MUSLIM COMMERCIAL BANK LIMITED

INTERNSHIP REPORT ON

MCB BANK LIMITED

GUJRANWALA BRANCH

PROGRAME: MBA (Finance)

Name of Program Coordinator ..

Signature of Program Coordinator

Internship Report submitted to the Faculty of Commerce in Partial Fulfillment of the Requirements for the Degree of Master of Commerce.

DEDICATION

I dedicate my all efforts to my beloved parents because of their love and affection which brings me to reach at this position.

Preface

With the changing world scenario, the need for effective and efficient managers has increased manifold. The organizations require managers with analytical and problem solving abilities enabling them to exploit the opportunities presented. Today, the most important pre-requisite for managers is to have well-developed communication skills so that they not only are able to communicate within the organizations but also with the groups outside the organization, customers, suppliers, government and the community.

The development of these skills not only requires strong theoretical knowledge but also a practical experience. Although the six week internship program has not fully developed these abilities but it has at least given me a feel of the market. It has, to some extent, enabled me to see the relevance and applicability of various tools and theories of management. Moreover, this training has created an awareness of the various career opportunities available in the market. Also now in this age where there is huge competition among MBA students. Because most of students prefer MBA.

This report thus represents in a handy and systematic manner, the details of my internship program at MCB. I have tried to write this report using the most accurate and up-todate information and hope that it will give the reader a brief and meaningful idea about the organization. And I hope my teachers appreciate it also.

ACHKNOWLEDGEMENT

First I want to thank Allah who blessed me with skills knowledge. And give me strength to do this task.

Then I would like to thanks my parents whose efforts brings me more strong. I extent my graduation cause of my parents and teachers who help me to accomplish my task.

I am also thankful to members of Muslim commercial bank to give me an opportunity to enhance my practical skills.

Table of contents

1. Title page

Dedication

Preface

2. Acknowledgements

3. Table of contents

4. A Brief executive Summary of the Internship

Main Body of Report

Part-1:

5.1 INTRODUCTION

5.2 OVERVIEW OF THE ORGANIZATION:

5.2.1 Brief history

5.2.2 Nature of the organization

5.2.3 Business volume, reward honors & success

stories etc.

5.2.4 Product/service line

5.2.5 PESTL analysis

5.2.6 Contribution of MCB towards economic development

5.3 ORGANIZATIONAL STRUCTURE:

5.3.1Organizational Hierarchy chart

5.3.2 Number of employees

5.3.3 Main offices

5.3.4 Introduction of all departments

Part-2:

5.4 INTERNEE WORK:

5.4.1 Brief Introduction of branch

5.4.2 Details of supervisors

5.4.3 Weekly timetables

5.4.4 Description of Departments (workstation)

5.4.5 Description of activities

5.4.6 Description of Assigned Project

5.4.7 Summary of Learning

5.4.7.1Gained Skills and Qualifications

5.4.7.2 Undertaken Responsibilities

5.4.7.3 Influence of Internship on Future Career

5.4.7.4 Correlation between experience and classroom

Knowledge

6. CONCLUSION OF REPORT:

6.1 Conclusion of internship experience

6.2 Overview of banking sector

6.3 SWOT analysis

Strength

Weakness

Opportunities

Threat

7. Recommendations

8. References

9. Appendix and supplementary material

Executive Summary:

Internship is a compulsory subject in 3rd semester of Master in Business Administration. This requires the students to complete the 6 week internship after 2nd semester. I am also the student of MBA in University of Gujrat. So according to the requirement of UOG I was also required to undergo the internship program. I had also to submit the internship report, so for this purpose I selected the Muslim Commercial Bank, Gujranwala branch and completed my six week internship.

Another purpose of doing internship is that in these days due to limited job opportunities it has become very difficult for people to start their professional career after completing their higher education. Only those people are hired who have knowledge along with experience. So before starting my internship, I decided to work with full devotion in Muslim Commercial Bank.

MCB Bank limited has a solid foundation of over 50 years in Pakistan, with a network of over 1000 branches over 850 of Automated branches and over 350 MCB ATMs It has eight Islamic Banking branches. Bank has taken the lead in introducing the innovative concept of centralizing Trade Services in country by providing centralized foreign exchange services to branches a view to improve efficiency, expertise and reduce delivery cost.

During my internship I observed various departments of Muslim Commercial Bank. I worked on the following things: Deposits, Online Transfer, Filling of Cheque, Opening of accounts, Pay order, Demand Draft, Remittances, Clearance, Rupee Traveling Cheque etc. I tried to successfully complete this tasks assigned to me.

I observed a lot of practical things which are daily requirements of banking working system. I also observed the banks behavior with their customers and within branch. I also learned documentation and record keeping for different activities and processes of bank. I found that all these things were different from the courses which we studied in our MBA & M.COM.

PART-1

5.1 INTRODUCTION AND OVERVIEW OF ORGANIZATION:

INTRODUCTION:

Broader view of financial market and business is important when we are the students of Business Administration. This internship report is an important requirement for getting the Master of Business Administration Degree from the UVIVERSITY OF GUJRAT. We have to submit this report in 3rd semester after completing our internship in summer holidays.

As I am also the student of Master in Business Administration in University of GUJRAT so I have also completed my six weeks internship from Muslim Commercial Bank Limited, Gujranwala branch During the period of my internship I worked in various departments of the bank. I expect that this internship report will give you the true picture of my practices which I have done in my intership.

PURPOSE:

The purpose to do internship report was to explore the learning of my practical field. The main purposes are:

To know the banking operations.

To improve the report writing skills.

To gain the experience that will be helpful for me in the future.

To apply the best methodology procedure.

To know what sort of changes IT brings in managerial activities.

Scope

This course of internship will help the students to increase their knowledge regarding the working of banking sector of Pakistan because most of the teachers during their lectures especially about finance use the examples of bank like Muslim Commercial Bank Limited, National Bank of Pakistan, United Bank Ltd., Bank Alfalah and many other banks. Therefore, the students can enhance their understanding about the business world, grasp the functioning of economy and make the decision about future as an internee in MCB Bank Ltd. The main focus of my study research was on general banking procedures in one of the branches of MCB. These operations include remittances, deposits and foreign exchange.

OBJECTIVE OF STUDYING THE ORGANIZATION

OBJECTIVES:

The object of this report shows my effort of learning in organization which are as:

As I am interested in Finance so my purpose of studying the organization is to get practical experience in financial system and operation of the bank.

I wanted to get the knowledge about the working of the banking sector.

I wanted to improve my own skills in this sector and professional approach.

I was interested to study different departments of the branch like cash, foreign remittance and online transfer etc.

I wanted to compare the system of account of the bank with the company accounts.

I wanted to study the financial system and achievements of the bank.

I had interest to observe its function, duties, system and their effects on whole financial system of the country.

My aim was to analyze this bank with reference to other banks listed on stock exchange.

My objective was also to view the Finance & Accounting System.

I had keen interest to observe the behaviors of people on professional level.

I wanted to make the analysis of banks with reference to the industries.

And to give the recommendation for improvement of the Finance & Accounting System.

To learn the changing environment.

I hope that this report will be a true representative of my efforts and will satisfy you and help me in achieving the purpose, which I was meant.

5.2 Overview of the Organization

5.2.1. History of Muslim Commercial Bank limited

MCB Bank Limited also known as Muslim Commercial Bank Limited was incorporated by the Adam Jee Group on July 9, 1947 in Calcutta in Bengal, under the Indian Companies Act, VII of 1913 as a limited company. But due to partition of Indo- Pak subcontinent, the certificate of incorporation was issued on 17 August, 1948 with a delay of almost 1 year. The certificate was issued in Chittagong. Then the Head office of the company was established at Dacca and Mr. G. M. Adam jee became the first chairman. Its authorized capital was Rs15 million. In August 23, 1956 through a special Resolution bank transferred its Head Office from Dhaka to Karachi. The purpose of establishing of bank was to provide banking facilities to the business community of South Asia.

In January 1974, the government of Zulfiqar Ali Bhutto nationalized the Muslim Commercial Bank Limited according to the Banks Nationalization Act 1974. In June, 1974 Premier Bank Limited also merged with Muslim Commercial Bank.

In the late 1990s Pakistanis government felt need for privatization of state owned banks and companies. In April 1991, Muslim Commercial Bank was privatized by Nawaz Sharifs government. It was 1st Pakistani bank which was privatized. It was purchased by a leading industrialist of Pakistan, Nishat Group. Government sold 26% shares of the Bank of which 25% capital was paid up to general public. According to the agreement between the Pakistanis government and the Nishat Group additional 24% shares were purchased by the group making their holding 50%. From June 2008, the Nishat Group owns majority shares of the Muslim Commercial Bank. Only 25% shares were retained by the government of Pakistan. Now it is a fully privatized bank.

Mian Muhammad Mansha is the Chairman of Muslim Commercial Bank. He has played an important role in success of Muslim Commercial Bank. In reward of Mr. Manshas efforts, the Government of Pakistan has given him "Sitara-e-Imtiaz" which is one of the most prestigious civil awards of the Pakistan.

Muslim Commercial Bank is fourth largest bank of Pakistan having assets of US$ 6.7 billion. It is the largest by market capitalization having a market capitalization of US$ 4.1 billion. The Bank has approximately 4 million customers. It has network of 1026 branches in all over the country in which eight branches are Islamic banking branches and over 300 are ATMs.

Muslim Commercial Bank has the following subsidiaries:

Adam jee Insurance Company.

First Woman Bank Limited

Vision Statement

To be leading financial services provider, partnering with our customers for a more prosperous 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.

5.2.2. Nature of Muslim Commercial Bank Limited

Muslim Commercial Bank Limited is one of the fourth largest banks of Pakistan with a deposit of Rs.368 Billion and its total assets are more than Rs.500 Billion. It was Incorporated in 1947 and it soon earned the reputation of a solid and conservative financial institution. In 1974, Muslim Commercial Bank was also nationalized along with all other private banks. The Bank has approximately 4 million customers, a nationwide distribution network of more than 1000 branches and over 450 ATMs in the market.During the last fifteen years, the Bank has grown rapidly through improving service quality, investment in technology and people, utilizing its extensive branch network, and developing a large and stable deposit base.

Now it is a public limited corporation. It provides financial services to its customers i.e. deposits, loan, online transfer, foreign remittances, currency exchange, leasing of cars, collection of bills, dividends and interest, ATMs, debit and credit cards etc.

System:

Since October 24, 2002, Muslim Commercial Bank has been using System Access SYMBOL version 8 to run its business operations. Muslim Commercial Bank is running SYMBOLS as eFinance modules to deliver personalized services to its customers on multiple delivery channels. While SYMBOLS Enterprise Operations Center is serving as its core banking transaction processing engine.

By implementing SYMBOLS, the aim of Muslim Commercial Bank is to raise the quality of its customer service and utilize its time to offer new product in the market for its three core banking businesses Corporate banking, Commercial banking and Consumer Banking. By adopting the Java-based technology provides an additional advantage for easy integration of legacy systems.

SYMBOLS application architecture is based upon the customer relationship management foundation that facilitates customer knowledge, interaction, relationship development and better management of risk for the customer. System Access is also providing implementation, training and support to the employees of Muslim Commercial Bank.

Functions of Muslim Commercial Bank:

Basically two types of functions are performed by the Muslim Commercial Bank. These functions are as follows

Principle Functions

Auxiliary Functions

1. Principle Functions:

Principles functions are the core functions are the core functions of MCB Bank. These functions are the lifeblood of the MCB Bank. These functions are:

a. Accepting the deposits

b. Financing

a. Deposits

There are two types of deposits in MCB Bank. These are as follows:

1. Demand Deposits

Demand deposits have no any legal restriction on drawing of deposited amount. The cash is readily available on demand without any condition. Demand deposits are further divided into categories.

Current deposits

Current deposits are non- interest bearing deposits. These deposits earn the most of the bank income because does not pay any interest on them.

Saving deposits

These are the interest bearing deposits. There is no any legal restriction on it. It is mostly preferred by saving and salaried class.

2. Time deposits:

Time deposits are for specified period of time. Amount can not be easily withdrawn on demand. If the amount is withdrawn before time, person has to pay certain penalty. Time deposits are further divided into categories as

Notice time deposits

These deposits can not be withdrawn before time without any notice.

Fixed Term Deposits

Amount deposited in financial institution for a fixed period of time are called fixed term deposits. These are for short period of time ranging from a month to few years.

b. Financing

The second core function of Muslim Commercial Bank is to provide finances to the individual especially to the businessmen against securities at fixed rate of interest. Like different types of accounts for accepting deposits, Muslim Commercial Bank also provides loans to its customers in the different types of accounts. These are

1. Demand Finances:

Demand finances are given on demand. It is a single transaction and can be for long, medium and short period of time. Interest is also charged on it. The amount can only be withdrawn once at the time of reimbursement.

2. Running Finance

It is a short term loan up to one year. Amount can be withdrawn and deposited at any time. As the name shows it is basically for running day to day business activities. This type of loan is given to the businessman who has strong relationship with the bank.

3. Cash Finance

It is for a limited period of time. It is provided to the businessman to complete the working process.

4. Fixed Assets Financing

This type of finance is advanced to the business for the purchase of fixed asset. This asset is considered as security.

5. Overdraft

This type of loan is advanced to the businessman who has very healthy position. He is allowed to draw up to the limit if he has no balance in his account and the interest is charged on daily basis.

2. Auxiliary Functions:

The functions that have secondary position in the bank are called auxiliary functions. Bank demands extra charges for performing these functions. These functions are as fellows

Collection of cheques

Muslim Commercial Bank makes collection and payments of cheques, promissory notes and bills on behalf of customers. Muslim Commercial Bank charges commission for providing these services.

Locker

Muslim Commercial Bank also provides locker facility to its customer where they can keep their precious ornaments and documents.

Collection of Dividends

Muslim Commercial Bank acts as an agent for acts customers in collection of dividends or interest earned on stocks and shares held by them. Customers only inform the issuer of securities that interest should be credited to their accounts in the bank.

Purchase and sale of securities

Customers also give authority to the bank for purchase and sale of securities on their behalf.

Transfer of Funds

Muslim Commercial Bank also transfers funds of the customers to its other branches in the same city or any other cities. If the transfer is within one station then the bank does not charge any commission.

Issue of Traveler Cheques

Muslim Commercial Bank also issues Rupee Traveler Cheques for the convenience of travelers and in reward of performing these services it charges commission at the low rate.

Discounting Bill of Exchange

Muslim Commercial Bank also utilizes its surplus funds in another important way by discounting bill of exchange at market worth. The bank pays an amount to the holder of bill equal to their face value after deduction of interest at the market rate.

Acts as a referee

Muslim Commercial Bank also provides another useful service to its customers by acting as a referee. The information is supplied in secrecy. Its basics are on the respectability and financial standing of credit.

5.2.3. Business Volume of Muslim Commercial Bank

As the Muslim Commercial Bank limited is the fourth largest bank of the Pakistan. It has a solid foundation of more than 50 years in Pakistan. It has network of over 1000 branches in which over 850 are Automated Branches, over 350 MCB ATMs in 41 cities nationwide and more than12 branches are on the MNET ATM Switch. So its profitability is high and it has large assets.

Rewards and success:

Best Domestic Bank Award 2000

Muslim Commercial Bank was awarded the Euromoney Award 2000 for the

"Best Domestic Bank in Pakistan".

Best Bank in Pakistan Award 2001

In 2001, Muslim Commercial Bank was again awarded the Euromoney Award 2001 for the "Best Bank in Pakistan" for the 2nd time.

Best Bank in Pakistan Award 2003

Due to the quality services, integrity, good customer relationship and meeting the changing trends Muslim Commercial Bank has again won the Euromoney Award 2003 for the "Best Bank in Pakistan" for the 3rd time.

Best Bank in Pakistan Award 2004

In a continuous winning streak, Muslim Commercial Bank again is proud of winning the Euromoney Award 2004 for being the "Best Bank in Pakistan" for the fourth time in the last five years.

The Best Domestic Commercial Bank Award 2004

Muslim Commercial Bank has a distinction of winning the esteemed Asia Money 2004 Award for being "The Best Domestic Commercial Bank in Pakistan".

Best Bank In Pakistan Award 2005

Muslim Commercial Bank has again received the prestigious Euromoney Award for the Best bank in Pakistan for its excellence operations. It is honor for the Muslim Commercial Bank that it has received the Euromoney Award for Excellence for the 5th time in the last six years.

Asia Money Awards 2005

The Muslim Commercial Bank Limited has got distinction that Asia Money once again declared Asia Money Award 2005 to the Muslim Commercial Bank as "The Best Domestic Commercial Bank in Pakistan" for the year 2005.

Best Bank in Pakistan Award 2006

For his excellence operations, the Muslim Commercial Bank has again received the esteemed Euro money Award for the Best Bank in Pakistan. It is the only bank that has received the Euro money Award for Excellence for the 6th time in the past seven years.

Euro money Award 2008:

In 2008, Muslim Commercial Bank has been awarded as Euro money Award 2008 for the "Best Bank in Asia" for the 7th time. It is pride of the Muslim Commercial Bank that no other bank in Pakistan has received such honor.

The Strongest Bank 2010 Award:

In 2010, Muslim Commercial Bank received the The Strongest Bank 2010 Award by The Asian Banker for being Pakistans best-performing financial institution.

The Qatar Financial Centre Asian Banker Leadership Achievement Award 2010:

President and Chief Executive Officer of the Muslim Commercial Bank, Atif Bajwa, has been awarded The Qatar Financial Centre Asian Banker Leadership Achievement Award 2010

Year 2012:

The Asset Triple ABest Domestic Bank - Pakistan

Euro moneyBest Bank in Pakistan

NFEHCSR Business Excellence Award Best Media Coverage

ICAP and ICMAP2nd Best Corporate Report Award 2011- Banking Sector

World FinanceBest Commercial Bank - Pakistan

Pakistan Centre for PhilanthropyPCP Corporate Philanthropy Award

Year 2011:

CFA Association PakistanMost Stable Bank of the Year

CFA Association PakistanBest Bank of the Year

Euro moneyBest Bank in Pakistan

ICAP / ICMAP1st - BCR Award 2010 - Banking Sector

SAFAJoint 2nd Runner-up for BCR 2010

PACRA MAINTAINS ENTITY RATINGS OF MCB BANK LIMITED

The Pakistan Credit Rating Agency (PACRA) has maintained the long-term entity ratings of Muslim Commercial Bank Limited at AA+ (Double A Plus) and its short term entity ratings as A1+ (A One Plus). These ratings denote a very low expectation of credit risk because of a very strong capacity for payment of financial commitments at time.

These ratings also reflect the MCBs strong risk absorption capacity due to sound capital structure supplemented by consistently robust performance. The bank is in well position to sustain its competitive edge in the sector owing to its quality management team, established franchise and extensive outreach equipped with requisite technology infrastructure. These ratings recognize the banks prudence in aligning its business strategy with challenging and changing operating environment.

5.2.4. Products and Services of Muslim Commercial Bank

Muslim Commercial Bank Limited provides a variety of products and services to its customers. The most important are as follow:

Personal Banking

Personal banking provides two services: Deposits Accounts and Loan Products.

1. Deposits Accounts:

Basic Banking Account

A simple way to start banking

It is very simple account to start banking with the Muslim Commercial Bank. It can be opened with minimum amount of Rs.1000.Amount can be withdrawn twice in a month without any charge. It does not require maintenance charges.

Current Account

Race ahead

It is a non interest bearing bank account offered by the Muslim Commercial Bank. It requires low minimum balance to maintain it. It offers unlimited cash deposits and withdrawal facility without any charges.

Saving Account

A habit worth getting into it

Muslim Commercial Banks saving account is an interest bearing account. It requires low monthly average balance. The bank offers profit after every six months. It provides unlimited deposits and withdrawal facility.

Foreign Currency Account

Your international account, locally

It provides interest on foreign currency investment either in US Dollar, UK Pound Sterling or Euro. It provides rate of return at market rate after every six months. It can be opened with US$ 500.

Smart Dollar Account

Makes dollar and sense

This account offers a useful way to grow US Dollar deposits across USD Current, Savings and Term Deposit accounts. It offers interest and if balance is above US$ 10000 it also provides incentives.

Saving 365 Gold

Higher tiers, higher profit

Important feature of this account is that higher the balance, higher the rate. Profit on this account is paid every month and is calculated on daily basis. It can be opened with Rs.500000/-.

Special Rupee Term

Better return over time

This account offers interest to the holder. The customer can open this account for one or more term according to his needs.

Business account

Bring down cost over your way up

The important feature of this account is Higher the balance, the higher the number of free transactions. It provides the free services of Demand Draft, Pay Order, Cancellation of DD, PO, Cheque book and International ATM Gold Card if the balance is above Rs,100000/-.

Savings XTRA

Enjoy the fruit of higher growth

This account offers interest semiannually and interest is calculated after every month. It provides 50% discount on locker. This account offers that if higher the balance then higher will be the interest rate.

Current Life Account

Live for today. Be covered for tomorrow.

The Muslim Commercial Banks Current Life offers the customers free comprehensive life insurance coverage in a current account. It requires low average balance.

2. Loan Products:

MCB Business Sarmaya

MCB Business Sarmaya is the best Running Finance facility for residential property which empowers the customer to manage his business dealings better. It provides facility to improve business with absolute satisfaction of cash flows.

Term Loans

Muslim Commercial Bank provides the term loans to individuals or businesses. An individual can gain and benefit this service through MCB Consumer Banking.

Working Capital Loans

Based on the customer's needs, Muslim Commercial Bank offers a number of different working capital finances including Running Finance, Cash Finance, Export Refinance, Pre-shipment and Post- shipment etc. Tailor- made solutions are developed to analyze the unique requirements of business.

MCB Car 4u

Muslim Commercial Banks Car 4 U facility offers breeze to lease a new or used car. In it financing tenure is from 1 to 7 years. It also provides option for local or imported car. It requires 20% minimum down payment.

MCB Ghar Pyara Ghar

MCB Pyara Ghar is an ideal Home Finance Scheme from own bank that allows to purchase, renovate or construct own home as the way people have always wanted.

MCB Rupee Traveler's Cheques

Muslim Commercial Banks Rupee Traveler's Cheques were first introduced in 1993 as asafe cash for the convenience of customers during traveling. It is very popular and mostly preferred over cash by customers while traveling.

Corporate Banking

Cash Management Services

Transaction Banking provides wide range of value added services to large corporations. Through its vast network of real-time online branches Muslim Commercial Bank provides cash management services, supported by real time MIS.The basic products offered are as under

Collections

Payments

Channel Financing

Local Rupee Drawing Arrangement

Home Remittances

Investment Banking

Investment Banking of Muslim Commercial Bank has played a dynamic role in the local market of Pakistan through its innovative structured solutions for its customers. It is regarded as one of the leading investment banking house in the country. Investment banking products and services are

Project and structured Finance

Syndicated Loans and debt capital markets

Quasi equity and hybrid instruments

Equity capital raising

Advisory services

Facility administration commercial banking

Online Services

MCB ATM Services

With more than 850 automated branches and 450 MCB ATMs in 41 cities nationwide, Muslim Commercial Bank is positioned at the fourth largest bank in Pakistan. This success has been possible because of a never-ending drive to achieve higher levels of excellence in performance.

MCB Mobile Banking

MCB Mobile Banking is a quick, easy and secure way to conduct financial transactions as mobile phone balances, transfer money, pay bills and do so much more.

View Mini Statements (last 6 transactions)

Transfer funds to any Muslim Commercial Bank account

Pay Utility Bill

Pay MCB Visa Credit Card Bills

Recharge MCB Visa Prepaid cards

Pay mobile post paid bills

Top up prepaid mobile phones

Make donations to charities

Block their ATM Card for the day

MCB Call Center

MCB Call Centre provide comfort to customers at home or office or wherever they happen to be. It offers basic banking services for customers convenience, eliminating the need for them to make unwanted trips to customers branch.

MCB Smart Card

Muslim Commercial Bank provides MCB Smart Card as a secure and convenient instrument of payment with unmatched functionalities. It provides 24-hour direct access to customer bank account. It not only helps customer to manage his expenses, but also eliminates undue interest on his day to day credit card transactions.

MCB Debit Card

Muslim Commercial Bank Limited also provides a secure, convenient and quick payment facility that enables customer to do purchasing by using debit card.

MCB Visa Platinum

Muslim Commercial Banks Visa Platinum Credit Card is the most reliable and competitive Credit Card offering luxurious shopping, dining and traveling opportunities. It is accepted in about 29 million locations in more than 150 countries around the world and over 30,000 establishments in Pakistan.

MCB Visa

MCB Visa is not just another card in wallet. It not only provides the conventional credit card services in the manner that is superior in comparison, but goes an extra mile.

MCB Bill Payments

MCB easy bill payment offers convenience to pay utility and mobile phone bills or recharge prepaid mobile phone accounts anywhere, anytime with security and peace of mind. It offers 3 convenient options of making bill payments to PTCL, SSGC, SNGPL, KESC, Mobilink, Supernet, IESCO, HESCO, and Ufone to save precious time by avoiding long queues. It offers the following features:

Payment of bills 24 hours a day 7 days a week.

Make either full or partial payments. Full payment is required for PTCL only.

Recharge pre-paid account for Ufone, Mobilink and Zong as per their fixed slabs.

Virtual Banking:

The MCB Virtual Internet Banking offers customers the

convenience to manage and control their banking and finance e.g. when he needs to, where he needs to. With MCB Virtual Internet Banking customer can access any of the banking services, 24 hours a day, 7 days a week and throughout the year with free of cost and online.

Islamic Banking

Deposit Schemes

For customers who are looking for a deposit

opportunity where they can grow their funds

and earns Halal returns on it. In Islamic Banking

Muslim Commercial Bank offers the following products:

Al-Makhraj Saving Account

Al-Makhraj Ianat Account

Al-Makhraj Term Deposit

Fund Based Facilities

Ijarah Products

MCBs Islamic Ijarah is based on the Ijarah WaIqtina concept which means the sale of the asset to the lessee after the Ijarah is matured. Under this scheme, Muslim Commercial Bank Limited becomes 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 rent.

Types of Ijarah

Car Ijarah

Equipment Ijarah

UPCOMMING PRODUCTS:

Diminishing Musharika Housing

Istisna Pre Shipment Export Finance

Islamic Banking Foreign Currency Deposit

5.2.5 PESTL analysis

Political analysis

Due to political instability, governments of Pakistan are changing rapidly. Every government sets its own rules, regulation and policies. These can be against or favor of banking sector of Pakistan.

Pakistan is also becoming a common place for territory acts so now it is one of the most vulnerable countries in the world. This situation is a threat and is effecting the growth and working of Muslim Commercial Bank in Pakistan.

Economic analysis:

Economy of Pakistan is facing financial crisis so some people are not able to repay their liabilities. Due to financial crisis there are less opportunities of starting any business so businessmen are not demanding much loan.

There is strong black economy in Pakistan.

There is unfair competition in the financial market.

Due to inflation money is losing its value. So it is affecting the interest rate.

Exchange rate is also decreasing day by day.

Recent flood, unemployment, illiteracy and corruption etc. are also hindering its growth.

Social analysis:

Cultural issues are also affecting the working of Muslim Commercial Bank. People have their own values, norms and beliefs. Some people do not consider interest according to Islamic laws. But now Islamic Banking offered by the Muslim Commercial Bank Limited is attracting them.

Technological analysis:

Technology is rapidly changing. There is competition among banking sector to introduce new technology in their products and services in order to attract new customers. So according to the requirements of market Muslim Commercial Bank has centralized its system. Most of the branches of the Muslim Commercial Bank are online. It is also introducing a wide network of ATMs in all over the Pakistan.

5.2.6 Contribution of MCB Bank towards economic development:

Muslim Commercial Bank is Pakistans fourth largest bank by assets having assets of US$ 5.9 billion, and the largest by market capital with market capital of US$ 1.8 billion. In 2009, MCB reported a profit after tax of PKR 15.5 billion.

During the last fifteen years, the Muslim Commercial Bank has concentrated on growth by improving service quality, investing in technology and people, utilizing its extensive branch network, developing a large and stable deposit base, and managing its non-performing loans through improved risk management processes.

The main strategy of Muslim Commercial Bank is to provide financial solutions to its customer. So it has developed separate business groups to ensure a more focused approach in satisfying the diversified customer segments. The Bank has also established an Islamic Banking unit to offer products and services according to Shariah. So it has set up Islamic banking branches in six cities. The future plan of MCB Bank is to further increase the capacity of Islamic Financial Systems and to bring Shariah compliant network parallel to current retail network of traditional banking. So MCB is providing equal services to all people in the country.

Muslim Commercial Bank has business establishments in SriLanka and Bahrain including newly established Rep.Office in Dubai, UAE to enhance the money market. Thus it is strengthening Pakistans economy. The Bank has also formed a private company in Hong Kong which is fully owned subsidiary of MCB in partnership with Standard Chartered Bank for handling trade transactions of selected countries in the Asia-Pacific region. Muslim Commercial Bank is also setting performance standards for the support of its customers and leadership in banking technology.

It is also important to look at the recently held bidding for the sale of United Bank Limited (UBL). Muslim Commercial Bank has submitted the highest bid. MCB has already attained the status of the largest private sector bank in Pakistan and now it is trying to make its presence felt in the global market. MCBs shares are traded on three stock exchanges of Pakistan. Its global depositary receipts are listed in the London Stock Exchange. All these achievements show that Muslim Commercial Bank has played an important role in development of the Pakistan. So the Advisory Council of the Asian Banker Leadership Achievement Awards Program appreciated the role played by Muslim Commercial Bank in developing systems and in bringing innovations through the launch of new products and services.

5.3 ORGANIZATIONAL STRUCTURE of MCB Bank:

5.3.1 Organizational Hierarchy Chart:

(General ManagerRegional ManagerChief ManagerBranch ManagerOperation ManagerOfficers)

5.3.2 Numbers of employees of MCB Bank:

Numbers of employees in Muslim Commercial Bank Limited are approximately 31500.

5.3.3 Main Offices:

Main offices of Muslim Commercial Bank are

Registered Office

It is the registered office and head office of Muslim Commercial Bank. It is located in Islamabad.

Principal Office

Principle office of Muslim Commercial Bank was first located in Karachi. Now it has transferred in Lahore.

Registrar's and Share Registration Office

Share registration office of Muslim Commercial Bank is in Karachi.

Provincial Head Quarters

Provincial headquarters of Muslim Commercial Bank are in every province. These are as Punjab Office, Sindh Office, Baluchistan Office and NWFP Office.

(Branch Offices) (Circle Offices)

5.3.4 Introduction of Departments of MCB Bank:

At the top level management, following are the main department of Muslim Commercial Bank Limited.

1. Audit department

Audit department of Muslim commercial bank limited consists of 5 members and one chairman. Mr Tariq Rafi is the chairman of this committee. The meetings of audit committee are held once a quarter before the approval of interim and final result of the bank. The board of directors has set up an effective internal audit functions. The personnels of audit department are highly qualified and are involved in internal audit on full time basis. This department has given a satisfactory rating under the Quality Control Review Program of The Institute of Chartered Accountants of Pakistan.

2. Human Resource Management DepartmentHuman Resource Department (HRD) facilitates and partners the MCB Staffin the implementation of the planned strategy by adopting a Can Do Attitude. Mian Muhammad Mansha is the chairman of this department. The HRD contributes to the business strategy of MCB Bank through:

Competency based Human Resource systems

Its effective policy and procedures

Developing the Capabilities

Performance of Management

Open communication

Giving the rewards and recognition

Employees satisfaction

Diversity among employees

Compliance

3. Islamic banking

Islamic banking department was formed on 1st January, 2003. This department has sufficient expertise, necessary infrastructure, information technology and manpower to run Islamic banking operations. It offers Islamic banking products like Al-Makhraj Saving Account, Al-Makhraj Ianat Account, Al-Makhraj Term Deposit etc. This committee consists of senior executives from various important departments like credit and risk management, finance, treasury, operation etc. The objective of this department is to attract the customers who do not believe on the interest accounts.

4. Risk Management & Portfolio Review Department

Mr. Shehzad Saleem is the chairman of this department. System of this department identifies, measures, monitors and manages the risk effectively. Risk can be credit risk, operational and market. Following are its functions:

Identify, measure, monitor and mitigate the risk.

Ensuring that business conducted is consistent with risk appetite of bank

Formulate and implement risk policies and procedure.

To conduct periodic review to ensure that risk is within acceptable parameter

5.Physical Planning, IT System & Contingency Arrangements Department:

Mr Sarmad Amin is the chairman of this department. It includes 5 members. This department is introduced new information technology. System of Muslim Commercial Bank has become centralized. Bank is using SYMBOL system software. Now this department is converting its branches into online. It is offering products like MCB ATM Services, MCB Mobile Banking, MCB Call Center, MCB Smart Card, MCB Bill Payments etc.

6.Business Strategy & Development Department:

Mian Muhammad Mansha is the chairman of this department. This department includes 7 members. This department reviews existing policies and practices in effect at Muslim Commercial Bank Ltd. It offers proposal for alterations to the existing policies in light of the previous findings and getting approval of MCBs board of directors. Departments of branches will be discussed in the Part 2.

Part-2

5.4 Internee Work

5.4.1 Brief Introduction of Branch

I did my internship in Muslim Commercial Bank Limited Qila didar singh branch, Gujranwala. And some important information about my branch which I observed, are as below.

Employees of the branch

There are 11 employees in the branch in which there are two security guards, one sweeper, one tea boy and remaining are the members of management.

Manager of the branch Mr. Ashiq Ali

Operation Manager Mr. Arslan

Chief Cashier Mr. Shah

Cashier Mr. Frasat

Foreign Remittance Officer Miss Nazia

Customer Service Officer Miss Afsheen Arif

Cheque clearing Officer Mr. Raja

Credit and Advance Officer Mr. Faizan

There are other some other employees in the branch.

Code of the branch is (1474)

Starting Date of Internship

July, 10, 2013

Ending Date of Internship

August, 19, 2013.

5.4.2 Detail of Supervisor

During my internship In Muslim Commercial Bank Railway Road branch, my supervisor was Miss Afsheen Arif. She is a Customer Service Officer in the branch. She is very punctual and responsible. Her behavior with internees was friendly. She was more cooperative with the internees than other employees of the bank. She always completes her work in time without any delay and mistake. Being a customer service officer, she treats the customer politely to even those customers who talk in ill manner and show a very rude behavior. I am very impressed of her way of working. She taught me workplace ethics and how to behave professionally.

Her jobs are

To open account of customer. i.e. current account, PLS saving account, foreign exchange account, special rupee term account etc.

Help the customers in filling cheques, deposit slips, application for ATM Card, cancellation of ATM card, Requisites for issuance of new cheque book, online transfer form, demand draft, pay order, any other form which is required by the customer to solve his problem.

Telling the customers about their bank account balance.

Issue of bank statement at the requirement of customer which may be annually, semi annually, monthly etc.

providing any other information which is required by the customer.

Here most of the work is manual documentation.

5.4.3 Weekly Timetable

In my branch of Muslim Commercial Bank Limited working hours for internees were from 9:00 a.m. to 2:00 p.m. in all working days of the week except Friday. On Friday working hours of internee were from 9:00 a.m. to 2:00 p.m. in all working days of the week except Friday. On Friday working hours of internees were from 9:00 a.m. to 12:30 p.m.

During internship period, my weekly timetable was as follows:

Week

Date

Working Activity

1st week

10th July to 16th July

Account Opening, types of account

2nd week

16th July to 22 July

Types of Account

3rd week

22 July to 29 July

Deposit, Transfer and Withdrawals

4th week

29 July to 5th Aug

Remittance Department

5th week

5th Aug to 12 Aug

Clearing Department

6th week

12 Aug to 19 Aug

Credit Department

5.4.4 Introduction of departments of Branch

In Railway Road branch of Muslim Commercial Bank, there are following departments.

1. General Banking Department

2. Deposits Department

3. Cash department

4. Foreign Exchange Department

5. Advances and Credit Department

1. General Banking Department

General banking department deals with following services.

a. REMITTANCE

In remittance funds can be transferred in other branches of Muslim Commercial Bank or in other banks. Main functions of remittance are payments of fees of different organizations, fulfillment of tenders and collection of funds. Remittances are the maximum part of general banking department. General banking department issues the following remittances.

Pay Order

Demand Draft

Mail Transfer

Telegraphic Transfer

Payment of Pay Order and Demand Draft

Cancellation of Pay Order and Demand Draft

Vouchers

b. Inward Clearing

It depends upon those cheques that are cleared within branch and with in the city. As the concerned branch receives any type of clearing cheque first of all its physical checking is taken place. Clearing procedure requires two days margin. These Cheques have their vouchers. The amount of the Cheques and voucher

should be identical. Then these Cheques are stamped and noted on receiving and also feed in the computerized system.

c. Outward Clearing

It depends upon those cheques that are cleared out side the city. For outward

clearing cheques are sent to the branch in which drawer has his account.

d. Issuance of cheque Book

Any person who has opened the account can credit his account and for this purpose a Cheques book is issued so that he can be able to credit the needed amount whenever he needs.

e. Issuance of ATM Cards

Head office of Muslim Commercial Bank Limited issues ATM (Auto Teller Machine) cards with their PIN (Personal Identification Number) codes. So when the customer demands for his ATM card then the branch in which customer has his account issues to him. Then it is activated by the number provided on the card.

f. Cancellation of ATM Card

Bank can also cancel the ATM Card. Cancellation is necessary in the following cases:

If card is folded, damaged or stolen.

PIN code is missed or forgotten by customer.

Card is captured by the machine and expired.

Or If it is requested by the customer.

2. Deposits department

Muslim Commercial Bank deals in money. Deposits department of Muslim Commercial Bank borrows money from one person and advances department lends it to another. The difference between the rate of borrowing and lending is their profit. The deposits are liability of the bank. Muslim Commercial Bank offers two types of deposits

1) Time deposits 2) Demand deposits

The MCB Bank has different kinds of deposit schemes in order to attract deposits. These schemes are the mixture of the above mentioned two types of deposits with an addition of different services & requirements. Muslim Commercial Bank has a large variety of deposit schemes and some of them are as follows:

Current account

PLS Saving account

Basic Bank account

Foreign Currency account

Smart Dollar account

Saving 365 Gold account

Special Rupee Term account

Business account

Saving XTRA account

Current Life account

3. Cash Department

Cash department cashes the cheques, receives the amount of deposits and collects the utility bills, fees of any organization etc.

Following books are maintained by the Cash Department.1. Receiving Cash Book 2. Paying Cash Book3. Token Book4. Scroll Book5. Cash Balance Book

At the end of the day the consolidated figures of receipt and payment of cash are entered in the cash balance book and closing balance of cash is drawn.This is the most important department because cash is a liquid asset and mostly frauds are made in this department. So extra care is taken in this department and nobody is allowed to enter or leave this area freely. The cash area is grilled and its door is under supervision of the head of that department. All the books which are maintained in the cash department are checked by an officer.4. Foreign Exchange Department

Foreign exchange department deals with foreign exchange account, import and export transactions, Letter of Credit, foreign remittances etc . Foreign exchange department issues Letter of Credit to the importer in order to facilitate it in its business transactions outside the country. It also helps exporter in collection of receipts.

a. LCs establishment

Any company can provide its documents including bill of lading, short shipment notice in case of short shipment, packaging list etc. The information provided from the documents are recorded in the LC establishment section of foreign exchange department. So it helps in import of goods.

b. Retirement of LC

This department helps in collection of receipts. When the transactions is completed then documents are sent to the home bank for the payment of the LC. These transactions are recorded in the payment section.

c. Foreign Currency Deposits

The Foreign Currency Deposit are related to the foreign currency accounts, cash deposit or credit and foreign remittances.

d. Foreign Remittance

This department also receives foreign remittances for individuals or businessmen. The PIN Code is given by the respective company through which it is sent.

5. Advance and credit department

This department deals with the approval of different kinds of loans for different individuals and business. The loans are advanced against some securities such as bonds, properties and any other type of asset which is equally valuable or more than the asset. Every branch has its own limit, if the amount of loans is with in the limit of that specified branch then it is being approved by the branch but if the amount of loan is more than limit then it is necessary to get its approval by the head office. Credit can be given by two modes.

A Funding Facility 1) Running finance2) Cash finance3) Demand finance4) Payment against documents5) Finance against imported merchandise6) Finance against trust receipt7) Export finance8) Foreign bill purchased 9) Others Non Funding Facility

1) Letter of credit

2) Letter of guarantees3) Bid bonds4) Performance bonds5) Other facilities

5.4.5. Activities performed

During my internship in the Muslim Commercial Bank Ltd, Railway Road branch I did not much enjoyed working with the staff due to lack of cooperation of staff. I wanted to get the experience of operations of banks in a limited time of 6 weeks. So I would be able to widen my vision and enhance my knowledge about banking sector and its working. Although it was almost impossible to work in all the departments of the branch within that limited time but on my request, my supervisor, Miss Afsheen Arif, provided me the opportunity to work in the different departments for the sake of practical knowledge. I feel highly indebted to work in the branch because I learnt a lot in that branch.During my internship training in the Muslim Commercial Bank as I have already mentioned that I have worked in different departments. I spent a lot of time in general banking department and a very little time in foreign exchange department and for clearing. I worked on different seats and at those seats following functions are performed.

Opening a new account

During the span of my internship in MCB Bank I learned and observed about the opening of an account. Basically I think that the opening of an account is the establishment of a contractual relationship between the bank and its customer. By opening an account in the bank such person becomes the customer of a bank. Further I am going to note down the basic requirements and steps involved in the opening of an account.

Investigation:Before opening an account in Muslim Commercial Bank limited like the other banks of Pakistan also ascertain whether the person who is going to open the account is a desirable customer or not. For this purpose Muslim Commercial Bank determines the prospective customers integrity, respectability, occupation and the nature of business by the introductory references given at the time of account opening. After the banking system of MCB has become centralized, bank also gets verisys from NADRA for verification either person is Pakistani and is not objected by Pakistanis government. Negligence in this formal preliminary investigation may cause in serious consequences not only for the bank directly but also for other bankers and the general public who may be affected by it indirectly. In order to further strengthen and streamline the account opening process, the Federal Ombudsman of Pakistan, widening his rules on complaint No. II/31/5186 has directed the banks to retain with the account opening form a Photostat copy of National Identity Cards of the person desiring to open an account as well as that of the person who is giving the reference of that person. According to these directions, the branch manager obtains the original National Identity Cards along with their Photostat copies and then returns the original card after attesting the authenticity of the retained copy.

How to open an accountBefore opening an account in MCB I observed that the following points must be considered.

i. Another account holder in the same branch of the bank should properly introduce the new customer.

ii. The account holder must sign the account opening form in the presence of bank officer and the signatures are duly verified by National Identity card.

iii. Customer has also choice to change his signature from NIC. Signatures are also obtained on signature specimen card. Customer has to keep the same sign for withdrawal of money. Otherwise cheque will not be honored.

iv. A copy of identity Card is required by Bank which is attested by original NIC.

v. Some other documents must be provided according the requirement of each type of account. The Bank has the right to refuse to open and account without assigning any reason.

vi. Bank also requires verification from NADRA. In case of any objection bank has the right to refuse to open the account.

vii. Bank also fills the Know Your Customer form to determine the risk of person.

viii. Bank also requires the document which describes source of income from money will be deposited in the account.

ix. Each account is allotted a distinct number that is to be quoted in all correspondence with the bank relation to the account.

x. Minimum amount for opening an account is required according to the nature of account.

xi. In case of partnership account, partnership deed must be attached.

xii. In case of companies, memorandum and article of association, certificate of incorporation, certificates for commencement of business, list of directors, their CNIC, board resolution for opening of account must be obtained from the customer.

xiii. Accounts of Trusts, Executors & Administrators can be opened but for it the prior approval of the Head Office is required.

Procedure for opening an account

According to my practice in MCB, when a person wants to open the account, the bank officer gives him an application form. All information, which are necessary to be known by the bank, are the requirements of the application form. Other essential documents which are required by the banker are attached by the customer the after the sign of branch manager it is sent to the head office where account opening procedure is completed, account number is assigned and cheque book is also issued. Basically following information are required on the account opening Formby the MCB.

Title of Account.

Full name of applicant.

Occupation.

Address written on the NIC.

Telephone No.

Currency of account.

Nature of Business.

Introducers Name, Address & Signatures

Special instructions regarding the account.

Initial Amount of the Deposit.

Signature of the applicant on signature specimen.

Depositing in the account

Different customers come in the branch. Some are educated who fill their own deposit slip and some are illiterate to whom we help to fill the slip. Deposits slip are filled for depositing amount in the account. Following information are provided on the slip.

Branch code

Account title

Account number

Currency i.e. US Dollar, Euro, PKR etc.

Type of account e.g. current account, saving account.

Total amount which is to be deposited in figures and words.

Signature of depositor.

This slip is deposited in the cash department along with the amount, where it is stamped and transferred into the customer account.

Online Transfer

MCB Bank has given the facility to the customers to transfer the amount to any person who has the account in any other branch of the MCB Bank. For this purpose person has to provide the following information to the customer service officer.

Applicants name

His account number if he has.

National Identity Card number

Beneficiarys name

Beneficiarys account number

Branch code

Total amount in numbers and figures which is to be transferred.

Type of currency to be transferred.

Purpose of transfer.

Signatures of applicant.

If applicant has his account in the branch the CNIC is not required and walk in customer form is not filled.

If applicant wants to transfer amount in cash then he submit the form to the cash department where it is stamped and a copy is given to the applicant for evidence. Then data is transferred to the system. If applicant wants to transfer through credit then he gets its verification from the operation manager and submits it to the foreign exchange department.

Pay Order

A pay order is a written authorization for payment made in a receipt form issued and payable by the bank. Pay orders are made for the payment of fee, tender or issued for payments of the dealings. These are necessary for the proof of payments made between the bank and the customer for the beneficiary. These are noted in printed block letters and serial numbers are issued from the computerized system.

Form for pay order is filled by the customer service officer and all those information are provided which are mentioned in the online transfer form. Then it is deposited to the remittance department.

Demand Draft

Demand draft is a written order drawn by a branch of a bank upon the branch of same bank or any other bank to pay certain amount of money to or to the order of specified person. DD is made for the beneficiary for payments of funds. Thumb expression is not acceptable on DD. Its application form is also filled by the customer service officer and all those information are provided which are mentioned in the form. Then it is submitted to the officer who deals in remittance. The DD application is scrutinized by the counter clerk for the following points.

for the payment of DD there should be branch.

full name of payer should be mentioned

amount in words and figures must be same

application to be signed by the purchaser

He prepares the demand draft and feeds the data in the computer system. A serial number is issued from the computer system to the demand draft.

Issuance of ATM Card

Usually an option is given in the account opening form whether customer wants to get ATM card or not. Customer can also demand for new ATM card if previous has expired. Head office issues ATM cards with their PIN (Personal Identification Number) codes. Its issuance process starts from consultancy of customer with the customer service officer. When the customer claims for his ATM card it is checked from the list that is also issued by the head office and the claim is also checked from the list. If the name is found in the list then the cards are issued by taking a signature and PIN code is given to the customer by taking signature. Then AT M card is activated by the number provided at or with the specific card.

Cancellation of ATM Card

ATM Card can be cancelled at the request of customer. ATM Cards can be cancelled due to the following conditions:

If folded or damaged

Stolen

PIN code missed or forgotten

Card captured by the machine and expired

If requested by the customer.

For cancellation customer can apply to the customer service officer.

Besides the above functions, following activities are also performed.

Accountholders annually, semiannually, monthly statement.

Telling the accountholders about their balance

Provision of any information required by the customers.

Utility Bills Collection

This job is performed in the Cash Department. This department collects the utility bills on behalf of WAPDA, Sui Gas Companies, and Pakistan Telecommunication Corporation Ltd. Receiving officer puts the stamp on the utility bills Paid and date of payment. He signs the utility bills. Then a list is made on the form which is called Bills scroll form. One copy of the scroll is kept by bank for evidence and the original copy with the receipt of the bills is sent to the billing department of that corporation. The bank charge commission for this job.

Cheque HonoringIn the clearing department where cheques of all banks of the city are collected and the receipts and payment of cheques drawn on each other are settled. Cheques are collected for three purposes.

For Cash payments

For transfer from one account to another account

For Clearing

1. Cash Payment Cheques

Cash payment cheques are treated in the Cash department. Cheques which are presented on counter must be checked asDate.

Signature of Drawer through computerized system.

Whether Bearer has cancelled or not.Match the amounts in figure and words both.

When all above conditions are fulfilled then following is made in the token register.

Number of token

Number of cheque.

Amount on cheque

And ParticularsThen cheque is stamped with cash payment and stamp for token.

2. Cheque for Transfer

Cheques which are presented for transfer are treated by the officer who deals in remittances. When these cheques are given for transfer then three stamps three stamps are put on it.

Crossing stamp

Transfer stamp

Bank Manager Stamp

Then this cheque is debited from the drawer account and amount is transferred in the drawee account through computerized system.

3. Cheque for clearance

Cheques which are presented by any other bank for clearance are treated in the clearing department. Two types of clearing takes place.

Intercity clearing

Intracity clearing

When cheques are received for clearing then two stamps are put on each cheque: Crossing stamp and manager stamp. Then following information are recorded in the clearing register.

Name of party.

Name of bank on whom it is drawn.

Branch name and code.

Number of cheque

Amount of the cheque.

And date.

Then cheques are sent to NIFT after calculating their total amount along with total number of instruments. A summary is also prepared on a sheet and it is sealed with the cheques.

Foreign Remittance

Foreign remittances are dealt in the foreign exchange department. Bank has made contract with some companies which transfer the remittances from one country to another country. Each company has its own code which may consist of numbers, alphabets and alphanumeric. One code which is given to one customer is not repeated for another customer. Foreign exchange department require the CNIC and code. This code is entered into the computer system along

with the company name. Then print of slip is obtained which is signed by the customer. Copy of NIC is attached with it and it is attested ant stamped by the officer. This is deposited in the cash department and money is received by the customer.

5.4.7 Summary

A brief summary of my learning during internship is given below under the following headings:

5.4.7.1 Skills and Qualifications

This internship period was a training session for me and training always brings learning for the person. So I also have learned many skills and qualifications during my internship. In the bank internees were not allowed to on the computer. But I had seen my supervisor working on the computer. Then I came to know how computer is used in all fields whether it is a banking sector, business or any hospital. I learned how data is entered and processed in the computer system.

During internship period I have also improved my interpersonal skills. I feel that now I am better able to communicate with others. It has enhanced my confidence level. Now I can better deal the customers and coworkers in good manner than before. In addition to the professional level, I communicate my ideas more clearly with my class-fellows. My listening skill has also improved because during my internship I had to deal some customers who behaved in ill manner and talked rudely. In such situation I had to show patience and treat them very politely.

During this period I also learned the workplace ethics and increased my moral values. It has brought behavioral changes. I learned how to behave professionally.

This training has widened my vision about banking sector. Before training my perception about bank was that it is a place for accepting deposits and advancing loans in order to earn profit. But practically I observed the broader services which the banks are providing and facilitating the individuals specially the businessmen in order to carry on their day to day activities.

5.4.7.2 Undertaken Responsibilities

During my internship period I helped my supervisor in customer dealing and manual documentation. As she is the customer service officer, she provides guidance to the customers within bank premises. She provides all the information which are required by the customers. She receives the calls of customers, informs them about their bank balance and remittances, gives solution about their problems and arranges meeting of customers or any party with the manager or any other employee. So I under took all the responsibilities which assist her in her job.

I helped the customers in filling of account opening form, application form for ATM Card, cheques, deposit slips, cheque requisition slip, online transfer form, walk in customer form, foreign remittances form etc. As the internees were not allowed to work on database so I performed manual work.

5.4.7.3 Influence on future career plans

As during the internship period in the bank I gained the practical experience first time in any organization so it has also influenced my future career plans. First of all I have analyzed the job opportunities in the market. It has created awareness about competition in the labor market. Because when I went for internship, I saw the number of candidates which were more than the capacity that the bank had. Some were on reference. I considered the same situation in the labor market where the supply of labor is more than the demand.

I have also mentally prepared myself for the requirement of market about abilities. I decided what kinds of skills I need to secure myself in the future market. As all the operations in the bank and other organizations are performed with the help of computer and information technology so I think necessary computer literacy and skills should be learned in order to grab the market opportunities.

Now a days due to high competition job selection process has also become complicated and difficult. Sometime a person who has specialization in one field has to work for any other job. So I am trying to adapt myself according to the requirements of market.

5.4.7.4 Correlation of internship activities with classroom knowledge

The knowledge which we obtain in the classroom is theoretical. Any special practical is not performed. In the countries like Pakistan we have no access to the financial markets. So when we did practical, it was different from class work. But the basic concepts are same. The debit and credit rules and basics which we have studied in the market are applied in all the organizations. But the difference comes from the practical experience.

6. Conclusion

6.1 Key Conclusion from experience

Internship experience can be learning platform if it is provided properly. Internee can improve his technical, human and conceptual skills through it. He can analyze the practical implication of his bookish knowledge. He can learn how to be professional while performing business activities. It widened the vision of the internee. But for this purpose it is necessary that the management of the organization should be cooperative. All the candidates who deserve it should be provided opportunities not only those who are on reference.

When I was working in the bank, I have observed some positive points and some problems. The key conclusion is

In the bank every one was committed with his work.

It is an online branch in which computerized system is used. So it requires less manual documentation.

The branch exists in the location which is easily accessible to every one and near to the business area.

Sometime branch is offline. This irritates the customers.

Branch has little space for sitting the customers. Some customers have to stand during the rush hours.

There is office politics in the branch.

As the literacy rate in Pakistan is low and mainly the forms are in English. So most of the customers have to face difficulty while filling the form. They do not understand the terms and conditions written on the form so they only sign it where the employee of the bank says.

Internees are not cooperated properly. The behavior of employees with internees is irritating. They are treated as the internees have come only for time passing not for learning. Some employees also pass the comments on the female internees.

Sometime customers also behave with the internees in ill manner.

6.2. Overview of Banking Sector in Pakistan

History of Pakistani banking sector starts since the independence of Pakistan on August 14, 1947. Its journey starts from the establishment of SBP on July 1, 1948 because central bank provides support and monitor the banking sector.

During 1950s and 1960s banking sector got expansion due to the development projects and an active participation of private sector. In 1974, banks operating in Pakistan got nationalized and came under the direct control of the Government of Pakistan. Nationalized banks showed the poor performance due to Govt. protection and lack of competition in the banking sector. During 1990s some banks were again privatized. According to the constitutions of 1965, 1962 and 1973 the Govt. of Pakistan is required to eliminate interest based transactions from the country. Similarly, in 1992 the Supreme Court of Pakistan also ordered to stop interest based transactions from the country.

The inception of 21st century came with Islamic banking practices across the country to facilitate the different segments of the economy. State Bank of Pakistan developed comprehensive criteria in 2001 and registered Meezan Bank as the first Islamic bank in 2002. Islamic banking practices in Pakistan proved very successful due to growth and expansion of the banking sector.

The banking sector in Pakistan has been able to withstand discrepancies from weakening macroeconomic fundamentals since 2007. Although banks are facing credit risk but the overall sector is in well place to withstand modest shocks because they build their inventory of government securities. Annual Report on the working of the Bank for the year 2009-10 (FY10) mentions that due to emerging dynamics in the macro-financial environment, the SBP has rationalized

the minimum capital requirement and its implementation schedule from commercial banks. This will provide breathing space to the banking sector in this difficult macroeconomic environment.

6.3 SWOT analysis

Strengths

MCB Bank provides a variety of services to its customers.

Management of MCB Bank is efficient and experienced.

Bank has efficient Information Technology infrastructure.

The word MUSLIM in brand name of Muslim Commercial Bank creates a very good image.

MCB Bank is one of the five big domestic commercial banks.

It has large network of online branches all over the Pakistan.

Culture of MCB Bank is strong and employees are professional and committed to their work.

Bank is continuously focusing on developing a new and innovative product line in order to attract new customers.

MCB Bank creates a strong customer relationship.

Asset utilization in MCB Bank is good.

It has the largest ATMs network in Pakistan.

The launch of MCB Bank switch enables other banks to use MCBs ATM network.

Weaknesses

Job satisfaction of employees is low.

Customers are facing a problem of NADRA verification while opening their accounts. It is a long and time consuming process.

Equal protocol is not given to all customers. Customer having account with small amount is not treated same as other who has high account.

Employees are not loyal with the bank.

Employees are promoted on seniority basis.

Attitude of senior managers at Head Office is not good towards junior staff.

Most of employees in MCB are young. So they remain in search of more job opportunities.

There is also office politics among the employees of the bank.

Most of the employees are sticking to only one seat. So they become master of one particular job and loose their grip on other banking operations.

Opportunities

Muslim Commercial Bank can create a global market.

Islamic Banking in country is increasing its Islamic operation.

Innovative products like car financing, home financing, credit cards etc. can increase its market share.

Introduction of Islamic Banking can attract large number of people.

Free staff training can increase employees productivity.

Profitability of bank can be increased through strong internal control.

Opening of new branches in rural areas can increase its branch network and gain more profit.

MCB Bank can earn more profit by giving loan to farmers and industrialists at low rate.

Threats

Current economic crisis are effecting the operations of bank.

Political instability is decreasing its efficiency.

There is strong competition with domestic banks and money market.

Foreign banks have high marketing budget than domestic banks.

People are loosing their interest on bank.

Foreign banks are also in local market that is affecting its market share.

Growth in NPLs industry can hurt MCB Bank also.

Merger and acquisition activities in banking sector also badly affecting the MCB Bank.

Switching of employees to the jobs which are offering more salaries is increasing employees turnover.

Due to inflation, cost of doing business is increasing day by day.

7. RECOMMENDATIONS

If we study the financial statements of MCB Bank we come to know that it is making progress by leaps and bounds. During the last few years its profit has grown considerably. It is introducing new products and services in order to compete in the market. It is converting more of its branches into online. Deposits of USLIM Commercial Bank are growing day by day. State Bank of Pakistan is responsible for the productive performance of the Bank. So we can conclude that its future will be prosperous as present.Following are my suggestions to improve the efficiency for the development of the economy.

As the elite class of Pakistan is spending larger portion of their income is wasting in purchase of luxuries. The people can be motivated to save money by offering the deposit through various investment schemes and high interest rate than the competitors offer.

High salaries and incentives should be provided in order to maintain confidence and loyalty of the employees.

Employees should not stick to one job only. They should have regular job experience on all out look towards banking.

Refresher courses for the staff are important to improve the productivity of employees specially the foreign experts. All the employees should have these courses according to their requirements.

Every year some employees should be sent for training to developed countries and employees from there should be brought here.

Reading material like reports issued by SBP, Stock Exchanges or any other regulatory body should be provided in order to educate the employees with the advance studies in their field.

Seminars and lecture about banking sectors should be arranged and employees should be provided the opportunities to attend and participate in them.

All customers, whether they have account with small balance or with large balance, should be treated equally.

Recruitments should be strictly on merit basis not on reference and induction should be after proper and extensive training of new employees.

More foreign branches should be opened with new technology and heavy capital in order to capture the international market and to earn international repute for the banking sector and economy of Pakistan.

Workplace environment, equipments, furniture and staff dressing should be according to the modern banking style.

Office politics should be eliminated.

Bank should adopt the global organizational banking structure in order to meet the international standards of banking sector.

REFERENCE:

Quresh, A. H., Hussain, Z., & Rehman, K. U. (n.d.). A Comparison between Islamic Banking and Conventional Banking Sector in Pakistan. Retrieved from http://ifrnd.org/IMBR/Vol%204/4(4)%20Apr%202012/6.pdf

Sharmin, K. (2012). A CORELATIONAL STUDY ON AUTOMATED SERVICE QUALITY AND ITS RELATIONSHIP BETWEEN CLIENT SATISFACTION AND GENERAL BANKING IN CONTEXT OF BANK ASIA LIMITED. Retrieved from http://dir.iub.edu.bd:8081/handle/123456789/124

Sneath, W., & Pierce, A. (n.d.). Faculty & Staff Undergraduate Internship Guidebook. Policy, 14, 15.

Usman, M. (n.d.). The Effect of Ownership on Organizational Performance. Retrieved from http://btu.se/fou/cuppsats.nsf/all/286b1e07bd882742c12577a400664aa5/$file/Final_Thesis_Muhammad_Usman.doc

Ijaz, D., Naseem, M. A., & Iqbal, J. (2012). IMPACT OF PRIVATIZATION ON NON-PERFORMING LOANS OF CONVENTIONAL COMMERCIAL BANKS IN PAKISTAN. Retrieved from http://www.savap.org.pk/journals/ARInt./Vol.3(1)/2012(3.1-38).pdf

http://www.mcb.com.pk/ir/MCB%20A-Report2007.pdf

Head Quarter Karachi

Provisional Head quarter

Punjab offices

Sindh Office

NWFP Office

Baluchistan Office

(4) MBA(FINANCE)