MCB INTERNSHIP REPORT

Internship Report

It is the requirement of the BBA(hons) course Islamia university of Bahwalpur that all students of BBA have to spent Six to Eight Weeks in any organization to get practical exposure and to get familiarized with the ways to live in the organizational environment which is dramatically different from the educational environment. That six weeks period called “Internship Period “, if spent properly and sincerely, enables the students to be more confident, more knowledgeable, more responsible and, above all, more committed to its work in the practical field. I have also been assigned to do internship of six weeks period in MCB Mian Channu City main Branch.

It has enabled me to understand the practical scenario and sharpen our decision making power and utilizing the resources in an effective manner, so that our resources generate maximum profit.

In preparing this report, I have put all of my best efforts and tried my level best to give maximum knowledge. Despite of my all the coherent efforts, I do believe that there will always be a room for improvement in the efforts of learner like me.

Yasir Ayaz

Department Of management Sciencies Page | 1

Preface

Executive Summary

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MCB has been playing a splendid role in banking industry of Pakistan.

Formed since 1947 and passed through nationalization and privatization

modes, now bank is in hand of Mian Mansha’s group which is one of

powerful and strong business group. MCB is performing in very good

position since 10 year and winning best domestic bank awards and

especially have been rewarded a sitra-e-imtiaz Pakistan very honorable

and precious award. MCB is currently dealing through number of

different departments, account opening department where different type

of accounts are available with different products and there are specified

procedures to open, operate and close the account. Cash department is

very responsibly dealing with cash withdrawals, deposit, cash online and

cash in hand. Accounts department is working to monitor the branch

expenses, to keep record of them and makes balance sheet, profit &

loss account to report manager. Remittance department is on the job to

facilitate customer where DD, pay order and FDD are made and posted.

Credit department is working to provide loans to needy entity where

personal, commercial and Industrial loans are extended after evaluating

the entity, their need and security through pre specified procedure.

Agriculture loan is also given to farmer in different products, which are

categories in Farm and Non Farm based. MCB is very much

concentrating on changing world and introduced some remarkable

services for the convenience of customer in which Virtual Banking,

Mobile Banking and SMS Banking are included where customer can

enjoy number of features like fund transfer, bill payment, mobile

recharge and statement of account also can post standing order to


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payment and many more without going to bank, just by using internet

and your handheld device. MCB also providing debit and credit card to

their customer which is acceptable in large network of MCB and n other

bank ATM’s and at different spots. Calculated ratios show the some

financial aspect of MCB and pinpoints that should be considered. MCB

Mian Channu branch’s SWOT analysis shows statements under the

heads of strengths, weaknesses, Opportunities and Threats that should

be consider for the betterment of branch. As a student intern I performed

duties under supervision of bank officers in which includes account

opening, cheque book issuance, slips filling etc. during this period I have

also learned many moral and working skills. In last I have reported some

suggestions to improve the branch performance for fruitful results.

DEFINITION OF BANK


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The term 'bank' is being used for a long time, yet it has no precise definition. The basic reason is that the commercial banks perform not just one but many types of functions. The term bank has been defined differently by different authors. Some are as follows:

According to Crowther,

"Bank is a dealer in debts—his own and of other people."

According to G.W. Gilbert,

"A banker is a dealer in capital or more properly a dealer in money. He is an intermediate party between the borrower and the lender. He borrows from one party and lends to another."

According To Bamkinh Companies Ordinance

U/s3 (B) of Banking Companies Ordinance 1962 "Banker means person transacting the business of accepting for the purpose of lending or investment, of deposits of money from the public, repayable on demand or otherwise and withdraw able by cheque, draft, order or otherwise and

includes any Post Office Savings Bank."


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Evolution of BankingIt has not so far been decided as to how the word ‘Bank’ originated. The explanation of this origin is attributed to the fact that the Jews in Lombardy transacted the business of money exchange on branches in the market place and when the business failed, the people destroyed the Bank. Incidentally, the word ‘bankrupt’ is said to have been evolved from this practice. The opponents of this opinion argue that it was so, then how is that the Italian moneychangers were never called ‘Banchierei’ in the Middle Ages?

Other authorities hold the opinion that the word ‘Bank’ is derived from the German word back which means joined stock fund. Then ‘Back’ was Italianize into ‘Bank’.

Early GrowthBanking in fact is as primitive as human society for ever since man came to realize the importance of money as a medium of exchange. Perhaps it was the Babylonians who developed banking system as early as 2000 B.C. It is evident that the Temples of Babylon were used as ‘Banks’ because of the prevalent respect and confidence in the clergy.

King Hammurabi (1728 – 1686 B.C), the founder of the Babylonian empire, drew up accede where in he laid down standard rules of procedure for banking operations by temples and great landlords. He got his code inscribed on the block of diorite about 8 feet tall, containing about 150 paragraphs which deals with nearly all aspects of loans, interest, pledges, guarantees, natural accidents, loss, theft etc. Later on Sumerians, Babylonians, Hittites and Assyrians standardized the values of the goods in silver, copper and bronze.


History of Banking

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It is not certain as to who invented money but history recess that king of Lydia castled electrum ingots of identical shapes and of uniform weights with a triple emblem engraved on it as an official guarantee of value in 687 B.C. In 1401 a German public bank was framed comprising the operations of discounting and transferring of money. By the 16th century, some more public banks were formed in Venice, Milan, Amsterdam, Hamburg and Nuremburg. In order to streamline Banking organizations and techniques, conferences were held in Nuremburg from 1548 to 1551 and it was agreed that the commercial interest of the time needed a bank with facilities of growth and transfer but it should not be a bank run by private individuals. Ultimately in 1587, a State Bank under the name of banco DI rialto was formed in Genoa. Later the bank of Amsterdam was also formed in 1609. This Bank had a guarantee by the State and rendered valuable services to the Netherlands traders up to the year 1795.

Similarly in 1690, the Bank of Hamburg came into existence in Hamburg with the business of accepting deposits of fine silver or of foreign money and to run accounts on these deposits. This Bank rendered great service to the merchants as well as countries it dealt with until 1873, when it was merged with the Reich bank. By the year 1700, the bank of England was not only issuing notes but also conducting accounts for customers. Its directors were conducting the business like that of limited companies. The bank had the monopoly of issuing banking notes. Up to 1813 or there about in England, the main profit of bank was derived from the circulation of notes.

Development of Modern BankingIn 1918 came into being eleven clearing banks of today. The effect of this historical development of banking in England has been fairly wide. First, emergence of a small number of large banks with wide network of branches. Second, increase in the popularity of bank accounts and a large-scale use of cheques.


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In 1946, the labor government nationalized the bank of England and transferred the existing stock to the nominee of British treasury. In 1955, the British Banks made a departure from traditional banking by undertaking hire-purchase finance for companies buying industrial plants and machinery and took interest on hire-purchase finance.

Banking In PakistanAt the time of independence, there were 631 offices of scheduled banks in Pakistan, of which 487 were located in West Pakistan alone. As a new country without resources it was very difficult for Pakistan to run its own banking system immediately. Therefore, the expert committee recommended that the Reserve Bank of India should continue to function in Pakistan until 30th September 1948, so that problems of time and demand liability, coinage currencies, exchange etc. be settled between India and Pakistan. The non-Muslims started transferring their funds and accounts to India. By the end of June 1948 the number of officers of scheduled banks in Pakistan declined from 631 to 225. There were 19 foreign banks with the status of small branch offices that were engaged solely in export of crop from Pakistan, while there were only two Pakistani institutions, Habib Bank of Pakistan and the Australasia Bank. The customers of the bank are not satisfied with the uncertain condition of banking. Similarly the Reserve Bank of India was not in the favor of Govt. of Pakistan. The Govt. of Pakistan decided to establish a full-fledge central bank. Consequently the Governor-general of Pakistan Quaid-I-Azam inaugurated the State Bank of Pakistan on July 1, 1948. Thus a landmark was made in the history of banking when the state bank of Pakistan assumed full control of banking and currency in Pakistan.

The banking structure in Pakistan comprises of the following types.

1) State Bank of Pakistan.


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2) Commercial Bank of Pakistan.

3) Saving banks.

4) Co-operative banks

5) Specialized credit institutions.Up to December 31, 1973, there were 14 Pakistan commercial banks that functioned all over the country and in some foreign countries through a network of branches. All these commercial banks were nationalized in January 1, 1974, and were recognized and merged into the following five banks:

1) National Bank of Pakistan

2) Muslim commercial bank limited

3) Habib Bank Limited

4) United Bank Limited5) Allied Bank of Pakistan

The state bank of Pakistan is the Central bank of the country and was established on July 1, 1948.The separation of East Pakistan and its repercussion in the form of economic depression has caused a lot of difficulties to the banking system in Pakistan. The network of bank branches now covers a very large segment of national economy. The numbers of branches have increased appreciably and there is now on branch of bank for every 3000 heads of population approximately. There is done reasonable growth in deposits from the establishment of Pakistan. Besides this growth, specialized credit and financial institutions have also developed over the years.

The Government of Pakistan in the late 90’s introducing the need for the privatization of state owned banks and companies. The private sector has accepted the challenge and most of the banks are privatized today. The State Bank of Pakistan issues the shares of these periodically.


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Bank employees and other common peoples can also purchase these shares and earn profit.


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MCB History & Current Position

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MCB Bank Limited formerly known as Muslim Commercial Bank Limited

was incorporated by the Adamjee Group on July 9, 1947, under the

Indian Companies Act, VII of 1913 as a limited company. The bank was

established with a view to provide banking facilities to the business

community of the South Asia. The bank was nationalized in 1974 during

the government of Zulfikar Ali Bhutto subsequently in June 1974 Premier

Bank Limited merged with MCB. This was the first bank to be privatized

in 1991 and a consortium of Pakistani corporate groups led by Nishat

Group purchased the bank. As of June 2008, the Nishat Group owns a

majority stake in the bank.

Founded in 1948, Nishat Group is one of the leading and most

diversified business groups in Pakistan. The group has strong presence

in the most important business sectors of the country such as banking,

textile, cement and insurance.

Mian Mohammad Mansha is the Chairman of the group (and also MCB)

and has played instrumental role in its success. In recognition of Mr.

Mansha’s contribution, the Government of Pakistan has conferred him

with "Sitara-e-Imtiaz", one of the most prestigious civil awards of the

country.

MCB Current Position:

Singapore18th April, 2010 – At an impressive ceremony held in

Singapore, President and CEO MCB Bank Atif Bajwa was awarded “The

Qatar Financial Centre (QFC) Asian Banker Leadership Achievement


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Award 2010” for Pakistan. MCB Bank was also the recipient of “The

Strongest Bank” award for being Pakistan’s best-performing financial

institution. The Advisory Council of the Asian Banker Leadership

Achievement Awards Programme recognized the role played by MCB in

developing systems and in driving innovation through the launch of new

products and services such as the ability for its customers to make

payments using mobile phones.

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

368 Billion and total assets of over Rs 500 Billion. The Bank has a

customer base of approximately 4 million, a nationwide distribution

network of over 1,100 branches and over 450 ATMs. Based on its robust

financial performance, healthy capitalization, high quality assets, and the

country’s lowest cost deposit franchise, MCB is ranked as one of the

best banks in the region. The bank has also successfully attracted

partnerships, in the form of an equity tie-up with Maybank, Malaysia’s

largest financial institution. Moreover it is Pakistan’s 1st organization to

be listed on the London Stock Exchange.


Vision Statement

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“To be the leading financial services provider,

partnering with our customers for a more

prosperous and secure future”


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“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”


Mission Statement

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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.


MCB Values

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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


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Corporate Profile

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Chairman

Mian Mohammad Mansha

Vice Chairman

Mr. S. M. Muneer

Audit Committee

Mr. Tariq Rafi

Human Resources Committee

Mian Mohammad Mansha


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Risk Management & Portfolio Review Committee

Mr. Shahzad Saleem Director

Business Strategy & Development Committee

MianMohammadMansha Director

Chief Financial Officer

Mr.Salman Zafar Siddiqi Director

External Auditors

KPMG Taseer Hadi & Co.(Chartered Accountants)


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Description Share

holding

Perc

entage

Directors, CEO and children 52,190,877 7.5518

Associated Companies 57,009,034 8.2490

NIT & ICP 5,835 0.0008

Banks, DFI & NBFI 2,239,307 0.3240

Insurance Companies 46,052,057 6.6635

Modarabas & Mutual Funds 7,208,703 1.0431

Public Sector Cos. & Corp. 131,749,731 19.0636

General Public (Local) 101,843,819 14.7364

General Public (Foreign) 2,400,126 0.3473

Others 44,237,663 6.4010

Foreign Companies 246,167,375 35.6194

Company Total 691,104,527 100.00


Shareholders Details

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Awards & Accolades:

President and CEO MCB Bank Atif Bajwa was awarded “The Qatar

Financial Centre (QFC) Asian Banker Leadership Achievement Award

2010” for Pakistan. MCB Bank was also the recipient of “The Strongest

Bank” award for being Pakistan’s best-performing financial institution.

Euromoney Awards:

Best Bank in Asia Award 2008

Best Bank in Pakistan Award 2006





Best Domestic Bank Award 2000

Asia Money Awards:

The Best Domestic Commercial Bank Award 2004

The Best Domestic Commercial Bank Award 2005


MCB Achievements

Structure of MCB

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(Contd…)


PRESIDENT AND CEO

EXECUTIVE DIRECTOR

INT DIV

EXECUTIVE DIRECTOR

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(Contd…)


CONSUMER BANKING GROUP

CORPORATE BANKING GROUP

GENERAL MANAGER

REGIONAL MANAGER

CHIEF MANAGER

MANAGER

Structure of MCB main branch mian channu 0482

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Manager

Operational manger

Accountant

Officers

Cashier

Messenger

Guard

MANAGEMENT OF THE BRANCH

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Branch Manager Doger Aamir Hussain

Operational Manager Muhammad Imran

Accountant Fozan ul Qamer

Credit Manager Imran Arshad

Forex Manager Ayesha Zafar

Chief Cashier Khursheed Ahmed

Cashier Muhammad Usman

Billing Cashier Miss Farwa Asif


Account Opening Department

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To open an account the customer have to meet the general banking

manager with an introducer (the person who is going go introduce that

person in the bank) and get an application form used for account

opening. Along with the form a card for specimen signature is also

supplied to customer. Manager has every right not to accept this contract

if he is not satisfied by the details provided by the customer. In case the

contract is acceptable to both, now it is ready to open the account

formally.

Procedure

The procedure begins with the punching of account opening form to the

customer file i.e. customer’s master file. 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 no’s 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. Checking officer is responsible to Tele the

manual application form with the computerized a/c opening file. For

fixed deposit only that application form is needed this is prepared

manually, because most of the procedure of fixed deposit is done

manually. The signature specimen card contains three signatures of an

applicant, applicant a/c no, a/c type, branch code, title of a/c, it will be

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

when he receives the amount.


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Account Types

Though in theory there many types of accounts but commonly account

operators can be classified in one of the following categories, each have

different documentation requirements:

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.

In case of illiterate person or shaky sing, two recent passport size

photographs of the new account holder besides taking his right and left

thumb impression on the specimen signature card.

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


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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 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 director 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.


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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. 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 director 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.

Cheque book issuance procedure:

First cheque book is given on letter of thanks issued by bank. Letter of

thanks is issued against account new opened account. Bank print two

letter of thank one is attached to account opening form and one is

dispatched to new accountholder. After receiving dispatched letter of

thanks customer comes to bank to receive new cheque book.

Following procedure is required to obtain cheque book:

First cheque book requisition slip is filled that slip contains

information of,

Account title & number


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No of leafed cheque book required (25, 50, 100) each leaf is

Rs.6.

Information of other person if accountholder allowed any person

to take cheque book and signature

Two signature of accountholder

Note: Each cheque book contains a white color page which is necessary

to obtain next cheque book to accountholder.

Next cheque book is obtained by following the procedure,

Cheque book requisition slip is filled

White page from previous cheque book is attached

If customer lost their white page of previous cheque book then

application is required from customer of lost of cheque book slip

and attached with requisition slip.

Posted by bank officer in computer

Cheque book is given to accountholder and signature of

receiver is taken on receiving register. If cheque book is being

received by any other person permitted by accountholder CNIC

copy is attached of that person.

Closing of an account:

There are some conditions under any of them account can be closed or

blocked.

On court orders


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In case of death of accountholder (kinship rights cannot be used till

death certificate is submitted to bank).

If customer signed any term and conditions and does not meet

them.

In case of customer own will

Above mentioned in first three conditions no filing is required from

customer, but in case of customer own will there are some requirement

from customer procedure and documents are as follows:

Application from customer to close the account

Account close form

Signature specimen card

Returned worn out cheque book is attached

Customer will have to pay 250 charges to close the account

Statement of account last month

Note: to close the account it is necessary that account should in active

position, if not so first it needs to be active (dormant to active).

Dormant account/ procedure to active:

Dormant account means when customer does not make any transaction

(Dr or Cr) to his/her account. With above mention condition after 6 month

account automatically becomes dormant. To withdraw amount customer

will have to first active the account.


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Following procedure and documents are required:

Dormant application

CNIC copy

NADRA verification

Customer will have to deposit sum of amount

After getting all requirements account has been marked active.

Products:

Basic Banking Account

Current Account

Savings Account

Special Rupee Term

Savings 365 Gold

Business Account

Current Life Account

Foreign Currency Account

Locker Facility:

To avail this facility customer should have account in MCB bank.

Valid national identity card is required

Next of kin ID card

Locker form is being filled

Security charges (refundable) Rs. 2000/-


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Yearly rent Rs.1400 + FED 16% of rent

About Remit Express:

Fastest to Pakistan, anywhere in Pakistan, the fastest way of

getting your money across to Pakistan. Remit express offers low cost

remittance from U. A.E and Saudi Arabia. Your relative’s friends or

business associates receive drafts within 72 hours. MCB remit express

has been specifically designed to meet the needs of the expatriate

Pakistani community residing in the gulf countries.

FEATURES

Easiest and safest way to remit funds, remittance within 24 to 74

hours, personal delivery to the beneficiary, delivery confirmation to the

remitter, message facilities for both parties. Your beneficiary will

receive the amount even if he/she does not have an MCB account.

Procedure to encash amount of remit express:

Pic code is given to bank officer

If amount is available against pin code Beneficiary name will be

asked by bank officer

Sender name will be matched

Amount will be matched

Receiver CNIC is required and copy

Voucher is repaired by bank officer and signed

Customer encash it from cash counter


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Every transaction which takes place recorded in the computer so all

transactions in different departments are forwarded to account

department. Since all vouchers from different departments are forwarded

to current department so this department tallies all such transactions

with current department after maintaining the ledger of each department.

Following are different functions performed by this department:

Preparation of Financial Statements for different time span

Maintain all accounts of different departments

Calculation of profit on different schemes

Calculation of markup on different advances

Preparation Different types of reports for State Bank

Daily position of cash & every accounts

Matching daily summaries of all departments with ledger

The need of remittance is commonly felt in commercial life particularly

and in every day life general. A major function of any banking system is

the transfer of funds from one client or one place to another. By

providing this service to the customer the bank earns a lot of income in

the form of service charges. This department deals with local currency

remittance i.e. remittance from one city to another without actually


Accounts Department

Remittance Department

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carrying the currency. MCB uses following instrument for transferring of

money:

Demand Drafts (DD)

Pay Order (PO)

Online transfer

Rupee traveler cheque(Rtc)

Demand Drafts (DD)

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

customer to other branch of the same bank to pay the certain amount to

the customer. DD are issued for the particular place other than place of

issuance. A draft is a Cheque drawn by a bank on its own branch or any

other branch of another bank at a different place requesting it to pay on

demand a specified amount of money which is already received to the

person named on it. It is used payment is done out of station and it is

garneted by bank once it is made (if it is not cancelled by customer).

Documentation and procedure of clearing of DD:

DD can be obtained by both accountholder and non-accountholder. For

both customers one form with name SF-100 is available which is filled

and proceeds to make a DD that form contains information about

beneficiary, purpose of making DD, customer identity (in case of

accountholder account title and number is written but in case of walking

customer CNIC copy and information as per CNIC is written) and DD

charges Up to 100000: commission 100, postage 75, FED 16,


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withholding tax .3%(in case of cash). More than 100000: commission

(Rs 150 or .1% which ever is higher), postage 75, FED 16, withholding

tax 0.3% (in case of cash).

Note: DD can be on cash or on cheque.

After completing all information and attached requirements original DD is

made and handover to customer with signature of authorized bank

officer. Each DD contains one original instrument and two carbon copies

one for dispatch to branch to whom DD is drawn on and other for record

keeping. As the correspondent branch to whom DD is drawn on receives

the dispatched copy of DD that branch entered DD but do not posts to

any account till the original instrument is presented through clearing.

Pay Order:

Pay order is used when customer wants to payment some one and the

party want secured payment mode. Pay order does not dishonor as

cheque. 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 and procedure of clearing of pay order:

Slip is filled (SF-100) and deposited to concerned officer in case of cash

customer will have to deposit cash first and in case of cheque after

verification of signature customer directly goes to remittance officer.


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Remittance officer check balance in customer account first and then

debited the customer account and make pay order. It will always be

deposited in mentioned person account and if it is deposited in other

than drawer bank it will be cleared in local clearing.

Pay order charges: Rs 75/- for accountholder and Rs 250/- for non-

accountholder (walking customer/ in cash).

Note: no charges from students for payment of fee favoring educational

institution.


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Online Transfer:

When branches were not online for transfer of out station branches of

bank TT (Telegraphy Transfer) were use. In this way message was sent

through FAX or through email. But now its time to be connected via

internet globally and branches are online. Now other branch account can

also be access and can be debited or credited when needed.

Documentation and procedure of clearing of pay order:

First SF-100 been filled. This form contain information about beneficiary

name, account number, branch code, accountholder name, account

number and Two signature of applicant. Online transfer can be through

cheque or by cash. In case of cash online CNIC copy is essential. Online

charges are as follows: Commission 100, FED 16 and in case of cash

online 0.3% if amount is more than Rs. 25,000.

Rupee traveler cheque (Rtc):

Can be a safest way to carry cash

Cheque is accepted at trade centers &

branches

No need to be a/c holder for traveler cheques

Cheque is signed once when issued.

Upon delivering second signed are made


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In cash department both deposits and withdrawals go side by side. This

department maintains the following heads:

Cash online

Cash deposited by customer

Cash received against any utility bill

Cash withdrawal by customer through cheque

At the time of payment against cheque following things are being

checked

Signature & date

Cross cutting

Drawee’s a/c title

Amounts in words & figures

Two signatures at the back


Cash Department

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Clearing is a system by which banks exchange cheques and other

negotiable instruments drawn on each other within a specified area and

thereby securing the payment for its clients through the clearinghouse. A

clearinghouse is a general organization of the banks at a given place, its

main purpose is offsetting the cross obligation in the form of cheques.

When there are many banks in the country each will receive a number of

cheques drawn on other banks, deposited within for collection. A

clearinghouse is an organization where these cheques are brought and

the mutual claims of each bank on the other are offset and a settlement

is made by the payment of differences. The representatives off all the

banks in Pakistan attend office of the bank, which is performing these

duties of clearinghouse, on each business day at a fixed time. They

deliver cheques that their bank may have negotiated and receive in

exchange cheques drawn on their bank negotiated by other bank. The

responsibility of smooth cooperation of the clearing function lies with the

National bank of Pakistan.

The operation of clearing refers to the collection of cheques drawn on

other banks. These cheques may be drawn on UBL, HBL, NBP, or any

other bank of Pakistan. The respective clerk collects all cheques and

enters them in clearing Register. Then he affixes stamps on these

cheques and sorts out cheques of different banks and prepares.

Schedule for them. These cheques are sent to clearing house. National

bank of Pakistan has extended the service of Clearing House. MCB will


Clearing Department

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receive all the cheques drawn by other banks. Finally they exchange

their cheques mutuality. MCB representative will give cheques of UBL,

HBL, ABL, NBP, and SBP to their representatives, and get the cheques

drawn on MCB from this representative.

Further they settle their account. National bank of Pakistan

representative will work out the balances and will settle their account

from their balances with National bank of Pakistan. The amount of the

cheques is credited in the account of depositor on the 2nd or 3rd day. If

the cheques are not returned it is under stood that all the cheques are

honored.

Steps in clearing:

Customer deposits instrument. (Cheque, DD, PO, RTC, etc)

There are four available possibilities about instrument.

1. Other Bank intercity cheque.

2. Other bank outside city cheque.

3. Other branch cheque.

4. Branch’s own cheque.


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Treatments:

1. If other bank intercity cheque is deposited by customer in their

account cheque is dealt in local clearing. Cheque is given to

concerned bank and that bank check the status of their own

customer reference to clearing instrument, if the other bank find

everything clear(balance, signature, date) then reports to MCB

to pay against the instrument. MCB then deposit the

instrument’s amount by giving credit to the customer account.

2. If other bank outside city cheque is deposited by customer,

cheque is dealt through OBC (outward bills for clearing).

3. Example: suppose if MCB Mian Channu customer deposits

Alfalah Lahore branch cheque in their account. MCB Mian

Channu branch will send this cheque to MCB Lahore branch so

that the may clear the cheque in Lahore local clearing and

report back to MCB Mian Channu branch. If Alfalah Lahore

clear that cheque then MCB Lahore branch report MCB Mian

Channu by using advice which contains the information about

the cheque and confirmation about the amount is transfer to HO

account you may take the amount from there. As the advice

received by MCB Mian Channu the customer account is

credited.

4. Other branch cheque deposited by customer can be adjusted in

the bank (MCB Mian Channu) in case of online. Because all

information is available online they just check the required

information and make payment or transfer. If cheque is


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amounted above 100,000 then confirmation is required through

email.

5. If customer deposits Branch’s own cheque in their account then

it is treated in local transfer.


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CLEARING PROCESS (FLOW CHART)

Cheque with slip given

Slip is asked & filled

Cheque along with slip checked, signed & received by officer

Entries in daybooks are made

Entries checked & verified by another officer after banking hours by officer

Cheques collected at the day end by Main Branch’s Officials

Cheques are sent to respective banks next day after posting in computer by

Main Branch

The same day not honored cheques are returned to Main Branch

The day after tomorrow the banks are informed about dishonored cheques

Provisional entries for returned cheques are debited again in both computer & daybooks

Party is informed about returned cheques through Phone or personal contact

Cheques are mailed through TCS in case of no personal contact the same day

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MCB divided the advances in to two major types:

Fund Based

Non Fund Based

In the fund base advances, the funds of MCB is involved and in Non

Fund based only guarantee is given by the bank.

Fund Based Loan:

In fund based loan bank actually grant real cash to borrower against any

security.

Non-Fund Base Loan:

In this case bank does not actually handover cash to borrower instead

issues guaranties.

Mcb Pyara Ghar

Owning your dream home has never been

easier. MCB ‘Pyara Ghar’ is the most

sensible option for purchasing, building, or renovating your new/existing

home. It offers you a range of financing options to help you realize your

dreams.

After all ", Apna Ghar Pyara Ghar".


Credit Department

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Cities offering housing finance:

Karachi, Lahore, Faisalabad, Rawalpindi and Islamabad cities are

offering housing finance.

MCB CAR4U

Life in the fast lane can be really slow without a

car. MCB Car 4 U makes it a breeze to finance/lease your new/used car.

So get up to speed, because "Kahin Na Kahin Tau Hai…1 Car 4 You".

Flexible

Option for financing or leasing

Financing tenures from 1 to 7 years

Option for new as well as used cars

Options for local as well as imported cars

Financing upto Rs. 25 lacs

Option for early payment

Option for replacement loan

Minimum 20% down payments

Currently available in the following cities:

Karachi, Lahore, Faisalabad, Rawalpindi, Islamabad, Sialkot,

Gujranwala, Hyderabad.


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Agriculture loan:

Agriculture Sector Financing

MCB is financing agriculture sector since 1973. Due to large branch

network and specialized staff posted in the branches, MCB caters to the

financing requirement of the farming community spread through out the

country and facilitates in achieving increased productivity. MCB has

reinvigorated its agri financing products under the brand name MCB

Green Scheme. The scheme is designed and aimed at meeting all types

of financial needs of agriculture sector covered under extended list of

eligible items. Agri financing facilities are available through out the

country at designated Lending Branches. All types of financing is

available for short, Medium and Long term depending upon farmers

choice and the nature of finance. MCB gives top priority to small &

medium size farmers so that they could be protected from the

exploitation of private money lenders.

Eligibility Criteria

The applicant should be a farmer & includes

tenants/individuals/partnerships and corporate farms engaged in farm or

non farm activities are eligible to avail credit facilities under MCB Green

Scheme. Minimum age limit for individual is eighteen years (18).

The applicant should be able to offer adequate Security acceptable to

the bank. The applicant should not be a defaulter of any other bank and


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must be having a clean CIB report. The farmers should be having an

account with the branch. Ladies are eligible to avail credit facilities as co-

applicant.

Documentation

Documents required will be the following:

Agriculture Credit Application (MF-5).

Appraisal Form (MF-46-Revised).

Report from Credit Information Bureau (CIB) if required.

Borrower Basic Fact Sheet (BBFs).

Valuation of security offered.

Legal Opinion upon security (where applicable).

Attested Copy of CNIC of Borrower.

Copy of Agriculture Pass Book or copies of rural/urban property

documents/Girdawari etc. or any other security acceptable to the

bank

Proof of having leased land in case the farmer is tenant

Security

The intending borrower is advised to visit the nearest MCB Branch for

information. This will enable him to discuss his / her requirements and

have first hand information on every aspect of the process through face

to face interaction.

Bank shall consider only those credit proposals for financing which are

viable. However, as a general rule, bank will always obtain adequate


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security / collateral, in accordance with sound and prudent banking

practices, for agriculture loans / finances, detailed as under.

a) Mortgage of Agriculture land through Pass Book system (Note:

Financial accommodation against security of third party pass book is not

permissible under loans for Agriculture Purpose Act 1973).Or Mortgage

of rural, urban or commercial property Or Pledge of cash collateral,

securities, lien on bank deposit Or Any other tangible collateral security

acceptable to the bank.

Valuation of Properties:

The property offered as security outside the Pass Book will be valued by

bank's approved evaluators. Branch Manger / officer personally visits the

Agriculture land / property before accepting the same as security. The

Market Value / FSV of agriculture land or rural/urban property shall also

be assessed by Branch Manager / AMM / AMO as independent inquiries

to ensure that market price is realistic and not exaggerated. Market

value of Agriculture land may be accepted (calculated by revenue

department) taking three years average "Baiy" of same locality.

Note: agri loan are categories in tow heads and products are also

divided according to these heads.

Farm based

Non Farm based

Farm Credit


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These are the credits provided by the MCB for the purchases of inputs

for development of agriculture sector. Following are two main sub

classes of Farm Credit.

Production Finance

Development Finance

Production Finance:

These are short term loans. These loans are provided to farmers for

purchases of different type of input, for example, Seeds, Fertilizers, and

Pesticides. These loans are provided against personal guarantees or

mortgage of land as a security.

Development Finance:

These are medium or long term loans. These loans are provided for the

development of agriculture sector. Main purpose of these loans is to

purchase instrument:

Tractors

Installation of tube-well

Planting of garden

The loans are disbursed against security of land (mortgage) or any other

security acceptable to bank.

Non Farm Credit:


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Second major form of agriculture advance is Non-Farm Credit. These

loans are provided against mortgage of land as a security or pledge of

equipment as a Collateral security. These are medium or long term

investment depending up the project. These loans are provided to boost

up agriculture sector to provide the sources of earning of foreign

exchange as well as to provide employment to people. Following are the

different types of small industries for which loans are provided to

improve the economy of the country:

Fish Farm

Cattle Farm

Poultry Farm

Dairy Farm

Products are available with different name:

Shadabi Plan

Khushali Scheme

Tractor Finance Scheme

Aabiari Scheme

Dairy and Meat Plan

Murghbani Scheme

Baghbani Scheme

Smart Card / Debit Cards:


MCB Card

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Smartcard is your debit card for cash free convenience. Use it for your

shopping and purchases at a rapidly growing nationwide network of

merchant locations including petrol pumps, stores, bakeries,

departmental stores, jewelers, travel agents, restaurants, chemists,

hospitals etc.

Utility Bill Payment

Make bill payments upto Rs. 20000 per day per card.

Currently available for payment of gas bills of Sui Southern Gas

customers, this facility is being expanded to cover all utility bill payments.

Funds Transfer

Transfer funds between a maximum of 8 pre-registered online accounts

within the growing network of MCB branches across 30 cities.

24 Hours Cash Withdrawals

Balance Inquiry

Mini Statement

MCB Visa Platinum:

MCB Visa Platinum Credit Card is accepted at nearly 29 million locations

in more than 150 countries around the globe and over 30,000

establishments in Pakistan.

MCB Visa Platinum Credit Card members can avail the comfort of CIP

lounges at no cost at all. Just present your MCB Visa Platinum Credit


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Card and relax in the CIP lounge at Karachi, Lahore and Islamabad

International airports.

Access to over 600 airport VIP lounges in over 100 countries and

over 300 cities – so you can treat yourself like a VIP no matter

where you travel, or which airline and class you fly.

Peace and quiet – relax and unwind away from the chaos of the

airport, and enjoy a range of complimentary refreshments.

Full business facilities – most lounges offer phone, fax, email and

internet facilities, some even have conference rooms.

Excellent value for money – three membership plans designed to

offer you VIP airport lounge access at competitive rates no matter

how frequently you travel.


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Virtual Banking:

MCB Virtual Internet Banking offers

you the convenience to manage and control your banking and finances;

when you want and where you want. MCB’s Virtual Internet Banking

facility is:

Simple

Secure

Free of cost

MCB Virtual Internet Banking allows you to access banking services, 24

hours a day, 7 days a week and throughout the year.

MCB offers

Detailed Account Summary of all listed accounts.

Mini-statements of each of the listed accounts showing recent

transaction history for those account(s).

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

period specified.

Immediate or Scheduled Transfer of Funds between your own

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

maintaining accounts with MCB.

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


MCB Virtual, Mobile & Sms Banking

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Payment of utility bills for registered Utility Companies.

Immediate or Scheduled Bill Payments. Scheduling of ‘One-Time’

as well as ‘Recurring’ bill payments. Option for ‘Full’ or ‘Partial’

payment based on the payment conditions specified by a particular

Utility Company.

Bulk Salary Transfer for Corporate Customers, to facilitate them in

paying salary to the corporate employees, who maintain accounts

with MCB.

Cheque Book Request for any of your listed accounts.

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

processing of specified payments and transfers.

Personal Alerts for reminding of pre-specified events and

occasions.

Mobile Recharge facility for all Telco’s!

How can you start:


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Click on the register link on the MCB Virtual Banking page &

complete the application form, suggest your MCB Virtual Internet

Banking User ID choices and click submit.

Visit any MCB ATM, select the option “Service Requests” and on

the next screen select Internet Banking Reg. Wait a while for the

Registration to complete and the appropriate message will be

displayed.

Check your registered email address for the registration

confirmation containing your Virtual Internet Banking Password

and Customer number.

With your Customer Number handy, call the MCB Call Centre on

(021) 111-000-622 to obtain your User ID. After verification User

ID will be disclosed to you, enabling you to start using the MCB

Virtual Internet Banking service.

To enable you to use the MCB Virtual Internet Banking Service, we will

give you an initial login password and a user identification code you may

then choose your own Password for the MCB Virtual Internet Banking

Service. These are your Security Codes and both will be used to identify

you whenever you access the MCB Virtual Internet Banking Service.

Mobile Banking:


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MCB Mobile is a brand new way to check your account balance, view

your mini-statement and do the following:

Recharge Prepaid Mobile Connections

Pay Postpaid Mobile Bills

Pay Utility Bills

Transfer funds instantly (to any MCB account)

Pay MCB Credit Card Bills

Make Donations and lots more…

It’s quick: Transactions at the speed of thought!

You can do transactions wherever and whenever you want to.

Thinking of paying a bill, buying mobile credit or sending money to

anyone with an MCB Account? You can do it NOW.

No need to call the call center.

No need to visit a branch.

Just use your mobile phone to login to MCB Mobile and all of this

is possible in a matter of seconds.

It’s Easy

MCB Mobile is one of the easiest ways to make payments. Avoid the

cost of physically going to a branch to make your payment. Avoid the

hassle of standing in a line to do a transaction. Simply use your mobile

phone to make your everyday payments.

It’s Secure


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MCB Mobile gives you peace of mind.

Communication between the mobile phone and MCB takes place

over encrypted channels.

No Bank Account related information is stored on your Mobile

Phone.

MCB Mobile is VeriSign certified.

To ensure maximum security this service uses two PINS for transactions

to take place. Without the two PINs no activity can take place via MCB

Mobile

The Mobile PIN is the PIN which you receive when you register for

this service. This PIN only allows you to login to this service.

The ATM PIN is the same as the ATM Card’s PIN which you used

to register for the service. This PIN allows you to conduct any

transaction.

For eligibility you must have active MCB ATM card.

Registration process:

Visit any MCB ATM, insert your ATM card and enter your ATM PIN

to for authentication.

Select mobile banking registration from Service Request menu.

Enter the mobile number you want to register for mobile banking

and confirm entry.

You will receive a SMS confirming registration


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Call our call centre at 111-000-622 to speak to an agent. After

verifying your information you will be activated and a Mobile PIN

will be sent to you via an SMS.

Point your mobile browsers to www.mcbmobile.com to start

transacting.

Charges / Limits:

Charges:

An annual fee of Rs. 300 + FED is applicable for MCB Mobile

customers.

All customers get a Three (3) Month Free trial period from date

of activation.

MCB does not charge a transaction fee. All transactions

(financial & non financial) are FREE of cost.

Transaction Limits:

Overall Daily financial transaction Limit of Rs. 100,000.

Prepaid Mobile Top-up limit of Rs. 10,000 per day.

Number of financial transactions limited to 10 per day.

Credit Card Bill Payment is as per your actual outstanding

balance. It does not fall under the Overall Daily limit.

Sms Banking:


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Now, MCB SMS Banking gives you quick and easy access to your

account(s) round the clock, at your convenience.. This service is

available to all MCB Account Holders anytime, anywhere.

MCB SMS Banking allows you to avail the following services:

Account Balance Inquiry.

Account Mini Statement (last 5 transactions).

View Credit Card(s) minimum payment.

View Credit Card(s) outstanding balance.

View Credit Card(s) bill.

A Free Service

MCB SMS Banking is a free service for all MCB account holders.

However, standard SMS charges levied by your service provider are

applicable.

This service is currently available for Mobilink Customers.

Registration process:

Simply follow the steps below:


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Step 1: Contact MCB Call Center on 111-000-622(MCB). The call center

executive will verify your account information. After successful

verification, you will receive a welcome message on your mobile phone

Step 2: Once you receive the Welcome Message on your mobile phone,

you need to generate your SMS Banking PIN in order to start using the

service. To generate PIN:

Type RG, give a space, then type a 4 digit PIN of your choice and

Send to 6222

For example, if you select 1234 as your 4 digit PIN code, send RG

1234 to 6222.

You will receive a message confirming your PIN on your mobile.

Step 3: Congratulations! Now you can start using SMS Banking service.

Just type the required Service Code, give a space and type your four

digits SMS Banking PIN and send to 6222

For example: BAL 1234 and send to 6222


Bank Charges (July 2010)

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S. # Item Rate

1 Telegram on TT Actual-MinimumRs.116+0.3%

2 Postage on MT Actual-MinimumRs.75

3 Cancellation of DD/Pay order

Rs.150 far Account holder

Rs.400 far non Account holder

4 Issuance of Cheque Book Rs. 6 per leaf

5 Account closing Cost Rs.250 for LCY

6 Issuance of duplicate Draft Rs.400 far Account holder


7 Issuance of duplicate FDD Rs.500

8 Issuance of duplicate Pay order

Rs.200 far Account holder


9 Issuance of RTC Rs.10 per piece

10 Stop payment charges Rs.300

11 Issuance of fresh statement Rs.50


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12 Issuance of duplicate statement

Rs 50


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Strengths:

Strong customer relationship

MCB is the first Pakistani privatized bank and because of its

quality management, marketing, innovation in products and

services. Owing to all such factors they have established a good

reputation in the banking market. The name of MCB makes you

recall the highly cooperative and professional individuals ready to

serve you with maximum zeal and zest.

Flexible behavior of employees to customers

MCB in Pakistan is the also in the list of highly automated banks

like Emirates because of its modern style of banking through fully

computerized control and twenty four hour banking.

Working since 1980 in Mian Channu

Experienced staff


SWOT Analysis

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Weaknesses:

Staff is not enough to deal with customer; at least one CSO is

required.

Duties are performed without sequence which later leads to delay

and inconvenience

A behavior has been noted that bank tries to feel at ease with

good looking; rich and educated people and the poor looking

customers feel some bit strange in the environment of the bank.

To give everyone equal protocol is lacking among employees.

No IT review is taken. (Weakly or monthly)

Mismanagement of time is another big mistake in MCB branches,

the bank official time of closing is 5:30pm but due mismanagement

of time allocation and work the staff is normally on their seats till

7:00 or 8:00 clock.

Space is not enough to deal with large number of customers inside

the bank and building is in bad condition.

No proper parking area with shade.

The majority of people are not well aware about the products of

MCB. Therefore it should advertise extensively especially RTC and

Master Cards.

No ATM is available in MCB Mian Channu branch.


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Opportunities:

Bank is situated at market comity gate so it can grasp more

customers by marketing that would be fruitful to the bank.

Mian Channu is seen very busy market for business activities so

there are number of opportunities to find loyal and successful

people who need funds to expand the business.

Mian Channu city has very beautiful and grassy stadium that

remains busy with variety of game activities so bank can sponsor

them at small level and can earn attention.

The belt where Mian Channu is situated is also called agriculture

belt so there are number of opportunities to issue more agriculture

base loan.

Threats:

Competitions among banks / new banks are being opened.

Electricity shortfall

Political instability

Natural disasters

Terrorist activities

Increment in taxes


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To be competitive the Bank has further reinforced its position in the

Consumer banking area by streamlining and re-launching the

consumer financing products and introducing more convenience

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

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

also launched a running finance facility against mortgage of property.

technology continued to play an important role in improving and

expanding product offerings.

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

lifestyles and needs of the customers. MCB Virtual-Internet Banking

was launched with wide ranging banking solutions for the

customers ranging from individual to corporate customers and it has

become the most preferred Internet banking solution in the country.

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

the comprehensive bill payment facility through its alternate delivery

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

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

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

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

which is user friendly and considerably easy to browse. The Islamic

Banking initiative has been very successful in attracting new customer,


Competitive Strategy

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both individuals and companies. Similarly, those relationships, which

were confined only to current account facility, have grown into stronger

business relationships. The branch network was expanded to Lahore,

Multan, Hyderabad and Faisalabad. The Bank plans to further expand its

Islamic Banking branch network to other metropolitan areas and also to

introduce new sharia compliant banking solutions to a wider range of

customers for satisfying their individual and business needs. Some wide-

ranging new strategic initiatives were also taken up which will be

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

formed in Hong Kong (fully owned subsidiary of MCB) in partnership with

Standard Chartered Bank, handling trade transactions of select countries

in the Asia-Pacific region. It is projected to earn US$ 1 million in its first

year of operations. To increase its international presence, the Bank will

be opening its representative office in Dubai and entering into major

strategic alliances with banks in the UAE/ especially for marketing our

consumer banking products to non-resident Pakistanis. Furthermore,

feasibility is also being carried out for entering other international

markets. MCB's operations continued to be streamlined with focus on

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

increase productivity, enhancement of customer service standards,

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

introducing the innovative concept of centralizing Trade Services in the

country by providing centralized foreign trade services to branches with

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


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Management of Human Resources has been one of our core focus

areas. MCB is committed towards attracting, retaining and motivating

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

which employees can better realize their potential. The Bank introduced

'reward for performance' where high potential officers were identified and

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

is focusing on performance and introducing a more robust performance

management system. MCB is also strongly committed to training its staff

at all levels. The Bank will also be implementing the full suite of the latest

version of SYMBOLS Version 8. MCB Bank will run SYMBOLS E-

Finance modules to deliver personalized services to its customers over

multiple delivery channels, while SYMBOLS Enterprise Operations

Center will serve as its core banking transaction-processing engine. By

implementing SYMBOLS, MCB Bank aims to raise the level of its

customer service and its time to market in new product offerings for its

three core banking businesses in Corporate, Commercial and Consumer

Banking retaining its market leadership as Pakistan’s progressive Bank.


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Learning

During my internship in MCB Mian Channu I found my supervisor and other staff very cooperative.

Customer dealing especially in account opening department where

I did open number of accounts.

I learned about how to adjust myself in organization environment.

How motivation leads the person towards better performance.

Punctuality towards work

If you will leave the today’s work on tomorrow how it will make your

tomorrow painful.

Duties

Filling of slips for: Online transfer, Deposit slip, DD slip, pays order

and RTC.

Issuance of cheque book

Account opening

Active dormant account

Making of clearing

ATM card form filling and sending request

Making of speed and exchange payment vouchers

Maintaining of cheque return register

Making of NADRA verification of bank customers


Learning & Duties Performed

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New Knowledge Acquired

It was really great experience for me to work in the practical scenario

because before this internship training I was not aware at all that how

the work is actually done in the organizations. The bank in which I have

done internship was basically a consumer bank providing facilities of

personal and business loans. They are not dealing with import & export.

The working environment of bank was very friendly and cooperative; all

the seniors really helped me whenever I asked about any thing. In the

starting days I was put on to the job of cheque filling and deposit slip

filling. I also learned how to issue cheque book. After one week I have

shifted to account opening cell where I learned about account opening

procedures customer dealing and filing about opened account under

supervision of Sir Mustafa. I opened more than 15 accounts. I have also

worked in remittance department where I learned the method and

charges schedule of making Pay Order, Traveler Cheques and Demand

Draft etc under supervision of Miss Aysha Zafar. I have also worked in

clearing department with clearing Officer Tajammul Niazi where I learned

how out station cheques and other banks cheques been cleared and

making of OBC.


Knowledge Acquired & Experience Impact

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How Experience Impacts Career

In educational institutions one gets only bookish knowledge and there is

not too much training given to them about the actual working

environment prevailing in the organizations. It does not matter how much

intelligent a person is, when he first time steps into the practical life

he/she thinks that we have not learnt enough to work in the practical life.

Experience makes a man perfect for work and practical life. The bank

where I have done internship is having qualified staff but they are

excellent in their work due to experience. After the internship I also feel

that now I can perform the assigned activities effectively and efficiently.


Internship Report

In Mian Channu MCB branch there are number of things that should

notified by the manager and their staff for the betterment of the branch. I

observed and feel some activities that should be taken to improve the

performance of the branch.

MCB Mian Channu branch building is in very pathetic position and

immediately needs to be change or reconstruct.

There is a need of one CSO (customer service officer) to deal such

a large number of customers. This action will make the stationary

cost low, decrease in some usual error of slip filling and release

burden from other employees.

IT review should be taken weekly where all computer and other

accessories should be tested.

Proper parking area should be provided.

There should be a training session on monthly basis for staff.

Job rotation should be done; it will provide help to keep operation

smooth if any employee is on vacation.

Marketing rounds for new and fruitful accounts once in two months

should be taken.

Computerized token system should be installed to avoid long

queues for cash deposit and withdrawal.


Suggestions

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By implementing the above mentioned suggestions ultimate customer

will be facilitated and happy customer is a way of getting more

customers through their word of mouth.

Earning per Share


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This ratio determines the amount of income that has been earned on each share

outstanding.

Earning per share=Net profit after tax/ Total no of shares

EPS of 2008 15, 374, 600000/ 691,104,527=22.25

EPS of 2009 15, 495, 297000/691,104,527=22.42

20082009

22.15

22.2

22.25

22.3

22.35

22.4

22.45

EPS

Series 1

Interpretation

. Earning per share is better in 2009 because in this year return on investment

was also satisfied.

Net Profit Margin


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N.P.A.T/ Total Income * 100 (Rupees i000)

Net profit of 2009 = 15,495,297/51,616,007*100

2006 2007 2008 2009

47.1% 48.02 % 38.39% 30.02%

20062007

20082009

0.00%5.00%

10.00%15.00%20.00%25.00%30.00%35.00%40.00%45.00%50.00%

Series 1

Interpretation

Net profit margin in 2009 is less than the previous years due to increase its expenses

Current ratio


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[Current Ratio = Current Assets / Current Liabilities](Rupees in 000)

2006 2007 2008 2009

111.84% 110% 111% 124.56%

Current ratio of 2009 = 468168736/375850551

20062007

20082009

100.00%

105.00%

110.00%

115.00%

120.00%

125.00%

Series 1

Series 1

Interpretation

In 2009 current ratio of MCB is higher than previous year it means in 20098 company current assets is higher than its current liabilities

Working Capital


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It is the difference of current assets and current liabilities.

Working capital=current asset-current liability (Rupees in 000)

Working capital of 2009 = 468168736-375850551

2006 2007 2008 2009

31,757,831 34,129,446 43052232 92318185

2006 2007 2008 2009

0

20,000,000

40,000,000

60,000,000

80,000,000

100,000,000

Series 1

Interpretation

Working capital of 2009 is much better then past years. It means that assets are utilized more economically in 2009 as compared to others years.

Return on assets

NPAT/total assets*100 (Rupees i000)


Internship Report

Return on assets of 2009 = 15,495,297/509,223,727*100

2006 2007 2008 2009

7.53% 7.74% 9.02% 3.04

20062007

20082009

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

Return on assets

Series 1

Interpretation

In 2009 the net profit of the bank as compare to its assets is less than the

previous years of 2008 and 2007 which is mentioned in this graph.

Return on Investment (ROI)

It is the return on investment..

Return on investment= Net profit after tax/Total investment (Rupees i000)

Return on investment of 2009 = 15,495,297/167,134,465


Internship Report

2006 2007 2008 2009

19.12% 48.25 15.91% 9.27%

20062007

20082009

0.00%5.00%

10.00%15.00%20.00%25.00%30.00%35.00%40.00%45.00%50.00%

ROI

Series 1

Interpretation

The return on investment in 2007 is much higher than current year return in 2007 the bank earned a reasonable profit so its roi is 48 % and in 2007 it is only 9.27 %

Gross Profit Margin

Net markup/ Interest earned (Rupees 000)

Gross Profit Margin of 2009 = 35,774,544/ 51,616,007

2006 2007 2008 2009

82.44% 75.26% 71.11% 69.30%


Internship Report

20062007

20082009

60.00%

65.00%

70.00%

75.00%

80.00%

85.00%

Gross Profit Margins

Series 1

Interpretation

Due to decrease in profit before tax in 2009 its gross profit margin is also lower than previous years

Fixed Assets Turnover

Fixed assets turnover ratio is also known as sales to fixed assets ratio. This ratio measures

the efficiency and profit earning capacity of the concern.

Fixed Assets Turnover Ratio = Cost of Sales / Net Fixed Assets (Rupees 000)

Fixed Assets Turnover Ratio of 2009= 51,616,007/ 18,014,896


Internship Report

2006 2007 2008 2009

2.84 1.98 2.31 2.86

20062007

20082009

0

0.5

1

1.5

2

2.5

3

Fixed Assets Turnover

Series 1

Analysis

The MCB bank in 2009 utilize its fixed assets more effectively than previous years to generate its sales

Return on Equity

Return on Equity of 2009 24, 710, 953000/ 6, 911, 045000=3.56

2006 2007 2008 2009

3.14 3.31 3.27 3.56


Internship Report

20062007

20082009

2.9

3

3.1

3.2

3.3

3.4

3.5

3.6

Return on Equity

Series 1

Interpretation

Return in equity in 2009 is 3.56 % which is higher than previous years so its

means that the return on equity capital is very good

Net Profit Margin

.

N.P.A.T/ Total Income * 100

Net Profit Margin of 2009 15, 495, 297000/ 51, 616, 007000=

2006 2007 2008 2009

47.1% 48.02 % 38.39% 30.02%


Internship Report

20062007

20082009

0.00%5.00%

10.00%15.00%20.00%25.00%30.00%35.00%40.00%45.00%50.00%

Net Profit Margin

Series 1

Interpretation

Net profit margin is increasing in 2026 to 2007. It means the bank is going in

better position. But in2008 and 2009 it decreases gradually which bad sign for

bank.

Acid Test Ratios

It is the ratio of liquid assets to current liabilities.

Quick ratio= current assets-inventories/current liabilities

468168736-167134465/375850551


Internship Report

2006 2007 2008 2009

89.06 76.94 85.36 80.09%

2006 2007 2008 2009

70.00%

75.00%

80.00%

85.00%

90.00%

Series 1

Series 1

Interpretation

In 2006 acid test ratio is higher than 2009 which means the bank has less most liquidate assets in less proportion than in 2006

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

quite satisfactory. MCB's total assets, investments, deposits and equity has

increased but profitability has decreased by a soaring percentage of 58.23%.

The reasons which I have traced out of my analysis and studies are as follows;


Conclusion

Internship Report

Increased financial costs of funds for which expected investment

revenues did not open up.

Return on lending has been reduces

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

requirements of Prudential Regulations. The fresh increase is mainly 51%

in the other assets especially mentioned classification. According to the

prudential regulations requirements, accrued markup cannot be

credited to income but to suspense A/C.

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

In spite of various policy measure initiated by the government for

confidence building of the domestic and foreign investors and steps

taken such as:

o Creation of small and medium entries development authority

(SMEDA).

o Financing under prime minister's self employment scheme.

o Launching of Mera Ghar scheme etc.

o For revival of economy, the expected investment environment

could not be created and economy did not pick up.

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

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

thus further narrowing the spread of banking industry.

Although, economic sanctions imposed as a result of nuclear blast and

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

growth, but the debt rescheduling at the Paris Club and large financial


Internship Report

commitments by the multilateral agencies will improve country's

external position and provide a sound footing for medium term

planning. In this improved and stable economic environment, the bank

will get opportunities and by making sincere efforts can increase its

profitability and equity.

Previous year is expected to pose a tough market environment. Shortage

of rains and electricity can seriously impact overall GDP growth. The tight

monetary policy is impacting the country's exports with a ripple effect on the

manufacturing sector. The documentation drive, which is good for the country

over a long period of time, is being expectantly viewed with concern by certain

segments. The combined impact of these factors may cause a slowdown of

economic activity in certain pockets of the economy.

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

of the documentation deive by the government and continuous efforts to

normalize international relations should bring positive results.

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

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

the growing strength of the MCB brand and expand the platform to provide

value based propositions to our customers.


Internship Report

Bibliography

http://www.mcb.com.pk/

http://en.wikipedia.org/wiki/Muslim_Commercial_Bank

www.scribd.com/doc/30554269/ MCB - Internship - Report

Mr. Imran Operational Manager of MCB Mian Channu branch

Mr. Mustafa In account opemimg Cell

Miss Aysha Zafar Remittance Officer

Mr. Imran Aslam in Creditdit department


http://www.scribd.com/doc/30554269/MCB-Internship-Report

http://en.wikipedia.org/wiki/Muslim_Commercial_Bank

http://www.mcb.com.pk/

Internship Report

Reding of MCB internship report hard copy

www.sbp.com.pk

www.kse.com


http://www.kse.com/

http://www.sbp.com.pk/