy of delivery summery along
with deposit slips keeps in our custody, and then enter all these vouchers in to the clearing sheet
in his Credit side so this is the complete procedure of out ward clearing.
Intercity Clearing
There is the new concept of clearing which is named as intercity clearing. State Bank of
Pakistan now revises his policies and introduces this concept, because before this action if any
instrument which is belong to out of city, so in order to clear this instrument we sent this cheque
through CC Cheque Collection. Under cheque collection procedure it took five to six days
which time taking even though the CC procedure is not yet finished but minimum up to the
certain extent. Now in most of the big cities intercity Clearing performing his job instead of
CC, with the help of intercity clearing time duration is definitely minimum.
Facility of Inter City Clearing is now offer in these cities
 Karachi
 Lahore
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 Multan
 Rawalpindi
 D.G Khan
 Hyderabad
 Islamabad
 Sialkot
 Bahawalpur
 Quetta
 Peshawar
Remittance Department
This covers the services and products that Bank offers to its customers for Funds Transfer.
Currently Bank is offering following Products & Services for Fund Transfer: (Locally &
Internationally).
• Payment Order
• Demand Draft (Local & Foreign Currency
• Telegraphic Transfer (Local & Foreign Currency)
• Mail Transfer (Local
Currency) Demand Draft
• Demand Draft is a written order.
• Drawn by one branch of a Bank upon another branch of the same Bank, or upon other
Bank to pay a certain sum of money to or to the order of a specified person. It is issued by one
branch of a bank and payable by another branch of the same bank or another bank
• Demand Draft is a negotiable instrument.
• Demand Draft is neither issued payable to bearer nor drawn on branches situated within
the same city.
• Legal provisions as to crossing, endorsement, collection and payment in due course are
similar to those as for cheques and other negotiable instruments.
• It is to be ensured that the purchaser of Demand Draft is able to at least sign his name.
• Thumb impression is not to be accepted on Funds Transfer Application except in cases
where purchaser is maintaining an account with the issuing branch. A person unable to
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sign and not having an account may be advised to apply for the DD through a literate person
to sign on his behalf.
Parties involved in the Demand Draft
• Purchaser: Is the person, firm, company or local authority..
• Issuing or Drawing Branch: The Branch which issues a Draft on another Branch
• Drawee Branch: Is the Branch on which a draft is drawn.
• Payee / Beneficiary
Payment of Demand Draft via Cash

When Demand Draft is presented at the counter of a Drawee branch for cash payment,
identification of a payee is required. If a payee is the customer of a branch, his signature can be
verified from the specimen signatures on the record. A Crossed DD cannot be paid in cash,
except to a banker who collects the same for credit to his customer’s account. As such, a crossed
DD cannot be presented by the Payee for Cash payment at the counter.
Payment of Demand Draft in Transfer/ Clearing

Payment of Demand Drafts can also be made in Transfer/ Clearing. A complete procedure for
collection / payment has been explained in the section of Cash and Counter Services (Inward
Clearing).
Revalidation of Demand Draft
Since DD is payable within six months from the date of its issue, therefore, an instrument being
older than six months requires revalidation before payment
Following procedure will be used:
• The signature on such letter should be duly verified.
• DD should be presented to the Issuing branch.
• Particulars of the DD should be compared with those given in the RSBS or Branch
Teller Module.
A rubber stamp reading “Revalidated on --------” should be affixed on the DD under signature
of two authorized officers of the branch with IBS or AS Numbers.
Payment Order
Payment Order is used for making payments within a city. Literal definition of Payment Order
is as follows: “A Pay Order is a written authorization for payment, made in a cheque form issued
and payable by the bank, to the person named and addressed therein on his giving a proper
discharge thereon”.
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Term Deposit Receipt
Term Deposit Receipt is basically used for the saving purpose, and it is also use for transfer
purpose, which means amount moves from one account to another account, in term deposit
receipt specific time period is mentioned and during this particular period no one can withdraw
this amount from his account, so when we talk about some specific time period it may be three
months, six months three years etc. basically it depends open on customer according to his desire
made this Term deposit receipt. Term Deposit Receipt is basically a profit oriented instrument,
because customer deposits his money for specific period of time and on behalf of this bank will
pay some percentage of profit which depends upon the amount of deposit higher the deposit
higher will be the percentage of profit. Basically TDR is profit oriented instrument so that’s why
zakat is also applicable on it, no commission is charged on this term deposit receipt.
Deduction of Zakat Thereon
Because TDR is profit oriented instrument so that’s why zakat is applicable on it, now the
percentage of zakat which is deducted from the whole amount which is available in his account
is 2.5%. So this is the simple rule of Zakat deduction
Call Deposit Receipt
CDR is just like a hard cash, basically CDR is used for transfer purpose means amount transfer
from one account to another account, CDR is used for Bidding purpose or some time
government introduces different housing scheme and here he mentioned that you must
submit the CDR instead if net cash, but in now a days when the government of Pakistan impose
.2% withholding tax of the amount which is withdrawal over RS.25000/- in a day
Issuance of Call Deposit Receipt
Receive the request letter from customer and also receive the cheque and verify this cheque
weather this postdated, stale cheque or not and also check the sign verification of this customer
which is mentioned on this cheque and compare with signature card which is scanned in
computer.
Than send this cheque for posting here and see that is it enough amount in his account which he
written down on this cheque, if yes than further processing.
Maintenance of Records of CDR
For the purpose of maintenance of CDR record I used the CDR register. This register uses to
write down the following things
• Date of Deposit
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• Deposit number i.e. 58/10

• Deposit Receipt i.e. 770012
• Depositor name
• Account number
• Due Date (At Call)At
Call means that the bank will provide the same amount to the customer who made this CDR at
any time.
Payment procedure of Call Deposit Receipt
The customer whose name, account number is mentioned on this CDR he is only person who
can take this amount through his account not in counter payment. Basically CDR is mostly used
for transfer purpose that‟s why his payment is made only through account.
MCB Bancassurance
Combining the best of banking and insurance solutions, MCB Bancassurance has created a one-
stop shop for all your financial and insurance needs. Whether you want to save for your child's
education or marriage, for the security of dignity after retirement or gaining maximum return on
savings, MCB Bancassurance has a plan just for you. • Flexi Life • Life Partner • EduCare •
Dream Wedding • Capital Sure • Retire Easy • Income Max • Future Assure • Protection Plan
MCB’s Remittance
Fast, secure and easy-to-use, MCB's Remittance Services is an efficient way to transfer money
overseas. You can remit funds from any country to Pakistan through Swift System.
MCB Home Remittance provides a seamless inflow of foreign remittances credited in the
beneficiary’s account within minutes. Cash payments can also be made at our designated
branches on behalf of Xpress money, Samba (Speed cash now) and MoneyGram, along with
cash payments from other correspondents all over the world.
MCB Rupee Travelers Cheque

It is a safe and secure way to make payments nationwide. MCB Rupee Travelers Cheque, being
the market leader, is the most widely accepted way to pay cash for travel-related purposes MCB
Rupee Traveler's Cheques were first introduced in 1993 as safe cash for traveling and travel
related purposes.
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MCB Online Services

ATMs
MCB has one of the nation's largest ATM networks with over 450 ATMs and still growing.
MCB ATMs give you 24-hours convenience of cash withdrawal, mini-statement, utility bill
payment, funds transfer services and much more. With MCB Mobile ATM not only do we
provide you with world class banking service but we also provide convenience. Our innovative
mobile ATMs ensure that you are given service close to you.
Call centre
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 services relating to your account and Smart card at any point in time.
There’s no easier way to bank than the new enhanced 24/7 MCB Call Center, which blends
innovation and convenience to provide Banking Services that go beyond expectations. With
MCB Call Centre you can maintain your VISA credit & ATM/Debit cards, check your account
balances, confirm last 5 transactions, pay utility & mobile phone bills, top-up your mobile, pay
MCB Visa Credit Card bill from your MCB account, transfer money within your own accounts
in MCB and register complaint.
Mobile banking
At the forefront of technological excellence, MCB proudly introduces MCB MOBILE
BANKING. MCB Mobile is a quick easy and secure way to recharge mobile phones, transfer
money, pay bills and do much more. No need to visit a branch or an ATM anymore, login to
www.mcbmobile.com using your mobile phone and start transacting.
Bill payments
MCB easy bill pay offers unmatched convenience to pay your utility and mobile phone bills or
re-charge your prepaid mobile phone accounts anywhere, anytime with security and peace of
mind. MCB is the only bank that offers you 3 convenient options of making bill payments to
PTCL, SSGC, SNGPL, KESC, Mobilink, Supernet, IESCO,HESCO, and Ufone. So, save your
precious time by avoiding long queues and pay your bills through MCB Easy Bill Pay.
Online banking
MCB has a fast growing network of over 1,100 online branches in the country providing
customers real time online transaction facilities.
MCB Cards
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MCB Smart Card is the key that enables access to convenient banking services.Smart Card
allows you to manage your account, withdraw cash, transfer funds, pay utility and mobile bills,
recharge prepaid connections, register for mobile and internet banking services and much more.
The convenience and flexibility of MCB Smart Card 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
now brings MCB Smart Card -a secure and convenient instrument of payment with unmatched
functionalities. It provides 24-hour direct access to your bank account.
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.
Visa credit card

MCB offers a complete suite of Classic, Gold and Platinum Visa Credit Cards focusing on
providing, superior service, travel privileges & shopping pleasure. It also offers comprehensive
insurance & installment plans, reward points and SMS alerts that give a different feel to the
world of Credit Cards. These unique features include i-revolve, which makes variable mark-up
rate available to customers allowing them to repay at affordable rates.
MCB Investment Banking
Make the most of your wealth with investment opportunities that match your unique financial
aspirations. MCB Investment Services offer distribution of mutual funds managed by the
leading fund managers of Pakistan. We can suggest the products most suited for your needs, or
work with you to create a personalized solution completely focused on your expectations of the
capital markets MCB goal is to provide best financial solutions to client helping them achieving
their objectives and support economic growth of the Country.
The basic services offered by investment banking are as under:
Project & structured finance:
Involves financing complex projects, usually in an SPV structure, where the loan is tightly
structured around the cash flows, risks are allocated amongst various stakeholders, and there is
limited or no recourse to the sponsors.
Quasi equity & hybrid instrument
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It structures and places a category of debt that has some characteristics of equity such as being
34
Unsecured, subordinated or with a potential equity upside.
Equity Capital Raising
Equity Services relate to raising capital for clients by offering common or preferred equity to
public or private investors, through initial public offers, offers for sale, rights issues and private
equity placements.
Advisory services
Financial and Capital Raising Advisory provides clients with financial advisory services,
commercial structuring support and access to capital resources to help companies successfully
finance their business/project.
Facility administration
Management of creditor interests in syndicated transactions in capacities such as facility agent,

security trustee, project monitoring bank,book-Banking Complementary products and
services such as revolving lines of credit, trade services and cash management that may be
bundled with our Investment Banking Products.
Virtual Banking
MCB provides the convenience of banking via internet, whether at home, office or on travel,
log on to www.mcb.com.pk and enjoy 24 hour access to all your accounts at MCB for great
number of services such as Funds Transfer, Utility Bill Payments, Mobile Top-ups and much
more.
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

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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
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to the corporate employees, who maintain accounts with MCB.
 Bulk Funds Transfer for Corporate Customers.
 Cheque 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.
Islamic Banking:
With the help of Shariah specialists, lawyers and professional commercial bankers, MCB Islamic
Banking provides Riba Free and Shariah Compliant solutions to various customer segments in a
growing number of cities.
Deposit Schemes
For customers who are looking for a deposit opportunity where they can pursue their funds and
reap halal returns on it, MCB offer the following products:
o Al-Makhraj Saving Account

o Al-Makhraj Ianat Account
o Al-Makhraj Term Deposit
Fund Based Facilities
MCB offers 3 broad Islamic fund based facilities:
o Ijarah
o Murabahah
o Diminishing Musharika Equipment
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
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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:
o Car Ijarah
o Equipment Ijarah
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Murabahah:
It is a contract between a buyer and a seller under which the later first purchases the goods at the
request of the former i.e., customer and then sells it to same customer after adding profit.
Murabah Sale Price = Cost + Expenses incurred + Agreed Profit
Musharika Equipment:
It is a contract through which the bank and its client participate in the joint ownership of a
property. The share of the Bank is further divided into a number of units and it is agreed that the
client will purchase the bank’s share periodically, thus increasing his own share until all the units
of the bank are purchased by him so as to make the client the sole owner of the property.
OTHER SERVICES :
 MCB MNET
 MCB Salary Club
 MCB Lockers
 MCB SMS Banking
 MCB Full Day Banking
General Banking
It is backbone of banking it is one of the major department of MCB. It further consists of

following departments:
 Operations Department
 Current Department
 Remittance Department
 Clearing Department
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 Cash Department
 Accounts Department
 Technology Department
Departments Where Internship Was Carried Out´
 Operations Department
 Clearing Department
 Remittance Department
Operations Department
In Operations department I was under supervision of Mr. Faza Shah, and I learnt to open
accounts of different types and nature which are as follows,
Types of Accounts:
 Single Account
 Joint Account
 Partnership Account
 Private Limited account
 Public Limited Account

Single:
Only one person can operate this a/c. An individual who can fulfill the requirement of bank can
open this a/c. We can call it a personnel or individual a/c. The requirements for this type are
National Identity Card Photocopy, Minimum Deposited Balance, Account Opening Form,
Letter of Kinship etc.
Joint:
In case of joint a/c applicant mentions that how much person will operate the a/c. Instruction are
given for joint a/c such that the account shall be operated by anyone or more. The requirements
for this type are National Identity Card Photocopy, Minimum Deposited Balance, Account
Opening Form, Letter Kinship, Additional Signature Form (For Joint Account), Declaration
regarding the operator of account.
Partnership:
For partnership a/c, along with the application form other requirements needs satisfied. The
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requirements for this type are National Identity Card Photocopy, Minimum Deposited Balance,
Account Opening Form, Registration certificate, agreement among partner and
Commencement of business and private registration, resolution of board of directors,
commencement of business, memorandum and articles of association and balance sheet etc.
Private Limited:
Such type of account is opened in the name of the businesses having private limited concern and
mostly medium business enterprises open such kind of accounts. All the board of directors have
to submit the declaration regarding the account operator on the company pad and with the rubber
stamp with the signature of the all the members of the board of directors. In case of
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any change in directors bank must be informed regarding that. In case funds are borrowed by
the company all the directors approval is necessary rather not only the authorized partner who
can be the operator of the account.
Public Limited:
Public Limited A/C type of account is opened in the name of the businesses having Public
limited concern and mostly medium business enterprises open such kind of accounts. And terms
regarding board of directors are the same as of private limited.
Nature of Accounts:
 Current Account
 PLS Saving bank A/C
 Khushali Bachat Account (KBA)
 Saving 365 A/C
 Basic banking A/C (BBA)

Already discussed in detail in Incorporate banking portion before.
Other Departments
There have been some departments in which internship was not allowed, these departments were
 Cash Department
 Accounts Department
 Advances Department
 Technology Department
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after posting. Cashier assigns the stamp POSTED´ on the voucher to show voucher transaction
entries are posted.
Cash Payment Book:

The only instrument that can be used to withdraw an amount from an account is the Cheque
book. No payments are made by another instrument. When cheque is valid in all respects, the
cashier enters the necessary inputs in the computer and posts the entry so that account balance
is updated. When cashier posts these entries, computer automatically display the balance before
posting the transaction amount, balance after posting. The cashier at the same time maintains
the Cash Voucher Received Record Sheet´. Then inspects the signature of the
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customer, cancellation mark of checking officer and stamp of POSTED´ is placed on cheque
before he hands over the cash to customer.
Cash Balance Book:
At the end of the working day cashier is responsible to maintain the cash balance book. The cash
book contains the date, opening balance, detail of cash payment and received in figures,
The consolidated figure of receipt and payment of cash is entered in the cash book and the
closing balance of cash is drawn from that i.e.
Opening Balance of Cash + Receipts - Payments = Closing Balance
Non Fund Base Loans:
In non-fund based loans cash is not directly involved but bank gives guarantee on the behalf of
customer. Bank works as a third party and known as Guarantor. Bank provides a security to
customer when he needs and someone requires from the customer.
Documents Required By Bank For Advances:
 Request of customer
 Credit application from bank
 Basic borrower sheet
 Net worth certificate
 CIB report
 Financials
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3C ANALYSIS OF MCB
• Corporate
• Customer
• Competitor
Corporate
MCB is a renowned name in the banking sector which is offering its services for more than 20
years now. MCB is considered as one of the major Bank in Pakistan with the huge network of
more than 1100 branches in the whole country It is offering many products to its customers and
it also have 20 plus Islamic branches.
Customer
MCB has millions of customers in all over the country and they are loyal to it because of its
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different and profitable products and services. It also has a huge network of Islamic branches
which targets that customers which have interest related issues.
Competitor
Banking sector of Pakistan is now very huge and there are many small and large banks are there
in the market MCB has major competitor HBL which is also a big name in the banking sector.
Besides of Major competitors MCB also has many indirect competitors in the market which are
UBL ABL Alfalah bank LTD and these banks are offering many innovative products and
services to capture the market
Porter’s five forces model
For future analysis Of MCB environment porter’s five force model analysis is also applied on the
bank. This analysis takes into consideration to the following factors.
 Availability of substitutes:
Substitution of one product with another one increase the rivalry within an industry although
perfect substitute of banks are not available in the market but people still have choices of savings
or investing their money. They can either save their money at homes or put their money in the
National Saving Centre (banking intermediaries) which gives protection to their assets. These
kinds of substitutes increase rivalry among banking industry.
 Rivalry among existing firms:

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There is enough competition among various banks as variety of public or government banks
already exist in the market offering products on compitativeness.If we look at Islamic banking
products then Mezan Bank, Habib Bank and many others are offering wide range of products.
The competition among these banks given rises in the challenges which the competitive banks
have to face. The competition among various banks increases the switching of costumers from
one bank to other banks.
 Threat of new entrance:
The banking sector of any country has always chances of growth and competition as many new
banks enter and leave the market. Msotly foreign banks step in the devolving countries for
expending their branches not only this mergers between foreign and local banks take place on
large scale but Pakistan’s present economic condition and government instability has arisen the
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feeling of awe and terror among most of the foreign banks to enter in the market. In future, due
to uncertainty and security problems in Pakistan investors will not be willing to invest here. Due
to our all financial problems in the whole world new banks will not be emerging in to the
banking industry.
 Bargaining power of Buyers:
Bargaining power of buyers is low where the product substitutes are not available and customers
are large in number. In case of banks, there are a lot of other banks and banking intermediaries
having wide range of products, so power of buyers in banking sector is high. The banks cannot
force any customer to buy the desired product because this effects its requirements but can
convince its customers by giving them special discount on rewards. If we look at MCB we will
find that the competitors are also offering products due to which customer feel in power by saying
that they can go to some other banks in case of dissatisfaction.
 Bargaining power of suppliers:
As in the banking sector supplier does not exist so there is no bargaining power of suppliers.
MARKETING MIX
Marketing mix is one of the key concepts in modern marketing era. "Marketing Mix is the set
of marketing tools that the firm uses to pursuits marketing objectives in the target market".
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Marketing is very essential in the increment of profit of an organization. It has been observed
that the Union Bank is looking after all the basic requirements. The management of Union Bank
is concerned enough to accept and modify the desired changes in their organizational setup to
attract maximum customers. There is no separate department for marketing in every branch only
Karachi main branch hold it. In every branch 2 or 3 people are there to provide the promotion
services. Marketing is done on high level because management is centralized. Now are discussed
four variables of marketing mix of Union Bank.
•Product
•Price
•Placing
•Promotion
Marketing Mix – Product

"Anything that can be offered to a market for attention, acquisition, use for consumption that
might satisfy a need. It includes physical object, services, persons, places, organization and
ideas."- The largest network of 315 on-line branches in the country and growing, providing
customers with 24 x 7 real time online transaction facilities.
- Enjoy the convenience of extended banking hours from 9 to 5, even on Saturdays for satisfying
banking at all MCB Full Day Banking Branches all across the country where customers are now
served with wide range of services throughout the day.
-A deposit account for customer with substantial balances, offering profit on daily product basis
with the facility of unlimited withdrawals.
MCB Special Rupee Term Deposits –

MCB‟s Special Rupee Term Deposits offer a very attractive long term investment option with
ease and convenience. Tenor’s option available is of 3 months, 6 months, 1 year, 3 years, and 5
years. Customers can also avail a credit facility up to 75% of total deposits.
-The best protection for the valuables of MCB customers.
Lockers of different capacities are available nationwide.
MCB Bank Ltd.
-International remittances with a two – way messaging facility delivered at customer’s doorstep
within 24 to 72 hours.
MCB Islamic Banking –
MCB Islamic Banking provides Riba Free and Shariah Compliant solutions to various customer
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segments in a growing number of cities. With the help of Shariah Specialties, lawyers and
professional commercial bankers, MCB offers the best solutions to cater their customers‟ needs
– the Islamic way.
Marketing Mix – Price
"The amount of money that customers pay for the product"
Price should be commensurate with the offers perceived value. If it is not, customers will turn
to competitor's product. Prices offered by MCB Bank Limited are according to the high quality
services they render to their customers. About the markup charges it‟s vary banks to banks but
not very much difference according to my analysis. MCB bank has different tenure to different
products so and also the different rates to charge. They believe in the higher the amount the
higher the profit.
Marketing Mix – Place
Place includes the various activities the company undertakes to make the product accessible
and available to the customer".They also have a banking network of more than 950 branches. If
you want financial advice, walk into any of their branches. Head office and Main office is on
the in Karachi, which is the center of business activity. Locations of MCB Bank depend on the
locality around and how much business it supports. The services provided to customers too
depend on the location of the branch and its total deposits.
MCB BANK LTD. About the future development union bank is looking forward to open its
more branches in the various cities of Pakistan. This will create more flexibility and also give
the diversification to the bank.
Marketing Mix – Promotion –
"Promotion includes all activities that an organization undertakes to communicate and promote
the products to customers. Promotion programs consist of advertising, sales promotion and
public relations."
At MCB Bank it is appreciated if staff member introduces new customers but usually it is based
on personal relations. Advertising is done in form of Neon signs and signboards. They publish
their brochures and pamphlets so that the information is communicated to a large number of
people. They distribute calendars, diaries and key chains to their officers and customers. No
doubt MCB bank is doing promotion activities very strongly. The marketing department knows
the competitive environment very well. And the department is working very well in this context.
Promotion managers are using every media to advertise their products as others banks are doing.
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Mcb Hr System
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 follow:
 The attraction of employees
 The retention of employees
 The development of their personalities and minds

HRM is needed in making suitable policies. It present, these policies before committee for
discussion and approval. It deals with following personnel matter:
 Selection & Recruitment Policy.
 Employee training and development program.
 Performance appraisal of employment
 Benefit Schemes.
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 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 HRD are as follows:
1. 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.
It has some basic requirements:
 Candidate must be a citizen of Pakistan
 She/he must be a business graduate, and
 She/he should have attained the age of 18 years but not exceeded the age of 35 years.
2. 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:
 Pre-service training
 In-service training
i. Pre-Service Training:
Immediately after the selection of employees this type of training is given. Duration of pre-
services training period is of six months. In such a training operational practice and banking
operational disciplinary courses are brought.
ii. In- Service Training:
The in-service training period time duration to the employees during the service is of three
months. This sort of training helps in introducing them to the latest teaching and methods of
business.
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3 Promotions:
Promotion refers to a change or movement of an employee in vertical direction involving
greater responsibility and authority and also an increase in salary, better service conditions,
and position and rank 23. The purpose behind a promotion policy is to attract and retain
qualified people, promote job satisfaction, recognize better performance and motivate the
employees.
As for as the promotion policy of MCB is concerned, it is solely based on seniority. Officers
are promoted to higher grades after having fulfilled the minimum experience required for the
grade.
4 Performance Appraisals of employees:

For the evaluation of the performance of the employees, the bank takes the following steps.
i. Audit Report
ii. Inspection
iii. Sanction
i. Audit Report:
This report is prepared by the auditors of the bank every year & it emphasis on management
business transaction functions. This audit report indicates the yearly performance of every
worker.
ii. Inspection:
A team is selected by headquarter. Then teams inspect the performance of the branch. The
member of these teams also contracts the clients, of the bank and inquires about the performance
of the bank.
ii. Sanction:
In this, a case punishment is awarded to the employee of misconduct or bad performance.
Stopping promotion and business like actions are taken.
5. Salaries & Wages:

The employees of MCB are entitled to the pay of the grade to which they are appointed. The
Executive Board will determine the various scales of pay for the employees.
6 Fringe Benefits
Fringe benefits are given to the employees in addition to their regular salaries, These include all
expenditure designed to benefit employees over and above regular basic pay and direct
compensation related to output.
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7. Terminations:
The employees of MCB can be terminated in the following three ways:

 An employee shall retire from service if:
 She/he has completed 30 years of service in the Bank, or
 She/he has attained the age of 58 years.
 An employee may offer his/her resignation by giving written notice. This notice must
be given three months before in case of officers and one month before incase of clerical
and non-clerical staff.
 An employee may be dismissed from service if charges against him/her proved after
conduct of enquiry.
SWOT Analysis of HR Department:

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Strength:
1. Increase the number of corporate accounts.

2. Reduce turnover of employees by career development and training.
3. Increase total value of commercial loans.
4. Decrease customer complaints.
5. It provides retail consumer banking.
Weakness:
1. Lack of online- information to the customer about the changes taking place in the
world,In earlier days of month there is a great rush of customer, which cause
inconvenience for the officer concerned and cashier as well.
2. High charges.
3. Not handsome salary packages.
Opportunities:
1. BOP b should join foreign markets it will give benefits to its employees in term of
other facilities.
2. Innovative ideas to increase new and innovative employees.
3. It should expand the business and its operations.
4. E- banking facility is also new opportunity which is flourishing business in foreign
countries and can also be here, JS takes initiatives.
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Threats:
1. Upcoming banking and existing competition and it has lack of employees of that
nature.
2. Hold of foreign banks on market.
3. Political disturbance.
4. Growing global technological advancement.
5. Facing more competition by foreign banks in the market.
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FINANCIAL ANALYSIS
51
Ratio Analysis
 Ratio analysis is an important and old technique of financial analysis. Ratios are
important and helpful in the reference that:
 These simplify the comprehension of financial statement and tell the whole story of
changes in the financial conditions of the business.
 These provide data for inter-firm comparison. The ratios highlight the factors associated
with successful and unsuccessful firms, also reveal strong and weak firms.
 These help in planning and forecasting these can assist management in its basic functions
of forecasting, planning, coordination and control.
 These help in investment decision in case of investor and lending decision in case of
Bankers etc.
However, the ratios are only indicators, they cannot be taken as final regarding good or bad
financial position of the business other things have also to be seen. Great care is needed while
calculating meaningful ratios and in interpreting them. Although there are several ratios, which
an analyst can employ yet the type of ratios he would, use entirely depends on the purpose for
which the analysis is done i.e., a creditor would keep him abreast about the ability of a concern
to cover up its current obligations and so would careabout current and liquid ratios, Turnover of
receivables, coverage of interest by the level of earnings etc.
Advantages of Ratio Analysis:

It helps to give comprehensive financial statements in evaluating aspects of any undertaking in
respect of financial health, operations efficiency and profitability. It gives a chance of inter-
firm-comparison to measure efficiency and helps management to resort to some remedial
measures. It provides a good help in decision making for investors and the financial institutions.
49
Categories of Ratio Analysis:
 Liquidity ratios
 Activity ratios
 Debt ratios
 Profitability ratios
 Market ratios
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Liquidity Ratios
The liquidity of a firm is measured by its ability to satisfy its short-term obligations as they come
due. Liquidity refers to the solvency of the firm’s overall financial position i.e. the ease with
which it pays its bills. Due to low or declining liquidity firm moves towards financial distress
and bankruptcy. Liquidity Measures are
o Current ratio
o Quick (acid-test) ratio
Current Ratio:
The current ratio, one of the most commonly cited financial ratios, measure the firm’s ability to
meet its short-term obligations. It is expressed as follows:
Year 2015 2014 2013 2012 2011
Current Ratio 0.672933391 1.111297 0.77532979 6.7733415 9.4564589
Debt Ratio
The debt position of a firm indicates the amount of other people’s money being used to generate
profits. In general, the financial analyst is most concerned with long term debts, because these
commit the firm to a stream of payment s over the long run. The debt ratio measures the
proportion of total assets financed by the firm’s creditors. The higher this ratio the greater the
amount of other people money being used to generate profit.
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Year 2015 2014 2013 2012 2011

Debt Ratio 0.853263187 0.849672 0.85941088 0.862784 0.8603522
Debt to equity ratio:
Year 2015 2014 2013 2012 2011
Debt to 7.783894319 7.525406 7.01221373 7.0122137 1.1242217

equity ratio
Market Ratios
 Return on total assets
 Return on equity
Return on Total Assets:

It measures the overall effectiveness of management in generating profits with its available
assets. The higher the Return on total assets better will be the performance.
Year 2015 2014 2013 2012 2011
ROA 0.025133036 0.026026 0.0249666 0.0334256 0.0286113
Total asset turnover ratio:
Year 2015 2014 2013 2012 2011
Total asset 0.071361019 0.069465 0.04009855 0.0066791 0.0651643

turnover ratio
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Return on Equity:
The return on equity of the firm is 22% in 2015. It is less more the previous year. It shows that
firm generates Rs.22 for each Rs.100 of the investment made by the partners or shareholders of
the company (which are privately owned by four brothers)
Year 2015 2014 2013 2012 2011
ROE 0.226308133 0.227529 0.20470647 0.282526 0.2303329
Vertical analysis of Balance sheet
Vertical Analysis of profit & loss account

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In vertical analysis each item of a financial statement is presented as a % age of the total of items
or some other suitable items.
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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 45% in 2010 to 31% in 2015 During
the past few years, government credit demands have increased and bank has investment its
excess cash in risk free government securities i.e. Market Treasury Bills and Pakistan Investment
Bonds. On an average, the contribution from markup income approximates 82% of the total
revenue. Markup expense has increased over the last 6 years, based on regulatory revisions
enacted over the period and growth registered in the deposit base. Concentration of Non markup
income in total income has increased significantly over the years due to innovative solutions
offered to our customers, new products launched, and gain on sale of securities. With the growth
in business non markup expense has also increased from 22% in 2010 to 24% in 2015, which is
well within the reach on budgetary limits.
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Horizontal Analysis:
In vertical analysis each item in financial statement of the last year is considered as a base of the
same items.
Horizontal analysis of Profit & Loss account

57
Horizontal analysis of Balance sheet
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 12% over the last six
years. Highest increase in investment base was reported in 2011 of 49%, followed by 27%
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increase reported for 2012. The deposit base of the Bank has increased considerably over the
years growing from Rs. 431 billion in 2010 to Rs. 708 billion in 2015 translating into an
annual growth of 10% over past 6 years. Equity of the bank has also posted healthy increase
due to higher profitability in past 6 years, translating into 10% average growth. On to Profit and
Loss side, gross markup earned has posted an average increase of 8% over a span of six years.
Corresponding to the shift in asset mix, contribution from income on investments has increased
over the years. The increase in markup expense on deposits is on account of regulatory revisions
enacted by the Central Bank and volumetric increase in deposit base. Despite the regulatory
revisions enacted during the period, the cost of deposit was strategically managed by reducing
high cost deposits and increasing the CASA base of the Bank. However, the cost of deposit of
the Bank has increased by 12% over the six year period under coverage Non Markup income
block has shown enormous growth in recent years and the growth rate in past six years is 22%,
whereas non markup expense has grown by an average of 12% which is justifiable on account
of growing operational infrastructure and inflationary patterns.
Provision against advances and investments has been on a declining trend, apart from the year
2015 reversals have been made in 2014 and 2013 on account of our prudent risk management
framework and aggressive provisioning strategy. Despite have charged provision expense in last
quarter of 2015, provision of above Rs. 4 billion have been reversed in last 4 years. Profit Before
Tax (PBT) and Profit After Tax (PAT) have increased by an average of 10% and 9%,
respectively, marking MCB as one of the most profitable bank in the industry and highest ROA
in the region.
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Information about Branch

I did my internship in Muslim Commercial Bank Limited Dina. And some important
information about my branch which I observed are as follows:
Designation No of Name of employees

Employees
Branch manager 01 Mr. Waqas Waheed
Operations 01 Mr. Faza Shah

Manager
Accountant 01 Mr. Shahid
Suleman
Foreign 01 Ms. Saba Ijaz

remittance
Officer
Cashier 01 Mr Iftikhar
Security Guard 02 Tayab shahzad
Peon 01 Mulazam
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MCB POLICIES AND PROCEDURES
Since the inception of Muslim Commercial Bank Limited in 1947, by the grace of almighty, the bank has
moved rapidly in expanding its branch network and deposit base, along with making profitable advances and
increasing its range of products and services. It has made a break- through in providing premier services at
an affordable cost to our customers. Managerial policies followed by the bank have a direct contribution in
its success. The Board and Management of the Bank have implemented strategies and policies to carve a
distinct position for the Bank in the market place. In a bid to satisfy MCB‟s shareholders and valued clients,
the management initiated the process of realization of the Bank's vision by consolidating its financial position
and creating a large and diversified business base. MCB‟s policy regarding consumer-banking policies
includes the development through the electronic consumer banking operations. Likewise, MCB has created
a niche for itself in the marketplace. It is planning to introduce new consumer products like credit cards, e-
banking etc.
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PEST Analysis
Political Environment:
Lawyers‟ movement
• Violence in Karachi
• The Lal Masjid debacle
• Militancy operation in FATA, NWFP and Swat its impact on other parts of the country
• The return of Benazir Bhutto‟s and her subsequent assassination
• Unstable political situation affect bank’s policies
• Talibinization affected our repute in the world
• Investors hesitate investing in Pakistan
Economic Indicators:
• Gross Domestic Product (GDP)
• Inflation Increased
• Balance of payment
• Debt of the government increased
• Decrease in FDI (Foreign direct investment)
• Financial crisis made it BAL management difficult to survive
Socio cultural environment:
• low saving culture
• Religious culture and people hesitate to accept interest on deposits
• 70% rural population and very low literacy rate
Technological Factors:
• Banks turning to heavy IT investments which differentiate their products
• provide response times
• improve customer satisfaction
• products and services are gaining faster acceptance like ATM, Master cards, Telebanking,
Internet banking and mobile banking.
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SUGGESTIONS
• It is suggested that since they want to focus on individual branch needs and see each individual for
their career development, they can shift to relationship management. Through this, they would be able
to maintain a direct contact with each individual and would be able to better analyze their needs and
obtain maximum output. Area Office MCB Limited Dina should increase in the number of employee to
balance the work stress.
• The Telecommunication sector should be strong enough that people in the MIS dept. don't have to
wait or delay (in case the line is dead).
• From the users point of view I feel need of a proper training department at Area Office MCB Dina
to train system programmers regarding the knowledge about the system so that the concerned person
does not gets confused when a problem arises.
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• Besides these I feel that more people should be employed in the MIS department keeping in view the
range of responsibilities that the computer system manager has. Moreover, there should be an in house
hardware maintenance workshop so that if some hardware has a problem it can be taken care of at the
spot. This would save time as well as cost.
Personal Loan is a Fast, Affordable and Easy option to meet your immediate financing needs.
• If any assistance is required in the cases of hardware or software failure computer engineers should
be available in the branch.
• Senior Management should keep on getting feedback from employee to bring the employee’s loyalty.
 One way to retain the customers is to offer a wide range of services such as tax advice, free life
insurance equivalent to amount deposited, shares portfolio management, fund management facility,
etc., complimentary to the core services. Banks must have a slightly different mix of services and
mean of providing these such that customers can choose the mix that suits them best.
Bank should organize various ceremonies according to the different locations culture and traditions
CONCLUSION
Management of area office cares a lot of its employees and considers them as the Asset of bank. Behavior of
area manager is very polite and they are caring about the individual’s career and their growth.
I have been able to learn and experience many new things related to the banking sector and the banks
workings. I am able to handle the public with respect to many different workings on many different instances
and also in account opening for customers and can handle many other tasks as well. Finally I concluded that
MCB is a good organization for a person for his long term career workings. Overall working and environment
of the bank is very comfortable and the staff is very helpful and respectful of each other and it still maintains
a professional environment.
However management is very demanding about the targets but good reward at the achievement of assigned
targets is awarded.
Management of the bank is very strong. Employees of MCB Timber Market branch work more than their
working hours and all the workings take place in a very friendly atmosphere that does not induce pressure on
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the person working there. It also shows their loyalty and commitment to the organization. This branch of
MCB relatively small and has climbed its way up very quickly and all that only because of the employee’s
efforts and consideration for each other Understanding and the effective management of the human resources
is the most difficult challenge faced not only by the bank but by all the organizations. Even though the people
have been sacrificed in the new organizational developments, it is becoming clear that the true lasting
competitive advantage comes through human resources and how they are managed. MCB seem to not
focusing on this highly critical issue as the job satisfaction level of the employees working at MCB, was quite
low.
RECOMMENDATIONS
In order to increase the efficiency and performance of bank we recommend that:
• Sufficient number of employees to uplift the burden of work.
• System and operations should be more defined and organized.
• Sufficient steps should be taken to improve customer services.
• Proper product information should be delivered to all the employees.

59
• IT draw backs should be improved.
• Internal audit and system should be improved.
• Draw backs should be improved by the strict control of general issues.
• Time to time employees training programs should be arranged.
• It is observed that the employees were overburdened so they have to stay at office till late at Night. In
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this way their efficiency is affected and their work can be reduced by hiring more employees.
Work Performed During Internship

My internship provided me a great opportunity to learn &experience different banking practices. During the
six weeks of my internship I got a good chance to see what the actual banking is regarding the operations
performed at my branch i.e. account opening, remittance, clearing and deposit department.
1st week: During the first week of my internship, I learnt these things at the account opening/maintenance
department:
• To open the account
• To set the account no. Stamp.
• To fill in the deposit slip
• To issue a cheque book
TO OPEN THE ACCOUNT:

During my internship, I opened three types of account;
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 Single account
 Joint account
 Business Account
Single Account:
I monitored three types of accounts under this head along with documentation required for these accounts.‟
• Account of a literate person
• Account of a salaried person
• Account of an illiterate person
Joint Account:
Besides opening this account I was provided with the following information regarding Joint account by
manager ops. How a joint account is affected by the death of one joint account holder:
Partnership Account:
I did not open this account personally, but I know the following regarding PARTNERSHIP ACCOUNT.
• Documents needed to open this account
• Moreover the operation manager told me these things regarding the partnership account:
Account Maintenance Activities:
Related to the account maintenance activities, i have learnt these things:
• Cheque book issuance to the existing /new account holder
• Issuance of smart card (ATM) to the existing/ new account holder:
Other things which I have learnt about ATM involve:

• ATM Card Categories
• ATM Card Features
• Fund Transfer via ATM
• ATM Card Charges
• Delivery & Custody of ATM Card
2nd & 3rdweek:
My 2nd& 3rd week of internship were at remittance department, where I learnt the following things:
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 Study of different types of vouchers related to the TRANSFER
 To fill a voucher for online transfer
 Online transfer via cheque
 To issue a demand draft via cheque
 To post the voucher for online transfer & DD
 Got some information about pay order from the relevant officer
 To make a TT to transfer access money to the head office

61
4th & 5th week:
My 4th & 5th week was in the cash cabin and I performed following work there:
 To make the online transfer voucher via cash
 To post these vouchers
 To issue a DD via cash
 To post the vouchers for this DD
 Study of cash book and cash position book
 Visit to strong room
6th week:
During the 6th week, I worked with the operation manager and learn about his working.
 How he checks the daily vouchers related to transfer, cash and clearance departments
 I have some idea about the opening & closing of bank but not have a through grip on it.
 How the manager authorize various transactions
 I also have some idea about the DAILY GENERAL LEDGER REPORT.
Benefits of doing Internship:
 During my internship I dealt with many customers and employees, this was a great experience to
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learn
 How to deal with customers and how to manage an office
 How to work under pressure i.e. in rush hours.
 My communication skills were improved.
 I observed some signs of mismanagement which I think can be removed if area manager take more
responsibility.
I observed the practical application of many accounting concepts
REFERENCES:
1.Personalities
 Mr.Waqas Waheed (Branch manager)

 Mr.Saqib Shahid (Credit officer)
 Mr.Faza Shah (Operational Manager)
2.Books & Journals:
3.Websites:
 http://vustudents.ning.com/group/fini619internshipreportfinance/forum/topics/internship-
report-on-muslim-commercial-bank-limited
 https://www.mcb.com.pk/about-mcb/management-profiles
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 https://www.scribd.com/doc/21694200/Internship-Report-MCB-Bank-Ltd
 https://www.scribd.com/doc/36574667/internship-report-of-mcb-2010
 http://www.degruyter.com/dg/viewarticle.fullcontentlink:pdfeventlink/$002fj$002fjcbtp.2015.4.issu
e-2$002fjcbtp-2015-0010$002fjcbtp-2015-0010.pdf?t:ac=j$002fjcbtp.2015.4.issue-2$002fjcbtp-
2015-0010$002fjcbtp-2015-0010.xml
 http://www.academia.edu/5117515/Mcb_Report_Hr_Management
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Internship report of Muslim commercial bank 1

Muslim Commercial Bank Limited, Pakistan

Department of Business Administration, Jhelum Campus

University of the Punjab Jhelum Campus, Jhelum

The internship report ..................................................................................................................... 1

company marketing mix

Complete ratio analysis

THE MUSLIM COMMERCIAL BANK LIMITED

MCB Bank Limited

Chairman: Main Mohammad

Branch code: 1080

Phone: +92-042-7727456 / 7720054

UAN: 111-000-622 (MCB)

Pattern of Share Holdings

Description Shareholding Percentage

Individuals 95.1 43.5

Insurance and Assurance 0.1 7.1

Investment and Trust 1.0 17.90

Pension and Provident Funds 0.4 13.0

Other Corporate Bodies 3.4 18.5

Total 100.00 100.00

The different operational departments are:

o Financial & Inter Branch Division

o Banking Operations Divisions

o HRD & Legal Division

o Financial Control & Audit Division

o Credit Management Division

 Credit Management Division

 Shareholders invest with confidence

Financial goals and objectives

• increase number of corporate accounts by the end of the year.

MCB industrials sector Competitors:

Branch level hierarchy

Shahid Saba Ijaz

 Corporate Planning & Budgeting

S. M. Muneer Vice Chairman

Mr.Tariq Rafi Director

MR. Shahzad Saleem Director

Mr. Sarmad Amin Director

Dr. Muhammad Yaqub Director

Mohammed Hussein Director

Mian Raza Mansha Director

Mian Raza Mansha Director

Mian Umer Mansha Director

Mr. M. Ali Zeb Director

Ismail Shahudin Director

Dr. Muhammad Yaqub Member

Mohammed Hussein Member

Aftab Ahmad Khan Member

Muhammad Ali Zeb Member

Malik Abdul Waheed Member

 Chief Financial Officer:

2015 Finance Asia Country Awards Best Bank in Pakistan

2015 ICAP and ICMAP 1st BCR Award 2014-Banking Sector

2014 The Asset Triple A Best- bank Pakistan

2014 Asia money Awards Best of the best domestic bank

2014 The Asian Banker (USA) Strongest bank in Pakistan 2014

2013 The Asset Triple a Best Domestic bank-Pakistan

2013 The Asset Triple a Best Islamic Deal

2012 The Asset Triple a Best Domestic Bank-Pakistan

2012 Euro money Best Bank in Pakistan

2012 World Finance Best Commercial Bank -Pakistan

2012 Pakistan Centre for Philanthropy PCP Corporate Philanthropy Award