21439291 Internship Report on MCB

7/29/2019 21439291 Internship Report on MCB

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INTRODUCTION

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

about Rs. 280 billion and total assets of around Rs.300 billion.

Incorporated in 1947, MCB soon earned the reputation of a solid and

conservative financial institution managed by expatriate executives. In

1974, MCB was nationalized along with all other private sector banks

following the Bank Nationalization Act 1947.

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

nationwide distribution network of 1,700 branches, including Islamic

banking branches, and ATMs.

During the last fifteen years, the Bank has concentrated on growth

through improving service quality, investment in technology and

people, utilizing its extensive branch network, developing a large and

stable deposit base.

HISTORY AND BACKGROUNG

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

solid foundation of over 50 years in Pakistan, with a network of over1700 branches.

Eighteen years after privatization, MCB is now in a consolidation stage

designed to lock in the gains made in recent years and prepare the

groundwork for future growth. The bank has restructured its asset

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portfolio and rationalized the cost structure in order to remain a low

cost producer.

MCB now focuses on three core businesses namely Corporate,Commercial and Consumer Banking. Corporate clientele includes

public sector companies as well as large local and multinational

concerns. MCB is also catering to the growing middle class by providing

new asset and liability products. MCB looks with confidence at year

2005 and beyond, making strides towards fulfillment of its mission, "to

become the preferred provider of quality financial services in the

country with profitability and responsibility and to be the best place to

work".

Awards of MCB

MCB has become the only bank to receive the Euromoney award

for the fourth time in the last five years for being the Best Bank in

Pakistan.

Best Bank award 2008





MCB also won the

Best Domestic Bank in Pakistan awards 2000

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In addition, MCB also has the distinction of winning the Asia

Money awards for being "The Best Domestic Commercial Bank in

Pakistan".

Best Domestic Commercial Bank award 2005

Best Domestic Commercial Bank award 2004

Mission:

To become the preferred provider of quality financial services in thecountry with profitability and responsibility and to be the best place to

work.

Mission Statement:

We are a team of committed professionals, providing innovative and

efficient financial solutions to create and nurture long-term

relationships with our customers. In doing so, we ensure that our

shareholders can invest with confidence in us.

Vision Statement:

To be the leading financial services provider, partnering with our

customers for a more prosperous and secure future.

GENERAL PROFILE

PRINCIPLES OF PERFORMANE

Customer Focus:

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our co-workers and bringing out peak performances by working towards

common goals and objectives in today's dynamic banking environment.

Good Corporate Citizenship:

MCB seeks to continuously improve the quality of life in our

communities. The bank realizes that it has a responsibility to the

society in which it operates and it seeks ways of playing a positive role

for the betterment of the community at large for a progressive

environment, better living and a brighter future.

PRODUCTS AND SERVIES

Commercial Banking

Deposit Accounts:

Basic Banking Account:

A simple account to produce the habit of saving for beginners like

students. The account can be opened with only Rs. 1000, no minimum

balance required, no any monthly or annual charges applicable on this

account, two deposits and two withdrawals can be made in a month.

Also you can avail the facility of MCB ATM card and MCB smart card.

Pak Rupee Current Account:

MCBs Pak Rupee Current Account offers you the convenience of

unlimited withdrawals i.e. access to your funds whenever you want

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without any notice. There is no limit on the number of transactions you

make in a day plus you can avail finance facility up to 75% of the total

deposit.In addition, you have access to a countrywide ATM network convenient

cash accessibility 24 hours a day. The facility also provides you with

unlimited daily transactions with a limit on maximum withdrawal

amount through the ATM machines

Pak Rupee Savings Account:

MCBs Pak Rupee Savings Account offers you attractive returns on your

Pak Rupee investment with a minimum balance of Rs. 10,000.

In addition, you have access to a countrywide ATM network convenient

cash accessibility 24 hours a day. The facility also provides you with

unlimited daily transactions with a limit on maximum withdrawal

amount through the ATM machines. You can also use MCB Smart card

and Locker Facility at economical charges.

Pak Rupee Term Deposit:

MCB Pak Rupee Term Deposit gives a higher rate of return. It gives you

choice of 1 month, 3 months, 6 months, 1 year, 2 years, 3 years, 4

years and 5 year term deposits.

Saving 365 The MCB Saving 365 calculates profits on a daily product

basis and gives you the facility of unlimited withdrawals.

Foreign Currency Savings Account:

MCBs Foreign Currency Savings Account offers you attractive returns

on your Foreign Currency investment. You can invest in any of the four

currencies i.e. US Dollar, UK Pound Sterling, Japanor Euro Your foreign

currency account is exempted from Zakat and withholding tax.

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Foreign Currency Current Account:

MCBs Foreign Currency Current Account offers you the convenience of

unlimited withdrawals i.e. access to your funds whenever you wantwithout any notice. There is no limit on the number of transactions you

make in a day.

MCB Foreign Currency Term Deposit:

MCB Foreign Currency Term Deposit gives a higher rate of return. It

gives the choice of 1 month, 3 months, 6 months, 1 year, 2 years, 3

years, 4 years and 5 year term deposits.

Smart Dollar Account:

The Dollar Khushali Account, a Dollar based account was introduced in

1993 at selected MCB Bank branches. Today, you can open a Smart

Dollar Account at over 200 branches in Pakistan with a minimum

amount of USD 10,000.

Business Account

With MCB Business Account you can avail higher number of free

transactions with higher balance. The account can be opened with Rs.

50,000. You can make free Deposits and Withdrawals from all nation-

wide branches.

Loan Products:

MCB Business Sarmaya:

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MCB Business Sarmaya is the best Running Finance facility against

your residential property which empowers you to manage your business

dealings better. So act today and get MCB Business Sarmaya and thusimprove your business, avail lucrative opportunities and expand your

business, with absolute satisfaction of cash flows.

MCB Car4u:

Life is like a chess board. You plan your career options. You analyze

your business moves. But when you really want to improve your life,

you make a power move. MCB CAR4U Auto Finance is the power move

that assists you in more ways than you ever imagined. It is affordable,

with lowest mark up 16%, flexible conditions, easy processing and

above all, no hidden costs.

MCB Pyara Ghar:

Some destinations require a long wait. Like waiting for a home of your

own. But with MCB Pyara Ghar it is now easy to step into your home

and start living a real life.

MCB Pyara Ghar is an ideal Home Finance from your own bank that lets

you Purchase, Renovate or Construct your home the way you have

always wanted. Having your own home was never so easy.

Easy Personal Loan:

MCB Easy Personal Loan provides you with the financial advantage to

do things you've always wanted to but never had the sufficient funds

for. Take that much-needed holiday. Buy a car. Refurnish your house.

Purchase a new TV. Finance a better education for your children.

MCB Master Card:

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Since the beginning of time, people have tried to find more convenient

ways to pay, from gold to paper money and checks. Today, money is

moving away from distinct hard currencies and towards universalpayment products that transcend national borders, time zones, and,

with the Internet, even physical space. Plastic or "virtual" money, credit,

debit, and electronic cash products, inevitably will replace cash and

checks as the money of the future.

MCB Rupee Traveler's Checks:

MCB Rupee Traveler's Checks were first introduced in 1993 as safe cash

for traveling and travel related purposes. The product has been

extremely popular and is preferred over cash by customers while

traveling and in all walks of life.

MCB Rupee Traveler's Checks- The safest way to carry Cash.

Corporate Banking:

Cash Management Services:

MCBs network of over 1700 branches in Pakistan enables it to collect

and disburse payments efficiently with its cash management services.

This also enables it to offer you a choice of paper based or electronic

fund transfer solutions including collection amounts, cross branch on-

line transactions etc.

Working Capital Loans:

Based on the customers specific needs, the Corporate Bank offers a

number of different working capital financing facilities including

Running Finance, Cash Finance, Export Refinance, Pre-shipment and

Post- shipment etc. Tailor- made solutions are developed keeping in

view the unique requirements of your business.

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Term Loans:

MCB offers Short to Medium Term Finance to meet capital expenditureand short term working capital requirements of our customers. The

loans are structured on the basis of underlying project characteristics

and cash flows of the business.

Trade Finance Services:

Under Corporate Banking MCB offers trade finance services that include

an entire range of import and export activities including issuing Letters

of Credit (L/Cs), purchasing export documents, providing guarantees

and other support services.

Online Services:

MCB ATM Services

With a solid foundation of over 50 years in Pakistan, with more than 750

automated branches, 269 online branches, over 222 MCB ATMs in 41

cities nationwide and a network of over 12 banks on the MNET ATM

switch, MCB is positioned at the forefront of the banking industry in

Pakistan. This success has been possible because of a never-ending

drive to achieve higher levels of excellence, constantly striving to raise

the level of performance.

MCB Mobile Banking:

At the forefront of technological excellence, MCB proudly introduces

MCB MOBILE BANKING. The convenience of accessing your account

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balance information and mini statements whenever you want or

wherever you may need them, with comfort and peace of mind.

MCB Call Center:

Keeping up with banking services can be tedious but not with MCB

Bank, where phone service is at your fingertips. Just dial our Call Centre

from the comfort of your home or office or wherever you happen to be.

It offers basic banking services for your convenience, eliminating the

need for you to make unwanted trips to your branch.

MCB Smart Card:

MCB now brings you MCB SmartCard -a secure and convenient

instrument of payment with unmatched functionalities. It provides 24-

hour direct access to your bank account.

The convenience and flexibility of MCB SmartCard will help you live a

smarter life. It not only helps you manage your expenses, but also

eliminates undue interest on your day to day credit card transactions.

Your balance is always within your reach and you spend accordingly.

MCB Debit Card:

Now MCB brings a secure, convenient and quick payment facility that

enables you to do purchasing by using your existing MCB ATM / MCB

Smart Card as a DEBIT CARD.

Virtual Banking:

MCB Virtual Internet Banking offers you the convenience to manage and

control your banking and finances when you want to, where you want

to. MCBs Virtual Internet

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Banking facility is simple and secure. And it is free of cost. With MCB

Virtual Internet Banking you can access any of the banking services, 24

hours a day, 7 days a week and throughout the year.MCB Virtual Internet Banking offers a wide range of online services

which makes your banking accessible anytime and from anywhere.

Detailed Account Summary of all listed accounts.

Mini-statements of each of the listed accounts showing recent

transaction history for that account(s).

Statement-by-Period of each of the listed accounts, based on the

period specified. Immediate or Scheduled Transfer of Funds between your own

accounts, as well as to third-party accounts setup as

beneficiaries, maintaining accounts with MCB.

Scheduling of One-Time as well as Recurring Funds Transfers.

Payment of utility bills for registered Utility Companies.

Immediate or Scheduled Bills Payment. Scheduling of One-Time

as well as Recurring bill payments. Option for Full or Partialpayment based on the payment conditions specified by a

particular Utility Company.

Bulk Salary Transfer for Corporate Customers, to facilitate them in

paying salary to the corporate employees, who maintain accounts

with MCB.

Bulk Funds Transfer for Corporate Customers.

Check Book Request for any of your listed accounts.

Payment/Transfer Alerts for reminding, in advance, prior to the

processing of specified payments and transfers.

Personal Alerts for reminding of pre-specified events and

occasions.

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Islamic Banking:

Deposit Schemes :

For customers who are looking for a deposit opportunity where they can

purse their funds and reap halal returns on it, we offer the following

products:

Al-Makhraj Saving Account

Al-Makhraj Ianat Account

Al-Makhraj Term Deposit

Fund Based Facilities

Ijarah Products

MCBs Islamic Ijarah, analogous to the English term 'leasing, is based

on the Ijarah wa Iqtina concept which means the sale of the asset to

the lessee after the Ijarah has matured. Under this scheme, MCB will be

the owner of the asset, and the customer (lessee) will be given the

asset to use for a certain period of time in return for monthly rental

payments. MCB will give a separate unilateral undertaking that it will

offer to sell the asset to the customer (lessee) at the maturity of the

Ijarah agreement at a price that may be equal to the security deposit

amount, hence the term Wa Iqtina.

Types of Ijarah:

1. Car Ijarah

2. Equipment Ijarah

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Organizational Hierarchy

President

Senior executive vice president

Executive vice president

Senior Vice president

Vice president

Assistant Vice President

Grade 1

Grade 11

Grade 111

Assistant

Clerical Staff Non-Clerical Staff 1) Cashier 1) Messenger

2) Technical Staff 2) Dispatch Rider

The Organizational chart within deptt. & in different offices.

Head Office Regional Office Zonal Office Branch

Divisional head Regional Head Zonal Head Branch Manager(SEVP) (EVP) (VP) (VP, AVP)

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ORGANIZATIONAL STRUCTURE

Board of Directors:Mian Mohammad

ManshaChairman

Mr. S. M. Muneer Vice Chairman

Mr. Tariq Rafi Member

Mr. Shahzad Saleem Member

Mr. Sarmad Amin Member

Dr. Muhammad Yaqub Member

Mian Raza Mansha Member

Dato' Mohammed

HusseinMember

Mr. Aftab Ahmad Khan Member

Mr. Abdul Farid Bin

AliasMember

Mian Umer Mansha Member

Mr. Muhammad Ali Zeb Member

Mr. Atif Bajwa President / CEO

Audit Committee

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Mr. Tariq Rafi Chairman


Dato' Mohammed

HusseinMember

Mr. Aftab Ahmad Khan Member

Mr. Muhammad Ali Zeb Member

Mr. Malik Abdul

WaheedMember

Human Resources Committee

Mian Mohammad

ManshaChairman



Mr. Shahzad Saleemn Member

Mr. Atif Bajwa Member

Risk Management & Portfolio ReviewCommitteeMr. Shahzad Saleem ChairmanMr. Tariq Rafi MemberMr. Sarmad Amin Member

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Mian Umer Mansha Member

Committee on Physical Planning, IT System &

Contingency ArrangementsMr. Sarmad Amin ChairmanMr. S. M. Muneer MemberMr. Tariq Rafi Member

Mian Raza Mansha MemberMr. Abdul Farid Bin

AliasMember

Mr. Atif Bajwa Member

Business Strategy & Development

CommitteeMian Mohammad

ManshaChairman

Mr. S. M. Muneer MemberMr. Shahzad Saleem MemberMian Raza Mansha MemberDr. Muhammad Yaqub Member

Dato' Mohammad

HusseinMember

Mian Umer Mansha MemberMr. Atif Bajwa Member

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Chief Financial Officer

Mr.Salman Zafar Siddiqi

ENTITY RATING

MCB has the following Entity Ratings from the Pakistan Credit Rating

Agency Limited (PACRA):

Short Term A1+

Long Term AA

Definitions by PACRA:

A1+ (A one plus)

These ratings are applicable to senior unsecured creditors (depositors)

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

within major rating categories.

AA (Double A)

These ratings denote a very low expectation of credit risk emanating

from a very strong capacity for timely payment of financial

commitments.

4. MCBs Competitive Strategies

To be competitive the Bank has further reinforced its position in theConsumer Banking arena by streamlining and re-launching the

consumer financing products and introducing more convenience based

solutions. With the re-launch of auto finance and house finance

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products, the Bank pushed the products with full thrust. The Bank has

also launched a running finance facility against mortgage of property.

Technology continued to play an important role in improving andexpanding product offerings.

The Bank introduced more IT based products to cater to the changing

lifestyles and needs of the customers.

MCB Virtual-Internet Banking was launched with wide ranging banking

solutions for the customers ranging from individual to corporate

customers and it has become the most preferred Internet banking

solution in the country.

MCB also had the privilege of being the first Bank in Pakistan to launch

the comprehensive bill payment facility through its alternate delivery

channels which include Internet Banking, ATMs and MCB Call Centre,

currently with six payment partners. Similarly, the Bank also took

initiatives to increase the usage of debit facility. To provide timely and

updated information, MCB has also provided a new look to its website

which is user friendly and considerably easy to browse.

The Islamic Banking initiative has been very successful in attracting

new customer, both individuals and companies. Similarly, those

relationships, which were confined only to current account facility, have

grown into stronger business relationships. The branch network was

expanded to Lahore and Multan during the last year and recently been

extended to Hyderabad and Faisalabad. The Bank plans to further

expand its Islamic Banking branch network to other metropolitan areas

and also to introduce new sharia compliant banking solutions to a wider

range of customers for satisfying their individual and business needs.

Some wide-ranging new strategic initiatives were also taken up which

will be important for the Bank in years to come. A private company has

been formed in Hong Kong (fully owned subsidiary of MCB) in

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partnership with Standard Chartered Bank, handling trade transactions

of select countries in the Asia-Pacific region. It is projected to earn US$

1 million in its first year of operations. To increase its internationalpresence, the Bank will be opening its representative office in Dubai

and entering into major strategic alliances with banks in the UAE/

especially for marketing our consumer banking products to non-resident

Pakistanis.

Furthermore, feasibility is also being carried out for entering other

international markets.

MCB's operations continued to be streamlined with focus on

rationalization of expenses, re-alignment of back-end processing to

increase productivity, enhancement of customer service standards,

process efficiency and controls. The Bank has taken the lead in

introducing the innovative concept of centralizing Trade Services in the

country by providing centralized foreign trade services to branches with

a view to improve efficiency, expertise and reduce delivery cost.

Management of Human Resources has been one of our core focus

areas. MCB is committed towards attracting, retaining and motivating

outstanding people. Challenge for MCB is to provide an environment in

which employees can better realize their potential. The Bank introduced

'reward for performance' where high potential officers were identified

and rewarded accordingly. In view of the competitive environment, the

Bank is focusing on performance and introducing a more robust

performance management system.

MCB is also strongly committed to training its staff at all levels.

The Bank will also be implementing the full suite of the latest version of

SYMBOLS Version 8. MCB Bank will run SYMBOLS E-Finance modules to

deliver personalized services to its customers over multiple delivery

channels, while SYMBOLS Enterprise Operations Center will serve as its

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core banking transaction-processing engine. By implementing

SYMBOLS, MCB Bank aims to raise the level of its customer service and

its time to market in new product offerings for its three core bankingbusinesses in Corporate, Commercial and Consumer Banking - retaining

its market leadership as Pakistan's progressive Bank.

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The following activities have been done during the time period of

internship. The activities given below are on the weekly basis. Mainly

during the internship I worked in all the departments and learned the

working and procedures that are necessary for the processes.

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

Observed basic business process

Observed movement of customers and Employees inside the

Branch

Learned basics of Account Opening

Opened Accounts of GOVT employed persons

Opened PLS saving Accounts

Opened BBA accounts

Opened Student account

Worked as CSO(Customer Service Officer) because CSO was on

leave and performed the following activities:

o Attended phone calls

o Attended customer inquiries

o Received ATM forms

o Received and entered daily DAK

o Filled cheaque book requisition slips

In first week I observed the basic business process. At the end of each

day I totaled the electricity, water, telephone and check amounts.

Mostly the total was correct. But sometimes when the total does not

match with the sheet of the PRINTING I had to do it two or even three

times.

Process:

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Account opening is the basic procedure to create a relationship

between a customer and a banker. When a customer opens his/her

account it increases the business of the bank. The following steps aretaken while a new customer enters in a bank for opening his/her

account. These steps are;

When a customer wants to open an account the authorized officer

gives him/her an account opening form. This form is known as

RELATIONSHIP CONTRACT FORM.This form is filled out with the

hands of the customers.

All the required fields that are mandatory for account opening shouldbe filled compulsory. These are the fields like title name of the

customer, occupation, address of the customer, phone nos,

correspondence address, e-mail address, etc.

(a) requirements for opening an account for the

individual;

In case of employed person

Copy of CNIC

Salary slip

A letter from employer

Initial deposit of Rs.100 to 1000.

Photo copy of utility bill

In case of non employed person

Copy of CNIC

A letter from Dist. Nazam

Initial deposit of Rs.100 to 1000.

Photo copy of utility bill.

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(b) requirements for opening an account for the

partnership;

Copy of CNIC

Copy of CNIC of all the partners

Request letter of account opening

Company letter head

Copy of registered certificate (if registered)

Signature specimen duly attested

Initial deposit may be from Rs.100 to 1000

In both cases there is some amount which is fixed for opening current

and saving account that is;

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

For saving account Rs.5000 is the limit.

After all these requirements, the authorized officer attaches two

signature specimen forms called SSC and one requisition form. On

which the authorized officer put his/her signature and pasted

signature admitted and verified and bank stamp on it.

Along with this form the copy of CNIC and a Verisys form and form

known as (KYC) is attached with it.

At the last a separate file is maintained for each of the customer for

banks record.

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

In the second week of my internship I learned about Cheaque book,

Debit card and Alico products. Some details are as follows:

Learned About the Requisition request of Check for new Account

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Learned about the issuance of new cheaque book.

Filled the ATM request forms

Learned how to issue the ATM cards

Learned how to issue the ATM Pins

Got basic information about Bank Assurance offered by Alico

Learned about various offers of Alico

Learned about the installments of assurance account

Learned about the Terms and conditions of Alico.

(A) Process of getting the new Check Book.

After opening an account, a letter of thanks is sent

to the customers from the Circle Office after 2 or 3

days. After receiving that letter a customer can obtain

his/her check book from the bank. But while customer is coming to the

bank for receiving his/her check book this letter of thanks should be

with him.

These are the following steps that are used for gaining check book:

The customer brings the letter of thanks and give to the

authorized person. The person fills the check book requisition slip for

the customer and takes his signatures. Then the authorized person

saves that slip in his record and fills another slip and fwd to Karachi

via NIFT and customer is asked to come after 5 days.

After 5 days cheaque book is given to customer after taking his

signature in a separate register But in case if ;

(a) Customer is new than after taking letter of thanks check

books would be hand over to him/her.

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(b) But in other case if customer is not new he is a regular

customer than at the end of each check book a requisition slip

is attached. So whenever a new check book would be neededthe customer will put his/her signature on it and submit it to

the authorized officer.

(B) Process of getting an ATM/DEBIT card

The following steps are taken while issuing an ATM/DEBIT card. When

an ATM or Debit Cards issue, the following steps are needed:

A copy of CNIC

A minimum Rs.550 should be in respective account.

After filling up all the required documents for ATM card these

documents are given to the authorized person who pasted a verification

stamp on these documents and signing on it. And at the end, after 5

days the person is called again to hand over ATM card after taking his

Signatures.

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

When the customer is given ATM card he goes to another Person to get

his/her secrete Pin code. The person take the signatures and give it to

customer. Then Customer goes to CSO and activates his CARD.

Alico Products:

Alico offers various products for persons belonging to different age

groups. The purpose is to provide the insurance side by side with

savings. Some of them are given below:

Income Max

Current Life Account

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Capital Sure

Flexi Life

Har Pal Mehfooz

Life Partner

Dream Weddindg

Retire Easy

Edu Care

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

The main objective is to know about the different functions of cash

department. Cash handling etc.. Although internees were not allowed in

cash department because of sensitivity of matter, they provide me

maximum possible knowledge, and I spent few time in cash.

Learned basic things about Cash department

Learned how to write Cash book

Signature verification

Cash Deposit slips Processing

Intercity Cheaque Processing

Arranged an event to give Customers awareness about Alico

Made a list of Valued customers

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Made invitation letters for customers

Arranged necessary items for the Event

Filled Cash deposit slips

Filled some cheaques for aged persons

Filled cash deposit slips for online Deposit

Process:

In Cash department customer after filling up the checks, bonds etc

give it to the authorized office. The following information are required

for further preceding of the check;

Name of the customer

Exact amount in words and figures

Code of currency

Date of the check

and signature of the Customer

After providing all the above mandatory places check is hand over to

the relevant person.

The authorized person after receiving Checks or bonds puts bank

stamp on it

Checks the balance of the customer account.

Verify the signatures of customer

Then gives the cash to the customer.

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

check:

a. The check should be enchased on that date which has to be

written on the check

b. No cutting/overwriting is allowed

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c. Signature should be matched with the ID card signature

d. On the back of the check there should be the sign of the

issuerI learned that how to accomplish different tasks like deposit, credit

cards slips, and as well as bonds. I also learned that how original

Checks are identified.

Some important things that must keep in mind while filling

deposit slips:

a. No cutting/overwriting is allowed in amount

b. Amount should be same in words and figures

c. For online deposit a copy of CNIC of depositor is necessary

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

Fourth week I spent in Remittance Department and learned following

things:

Learned basic operations of remittance department (PO, DD)

Learned how to make entries and vouchers of incoming TT

Made vouchers and entries for Incoming TT

Learned the difference between DD and PO

Observed other operations e.g. PO (Pay Order), DD (Demand

Draft)

Learned bank charges for PO, DD, TT & MT (Mail Transfer)

Learned how to make entries and vouchers for Outgoing

TT(Telegraphic Transfer)

Made few Outgoing TT

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Learned & Made Inter-Branch Credit Advices against the checks

received from outer city branches

Learned how to make entries and vouchers for Outgoing

TT(Telegraphic Transfer)

With these activities, also observed the other activities. The remittance

officer also has to pass the entry that is entered by the cashier. The

cashier enters the amount of check and the check number. Then the

remittance officer enters the password and passes the entry. If the

remittance officer is present on the seat then the operation managerhas the authority to pass the entry. It is actually based on the amount

of the transaction. When the amount of check exceeds a specific

amount of Rs. 200000 the remittance officer has to pass that. And when

the amount increases to Rs. 500000 the operation manager has to pass

that entry. To open the customers account and to keep information of

each of the customer separately so that when information is needed

can be obtained easily.

Learned basic operations of remittance department. Remittance

department deals with the foreign remittances. First of all the

remittances are received in the post. Normally two types of remittances

come. One is credited to the accounts in our branch and the other is to

be given in cash to the holder of the XPIN. One advice is normally made

for all the advices that are to be credited to the accounts.

Then the relevant advices are made. In the advices, originating branch

is Dharampura Branch. PNSC Branch is written in the responding

branch. The code for the originating branch is 0992 and for the

responding branch code is 0069. Current date is written in the date

field. The amount is written in the relevant fields in figures and in

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words. In the favoring, we write the name, account numbers, DD

numbers and the amount in front of every beneficiary. Three copies are

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

computer.

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

Learned how to Issue the CDR

Made vouchers and entries for CDR

Made few CDR

Learned how to manage CDR register

Learned payment against CDR

Balanced the CDR Head of GL for 31 July, 2009.

Learned how to issue a PO

Made Debit vouchers against the PO & DD charges

Made Credit vouchers (contra) against the PO & DD charges

Learned how to make DD and PO

Made outgoing Clearing

Made local clearing

Made intercity clearing

Made return clearing

The Fifth week is from 3rd July, 2009 to 8th July, 2009. The main objective

of this is to know about the demand draft (DD), pay order (PO), andcash deposit receipt (CDR). To know about these entire why all these

documents are used. And how much charges have to be paid for

making all these.

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

(PO):

Out of the city DD is used, DD is made through Check and Cash. Rs.50is charged on cash slip and in case of check slip Rs.220 is charged. PO

ismade within a city. It is also in the form of Cash and Check. Rs.50 is

charged on cash and Rs.220 is charged on check slip.

If a regular customer wants to make DD or PO then in this case

he/she has to fill up a form. This form is known as FUNDS

TRANSFER FROM; on making this DD/PO Rs.50 is charged for

making this in case of account holder but for non account holderRs.220 is charged.

In the form all the mandatory places are compulsory to fulfill.

Like, currency of instrument, type of remittance, beneficiary

details, particular of applicant, applicant signature etc. these are

such requirements that must be fill up.

And at the last the authorized officer puts his/her signature on

DD/PO form and three stamps are pasted on it;

a. Transfer stamp

b. Signature verified stamp

c. Crossing check stamp ( in case if half payment is made

through cash form, then a check is fill up for this and

attached with the DD/PO form)

And at the last the operational manager puts supervision on this and

all the records are transferred into computer for bank records.

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

CDR is used locally. It is also in from of Cash AND Check. CDR has

no charges.

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A request form is filled by the hands of the customer for making

CDR. This form is known as CREDIT DEPOSIT FORM.

In this form some requirements are compulsory which has to be

full up these are check no, the person name to whom it is going to

be transferred, signature specimen, date etc.

After all these the verification stamp, check transfer stamp, and

signature verified stamp is pasted on it.

And at the final stage, all the transactions are recorded in a

register for keeping banks records.

I learned that how DDs, CDRs and POs are made. And how

many charges are applied on it.

In this week I was a bit for remittances that are to be paid in cash, one

advice is made for each of the remittance. The person comes in the

bank with the XPIN. He gives it to us. With XPIN he gives the photocopy

of the CNIC. One advice is made for him. Three copies are prepared for

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

Procedure for outgoing clearing

I also madeout going clearing, for outgoing clearing a list I made an

excel sheet of all bills having depositing account number, amount and

cheaque number then separated bills from slips then posted various

stemps on bills and slips as follows

Clearing stamp of next date on front of bill

Accounts credited stamp on back of bill

Clearing stamp on front of deposit slip

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Procedure for intercity Clearing

I also made intercity clearing. For Intercity Clearing a stamp of intercity

posted on face of bill, then amount, acct number and city name isentered in a separate register and deposit slip is attached in a specific

file. And a stamp is posted on back of bill. A separate slip is filled for

every city given by NIFT. In the specified envelope is used for every city

given by NIFT with printed name of city.

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

(FINANCE,PUBIC DEALING, TDR) Learned about dormant account.

Learned about the activation of dormant account

Learned about TDR

Learned how to make TDR

Learned basic types of financing

Studied a Running Finance Case

Learned about instant finance

Learned about the different documents required for Credit

Investigation

Studied Financial statements of a client company

Learned about the documents required for Running Finance

Learned the Concepts of Demand and Cash Finance

To become familiar that how a customer account change into dormant

account.

Process:

An account is closed when a customer does not make any transaction

in his/her account till 90 days.

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A letter is send to customer to inform him/her, and in case if bank

does not receive any response from customers side then the account of

customer becomes DORMANT, after that a customer cannot make

any DR or Cr transaction in his/her account.

But in case if a customer draws a check in dormant account then it is

returned back from the clearing department with a stamp ofdormant

account.

After that customer cannot make any type of transaction in his/her

account.

Procedure for activation of a dormant account:

a. The customer has to given a written request for activation

of the account.

b. Copy of CNIC.

c. And a Debit transaction on the same day is made.

After working in this area I learned that what things are compulsory to

running an account and how we can avoid the dormant account.

TDR (Term deposit receipt):

Procedure:

TDR may be issued for 2 months or 3 months but calculation is made on

daily basis.

A term deposit receipt has to be filled for TDR on which the following

mandatory places have to be fulfilled:

Received form

Amount

Deposit period

Amount in figures

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And account number

After the whole information is recorded into the computer system.

And prepare TDR is given to the customer.

Seventh Week:

Made GL(general Ledger) analysis

Analyze different heads of Assets, Liabilities, Income, and

Expenses.

Made Annual Expanses increase Analysis

Filled Credit Proposal cum Sanction Advice MCB Instant

Financing, BBFS (Borrower Basic Fact Sheet) and Application for

Finance for renewal of 3 cases of CF.

Studied credit proposals.

Studied Credit Scoring and Risk Rating for the clients

Studied classification of customers in the categories

Substandard

Doubtful

Loss

In the last week of my Internship Manager offered me to learn

something of managerial level which I accepted happily. So manager

gave me data and asked to analyze the difference of expenses of July

2008 and July 2009 because there was a major increase in Expanse

account. So I analyze different sub account and separate 6 accounts

showing major increase, I also separated 6 accounts which were

showing major decrease.

Online transactions and Lockers

Objective:

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The objective is to learn about the money grams how they make? And

to know about the lockers and as well as to get knowledge that how

online transactions are done.

(a)ONLINE TRANSACTIONS

Procedure:

In on line transaction the process is so simple in this the client receives

a request form from the customer for online transactions. In such case

customer presence is not compulsory. In this the following requirements

are necessary to keep in mind. These are:

Sender name,

Customer account number,

Bank and branch name,

Check no,

Beneficiary branch no,

Total deposit and date.

An online check is received form customer along with the print out of avoucher is attached with the check. And three stamps are pasted on it,

these are;

Clearing Stamp

Intercity stamp

Transfer Stamp

And then in the last entry of an online check is recorded in

the register for maintaining bank records.

(b) LOCKERS

Procedure:

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whenever a new customer wants to operate locker he/she signs on a

SSC card. And aseparate register is maintained for thispurpose.

and after that whenever customer wants to operate the locker thanthe authorized person takes the customer signature on the maintained

register. And these signatures are matched with the SSC card

signatures.

only relevant customer is allowed to operate.

Learning:

After working in this area I learned what money gram is and why it is

used for? And as well as I also learned about the online transactions and

the procedure used for lockers.

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Summary and recommendations

Overall summary

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

bank is quite satisfactory. MCB's total assets, investments, deposits and

equity has increased but profitability has decreased by a soaring

percentage of 58.23%. The reasons which I have traced out of my

analysis and studies are as follows;

Increased financial costs of funds for which expected investment

revenues did not open up.

Return on lending has been reduces

Bank has increased its classified advances by 35% to fulfill the

requirements of Prudential Regulations. The fresh increase is

mainly 51% in the other assets especially mentioned

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classification. According to the prudential regulations

requirements, accrued markup cannot be credited to income but

to suspense A/C.

During the year 2008, the economy of the country remained in

sluggish. In spite of various policy measure initiated by the

government for confidence building of the domestic and foreign

investors and steps taken such as:

o Creation of small and medium entries development

authority (SMEDA).

o

Financing under prime minister's self employment scheme.o Launching of Mera Ghar scheme etc.

o For revival of economy, the expected investment

environment could not be created and economy did not pick

up.

The large number of non-commercial banking institutions (DFI's

and NBFI's) also competed for limited resources and investment

avenues- thus further narrowing the spread of banking industry. Although, economic sanctions imposed as a result of nuclear blast

and the country's level of foreign debt and directly impending

economic growth, but the debt rescheduling at the Paris Club and

large financial commitments by the multilateral agencies will

improve country's external position and provide a sound footing

for medium term planning. In this improved and stable economic

environment, the bank will get opportunities and by making

sincere efforts can increase its profitability and equity.

Previous year is expected to pose a tough market environment.

Shortage of rains and electricity can seriously impact overall GDP

growth. The tight monetary policy is impacting the country's exports

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with a ripple effect on the manufacturing sector. The documentation

drive, which is good for the country over a long period of time, is being

expectantly viewed with concern by certain segments. The combinedimpact of these factors may cause a slowdown of economic activity in

certain pockets of the economy.

On the positive side, the resolution of issues in political and pragmatic

handling of the documentation deive by the government and

continuous efforts to normalize international relations should bring

positive results.

MCB is and will positioned and flexible enough to operate effectively in

the changing scenario. We will continue to broaden our customer base,

harnessing the growing strength of the MCB brand and expand the

platform to provide value based propositions to our customers.

Specific requirements for the organization

1. Banking today has entered into a new era of computer

technology. With introduction to intern on line banking, the

distance between branches has reduced in such a way that a

customer maintains his account thousands of kilometers away.

Branches avail full facilities from other branches. This facility is

very common in foreign banks. My suggestion is that like many

other sectors of banking MCB should also take a lead in this

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sector.

2. As discussed above, this is an age of computer technology and

the banks having skilled working (in computer technology) willcertainly be able to attain a faster growth rate. My suggestion is

that MCB should stress upon its employees to learn computer

technology and following incentives should be given to them for

this purpose.

3. Special training programs at staff colleges or computer training

institutions should be arranged.

4. Interest free loans to employees for purchase of personal

computer may be extended.

5. Special allowances for computer training will also help in

achieving desired goals.

6. It is a fact which cannot be denied at any stage that both ladies

and gentlemen are facing great problems which they deposit

utility bills no proper counter is available. People have to stand

outside the bank peeping in the window. The collector sitting

inside the bank does not care anything and doing the job at his

will/desire. This must be improved providing adequate facilities to

customers.

7. Loan advances to bank employees are free from interest that is

why huge amount is taken as loan. This is not good as they are

availing other benefits from bank like bounces etc. Restriction

must be imposed up to specific limit.

8. After privatization is seen that attitude and mal-treatment of staff

towards people has considerably changed ethic has promoted the

business a lot, further improvements also depends upon more

good behavior.

9. Now a days a large number of books / documents / registers are

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being prepared on computerized system. It saves time. All other

books may be computerized if possible to avoid error and

mistakes.10. New recruitment should be made on merit basis so that

efficient, honest, hardworking, reliable and dependable persons

may be at hand to run the bank easily on sound profit.

11. Bank should make a plan to gear up its recovery efforts on

war footings and re-organize the recovery function on global

basis.

12. Bank should tighten up a control on expenditure.

At the end I wish for a rapid and successful growth and prosperity

of MCB bank limited which is already known as a progressive

bank.

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Specific recommendations for IBIT to improve its

curricula and methods of teaching to MBIT

students

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

always found cooperative, helpful, and kind the know which I gained

from them is treasure for my whole life belongingness and affiliation

with teachers and the department that is why when I rewind the last

two and a half year. I was unable to find out any weakness in any of

them.

Following recommendations are only places for the improvement and

betterment. These are only the step which I think should be taken to

achievement.

Degree of business education need recognition there should be

effective advertising for awareness of people.

Faculty of MBIT department is not sufficient to satisfy the

educational need of students. Department lack experienced,

skilled and professional permanent faculty so new teachers

should be appointed.

Case study should be major part of the studies because it creates

more confidence in the students. So they could be able to adjust

in multicultural organization.

It courses teachers only instruct it thorough books or slides while

practive in terms of concrete work in labs is lacking. That is whythe students of IBIT remain always confused what he knows in it

in real sense. The market demands us much in the field which we

normally failed to provide them.

Favoritism of teachers towards some specific students not only

give that student credit through unfair means but also upset and

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dampen the spirits of others. The students who spend more and

more time in the office of teachers get good grades more easily.

So there should be proper check and balanced on this issue. At the end MBIT burden should be reduced. Stress should be

given on practical and field work instead of bookish knowledge.

The specialization must also be offered in more areas like HRM.

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Specific recommendations for institute for the next

internship in this organization

Department should provide proper guide line to the students during

learning about their practical application in the field of business

so that students becomes familiar with business environment.

Our department must have developed close relations with reputed

organizations adequate help for management of internship can

provided to the students.

The department should try to promote IBIT as a prestigious institute

for clearing and pay attention toward its promotion and

advertisement in business sector.

The department should maintain a record of all its old students working

in various fields and present them as a source of motivation inspiration

for the present students in the department.

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

internee should adopt himself / herself to know situation. He / she

should be able to get firsthand knowledge.

2. Have the quality of confidence.

3. Have a good communication.

4. Should be able to judge the situation.

5. Should have effort to doing best.

6. Have flexibility in opinion making.

7. It is golden rule for relaxation, satisfaction and success.

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MCB bank limited is an attractive and suitable corporation for the

internees as it provides excellent learning opportunities to the students.Its culture is so inspiring and working structure is so impressing that it

motivates to work. All staff members are very cooperative and helpful

in providing guidance during internship. It is good place of learning for

future job.

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REFERENCES

www.mcb.com.pk

www.google.com

MCB Brochures

Manuals

Documents

21439291 Internship Report on MCB