Internship Report of MCB

Bank for Life Internship report

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11014220-028 Department Of Management Sciences (MBA 3.5)

“internship report submitted to the faculty of management and administrative

Sciences in partial fulfillment of the requirements for the degree of

Master of business administration”

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11014220-028

MBA(4TH) 3.5year

Session : Fall 2012


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ACKNOWLEDGEMENT

First of all I am very thankful to the almighty ALLAH. I am also thankful to my parents.

Who pray for my success in my life . I am also thankful to all my faculty of administrative

and management science .the university of gujrat who provide me this opportunity to have

an experience in a reputed organization and groom myself for the future professional

responsibilities. I am also very thankful to the respected teacher of this course they full

cooperate with me. And one thing which is really appreciable is that they reply to my every

question and solve my every problem in education field.

I am also really thanks to the MCB Allahabad wazirabad Branch (1471) staff members

Mr.sheikh umar sb (Branch manager)

Miss.Nadia Afzal (Operation manager)

Mr.waqaar sb ( Clearing officer )

Mr.Hassan Ali ( cash officer )

Miss.samreen Rehmat (C.S.O)


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Executive summary

As a scheduled commercial bank MCB plays a vital role in the national economy through

mobilization of hitherto untapped local resources, promoting saving and providing funds for

investments.

The bank offers attractive rates of profit on all deposit, opening of foreign currency account

and handling of foreign exchange business for example import, export and remittances

,financing, trade and industry for working capital requirement and money market operations

.Due to that factor MCB has got the fame in as established in 1947 and was given the status

of scheduled bank.it has 1155 online branch in the major cites of Pakistan and 8 branches

for overseas operation in Srilanka, UAE,Bahrain and EPZ.

During my internship at MCB (1471) I worked in all department and I successfully

completed all the task /duties and responsibilities were assigned to me .the course of

internship I learned about various functions techniques and also learned bank‟s

correspondence with their customers and

Whitin branches .I also learned about documentation requirement and records different

activates and process .especially the documentation required for account opening .

All branches are under total sixteen circle office gujranawala circle is considered largest

circle branch wise.it has 93 branches and Allah Abad wazirabad branch(1471) is one of

them.


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DEDICATION

I dedicate this effort to my parents who provided me the

great foundation and respectable teachers who brought

my skills & abilities up. and my brother and friends who

support me in my study


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Table of contant

Sr.# Contents Page no

1 Introduction of MCB Limited 4

2 Vision 5

3 Mission 5

4 Business volume and success stories 6

5 MCB performance over view 8

6 Product and services 10

7 PESTAL analysis 15

8 Political and legal environment 15

9 Economic trend 15

10 Social environment 16

11 Technological factor 16

12 Contribution of organization toward economic development 16

13 Some important ratio over view 17

14 Organizational structure 20

15 Organization hierarchy chart 21

16 No of employees 21

17 Introduction of MCB Allahabad branch 22

18 Introduction of all department 24

19 Comments on organization structure 39

20 Internee work 41

21 Detail of supervisor 41

22 Weekly time table 43

23 Department where I performed my internship 49

24 Summary of learning 55

25 Conclusion of report 57

26 SWOT analysis 58

27 Recommendation 60

28 References 61


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5.1 Introduction of MCB Bank Limited

MCB is one of the top banks of Pakistan. Established in 1947, MCB soon earned the

reputation of a solid and unadventurous financial institution managed by emigrant

executives. In 1974, MCB was nationalized along with all other private sector banks. The

Bank has a customer base of approximately 4 million, a nationwide distribution network of

over 1150 branches and over 650 ATMs in the market. MCB has a reputation of most strong

financial institute and the leading bank in Pakistan with a deposited base of PKR 462 billion,

and total asset of PKR 605 billion approximate .the MCB bank one of the oldest and one of

the responsible banks in the Pakistan and has played very important role in representing the

country in the global plate farm and MCB is include in few institution of the Pakistan that

recognized and trade in the international market.

The bank has also been acknowledge via prestigious and awarded by Euro money, MMT,

Asia money, SAFA (SAARC), the Asset and the Asians Banker.

5.2 OVER VIEW OF THE ORAGNIZATION:

5.2.1 BRIEF HISTORY

MCB bank is the one of the leading bank of the Pakistan MCB have the experience over 60

years in Pakistan and the hard work which make it leading organization in the present

scenario of competition .MCB is not make the overnight success story but beyond the

success of the MCB is the hardworking , the full dedication and full commitment are

involved.

MCB incorporated by the Adam jee group, during in 1960s the bank grew rapidly with the

concentration on trade finance products. In 1947, MCB was nationalized along with the

private bank and then MCB privatized in 1991 during the Nawaz Leage government

financial sector deregulation policies.

During the first five years, the private management concentrated on growth utilizing its

extensive network of branches and developed a large and stable deposit base. Since

privatization, the bank has made tremendous headway in improving the operational

efficiency through human resource development and employment of technology. The bank

today boasts the target online brand and ATM network in the country.

MCB‟s main focus remains on consumer banking and its growing reputation as a full service

provider gives the bank an edge in front of increased competition in the banking sector in

Pakistan. The ATM network is the largest in Pakistan and the Pak Rupee Travelers Cheques

are market leaders.

MCB was the first to introduce the photo card with the introduction of MCB Master Card.

Corporate banking ensures assistance from a dedicated team of professional financial

advisors for underwriting, project finance or corporate advisory


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Vision Statement

“To be the leading financial services provider, partnering with our customers for a

more prosperous and secure future”

Mission Statement

“We are a team of committed professionals, providing innovative and efficient financial

solutions to create and nurture long-term relationships with our customers. In doing so, we

ensure that our shareholders can invest with confidence in us”

Values of MCB Bank

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

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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Historical Overview:

• MCB (formally Muslim commercial bank limited) Bank Limited completed his 64

years in the field of banking quite successfully. MCB was formed in 1946 in Calcutta. The

registered office of the bank transferred to Karachi in 1948. Now head office is shifted at jail

road Lahore.

5. 2.2 Nature of organization

MCB is a banking organization. MCB is one of the leading banks of Pakistan with a market

share of 12.5%. It is also the pioneer in innovative consumer banking in Pakistan. It is the

largest private bank in Pakistan. It is the most preferred provider of quality financial services

and is usually considered the best place to work. It has developed a large stable deposit base.

This bank today boasts of largest online branch and ATM network. MCB is in it‟s over 50

years of operation. It has a network of over 1155 branches all over the country with business

establishments in Sri Lanka and Bahrain.

Breakup of branches is as follows:

AREA BRANCHES

Punjab 643

Sindh 232

NWFP 163

Baluchistan 83

Azad Kashmir 19

Overseas 15

Domestic 1140

TOTAL 1155

5.2.3 Business volume and success stories of MCB

During the last five years the bank made substantial progress, recording strong growth in

revenues and earnings. The profit is increased year by year due to vast business activities

done by MCB .


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During the last five years the bank made substantial progress, recording strong growth in

revenues and earnings. The profit is increased year by year due to vast business activities

done by MCB i.e. deposits from customers, investments as well as advances to customers

and shareholders fund. Due to these funds the return is increased year by year.

As shown above mentioned deposits figer 12% customer deposits increase as mentioned in

billion 491.2 in 2011 and in 2012 this figer increase 545.1 this is all possible due to efficient

services of MCB staff .and increasing the trust of the customer.


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Taking the trust of investor is the big challenge for any country or any organization. But

MCB brilliantly work for taking the trust and attention of investor and increase the

investment ratio 16% as compared to the previous year. As figer shown lost few year trend

of investor toward MCB.

MCB increase his performance in different sector .May awarding loan, deposits ,investments

and also well perform his services in this competitive era .so that the reason profit of MCB

increase 28% in 2012 as compared to previous years.

MCB PERFORMED IN 1QCY13: Cost

cutting is what helped MCB Bank keep its bottom line growth in green for 1QCY13. The

bank posted a modest 3.7 percent year-on-year growth in profits in the first quarter of CY13

which is the highest growth amongst the big five bank- as three of the other leading banks

have recorded decline in profits during period.


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The top line story went as expected; low interest rates and no major activity in private

lending restricted mark-up income. A significant portion of deposits was parked in

government papers, which grew by nearly 23 percent year-on-year

The NII as a result dipped as the SBP raised the requirement of minimum return on fixed

deposits, squeezing the gross spread ratio from 61 percent last year to 58 percent for

1QCY13.

What really mattered was MCBs effort to cut down its operating expenses. The bank

remained the only one amongst the top five, to have recorded a dip in year-on-year operating

expenses, where all other banks saw a sizeable jump. This is perhaps the only way banks can

make up for the low interest rate scenario and their safety approach lending approach.

MCBs CASA ratio stands at a very healthy 84 percent, much higher than the peers. This is

where it can shield itself to a large extent from the SBPs revised requirement of minimum

return on average month deposits.

MCB AWARDS

2012 Euromoney: Best Bank in Pakistan

2012 The Asset Triple A : Best Domestic Bank- pakistan

2012 NFEH: CSR Business Excellence Award

2011 CFA Association Pakistan: Most Stable Bank of the Year

2011 CFA Association Pakistan: Best Bank of the Year

2011 Euro money: Best Bank in Pakistan

2011 ICAP / ICMAP: BCR Award 2010 - Banking Sector

2011 SAFA: Joint 2nd Runner-up for BCR 2010

2010 The Asian Banker: Strongest Bank in Pakistan

2010 The Asian Banker: Leadership Achievement Award

2010 MMT: Best Bank Led MMT Service

2010 ICAP / ICMAP: BCR Award 2009 - Banking Sector

2010 SAFA: Certificate of Merit Award for BCR 2009

2009 Asia money: Best Domestic Bank in Pakistan

2009 The Asset: Best Domestic Bank in Pakistan


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2008 Euro money: Best Bank in Asia












Change of Name:

The name of bank has been changed from Muslim Commercial Bank Ltd to MCB Bank Ltd.

Shifting of Head Office:

In 2008 the head office of MCB was shifted to Lahore in a newly constructed

building, namely MCB House, located at Jail Road, from Karachi.

5.2.4Products and Services

During my stay I observer that a large verity of products and services are offer by the

MCB Bank and I will explain in detail these services and product as functioning of

commercial bank.

Main Products and Services are following


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Deposit

Bank accepts deposits which are maintain by the bank in different kinds of accounts. MCB

bank offers these accounts for depositing the funds.

Current Account

MCB Bank offers a variety of current accounts to provide to the everyday transactional

needs of various customers.

Savings Account

MCB savings accounts offer attractive profit rates as well as flexibility to transact.

Terms Deposits

MCB Term Deposits offer attractive short to mid-term investment options with flexibility,

convenience and security.

Loans and Advances

Banks grant loans to the spenders so MCB bank also grants different kinds of loan to

different customers.

Consumers Loans:

MCB bank offer loans for personal use to the individuals or group of people it will be

granted on the income level of the desired individuals.

Commercial and Corporate:

MCB also offer commercial loans to the individual and industrial people it will be granted

on these three ways as under:

Hypothecation: In this case ownership and possession in names and hands of client.

Pledge: In this case ownership and possession in names and hands of bank.

Mortgage: In this case ownership in names of bank but possession in hand of client.

Running Finance:

It will be issue on small bases and personal guaranty is required for it.

Running Finance Instant:

It will be issue on pledge bases and personal guaranty is required for it.


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Cash Finance:

It will also issue on pledge base pledge and personal guaranty is also required for it.

Cash for Cash:

It will also issue on pledge bases but in this case pledge assets must be liquid and personal

guaranty is also required for it.

Demand Finance:

It will be issue on mortgage bases and personal guaranty is also required for it.

Others Products and Services

MCB 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.

MCB Smart Card

MCB Smart Card is the key that enables access to convenient banking services.

MCB Rupee Travelers Cheque

Rupee Travelers Cheque, being the market leader, is the most widely accepted way to pay

cash for travel-related purposes.

MCB ATMs

MCB has one of the nation's largest ATM networks with over 650 ATMs and still growing.

MCB Mobile ATM

MCB Mobile ATM not only provides world class banking service but also provide

convenience.

MCB SMS Banking

SMS anytime to get information regarding balance, mini statements and credit card related

information once your card is linked.


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MCB Mobile BANIKING

MCB Mobile is a quick easy and secure way to recharge mobile phones, transfer money, pay

bills and do much more to access the business at you lap at any ware.

MCB Call Center

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.

MCB Investment Services

MCB Investment Services offer distribution of mutual funds managed by the leading fund

managers of Pakistan

MCB Advisory Services

MCB also provide financial advisory services, commercial structuring support and access to

capital resources to help companies successfully finance their business/project.

MCB Lockers

Lockers of different capacities are available nationwide.

MCB Banc assurance

MCB Banc assurance has created a one-stop shop for all your financial and insurance needs.

MCB Local Rupee Drawing Arrangement

Transaction Banking Department at MCB provides Local Rupee Drawing Arrangement, a

Partnership with global transfer agents

Open accounts in Pakistan whilst being abroad & much more product for small banks and

financial institutions.

MCB Home Remittance

MCB Home Remittance provides a faultless inflow of foreign remittances credited in the

beneficiary‟s account within minutes.


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Hassle free money Transfer

Receive payment at any MCB branch

MCB Quasi Equity/Hybrid Instruments

MCB places a group of debt that has some uniqueness of equity such as being unsecured,

subordinated or with a budding equity upside.

MCB Equity Capital Raising

MCB offer capital for their clients by offering common or preferred equity to public or

private investors, through initial public offers, offers for sale, rights issues and private equity

placements

MCB Islamic Banking

MCB Islamic Banking provides Reba Free and Sarah Compliance services to a variety of

customer segments

Online banking :

MCB offer his customer online transfer of his money .this product of bank is more

appreciated in the field of banking .because a person can transfer his amount any place.this

could provide a great facility to customer.


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5.2.5 PESTL ANALYSIS

PESTL analysis is a framework that is used by the organization to examine the external

macro environment in which a firm operates. PESTL is the abbreviation of:

• Political

• Economical

• Social

• Technological

• Legal

5. 2.5.1. Political and legal environment:

Political instability in Pakistan can lead to changes in laws and policies which can be

in favor or against the banking sector.

Political environment is composed of government laws and regulations that influence

and limit the various organizations and individuals. These laws can contain the new

opportunities for business. Business legislation has the following main purposes.

To protect the customers from the unfair business practices adopted by the banking

companies.

To protect the interest of the society form the unfair business behavior

And also protect the banking companies form unfair business companies

5.2.5.2 Economic trends:

Economy of Pakistan is facing issues about ,defence..

Employment

Inflation is very high which will decrease the demand as purchasing power is

decreasing.

illiteracy

Value of rupee is decreasing which is pressurizing the economy

Interest rate is increasing so loan taking has decrerased

budget deficit

consumer income

saving rates


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5.2.5.3. Social environment:

Cultural issues can be there but still as there are a number of multinational

companies there, therefore, cultural issues are not prominent. People in a society

consciously and unconsciously interact with

Lack of experts is in our country regarding management hence innovative activities

are slow and conventional methods are adopted.

Cultural strain to savings is the reason due to which investment remains low .

Inadequate Empowerment is also a usual problem in our organization as every

person want to get more power hence there is less delegation of authority and

decision making.

Others

5.2.5.4. Technological factors:

Technological factors have played a very important role in shaping the lives of

people. People are highly skilled and MCB can introduce new technology to increase

competencies. New technology is creating effects which can be observed in long run.

The improvement techniques involved online banking.

MCB has computerized its most of the branches but still some are manual there is

need to computerized otherwise customers will get bad image.

Employees of each organization need IT training and organization has this trend.

MCB will have to follow it.

5.2.6 CONTRIBUTION OF ORGANIZATION TOWARDS ECONOMIC

DEVELOPMENT

MCB (Muslim Commercial Bank) is performing well after its incorporation. With

every passing day the revenues of MCB are growing and along with the profitability

is also increasing. Bank re-invest these revenues in the businesses and profit is

generated.

Standard of living of people is becoming better as MCB is providing the jobs

opportunities to the young and new talents .

Textile sector is promoting

Agriculture sector is growing better and better as bank provide loans to agriculturist.

Cost effective financial services are providing to people and business community.

Industry sector is growing rapidly with the help MCB investments.

Foreign remittance is also increasing with the efficient and cost effective services of

MCB.


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Some financial Ratios

1) Earning Assets to total Assets

= Earning Assets / Total Assets*100

Year 2011 Year 2012 result

Amount in Rs. ----millions Amount in Rs. ----millions

87.14% 86.61% decrease

Interpretation

The efficiency of the banking firm is measured by its ability to utilize its assets in a manner

that they could be profitable for the firm. The earning assets to total assets ratio of MCB

bank ltd is unfavorable in 2012. The result shows that the bank has put shorter of assets in

top work in both the years and the lower results in 2012 as compared with the base year

2011 shows that the bank is not effectively managing its assets. Although the bank has made

more investments in 2012 but the total assets has decreased more than the earning assets.

Overall the management is showing its efficiency in managing the assets of the MCBbank

Ltd.

2) Loan to Deposit ratio

= Advances / Deposits

Year 2011 Year 2012 Result

Amount in Rs. ----millions Amount in Rs. ----millions

43.96% 46.33% Decrease

This ratio shows how much advances and deposit percentage in Bank

Interpretation

The ratio shows that the loan to deposit ratio is decreased in 2012. It means that the

relationship of assets and liabilities with all requirements of central bank of the country


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affects the bank and the unfavorable is due to the strict monetary policy of the State Bank of

Pakistan.

3)Market to Book value Ratio

= Market value of Share/Book value of share


Amount in ----rupees Amount in ----rupees

1.43times 2.19times Increase

Interpretation

This ratio shows that how the management of MCB bank ltd is efficiently and effectively

working to boost up the value of shareholders as well as the banks value. Market to Book

value ratio is increased in year 2012 as compare to the base year 2011. The increase in the

ratio is favorable to the bank which showing that the market worth of MCB bank ltd is

increasing.

4)Capital adequacy ratio


21.79% 22.13% Increase

Interpretation

It‟s a pleasure for MCB that its capital ratio is increased as compared to base year

2011 and the risk factor is decres .thats increase the worth of MCB in the market.

5)profit before tax ratio


46.20% 46.89% Increase


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Interpretation

Profit before ratio is increase in 2012 as compared to base year 2011 that show

the overall success of MCB in the market financial point of view and also plus point for

MCB in futucher.

Entity credit rating

Credit rating in 2013 in long term point if view AAA and this is proud for MCB.

Cash flow also define the progress of MCB in 2012 as compared base year 2011


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5.3 Organizational structure


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Organization hierarchy chart

Board of Directors

Mian Mohammad Mansha (Non-Executive Director)

Chairman

S.M. Muneer (Non-Executive Director)

Vice Chairman

Tariq Rafi (Non-Executive Director)

Shahzad Saleem (Non-Executive Director)

Sarmad Amin (Non-Executive Director)

Dato‟ Mohammed Hussein (Non-Executive Director)

Dato‟ Seri Ismail Shahudin (Non-Executive Director)

MianRazaMansha (Non-Executive Director)

MianUmerMansha (Non-Executive Director)

Aftab Ahmad Khan (Non-Executive Director)

ManzarMushtaq (Non-Executive Director)

Ahmad AlmanAslam (Non-Executive Director)

M.U.A. Usmani (Executive Director)

5.2.3 Number of employees and other progress

MCB is the most potential bank since 1947 not only for the customers but also for its

employees. MCB is providing the great number of opportunities and benefits to those people

who are willing to do job in MCB. The number of employees is continuously increasing at

MCB as with the span of the business volume of MCB is increasing. MCB is increasing the

career opportunities for employees and motivating them by providing the great number of

benefit and salaries according to their education and experience. Total numbers of

permanent employees working at MCB are 10090 in 2011 and 10612 in 2012.


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MCB ALLAHABAD BRANCH

This branch is located on G.T road Waziradad. This area is an industrial area and MCB

Allahabad branch provide its services according to needs and wants of the people of that

area It is a small size single segmented branch. Seven employees are working in this branch.

BRANCH MANAGER SHIEKH UMER SB.

OPERATIONS MANAGER NADIA AFZAL

CUSTOMER SERVICES OFFICER SAMREEN REHMAT

REMMITENCE OFFICER WAQAAR SB

CASH OFFICER HASSAN SB

OFFICE BOY AQEEL abbas

SWEEPER FAISAL


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HIERARCHY OF MCB BRANCH

General Manager

Regional Manager

Branch Manager

Customer Service Department

Branch Credit Committee Internal Auditor

Account Opening

Department

General Banking Credit Department

Foreign Exchange

Department

Bills Remittances

Department

Clearing

Department

Cash Deposit

Department


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3.4 INTRODUCTION OF ALL DEPARTMENTS

• Operations Department

• Clearing Department

• Remittance Department

• Other Department

• Cash Department

• Accounts Department

OPERATIONS DEPARTMENT

In Operations department I was under supervision of Miss NADIA, Operational manager.

And I learnt to open accounts of different types and nature which are as follows

TYPES OF ACCOUNTS

Single

Joint

Partnership

Private Limited

Public Limited

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

requirements for this type are National Identity Card Photocopy, Minimum Deposited

Balance, Account Opening Form, Registration certificate, agreement among partners and


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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 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

1. Current Account

2. PLS Saving bank A/C

3. Khushali Bachat Account (KBA)

4. Saving 365 A/C

5. Basic banking A/C (BBA)

CURRENT ACCOUNT

The current account is the most common account and the most preferred amongst business

concerns. The theoretical explanation for this would be that they can function more

efficiently but since in reality there are no restrictions on any with drawl the only reason we

could think of is that current account facilitates online banking which saves time (which in

this ultra competitive business world the most precious resource) to a considerable extent. In

case of a current account the client does not earn any interest. Current account enables the

client to do cash transactions in a more efficient manner.

feature

A sum of Rs. 1000/= in cash as initial deposit is required for opening a current account and

the same may be maintained as minimum average running credit balance. No profit is paid

on credit balances held in current accounts. The bank reserves the right to allow opening of

current a/c at its description. All deposits and withdrawal from a current a/c takes place only

at the branch where the account is being maintained. Current a/c cannot be overdrawn,

except by prior agreed agreements with the bank. The correspondence relating to current


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A/Cs should be addressed to manager of the branch where the account is being maintained.

The account holder can draw sums from his account by means of cheque supplied to him by

the bank for that particular account. Account holder should take well care of the

chequebooks issued to them.

PLS SAVING BANK A/C

This account was started in 1980s after the issuing of banking ordinance in 1980 by Zia

Government to develop Islamic banking in Pakistan. In this case customer would be

responsible for bearing profit as well as loss. The bank would be within its rights to make

investment of credit balances in the PLS saving accounts in any manner at its sole discretion

and to make use of the fund to the best of its judgment in the banking business under the

PLS system. For withdrawal of larger amount, 7 days notice in writing is required to be

given.

Minimum balance is Rs.500/=

Not more than eight withdrawals in a year allowed

More than Rs.15000/= are not allowed to draw

Seven day notice is required for big withdrawal

Zakat deducted on @ 2.5%

Profit calculated on monthly basis

Profit paid on annually basis

SAVING 365 ACCOUNT

This account is newly developed of MCB and it provides flexibility of saving account to

business people. Profit on deposits will be payable on daily product basis on balance of RS.

500,000/- and above. However, if balance in the account falls below RS. 500,000/- on any

day, the product will be ignored. There will be no restriction on withdrawal from the

account. Zakat and withholding Tax is also applicable on the account opened under this

scheme.

Minimum balance is Rs.500,000/=

Below minimum balance, profit calculation ignored

Profit calculated on daily basis

Profit paid on annually basis

10% Withholding Tax on minimum balance


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Zakat deducted on @ 2.5%

KHUSHALI BACHAT ACCOUNT

Saving type account

Rate of return is 8% per annum

Profit calculated on daily basis

Profit paid on half yearly basis

Utility bills can be debited through this a/c

No charges will be debited for utility payments

BASIC BANKING A/C (BBA)

Introduced specially for salaried persons.

Minimum balance is Rs.1000/=

No service charges.

Only two transactions allowed, in one month.

For more than two transactions Rs.35/- per transaction.

Single natured A/C.

ACCOUNT OPENING PROCEDURE

Following step must be falowed for a/c opening

• The customer would like to open his account is required to meet with the manager or

second officer, who will give him an “APPLICATION FORM,KYC.

Specimen Card

As I have already mentioned about “Signature Specimen Card”. This card contains two

signatures of an applicant, applicant A/c no, A/c type, branch code, title of A/c, it will be

attached with an application form. Banker uses this card at the time when he receives the

cheque; he compares customer‟s signature with the signature on the cheque for avoiding

fraud.

Manager has every right not to accept this contract if he is not satisfied by the details

provided by the customer.


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Account Opening Register

• The manager records the necessary details into this register and allots an a/c number from

this a/c opening register. This register is maintained for each type of account and the a/c

numbers are allotted serially. After opening a saving and current account every applicant‟s

data is entered into the computer to maintain a safe record and application form is properly

filled so that it can be available when necessary.

Types Of Customers

Individual

Only one person can operate this a/c. We can call it a personnel or individual a/c.

Followings are required to open it.

Signature of customer on back of AOF.

N.I.C photocopy attached

Mention next of kin (nominee)

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

Any one of us or survivor

In first case if one of the a/c holders died then the other can operate the a/c

individually.

Any two/All of us jointly

In second case if one of the a/c holders died then the other partner can‟t operate this

a/c individually without having permission from the court.

Requirements

Sign of both customers on back of AOF

Sign on joint A/C # mandate

Name and A/C # of introducer

NIC copies of both members.

Mode of operation.

Partnership A/C

For partnership a/c, along with the application form signature card.Other documents

are also needed such as

Partnership deed certified copy

NIC photocopies of all partners.

Partnership mandate for account signed by all the partners

A letter duly signed by all the partners containing the operating instructions of the

account also has to be taken.

In case of addition or withdrawal of any partner a new agreement will be required.


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Company Account

For company accounts following documents are required: -

Copy of certificate of incorporation

Memorandum of Association

List of Director‟s

Copy of board resolution

Certificate of Commencement of Business

Copies of NIC of Director‟s

Company‟s Balance Sheet

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.

STAMPING: Then it is stamped. Stamps like. BAL sign verified, Sign Admitted Stamp,

Sign Verified stamps etc are affixed.

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.

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 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.

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.


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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 his

account is going to be closed. There is need an approval form higher authority to close any

account.

CLEARING DEPARTMENT

In clearing department I worked under supervision of Mr.WAQAR. In clearing department

and learned about inward and outward clearing and I also learnt about,

MEANING OF CLEARING

The word clearing has been derived from the word “clear” 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.”

CLEARING HOUSE

It is a place where cheques are presented, collected from bank branch. It is one of the

services provided by NIFT to other commercial banks. NIFT acts as a clearinghouse.

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 accounts of banks are settled

in the same manner.

CLEARING PROCEDURE


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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.

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

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.

“NOTE”

In inward clearing sometimes cheques are not passed due to some reasons then cheques are

sent back to NIFT along with cheque return memo. Some of these reasons are,

Cheque incomplete

Clearing stamp Required.

Drawer‟s sign incomplete

Drawer‟s sign different from specimen

Post Dated

Payment stopped by drawer.

Amount in words and figures differ.

Insufficient funds etc.


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REMITTANCE DEPARTMENT

Remittance is transfer of funds from one place to another or from one person to another. It is

an important service provided by banks to customers as well as non-customers. Since it is

not a free service it is a source of income for the bank.

PARTIES INVOLVED IN REMITTANCE

Four parties involved in remittance: -

Remitter, Remittee, Issuing Bank, Paying Bank

REMITTER

One who initiates, or requests for a remittance. The bank charges him a commission for this

service. He may or may not be the branch‟s customer.

REMITTEE

A Remittee is also called the beneficiary, or the payee. The person in whose name the

remittance is made. A Remittee is also the one who receive the payment.

ISSUING BANK

The bank that sends or effects the remittance, through demand drafts, telegraphic transfers,

or Mail Transfers.

PAYING BANK:

Paying Bank also knows as the drawee branch. The branch from where the instrument is

drawn.

TYPES OF REMITTANCE

Remittance is classified into following four types

1. Inward remittance, instruments received for payment

2. Outward remittance, issuing instrument to the responding branch.

3. Inland remittance, with in same country.

4. Foreign remittance, from one country to another country.


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INSTRUMENTS USED IN REMITTANCE

Demand Draft (DD)

Telegraphic Transfer (TT)

Pay Order (PO)

Call Deposit Receipt (CDR)

Rupees Traveler Cheque (RTC)

DEMAND DRAFT

DD is a written order given by the branch of the bank on behalf of the customer to other

branch of the same bank to pay the certain amount to the customer.DD are issued for the

particular place other than place of issuance. DD applicant or recipient, who might not be an

A/C holder present it to another bank at a different place requesting it to pay on demand a

specified amount of money which is already received to the person named on it.

DOCUMENTATION

A printed application form is provided for filling in completely and signing by the applicant.

After depositing an amount of draft and commission of the bank, duly completed and signed

by two authorized officers, then it is handed over the applicant and credit order is dispatched

to drawee branch.


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TELEGRAPHIC TRANSFER (TT)

TT is fund that is transferred electronically which is remitted on the order of a certain

person. In this case the authority is given from one bank to other on the behalf of the

customer through telecommunication to debit their inter office account through them and

credit their parties account mentioned in TT. But it is not practiced these days frequently

PAY ORDER

For this kind of remittance the payer must have the account in the issuing bank. Pay order

are more liquid as compared to cheques because cheques may be dishonored while PO can‟t

be. It is written order issued by the bank drawn and payable on itself. It is used for local

transfer of money from one person to another person.

DOCUMENTATION

The party who requires a pay order will get a printed application from the bank. He will fill

it and deposits the amount and commission.

CALL DEPOSIT RECEIPT (CDR)

It is an instrument like Cheque issued by the bank on account of a customer & in favor of a

person, to pay the specified amount. CDR‟s are issued to make payments, especially when a

company goes for some tenders or for purchase of government securities or any contracts

with others.

DOCUMENTATION

The party who requires a CDR will get a printed application from the bank. He will fill it

and deposits the amount and commission. The bank enjoys the benefit of keeping funds

deposited until the payment is not made.

TRAVELER RUPEES CHEQUE (RTC)

RTC is the traveler cheque are acceptable at all branches

of MCB, and they carry dozens o f benefits. Security is

always being an important issue of concern. TCs provide

maximum security while carrying big amounts.

DOCUMENTATION

First of all RTC-10 is given to customer. It is filled and then cash is deposited to cash

department. One copy is for office and one copy is given to the customer and RTC are

issued at that time.


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NOTE

At time of my stay in remittance department, there was no issue of CDR, TT, RTC, PO so I

were unable to understand its practical aspects, except clearing.

OTHER DEPARTMENTS

There have been some departments in which internship was not allowed, these departments

were

CASH DEPARTMENT

ACCOUNTS DEPARTMENT

ADVANCES DEPARTMENT

And in TECHNOLOGY DEPARTMENT I got information about ATM and Online Banking

and just filled their forms because computer work was not allowed to internees.

CASH DEPARTMENT

The cash department is the most important department of the bank. In cash department both

deposits and withdrawals go side by side. This department deals with cash deposits and

payments.

The following books are maintained in the Cash

Department:

Cash Receipt Book

Cash Payment Book

Cash Balance Book

The officers in this department are called teller and there weretwoa tellers Miss SAMREEN

REHMAT and MR. HASAN at the counter. This department is involved in two activities:

Cash Deposits, Cash Payments.

CASH RECEIPT BOOK

The cashier is responsible to receive both the paying-in-slip and cash from the depositor. For

depositing the cash into customer‟s accounts, there is need to fill in the paying-in-slip giving

the related details of the transaction. The cashier check the necessary details provided in the

paying-in-slip and accounts the cash and tallies with the amount declared in the slip then

cashier fills in the “Cash voucher received Record Sheet” and assigns a voucher no. to both

the transaction being made in the sheet and the slip. The 2nd

cashier posts the transaction

entries in computer ledger. After posting these entries, computer display before posting


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balance and 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 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

ACCOUNTS DEPARTMENT

The most important aspect in record keeping of a bank is its accounting system. The basic

purpose for maintaining an accounting system is to ensure consistency in record keeping and

accounts. The basic requirement for any accounting system is that it should be in accordance

with the GAAP i.e. Generally Accepted Accounting Principles. There are two choices

available to an organization for an accounting system.

Main Functions of Accounts Department:

The major function of this department is keeping the record maintenance of each and every

transaction and prepares reports about the amount of deposits and advances and sent to State

Bank of Pakistan on monthly, quarterly and yearly basis as fallows;

Budgets and budget review form

Income & expenditures.

Reports and Reconciliation.


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Activity checking.

Depreciation & Maintenance of fixed assets provision.

Maintenance & depreciation of fixed assets.

TECHNOLOGY DEPARTMENT

It includes

Mobile Banking

Phone Banking

Online Banking

ATM

MOBILE BANKING

It has been launched recently. It helps in getting accounts details

and making transactions using mobiles.

PHONE BANKING

"MCB Phone Banking” is available to all customers on a

countrywide basis. Customers can dial 111-000-622(without any city code/prefix) from their

respective cities Customers enjoy 24x7 Round the Clock Phone Banking Services. MCB is

the first bank in Pakistan to offer Centralized connectivity.

ONLINE BANKING

MCB now offers the facility of on-line banking to its customers through its country wide

network of branches. Customers can use the ATMs or the banking counters of any branch

for day-to-day banking needs, irrespective of branch

where they maintain their accounts.

There are now more than 250 branches linked through

this system and they can transact with each other directly

using computer systems and the software named

“SYMBOLS” at their own branches.

ATM (Automated Teller Machine)

ATM stands for Automated Teller Machine. This

machine is used to transact in one's account without

intervention of humans. These machines are basically

used for taking cash, confirming balances and requesting statements / cheque books. MCB

has the largest ATM network in the country at the moment with almost one ATM at each


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online branch and also ATM terminals at International Airports covering 27 cities of

Pakistan ATMs are operated through a card issued to the valued customers and by

application of Personal Identification Number (PIN number). Now MCB has also entered

into a contract with Cirrus which is a subsidiary of MasterCard. This contract will enable an

ATM card holder to use his account even when he is out of country at all the ATMs where

Cirrus logo is displayed.

Green Cards are ordinary cards with a maximum withdrawal facility of Rs. 10,000/- in a

day. The annual fee for this card is Rs. 300/- only.

Gold Cards are special cars with maximum withdrawal limit of Rs. 25000/- in a day. These

cards are issued to the persons having more than Rs. 500000/- as their average balance.

International Cards are issued in collaboration with Cirrus and are useable all over the world

with maximum withdrawal facility according to the standards of Cirrus.

ADVANCES DEPARTMENT

Different banks provide loan facility to general public, companies etc. but MCB provides

two types of loans that are as under:

1. …… Fund Base Loans

2. …… Non Fund Base Loans

FUND BASE LOANS

In this type of loans cash is directly involved. Bank provides loans in shape of cash. Bank

gives credit or limit facility to customers that needed it. In fund based loans there are two

further classifications:

Long Term Loans

Lease facility for car

For Machinery

For Fixed Assets

Short Term Loans

Running Finance (R/F)

Cash Finance (C/F)

RUNNING FINANCE

The MCB provides overdraft facility to the customers for the working capital requirement.

These are the loans which are given to those customers whose business runs through out the

year or continuously. Its duration is one year and it is for running business.


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In advances there are two securities one is known primary security and other is secondary or

collateral security. Hypothecation of stock is the primary security and mortgage is the

secondary or collateral security.

SECURITIES FOR FUND BASE LOANS:

Hypothecation of Stock

Mortgage

Pledge

5.3.5 Comments on the organizational structure

Muslim Commercial Bank LTD having named as MCB is no doubt a very giant and famous

organization exists in the market. And my experience is as compare to that very small

enough to say something or comment on this bank. But I like to comment on those findings

which I observe during my 6 weeks internship program in a very small branch of MCB in

Wazirabad. And the branch ultimately reflects whole of the organization structure. Now in

the light of my internship experience I observe many things some are negative one and some

are positives ones. I observe that the staff is hardworking and their job is very tough

employees perform difficult jobs but their remuneration take away is very fewer. The

environment of this particular branch is much better but in my personal point of view, MCB

should provide the more security especially for women‟s sectors. The other thing, which I

observed that they have insufficient staff in all departments. And this situation is for not only

in a single branch now they plan for hire new employees to increase the output level as well

as the shortage of work burden to every individual.

Relation of the theoretical Concepts

With the degree program (MBA)

I saw a few implementation of the theory written in the books in the MCB. Not only MCB

all other banks has own system of dealing. The theory written in the books in cases is not

implemented as it is. In some cases theory is implemented with a little modification but in

other cases theory has nothing to do with practice

Theory vs. Practical

Theory gives you the direction to understand the processes and the terminologies going

across the World using best business practices in a broader view covering each and every

aspect of possible business scenarios. On the contrary practical life is specific, enclosed in a

jar. In practical professionalism and firm‟s environment is each and every thing.

Professional life only builds on the knowledge based on books even though it may only use

1% of the theoretical knowledge.


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Direction

During my internship I have observed the person who has come as customer Relationship

Officer was acting as Cashier. It should not be like this. The person should be posted

according to his qualification, profession skills and experience.

Right person for right job

People have to wait for en-cashing their cheques for about 10-20 minutes, which is not good

for the reputation of bank; the delay is due to manual work. Therefore I suggest that

computers and other electronic machines should be installed in bank so that time could be

saved.

Customer problem

As situated in the commercial area MCB (1471), it is covered with customers always. But

unfortunately, the generator is out of order from three to four month. There is no other

generator for the branch. UPS only runs a hour, when the light is off. Printer cannot work on

generator due to over load. The people have to wait for long time for collect their money. It

is a very shameful aspect of MCB (1471)

The system has not totally shifted on computer. Manual procedure is still there hence

computer facility is not fully availed. There should be a system at each counter for quick

processing.

MCB is now emphasizing on the form sectors. Future prospective of MCB is also to

promote dairy, fish and poultry forms. MCB will launch several products for them to grow

this industry well in Pakistan and we can export more.

However, the staff of MCB is very convenient and co- operative. All employees are

punctual and responsible. They are all veryhardworking and their communication with each

other is very good.


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5.4 INTERNEE WORK

5.4.1 Brief introduction of internee's branch

I performed my internship in MCB Allahabad Wazirabad. I had started my internship in

MCB Allahabad on 22-07-2013 and it was completed on 30-08-2013.This branch was

incorporated in 2004 and Mr. Abdul Sttar Ansari was the first manger in this branch. This

branch is located at G.T road Wazirabad. The branch is called MCB Allahabad and code is

1471.

This branch is an online branch. This branch is a centralized and all work is done through a

proper system. MCB Allahabad branch is a single segmented branch. It collects money from

its depositors and got pool rate on it from parent branch.

Contact numbers of branch

• 055-6608311

• 055-6608691

Staff members:

Mr. Shiekh UMER KHALID (Branch manager)

Miss. NADIA AFZAL (Operation manager)

Mr. WAQAAR sb (Clearing Officer)

Mr. HASSAN sb (Cashier)

Miss. SAMREEN REHMAT(C.S.O)

Mr. AQEEL ABBAS (Office boy)

FAISAL (sweeper)

5.4.2 Details of supervisors:

I worked under the supervision of four supervisors during my internship duration. Their

names and positions are as follows:

HASSAN SAB (CASHIER)

NADIA AFZAL (OPERATION MANAGER)

Sh. UMER KHALID

Sir WAQAR


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Miss. NADIA AFZAL:

She is operation manger in MCB Allahabad Wazirabad. She has the responsibility of all

operational activities in the bank. She approved cheques for cash ,filled the debit credit slips

and responsible of debit credit of cheques. She issued the cheque books to the customers and

she also issued the foreign remittance amount slips. She is also liable for clearing cheques.

Sir WAQAR SB:

He is a clearing officer in this branch and general banking officer.

He is responsible of clearing and posting of cheques and online cash transfer. He is also

liable of issuing Demand draft ,Telegraph transfer ,Postal order and Traveller cheques.

SEIKH.UMER KHALID:

He is the branch manager and responsible to control all the activities in the branch. His job is

to implement policies of Organization and bring revenue in the bank. He told me about basic

earning of the bank and local clearing and intercity clearing.

HASAN SB:

He is a Cashier in this branch and his duty is to handle deposit and receipts of

cash. He told me how to deposit cash and receive the cash and enter data in computer orally.

And tell me different techniques of a cheque which one is cash .


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5.4.3 WEEKLY TIME TABLES

WEEK 1 (22-07-2013 to 26-07-2013)

Department name: customer service

Supervisor name: SAMREEN REHMAT

Date

Activities

22-07-2013

Introduction of all departments staff membersaand learned about the

system and procedures used in the branch. I learn how to fill deposit

slips.

23-07-2013

She taught me about how to attend the customers call and how to

check balance of account holders from the system and told them

about their current balance account. I also filled the deposit slips

24-07-2013

I learned about how to fill Online fund transfer form and my

supervisor told me about charges of internal fund transfer Online and

I also learned how to open different types of accounts

25-07-2013

She taught me how to fill different types of cheques and how to fill

the cheques of different customers who don‟t know to fill the

cheques.

26-07-2013

I learned about charges of different products like cheque book

charges,

Demand Draft charges , Online fund transfer charges and T.T

charges.


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WEEK 2 (29-07-2013 to 2-08-2013)

Department name: Deposit and Customer service department.

Supervisor name: Miss. SAMREEN REHMAT.

Date

Activities

29-07-2013

I made scroll of utility bills and record the foreign remittance

amount in register. I also fill the account opening forms put stamps

on these forms and calculate the amount of utility bills

30-07-2013

. I call to list of customers to bring their I.D card copy and receive

their ATM VISA DEBIT cards. I also learned about how to fill

Online fund transfer form.

31-07-2013

I learned about how to fill account opening application form and

learned about requirements that are necessary for account opening

and she told me about importance of NADRA Verification system

taught me KYC form.

1-08-2013

Opened current accounts of three customers and fill their account

opening forms and attached necessary requirements with the form

for example CNIC card of next of kin ,mother indemnity form,

KYC form

2-08-2013

. I filled two forms of BBA account and stamping on these forms

under supervision of my supervisor. I also issued ATM cards to

customers and record their signatures on ATM register.


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WEEK 3 (05-08-2013 to 09-08-2013)

DEPT. NAME: cash department

Supervisor name: Sir HASSAN

Date

Activities

5-08-2013

This week start with the new seasonal activity name‟s „fresh cash‟ .sir

Hassan told me about the entries of new cash on new cash register.

Secondly made the list of account holder qotta.

6-08-2013

I filled deposit slips and cheques of those customers who are unable to

fill their cheques.and also mange fresh cash distribution

7-08-2013

Last working day before Eid was very crucial for me. Because every

person wants fresh cash as much as quick. so this day the main activity

was distribution of f.cash.

08-08-2013

EID HOLIDAY

09-08-2013

EID HOLIDAY


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WEEK 4 (12-08-2013 to 16-08-2013)

DEPT. NAME: OPERATION DEPARTMENT

Supervisor name: Miss. NADIA AFZAL

Date

Activities

12-08-2013

I filled the online My supervisor taught me about clearing of cheques

and types of clearing of cheques and about clearing house (NIFT).She

also told me Rupee Traveler Cheque and I also filled debit credit slips.

e slips and record entries of ATM cards.

13-08-2013

I learned how to fill the debit credit slips by operation manger and

told about stamp‟s ,she also told me reasons of dishonor of cheque.

14-08-2013

INDIPANDANS DAY

15-08-2013

I record the entries of new cheques books in the register. I also called

customers and asked them to receive their VISA BEBIT card.

16-08-2013

I learned about BANCA ASSURANCE and record the entries of

foreign remittance in the register and make deposit slips. I also

calculate the amount of utility bills with calculator.


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WEEK 5 (19-08-2013 to 23-08-2013)

DEPT. NAME: CLEARING AND REMITTANCE DEPARTMENT

Supervisor name: Sir. WAQAR SAB

Date

Activities

19-08-2013

My supervisor taught me about how to send cheques for local clearing

and intercity clearing. I also filled Demand Draft form Postal Order

form.

20-08-2013

I filled online slips and deposit slips. Record foreign remittance

amounts in the register. My supervisor also told me about clearing

stamps.

21-08-2013

I learnt use of NADRA VERISYS and print out different verifications.

Issued cheque books to customers and record them in the register . Open

a current account and BBA account.

22-08-2013

I filled online internal transfer forms and told the customers about its

charges. Supervisor told me about Banca assurance policy and I

convince different customers for BANCA ASSURANCE company.

23-08-2013

I opened a current account and joint account. I also filled deposit slips

and online fund transfer slips. My supervisor told me about posting

stamps.


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WEEK 6 (26-08-2013 to 30-08-2013)

DEPT NAME: CASH DEPARTMENT.

Supervisor name: Mr. HASAN & Mr.WAQAR

Date

Activities

26-08-2013

I learned about procedure of clearing and posting of Cheques. Make

deposit slips. Make online slips. My supervisor told me about charges

of local city and intercity clearing cheques and told about

requirements that are necessary for transferring of money.

27-08-2013

My supervisor told me about basic functions of cash department and I

filled the deposit slips.

28-08-2013

I learned about NIFT institution which deals the clearing of cheques.I

also learned about scanning of cheques and record the entries of new

cheque books.

29-08-2013

I went with branch manager for marketing and he told me about the

significant of marketing . Make the entries of clearing cheques in the

register.

30-08-2013

Affix stamps on account opening forms. Make the entries of new

accounts and record new cheque books in the register. And reviewing

those forma that return from main office. and correct the

discrepancies.


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5.4.4 DEPARTMENTS WHERE I PERFORMED MY INTERNSHIP

1) OPERATION DEPARTMENT

2) REMITTANCE DEPARTMENT

3) CLEARING DEPARTMENT

OPERATIONS DEPARTMENT

In Operation department NadiaAfzal is an Operation manager. She told me different

nature of accounts which are followings:

NATURE OF ACCOUNTS

1) .CURRENT ACCOUNT:

Current account is the most common type of account used by most of people. During my

internship I opened so many current accounts and filled their forms and necessary

requirements.

2) .PLS SAVING BANK ACCOUNT:

I opened some of PLS saving during my internship. In this case customer can get profit on

his/her deposit. Seven days notice is required for withdraw the cash in this particular

account.

3) -SAVING 365 ACCOUNT

This account is also used for saving purposes. I opened one SAVING 365 ACCOUNT

during my internship.

4) -KHUSHALI BACHAT ACCOUNT:

It is a saving type account and an account holder can get profit on his investment @8% per

year.

5) -BASIC BANKING A/C (BBA)

BBA account mostly used by salaried persons.

It is a single natured A/C.

50 rupees are to be deducted if balance is below 10000 PKR.


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ACCOUNT OPENING PROCEDURE:

Account opening procedure is following which I learned during my internship period.

CNIC copy of applicant

Copy of next of kin of applicant

Fill the application form

Fill the KYC form

Signatures of applicant at necessary place at form

Stamping on form

Send the form to head office

Issue account number by head office

Applicant deposit cash in his account

Issue cheque book by head office Karachi

CLOSING OF AN ACCOUNT

These reasons are following below:

Customer can close his account by giving application to bank.

If customer has no money and unable to run the account.

Bankruptcy of bank in this situation accounts are closed.

If an account contain nil balance or not up to the requirements of rules.

CLEARING DEPARTMENT

In clearing department Sir WAQAR told me about clearing of bank instrument. In clearing

department I learnt about local clearing intercity clearing and charges of these types.

MY LEARNING IN CLEARING DEPARTMENT:

I learned the role of clearing house NIFT

I learned about the functions of NIFT

I learned about local clearing procedure and intercity clearing procdure.

I learned the use of stamps which are used in clearing.

I also learned about how to send a cheque for clearing


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REMITTANCE DEPARTMENT:

Remittance is transfer of funds from one place to another or from one person to another and

from one country

5.4.5 ACTIVITIES DONE AND LEARNED BY ME

Symbols software:

Before “Symbols software” MIB software was used to perform all operational activities in

MCB. But it was old and not up to standard software so MCB bank introduced a new

software “SYMBOLS” which is very useful for handling operational activities.” Symbols”

are performing two main categories which are DEPOSITS and KERNAL. Both categories

perform many numbers of tasks . Single employee can not perform all the tasks. Employees

have access on the tasks according to their position and remaining tasks are not accessible

for that employee. I worked on this software and learned following things:

Deposit category:

These tasks are as follows which are performed in this category:

Deposits (credit the customer‟s account)

Withdrawals (debit the customer‟s account)

Account ceasing

Closing of account

Put the repress on the account

Account history (information about all the debit and credit transaction, account

balance etc.)

Access of employees:

Only Mr. HASAN (Cashier) has the access of deposit that is to credit the account of

customer.

Sir HASAN also (Cashier) has access on withdrawals that is to debit the account of

customers.

Miss. NADIA AFZAL has the access on closing the accounts of the customers in this

branch.

Miss. SAMREEN REHMAT has access on putting restrains on customer‟s accounts

and account ceasing in this branch.

KERNAL:

KERNAL category contains all necessary information about customers. All

information about customers is placed and saved in the KERNAL category. When account

opening manager opens the account of any customer then he enters all the information of


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customer in the client information cell and client information cell converts this information

into KERNAL.

Filling of cheques:

Cheque is very important instrument in the bank. So cheques should be

filled with attention is very necessary. Filling of cheque is not easy but if you fill with

concentration it is not tough. Some customers came in the branch who did not know that

how to fill the cheques then supervisor asked to me to fill the cheques of those customers. I

filled the many numbers of cheques of those customers who are all drawings persons during

my internship period. First of all I wrote the date on the cheque and title of account. After

that I wrote the amount in alphabets as well as in figures then gave the cheque to customer

for signatures. They signed two signatures on the back side of cheque and one signature on

the front of cheque. Some customers could not do the signatures I took their thumb signs on

the cheque at the place of signatures. Some customers who had shaky signatures I cancelled

their cheque. My supervisor taught me very well.

Cancellation of cheques:

I learned about the conditions in which a cheque can be dishonor or cancelled. I got this

information from Miss. SAMREEN REHMAT. These situations are as follows:

My supervisor told me that post- dated cheques cannot be cashed. Post- dated

cheques are those cheques which have date of some future time period.

I learned that mutilated cheques are not acceptable by the bank and these cheques

are cancelled by bank. Mutilated cheques are those cheques that are in condition of

wear and tear .

I learned that the cheque which amount is differed in words and figures can not be

cashed and I also cancelled stale cheque which was six month old dated cheque. I

cancelled so many cheques of wrong signatures ,4 stale cheques, 3 mutilated cheques

and 7 post-dated cheques in my internship period.

Make deposit slips:

This is that activity which I performed almost daily and most time during my internship. I

filled so many deposit slips in a day . Method of filling deposit slip was that first of all I

wrote branch code 1471 on the left side corner and then date on right side after that I asked

account no. from customer and wrote it in account number row and also wrote the account

title above the account number row then I selected account type among three types current

account, saving and business . I ticked on current account because customer account was

current account after that I select mode of currency PKR among four types . Then I asked

the customer that what he should want to deposit either cash or cheque. He told me he

wanted to deposit cash then I tick mark on cash and wrote the amount in figures and words

both at their particular place. After that I wrote MCB at slip where it was necessary .Then I


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asked him to sign on the slip and deposit it in cash department. I also filled so many slips of

cheque deposit in that case mention cheque number and branch name is necessary from

where cheque is issued. In this case other things are same as well as cash deposit except

cheque number and branch name of drawn cheque. Hundreds of deposit slips are filled by

me during my internship.

LEARNING OF SBP (State Bank of Pakistan) CODES:

State Bank of Pakistan has issued various codes for various types of customers and clients

that are necessary for account opening and written on account opening forms. I used those

codes in my internship which are followings:

499 is a code for business man person. The code for salary person is 601.

603 is a code for zakat mustakeen, widows, house wives and students.

602 is a code for self- employed person.

601 is a code for salaried person.

Make fund transfer slips:

This task was that in which I faced so many difficulty in the start due to enough knowledge

about charges. This particular task was given to me by SIR WAQAR who was the clearing

officer in that branch. He told me about how to charge for internal fund transfer and how to

fill this slip in detail. After some practice it was very easy and interesting job for me. In a

single day I filled so many internal fund transfer slips. Method of filling of this slip is that

first of all I wrote the branch name Allahabad then branch code 1471 after this date mode of

currency PKR and amount in figures and words both. After this I mentioned the following

things on the slip 1-Beneficiary name 2-Beneficiary address 3-Account number of

beneficiary 4-branch code and name of beneficiary 5-at the end purpose of remittance. After

this I filled second part of the slip and wrote the name and account number of the sender I

also mentioned the CNIC NO. in so many slips then I wrote the charges of amount of

remittance and asked the sender to sign on two place applicant signatures. After this process

I asked applicant to go cashier and deposit cash with charges and receive applicant copy for

record. I did this job so many time during my internship and learned so many things.

DAK RECEIVED ENTRIES

Miss. SAMREEN REHMAT assigned me this particular task of receiving DAK because it is

very necessary for any banker. So I received many of DAK and made the entries in the

register. After receiving any DAK I affixed the stamp of received on it and record entries in

the register.


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ATM scrolls:

Miss. SAMREEN REHMAT was assigned me this particular task to record the ATM

transaction scrolls which contained the information about transaction record like transaction

date and time ,number of transaction ,serial number and amount . I enter all this necessary

information in the register. I did this task 5 to 6 times during my whole internship. This was

very interesting job for me.

CHEQUE BOOK ENTRIES:

Miss. NADIA AFZAL assigned me this task to enter the new cheque books in the register

and it is very useful for me. The every entry of cheque book was contained following

information 1- Applying date and receiving date of cheque book 2- Account title of cheque

book 3- account number and the entry date.

REQUISITION OF CHEQUE BOOK:

Miss. NADIA AFZAL assigned me this task and asked me to attach the cheque book

requisitions with cheque books. Requisition of cheque books are seprated form from account

opening form,This was very difficult task to find the cheque book requisitions as many of

the cheque book requisitions were lost due to mishandling. I attached the requisitions of

those which I found record them in register.

OPEN CURRENT ACCOUNT:

Mostly people have desired to open the current account so my supervisor Miss. SAMREEN

REHMAT was assigned to me this particular task of opening current account .During my

internship period I had opened so many current accounts and some of other account like 3

BBA accounts and one business account. For opening current account I asked the customer

about his information and filled the account opening form and then I asked him to signatures

on every place at the form where this was mandatory. I took his signatures on following at

form 1- Signatures on specimen card 2- signatures at terms and conditions 3- Signatures on

KYC form 4-Signatures on cheque book requisition. After this I took the copy of CNIC card

and copy of next of kin and attached it with form of applicant . After this I got NADRA

verification from Miss. NADIA and attached it with form then complete the form and

stamping on the form. Then I signed from branch manager on the form and send it head

office for issuing account number.


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DEALING WITH ZAKAT MUSTAHKEEN CUSTOMERS:

This task was issued to me by Miss. SAMREEN REHMAT to fill the Zakat Mustahkeen

opening account application forms and I made the deposit slips to deposit the cheques of

customers. In those days there was so much work load in the bank because of EID –UL-

FITTAR. Zakat committee was provided the crossed cheques to the customers and

customers were coming in the branch for receiving cash. It was necessary to open the

accounts of all Zakat customers because they all had the crossed cheques and to cash the

crossed cheques it was necessary to deposit the cheque in the account. These customers are

mostly illiterate customers and guide them was not easy task.

ENTRIES OF NEW OPENING ACCOUNTS:

This special task was assigned to me by Miss. NADIA AFZAL who was the Operation

manager at this branch. I entered the information of new accounts in the record register. I

wrote the following information in the register 1- Account title 2- Account number 3- Date

of account opening in the register. I did this work 3 to 4 times during my whole internship

period.

Attached the account opening forms in register:

This necessary task was assigned to me by Miss. SAMREEN REHMAT who was the C.S.O

at this branch. It was a file type big size register in which I attached the account opening

application forms with the GUM. This was very important to put forms in the folder for

record keeping.

5.4.6 SUMMARY OF LEARNING

5.4.6.1 What skills and qualifications you think that you have gained from the

internship

I gained so many skills and qualification during my internship which are followings as:

I learned how to work under pressure of seniors and work load during my internship

period.

I boost up my communication skills by doing work in bank where communication

skills are very necessary . I deal so many variety of customers during internship.

I learned negotiation skills from branch manager that is very necessary and important

for any banker and marketer.

During my internship the most important skill which I gained is a work with teams .

Work with teams increase confidence level and fast the working skills.


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I also learned how to co-operate with each other in an organization and how to

handle any conflict in the organization.

I attained the qualification how to work in banking sector and how to perform

operations in bank.

BY doing internship in MCB Allahabad I have skills of filling cheque, internal fund

transfer online, pay order slips and filling of account opening forms and many other

activities which are performed in a bank.

I also got management skills during my fruitful internship period.

I have learned how to operate “SYMBOLS” software in MCB and I worked on this

software .

I also gained knowledge about how to cancel the ATM VISA DEBIT card and how

to use this card and told the customers about use of it.

I gained knowledge of deposit and withdraws of cash during my internship period.

5.4.6.2 What kind of responsibilities you have undertaken during the internship

period?

I have performed so many responsibilities in my internship which are following as:

I have performed the responsibility of filling deposit slips and it is very common and

necessary responsibility in the bank.

I have performed the responsibility of filling cheques during my internship period.

I have performed the duty of dealing of customers and clients.

I have performed the responsibility of filling Online internal fund transfer slips in

my internship.

I have done the responsibility of DAK receiving during my internship.

I have done the record of entries of new opening account in register.

I have performed the duty of filling account opening form during my internship.

I have performed the duty of affixing stamps on the forms.

I have performed the duty of marketing of MCB products.


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5.4.6.3 How do you think the internship will influence your future career plans?

I think that internship will influence my future career plans in the following ways:

I am doing of degree MBA and I want to become a good banker in my future .

Before doing internship I know nothing about practical work of bank . After doing

my internship I gained a lot of experience of banking field and now I can perform the

basic functions of a bank.

My work experience in MCB Allahabad boost up my confidence for getting job in

bank .Now I will avail a good job in my future after completion of my degree.

I learned the very important skill of relationship building with people in my

internship . I also got knowledge of relationship in future life. And I realized that

how to use the relations in my life. Good relations are key components of successful

life for a person.

5.4.6.4 How do you think the internship activities that you carried out are correlated

with your classroom knowledge?

Activities which I have performed in my internship period I examine that most of activities

are correlated with the knowledge of classroom but some are not correlated. Being a HRM

specialization student I have studied the subject of “Training And Development,

Compensation& Reward Management, Performance Management” but I saw the practical

use of these subjects in the bank .for example internal alignment system, how performance

be evaluated of an employee ,training need assessment also measured. and I have also

studied the different types of cheques in my class but I utilized them practically in bank. I

have studied about account opening in the books but I did it practically in the bank . Some of

activities are not correlated with the classroom knowledge traditionally method are used to

acquiring customers not use proper marketing tools.

6 Conclusions of the report

6.1 A summary of key conclusions derived from the internship experience.

I concluded after completion of my internship period is that the environment of MCB

Allahabad is very impressive and reflect the good image of whole organization MCB .

Employees of MCB Allahabad are very co-operative with each other and support me in

whole of my internship. I also concluded that in the light of SWOT analysis MCB bank is

playing a very vital role in the economy of Pakistan due its largest network in Pakistan and

other countries. MCB bank is working very well but there are some deficiencies are also


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exists like shortage of work force due to its low salaries , not proper use of technology etc .

But employees of MCB Allahabad branch are very efficient and loyal with their

organization. They help me very well and it was very fruitful period for me in MCB . I

learned so many professional skills after doing my internship period.

6.2 General observations about the sector in which your internship

company/institution operates

General observation about MCB after doing my internship is that MCB Allahabad branch

is serving very well and is providing services to people of that area. Employees are

committed and worked with dedication. Mostly people are satisfied with its services but

some customers are not satisfied due its high service charges . Environment of this branch is

very good customer care is the first priority of the employees of this particular branch but

there is a lack of employees and necessary equipment for example printer. But overall

performance of MCB 1471 is very well and it is very memorable for me.

6.3 SWOT ANALYSIS:

SWOT analysis represents the analysis of Strengths, Weaknesses, Opportunities and Threats

of the organization. Strengths and weaknesses represents the internal analysis of the

organization and Opportunities and Threats represents the external analysis.

STRNGTHS:

One of the major strength of MCB is the secure and safe investment venture.

The largest network of ONLINE branches in all over the Pakistan.

The oldest banking network with its old existing customers.

Highly technological and highly equipped banking network.

MCB is focusing on consumerism and excellent service quality.

Proper training and development of employees .

Attractive and strong products and services of MCB.

Employees satisfaction and complete supervision of employees at every level.

WEAKNESSES:


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Non aggressive marketing campaigns against its rivals.

Increasing turn- over rate of employees due to its improper reward and promotion

system.

Ineffective hiring and firing system of employees .

Unclear product differentiation .

Networking problem in ATM machines.

Mismanagement of time and excessive work load on employees.

Less numbers of branches in other countries.

, Opportunities:

Incorporation of more foreign branches in developing countries.

Increasing trend of depositing cash in banks and MCB is the oldest domestic bank

and people trust on MCB.

Rapid growth in industrial sector .

New improved technology is source of customer satisfaction and opportunity for

MCB.

Centralization in MCB is a great opportunity for customers as well as MCB bank.

THREATS:

Unstable government is a big threat for MCB .

Increasing competition in banking sector and MCB Allahabad is facing very tough

competition now –a-days.

Increasing of technology adoption by rivals of MCB.

New banks entering in the market is a huge threat.

Low price services providing by competitor.

7.Recommendations:


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There are some recommendations to overcome the weaknesses of MCB bank. These are

following as:

MCB Allahabad branch is located near the industry area so it should establish

Advance Department .

MCB 1471 branch should hire the more staff members and reduced the work load

and satisfy the customers .

This particular branch has a need of ATM machine and higher authority should

provide it ATM machine.

MCB bank should conduct seminars and training and development programs and

enhance the working skills of employees.

MCB bank should introduced attractive and less imitate able products to compete

with competitors.

MCB bank should increase the salaries of its employees so that they work with

dedication.

It should launch attractive marketing campaigns in the competition of rivals.

MCB should provide sufficient funds for maintains of equipment.

It should start evening shift for businessmen till 9:00 pm.

It should provide better working environment and should remove tussle among

higher level employees and low level employees.


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8. References:

www.google.com

www.mcb.com.pk

[email protected]

[email protected]

[email protected]

Documents

Internship Report of MCB