Internship Report on (MCB)

Submitted by: Sardar Ussam Javed Thakur

Registration # FA08-BBA-062

Supervised by: Sir Shahid Masood

Session 2008-2012

Department of Management Sciences COMSATS Institute of Information Technology Abbottabad

Internship Report on (MCB)

Submitted by: Sardar Ussam Javed Thakur Registration # FA08-BBA-062

Supervised by: Sir Shahid Masood

This internship report is submitted in partial fulfillment of the requirements for the degree of bachelors of Business Administration awarded by the COMSATS Institute of information and Technology, Abbottabad.

Department of Management Sciences COMSATS Institute of Information Technology Abbottabad

June 5, 2012

Department of Management Sciences COMSATS Institute of Information Technology Abbottabad

Approval Sheet
.
Approval Committee

1. External Examiner

Mr. ________________________________________ Signature________________

2. Supervisor

Miss. _______________________________________Signature_________________

3. Head of Department

Mr. ________________________________________ Signature ________________

I DEDICATE
My Parents who shaped my life and made me what I am today, My Teachers who have been my source of inspiration, my siblings and friends who Support and encourage me in my endeavours, And to the Greatest Person (PBUH) who brightened the World With the light of His Wisdom and Knowledge.

Table of Contents
Acknowledgement VIII Abbreviations IX Executive Summary X _____________________________________________________________
CHAPTER 1 INTRODUCTION TO THE REPORT 1.1 INTRODUCTION.1 1.2 BACKGROUND OF THE STUDY..1 1.3 PURPOSE..1 1.4 SCOPE...1 1.5 LIMITATIONS.2 1.6 OBJECTIVES2 1.7 METHODOLOGY2 1.8 SUMMARY...3 CHAPTER 2 HISTORY AND ABOUT MCB 2.1 HISTORICAL BACKGROUND..4 2.1.1 NATIONALIZATION...4 2.1.2 PRIVATIZATION.4 2.2 ABOUT MCB5 2.3 ORGANIZATION PROFILE5 2.3.1 ORGANIZATION STRUCTURE..5 2.3.2 BOARD OF DIRECTORS....6 2.4 ORGANIZATION STRUCTURE.....7 2.5 BRANCH NETWORK.8 2.6 PATTERN OF SHAREHOLDING.....11 2.6.1 CATAGORIES OF SHAREGOLDERS .12 2.7 CORE VALUES....13 2.7.1INTEGRITY .13 2.7.2 INNOVATION.13 2.7.3 EXCELLENCE....13 2.7.4 CUSTOMER CENTRICITY...13 2.7.5 RESPECT 13 2.8 VISION & MISSION ....13 2.8.1 VISION STATEMENT .13 2.8.2AWARDS AND ACHIEVEMENT ..14 2.9 MISSION STATEMENT14 2.9.1 EURO MONEY AWARD ...15 2.9.2 ASIA MONEY AWARD........................15 2.10 MANAGEMENT COMMITTEE ......16

2.10.1 ASSETS & LIABILITIES COMMITTEE../..16 2.10.2 INVESTMENT COMMITTEE ......16 2.10.3 PURCHASE COMMITTEE...16 CHAPTER 3 PRODUCTS & SERVICES 3.1 PRODUCTS & SERVICES17 3.1.1 CURRENT ACCOUNT...17 3.1.2 SAVING ACCOUNT .....17 3.1.3 TERM DEPOSIT............17 3.1.4 MCB ONLINE BANKING..18 3.1.5 MCB NET......................18 3.1.6 MCB CASH MANAGEMENT18 3.1.7 MCB CHANNEL FINANCING..18 3.1.8 MCB LOCAL RUPEE DRAWING ARRANGEMENT..18 3.1.9 MCB HOME REMITTANCE..19 3.1.10 MCB CORPORATE FINANCING19 3.1 .11 MCB PROJECT & STRUCTURED FINANCE...19 3.1 .12 MCB SYNDICATED LOANS AND DEBT CAPITAL MARKETS..19 3.1 .13 MCB QUASI EQUITY/HYBRID INSTRUMENTS...19 3.1 .14 MCB EQUITY CAPITAL RAISING...19 3.1 .15 MCB ADVISORY SERVICES20 3.1 .16 MCB ISLAMIC BANKING.20 3.1.17 MCB AGRI PRODUCTS..20 3.1 .18 MCB PRIVILEGE20 3.1 .19 MCB SALARY CLUB.21 3.1 .20 MCB INVESTMENT SERVICES...21 3.1 .21 MCB VISA CREDIT CARD21 3.1 .22 MCB CAR4U21 3.1 .23 MCB INSTANT FINANCE..21 3.1 .24 MCB SMART CARD...22 3.1 .25 MCB RUPEE TRAVELERS CHEQUE...22 3.1 .26 MCB ATMS..22 3.1 .27 MCB MOBILE ATM22 3.1 .28 MCB LOCKERS...22 3.1 .29 MCB SMS BANKING..22 3.1 .30 MCB FULL-DAY BANKING..23 3.1 .31 MCB BANC ASSURANCE..23 3.1 .32 MCB CALL CENTRE...23 3.1 .33 MCB MOBILE..23 3.1 .34 MCB VIRTUAL BANKING.23 3.2 MARKETING MIX.24 3.2.1 TARGET MARKET.24 3.2.2 CONSUMERS..24 3.3 FOUR PS OF MARKETING MIX24 3.3.1 PRODUCTS/SERVICES..25

3.3.2 PRICE..25 3.3.3 PROMOTION..25 3.3.4 PLACE.26 3.4 SELF EXPERIENCE..26 3.4.1 EXPERIENCE26, 27 CHAPTER 4 SWOT ANALYSIS 4.1 SWOT ANALYSIS.28 4.1.1 STRENGTHS...28 4.1.2 WEAKNESSES29 4.1.3 OPPORTUNITIES29 4.1.4 THREATS.30 CHAPTER 5 CONCLUSIONS & RECOMMENDATIONS 5.1 CONCLUSION31 5.2 RECOMMENDATIONS.31 5.2.1 PROMOTION AND MASS MEDIA PUBLICITY.32 5.2.2 NEED INTRODUCE FRIENDLY PRODUCTS.32 5.2.3 CENTRALIZED STRUCTURE..32 5.2.4 BETTER REWARD SYSTEM32 5.2.5 CONTINUOUS TRAINING OF EMPLOYEES.32 5.2.6 ATM MACHINES MAINTAINED.32 5.2.7 STAFF MEMBER32 5.2.8 JOB ROTATION FOR EMPLOYEES.33 REFERENCES.34

CHAPTER 1 INTRODUCTION TO THE REPORT

1.1 INTRODUCTION Chapter one is about introduction of report.This chapter includes background, purpose, scope, objectives and methodology of the study. It also include introduction of organization.The purpose of the study is to acquire the experience in the field by applying the lectures and theoretical knowledge in the practical life.

1.2 BACKGROUND OF THE STUDY

Internship training program during Bachelor in Business administration Program is necessary for the partial fulfillment of the completion of Degree of bachelor in Business Administration as per HEC ( Higher education commission ) requirement. It is necessary for me to complete an internship session of about 8 weeks in some manufacturing or service industry relevant to my area of interest and specialization.

1.3 PURPOSE Internship is the capstone experience that provides me with hands-on, real-world

experience in a work setting. Ideally, internship will enable internees to: Use my knowledge and skills get from the classroom, Discover where further competence is needed, Convert the bookish knowledge into practical life, and become better acquainted with the types of work settings in which such Competence can be applied.

1.4 SCOPE This study will facilitate to me regarding the working of Banking sector of Pakistan because most of the teachers during their lectures use the examples of Banks like MCB, National Bank, UBL, Bank Alfalfa and many others, Students should study about the functioning of such Banks. It will help full for me in future.

1.5 LIMITATION OF THE STUDY 8

The study is done with the sole purpose of doing the best work but there were certain limitation faced during the internship period. The most important limitation from which the study suffers is the non-availability of information in a manner required for analysis and the secrecy of the bank. Another important limitation of the study is time and space constraint. In the MCB Timber Market Branch fraud was held by chief cashier and operation manager so an Audit Team was there and management was busy in providing information to auditor and sets claims of customers.

1.6 OBJECTIVES I worked as an internee in MCB Timber Market branch, Lahore. The main objectives to study in MCB were: To get some experience in working with well reputed organization.
To gain knowledge about the professional environment of the bank.

To know about the technology utilized in the banks. To deal and manage with the situation of stress.

1.7 METHODOLOGY
There are mainly two methods that are used for the collection of data. Primary Data Secondary Data (A) Primary Data: Observation of functions of Branch operations on the spot. Observation of different processes of Branch on the spot. (B) Secondary Data: Internet is very helpful for me to study more about banking sector of Pakistan. Different type of booklets of the Bank. Annual reports Journals Newspapers

1.8 SUMMARY
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This is the first chapter of the report containing the detail introduction of the report. Internship training program during Bachelor in Business administration Program is necessary for the partial fulfillment of the completion of Degree of Bachelor in Business Administration. Internship will enable internees to integrate and use knowledge and skills

from the classroom. This study will facilitate me regarding the working of banking sector of Pakistan. For achieving my purposes, objectives and for the preparation of the internship report I required some kind of data, I used both methods of data collection that are primary sources and secondary sources for that purpose.

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CHAPTER 2 HISTORY 2.1 HISTORICAL BACKGROUND

MCB Bank Limited formerly known as Muslim Commercial Bank Limited MCB Bank is not an overnight success story. It 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 After the partition of the Indo-Pak subcontinent, the bank moved to Dhaka (then the capital of former East Pakistan) from where it commenced business in August 1948. In 1956, the bank transferred its registered office to Karachi, Where the head office is presently located. Thus, the bank inherits a 59 years legacy of trust of its customers and the citizens of Pakistan.

2.1.1 NATIONALIZATION In January 1974, the Government of Pakistan nationalized MCB following the Banks (Nationalization) Act 1974. MCB was neither the only bank which was nationalized solely as neither it nor any other bank being merged with it due to its consistent and firm policies and its sound position.

2.1.2 PRIVATIZATION A wave of economic reforms swept Pakistan in the lattes introducing the Need for privatization of state owned banks and companies. This was the first bank to be privatized in 1991 and the bank was purchased by a consortium of Pakistani corporate groups led by Nishat Group. 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. Manshas contribution, the Government of Pakistan has conferred him with "Sitara-e-Imtiaz", one of the most prestigious civil awards of the country.

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2.2 ABOUT MCB

Over the years MCB has developed strong relationships with its customers by understanding their needs and treating them with respect, dignity and importance. The driving force behind its commitment and services is its focus on customers ensuring that it not only meets, but also exceeds their expectation. They strive to achieve excellence by ensuring that every moment of their time is spent in adding value, making sure that they do things right, first time, and every time. With the quest of quality MCB has always taken initiatives bringing banking into a new arena; from cash to the convenience of plastic; from branch banking to internet banking and from face to face customer interaction to online accessibility. MCB now focuses on three core businesses namely Corporate, Commercial and Consumer Banking. Corporate clientele includes public sector companies as well as large local and multi national concerns. MCB is also catering to the growing middle class by providing new asset and liability products. MCB Bank Limited has a solid foundation of over 63 years in Pakistan, the Bank provides 24 hour banking convenience with a network of over 1000 branches, the largest ATM network in Pakistan over 450 ATM locations in the market.

2.3 ORGANIZATION PROFILE

Name of Organization: Chairman: Location: Branch code: Website: MCB Limited. Main Mohammad Mansha Mansehra branch Abbottabad (053) www.mcb.com.pk

2.3.1 ORGANIZATION STRUCTURE As MCB is a banking company listed in stock exchange therefore it follows all the legalities, which are imposed by concerned statutes. MR. Mian Mohammed Mansha is chairman & chief

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executive of the company with a team of 10 directors and 1 vice chairman to help in the business control and strategy making for the company. A team of 10 professionals is handling operational management of the bank. MR. Mian Mohammed Mansha also heads this team.

THE DIFFERENT OPERATIONAL DEPARTMENTS ARE Consumer Banking & IT Division Financial & Inter Branch Division Banking Operations Divisions HRD & Legal Division Financial Control & Audit Division Credit Management Division Commercial Banking Division Corporate Banking Division

2.3.2 BOARD OF DIRECTORS Mian Mohammad Mansha Mr. S. M. Muneer Mr. Tariq Rafi Mr. Shahzad Saleem Mr. Sarmad Amin Dr. Muhammad Yaqub Mian Raza Mansha Dato' Mohammed Hussein Mr. Aftab Ahmad Khan Mr. Abdul Farid Bin Alias Mian Umer Mansha Mr. Muhammad Ali Zeb Mr. Atif Bajwa Chairman Vice Chairman Member Member Member Member Member Member Member Member Member Member President / CEO

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2.4 ORGANIZATION STRUCTURE

Manager (AVP

Operation Manger (OG |)

Advances (OG |||)

PBA (OG |||)

Remittance (Assistant)

Current saving dep. (OG |||)

Forex (OG |||)

CSO (Contract)

Cash (Contract)

Regional Operational Manager

Regional Manager

Internal control officer (OG |)

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Source: (data gathered and adopted from the Muslim commercial bank Abbottabad branch manager)

2.5 Branch Network As on December 31, 2010

WHOLESALE BANKING GROUP No. of Circle / No. of Branches Wholesale Banking Branches Branches 10 No. of Sub-Branches

ISLAMIC BANKING GROUP

No. of Circle / No. of Branches Islamic Banking Branches 14 No. of Sub-Branches 02

PRIVILEGE BANKING
No. of Circle / No. of Branches Privilege Banking Branches 07 No. of Sub-Branches

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OVERSEAS OPERATION
No. of Circle / No. of Branches 1. Colombo 2. EPZ 3. Kandy 4. Maradana 5. Offshore Banking Unit (OBU) - Bahrain 6. Pettah 7. Wellawatte TOTAL Dubai (Rep. Office) Branches 1 1 1 1 1 1 1 7 1

SUMMARY
No. of Group CBBG-South CBBG-East CBBG-Central CBBG-North Wholesale Banking Islamic Banking Privilege Banking Total Overseas Circles 5 3 4 4 16 16 Regions 9 8 13 11 41 Branches 220 243 366 265 10 14 7 1,125 6

EPZ Grand Total

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41

1 1,132

PROVINCE-WISE Province Punjab Sindh Khyber Pakhtunkhwa Balochistan Azad J. Kashmir Domestic Total Overseas EPZ Grand Total Branches 700 251 110 40 24 1,125 6 1 1,132 Sub-Branches 9 4 1 14 14 Total 709 255 111 40 24 1,139 6 1 1,146

Source: (Retrieved Official website of MCB) (www.mcb.com/pk.org) on December 2011

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2.6 PATTERN OF SHAREHOLDING

As of December 31, 2010

HAVING SHARES

SHARE HOLDERS

FROM

TO

NO. OF SHARES

% AGE

16,248 12,451 6,171 6,121 209 204 39 69 41 39 5 3 1 5 6 41,612

1 101 501 1,001 5,001 10,001 50,001 100,001 500,001 1,000,001 5,000,001 10,000,001 15,000,001 20,000,001 25,000,001

100 500 1,000 5,000 10,000 50,000 100,000 500,000 1,000,000 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 Above

623,820 3,091,383 4,472,382 8,821,754 1,480,289 4,624,787 2,629,165 16,669,648 29,210,992 92,510,834 37,686,621 34,889,222 19,439,497 113,605,793 390,458,792 760,214,979

0.08 0.41 0.59 1.16 0.19 0.61 0.35 2.19 3.84 12.17 4.96 4.59 2.56 14.94 51.36 100

Source: (Retrieved Official website of MCB ) (www.mcb.com/pk.org) on December 2011

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2.6.1 CATAGORIES OF SHAREHOLDERS

No of Share Holders Directors, CEO Associated Companies, Undertakings NIT & ICP Banks, DFI & NBFI Insurance Companies Modarabas & Mutual Funds General Public (Local) General Public (Foreign) Foreign Companies Others 15 13 4 20 17 44 37,770 3,464 86 179 41,612 Shares held 57,412,411 379,123,038 131,567 1,582,229 50,076,792 6,677,686 110,658,668 2,770,691 122,373,480 29,408,417 760,214,979 Percentage 7.5521 49.8705 0.0173 0.2081 6.5872 0.8784 14.5562 0.3645 16.0972 3.8684 100.000

Source: (Retrieved Official website of MCB) (www.mcb.com/pk.org) on December 2011

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2.7 CORE VALUES

2.7.1 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. 2.7.2 INNOVATION We encourage and reward people who challenge the status quo and think beyond the boundaries of the conventional. Our teams work together for the smooth and efficient implementation of ideas and initiatives. 2.7.3 EXCELLENCE We take personal responsibility for our role as leaders in pursuit of excellence. We are a performance driven, result oriented organization where merit is the only criterion for reward. 2.7.4 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. 2.7.5 RESPECT We respect our customers 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.

2.8 VISION & MISSION

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2.8.1 VISION STATEMENT To be the leading financial services provider, partnering with our customers for a more prosperous and secure future.

2.8.2 MISSION STATEMENT We are a team of committed professionals, providing innovative and efficient financial solutions to create and nurture long-term relationships with our customers. In doing so, we ensure that our shareholders can invest with confidence in us. Providing innovative Efficient financial solutions Long-term relationships with our customers Shareholders invest with confidence

2.9 AWARDS AND ACHIEVEMENT

2010 The Asian Banker: Strongest Bank in Pakistan 2010 The Asian Banker: Leadership Achievement Award 2010 MMT: Best Bank Led MMT Service 2010 ICAP / ICMAP: BCR Award 2009-Banking Sector 2010 SAFA: Certificate of Merit Award 2009 Asia money: Best Domestic Bank in Pakistan 2009 The Asset: Best Domestic Bank in Pakistan 2008 Euro money: Best Bank in Asia 2008 Euro money: Best Bank in Pakistan 2008 Asia money: Best Domestic Bank in Pakistan

2.9.1 Euro money Awards

a) BEST BANK IN ASIA AWARD 2008 21

MCB has been awarded as Euro money Award 2008 for the Best Bank in Asia".

b) BEST BANK IN PAKISTAN AWARD 2006 MCB has yet again received the esteemed Euro money Award for the Best Bank in Pakistan. It is the only bank to receive the Euro money Award for Excellence for the sixth time in the past seven years. Best Bank in Pakistan Award 2005 Best Bank in Pakistan Award 2004 Best Bank in Pakistan Award 2003 Best Bank in Pakistan Award 2001

c) BEST DOMESTIC BANK AWARD 2000 MCB was awarded as Euro money Award 2000 for the Best Domestic Bank in Pakistan".

2.9.2 ASIA MONEY AWARDS

A) THE BEST DOMESTIC COMMERCIAL BANK AWARD 2005 MCB Continues to shine as once again Asia Money declares MCB as "The Best Domestic Commercial Bank in Pakistan" for the year 2005. B) THE BEST DOMESTIC COMMERCIAL BANK AWARD 2004 MCB has a distinction of winning the Asia Money 2004 award for being "The Best Domestic Commercial Bank in Pakistan".

2.10 MANAGEMENT COMMITTEE

2.10.1 MANAGEMENT COMMITTEE 1. Mr. M.U.A. Usmani - Chairman 2. Mr. Ali Munir 3. Mr. Mohammad Ramzan 4. Mr. Agha Saeed Khan 5. Mr. Azfar Alam Nomani

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6. Mr. Ahmad Kareem 7. Mr. Sajid Awan 8. Mr. Ali Mubashir Kazm 9. Mr. Muhtashim Ashai 10. Mr. Imran Maqbool 11. Mr. Laqa Sarwar 12. Mr. Salman Zafar Siddiqi 13. Mr. Syed Rashid Rahman 14. Mr. Mohammed Nauman Chughtai 15. Mr. Kamran Zafar Muggo

2.10.2 ASSETS & LIABILITIES COMMITTEE 1. Mr. M.U.A. Usmani Chairman 2. Mr. Ali Munir 3. Mr. Mohammad Ramzan 4. Mr. Agha Saeed Khan 5. Mr. Ali Mubashir Kazmi 6. Mr. Muhtashim Ashai 7. Mr. Imran Maqbool 8. Mr. Salman Zafar Siddiqi 9. Mr. Syed Rashid Rahman 10. Mr. Mohammed Nauman Chughtai

2.10.3 INVESTMENT COMMITTEE 1. Mr. M.U.A Usmani - Chairman 2. Mr. Ali Munir 3. Mr. Muhammad Ramzan 4. Mr. Muhtashim Ashai 5. Mr. Salman Zafar Siddiqi 6. Mr. Abdus Sami

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2.10.4 PURCHASE COMMITTEE 1. Mr. Ali Munir - Chairman 2. Mr. Salman Zafar Siddiqi

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CHAPTER 3 PRODUCT & SERVICES

3.1 PRODUCT & SERVICES This section is based on my observation and experience and rotation during my internship at the Timber Market Branch of MCB Limited. Some of the jobs that I performed or assisted in performing or overlooked in the various departments were

3.1.1 CURRENT ACCOUNT MCB Bank offers a variety of current accounts to cater to the everyday transactional needs of various customers. These accounts ensure ease and freedom to bank from any of the 1100+ branches across the country. The different accounts include: the Basic Banking Account that has no minimum MCB Bankance; Business Account offering free online transactions, Demand Drafts, Pay Orders and lots more to meet the day to day business requirements; Current Life Account which offers the security of life insurance free of cost; and for all others, the conventional Current Account.

3.1 .2 SAVINGS ACCOUNT MCB Bank offers a wide array of savings products that suit short term growth& transactional needs. Our savings accounts offer attractive profit rates as well as flexibility to transact. Savings extra is targeted for customers having Rs. 5 million + deposit, 365 Gold offers profit rate on daily MCB Bankance while PLS savings has a lower minimum MCB Bankance requirement. In addition, two unique products: Smart Savings and Savings Maximizer are special saving accounts run solely via debit cards and other remote banking channels, offering a very competitive rate to both high and low end savers.

3.1 .3 TERM DEPOSIT MCB Term Deposit offer attractive short to mid-term investment options with flexibility, convenience and security. With various tenor options available, customers can choose one that

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suits their needs. This is combined with different profit payout options and the added facility of being able to avail credit facility against their deposits. 3.1 .4 MCB ONLINE BANKING MCB has a fast growing network of 1100+ online branches in the country providing customers real-time online transaction facilities.

3.1 .5 MCB MNET MNET is an electronic inter-bank connectivity platform for online transactions on ATM and other remote banking channels. It offers other value added services that include a portfolio of ebanking and payment system products as well as management and day-to-day operations of the same. Members include 10 local and foreign financial institutions enjoying ATM sharing and Value added services.

3.1 .6 MCB CASH MANAGEMENT Cash Management provides a wide range of value added services to large corporations through its vast network of online branches. Our structured and customized products enable our customers to realize their sales proceeds swiftly from all over the country, supported by real-time MIS. Cash Management also provides payment solutions through MCB network and through third parties and customized solutions for dividend payouts.

3.1 .7 MCB CHANNEL FINANCING MCB Channel Financing provides working capital facilities to dealers and vendors of selected companies under a structured product program. This product enables our customers dealers to leverage themselves and increase their business capacity with their respective business partners.

3.1 .8 MCB LOCAL RUPEE DRAWING ARRANGEMENT Transaction Banking Department at MCB, provides Local Rupee Drawing Arrangement, a product for small banks and financial institutions to use our vast branch network platform to make payments in areas where their own branch network does not exist, thus extending their reach nationwide. We overwhelmingly cherish and stay committed to support the farmers in

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view of unparalleled significance of agri sector in our national life aligned with economic priorities of the country and role of our bank as a responsible corporate citizen.

3.1 .9 MCB HOME REMITTANCE MCB Home Remittance provides a seamless inflow of foreign remittances credited in the beneficiarys account within minutes. Cash payments can also be made at our designated branches on behalf of Xpress Money, Samba (Speed Cash Now), Money Gram and May bank Money Express Malaysia, along with cash payments from other correspondents from all over the world under the brand name of MCB Fast & Easy.

3.1 .10 MCB CORPORATE FINANCING MCB Corporate Financing provides access to diversified financing options, including working capital loans, term loans, trade finance services and investment banking.

3.1 .11 MCB PROJECT & STRUCTURED FINANCE MCB Project & Structured Finance involves financing complex projects, usually in an SPV structure, where the loan is tightly structured around the cash flows, risks are allocated amongst various stakeholders, and there is limited or no recourse to the sponsors.

3.1 .12 MCB SYNDICATED LOANS AND DEBT CAPITAL MARKETS MCB Syndicated Loans and Debt Capital Markets involves arrangement, underwriting and placement services for significant financing requirements by large corporate and institutional clients to other financial institutions or through the debt capital markets.

3.1 .13 MCB QUASI EQUITY/HYBRID INSTRUMENTS MCB Quasi Equity/Hybrid Instruments structure and place a category of debt that has some characteristics of equity such as being unsecured, subordinated or with a potential equity upside.

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3.1 .14 MCB EQUITY CAPITAL RAISING MCB Equity Capital Raising relates to raising capital for our clients by offering common or preferred equity to public or private investors, through initial public offers, offers for sale, rights issues and private equity placements.

3.1 .15 MCB ADVISORY SERVICES Financial and Capital Raising Advisory provides our clients with financial advisory services, commercial structuring support and access to capital resources to help companies successfully finance their business/project.

3.1 .16 MCB ISLAMIC BANKING With the help of Shariah specialists, lawyers and professional commercial bankers, MCB Islamic Banking provides Riba Free and Shariah Compliant products and services both on the liability and asset side of the statement of financial position to various customers of all demographic segments with its presence in a growing number of cities. MCBs Islamic Banking products are available to cater the need of Working Capital, Capital Expenditures, International/Local trade and consumers requirements.

3.1.17 MCB AGRI PRODUCTS MCB is committed to the farming community to support their national objectives of self sufficiency & food security to the people of Pakistan. Dedicated and specialized staff, supervised by the Agri Credit Division, is posted in lending branches to cater for strong business relationships & facilitation. The banks extensive branch network in all the provinces and diversified product range extends our reach of agri credit facilities to farmers engaged in any type of activity, encompassing both crop & non crop sectors.

3.1 .18 MCB PRIVILEGE A first from a local bank, MCB Privilege through its dedicated, world class Privilege Centers offers a higher level of personalized services, more rewarding in-branch experiences and a wide array of deposit and investment products that are tailored to meet the financial expectations of

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our affluent clientele. As members of MCB Privilege, customers experience unparalleled advantages that put them ahead of others. MCBs dedicated Privilege Centers await to welcome you in Karachi, Lahore, Islamabad and Multan, with plans to expand to more locations.

3.1 .19 MCB SALARY CLUB A payroll solution designed to make life easy; it simplifies all the monthly payroll related banking needs of employers and opens the door to a world of special offers for employees. Salary Club provides the convenience of having an extensive range of financial services available to employees at their place of work.

3.1 .20 MCB INVESTMENT SERVICES Make the most of your wealth with investment opportunities that match your unique financial aspirations. MCB Investment Services offer distribution of mutual funds managed by the leading fund managers of Pakistan. We can suggest the products most suited for your needs, or work with you to create a personalized solution completely focused on your expectations of the Capital markets.

3.1 .21 MCB VISA CREDIT CARD MCB offers a complete suite of Classic, Gold and Platinum Visa Credit Cards focusing on providing, superior services, travel privileges & shopping pleasure. It also offers comprehensive insurance & installment plans, reward points and SMS alerts that give a different feel to the world of credit cards. These unique features include i-revolve, which makes variable mark-up rate available to customers allowing them to repay at affordable rates.

3.1 .22 MCB CAR4U MCB Car4U not only gets you a car of your own choice but is also affordable with competitive mark-up, flexible conditions, easy processing and above all, no hidden costs.

3.1 .23 MCB INSTANT FINANCE With MCB Instant Finance, you can get a loan instantly at any MCB branch against liquid collateral at competitive pricing.

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3.1 .24 MCB SMART CARD MCB Smart Card opens the opportunity to have access to your funds via multiple banking channels. It enables you to withdraw cash from ATMs across Pakistan and around the world, transfer funds, pay utility and mobile bills and register for mobile and virtual banking services.

3.1 .25 MCB RUPEE TRAVELERS CHEQUE MCB Rupee Travelers Cheque is the best and safest alternate way of carrying cash. It can be used by travelers, businessmen or by the general public in meeting their day to day cash requirements while they travel. It is a safe and secure way to make payments because it gives the purchaser security that even if the cheque is lost it can be refunded. Unlike other modes of fund/remittance transfer which can only be drawn at a particular branch and can be encashed only at that branch, MCB Rupee Travelers Cheque can be encashed at any of our branches across the nation.

3.1 .26 MCB ATMS MCB has one of the nations largest ATM networks with 500 ATMs covering 110 cities across the country and still growing. MCB ATMs give you a 24-hours convenience of cash withdrawal, mini-statement, utility bill payments, mobile top-ups, funds transfer services and much more.

3.1 .27 MCB MOBILE ATM Through our MCB Mobile ATM we allow for convenient world class banking services. Our innovative MCB Mobile ATM van ensures that we offer our services wherever you are, be it concerts, fairs or any other occasion/special event.

3.1 .28 MCB LOCKERS MCB Lockers are the best protection for your valuables. Lockers of different capacities are available nationwide.

3.1 .29 MCB SMS BANKING With MCB SMS Banking, you can bank on your fingertips. Once you reregistered onto the service you can SMS anytime to get account information.

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3.1 .30 MCB FULL-DAY BANKING Enjoy the convenience of extended banking hours from 9am to 5pm, including Saturdays at MCB Full-Day Banking branches across the country.

3.1 .31 MCB BANK ASSURANCE Combining the best of banking and insurance solutions, MCB Banc assurance has created a onestop shop for all your financial and insurance needs. Whether you want to save for your childs education or marriage, for the security of dignity after retirement or gaining maximum return on savings, MCB Banc assurance has a plan for you. You can also buy instant insurance coverage through your mobile without any medical assessment.

3.1 .32 MCB CALL CENTRE The simplest way to bank is with the new enhanced 24/7 MCB Call Centre, which blends innovation and convenience to provide banking services that go beyond expectations. MCB Call Centre enables you to manage your VISA Credit & ATM/Debit Cards, confirm account MCB Bankances & views last 5 transactions, pay utility/mobile phone & MCB Visa Credit Card bills, top up your mobile, transfer money within MCB network accounts and register complaints. Most importantly it provides you with our very own banking consultant to discuss your financial needs and requirements. Simply call at 111-000-622 and well do the rest.

3.1 .33 MCB MOBILE MCB Mobile is a quick easy and secure way to recharge mobile phones, transfer money, pay bills and do much more. Visit the nearest MCB ATM or call 111-000-622 to register and logon to www.mcbmobile.com using your mobile phone to start transacting.

3.1 .34 MCB VIRTUAL BANKING MCB Virtual Banking Service is a convenient way to access your account(s) 24/7. It is secure, free of cost and lets you do your banking whenever and wherever. This service allows you to transfer funds, pay utility/mobile bills, set up standing order instruction, download account statement and much more.

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3.2 MARKETING MIX

Marketing Mix is defined as: The set of marketing tools that the firm uses to pursue its marketing objectives in the target market. Two basic pillars of this basic concept are: 3.2.1 TARGET MARKET MCB Bank target market consists of individual clients as well as a number of business organizations. Due to different market segments, MCB Bank different branches have their target markets. To capture the import business in Abbottabad, the targeted segments is city markets known as business & commercial hub of Abbottabad and this has been done via its Abbottabad branch, i.e. Trade markets. Due to specialized services provided by MCB BANK, and its highly competitive foreign exchange rates, most of the major importers in this area deal with MCB BANK. 3.2.2 CONSUMER NEEDS Assessment of the needs and wants of consumers is an ongoing process at MCB Bank, which helps it to continually develop new products and services. At MCB BANK, the philosophy is that the bank should go to all possible limits to satisfy the customer needs. The officers of the Import department, for example, try to get the minimum possible exchange rates for their clients. Those in cash department do not look at the clock while honoring the cheques.

3.3
1) 2) 3) 4)

FOUR Ps OF MARKETING MIX

Product Price Promotion Place Service Provided by Bank Commission and Bank Charges Received Promotion of Services Placement of Services i.e. Network of its Branches

Marketing Mix is a Combination of Four Ps. Product, price, promotion and place.

3.3.1 PRODUCTS / SERVICES

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Due to trend setting and innovative banking, MCB Bank presents a range of quality products with revolutionary perks and convenience. MCB BANK provides a wide range of products/ services to its customers, which can be compared with any foreign, or national bank in terms of quality and reliability.

3.3.2 PRICE

The amount of money the customers pay for the product of a company.
MCB BANK provides different products and services to its customers that have been discussed in previous section. Pricing of products means the commission to be paid by the customer in return of services provided by the bank. The commission paid for the services mainly includes: Mark up/ interest Bank charges Fees and bank commission etc. These charges and commissions are prescribed on Schedule of Bank Charges (SOC) that keeps on changing time-to-time, and issued by the bank periodically (generally after six months). There has been a lot of controversy regarding the price of banking companies. Some scholars argue that the mark up received by the bank is rent for capital that is used by others. On the contrary, some call it purely Riba.

3.3.3 PROMOTION All activities that a company undertakes to communicate and promote its products. This is an age of competition. Numerous organizations are providing financial services to the customer. These days everyone is facing pressure of competitors. In this world of growing competition, the only way to survive and grow, for an organization, in the market place is the proper marketing and promotion of its products. Same is the case with banking companies. There is large number of foreign and local banks working in the country and it has been noticed that they are emphasizing much on their marketing strategies. In this scenario, the key for a bank to succeed and attract its customers is adequate promotion of its products &services. The bank can attract and retain its customers through: Sales Promotion Advertisement

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Direct Marketing Public Relations

The most prominent and important way to attract a large number of customers is the advertisement of bank and its products/services. MCB Bank has adopted different approaches for the accomplishment of this purpose. Along with the advertisement, the bank is providing personal services to its clients with maximum security as other banks provide. Bank also encourages the public relation policy of marketing. Some brochures and promotional material has been printed but it is distributed mainly through the clients who visit the branch for their day-to-day business or through the customers who come to get information about new schemes launched by the bank.

3.3.4 PLACE The activities a bank undertakes to make products and services easily available or accessible to the customers. MCB Bank objective has been to expand its branch network to meet clients needs. Bank is well positioned and geographically poised, to cater for increased business demands, from its existing potential clientele. During last year under review, presently MCB bank has 1085 branches, spread all over Pakistan covering major business centers and principle cities. Bank plans to add more branches to his growing network in the ensuing years. At present, MCB BANK has opened all its branches at commercial and business areas or near to commercial areas so that the customers or clients face no problem in reaching the bank.

3.4 SELF EXPERIENCE

3.4.1 EXPERIENCE 1. Dressing (Suiting) When I was in university I was not used to formal dressing but due to strict norms and professional environment of MCB bank, I realized that how formal dressing is essential in business environment.

2. Regularity

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I was not a punctual student in university but after internship I came to know that punctuality and regularity is the core route to progress.

3. Punctuality I was not a punctual student in university but after internship I came to know that punctuality and regularity is the core route to progress.

4. Account Opening Before internship I have no idea that how to open an account but doing my internship tenure I came to know that what sort of formal documents needed to open an account.

5. Account Closing There are some steps for account closing Make sure all checks have cleared your bank account. Switch banking information with employers and vendors. Before you close the account All your bank. Before you make a trip to the bank Go to your bank. Physically go into your bank to close the account Get your money. Request the balance in your account at the time of closing. 6. Account activation After opening new account I know how to activate that account. 7. Interaction with peoples In my internship period I met different types of peoples with having different thoughts. 8. Facing stress environment In bank it is always difficult to deal with diversified public. It was the core reason of stress, after internship I utilize efficiency, effectiveness in right perspective to cope up with the stress.

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CHAPTER 4 SWOT ANALYSIS

4.1 SWOT ANALYSIS 4.1.1 STRENGTHS

MCB is Successive and Market oriented. MCB investing huge sums on HR development and training. Customer default rate is lower as compared to other banks. MCB has the largest ATM network in the country. Meeting the challenges of latest Technology by introducing Smart card remit express, mobile banking etc. One of the major strengths of MCB is that it has very stable deposit base. MCB is largest private bank in Pakistan with around 1000 branches, which cover almost every part of Pakistan. The bank enjoys competitive advantage over other banks in Pakistan. The bank enjoys competitive profitability in the industry. MCB has captured majority of potential customers in Pakistan. MCB has the accounts of big organizations like OGDCL, PTCL, EFU, PTC etc.

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4.1.2 WEAKNESSES
Low motivational level Employees, dissatisfaction due to ill treatment and improper reward system. High Employees Turnover. Decision making process is very slow. It is not having greater no. of branches abroad. Though ATM network is the largest in Pakistan, still some potential areas dont have the ATM. MCB RTC is useable only in Pakistan. Some management positrons needed are not professional. Although most of the branches are computerized now, still some important branches dont have computers. Less efficiency of SYMBOL System due to disconnectivity

4.1.3 Opportunities
Leasing sector is growing in Pakistan for the last two to three years which provides opportunity to MCB to go ahead in this area as well. MCB is providing Consumer Finances at comparatively lower rates which paves a way to grab more customers Financing to small/medium cottage industries will definitely increase its advances and profitability as well. Islamic Trading Based Banking can enhance the business of the bank. Overseas Operations. Launch the more effective and modern banking online system.

4.1.4 THREATS
Other private commercial bank with sound profitability is also a threat to MCB e.g. UBL, Alfalah, HBL etc. For the last of many years, Pakistan is facing economic and political instability which is a big threat. 37

 Afghan war and Iraq war has a deep effect on the economy of Pakistan, which may affect MCB. Foreign banks are flourishing in field of consumer financing. People dont prefer banking culture. They mostly prefer cash transactions

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CHAPTER 5 CONCLUSIONS & RECOMMENDATIONS 5.1 CONCLUSION

With Cooperation of all branch members, I have been able to learn and experience many new things related to the banking sector and the banks workings. I am able to handle the public with respect to many different workings on many different instances and also in account opening for customers and can handle many other tasks as well. Finally I concluded that MCB is a good organization for a person for his long term career workings. Overall working and environment of the bank is very comfortable and the staff is very helpful and respectful of each other and it still maintains a professional environment. Management of the bank is very strong. Employees of the branch work more than their working hours and all the workings take place in a very friendly atmosphere that does not induce pressure on the person working there. It also shows their loyalty and commitment to the organization. This branch is relatively small and has climbed its way up very quickly and all that only because of the employees efforts and consideration for each other. Understanding and the effective management of the human resources is the most difficult challenge faced not only by the bank but by all the organizations. Even though the people have been sacrificed in the new organizational developments, it is becoming clear that the true lasting competitive advantage comes through human resources and how they are managed. MCB seems to not focusing on this highly critical issue as the job satisfaction level of the employees working at MCB, was quite low.

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RECOMMENDATIONS 5.2 RECOMMENDATIONS After doing a deep study and witnessing everything that goes on in a branch, I would then like to make the recommendations that; First of all, the management needs to overlook the major problems that the organization is currently facing and then develop strategies to eradicate them. Some of the suggestions that I would like to give at the end are:

5.2.1) PROMOTION AND MASS MEDIA PUBLICITY MCB Bank can improve its Marketing strategies to acquire more promotion and mass media publicity by the use of effective channels of promotions like TV, Newspaper Advertisements. It can also improve its magazine publication that it releases each month.

5.2.2) INTRODUCE FRIENDLY PRODUCTS In order to compete in the ever-expanding market both nationally and internationally, introducing new and efficient products is one of its major requirements. 5.2.3) CENTRALIZED STRUCTURE Centralized Structure that enables employee involvement needs to be formed.

5.2.4) BETTER REWARD SYSTEM Better reward system is one of the most important requirements in order to reduce the problem of Employee retention and improve Employee motivation.

5.2.5) CONTINUOUS TRAINING OF EMPLOYEES Creation of enhanced performance appraisal system Implementation of enhanced Marketing system Continuous lecture on better communication of staff with customers

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5.2.6) ATM MACHINES MAINTAINED ATM machine must be maintained properly to make it more convenient for the customers and to decrease the load of work to the employees of the bank especially in the salary days.

5.2.7) STAFF MEMBER I have observe during working that there need of more staff due to pressure of work MCB should hire more employees for better performance even any employee when take leaves Manager has no choice to his work to other employee so this situation built high pressure.

5.2.8) JOB ROTATION FOR EMPLOYEES MCB should to make the strategy where make the job rotation of employees

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REFERENCES
Kotler P. & Armstrong G (2009).Principles of Marketing, Edition 12, Pg 370-371. Michal Armstrong & Angela Baron 2004 Introduction: http://mcb.com.pk/mcb/about_mcb.asp Vision / Mission: http://mcb.com.pk/mcb/mission_vision.asp Corporate information: http://mcb.com.pk/mcb/corporate_information.as Products/Services:http://www.mcb.com.pk/uploads/FCG/docs/Annual%20Report%2 02010 1.pdf Annual Report MCB 2011 Banking Statistics of Pakistan 2011

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