Internship Report On MCB

INTERNSHIP REPORT
MCB
Report requirement for the degree of
MBA6th finance
University of Gujrat
INTERNSHIP REPORT
ACKNOWLEDGEMENT
Most grateful to Almighty Allah who enable me to utilize my

knowledge and skills for the preparation and completion of this
internship report am thankful to God who helps me to complete
my internship report. I am also thankful to teachers, friends and
bank staff who guided me. The bank staff was cooperative,
friendly and sincere. Mam Iram who was the general manager of
the MCB helped me a lot in the learning process.
EXECUTIVE SUMMARY
INTERNSHIP REPORT
The banking structure in Pakistan comprises of the following types, State Bank
of Pakistan, Commercial Bank of Pakistan; Exchange Banks, Saving banks,
Cooperative banks, specialized credit institutions. The state bank of Pakistan
is the Central bank of the country and was established on July 01, 1948. The
network of bank branches now covers a very large segment of national economy.
The State Bank of Pakistan issues the shares of these periodically.
Bank
employees and other common peoples can also purchase these shares and earn
profit. MCB was incorporated under companies act 1913 on 9th July; 1947.The
bank transferred its registered office to Karachi, where the Head Office is
presently located.
In April 1991, MCB became Pakistans first privatized bank. The bank has
corporate branch at Shahrah-e-Faisal Karachi (SFK). The bank is using SWIFT
for transfer of information about imports and exports. MCB SFK branch has
Currently
Following
three
Departments
General
Banking
Department,
Advances Department & Foreign Exchange Department.

To open an account the customer has to meet the general banking manager with
an introducer. The procedure begins with the punching of account opening form
to the customer file i.e. customers master file. 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 of an approval form higher authority to close any account.
Current deposits are those which are payable to bank whenever demanded by
the customer. Bank does not pay any profit on current deposits. The following
are the financial products/services of MCB Malay Mail Scheme, PLS Account,
Saving 365 Account, Capital growth certificate scheme, Fund Management
Scheme, Khushali Bachat Account, Term/ Fixed Deposits and others like
night banking, credit cards, traveler cheques.
In remittance department like any other bank MCB also have instruments for
transferring of money, Telegraphic Transfer, Mail Transfer.
INTERNSHIP REPORT
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, and
ledger of account cash received voucher sheet Cash paid voucher sheet, Payingin-slip, Cheque Book, Cash balance book. The clearing in Karachi at MCB or
other banks is being done through NIFT (National Institute of Facilitation
Technology).
Bank provides this facility to the people who need advance money to meet their
requirement. Party dealing with other banks financial condition of borrower
business and as a first step credit proposal is being made. MCB provides
advances, which are two types. Secured Advances and Unsecured
Advances.MCB usually classified advances in to following types Agricultural
Advances, Commercial Advances Industrial Advances. Commercial Advances
are of following types Demand Finance, Cash Finance, Foreign bills purchased,
Finance against imported goods, Finance against foreign bills, Export Refinance
Part I (Pre Shipment) & others. Banks Agriculture division deals with the
agriculture advances. Bank provides the Agriculture Advances in order to
enhance and support the agriculture sector of the country. Farm Credit & Non
Farm Credit are two basic types of agriculture credit.
In foreign exchange, MCB is dealing Foreign Currency Accounts, Foreign
Remittances, and Foreign Bills for Collection, Imports & Exports, Foreign
currency accounts & the foreign currency department deals with the following
types of accounts, Dollar Khushali account, Current account, Saving bank
account, Term deposit, Prime Currency Scheme. Foreign accounts are
convertible on floating rate available to the bank. Letter Of Credit facility is being
provided by MCB in foreign exchange.
HISTORY OF THE MCB BANK LIMITED
INTERNSHIP REPORT
Before separation of Indo Pak, the need for more Muslim banks was felt. And
Muslims having strong financial capacity were thinking to invest in this sector as
well. This was the idea which paved the way for setting up MCB Bank Ltd known
as MCB. This was the third Muslim bank in the subcontinent.
History
This bank was incorporated under companies act 1913 on 9th July, 1947 (just
before partition) at Calcutta. But due to changing scenario of the region, the
certificate of incorporation was issued on 17th August, 1948 with a delay of
almost 1 year; the certificate was issued at Chitagong. The first Head office of the
company was established at Dacca and Mr. G.M. Adamjee was appointed its first
chairman. It was incorporated with an authorized capital of Rs. 15 million.
After some time the registered office of the company was shifted to Karachi on
August 23rd, 1956 through a special resolution, now recently the Head office of
MCB has been transferred to Islamabad in July, 1999 and now Head office is
termed as Principle Office.
This institute was nationalized with other on January 1st, 1974. At that time it
had 506 branches and deposits amounting to Rs. 1,640 million. Although. MCB
has a reputation of a conservative bank but nationalization also left its effects on
this institute as well and by end of year 1991 in which it was privatized the total
number of branches were 1.287 and deposits amounting to as high as Rs.
35,029 million.
Privatization
When privatization policy was announced in 1990, MCB was the first to be
privatized upon recommendations of World Bank and IMF. The reason for this
choice was the better profitability condition of the organization and less risky
credit portfolio which made'' it a good choice for investors. On April 8th, 1991, the
management control was handed over to National Group (the highest bidders).
Initially only 26% of shares were sold to private sector at Rs. 56 per share.
After privatization
INTERNSHIP REPORT
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.
After privatization, the growth in every department of the bank has been
observed. Following are some key developments:
Launching of different deposit schemes to increase saving level.
Increased participation on foreign trade.
Betterment of branches and staff service level.
Introduction of Rupee Traveler Cheques & Photo Credit Card for the first
time in Pakistan.
In short MCB is one of the leading banks of Pakistan with a deposit base of about
Rs. 280 billion and total assets of around Rs.300 billion. Incorporated in 1947,
MCB soon earned the reputation of a solid and conservative financial institution
managed by expatriate executives. In 1974, MCB was nationalized along with all
other private sector banks. This led to deterioration in the quality of the Banks
loan portfolio and service quality. Eventually, MCB was privatized in 1991.
During the last fifteen years, the Bank has concentrated on growth through
improving service quality, investment in technology and people, utilizing its
extensive branch network, developing a large and stable deposit base and
managing its non-performing loans via improved risk management processes.
MCB BANK TODAY

MCB today, represents a bank that has grown with time, experience and
Pakistan. A major financial institution, in scope and size, it symbolizes a fully
growing tree evergreen, strong, and firmly rooted.
Foreign trade
The bank conducted import business during the year amounting to RS. 54.0
billion as compare to RS. 56.4 Billion In 2005. The export business slightly
INTERNSHIP REPORT
improves to RS. 36.9 Billion From RS. 35.1 Billion. In 2006. Home remittances
decline to RS. 16.7 Billion From 30.7 Billion the decline in home remittances
business was due to freezing of Foreign Currency Accounts, which has affected
the confidence of Pakistanis working overseas.
Year 2006 compliance

MCBs strength lies in providing a technological base at the gross root level of
the society with a challenge to educate and assimilate such systems across vast
cultural and economic backgrounds. With over 768 automated branches, 263
online branches, over 151 MCB ATMs in 27 cities nationwide and a network of
over 16 banks on the MNET ATM switch, MCB continuously innovates new
products and services that harness technology for the customers benefits.
Social sector
The bank is participating in the Prime Minister self-employment Scheme. The
application received from various applicants is being processed on merit and
disposed off as quickly as possible.
The business
MCB is in its over 50 years of operation. It has a network of over 1,000 branches
all over the country with business establishments in Sri Lanka and Bahrain. The
branch break-up province wise is Punjab (57%), Sindh (21%), NWFP (19%) and
Blochistan (3%) respectively.
MCB has an edge over other local banks, as it was the first privatized bank. The
State Bank of Pakistan has restricted the number of branches that can be
opened by foreign banks, an advantage that MCB capitalizes because of its
extensive branch network.
Fifteen 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 sector companies as well
as large local and multi national concerns. MCB is also catering to the growing
INTERNSHIP REPORT
middle class by Providing new asset and liability products. The Bank provides 24
hour banking convenience with the largest ATM network in Pakistan covering 27
cities with over 151 ATM locations. The Banks Rupee Traveler Cheques have
been market leaders for the past six years and have recently launched their Gift
Cheque Scheme.
A major achievement of MCB is that the state bank of Pakistan has issued a
license to MCB to start Islamic banking. Now MCB is setting up a 1st Islamic
banking branch at 1st floor shaheen complex, Karachi. This complex starts
working from September 1, 2003.
Challenging and changing the way you bank.
MCB Banks team of committed professionals is dedicated to maintaining

long term customer relationships through outstanding service and
convenience.
INTERNSHIP REPORT
MANAGEMENT COMMITTEE
BOARD OF DIRECTORS
INTERNSHIP REPORT
Mian Mohammad Mansha
Chairman
S.M. Muneer
Vice Chairman
Dr. Muhammad Yaqub
Director
Mian Umer Mansha
Director
Shahzad Saleem
Director
Sheikh Mukhtar Ahmed
Director
Tariq Rafi
Director
Sarmad Amin
Director
Atif Yaseen
Director
Mohammad Aftab Manzoor
President & Chief

Executive
Advisor
Raza Mansha
Audit committee
Dr. Muhammad Yaqub
Chairman
Tariq Rafi
Member
Mian Umer Mansha
Member
Aftab Ahmad Khan
Member
Chief financial officer

Ali Munir
Secretary
INTERNSHIP REPORT
Tahir Hassan Qureshi
Auditors
KPMG Taseer Hadi & Co.
Chartered Accountants
Riaz Ahmad & Co.
Chartered Accountants
Legal Advisor
Mandviwalla & Zafar
Advocates & legal consultants
Shariah Advisor
Dr. Muhammad Zubair Usmani
Registered Office
MCB building, F-6/G-6
Jinnah Avenue, Islamabad
Principle Office
MCB tower
I.I chudrigar road Karachi
Registrar and Share Registration Office

THK associates (pvt) Ltd.
Shares department, ground floor sheikh sultan trust building no 2, Beaumont
road Karachi
ORGANIZATIONAL HIERARCHY OF MCB
INTERNSHIP REPORT
PRESIDENT
SENIOR EXECUTIVE
VICE PRESIDENT
EXECUTIVE VICE
PRESIDENT
SENIOR VICE
PRESIDENT
VICE PRESIDENT
ASSISTANT VICE
PRESIDENT
OFFICERS GRADE
I II III
ASSISTANTS
CASHIER
PEONS
INTERNSHIP REPORT
ORGANIZATIONAL SETUP OF MCB
HEAD QUARTER
KARACHI
PROVINCIAL HEAD
QUARTERS
PUNJAB
LAHORE
SINDH
KARACHI
BALOCHISTAN
PESHAWAR
NWFP & AZAD

KASHMIR
QUETTA
CIRCLE OFFICES
BRANCH OFFICES
ORGANIZATIONAL STRUCTURE OF MCB
INTERNSHIP REPORT
As MCB is a banking company listed in stock exchange therefore it follows all the
legalities which are imposed by concerned statutes Mr. Muhammad Mansha is
chairman & chief executive of the company with a team of 10 directors and 1 vice
chairman to help in the business control and strategy making for the company.
Operational Management of the bank is being handled by a team of 10
professionals. This team is also headed by Mr. Muhammad Mansha.
For effective handling of branches, it has been categorized into three segments
with different people handling each category. These categories are:
a)
Consumer Banking
b)
Corporate Banking
c)
Commercial banking
Consumer
Corporate
Commercial
637 branches
20 branches
383 branches
a) Consumer Banking
These are the branches which have exposure up to Rs. 20 million and these
include all the branches which are neither corporate nor commercial branches.
b) Corporate Banking
These are branches which have an exposure of over Rs. 100 million. Usually
includes multinational & public sector companies.
c) Commercial Banking
The branches which has a credit exposure of less than Rs. 100 million but having
a credit portfolio of more than Rs. 20 million (excluding staff loans)
Usually branches in large markets and commercial areas come under this
category.
PRODUCTS AND SERVICES

Consumer (personal) banking
INTERNSHIP REPORT
The products and services offered by MCB as a consumer bank are as

follows:
1. Online services
i.
ATMs
ii.
Mobile Banking
iii.
Call Centre
iv.
Bill Payments
v.
Virtual Banking
2. Accounts
i.
Khushali Bachat accounts
ii.
Pak Rupee Accounts
iii.
Saving Accounts
iv.
Basic Banking accounts
v.
Foreign Accounts
3. Cards
i.
Smart Card / Debit Card
ii.
MCB Visa
4. Traveler's cheque
i.
Rupee Traveler's cheques
ii.
Gift Cheques
5. Remittance
i.
Overseas Remittance
6. Branches & ATMs

i.
ATMs Locator
ii.
Online Branches
iii.
Branch Network
7. MNET switch
i.
M NET Switch
The details of above mentioned products & services are as follows.
INTERNSHIP REPORT
1. Online services
The particulars of the online services are as follows:
i.
MCB ATM Card
Welcome to a world of convenience with the MCB ATM 24- Hour Smart Card. "It
Works. Anytime in Pakistan and abroad."
With an ever growing number of ATMs operating across the nation, the MCB ATM
Network is the largest and most advanced of its kind in the country, and it is part
of MCB's continuing efforts to provide you with convenience that suits your
requirements most. And now the MCB ATM has gone global. MCB's affiliation
with Master Card International brings about added facilities for the MCB traveler
abroad with the Cirrus and Maestro networks.
Categories of MCB ATM card

MCB ATM Regular Card
The MCB ATM Regular Card allows withdrawal of up to Rs. 10,000 per day and a
maximum of 3 withdrawals per day per card.
MCB ATM Gold Card

The MCB ATM Gold Card allows withdrawal up to Rs. 25,000 per day and a
maximum of 6 withdrawals per day per card. The cardholder has to make at least
two transactions to withdraw the full amount of Rs. 25,000.
ii.
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 Mobile Banking is a free service for MCB account holders who have an
ATM card. All you pay for is the cost of an SMS message if charged by the
service provider.
iii.
Call centre
INTERNSHIP REPORT
The state of the art MCB call center is the right choice to keep you in step with
your ever hectic schedule by providing you services relating to your account and
Smart card at any point in time.
Our well-abreast and friendly call center team is available 24 x 7, 365 days a
year to ensure that
your daily financial obligations are taken care of
guaranteeing you a good nights sleep.

Welcome to the MCB PHONE BANKING Experience : 111-000-MCB(622)!
Services Offered by MCB call centers
ATM locations
Account opening procedures
MCB bank charges
Product information
MCB merchant locations
Account Balance inquire
Pay orders request
Funds transfer request
Debit card Transactions details
Last five transactions details
Balance Certificate request
Bank Statements request
Address Change request
Zakat Deduction certificate request
INTERNSHIP REPORT
Tax deduction certificate request
Mobile Banking activation
Debit card blocking
iv.
Bill payments
MCB easy bill pay offers unmatched convenience to pay your utility and mobile
phone bills or re-charge your prepaid mobile phone accounts anywhere, anytime
with security and peace of mind.
MCB is the only bank that offers you 3 convenient options of making bill
payments to PTCL, SSGC, KESC, Instaphone, Mobilink,and Ufone. So, save
your precious time by avoiding long queues and pay your bills through MCB Easy
Bill Pay.
MCB Smart Card or MCB ATM Card Holder can easily pay their bills or re-charge
their prepaid mobile phone account.
MCB's partners in
v.
Virtual banking
INTERNSHIP REPORT
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
Secure
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.
Services of MCB virtual

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. .
2. Accounts
MCB offers following accounts to customers.
i.
Khushali bachat account
It is a savings account which gives profit on daily balances.
Features
Low average balance requirement.
Profit is paid on your account on a half yearly basis.
Cash deposit and withdrawal facility at hundreds of MCB branches across
Pakistan (conditions apply).
Make cash free transactions, from your account at thousands of merchant
outlets through your MCB Smart Card (local & international).
Stay in touch with your account through MCBs Virtual Banking Service.
Use your account to pay your bills 24 hours a day, 7 days a week through
Virtual Banking.
INTERNSHIP REPORT
ii.
Pak rupee accounts
Pak rupee account is of four types.

Saving Account
Current Account
Term Deposit
Special Term Deposit
Saving account
MCBs Rupee Savings account is the most convenient way to manage your
savings. Its features are
Low average balance requirement
Enjoy unlimited free of cost transaction facility at your branch
Profit is paid on your account on a half yearly basis
Pakistan (conditions apply)
outlets through your MCB Smart Card (local & international)
Stay in touch with your account through MCBs Virtual Banking Service.
Current account
The features of current account are.
Enjoy unlimited free of cost transaction facility at your branch.
Term deposit
MCB offers a wide range of attractive term deposit schemes to suit your
requirements.
INTERNSHIP REPORT
Avail your choice of 1 month, 3 months, 6 months, 1 year, 2 years, 3

years, 4 years and 5 year term deposits.
Low investment threshold.
Half yearly profit payment.
Avail a credit facility up to 75% of the total deposit value.
Special term deposit

MCBs Special Rupee Term deposits offer a very attractive long term investment
option with ease and convenience.
Highly attractive profit rates.
Tenors available are 3 months, 6 months, 1, 3 and 5 years.
Profit on 3 and 6 months deposit is payable at maturity of deposit.
Profit on 1, 3 and 5 years deposit is payable quarterly.
Withdraw your amount through our wide network of ATMs.
iii.
Saving accounts
There are two types of saving accounts offer by MCB which are
Saving 365
Saving 365 Gold
iv.
Basic banking accounts
In compliance with the directives of State Bank of Pakistan via BDP Circular No.
30, issued on November 29, 2005, the Basic Banking Account has been
launched with effect from February 27, 2006.
This product has been introduced to facilitate the low income group as well as
the existing account holders who wish to convert their regular savings or current
account into Basic Banking Account.
v.
Foreign accounts
For foreign accounts there are two options

Saving Accounts
Current Accounts
INTERNSHIP REPORT
Saving accounts
MCBs Foreign Currency Savings Account offers you attractive returns on your
Foreign Currency investment.
Open a foreign currency Savings account in any of the four currencies i.e.
US Dollar, UK Pound Sterling, and Euro.
Unlimited transaction facility.
Low balance requirement.
Profit credited to your account on a half yearly basis.
You can avail a credit facility up to 75% of the total deposit value.
A foreign currency account can be opened at any of MCBs foreign
exchange dealing branches.
Current accounts
MCBs Foreign Currency Current Account offers you the convenience of unlimited
withdrawals i.e. access to your funds whenever you want without any notice.
There is no limit on the number of transactions you make in a day.
Open a foreign currency Current account in any of the four currencies i.e.
3. Cards
MCB provides smart card as a debit card and visa card as a credit card. MCB
visa card has several options which a customer can avail according to
his requirements.
i.
Smart card / Debit card
INTERNSHIP REPORT
MCB now brings you MCB SmartCard a secure and convenient instrument of
payment with unmatched functionalities. It provides 24-hours 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 is the only bank to introduce a debit card that gives the option to choose
from domestic and international cards for local and global usage respectively.
Features of smart card

The features of smart card are as follows.
Purchasing
International usage
Bill payment
Funds transfer
24 Hours cash withdrawals
Balance inquiry
Mini statement
MCB mobile banking
ii.
MCB visa
Credit card is called as MCB visa in MCB. It not only provides the conventional
credit card services in a manner that is superior in comparison, but goes an extra
mile.
INTERNSHIP REPORT
MCB visa has the following types

i-resolve
i-secure
i-party
i-plan
i-switch
i-dial
i-insure
i-cash
4. Traveler's cheque
MCB provides following two types of traveler cheques.
Rupee traveler's cheques
i.
MCB Bank has been at the forefront of providing its customers with new and
innovative products and financial instruments that are safe, secure and profitable.
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 travelling and in all walks of
life.
Gift cheques
ii.
MCB Gift Cheques, eliminates guesswork in trying to find out the perfect
Gift for any occasion birthdays, wedding, graduation and religious
festivals.
Gift Cheque is beautifully packed in a Gold / Silver envelope with a personalized
Gift Card designed to suit all occasions. They are safer than cash, because they
can be replaced if lost or stolen. They are also available at all TCS Express
Centres round the clock.
5. Remittance
Overseas remittance
INTERNSHIP REPORT
MCB's Remittance Services are an efficient way to transfer money overseas. You
can remit funds from any country to Pakistan through Swift System.
Corporate banking
The products and services provided by MCB as corporate bank are as follows.
1. Accounts
i.
Pak Rupee Accounts
ii.
Basic Banking Accounts
iii.
Foreign Accounts
2. Loans
i.
Term Loan
ii.
Working Capital Loan
3. Financing
i.
Trade Finance
4. Cash management
i.
Cash Management
5. Investment
i.
Investment Banking
Details of products and services for corporations are as follows.
1. Accounts
i.
PAK rupee accounts
Pak rupee account is of four types.

Saving Account
Current Account
Term Deposit
Special Term Deposit
Saving account
MCBs Rupee Savings account is the most convenient way to manage your
savings. Its features are
Low average balance requirement
INTERNSHIP REPORT
Enjoy unlimited free of cost transaction facility at your branch

Profit is paid on your account on a half yearly basis
Pakistan (conditions apply)
Current account
The features of current account are.
Enjoy unlimited free of cost transaction facility at your branch.
Withdraw cash through Pakistans largest ATM network.
Term deposit
MCB offers a wide range of attractive term deposit schemes to suit your
requirements.
Avail your choice of 1 month, 3 months, 6 months, 1 year, 2 years, 3
years, 4 years and 5 year term deposits.
Low investment threshold.
Half yearly profit payment.
Special term deposit

MCBs Special Rupee Term deposits offer a very attractive long term investment
option with ease and convenience.
Highly attractive profit rates.
Tenors available are 3 months, 6 months, 1, 3 and 5 years.
Profit on 3 and 6 months deposit is payable at maturity of deposit.
Profit on 1, 3 and 5 years deposit is payable quarterly.
INTERNSHIP REPORT
Withdraw your amount through our wide network of ATMs.

Basic banking accounts
ii.
In compliance with the directives of State Bank of Pakistan via BDP Circular No.
30, issued on November 29, 2005, the Basic Banking Account has been
launched with effect from February 27, 2006.
This product has been introduced to facilitate the low income group as well as
the existing account holders who wish to convert their regular savings or current
account into Basic Banking Account.
The Basic Banking Account is a current account and can be opened with a
minimum initial deposit of Rs. 1000/- only. Account holders will be allowed 2
deposit transactions (either cash or through clearing) and 2 withdrawals (cash or
clearing) each month. All customer-initiated transactions over and above this limit
will be charged a transaction fee. However unlimited free of charge cash
withdrawals are allowed through MCB's own ATMs.
iii.
Foreign accounts
For foreign accounts there are two optins

Saving Accounts
Current Accounts
Saving accounts
MCBs Foreign Currency Savings Account offers you attractive returns on your
Foreign Currency investment.
Open a foreign currency Savings account in any of the four currencies i.e.
Low balance requirement .
Profit credited to your account on a half yearly basis.
INTERNSHIP REPORT
Current accounts
MCBs Foreign Currency Current Account offers you the convenience of unlimited
withdrawals i.e. access to your funds whenever you want without any notice.
There is no limit on the number of transactions you make in a day.
Open a foreign currency Current account in any of the four currencies i.e.
2. Loans
The loans provided to corporations are
Term Loan
Working Capital Loan
i.
Term loan
In MCB you get friendly, efficient and attentive personalized banking services - a
unique banking relationship experienced by each MCB client. MCB offer term
loans to its valued customers.
ii.
Working capital loan
Corporate Bank offers a number of different working capital financing facilities

including Running Finance, Cash Finance, Export Refinance, Pre-shipment and
Post- shipment etc. Tailor- made solutions are developed keeping in view the
unique requirements of your business.
3. Financing
Trade finance
Under Corporate Banking MCB offers trade finance services that include an
entire range of import and export activities including issuing Letters of Credit
INTERNSHIP REPORT
(L/Cs), purchasing export documents, providing guarantees and other support

services.
4. Cash management
Cash management
MCBs network of over 900 branches in Pakistan enables its customers to collect
and disburse payments efficiently with MCBs cash management services. MCB
also offers its customers a choice of paper based or electronic fund transfer
solutions including collection amounts, cross branch online transactions etc.
5. Investment
Investment banking
MCBs Investment Banking Team has emerged as a leading player in Pakistan's
Investment Banking arena. The Team handles advisory, corporate finance and
capital markets related transactions. Within these areas, the team has developed
expertise in:
Private Placements
Debt/Equity Underwriting
Term Finance Certificates
Loan Syndication
Arrangement of Non- Fund Facilities
Mergers and Acquisitions
Privatization
Corporate Advisory
PLACING STRATEGIES OF MCB BANK

The location of the bank plays a vital role in
making its operations profitable. If the bank is
located in some business center then it will
be very easy for it to attract business people
INTERNSHIP REPORT
as its customers. Therefore MCB has most of its branches at places where it can
reach
its
targets
customer
Place
No. of branches
easily.
The
Punjab
632
branch
Sindh
232
NWFP
123
Blochistan
34
Azad Kashmir
19
Domestic
1040
Overseas
Total
1045
network of
given
as
MCB
is
follows:
PROMOTION STRATEGIES OF MCB BANK

MCB Bank is actively participating in promotion of its products and services
through advertisement and other promotional schemes.
Initially, the bank focused on the upper class customers only and offered
products for a limited class of people. But now the strategy has been changed
and the bank is now targeting the middle market also. The products offered are of
diverse nature to cater the needs of maximum number of people.
Customer oriented attitude

INTERNSHIP REPORT
MCB Bank values its customers. Customers complaints are encouraged

because it gives an opportunity to know the needs of the customer and build
more confidence in them.
Most of the promotional efforts are done through
Direct marketing
Public relations
MCB bank sometimes gets suggestions and recommendations from its good
customers.
FIELDS OF ACTIVITIES
The purpose of banks is to provide some services to the general public. And for
this purpose different banks provide different services to the people in different
forms. The MCB Bank is a commercial bank, in modern time commercial banks
play a very important role and their functions are manifold. The main functions
and services which MCB Bank Limited provides to different peoples are as
follows.
1) Open Different accounts for different peoples
2) Accepting various types of deposits
3) Granting loans & advances
4) Undertaking of agency services and also general utility functions.
For proper functioning of branches and the over all bank has been divided in
different departments. These departments handle different jobs so that division of
work is there for improvement of functions and also it is easy to control the
situation. The general division in a branch is as follows:
DEPARTMENTS OF MCB
The departments of MCB are:
1. Cash department
2. Deposit department
3. Clearing department
4. Advances department
5. Remittance department
INTERNSHIP REPORT
6. Foreign exchange department

7. Technology department (new addition in order to cop with the growing
needs of day to day technology requirements)
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 paid voucher sheet.
Cash received voucher sheet.
Cash balance book
Paying-in-slip
Cash department is performing its job completely through computers.
DEPOSIT DEPARTMENT
Bank deals in money and this is merely mobilizing fund within the economy. They
borrow from one person and lend to another, the difference between the rate of
borrowing lending forms their spread or gross profit. Therefore we can rightly
state that deposits are the blood of the bank which causes the body of an
institution to get to work. These deposits are liability of the bank so from point of
view of bank we can refer to them as liabilities.
Types of deposits
1) Time deposits / liabilities
2) Demand deposits / liabilities
Functions of deposit department

This was a brief review of different types of deposit schemes. The Deposit
Department handles the account opening, profit payment and accounting of all
types of deposit schemes.
INTERNSHIP REPORT
Account opening
Account opening is an agreement in which customer offers his funds and bank
accepts these funds, therefore the nature of relation between a banker and
customer is of a contractual one and all the conditions applicable to this contract
act are also applicable.
Profit payment & calculation
Profit payment & calculation is done in accordance with the rules of each type of
deposit scheme-by the deposit department. The products for each deposit
scheme are calculated separately and added till the end of 6 month period. Then
the sum total of these products is multiplied with the respective profit rates which
are issued by the Head Office at the end of each half yearly closing. The profit
provisions for each type of deposits are also calculated on monthly basis by the
same department in order to calculate the net profit or loss position of the branch.
Accounting entries
Accounting entries are also made in the respective books of account by this
department. However, in small and medium size branches, the accountant
performs the book keeping duties for all kinds of ledgers.
CLEARING DEPARTMENT
Every banker acts both as a paying as well as a collecting banker, It is however
an important function of crossed cheques. A large part of this work is carried out
through the bankers clearing house.
A clearing house is a place where representative of all banks of the city get
together and settle the receipts and payment of cheques drawn on each other. As
the collecting banker runs certain risks in receipt of their ownership the law has
provided certain protections to the banks.
The Negotiable Instrument Act, 1881, lays down that drawer or holder of a
cheque or draft may cross the instrument generally or specially. It further lies
INTERNSHIP REPORT
down that a crossed cheque can only be paid to a banker, who collects it for a
customer in good faith and without negligence.
Types of cheques
Transfer cheques: are those cheques, which are collected and

paid by the same branch of bank.
Transfer delivery cheques: are those cheques, which are

collected and paid by two different branches of the same bank
situated in the same city.
Clearing cheques: 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.
Collection cheques: 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.
INTERNSHIP REPORT
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)

Cheque with slip given
Slip is asked & filled
Cheque along with slip checked, signed &

received by officer
Entries in daybooks are made

Entries checked & verified by another
officer after banking hours by officer
Cheques collected at the day end by Main
Branchs Officials
Cheques are sent to respective banks next
day after posting in computer by Main
Branch
The same day not honored cheques are
returned to Main Branch
The day after tomorrow the banks are

informed about dishonored cheques
Provisional entries for returned cheques are

debited again in both computer & daybooks
INTERNSHIP REPORT
Party is informed about returned cheques

through Phone or personal contact
Cheques are mailed through TCS in case of

no personal contact the same day
(If there is any availability)
ADVANCES DEPARTMENT
It is another major department of the branch. Bank provides this facility to the
people who need advance money to meet their requirements. For getting the
advances, the first step is the preparation of credit proposal. Some principles of
lending are considered whenever financing being is made. These principles are:
Character
Capacity
Collateral
Capital
Condition
Required information
An assessment of his business abilities
Accurate & up-to-date financial statements
Market reports about the borrower
Party dealing with other banks
Nature and structure of borrower business
Names of proprietors, partners or Directors
Detail of companies associated with borrower business
Financial condition of borrower business
INTERNSHIP REPORT
Preparation of credit proposal

At first, a formal application for credit approval is obtained from the party along
with complete group position. The parties credibility report is also obtained from
the banks from which the party has been doing the business. The party
creditability report is also taken from the head office of Trade information
Division.
For obtaining credit, party has to submit the last two years Balance Sheet and
Profit & Loss Statement duly attested but authorized auditors. If the party also
involve in export or import business then the bank also consider the data of three
years about imports and exports.
Then recommendations are made the type of data required to prepare the credit
proposal is to be gathered from different departments. Some data is obtained
from the foreign exchange department. Some data is obtained from current
account department and some data is available in advances department. The
purpose for which the financing is required should be explained very clearly. The
security offered by the party to the bank is also evaluated. In case of pledging of
the property in shape of land or building the complete evaluation of the property
should also be attached.
After all the requirements and necessary documents for applying for advances is
fulfilled by the party then, the case is sent to the Chief Manager for approval. If
the manager will find any discrepancies, he may write on these documents. If the
credit limit is in his range, he may approve the party for credit. If the amount is
exceeding the Chief Manager forward the case to the Circle Office for approval
and here the same procedure is repeated and if the credit amount is in the range
of GM, he can approve and if the credit amount is very large from Circle Office,
the case is then sent to Head Office and if it is a real big then is to be decided by
Board of Director. MCB provides advances which are two types. These are two
types of advances:
Secured Advances
INTERNSHIP REPORT
Unsecured Advances
In secured advances, the bank takes any security against the loans while in case
of unsecured advance no security is taken by the bank.
Advances types
MCB usually classified advances in to following types:
Commercial Advances
Agricultural Advances
Industrial Advances
Commercial advances
MCB divided the advances in to two major types:
Fund Based
Non Fund Based
In the fund base advances, the funds of MCB is involved and in Non Fund based
only guarantee is given by the bank.
Fund base advance

MCB have following Fund base facilities of advance in its corporate branches.
The details of these types would be later. These are as follows:
Demand Finance (DF)
Cash Finance (CF)
Running Finance (RF)
Finance against imported goods (FIM)
Export Refinance Part I (Pre Shipment)
Export Refinance Part I (Post Shipment)
Export Refinance Part II
INTERNSHIP REPORT
Finance against purchase collection (FACP)

Finance against foreign bills (FAFB)
Foreign bills purchased (FBP)
Local Manufacturing Machinery (LMM)
Payment against document (PAD)
Demand finance
This is a type of secured loan and demand loan never allowed without security. It
is a type of long term financing. MCB also gives loan under the head of demand
finance to individuals, industrial units & commercial business etc.
Cash finance
In this, the borrower gives a specific reason for the need of cash. MCB gives the
facility of cash credit to business. The amount is passed through voucher and
credit to the party account. Normally 0.60 paisa per thousand is charged on daily
basis to customer.
Running finance
These finances as evident by the name are given to the business to meet their
daily needs. The mark up is charged on daily balances. This type of advances
are given to trade, commerce and manufacturing for general purpose. Normally
0.60 paisa per thousand is charged on daily basis. It is drawn through Cheque.
Finance against imported merchandise

This type of advances is granted against the pledge of imported merchandise.
The goods imported are pledged by bank. Bank pays all the charges to exporter
and customs and keeps the goods in its control. On payment from the client to
bank, the bank releases these goods.
Exports refinance PART-I pre-shipment
INTERNSHIP REPORT
This type of loan is provided by the bank to the customer at the rate of 12% for
the period of 150 days. The bank provides this type of advance facility to those
exporters who have not enough money to make shipment. To promote the
export, the government pursues the Banks to provide loans to the exporters.
Exports refinance PART-I post shipment

This type of facility is provided to the customers who have enough amount of
money to make first shipment but not more. So the bank issues a loan to the
exporter, this financing is for period of 150 days. Finance is provided by the SBP
to exporters for the purchase of raw material and for its processing packing and
shipment. The mark up rate currently set by the SBP is 12%. In case, if the party
is unable to make the shipment within 150 days of financing. The party has to
pay certain amount of finance as asked by the SBP and after 150 days the
markup rate also charges up @ 60 paisa per thousand per day. So usually
exporters try to make the shipment within the fixed period set by the SBP which
is usually 150 days.
Exports refinance PART-II

In this case the bank after receiving the performance of years in export business
of the party the limit is set for a period of one year. Here the limit cannot be set by
the terms pledged of the permission of the bank.
Finance against purchase of collection document

The bank provides this type of advance facility to those exporters who have not
enough money to make shipment. A bill (Cheque, draft, etc.) may be purchased
by the bank. Bank pays the amount to the client after deducting its commission.
Finance against foreign bills

This facility is given to the exporter, If he needs an urgent money. Bank also
provides finance against the foreign bills. He gives bills of exchange to the bank
as a security and bank send these bills for collection and bank gives money to
the exporter.
INTERNSHIP REPORT
Foreign bill purchase

The exporters which are under L/C are also provided with the facility of loan.
Amount is given to the exporter after the approval of L/C by the issuing bank.
Payment against document

Bank make the payment to party against document and upon expire date. Bank
receives back money with mark up in this type of lending.
The opening bank makes sure that documents are according to terms and
conditions of the credit.
Agriculture credit
Banks Agriculture division deals with the agriculture advances. Bank provides the
Agriculture Advances in order to enhance and support the agriculture sector of
the country. Agriculture advances are of the two types. The types are as follows:
Farm Credit
Non Farm Credit
Farm credit
These are the credits provided by the MCB for the purchases of inputs for
development of agriculture sector. Following are two main sub classes of Farm
Credit.
Production Finance
Development Finance
Production finance
These are short term loans. These loans are provided to farmers for purchases
of different type of input, for example, Seeds, Fertilizers, and Pesticides. These
loans are provided against personal guarantees or mortgage of land as a
security. Rate of profit for these loans is 10%.
INTERNSHIP REPORT
Development finance
These are medium or long term loans. These loans are provided for the
development of agriculture sector. Main purpose of these loans is to purchase
instrument:
Tractors
Implements (Trolley, Thresher etc.)
Installation of tube-well
Planting of garden
The loans are disbursed against security of land (mortgage) or any other security
acceptable to bank. The rate of profit for these loans is 11% to 17%.
Non farm credit

Second major form of agriculture advance is Non-Farm Credit. These loans are
provided against mortgage of land as a security or pledge of equipment as a
Collateral security. These are medium or long term investment depending up the
project. These loans are provided to boost up agriculture sector to provide the
sources of earning of foreign exchange as well as to provide employment to
people. Following are the different types of small industries for which loans are
provided to improve the economy of the country:
Fish Farm
Cattle Farm
Poultry Farm
Dairy Farm
Securities
Bankers lend money in the form clean advances against promissory note as well
as secured advances against tangible and marketable. These reports are only
INTERNSHIP REPORT
valid MCB normally allow the advances to the customers against the following
types of securities:
Bankers Lien
Mortgage
Pledges
Hypothecation
Bankers lien
This type of security is accepted in case of advances against share, life policies,
bonds, ornaments and fixed deposits etc. It is type of most liquid security.
Mortgages
There are two types of Mortgage. These are following:
Legal Mortgage
Equitable Mortgage
Legal mortgage and equitable mortgage are accepted in case of immovable
properties like land, building and machinery etc.
Pledge
This type of security is accepted in case of stocks or raw materials. In a pledge,
the borrower has no right to sell the stocks without the permission of bank.
REMITTANCE DEPARTMENT
The need of remittance is commonly felt in commercial life particularly and in
every day life general. A major function of any banking system is the transfer of
funds from one client or one place to another. By providing this service to the
customer the bank earns a lot of income in the form of service charges. This
department deals with local currency remittance i.e. remittance from one city to
another without actually carrying the currency. MCB uses following instrument for
transferring of money:
INTERNSHIP REPORT
i.
Demand Drafts (DD)
ii.
Pay Order (PO)
iii.
Telegraphic Transfer (TT)
iv.
Mail Transfer (MT)
i.
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.
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 drawee branch. Following are the prerequisites for the processing of DD:
ii.
Bank Serial No
No. of DD
Central No
Test Key
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
dishonored 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.
Documentation
INTERNSHIP REPORT
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
Central No.
iii.
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 & Figure
Test key
iv.
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
INTERNSHIP REPORT
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 EXCHANGE DEPARTMENT

H. E. Evit states that the means and methods by which right to wealth express in
terms of currency of one country are converted into rights to wealth in term of the
currency of another country are known as foreign exchange.
Encyclopedia Britannic defines Foreign Exchange as a system by which
commercial nations discharges their debts to each other.
In MCB
This department works like general banking department with the difference that it
deals in foreign currencies like US ($) and Pound Sterling, Dutch Mark (DM),
Euro and Japanese Yen (Y). This department deals with the following
products/services:
Foreign Currency Accounts
Foreign Remittances
Foreign Bills for Collection
Selling of Government Certificates
Imports & Exports
INTERNSHIP REPORT
TECHNOLOGY DEPARTMENT
Technological advancements are also affecting the banking industry. The foreign
banks have a competitive edge over all local banks in their technologies'
advancements and automated systems. Local banks have also realized the
gravity oil this situation and are striving to add computerized systems to their
branches
MCB is ahead of all other local banks in this field and now it is in a position to
even compete with foreign banks. There are more than 1045 branches of MCB
all over Pakistan and out of these more than 300 branches are fully
computerized Almost all .the branches of big cities are computerized; therefore,
the need for a technology department at each branch is growing. Now a day, a
computer division is working in each city to provide service to add the branches
of that area.
MCB has also introduced the now concept of online banking. There are now
more than 250 branches linked through this system and they can transact with
each other directly using computer systems at their own branches.
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.
MCB has the largest ATM network in the country at the moment with almost 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).
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.
INTERNSHIP REPORT
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 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 are issued in collaboration with Cirrus and are
useable all over the world with maximum withdrawal facility according to
the standards of Cirrus.
INFORMATION ABOUT MY BRANCH

I did my internship in MCB, Settla town, GRW. The information about the bank is
as follow:
Management of the branch

Branch Manager
Ashiq Ali
Operational Manager
Miss Madiha Abbass
General manager
Miss Iram
Clearing Manager
Mubasshar Hassan
Chief Cashier
Afzal Ch
Cashier
Khuram Zaffar
Billing Cashier
Sadia Nawaz
CSO
Miss Sundas
INTERNSHIP REPORT
Other general information of the branch

Deposits
The total deposits of this about to 800 million. In deposit there is increasing trend.
Deposits
80
75
70
65
60
2009,
2010
2011
WORK DONE BY ME
During my internship in the MCB bank Limited, I really enjoyed to work with the
staff of Branch, Settla town GRW and have a wish to be employee of MCB. My
internship was six weeks which was ended at 22 august. It was almost
impossible to work in all the departments within that limited time. But on my
request, the staff of the branch provided me the opportunity to work in the
different departments for the sake of practical knowledge. I am very thankful to
branch manager Sir Ashiq Ali who provides me a learning environment in the
branch.
During my internship in MCB I have worked in different departments & seats and
learnt the followings.
FIRST TWO WEEKS

INTERNSHIP REPORT
ACCOUNT OPENING DEPARTMENT

Account opening and closing is the function of accounts departments. Banks
customers may be individuals (Single or Joint), firms (partnership/proprietorship),
Autonomous
corporations,
Limited
Companies,
Charitable
Institutions,
Associations Educational Institutions or Local Bodies.
Basics to open an account

During the span of my internship in MCB, I learned and observed a lot about the
opening of an account. Basically I think that the opening of an account is the
establishment of a contractual relationship between the banker and the customer.
By opening an account at a bank a person becomes a customer of a bank.
Further I am going to express the basic requirements and steps involved in the
opening of an account.
Introduction and preliminary investigation

Before opening an account MCB as like the other banks in Pakistan ascertain
whether or not the person who is going to open the account is a desirable
customer or not. Then MCB determine the prospective customers integrity,
respectability, occupation and the nature of business by the introductory
references given at the time of account opening
In order to further strengthen and streamline this process, the Federal
Ombudsman of Pakistan, vide his ruling on complaint No. II/31/5186, has
directed the banks to retain with the account opening form a Photostat copy each
of the Computerized National Identity Cards of the person desiring to open an
account as well as that of the introducer. As per these directions, the concerned
Branch Managers are required to obtain the original National Identity Cards along
with their Photostat copies and then return the original after attesting the
authenticity of the retained copy.
Preliminary investigation is necessary because of the following

reasons:
Avoid frauds: In this regard I learned that if a banker does not make
the necessary inquiries mentioned above he may enable dishonest
INTERNSHIP REPORT
persons to possess cheque books for fraudulent purposes. If any such

person happens to be an undercharged bankrupt, the banker might be
placed in an awkward position for having allowed such a person to open a
bank account.
Safeguard against unintended overdrafts: Sometimes due to a

mistake an account may be given an overdraft, For instance, the ledger
keeper, misreading the balance of an account honors a cheque for an
amount larger than the balance. Similarly a credit entry belonging to a
customer may be made by mistake in another customers account. In such
situations the excess amount withdrawn by the customer can only be
realized if the customer is a identifiable person.
Inquiries about clients: Being a banker I think MCB has a business

obligation to respond to inquiries from other banks etc. about his
customers financial position. Though the banker gives only a general idea
about the financial standing of his customer, it should nevertheless have
the necessary information available with him.
How to open an account (General)

Before opening an account in MCB I observed that the following points must be
considered in this regard.
Another account holder of the bank should properly introduce the new
customer.
The account holder should sign the account opening form in the presence
of bank officer and the signature is duly verified.
A copy of computerized national identity Card is required by Bank.
Against submission of the Banks prescribed application form, duly

introduced in the manner provided and on supplying such document, as
may be required and account may be opened. The Bank reserves to itself
the right to refuse to open and account without assigning any reason.
Each account shall be allotted a distinct number that is to be quoted in all

correspondence with the bank relation to the account.
INTERNSHIP REPORT
Minimum amount for opening and continued maintenance of various types

of accounts is as follows:
Rs.
Saving
500
Current
500
Term Deposit 1000

The bank reserves the right to change the above mentioned minimum balance
requirement at any time without any notice.
Procedure to open an account

According to my practice in MCB, when a customer wants to open an account,
the bank officer gives him an application form. All information, which is necessary
to be known by the bank, are requirements of the application form. Form also
requires the essential documents to be attached by the customer.
Basically following information is required to open an account with MCB.
Title of Account
Full Name of Applicant
Occupation
Address
Telephone No.
Currency of account
Nature of Business
Introducers Name, Address & Signatures
Special instruction regarding the account
Initial Amount of the Deposit
Signature of the applicant
Documents to be attached
Further I learned that if you wanted to open an account with MCB then you
should attach the following documents with your application form which are
different for different categories.
INTERNSHIP REPORT
Sole proprietors account

In order to open an account with MCB Sole Proprietors have to submit their
business registration certificate number.
Private / joint account

For individual or private or joint accounts Computerized National Identity Card is
required.
Joint stock company

Before an account of a Public Limited Company is opened MCB must ask the
person authorized to do so to submit the certified copies or the following
documents
Certified true copy of the Memorandum and Articles of Association of the

company.
Certified true copy of the resolution of the board of directors / managing

committee / governing body regarding conduct of the account.
Certified list containing names and signatures of the directors / office

bearers.
Certified true copy of the certificate of incorporation or registration.
Certified true copy of the certificate of commencement of business (in

case of public limited companies).
Balance Sheet
I.D. Card copy of each director
Original is also enclosed for inspection and return
List of persons authorized to operate the account.
Power of Attorney in favor of the person opening account.
Partnership firm account

Information which is required to be submitted to MCB by a partnership firm in this
case is as follows:
Full Names
Address
INTERNSHIP REPORT
Specimen of signatures of the partners
Certified true copy of partnership deed
Registration No. if the Partnership is registered
Societies / clubs and associations account

MCB is authorized to open the accounts of the societies/clubs and associations,
These are non-trading organizations, formed for the promotion of culture,
science, education, recreational activities and charitable purposes etc. some of
these institution are registered under the Societies Registration Act, 1866, and
are issued a certificate of registration after they have been found fit for
registration.
Specimen signature
When an account is opened with MCB customer provides to the bank a
specimen of the form of signature which would appear on all his cheques to
express his authority for the payment of cheques drawn on his banker. This
specimen is taken generally on a card specially designed for this purpose, and
rule for the customers, full name, and account number are entered on it.
If the bank has reasons to doubt the genuineness of a signature, he should either
get it confirmed for his satisfaction or return the cheque with the remark
Signature differs. If the signature of the customer is forged the banker cannot
escape his liability because he has actually acted on his customers mandate.
Issuance of cheque book

When a customer opens an account with the bank, he is provided with cheque
book for withdrawals from account. However, the first cheque book is given to the
customer only when all the required documents are checked. A cheque book
Contains of 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.
INTERNSHIP REPORT
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.5.0/- per cheque and keeps
the cheque book ready for the customer, as on his advice.
The officer keeps and maintains the cheque book register Cheque book
inventory and cheque books issued are recorded in this register. The account
number for which the cheque book is issued and the number of leaves are also
recorded in this register when the cheque book issued an entry is passed in the
cheque book issue register.
In case of loss of cheque book or requisition slip on cheque book the customer
has to fill the Form No. 216-B to obtain a new cheque book.
THIRD WEEEK
FOREIGN EXCHANGE DEPARTMENT
In my third week of internship I work in foreign exchange department. The most
important thing that I learned in this department was the transaction with letter of
credit.
The steps involved in any international trade transaction are:
The Pakistan Importer places an order with the US exporter and asked the
American if he would be willing to ship under L/C.
The US exporter agrees to ship under a L/C and specifies relevant
information such as prices and delivery terms.
Power Plants The Pak. Importer applies to MCB for a L/C to be issued in
favor of the US exporter for the merchandise the importer wishes to buy.
MCB issues a L/C in the Pak. Importers favor and sends it to the US
exporters bank, the Bank of New York.
INTERNSHIP REPORT
The bank of New York advises the US exporter of the opening of a L/C in
his favor.
The US exporter ships the goods to the Pak. Importers on a common
carrier. An official of the carrier gives the exporter a bill of lading.
The US exporter presents a 90-days draft drawn on MCB in accordance
with its L/C and the bill of lading to the bank of New York. The US exporter
endorses bill of lading so title to the goods is transferred to the Bank of
New York.
The Bank of New York sent the draft and bill of lading to MCB. MCB
accept the draft taking possession of the documents and promising to pay
the now accepted draft in 90-days.
MCB returns the accepted draft to the Bank of New York.
The Bank of New York tells the US exporter that it has received the
accepted bank draft, which is payable in 90 days.
The exporter sells the draft to the Bank of New York at a discount from its
face value and receives the discounted cash value of the draft in return.
MCB notifies the Pak. Importer of the arrival of the documents. He/She
agrees to pay MCB in 90 days. MCB releases the documents so the
importer can take possession of the shipment.
In 90 days MCB receives the importers payment, so it has funds to pay
the maturing draft.
FOURTH WEEK
CASH MANAGEMENT
In fourth week I was sent to cash department and I observed that the most
important department of MCB which deals in money.
The excess cash (More than its insured limit by the insurance company) of the
branches of the region is collected by the main branch. The main branch is also
INTERNSHIP REPORT
bound to send its excess cash to the State Bank of Pakistan. No branch can
have cash its safe more than its insurance at any time at the time of closing cash,
if it is so the manager will be responsible whether or not he informed to the
regional office (exception to the limit which is insured for the day).
New Notes and Prize Bonds are also part and parcel of the Cash Management.
Keys of the Safe lockers are with the three authorized persons each one of them
is responsible for cash as at the time of closing the cash the officers including
Cash officer presented and lock the safe after counting and scrutinize the cash.
The cash officer maintain its daily cash book with specification of notes (Bonds
are also recorded in the books in relation with cash) and other vouchers, after
being satisfied the manager authenticates the books and vouchers regarding
cash with stamp and signature at the end I would like to conclude that the cash
management is being done in the MCB very effectively.
UTILITY BILLS COLLECTION

Then I was transferred in utility bills collection section. I worked in the utility bills
collection department as the MCB collects utility bills on behalf of WAPDA, Sui
Gas Companies, and Pakistan Telecommunication Corporation Limited by putting
the stamp on the utility bills Paid, Date of payment, Signature of the
officer receiving the utility bills. After receiving utility bills a list is made on the
form which is called Bills scroll form. One copy of the scroll is with the bank for
evidence whereas the original copy with the receipt of the bills is sent to the
billing department of the respective corporation. The bank charge commission on
the bills.
Fifth week
HOW TO HONOUR A CHEQUE
During my internship span in the Muslim Commercial Bank Limited, I observed
that Cheques are received for the following purposes.
i)
For Cash payments
INTERNSHIP REPORT
ii)
For transfer(from one account to another account)
iii)
For Clearing
i)
For cash Payments
Cheques which are presented on Bank counter must be checked in the following
way:
1) Date.
2) Signature of Drawer.
3) Signature of Payee.
4) Whether Bearer has cancelled.
5) Whether Payee account duly is there.
If condition 4&5 exist then check the signatures of Drawer.
6) Match the figure and wordily amount of cheque.
When all above matters are satisfied then come to the Token register and check:
1) Token number.
2) Cheque number.
3) Amount of cheque.
4) Particulars.
Two stamps are put on cheque.
a) Cash Payment (on the face of cheque).
b) Stamp for Token (on the back of cheque).
On stamp which is put for token their details are as follows:
Token number.
Time of giving token to client.
Signature of token giver.
Cheque Encashment Process (Flow Chart)

Token is assigned
to cheque
Cheque verified for

signatures
INTERNSHIP REPORT
Entries posting in
computer
Cheque approval
Balance is checked
2nd signatures of
senior officer
Cash counted and

given
ii)
Cheque for Transfer
When cheques are presented to be sent for collection and drawn on bank
situated within the city then there are three stamps to be put on face as well as
on back of cheque.
a)
Crossing Stamp (face)
b)
Transfer Stamp (face)
c)
Bank Manager Stamp (back)
iii)
Cheques for clearing
There are two stamps put on each cheque, sent for clearing:
a)
Crossing Stamp.
b)
clearing Stamp.
INTERNSHIP REPORT
iv)
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.
Sixth week
CLEARING
I spent my sixth week of internship in clearing department. The procedure of
clearing the cheques:
Following information is entered in clearing register.
a) Name of favoring party.
b) Name of bank on whom drawn.
c) Branch.
d) Cheque number.
e) Amount.
Clearing is sent after entering in register. In clearing register future date and day
is putted. Cheques and vouchers are then separated and Cheques are sent for
clearing.
Clearing credit vouchers are entered on clearing sheet. Such credits are
balanced by giving debits to cheques received in clearing from other branches. At
the beginning of the day clearing return sheet is received.
Vouchers are made if
1. Clearing received is more than clearing delivered then Credit voucher.
2. Clearing delivered is more than clearing received then Credit voucher.
On the same day, credit vouchers sent for clearing are entered on the sheet's
credit side. Cheques are sent to NIFT after taking them on calculator, their total
INTERNSHIP REPORT
amount along with total number of instruments. A summary is prepared and

sealed after noting the number of seal in summary.
Telephonic Transfer
DD- Demand Draft
PO- Payment Order
For TT, the account of beneficiary must be there in branch. DD is also prepared
and beneficiary can get payment.
First of all, Performa is filled by purchasing party along with cheque or cash
payment. When cheque is received it is first posted in computer section in order
to check the balance of account. After posting the bank officer calculate tax if
National Tax number is not there. i.e.
Rs.100000 @0, 1%
More than Rs.40000 @0.4%
Commission and postage charges are also calculated. These are paid in cash or
otherwise by cheque.
SWOT ANALYSIS
The SWOT analysis of MCB is as follows:
STRENGTHS
The strengths of MCB are:
Good reputation
MCB is the first Pakistani privatized bank because of its quality management,
marketing, innovation in products and services. Due to all such factors they have
established a good reputation in the banking market.
Strong branch network
There are large number of branches of MCB and still more branches are under
expansion plan. All the branches of MCB are in commercial areas.
Trained, Skilled & cooperative employees
The name of MCB makes you recall the highly cooperative and professional
individuals ready to serve you with maximum co-operation. Personnel of MCB
are well trained and highly skilled. Majority of employees has many years of
INTERNSHIP REPORT
experience in banking sector and are an asset for the bank. The joining of
experienced people, advanced management, advance setup and facilities gave
MCB an edge over its competitors
Faster banking services
MCB has faster banking services that are making it more prominent in the
banking industry especially in operations and Foreign exchange. Moreover bank
provides high status services in every field, whether consumer banking,
commercial banking & corporate banking
Reasonable service charges
The customer prefers this bank not only because of its faster speedy service but
also due to reasonable service charges.
Strict advances policy
One of the major strengths of MCB Bank is that very less amounts of debts turn
doubtful or bad due to their conservative policy.
Highly automated bank

MCB in Pakistan is also in the list of highly automated banks because of its
modern style of banking through fully computerized control and twenty four hour
banking.
WEAKNESSES
The weaknesses in MCB would be categorized as following:
Insufficient advertisement
The majority of people are not well aware about the products of MCB. Therefore
it should advertise extensively especially RTC and Master Cards.
Behavior towards customer
A behavior has been noted that bank tries to feel at ease with good looking, rich
and educated people and the poor looking customers feel some bit strange in the
environment of the bank. The bank employees should try to accommodate
behaviorally all types of customers.
Inefficient HR policies
INTERNSHIP REPORT
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
Mismanagement of time is another big mistake in MCB
branches, the bank
official time of closing is 5:30pm but due mismanagement of time allocation staff
is normally on their seats till 7:00 or 8:00o clock.
Overloading of work on employees
Most of the employees of MCB are overloaded with work. There is uneven
distribution of work. Promotions are not very timely.
Outdated software
The version of the software (MIBS) used by MCB is outdated. The newer version
is available but it is not applied in all the branches. So the branches with old
software have less efficiency as compared to the branches with new software.
OPPORTUNITIES
Opportunities for MCB are:
Emphasis on information technology
All the opportunities of the 21st century are to be availed in the information
technology. Information technology is the future. Therefore MCB should
emphasize much on IT, especially the E Banking. Bank can design a universal
account like other foreign banks, to enhance online facilities.
Effect of Privatization
The need of privatization has made people to switch to banks to satisfy their
needs of lending and borrowing. This not only increases the deposits but also the
credit business.
Branch network
Due to lenient licensing policy by SBP MCB Bank has more opportunities to open
new branches.
To be in the list of top banks
INTERNSHIP REPORT
MCB bank has grown up its business with a very high pace and it has got
tremendous popularity. There are many opportunities for the bank and by availing
that it can stand amongst the top banks.
Marketing
More market share and customers can be gained by effective marketing
strategies. New customer friendly products can be introduced.
THREATS
The threats from which MCB should be aware of are:
Government policies
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.
Increased competition in banking market
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 of the market.
Unstable economic situation
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. The recession experienced by
the economy has overall affected the banking industry.
RECOMMENDATIONS
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.
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.
INTERNSHIP REPORT
There is a criticism on the banking management that the salaries of the

employees are decreasing in every succeeding year. 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 unnecessary delay is made in the banking
transactions, which might not be a good sign for the bank from future
prosperity point of view.
Staff turnover particularly trained staff results 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 loose 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.
Every year some of the employees should be sent for training to other
countries and employees from other branches should be brought here.
Some more reading material should be provided. The purpose should be
to educate the employees with the advance studies in their field. The
employee should be provided the opportunities to attend and participate in
seminars and lectures on banking.
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.
INTERNSHIP REPORT
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.
Conclusion
It is evident from this report and the financial statements of MCB that it is making
progress by leaps and bounds. The profits of MCB have grown considerably
during the last few years and this trend is expected to continue into the future.
Therefore, we conclude that MCB has a very prosperous present and future,
which assures the shareholders of wealth maximization. Side by side of it I think
that if bank would be able to cover and control on the above mentioned
recommendations then it would be in such a situation that will really lead it
towards the road of prosperity, development and integrity. And with the above
mentioned sentences I think there is also a fault of the customers and in order to
make the proper working of the bank the customers should also cooperate with
the bank which will be really a good, ambitious and diligent condition for the
bank. And then bank will be really in such a situation and position to compete its
competitors in the country as well as on international level.
REFERENCES
INTERNSHIP REPORT
Gitman, Lawrence, Principles of managerial finance, Singapore: Pearson

education, Tenth edition, 2003.
Myers, Stewart and Brealey Richarad, Principles of corporate finance, New
York: MacGraw-Hill, Seventh edition, 2003
www.mcb.com.pk
MCB newsletter
www.bluechipmag.com by Shukat Aziz
www.sbp.gov.pk
www.bluechipmag.com by Atif Aziz
www.google.com

Internship Report On MCB

Hochgeladen von

Dokumentinformationen

Originaltitel

Copyright

Verfügbare Formate

Dieses Dokument teilen

Dokument teilen oder einbetten

Freigabeoptionen

Stufen Sie dieses Dokument als nützlich ein?

Sind diese Inhalte unangemessen?

Copyright:

Verfügbare Formate

Internship Report On MCB

Hochgeladen von

Copyright:

Verfügbare Formate

INTERNSHIP REPORT

Most grateful to Almighty Allah who enable me to utilize my

Advances Department & Foreign Exchange Department.

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

HISTORY OF THE MCB BANK LIMITED

Ten years after privatization, MCB is now in a consolidation stage designed to

Launching of different deposit schemes to increase saving level.

Increased participation on foreign trade.

Betterment of branches and staff service level.

MCB BANK TODAY

Year 2006 compliance

Challenging and changing the way you bank.

MCB Banks team of committed professionals is dedicated to maintaining

Mian Mohammad Mansha

Dr. Muhammad Yaqub

Mian Umer Mansha

Sheikh Mukhtar Ahmed

Mohammad Aftab Manzoor

President & Chief

Mian Umer Mansha

Aftab Ahmad Khan

Chief financial officer

Tahir Hassan Qureshi

Registrar and Share Registration Office

ORGANIZATIONAL HIERARCHY OF MCB

ORGANIZATIONAL SETUP OF MCB

NWFP & AZAD

ORGANIZATIONAL STRUCTURE OF MCB

PRODUCTS AND SERVICES

The products and services offered by MCB as a consumer bank are as

Khushali Bachat accounts

Pak Rupee Accounts

Basic Banking accounts

Smart Card / Debit Card

Rupee Traveler's cheques

6. Branches & ATMs

The details of above mentioned products & services are as follows.

MCB ATM Card

Categories of MCB ATM card

MCB ATM Gold Card

At the forefront of technological excellence, MCB proudly introduces MCB

your daily financial obligations are taken care of

guaranteeing you a good nights sleep.

Services Offered by MCB call centers

Account opening procedures

MCB bank charges

MCB merchant locations

Account Balance inquire

Pay orders request

Funds transfer request

Debit card Transactions details

Last five transactions details

Balance Certificate request

Bank Statements request

Address Change request

Zakat Deduction certificate request

Tax deduction certificate request

Mobile Banking activation

Debit card blocking

Services of MCB virtual

Khushali bachat account

It is a savings account which gives profit on daily balances.

Pak rupee accounts