INTERNSHIP REPORT ON

MUSLIM COMMERCIAL BANK

NOWSHERA CANTT BRANCH
(0285)
Submitted by: Nasir Iqbal
Roll # F-09-04
Supervised by: Sardar Ejaz Ahmed

Government College of Management Sciences

Abbottabad
SESSION: 2009-2013

INTERNSHIP REPORT ON
MUSLIM COMMERCIAL BANK
NOWSHERA CANTT BRANCH
(0285)
Submitted by: Nasir Iqbal
Roll # F-09-04
Supervised by: Sardar Ejaz Ahmed
This internship report is submitted in partial
fulfillment of the requirements for the degree of
Bachelors of Business Administration awarded by
the Hazara University,
Mansehra

Government College of Management Sciences Abbottabad

SESSION: 2009-2013
Government College of Management Sciences
Abbottabad
APPROVAL SHEET

Approval Committee
1. External Examiner
Mr.______________________ Signature______________________

2. Supervisor
Sardar Ejaz Ahmed

Signature______________________

Designation Assistant Professor

3. Head of department
Mr. Mushtaq Ahmad____________ Signature_____________________
Designation Principal

DEDICATION

I dedicated this report to my Loving parents who have continuously given me moral support
and encouraged me though my four years of Bachelor studies. They gave me mental strength
to fight and deal with the hurdles of the daily routine I faced during my study. At this stage I
can say that today what I am where I stand is just because of them. Secondly I would like to
dedicate this report to my supervisor who guided me through out my internship and even in
the making of report.

ABSTRACT
All praises and thanks to Almighty ALLAH. The lord and creator of this universe by shoes
power and glory all goods and things are accomplished. He is also the most merciful, who
gave me the ability and opportunity to work on this report. It is an academic requirement for
the student of BBA (Hons) to undergo an internship program of sex weeks duration. This
opportunity provides to the students to apply theoretical knowledge and gain practical
experience about the organization. The purpose of internship report is to evaluate the
performance of organization and give concrete recommendation for further improvements.
Another aspect of this internship is that it makes of a student imaginative and be dynamic and
takes him away from bookish and impractical philosophy. So it makes the student a practical
man and helps him to face difficulties of practical life and the solution of problems. Through
internship a student can judge his qualities and expertise, whish he gained from books.
As a compulsory requirement of Professional Degree BBA (Hons), I opted to join Muslim
Commercial Bank Limited, to fulfill my degree requirement. My reason for choosing MCB
was to enhance my skills in Management Finance and Accounts, so that to provide myself the
opportunity to cope with real life situation. To better understand the report my
recommendation would be to look into different parts mainly covering the overview of MCB,
overall management of Finance and Accounts.
The bank staff was very much cooperative to me, they have provided me relevant material to
write a report. I am very much thankful to them and to my Advisor Sardar Ejaz Ahmed for
the supervision and guidance. Finally, keeping the tradition alive as well as fulfilling social
and ethical responsibility, my dedications will always go to my dear Parents & Family and
Friends.

TABLE OF CONTENT
CHAPTER # 1

INTRODUCTION.............................................................................01

INTRODUCTION:.....................................................................................................................01
BACKGROUND OF THE STUDY:..............................................................................................01
PURPOSE................................................................................................................................01
SCOPE....................................................................................................................................02
LIMITATION OF THE STUDY:..................................................................................................02
OBJECTIVES...........................................................................................................................02
METHODOLOGY.....................................................................................................................02
ORGANIZATION:.....................................................................................................................03
SUMMARY.............................................................................................................................03
CHAPTER # 2

ROLE OF SECTOR AND ORGANIZATION...............................05

INTRODUCTION:...............................................................................................................05
OVERALL RESPECTIVE SECTORS IN PAKISTAN:.....................................................................05
HISTORY OF BANKING IN PAKISTAN:.........................................................................05
ROLE OF THE ORGANIZATION IN PAKISTAN:..........................................................................07
OVERALL ORGANIZATION AND FUNCTIONS OF ORG IN PAKISTAN:.......................................08
Vision Statement:.............................................................................................................09
Mission Statement:..........................................................................................................10
VALUES:..........................................................................................................................11
CHAPTER # 3

HISTORY OF ORGANIZATION...................................................18

INTRODUCTION:.....................................................................................................................18
BRIEF HISTORY OF THE ORGANIZATION:...............................................................................18
NATIOINALIZATION:.....................................................................................................18
PRIVATIZATION:............................................................................................................19
RELATIONSHIP OF HEAD OFFICE TO THE BRANCH OFFICES:..................................................22
MAIN DEPARTMENTS AND THEIR JOBS......................................................................22

CHAPTER # 4

POLICIES............................................................................................36

INTRODUCTION......................................................................................................................36
POLICIES:...............................................................................................................................36
Internship Policy:............................................................................................................36
MCB has no gender bias.................................................................................................36
Opening account policy...................................................................................................36
Training of employees......................................................................................................36

Revenue Recognition.......................................................................................................36
Investments Policy...........................................................................................................37
RISK MANAGEMENT.....................................................................................................37
Currency Risk Management........................................................................................37
Credit Risk Management............................................................................................37
MCBs Competitive Strategies.........................................................................................37
SUMMARY:............................................................................................................................40
CHAPTER # 5

ANALYSIS OF MCB ........................................................................41

INTRODUCTION......................................................................................................................41
SWOT ANALYSIS:...................................................................................................................41
FINANCIAL ANYLYSIS............................................................................................................43
HORIZONTAL ANALYSIS........................................................................................................43
VERTICAL ANALYSIS.............................................................................................................47
RATIO ANALYSIS...................................................................................................................51
CHAPTER # 6

RECOMMENDATION & RCONCLUSION................................55

REFERENCES.....................................................................................................................62

ACKNOWLEDGEMENT
I express my gratitude to Almighty Allah for his unlimited graciousness because Words are
scarce and knowledge is limited to express his majesty. I have the pearls of my eyes to admire
the blessings of the compassionate, omnipotent, the Merciful and the beneficent Allah who is
the entire source of knowledge and wisdom. Due to his blessings, I become able to contribute
this comprehensive assignment towards the deep ocean of knowledge already exist. Heart is
warm with love and thoughts have turned to the city of knowledge The Holy Prophet
(P.B.U.H) His saying Learn from to Cradle to Grave inspired the strong desire in me to
undertake this course of valuable studies. I deem it as a great opportunity to offer my heartiest
gratitude to my venerable teacher Sardar Ejaz Ahmed; for his great efforts to make us
understand and to conduct this kind of activities of giving the great opportunity for learning
beyond your existing area of scope. I am thankful to bank manager Main Branch Nowshera,
for his nice co-operation and proper guidance throughout my internship. Express my heartiest
and sincerest sense of gratitude to all of them for providing megrand exposure to gain
multifarious experience, May Allah The Almighty bless my parents and well-wishers who are
the permanent source of prayers for me and my successes in this world.

Nasir Iqbal

List of Abbreviations

MCB
IDBP
SBP
MNCs
ADBP
L/C
L/G
ATM
APD
IPD
IT
BTF
NIT
FC
PLS
HRM
SBU
NDFC
RTCs
AIGP
MT
ETD
MIS
FDD
FS
ETD

Muslim Commercial Bank

Industrial Development Bank of Pakistan
State Bank of Pakistan
Multi-National Companies
Agricultural Development Bank of Pakistan
Letter of Credit
Letter of Guarantee
Auto Teller Machine
Assets Product Division
Investment Product Division
Information Technology
Balance Transferred Facility
National Investment Trust
Foreign Currency
Profit & Loss Sharing
Human Resource Management
Strategic business unit
National Development Finance Corporation
Rupee Travelers Cheques
American International Group Pakistan
Mail Transfer
Electronic Technology Department
Management Information System
Foreign Demand Draft
Financial Statement
Electronic Technology Department

Executive Summary
MCB Bank Limited has a solid foundation of over 50 years in Pakistan, with a network of over
1000 branches, over 850 of which are Automated Branches, over 450 MCB ATMs in 41 cities
nation wide 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 backend 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 All departments and I successfully
completed all the task/duties that were assigned to me.
During the course of internship, I learned about different functions performed by
Finance Department as a whole. I also learned banks correspondence with their employees
and within branches. I learned about documentation requirements and record keeping
for different activities and processes, especially the documentation requirement for different
kinds of activities.