Final Internship Report On MCB 2013

Institute of Business & Information Technology
University of the Punjab Page 1

MCB Bank Ltd.
Gulshan-e-Ravi Branch, Lahore.

Submitted By Iqra Younas
F10BA113
November 19, 2013
IBIT (Punjab University), Lhr


DEDICATION
I dedicate my internship report to my dear parents who pray for me every single
moment of my life whenever I feel difficulty and give me encouragement to complete
this report on time.
I also dedicate my entire report to respected employees of MCB bank Gulshan Ravi
Branch, Lahore especially Mr.Zial-ul-Hassan and Mr. Asif Iqbal Siddique for their
guidance during my entire internship and helped me in learning many new things.
They are too much supportive and give me different tasks to increase my knowledge
and guide me to accomplish these tasks.


ACKNOWLEDGEMENT
First of all Im grateful to ALLAH ALMIGHTY, who bestowed me with health,
abilities and guidance to complete the project in a successful manner, and without
HIS help I was unable to perform these tasks.

With prayers of my parents and support of my teachers it is impossible for me to
formulate and complete this report; I pay high regard to them.

The account of acknowledgement will be incomplete if I do not express my
appreciation to the staff of MCB Gulshan-e- Ravi Branch, Lahore as they guided me
and assisted me to perform different activities during the whole period.


Table of Content
Dedication---------------------------------------------------------------------------------2
Acknowledgement------------------------------------------------------------------------3
CHAPTER 1-------------------------------------------------------------------------6
The Organization---------------------------------------------------------------------6
Executive Summary------------------------------------------------------------------7
History and Background-------------------------------------------------------------8
About MCB----------------------------------------------------------------------------8
Mission and Vision-------------------------------------------------------------------9
Strategic Objectives-------------------------------------------------------------------9
Our Values-----------------------------------------------------------------------------9
Board OF Directors------------------------------------------------------------------11
Awards and Achievements---------------------------------------------------------13
General Profile of A Company---------------------------------------------------14
Principles of Performance---------------------------------------------------------15
Products and Services--------------------------------------------------------------16
1. Personal Banking---------------------------------------------------------16
2. MCB corporate Banking------------------------------------------------25
3. MCB Virtual Banking---------------------------------------------------26
4. MCB Islamic Banking--------------------------------------------------27
MCB Competitive Strategies-------------------------------------------------------28
Organization Structure of MCB ---------------------------------------------------30
Departments Of MCB--------------------------------------------------------------31


Accounts Department---------------------------------------------------------------31
Current Department ----------------------------------------------------------------31
Remittance Department------------------------------------------------------------32
Clearing Department-----------------------------------------------------------------35
Cash Department---------------------------------------------------------------------38
ATM Network------------------------------------------------------------------------40
SWOT Analysis Of the Organization---------------------------------------------41
CHAPTER 2------------------------------------------------------44
Internship Activities-----------------------------------------------------45
First Week & Second Week--------------------------------------------------45
Third & Fourth Week----------------------------------------------------------53
Fifth & Six Week---------------------------------------------------------------60
New Things Learn during Internship-----------------------------------------64
CHAPTER 3----------------------------------------------------------65
Summary and Recommendation----------------------------------------65
Overall Summary of the Organization----------------------------------------66
Recommendation for Organization--------------------------------------------67
Recommendation for IBIT Department to improve its Curricular and Methods
of Teaching to BBIT students-----------------------------------------------------68
Specific recommendations for institute for the next internship in this
organization---------------------------------------------------------------------------69


CHAPTER 1
The Organization


EXECUTIVE SUMMARY
MCB Bank Limited (Formerly Muslim Commercial Bank Limited) has a solid foundation of over
50 years in Pakistan, with a network of over 1500 branches, over 750 of which are Automated
Branches, over 222 MCB ATMs in 41 cities nationwide and a network of over 12 banks on the
MNET ATM Switch.
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.
During my internship in MCB I worked in Account Opening, Remittances, Advances, Clearing
Department and I successfully completed all the task/duties that were assigned to me
ALHUMDULLILAH.
During the course of internship I learned about different functions performed by Account opening,
Remittances, Clearing Department and bank as a whole. I also learned banks correspondence with
their customers and within branches. I learned about documentation requirements and record
keeping for different activities and processes, especially the documentation requirement for
different kinds of financing facilities.


History & Background

In the banking sector companies as well as large local and multinational concerns. MCB is also
catering to the growing middle class by providing new asset and liability products. MCB looks with
confidence at year 2005 and beyond, making strides towards fulfillment of its mission, "to become
the preferred provider of quality financial services in the country with profitability and
responsibility and to be MCB Bank Limited (Formerly Muslim Commercial Bank Limited) has a
solid foundation of over 50 years in Pakistan, with a network of over 1500 branches, over 750 of
which are Automated Branches, over 222 MCB ATMs in 41 cities nationwide and a network of
over 12 banks on the MNET ATM Switch, which as a combination is considered to be the core
competence of MCB.
MCB has become the only bank to receive the Euro money award for the fourth time in the last five
years. MCB won the "Best Bank in Pakistan" in 2005, 2004, 2003, 2001, and in 2000 the "Best
Domestic Bank in Pakistan" awards. In addition, MCB also has the distinction of winning the Asia
Money 2005 & 2004 awards for being "The Best Domestic Commercial Bank in Pakistan".
Ten years after privatization, MCB is now in a consolidation stage designed to lock in the gains
made in recent years and prepare the groundwork for future growth. The bank has restructured its
asset portfolio and rationalized the cost structure in order to remain a low cost producer.
MCB now focuses on three core businesses namely Corporate, Commercial and Consumer
Banking. Corporate clientele includes public the best place to work".
About MCB:
MCB Bank Limited, with more than 60 years of experience as one of the leading banks in Pakistan,
was incorporated on July 9 in 1947. The bank has journeyed remarkable tenure of more than half a
century of competitively edged and well positioned heights of success by deploying quality
banking, heads on technological developments, professionally leading management and prudent and
ethical work methodologies. MCB was nationalized along with other private banks in 1974 as part
of Government of Pakistan's economic reform movement and was later privatized to Nishat Group
lead consortium in 1991.
Since privatization, MCB's growth has been phenomenal. Today, MCB in one of the largest foreign
banks in Sri Lanka, the first bank in Pakistan to launch Global Depository Receipts (GDR) in 2006,
has strategic foreign partnership with Many bank of Malaysia which holds 20% shares in MCB
through its wholly owned subsidiary Many bank International Trust (Labuan) Berhad since 2008,
has international indirect regional presence in Dubai (UAE), Bahrain, Azerbaijan, Hong Kong and
Sri Lanka and serving through a domestic network of over 1,150 branches and over 690 ATMs
across Pakistan with a customer base of 4.96 million (approx.)
MCB is reputed as one of the soundest financial institution and as one of the leading banks in
Pakistan with a deposit base of PKR. 545 bln (approx.) and total assets of PKR 766 bln (approx.).


The bank is versed as one of the oldest and most responsible banks in Pakistan and has played
pivotal role in representing the country on global platforms while being one of the few institutions
that are recognized and traded in the international market.
The bank has also been acknowledged though prestigious recognition and awards by Euro money,
MMT, Asia Money, SAFA (SAARC), The Asset and The Asian Banker.

OUR MISSION AND VISION
Vision Statement:
To be leading financial services provider, partnering with our customers for a more prosperous and
secure future.
Mission Statement:
We are team of committed professionals, providing innovative and efficient financial solutions to
create and nature long-term relationship with our customers. In doing so, we ensure that our
shareholders can invest with confidence in us.

STRATEGIC OBJECTIVES
Delivering remarkable returns to stakeholders, sustainable performance, exceeding market
and shareholder expectations.
Providing value added services through operational expansion, geography and upgraded
systems.

Building a corporate culture of equality, trust and team spirit as we remain dedicated to be a
socially responsible organization.

OUR VALUES
These are the standards and principles which determine our behaviour and how we interact with our
customers and each other:


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. 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.
3. 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.

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.
5. 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.


Board of Directors of MCB



AWARDS & ACHIEVEMENTS

2010 MMT Award: Worlds Best Mobile Money Transfer Bank
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


General Profile of a Company

Overseas Branches

Organization Profile
Name of Organization: MCB Limited.
Chairman: Main Mohammad Mansha
Location: Gulsha-e-Ravi Brach, Lahore.
Branch code: 1433
Phone: +92-042-7727456 / 7720054
UAN: 111-000-622 (MCB)
Website: www.mcb.com.pk


Principles of Performance
1. Customer Focus
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 exceeds their expectations.
2. Quest for Quality
MCB strives to achieve excellence by ensuring that every moment of our time is spent
in adding value, making sure that we do things right, first time, and every time. With
this quest for quality, MCB has always taken initiatives in 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.
3. Employees Respect
MCB encourages diversity and treat each of our employees with fairness. MCB gives
constructive feedback for their continuous development and seek suggestions from all
employees for further improvement. The bank ensures that quality performance is
acknowledged and rewarded and exercise utmost responsibility in decision-making
with regards to our employees.
4. Team Based Approach
MCB believes in achieving its Mission and Vision by working together as a combined
group. MCB treats its employees as its internal customers and ensure that the
requirements of internal customer focus are always met. Equipped with in-depth
product knowledge, and recognizing the strengths in each individual, the bank strives
for optimum-results from our co-workers and bringing out peak performances by
working towards common goals and objectives in today's dynamic banking
environment.
5. Good Corporate Citizenship
MCB seeks to continuously improve the quality of life in our communities. The bank
realizes that it has a responsibility to the society in which it operates and it seeks ways
of playing a positive role for the betterment of the community at large for a progressive
environment, better living and a brighter future.


Products and Services
Personal Banking:
Deposited Account:

Basic Banking Account:
A Simple Account to develop the habit of saving for beginners like students. Minimum deposit by
opening an account is 1000 Rs/-, no minimum balance required, no monthly or annual charges .

Features
The account is opened with a minimum initial deposit of Rs.1000.
BBA is a Rupee Current Account (non-remunerative account).
There is no minimum balance requirement, and hence no monthly account maintenance
charges apply.
In case where balance in BBA remains ZERO for a continuous 06 month period, the
account will be closed automatically.
Each month the account holder is allowed 02 deposits transactions (either cash or clearing)
and 02 withdrawals (cash or clearing). All customer initiated transactions over and above
this limit will be charged Rs. 25 per transaction
All ATM transactions conducted through electronic channels (i.e. ATM, Debit Card POS
machine, Virtual Banking) are exempted of transaction fee. Hence the customer is allowed
unlimited transactions through these channels.
ATM cards are issued to all BBA account holders in on-line branches. Card issuance and
annual fee will be recovered as per Schedule of Bank Charges.
ATM transaction charges on balance enquiry / mini statement and on usage of non-MCB
ATMs will apply as per Schedule of Bank Charges.
Statement of account to be mailed as per existing policy of the Bank. Charges for duplicate
statement will apply as per Schedule of Bank Charges.


Eligibility:
Low income individuals are eligible for opening BBA with single or joint account type.
Existing individual account holders can also convert their regular Savings or current account
into Basic Banking Account.
This facility is not offered to non-individuals
Pak Rupee Current Account
MCB Bank offers a variety of current accounts to cater the everyday transactional needs of various
customers Account.

KEY POINTS
No restriction on Withdrawals and frequency of transactions
No profit is paid on Current Accounts
Service Charges are recovered as specified in the Schedule of Charges
No Zakat is to be deducted on Current Accounts.
Free of cost account statements are dispatched on half yearly basis within one week after the
mid-year closing. If any customer wishes to receive the account statement other than the half
yearly cycle, charges will be recovered as per the Schedule of Bank
Charges RS.50
Account opening with Rs.1000
Minimum maintain balance Rs.10000 if less then minimum limit Rs.50 will deduct

Eligibility
Individuals (Single/Joint)
Firms (Sole Proprietor Partnership)
Companies (Public and Private Limited), Trust/ Clubs/ Societies and Associations are
eligible to open Current Accounts.
Pak Rupee Savings Account
MCB Bank offers a wide of savings products that suit short-term growth and transactional needs.
Our savings accounts offer attractive profit trades as well as flexibility to transact.
daily transactions with a limit on maximum withdrawal amount through the ATM machines.

KEY POINTS
Offers the opportunity to small and medium sized depositors (individuals only) to earn
attractive returns on their deposits. Cash withdrawals takes place only through ATM/POS.


Individuals can open an account with a minimum initial deposit of Rs. 1,000.
Profit is calculated on a monthly basis and credited to the account after each calendar
quarter
All ATM transactions conducted through electronic channels (i.e. ATM, Debit Card POS
machine, Virtual Banking) are exempted of transaction fees. The customer is allowed
unlimited transactions up to available balance in the account through these channels.
The profit is calculated only on minimum deposit balance between Rs. 10,000/- and Rs.
300,000/- during a month, irrespective of the balance available in the account (as per
prescribed slabs). This range can be changed by the Bank any time without giving prior
notice to the customer (as and when required).
Profit is calculated monthly, based on the minimum balance of the account during the
month. In case minimum balance exceeds the ceiling of Rs. 300,000/- in a month, profit
would only be paid on Rs. 300,000/-
MCB Smart Savings account can be merged with the regular PLS Savings account any time
by giving 3 months notice to the customers at the discretion of the Bank.
The profit rates are estimated/provisional and subject to change any time at the discretion of
the Bank.
Service charges would be applicable as per Bank policy if the balance goes down below the
prescribed minimum balance.
Cheque book would not be issued to the account holder. ATM Card would be issued to the
customer for cash withdrawals.
A customer can open only one MCB Smart Savings Account in the Bank, in case a customer
is found to have more than one Smart Savings Account, the Bank reserves the right not to
give the profit or recover profit if already paid to the customer on their account/s.
Zakat is deducted as per the policy. Withholding Tax is also deducted from profit (where
applicable) as per Income Tax Laws

Eligibility
Only Individuals (Single or Joint) are eligible to open PLS Smart Savings Account.
Non-Individuals like Proprietors Company, Partnership, Trading, Collection accounts etc
are not eligible.
Foreign Currency Savings Account
MCBs Foreign Currency Savings Account offers you attractive returns on your Foreign Currency
investment.
You can invest in any of the four currencies i.e. US Dollar, UK Pound Sterling, Japanese
Yen or Euro
Your foreign currency account is exempted from Zakat and withholding tax


Foreign Currency Current Account:
It offers you the convenience of unlimited withdrawals such as to access your funds whenever you
want without any notice. There no limit on the number of transactions you make in a day.

KEY POINTS
Open your account in US Dollar, UK Pound Sterling, or Euro.
Open for as little as US$ 500 or equivalent.
Unlimited transactions at your branch.
Free Foreign Currency cash deposit and withdrawal facility.
Rate of Return directly linked with international market
Profit paid into your account every six months.
Foreign Remittances facility available.
Countrywide network of Foreign Currency Branches.
Cash withdrawal in PKR equivalent
Network of over a thousand branches, and hundreds of online branches, at convenient
locations.
General Inquiry e.g. ATM Locations, Product Information etc.
Financial Services e.g. Account Balance Inquiry, Debit Card, Transaction detail, bill
payments etc
Non-financial Services e.g. Internet Banking activation etc.
Bank Account Statement and Cheque Book Request.

Eligibility
Only Individuals (Single and Joint) are eligible to open PLS Savings Accounts.
Pak Rupee Term Deposit
MCB Term Deposits offer attractive short to mid-term investment options with flexibility,
convenience and security. With various tenor options available, customers can choose one that suits
their needs. This is combined with different profit pay-out options and the added facility of being
able to avail credit facility against their deposits.
Saving 365
The MCB Saving 365 calculates profits on a daily product basis and gives you the facility of
unlimited withdrawals.


KEY POINTS
It is a checking account and there is no restriction on number of withdrawals and deposits
transactions.
Account is opened with minimum deposit of Rs.300,000/-
Profit is calculated on daily product basis on the balance of Rs.300,000/- and above.
However, if balances in the account fall below Rs.300,000/- on any day, the product will be
considered as well and the profit will be paid as per the rates notified by the Bank on half
yearly basis.
All other terms and conditions including rates of profit, Zakat and Withholding tax
applicable to PLS Savings Bank Accounts are applicable.

Eligibility
All types of customers are allowed to open PLS- 365 accounts except Development
Financial Institution.
Smart Dollar Accoun:
The dollar khushali account, a dllar based account was introduced in 1993 at selected MCB Bank
branches. Today you can open a smart dollar
account at over 200 branches in Pakistan with a
minimum amount of USD 10,000.

KEY POINTS
The minimum amount to be placed under
this product is USD 100, 00.
Complimentary Pak Rupee account without minimum balance requirement.
Free Lockers Facility
Free of Charge Bank Statement & Smart Cards
Discount (Up to 50%) on processing charges of Personal Loans & Car Financing.
Preferential rates on consumer loans.
Waiver on collection charges for crediting the amount in Foreign Currency.
No Charges on Standing Instructions.
In case of any change in the above features, prescribed procedure by RBG will be
applicable.

Eligibility
Individuals (Single & Joint), Firms, Companies.


Kushali Bachat A/C (Kba):
This is an advance form of PLS saving a/c, in this type of account. The minimum balance
requirement for this type is Rs. 2500/-. There is also restriction on the number of withdrawals as
well, i.e. up to 4 times in a calendar month. For maintaining this extra balance the customer gets the
benefits of profit calculation on daily product basis and also free service of standing instructions of
paying utility bills and HBFC installments. All other rules of saving account are applicable.

KEY POINTS
Minimum balance requirement as specified in the Schedule of Bank Charges.Rs.20,000
Profit provisioning/ accruals are made on Daily Closing Balance of the day.
Profit is disbursed /paid on half yearly basis as per the rates notified by the bank.
Free of cost Account Statement is dispatched on half yearly basis.
Zakat is deducted as per the Governments and Zakat Ushr Directives. Zakat is not deducted
on the accounts of Non- Muslims and where Affidavit is provided.
Withholding Tax is deducted on Profit as per the Governments policy.

SAVINGS XTRA
Grow with MCB Xtra by saving more and earning greater
profit.
MCB Savings Xtra Account offers you a wide range of
attractive profit rates.

KEY POINTS
Initial balance for account opening required Rs.1000
Minimum balance maintain limit Rs.100000
The higher your balance, the higher your profit.
Now avail attractive rates up to 8.5%.*
Profit calculated on monthly basis.
Profit paid into your account semi-annually.
No joining fee on Debit/ ATM Card.
50% discount on lockers.
Cash deposit and withdrawal facility at hundreds of branches nationwide.
Unlimited number of ATM withdrawal transactions.
3 free withdrawal transactions through the branch every montths


Mahana Khushali Bachat
MCB Monthly Khushali Scheme provides you with a steady income every month. Just purchase a
Monthly Khushali Certificate and you will enjoy a steady income of your total deposit every month.
BUSINESS ACCOUNT
MCB Business Account lets you build your business through the accrued savings from discounted
transaction fees, and more.

KEY POINTS

Higher the balance the higher the number of free transactions.
Open a Business Account with Rs.50, 000 only.
Unlimited free cash deposit and withdrawal facility at hundreds of branches nationwide

SPECIAL RUPEE TERM DEPOSIT (STD):
The Special Rupee Term Deposit is governed under the PLS rules, but offers the depositor a stable
rate of return for a fixed maturity. It is a mandatory requirement for booking a Term Deposit to
have a checking account (Current/Savings) in the Bank. Product is available in the following tenors:
3 months, 6 months, 1 year, 3 years & 5 years
The minimum amount to be placed under this scheme is Rs.1000, 000/- (amounts can be booked in
multiples of Rs.1000).
Each tenor is divided into 3 categories based on the deposit amount.
Rs.1, 000,000 to less than Rs.10, 000,000
Rs.10, 000,000 to less than Rs.25, 000,000
Rs.25, 000,000 and above

SMART FOREIGN CURRENCY FIXED DEPOSITS
The minimum amount to be placed under this product is USD $ 10,000.
Interest rates are offered based on the amount of deposit.
Free Lockers Facility
Free of Charge Bank Statement & Smart Cards
Discount (Up to 50%) on processing charges of Personal Loans & Car Financing.
Preferential rates on consumer loans.


Interest on the smart foreign currency fixed deposits is paid on the date of maturity of
deposit for 3 and 6 months tenor. Deposits booked for 1 year is paid interest on a half yearly
basis.
Cash payment of Interest amount is not allowed.
Minimum retention period is 01 month, irrespective of the tenor for which the deposit is
booked. In case depositor wishes to encash the deposit before completion of one month,
only principal amount will be paid to the customer. If customer wishes to encash the deposit
after one month but before maturity, the branch will pay interest at the Savings
Rate for the number of days completed.
In case of any change in the above features, prescribed procedure by RBG will be applicable.
2. Loan Products
MCB Business Sarmaya
MCB Business Sarmaya is the best Running Finance facility against your residential property
which empowers you to manage your business dealings better. So act today and get MCB Business
Sarmaya and thus improve your business, avail lucrative opportunities and expand your business,
with absolute satisfaction of cash flows.

MCB Car4u
Life is like a chess board. You plan your career options. You analyze your business moves. But
when you really want to improve your life, you make a power move. MCB CAR4U Auto Finance is
the power move that assists you in more ways than you ever imagined. It is affordable, with lowest
mark up, flexible conditions, easy processing and above all, no hidden costs.

MCB Pyara Ghar
Some destinations require a long wait. Like waiting for a home of
your own. But with MCB Pyara Ghar it is now easy to step into your
home and start living a real life.
MCB Pyara Ghar is an ideal Home Finance from your own bank that
lets you Purchase, Renovate or Construct your home the way you
have always wanted. Having your own home was never so easy
Easy Personal Loan
MCB Easy Personal Loan provides you with the financial advantage
to do things you've always wanted to but never had the sufficient
funds for. Take that much-needed holiday. Buy a car. Refurnish your
house. Purchase a new TV. Finance a better education for your
children.


MCB Master Card

Since the beginning of time, people have tried to find more convenient way s to pay, from gold to
paper money and Cheques. Today, money is moving away from distinct hard currencies and
towards universal payment products that transcend national borders, time zones, and, with the
Internet, even physical space. Plastic or "virtual" money, credit, debit, and electronic cash products,
inevitably will replace cash and Cheques as the money of the future.

MCB Rupee Traveler's Cheques

MCB Rupee Traveler's Cheques were first introduced in
1993 as safe cash for traveling and travel related purposes.
The product has been extremely popular and is preferred
over cash by customers while traveling and in all walks of
life. MCB Rupee Traveler's Cheques- The safest way to
Carry Cash

3. Online Services

MCB ATM Services
With a solid foundation of over 50 years in Pakistan, with more than 750 automated branches, 269
online branches, over 222 MCB ATMs in 41 cities nationwide and a network of over 12 banks on
the MNET ATM switch, MCB is positioned at the forefront of the banking industry in Pakistan.
This success has been possible because of a never-ending drive to achieve higher levels of
excellence, constantly striving to raise the level of performance.

MCB Mobile Banking

At the forefront of technological excellence, MCB proudly introduces MCB MOBILE BANKING.
The convenience of accessing your account balance information and
mini statements whenever you want or wherever you may need them,
with comfort and peace of mind.


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 e-banking
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.

MCB Call Center
Keeping up with banking services can be tedious but not with MCB Bank, where phone service is at
your fingertips. Just dial our Call Centre from the comfort of your home or office or wherever you
happen to be. It offers basic banking services for your convenience, eliminating the need for you to
make unwanted trips to your branch.

MCB Smart Card
MCB now brings you MCB SmartCard -a secure and convenient instrument of payment with
unmatched functionalities. It provides 24-hour direct access to your
bank account.
The convenience and flexibility of MCB SmartCard will help you
live a smarter life. It not only helps you manage your expenses, but
also eliminates undue interest on your day to day credit card
transactions. Your balance is always within your reach and you
spend accordingly.

MCB Debit Card
Now MCB brings a secure, convenient and quick payment facility that enables you to do purchasing
by using your existing MCB ATM / MCB Smart Card as a DEBIT CARD.

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

Term Loans
MCB offers Short to Medium Term Finance to meet capital expenditure and short term working
capital requirements of our customers. The loans are structured on the basis of underlying project
characteristics and cash flows of the business.

Trade Finance Services


Under Corporate Banking MCB offers trade finance services that include an entire range of import
and export activities including issuing Letters of Credit (L/Cs), purchasing export documents,
providing guarantees and other support services year, 2 years, 3 years, 4 years and 5 year term
deposits.

5. Virtual Banking

MCB Virtual Internet Banking offers you the convenience to manage and control your banking and
finances when you want to, where you want to. MCBs Virtual Internet Banking facility is simple
and secure. And its free of cost. With MCB Virtual Internet Banking you can access any of the
banking services, 24 hours a day, 7 days a week and throughout the year.
MCB Virtual Internet Banking offers a wide range of online services which makes your banking
accessible anytime and from anywhere.

Detailed Account Summary of all listed accounts.
Mini-statements of each of the listed accounts showing recent transaction history for
that account(s).
Statement-by-Period of each of the listed accounts, based on the period specified.
Immediate or Scheduled Transfer of Funds between your own accounts, as well as to
third-party accounts setup as beneficiaries, maintaining accounts with MCB.
Scheduling of One-Time as well as Recurring Funds Transfers.
Payment of utility bills for registered Utility Companies.
Immediate or Scheduled Bills Payment. Scheduling of One-Time as well as
Recurring bill payments. Option for Full or 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.
Bulk Funds Transfer for Corporate Customers.
Cheques 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.


6. MCB Islamic Banking

MCB-Islamic Banking Group provides Shariah-compliant products and services both on the
liability and asset sides to various customers of all demographic segments to cater a wide range of
Working Capital, Capital Expenditures, Trade Business and Consumer requirements. In addition to
existing Shariah-compliant IB products, Islamic Banking Group also provides customized solutions
to its valued customers for execution of complex financial transactions. Furthermore, Islamic
Banking Group also provides Shariah advisory services in structuring of various syndicated
transactions for its valued customers. To facilitate its valued clients, MCB Islamic Banking has also
increased outreach of its dedicated Islamic Banking branches to the tune of 27 in 14 cities across the
country.

Deposit Schemes
For customers who are looking for a deposit opportunity where they can purse their funds and reap
halal returns on it, we offer the following products:
Al-Makhraj Saving Account
Al-Makhraj Ianat Account
Al-Makhraj Term Deposit
Fund Based Facilities
Ijarah Products
MCBs Islamic Ijarah, analogous to the English term 'leasing, is based on the Ijarah wa Iqtina
concept which means the sale of the asset to the lessee after the Ijarah has matured. Under this
scheme, MCB will be the owner of the asset, and the customer (lessee) will be given the asset to use
for a certain period of time in return for monthly rental payments. MCB will give a separate
unilateral undertaking that it will offer to sell the asset to the customer (lessee) at the maturity of the
Ijarah agreement at a price that may be equal to the security deposit amount, hence the term Wa
Iqtina.

Types of Ijarah
Car Ijarah
Equipment Ijarah


MCBs Competitive Strategies
To be competitive the Bank has further reinforced its position in the Consumer Banking arena by
streamlining and re-launching the consumer financing products and introducing more convenience
based solutions. With the re-launch of auto finance and house finance 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, both individuals
and companies. Similarly, those relationships, which were confined only to current account facility,
have grown into stronger business relationships. The branch network was expanded to Lahore and
Multan during the last year and recently been extended to Hyderabad and Faisalabad. The Bank
plans to further expand its Islamic Banking branch network to other metropolitan areas and also to
introduce new sharia compliant banking solutions to a wider range of customers for satisfying their
individual and business needs.
Some wide-ranging new strategic initiatives were also taken up which will be important for the
Bank in years to come. A private company has been formed in Hong Kong (fully owned subsidiary
of MCB) in 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.
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 eFinance 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


Organizational Structure of the MCB Branch


Departments of MCB

I did internship in Gulshan-e-Ravi branch which had the following departments. There was shortage
of staff hence a few persons were performing all duties. Therefore, there was overlapping of duties.

However there were following departments.
1) Account Department
2) Current Department
3) Remittance Department
4) Clearing Department
5) Cash Department

ACCOUNTS DEPARTMENT

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

CURRENT DEPARTMENT
This department maintains all formalities of the accounts and account holders like it account name,
account holders name, code number and full address. Different cheques debit and credit voucher
come from different departments like Token, Clearing, Remittances, Cash, Foreign Exchange,
Advances and posted against different accounts.


A working Journal called Manual is prepared daily which shown the balance accounts of all parties.
Mark-up and profit are calculated daily. That would be debited at credited from or to account
holders account after specific period of time.
Markup is debit from the account after every three month profit is credited to accounts after every
six month. New accounts are also opened in this department. The fund deposited in the MCB bank
can be classified under the main heads:
CURRENT ACCOUNT
SAVING ACCOUNT
TERM /CALL DEPOSITS

Remittance Department:

The need of remittance is commonly felt in commercial life particularly and in everyday 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 carrying the currency. MCB uses following instrument for
transferring of money:

Demand Drafts (DD)
Pay Order (PO)
Telegraphic Transfer (TT)
Mail Transfer (MT)

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. DD is of following two types:
DD payable
DD Paid Suspense a/c
In the first type as advice reaches for payment the immediately pay to the customer while in later as
DD presented by the customer, it is paid and the suspense account is debited.

Documentation
A printed application form is provided for filling in completely and signing by the applicant. After
depositing an amount of draft and commission of the bank, duly completed and signed by two
authorized officers, then it is handed over the applicant and credit order is dispatched to drawer
branch. Following are the pre-requisites for the processing of DD:
Bank Serial No
No. of DD
Central No
Test Key
Rs. 60 postage charges
0.02% withholding tax

Pay Order
For this kind of remittance the payer must have the account in the issuing bank. Pay order are more
liquid as compared to cheques because cheques may be dishonoured while PO cant be. It is written
order issued by the bank drawn and payable on itself. It is used for local transfer of money from one
person to another person. It is also used by the public for depositing money with Government or
Semi Government department.

DOCUMENTATI ON
The party who requires a pay order will get a printed application from the bank. He will fill it and
deposits the amount and commission. The bank charges are same as on demand draft.
Bank Serial No.
No. of PO
0.02% withholding tax
Rs. 60 postage charges

Telegraphic Transfer (TT)
In this case the authority is given from one bank to other on the behalf of the customer through
telecommunication to debit their inter office account through them and credit their parties account
mentioned in TT. It is an inter-bank transaction. Telegraphic transfer is an instant transfer of funds.


Through this method applicant can transfer money from one place to another place. There are two
types of TT; both types of TT are maintained in separate registers, test is applied by the manager of
every amount of TT.
Incoming TT
Outgoing TT

Applicant has to fill a form along with depositing amount to be transferred and bank commission.
MCB charges the commission at the same rate as in the case of demand drafts.

Documentation
Issuing Branch Name & Code
Beneficiary Branch Name & Code
No. of TT
Amount in words & Figures
Test key

Mail Transfer (Mt)
As the name shows, it is transfer of money in the shape of document through mail. Procedure is like
TT. The transfer of funds from one place to another by mail is called Mail Transfer (MT). The MT
can be foreign or domestic. The applicant who is desiring to remit the funds by way of Mail
Transfer can either deposit cash or ask the bank to debit his/her account with the cost of MT
including the bank charges. These all measures are for safe transfer of funds.

Documentation
Issuing Branch Name & Code
Beneficiary Branch Name & Code
Number of MT
Amount in words & Figure
Test key

Foreign demand draft
Foreign Demand Draft is just like demand draft. The only difference is that a bank issues FDD to the
bank of another country. It requires foreign exchange and it involves seven forms, which are to be filled.


CLEARING DEPARTMENT

All the external functions of clearing are carried by NIFT (National Institute of Facilitation
Technology) while the internal operations are performed by clearing department. It is just like any
courier service which takes the cheques of other banks and delivers the cheques of that branch to it.
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
clearing house. A clearing house 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 clearing house 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 clearing house, 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 State 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 officer collects
all cheques and enters them in clearing Register or in computer in the application of Java
Symbols. Then he affixes a stamp on these cheques and sorts out cheques of different banks and
prepares schedule for them. These cheques are sent to clearing house. Exchange of cheques takes
place through NIFT.
Further they settle their account. State Bank of Pakistan representative will work out the balances
and will settle their account from their balances with State Bank of Pakistan.

Types of Cheques

1. Transfer cheques:
These are those cheques, which are collected and paid by the same branch of bank.

2. Transfer delivery cheques:
These are those cheques, which are collected and paid by two different branches of the same
bank situated in the same city.


3. Clearing cheques:
These are those cheques, which are drawn on the branches of some other bank of the same
city or of the same area, which is covered by a particular clearing house.

4. Collection cheques:
These are those cheques, which are drawn on the branches of either the same bank or of
another bank, but those branches are not in the same city or they are not the members of
clearing house.

Functions of Clearing Department
To accept Transfer, Transfer delivery, clearing and collection cheques from the customers of
the branch and to arrange for their collection.
To arrange the payment of cheques drawn on the branch and given for collection to any
other branch on MCB or any other members or sub member of the local clearing house.
To collect amount of cheques drawn on members, sub-member of local clearing house, sent
for collection by MCB Branches, not represented at the local clearing house
Receiving and scrutinizing the cheques and other deposit instruments, and the pay-in-slip at
the counter.
Fixing the stamps.
Scrutiny and receipt by the authorized officer.
Returning the counter file to the depositor.
Certificate and confirmation by the officer in charge of the department.
Separating the cheque into transfer, transfer delivery, and clearing cheques.


CLEARING PROCESS (FLOW CHART):


CASH DEPARTMENT:

In cash department both deposits and withdrawals go side by side. This department works under the
accounts department and deals with cash deposits and payments. This department maintains the
following sheets, books, ledger of account:
Cash received voucher sheet.
Cash paid voucher sheet.
Paying-in-slip
Cheque Book
Cash balance book
Cash department is performing its job completely through computers. The following staff members
are performing their duties with patience and hard work. Only two peoples are working in cash
department named Mr. Ashraf OG-II and Mr. Arshad OG-III with one computer with them.

Cash Paid Sheet
The only instrument that can be used to withdraw an amount from an account is the Cheque book.
No payments are made by another instrument. Cheques can be of two types, they may be presented
at the counter and encased and the others are clearing or transfer cheques.
Cashier manually inspects the Cheque for following:
Signature & date
Cross cutting
Drawees a/c title
Amounts in words & figures
Two signatures at the back


The cheques should not be stated as post-dated. If in the Cheque there May discrepancy regarding
any of the aspects described above the cheque is returned to the customer for rectification. On other
hand if the cheque is valid in all respects, the cashier enters the necessary inputs in the computer
and posts the entry so that account balance is updated.
When cashier posts these entries, computer automatically display the balance before posting the
transaction amount, balance after posting. The cashier easily and quickly see whether the amount
being withdrawn so exceed the balance or within the balance. If the amount does exceed the balance
then it is upon the discretion of the manager to allow an overdraft and not depending upon the
customers reputation. If he does not allow an overdraft, the procedure is repeated again as
described for the mismatch of the signature Cheque is return.
The detail of notes (currency) is written on the back side of the Cheque. The cashier at the same
time maintains the Cash Voucher Received Record Sheet. Then once again inspect the
signature of the customer cancellation mark of checking officer and stamp of POSTED is placed
on cheque before hand over the cash to customer.

Cash Received
For depositing the cash into customers accounts, there is need to fill in the paying-in-slip giving the
related details of the transaction. This paying-in-slip contains the date, a/c/no, a/c title, particulars,
amount being deposited and details of the cash. There are two portion of the paying-in-slip. The
depositor signs the one part of the paying-in-slip one is retained by the bank to show an acceptance
of the entries made in the slip.
The different colour paying-in-slip are used for all the types of deposits. Only the slips related to a
particular type of a/c is acceptable by the bank. For example current paying-in-slip for current a/c
and saving paying-in-slips for saving a/c etc. The paying-in-slip serves as a voucher to update to
computerized transaction ledger. The transaction ledger is only updated by paying-in-slip and
Cheque. The cashier responsible to receive both the paying-in-slip and cash from the depositor. The
cashier check the necessary details provided I the paying-in-slip and accounts the cash and tallies
with the amount declared in the slip. If the amount does not tally with the cash given, the deposit is
not entertained until the customer removes the discrepancy.
On the other hand if the two amounts tally, the cashier fills in the Cash voucher received Record
Sheet and assigns a voucher no. to both the transaction being made in the sheet and the slip. This
voucher no. starts with one and continue by serial increments of one for each day till the closing of
the sheet, the cashier fills the voucher no, an account, cash day till the closing of the sheet. The
cashier fills in the voucher no, an account of, cash entry in the related type of a/c and he post his
initials on both part of the voucher. Then the cashier send both to the accountant who verifies all the
entries in the two documents, if the entries in the two documents, if the entries in the two documents
tally with one another, the accountant authenticates the two by singing on the two documents and
posting stamps on the slip. One part of the slip is then returned to the customer and other is given to


the computer operator. A very important check is that the dates mentioned into the two documents
must be the same.
The cashier posts the transaction entries in computer ledger. This ledger contains the a/c no, a/c
title, voucher no, voucher date, transaction code, transaction amount. After posting these entries,
computer display before posting balance and after posting. On every transaction computer generates
an output of transaction ledger. He assigns the stamp POSTED on the voucher to show voucher
transaction entries are posted. Checking officer receives this voucher and the compute output
transaction ledge, he manually inspects the entries of ledger and voucher. If both are tallied, he then
signs the ledger and put a mark of cancellation on the voucher. After the verifications from the
checking officer, cashier receives the voucher.

Cash Book Balance
At the end of the working day cashier is responsible to maintain the cash balance book. The cash
book contain the date, opening balance, detail of cash payment and received in figures, closing
balance, denomination of government notes (Currency). Its checked by manager. The consolidated
figure of receipt and payment of cash is entered in the cash book and the closing balance of cash is
drawn from that i.e.

Opening Balance of Cash + Receipts - Payments = Balance
The closing balance of today will be the opening balance of
tomorrow. This department is one of the most important
departments of the bank. All the books maintained in this
department are checked by office.

ATM Network
ATM stands for Automatic Teller Machine. This machine is
used to transact in one's account without intervention of
humans. These machines are basically used for taking cash,
confirming balances and requesting statements / cheque books.
MCB has the largest ATM network in the country at the moment with alm ost one ATM at each
online branch and also ATM terminals at International Airports. This network covers more than
the 27 cities of Pakistan including the provincial capitals and large commercial cities of the
country.
ATMs are operated through a card issued to the valued customers and by application of
Personal Identification Number (PIN number). A person can withdraw from any machine across
Pakistan with having an account in only one branch of MCB. This was only possible with the
help of online system. In this system all the machines are linked to central banking host at IRM
division Karachi through either satellite or telephone controller. This system identifies the card
holder and his PIN Number.


Now MCB has also entered into a contract with Cirrus which is a subsidiary of MasterCard.
This contract will enable an ATM card holder to use his account even when he is out of country
at all the ATMs where Cirrus logo is displayed

Green Cards:
Green cards are ordinary cards with a maximum withdrawal facility of Rs. 10,000/- in a day.
The annual fee for this card is Rs. 300/- only.

Gold Cards
Gold cards are special cars with maximum withdrawal limit of Rs. 25000/- in a day. These
cards are issued to the persons having more than Rs. 500000/- as their average balance.

International Cards
International cards are issued in collaboration with Cirrus and are useable all over the world
with maximum withdrawal facility according to the standards of Cirrus.

SWOT Analysis
Internal Factors:
Strengths
Weaknesses
External Factors:
Opportunity
Threads
STRENGTHS
The strengths of MCB are as:
MCB is the first Pakistani privatized bank and because of its quality management,
marketing, innovation in products and services is performing well in financial market.
Has established a good reputation in the banking market
Strict adherence with the banking procedures requirements, SBPs prudential regulation
requirements and its SROs and international banking requirement as well as to its own set
policies
Strong and its attractive products


Better focus on customer services and customization
Flexibility with the changing environment
Induction of the highly qualified professionals to change overall set up
Weaknesses
The noted weaknesses of MCB are as:
The majority of people are not well aware about the products of MCB.
Therefore it should advertise extensively especially RTC and Master Cards.
A behaviour 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. The bank employees should try to accommodate behaviorally all type of
customers.
In MCB there is lack of specialized skill because of job rotation policy of human resource
department. The bank should concentrate upon increasing its abilities on individual service
basis.
Mismanagement of time is another big mistake in MCB branches, the bank official time of
closing is 5:30pm but due mismanaging of time allocation and work the staff is normally on
their seats till 7:00 or 8:00 clock.
Process of development is bit slow due to its conservative approach
Never prefer to be a leader and prefer to be a follower of others
Slow improvement and acceptance of technological changes
More emphasis on deposit accumulation and less on their mobilization
Opportunities
Greater potential and opportunities for Credit Division if Liberal Policies being adopted.
Can grab more market share for its RTCs, remittances and forex department through
effective promotional and liberal policies.
Inclusion of highly qualified professional can change the whole scenario and position of the
bank if they have given the due liberty in performing their duties
Adoption of information technology will improve the customer services.
More mobilization of accumulated deposit is possible through innovative financing to
Agro Based Sector
Leasing


Personalized Financing
Threats
Change in government policies has affected the banking business. Still banks have to wait to
get permission of state bank. The freezing of foreign currency accounts is a vital example of
letting people not to trust on banks.
The Competition has become severe by the entrants of so many banks, So to exist one will
have to prove himself in its services through excellent management and will have to satisfy
its shareholders. Otherwise he will be out the market.
Employees unions have been allowed if not managed properly can affect performance.
The decrease purchasing power of consumer in the current economic situation of the country
affecting the business activity speed too much and the result is the low investment from the
investors in new projects can create problem for the bank because it is working a lot in trade.
Introduction of credit marketing by local and foreign banks is badly affecting the
mobilization of the MCBs deposits due to the non-presence of such department in it.
Introduction and adoption of information technology as well as promotion of the computer
culture by the local as well as foreign banks will definitely affect the services and business
of the MCB.


CHAPTER 2

Internship Activities


INTERNSHIP ACTIVITIES

Operation manager: Akif iqbal
General banking officer: Zia-ul-hassan
Personal banking advisor: Asif iqbal siddique

Starting Date: 24 July 2013
Ending Date: 4 September 2013

During the span of my internship training, I have worked in general banking operations for about
more than three to four weeks. I mostly worked in account opening and clearing department but less
work in remittance department due to short time period.
The following activities I have done during my internship time period and all the activities are
explained on the weekly / daily basis which I have learned the working and procedures that are
necessary for the processes.
First Week & Second Week

My first day in MCB, operational manager introduce me all the staff member of the MCB and
orientation of the account opening department, clearing department and remittance department. I
have worked in general banking operations for about three weeks and during my internship I mostly
worked in account opening department and clearing department and less work in remittance
department due to short period of time. I observed the account opening procedure, clearance of
cheque, lockers, issuance of ATM Card and fund or transfer of rupees in remittance department,
withdrawal of money, deposit of money and lots of things. I also found many difficulties to
understand the working of the branch. Now I explain the process and procedures I have learned and
performed during my internship program.
Account Opening Department
As an internee in Gulshan Ravi Branch MCB account Opening is my first assignment which is one
of the basic operation of the bank. Mr Asif Iqbal Siddiqui helped me a lot of things learn and guided
me about the procedure and precautions in opening an account in MCB. The process of opening an
account is very simple and easy anybody can understand.
First week I only observed the basic operations of operations of MCB for opening an account. He
told me the types of account and what procedure they will follow to open an account.


Functions of Account opening department:
Opening of account
Closing of an account
Issuance of cheque books
Issuance of ATM card
The customers can open following accounts:
Current Account (CD A/C)
Profit and Loss Sharing Account / Saving Account (PLS A/C)
Basic Bank Account (BBA A/C)
Fixed Deposit Account (FDR/TDR)
Signature of Specimen Card:
Signature specimen card is compulsory for opening an account in the bank. Without getting the
signature of the customer you cannot open the account. This signature of specimen card include
date, name of the bank, customer name and two signature which is taken by the officers from
customers signature must be difficult so that we avoid the faults and frauds.
KYC (know your customers)
KYC is also required for opening an account. It contains all the data of the customer like CNIC
number, title of account, branch code, branch name, permanent address of customer, mailing
address, type of a customer
Account Opening Procedure
When a client comes to the bank and makes a request for opening an account. The officer says the
first fill up a prescribed application form. If he/she to open a PLS A/C. Current A/C or any type of
account, then he/she has to fill a form according to the requirements.
Account Opening Form:
To open an account the account opening form must fill by the customer itself or account officer. In
account opening form the following information is entered:
Name of the bank
Branch code
Title of an account
Customer CNIC number (introducer and account holder both are required)
Permanent address
Current address


Initial deposit amount (almost 1000/==)
Type of account
Customer designation
Customer occupation
Nature of Business
Customers cell number or landline number
Three signature of customer or in case of if account holder is illegible then in place of
signature photographs of the account holder will be attached
For personal account next kin will be filled.
In case of partnership account, at least information of both the parties must enter.
In case of Joint account only authorized person will operate this account

Account Opening Register
The manager records the necessary details into this register and allots an a/c number from this a/c
opening register. This register is maintained for each type of account and the a/c numbers are
allotted serially. After opening a saving and current account every applicants 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.
Individual Accounts:
Only one person can operate this a/c. We can call it a personnel or individual a/c.
Application of Opening an account
Specimen signature Card
Attested photocopy Computerized National Identity Card (CNIC) or Passport. It is
requirement to verify the CNIC of the customer before opening the accounts from NADRA
Online System- VERISYS.
In case of a salaried person, attested copy of his/her service or any other acceptable evidence
of services, including but not limited to a certificate from the employer.
In case of illiterate person, a passport size photograph of the new account holder besides
taking left and right thumb impressions on the Account Opening From and Specimen
Signature Card.
Partnership Account:
For partnership a/c, along with the application form signature card. Other documents are also needed
Fill up the Account Opening form


Specimen Signature Card
Attested photocopies of CNIC of all the partners.
Attested copy of Letter of Partnership, duly signed by all partners of the firm.
Attested copy of Registration Certificate with Registered Firm. In case the partnership in
unregistered, this fact should be clearly mentioned on the Account Opening Form.
Authority letter in original form, in favour of the person authorized to operate on the account
of the firm
Joint Stock Companies:
Copies of the following documents duly certified by the authorized officer of the :
Purpose of the Board of Director for opening an account specifying the person(s) authorized
to operate the company account.
Memorandum and Articles of Association
Certificate of incorporation
Certificate of Commencement of Business.
Attested photocopies of CNIC of all the directors of the company.
Clubs, Societies and Associations:
Certificate of Registration issued by the Registrar of Cooperative Societies/Registration
Authority.
By-Laws/ Memorandum and Articles of Association of the Society containing official seal
of the Registration Authority.
Permission of the Registration Authority for Opening an Account in the name of
Association as Required.
List of members of the Managing Committee duly certified by the Registrar of Societies.
Resolution duly passed by the members of Managing Committee in their meeting regarding
opening and operation of account in the name of society.
Attested copies of CNIC of the authorized officials / persons.
Minor Accounts (Age below 18):
A minor is a person who has not attained the age of 18 years, if the Court appoints guardian
of his/her persons or property, then the period of his minority extends to the age of 21.
An account in the name of minor is allowed to open by his guardian, preferably jointly in the
name of guardian/minor or minors, payable to either or survivor opener of the account.
Tile of the Account is on the Minors name (As per Form-B) and word Minor be added to
the title of the Account.


In the account opening Application, the particulars of the Guardian will be filled out in the
column of Personal Information
Attested copy of Computerized National Identity Card (CNIC) of the guardian.
Attested photocopy of Form-B of the Minor.
Illiterate/ Photo/ Disable Persons Accounts:
Attested photocopy of CNIC.
Attested Photographs (three photograph shall be pasted on the Account Opening Form and
two will be pasted on Specimen Signature Card.
Left thumb impression and right thumb impression will be put on the Account Opening
Form and on the Specimen Signature card (SSC).
Account Opening Process Steps:
1) Customers comes into the branch and request for opening an account.
2) Personal banking advisor officer delivers the AOF to the customers
3) Customers fill this form or officers fill up the form by itself and take the relevant documents
from the customers.
4) Officer checks that all the fields in the account opening form must be filled and requires
document from the customers depend upon the type of the Account
5) Following documents are to be attached :
Account opening form
Specimen signature card (SSC)
Accounts Terms and conditions acknowledgement
Attested copy of CNIC
Copy of Employment or student Card and other verification documents as required
varying from case-to-case.
Know Your Customers (KYC) form
NADRA VERISYS
6) Obtained Customers Signature on the Account opening form and SSC. One signature card
will be used to capture per signature of the client (In case of Joint Account Holders use
additional Signature Card). Now take this form to and send to the operational manager for
further Verification and authorization.
7) After attached all documents, form will forward to the Operational manager
Verifies the account holder signature, affix stamp on it , signed on the form and write
his code on the form at specific place
This from is forward to the branch manager.
The branch manager further verified the form and signed on it.


8) At last completion of all the procedures and verification of the account opening form in the
Branch. For further verification the form will send to the main branch of MCB, Neela
Gumbad Branch Lahore and they will send to the head office in Karachi.
9) Customers service officers select SYMBOL BRACH TELLER module and entered
following information:
Insert Client Short which is used as a default name of the account holder whenever
an account is opened.
Input Client full name. pop-up window will be appear on the screen: Input or select
appropriate Account Number, CNIC number, and press ok
Insert Country Code, state, country of citizen, and area of the customer designation
Input address as written in account opening from.
In the next section of the same screen, insert Client Indicator as N Normal, S
Staff and V VIP account.
Select account execution and Client type then press F-10 or click save icon available
on tool bar.
10) Then System will generate the unique Client Number and pop-Up box appear on the screen
with the following message

SUCCESSFULLY OPENED DIGIT CLIENT NO xxxxxxxxxxxxxxxx

11) CSO note down the Client Number on the account opening form. In case of joint Account
holder separate client number will be given to each client.
12) After one week account opening procedure will be complete and application form will be
return to from the main branch to the Gulashan Ravi Branch of MCB bank
13) A separate account opening register is maintained by the account opening officer. In which
he entered the account number, date of account opening, and account holder name is record
and maintained by the every Branch of MCB.
14) Last step Client fill up the deposit slip. Write account number, account holder name, branch
name/code, date, and signature and write the deposit amount on the deposit slip and give to
the cashier. The cashier enters this amount to the account holder.
Cheque Book
Cheque book is issued to the customer when the bank accepts the A/C opening application form
and letter of thanks is received.
Issuance of Cheque Books:
When a customer opens an account with the bank, he is provided with cheque book for withdrawals
from his account. However, the first cheque book is given to the customer only when all the


required documents are checked. A cheque book contains ten, twenty five, fifty or hundred leaves.
The cheque book also carries a requisition slip for the issuance of the new cheque book. This slip is
duly filled and singed by the customer. The signature of the customer is verified by the bank and
new cheque book is issued to the customer and serial numbers of the cheque are duly entered in the
book of the bank. Along with the signature, person should also write his full name & address.
Letter of Thanks
After the approval account opening form and all documents from the head office the bank prepares
Letter of Thanks for the new customer. This act promotes good will among the customer.
PayIn Slip
This slip is used for depositing the additional amount. The bank will accept the Pakistanis notes. All
cheques and other instruments should be crossed before they are deposited for credit into the
account. There shall be no restriction on number of withdrawals in current account. An account
holder wishing to close his account must surrender the unused cheques to the bank. The current
account is computerized, thus it generate the statement of account for all account holders
periodically. Incidental charges of Rs.50 are beard by the account holder if its credit balance is less
than Rs.10000.
Further I have learnt the Classification of Accounts if customer not operates his
account for the long time:
Dormant Accounts:
Currents accounts not operated for 6 months and saving accounts not operated for one
year shall be classified as dormant accounts
Half yearly profit shall continue to be applied on saving account only
Inoperative Accounts:
Currents account not operated for 2 years and saving accounts not operated for 3 years
shall be classified as inoperative account
Half yearly profit shall continue on saving account
Unclaimed Deposit Account:
If a Current & Savings Accounts remains Inoperative for 08 & 07 years respectively will
be classified as Unclaimed Deposit Account. In addition to this, Bank Drafts, Government
Drafts, Payment Orders, Mail Transfers, Fixed/Term Deposits etc. remains outstanding for
10 years from the date of issuance will be classified as Unclaimed Accounts.


Banking Companies Ordinance 1962 under section 31 clearly defines that Banks are
required to transfer the Unclaimed Deposits to State Bank of Pakistan (SBP) on the
completion of a period of Ten (10) years without any delay.
Account Closure:
There is no. of reasons of closing an account. Some are listed below:
If customer desires to close his account
In case of death of one account holder
Bankruptcy of the account holder
If an account contain nil balance or not up to the requirement of rules.
Before closing any account, bank send letter to the account holder for informing him that his
account is going to be closed. There is need an approval form higher authority to close any
account.
For the purpose of account closing a form has been constructed for this process. Whenever the
clients want to close the account, the only responsibility of the bank is to collect the issued cheque
book forms the customers and to get the constructed application form of account closing completely
filed. After that payment of entire amount in the account is paid to the client
Customer presents duly completed account closure application to the personal banking
advisor.
Account opening officer :
Receives account closure application
Confirms Account balance from the Brach Teller Module.
Customer fills out the cheque of the total amount and presents this cheque to the
cashier.
Customer withdrawal whole money from their account
Cheque book is torn in front of the customers
Customer counts the cash and leaves from the Branch
Miss Neelam will help me in learning all these things during internship:
Learned about symbols (software which is used in MCB)
Check account balance
Account Transaction
Cheque book issuance requisition
ATM card, gold card, gold plus card, silver card requisition
SMs alert requisition


Change your home address requisition
Closing an account
Account statement requisition
Deposit slips fill
Attend phone calls
Lockers requisition

Third Week & Fourth Week
After spending two week in account opening department I went to the clearing department. Here Mr
Zia-Ul-Hassan who is the Branch Manager Officer told me about the process and procedure of
clearing and issuance of cheque books to the account holder. Every bank performs the function of
paying and collecting. The cheque drawn on other bank by the customer of the bank is collected by
the bank for or without charging fees is called clearing. .
My personal experience in the Clearing Department, which I have learnt as an internee. The
issuance of cheque book, clearing of cheque, prepare clearing voucher, apply for the lockers, returns
of cheque, and issuance of ATM card (Gold Card, Silver card, Gold Plus Card), enter data of ATM
card in SYAMBOL Application, inward and outward clearing , dealing with the customer.
Overview of Cheque:
Cheque book is safe custody instrument. Cheque is used for cash withdrawal and making payments.
Usually only one cheque book is issued at a time, however big concerns who need a number of
cheque books at a time, may ask the bank to stock as number of cheque books in their name and to
point their name on these cheque books. Bank debits the clients account for excise duty of
Rs.2.50/- per cheque and keeps the cheque book ready for the customer, as on his advice.
In case of loss of cheque book or requisition slip on cheque book the customer has to fill the Form
to obtain a new cheque book. It is issued by operations manager.

Cheque book requisition slip:
1) Customer must fill the cheque book requisition slip for new Cheque book or in case of loss
of cheque books.
2) Brach Manager Officer receives the cheque book requisition slip from the customer.
3) Manger officer signed on the requisition slip and the operations manager also signed on the
cheque book requisition slip
4) Following things are write on the requisition slip:
Account number of the authorized account holder


Account holder name
Date of issuance
Signature of the authorized person
Signature of the Branch Manager Officer
5) These slips will give to the operation manager. He will signed on it
6) Operation manager Log in to Cheque book Registration System (CBR).
7) Input Account Number & click on submit icon.
8) Next screen shows the customers account details. (At the bottom of the screen all the
9) Cheque Book Request that are linked to the customers account
10) Click to the option Proceed available on the above screen. Input Number of Leaves as
requested by the customer.
11) Click on submit icon, system saves the cheque book request with the New status.
12) Send to the main Brach of the MCB via mail by the Operation Manager
13) Returns the requisition slips to the Branch Manager officer
14) Requisition slips is save in the separate file
15) After one week cheque books will be received from the main Brach of the MCB
16) Requisition slips will be attached with the respective cheque books
17) Keep the cheque books in the safe custody under dual control
18) Starting and the ending number of the cheque book is write on the slips
Cheque Book Register:
The officer keeps and maintains the cheque book register Cheque book inventory and cheque books
issued are recorded in this register. When the branch manager officer receives the cheques books
following entries are done in the cheque book register:
First of all he write the date in the register
The account number for which the cheque book is issued
the number of leaves are also recorded in this register
Account holder name
Deduction charges
When the customer receives his cheque book, signed on the register
Bank Stamp is affix on the cheque books by the Branch Manager Officer. In case of illiterate
account holder cheque book, special stamp is affix on it.
Collection of Cheque Books by the Customer:
a) Retrieves the cheque book form the box
b) Detach requisition slip form the cheque book


c) Obtains customers signature on the cheque book requisition slip and issuance report ensure
that the signature are duly verified
d) Delivers the cheque book to the branch.
e) Customer collect the cheque book and leaves from the branch
Generates Daily Cheque Issuance Listing Report from MCB Reports and verify the details from the
entire requisition slip issued in a day. There is a report available in SYMBOLS that provides details
of the entire cheque books issued to all the account holders in the branch since the account opening
date.

CLEARING DEPARTMENT
Learning In Clearing Department:
My learning in clearing department during the training
Procedure of clearing a cheque
Checking the cheque
Inward and outward clearing
Different reasons of returning a cheque
types of clearing stamps
Funds transfer between two banks and branches is called Clearing. There are two types of
clearing
1. Outward clearing
2. Inward clearing
Outward Clearing:
Outward clearing is to send the cheque to the other branch
There are three types of Outward Clearing.
1) Same Day Clearing
2) Normal Clearing
3) Intercity clearing
Same Day Clearing:
In same day clearing send the cheque in the morning and receives the payment in the evening.
There are two conditions in the same day clearing.
Cheque will be 500000 or above.
Member of the same day.
Normal Clearing
In normal clearing send the cheque today and receive the payment next day. No condition will
impose in normal clearing like same day clearing.

Intercity Clearing


Clearing between two cities is called intercity clearing. In intercity clearing cheque will clear in two
or three days. To understand the process of clearing we first need to understand and comprehend the
workings and the purpose of the state banks institution called NIFT.

NIFT (NATIONAL INSTITUTIONAL OF FACILITATION TECHNOLOGY)

In the process of clearing NIFT plays a very important role.
NIFT (national institutional facilitation technology) has a very
vital role as it is the middle man in the purpose of clearing and
issuances of cheque books to the customer on demand of the
bank or branch. This institution has been formed by the State
Bank of Pakistan and it performs the duties of receiving all the
clearing cheques from all the branches of all the banks and
taking them to the state bank. At the SBP first the NIFT forms a
list of all the cheques from all the banks and then forwards it to
the SBP representative. That person categorizes all these cheques according to their respective
banks and branches and forms another list of his own. Then these sorted cheques are again given to
the NIFT agent and he then takes them to the head offices of their respective banks and from there
they are distributed to the respective branches also through NIFT. This way NIFT delivers all the
cheques to their parent branch form which they have been issued.

In the morning time I am receive the inward clearing from the NIFT employee and then I count the
instrument which I received and match with the summary which is also attached with these
instruments. Then given this instrument to the computer operator who posts these instruments. After
posting all these instruments then he again given me the instruments and I enter all these
instruments into the clearing sheet in his Debit side.

Outward Clearing:
When the account holder of our bank receives the payment from any other party in form of cheque
and the cheque is not of our bank or our branch and our account holder deposit it in his MCB
account then that cheque has pass from the process of outward clearing
All the cheques deposited in one day of other banks and then again sent the NIFT to the SBP which
sends then to the head office of their respective banks which through NIFT sends the instruments to
the respective branches from which they were issued. This process of outward clearing is exactly
opposite to the process of inward clearing which I explained. This process of outward clearing is
also of three days.
During my internship in clearing department I check that deposit slip and the cheque should be
properly scrutinized before accepting them.
Title and account number are mentioned


Amount tallies with that of cheque
The amount in words and figures are same
There are no unauthorized alternation
The amount, account number, and the title of account in the customer copy are same as in
the original pay in slip.
The pay in slip bears the depositors signature and contact number.

Inquiry of Instrument:
Following point should be properly checked:
The Cheques are not post-dated or undated or stale dated or invalid dated or incomplete dated
There is no unauthorized alteration on the Cheques
Payee name and drawer signature is present
Particulars of cheque should be written with permanent ink.
The amount in both words and figures is required and both should be match
Any endorsement and special crossing are in order

Steps / Procedure of Outward Clearing:
1) First of all receives the instrument from different customers which they present in our
branch.
2) Separate these instruments within city wise or intercity wise.
3) Giving the receiving slip to the customers.
4) Write Down the detail of these entire instruments which I receive from customers in to the
clearing register.
5) Paste the Cross Stamps and Clearing Stamp at front of these instruments face.
6) Paste the payees Account Credited stamp at the bank of these instruments
7) Calculate the amount of all these instruments
8) Prepare the clearing bundle cover
After each and every thing is completed now put all these into the NIFT bad and closed this bag
with seal. Than the third copy of delivery summery along with deposit slips keeps in our custody
and then enter all these vouchers into the clearing sheet in his Credit side so this is the complete
procedure of Outward Clearing.

Intercity Clearing:
SBP now revised his policies and introduces this concept. In order to clearing this instrument we
sent this cheque through CC (Cheque Collection). It took Five to Six days which time taking even
through the CC process is not finished.


Procedure of Intercity Clearing:
First of all receive the instruments intercity clearing wise
Giving the receive slip to the customers
Write down the detail of these entire instruments which I received from customers in to the
intercity Clearing Register.
Paste the Cross Stamp, Clearing stamp and intercity stamp at the front of instruments face.
Paste the payees account credited stamp at the back of these instruments
Prepare the clearing bundle for each city.
After each and every thing is completed now put all these instruments city wise into the separate
envelop of every city and put into the NIFT bag and closed this bag with seal. The process of
intercity clearing is different so I cant credit the particular account until or unless I am not receive
the NILL value voucher through NIFT and also receive the summery from NIFT about all these
instruments which I am sent separately into different cities. When I receive the NILL value voucher
then vouchers into the clearing sheet.

Memo on Cheque Returns:
Bank prepare the memo in which the details of objectives are given that for purpose we return this
instrument and charges 200/ per instrument
In inward clearing sometimes cheque are not passed due to some reasons then cheques are sent back
to NIFT along with cheque return memo. Some of these reasons are.
Cheque incomplete
Signature difference
Name difference
Clearing stamp required
Draws sign incomplete
Post dated
Payment stopped by drawer
Insufficient balance

Calculate the Difference Vouchers of Clearing:
Difference voucher means the difference between the Outward Clearing and Inward Clearing. If the
liabilities are outstanding on our side which means that our branch will pay this difference amount
than I will separate the H-O Credit Voucher. And if the liabilities amount so I will prepare the H-O
debit voucher.
If liabilities are outstanding on our site that made Credit Voucher.
If liabilities are outstanding on their side than made Debit Voucher.


Difference vouchers of clearing return
I also prepare the different voucher of those cheques which I return or Unpaid. Means those
cheques which our branch returned and those cheques which other bans returned our cheques which
we send for clearing and it had been rejected.
If liabilities are outstanding on our site that made Credit Voucher.
If liabilities are outstanding on their side than made Debit Voucher
Then finally enter all these difference vouchers in to the clearing sheet and balancing ith thr
computer so this is the complete procedure of Clearing

Cheques for Clearing:
There are three stamps put on each cheque, sent for clearing:
Crossing Stamp.
Manager Stamp
Clearing Stamp

Following information is entered in software by using BT or sometimes EOC .
Name of favouring party.
Name of bank on whom drawn.
Branch.
Cheque number.
Amount.

Cheque for Transfer:
When cheques are presented to be sent for internal transfer SYMBOL bank branches situated where
any will be entertained within minutes by that new online system, there are three stamps to be put
on face as well as on back of cheque.
Crossing Stamp (face).
Transfer Stamp (face).
Bank Manager Stamp on the back side,
This transfer facility is only available for MCB Symbol to Symbol Branches.

Cheques in Collection:
When cheques received in clearing are intra city then these are controlled under CC.
First of all, these cheques are recorded in day book then allotted number and then serial number.
Then a Performa is prepared in which Bank on whom was drawn, cheque number, amount,
beneficiary name are recorded. After completing that Performa cheque is posted along with
Performa.


Note:
All cheques of symbol branches are to entertained subject to the availability of the signature and up
to the satisfaction of the Officer

Fifth Week and Six Week:
Lockers
It is not an easy task to get the licence of opening the locker facility in the branch for every bank,
for this purpose the bank should get permission from State Bank of Pakistan who is the bankers
bank; without his permission nobody can provide this facility to the customers. The branch who
wants to get licence he must sent a written request letter to State Bank than the state bank office
visit this branch and see that is there enough place to provide the licence of lockers to this branch or
not? If they are satisfy they charge the licence fee from this branch.

Types of lockers:

Procedure of Use of Lockers
One key is given to the customer and the other key is handed over to any bank person who is the
authorized person, and the locker is opened with both keys.
The authorized person who keeps keys He/She note following things
Customer name
Signatures of customers
Time of lockers operating
Account number
Leaving time
Customers can use this locker during the banking hour that is 9: Am to 5: PM.
Small Size (Rent RS 1400 per Annum) 16% FED Rs.224
(Key Security Rs.2000)

Medium Size (Rent RS 2200 per Annum) 16% FED Rs.352

Large Size (Rent RS 3500 per Annum) 16% FED Rs.560


The locker will not be used or permitted to be used for any purpose other than the deposit of
documents, jewellery or other valuables etc. no property of an explosive or harmful nature and any
contraband items etc. will be deposited there in.

Locker Register
Sir Zia-ul-Hassan also maintains a separate register for lockers. In this register he writes the
following things:
Customer locker key number
Customer name
Account number
Serial no of customer locker number
Customer account number
Address of a customer
Landline number
Cell number

Whenever a customer want to use a locker then officer take the locker register and see the key
number and locker number. Then he note down the time at which customer come and give the key
to the customer. Then officer take the customers signature on the locker register. And also he signed
on it.

Remittance Department:
On six week, I went to the remittance department . This covers the services and products that Bank
offers to its customers for Funds Transfer.
Currently Bank is offering following Products & Services for Fund Transfer: (Locally &
Internationally).
Payment Order
Demand Draft (Local & Foreign Currency)
Telegraphic Transfer (Local & Foreign Currency)
Mail Transfer (Local Currency)

Demand Draft:
Demand Draft is a written order.
Drawn by one branch of a Bank upon another branch of the same Bank, or upon other
Bank to pay a certain sum of money


Accounting entry for DD issuance
It is issued by one branch of a bank and payable by another branch of the same bank or
another bank
Demand Draft is neither issued payable to bearer nor drawn on branches situated within the
same city.
It is to be ensured that the purchaser of Demand Draft is able to at least sign his name.
Thumb impression is not to be accepted on Funds Transfer

Parties involved in the Demand Draft
1. Purchaser: Is the person, firm, company or local authority.
2. Issuing or Drawing Branch: The Branch which issues a Draft on another Branch.
3. Drawee Branch: Is the Branch on which a draft is drawn.
4. Payee / Beneficiary

DEBIT PARTY ACCOUNT
CREDIT HO (specific branch of MCB on which DD issued

Accounting entry for DD Payable Branch.

DEBIT HO (Specific branch by which DD issued)
CREDIT DD PAYABLE

Once the DD present to the branch then the following entry will pass
DEBIT DD PAYABLE
CREDIT PARTY ACCOUT CREDIT


Payment Order
Payment Order is used for making payments within a city. Literal definition of Payment Order is as
follows:
A Pay Order is a written authorization for payment, made in a cheque form issued and payable by
the bank, to the person named and addressed therein on his giving a proper discharge thereon.

Parties involved in the Pay Order
Purchaser: Purchaser is a person, firm, company, Government/Semi Government Organization
or local authority.
Issuing/Paying Branch: These issues/pays on presentation of the instrument.
Payee: Payee is the person named on a bill to whom, or to whose order, payment is to be made.
Where a bill is not payable to bearer, the payee must be named or otherwise indicated therein with
reasonable certainly.
Charges must be recovered at prescribed rate.
Pay order should be prepared like demand draft.
A record of all issued and paid should be maintained
Accounting entries for P.O issuance
DEBIT: PARTY OR CASH
CREDIT: PAY ORDER ISSUANCE

Accounting Entry When Pay
DEBIT: PAY ORDER
CREDIT: PARTY
Telegraphic Transfer
1) Transfer of funds from one branch to another branch of the same bank or upon other bank
under special arrangements.
2) Telegraphic transfer is not negotiable
3) The funds are not payable to bearer
4) Minor cannot avail this facility

Parties Involved in Telegraphic Transfer:
Following are the parties involved
Applicant
Drawing branch
Drawee branch
Beneficiary
Full name of the beneficiary or account number should be mentioned in the application form.
Instruction regarding mode of payment should be obtained.


A record in the remittance outward register should be maintained.

Mail Transfer
Transfer of funds from one branch to another branch of the same bank within or outside
the city is called mail transfer.
Mail transfer is not negotiable
The procedure is same as for DD
All precautions must be observed

New things Learned During Internship:
I have learnt many practical things during my training as an internee such as:
Process of Opening an Account
Closing an Account
Account Activation
Procedure of Cheque Clearance
Interaction with the Customer
Symbol Software
Facing Stress Environment
Transfer of Money from One Account to Another Account
Fill of Deposit Slip
How to Fill A cheque
Regularity


CHAPTER 3

Summary and
Recommendation


Overall Summary
In a nut shell it can be concluded that the overall performance of the bank is quite satisfactory.
MCB's total assets, investments, deposits and equity has increased but profitability has decreased by
a soaring percentage of 58.23%. The reasons which I have traced out of my analysis and studies are
as follows;
Increased financial costs of funds for which expected investment revenues did not open up.
Return on lending has been reduces
Bank has increased its classified advances by 35% to fulfil their requirements of Prudential
Regulations. The fresh increase is mainly 51% in the other assets especially mentioned
Classification. According to the prudential regulations requirements, accrued mark-up
cannot be credited to income button 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:
Creation of small and medium entries development authority (SMEDA).
Financing under prime minister's self-employment scheme.
Launching of Mera Ghar scheme etc.
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'sand NBFI's) also competed for
limited resources and investment avenues- thus further narrowing the spread of banking industry.
Although, economic sanctions imposed as a result of nuclear blast and the country's level of
foreign debt and directly impending economic growth, but the debt rescheduling at the Paris Club
and large financial commitments by the multilateral agencies will improve country's external
position and provide a sound footing for medium term planning. In this improved and stable
economic environment, the bank will get opportunities and by making sincere efforts can increase
its profitability and equity. Previous year is expected to pose a tough market environment. Shortage
of rains and electricity can seriously impact overall GDPgrowth. 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 derive 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.
Recommendation for Organization:
From the Quantum of the profit and its financial data it can be easily judged that after privatization,
MCB is performing well. Its deposits are growing day by day and so its profitability. The
controlling body is responsible for the productive performance of the Bank.
Following are my observation and suggestion to improve the efficiency for the development of the
bank.
There is a criticism on the banking management that the salaries raise of the employees are
not significant over the years as compared to other banks. And I think this will shake the
confidence and working habit of the employees.
There is another recommendation about the bank that there is no proper timing of the bank
and there is made an unnecessary delay in the banking transactions, which might not be a
good sign for the bank from future prosperity point of view.
Staff turnover particularly of trained staff result in financial and other losses. The amount
spent by the bank on employment, induction and training of outgoing officers constitutes to
beat till another officer should ready prove this work. The exodus of bank officer in the past
has worsened the situation.
Most of the bank employees, are sticking to one seat only with the result that they become
master of one particular job and lose their grip on other banking operation. In my opinion all
the employees should have regular job experience all out-look towards banking. The
promotion policy should be adjusted.
Refresher Courses for the staff are most important in any international organization. All the
employees should have these courses according to their requirement. Foreign experts can
also be called for this purpose.
Bank should give some more incentive to its employees in order to remove the conflict
between lower and higher officers and should try to improve the working condition of the
bank.
As such system should be designed that every employee who has some problems with his
officers can communicate it to the higher management and some steps must be taken to
improve that.


Recruitments should be strictly on merit basis and induction should be after proper and
extensive training.
Old and lazy staff should be replaced by young, qualified and energetic staff.
Foreign branches should be opened in order to capture the international market and to earn
international repute for the bank.
Working environment, equipment, furniture and staff dressing should be according to the
modern banking style.
Proper attention should be paid to upgrade customer services.
Bank should adopt the global organizational banking structure to meet the international
standards of banking sector.

Specific recommendations for IBIT to improve its curricula and methods of
teaching to IBIT students
As the students of IBIT Department I have learned a lot from respected teachers who always found
cooperative, helpful, and kind the know which I gained from them is treasure for my whole life
belongingness and affiliation with teachers. I was unable to find out any weakness in any of them.
Following recommendations are only places for the improvement and betterment. These are only
the step which I think should be taken to achievement.
Degree of business education need recognition there should be effective advertising for
awareness of people.
Faculty of BBIT department is not sufficient to satisfy the educational need of students.
Department lack experienced, skilled and professional permanent faculty so new teachers
should be appointed.
Case study should be major part of the studies because it creates more confidence in the
students. So they could be able to adjusting multicultural organization.
It courses teachers only instruct it thorough books or slides whilepractive in terms of
concrete work in labs is lacking. That is why the students of IBIT remain always confused
what he knows in it in real sense. The market demands for us in the field which we normally
failed to provide them.
Favouritism of teachers towards some specific students not only gives that student credit
through unfair means but also upset and dulls the spirits of others.
The students who spend more and more time in the office of teachers get good grades more
easily. So there should be proper check and balanced on this issue.
The specialization must also be offered in more areas like HRM


Specific recommendations for institute for the next internship in this
organization
Department should provide proper guide line to the students during learning about their practical
application in the field of business so that students becomes familiar with business environment.
Our department must have developed close relations with reputed organizations adequate help for
management of internship can provided to the students. The department should try to promote IBIT
as a prestigious institutefor clearing and pay attention toward its promotion and advertisement in
business sector. The department should maintain a record of all its old students working in various
fields and present them as a source of motivation inspiration for the present students in the
department.
Practical field is quite different from theoretical knowledge. So an internee should adopt
himself / herself to know situation. He / she should be able to get first-hand knowledge.
Have the quality of confidence.
Have a good communication.
Should be able to judge the situation.
Should have effort to doing best.
Have flexibility in opinion making.
It is golden rule for relaxation, satisfaction and success.

MCB bank limited is an attractive and suitable corporation for the internees as it provides excellent
learning opportunities to the students. Its culture is so inspiring and working structure is so
impressing that it motivates to work. All staff members are very cooperative and helpful in
providing guidance during internship. It is good place of learning for future job

References:
www.mcb.com.pk
www.google.com
www.scribd.com

Final Internship Report On MCB 2013

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Institute of Business & Information Technology

University of the Punjab Page 1

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