Report On MCB

INTERNSHIP REPORT ON
MUSLIM COMMERCIAL BANK Ltd.

Submitted to:
SIR SYED ZAGHAM ABBAS
Submitted by:
NAME:MUZAFFAR HUSSAIN
ROLL NO. :BBA12-35
SESSION:2012-2016
(SPECIALIZATION IN FINANCE)
University of Punjab (Jehlum Campus)
Page 1
PREFACE
In BBA (HONS) program, internship is an important part. It helps in
practical experience of a professional lifestyle. When the students want
a practical experience, they should choose a right organization. During
this internship all of previous knowledge is revised in practical manner.
As a BBA (HONS) student, I have selected Muslim Commercial Bank,
AliPur Chattha. Here I learned a very interesting experience of working
with people.
This report is concerned to a brief study of operation, functions, tasks
and services of MCB Bank Ltd. Banking play very important role in the
commerce and economic development of any country. Banking system
uses modern technologies and helps in developing managerial skills.
Thats why I have decided to do my internship in the bank. In
preparation of this report I have tried my best to provide all important
information about the MCB Bank Ltd in short and comprehensive way.
This internship ends with some recommendations after identification of
problems that I observed during the course of my internship training.
Muzaffar
Hussain
Page 2
Dedication
I would like to dedicate this accomplishment to my beloved and caring parents and to my
teachers with the support of whom I am standing at this step of my life stairs.
May! Allah Give them Long Life (AMEEN)
Page 3
ACKNOWLEDGEMENT
In the name of ALLAH, the most kind and most merciful
First of all Im grateful to ALLAH ALMIGHTY, who bestowed me with
health, abilities and guidance to complete the project in a successful
manner, and without HIS help I was unable to perform this task.
I would also like to thank Mr.Shahid Naveed (Branch manager) Mr.
Muhammad Waqas (Operations Manager of MCB) for providing me
the opportunity to have an excellent learning experience during my
internship. His critical comments on my work have certainly made me
think of new ideas and techniques. I am also grateful to my teachers
who provided me with the moral support during the completion of this
report.
Muzaffar Hussain
Page 4
Page 5
TABLE OF CONTENTS
EXECUTIVE SUMMARY
6
PART I
Introduction of organization
11
1.1 History of organization
11
1.2 The Business
14
1.3 Awards and achievements
15
1.4 Vission statement
18
1.5 Mission statement
18
1.6 Objectives and goals of organization
18
PART II
2.1 Organization chart of MCB
22
2.2 Employees and personnel
23
Page 6
PART III
3.1 Administrative/ management styles
28
Organizational setup
28
Organizational Hierarchy
29
Organizational structure of branch
30
Hierarchy management
31
Branch Network
32
Branches and Sub branches
33
3.2 Situational analysis
34
PEST analysis
34
SWOT analysis
37
PART IV
4.1 Production Facilities
46
Page 7
PART V
5.1 Balance sheet analysis
62
Horizontal balance sheet
63
Vertical balance sheet
64
Graphical trend of assets in balance sheet
65
Graphical trend of liabilities in balance sheet
66
5.2 Income statement analysis
67
Horizontal income statement
68
Vertical income statement
69
Graphical trend of income statement
70
5.3 Ratio analysis
74
PART VI
6.1 Departments of my branch and my fields of activity
90
Page 8
6.2 Information about my branch

96
6.3 Controlling of accounts department
98
PART VII
7.1 Recommendations and suggestions
105
7.2 Conclusion
109
PART VIII
8.1 Weekly activities
111
8.2 Other learnings
114
8.3 References
115
Page 9
EXECUTIVE SUMMARY
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 people can also purchase
these shares and earn profit. In 1956, MCB transferred its registered office to
Karachi, where the Head Office is presently located. In April 1991, MCB
became Pakistans first privatized bank.
MCB Ali Pur Chattha 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 hold for
informing him that his account is going to be closed. There is need an
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approval from 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.
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, Paying-in-slip, Cheque Book, Cash balance book.
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 of two types: Secured Advances, 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 i. e. Farm Credit & Non Farm
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
Page 11
convertible on floating rate available to the bank. Letter Of Credit facility is

being provided by MCB in foreign exchange.
This report will provide a complete and clear image about Muslim
Commercial Bank.
Page 12
Page 13
Introduction of organization
1.1 HISTORY OF THE MCB BANK LIMITED:
DEVELOPMENT PHASE:
MCB Bank Limited was incorporated by the Adamjee Group on July 9, 1947,
under the Indian Companies Act, VII of 1913 as a limited company. The bank
was established with a view to provide banking facilities to the business
community
of
the
South
Asia.
After
the
partition
of
the
Indo-Pak
subcontinent, the bank moved to Dhaka (then the capital of former East
Pakistan) from where it commenced business in August 1948. In 1956, the
bank transferred its registered office to Karachi, Where the head office is
presently located. Thus, the bank inherits a more than 64 years legacy of
trust of its customers and the citizens of Pakistan. MCB Bank is not an
overnight success story. It started with a share capital of Rs 30 million which
is divided into 3 million ordinary shares of Rs 10 each.
NATIONALIZATION PHASE:
The 1960s decade is stated as the golden era in Pakistans economic and
financial development. The banking sector also registered noticeable growth
during that period and lent a strong helping hand to the government to
achieve rapid economic growth of the country. But in early 1970s this
scenario
changed
altogether.
The
separation
of
East
Pakistan
(now
Bangladesh) and induction of the government led by Zulfiqar Ali Bhutto were
the most significant events of early 70s having far reaching effects on the
banking system.
In the wake of rapidly changing conditions of the country, the government
decided to nationalize all the commercial banks so that the nation as a whole
can benefit from a better use of resources. Consequently, the Muslim
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Commercial Bank was nationalized under the Banks (Nationalization) Act,

1974 promulgated on January 1, 1974. In the banking sector, the then
government decided to retain only five major banks by merging all the
smaller banks with the large ones. As a result of this policy, the Premier Bank
was merged into Muslim Commercial Bank in 1974.
PRIVITIZATION PHASE:
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
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.
PRESENT POSITION OF MCB

MCB has significant contributions in building & strengthening both corporate
and retail banking sector in Pakistan. MCB Bank Ltd in 2009 delivered a profit
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before tax of Rs. 23.2 Billion registering a growth of 6% over last year. This
growth is directly attributable to an increase of 14% in CASA deposits, 21% in
revenues and a tight control on expense base enabling to retain position as
one of the most profitable banks in the country.
During 2009, MCB took several initiatives that brought even closer to their
customers. With the launch of MCB Privilege, MCB became the first local
bank to offer a dedicated proposition for the affluent segment; to meet the
growth and protection needs of customers, we introduced Banc assurance
and Investment Products in many of our branches; to enhance transactional
convenience for customers, MCB became the first Pakistani bank to launch
mobile banking. These coupled with several other initiatives enabled us to
continue on the path of growing customer base and profitability.
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.
SOCIAL SECTOR
The bank is actively 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.
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1.2 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 Balochistan (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.
Fourteen 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 multinational concerns. MCB is also

catering to the growing 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
Page 17
Banks Rupee Traveler Cheques have been market leaders for the past six
years and have recently launched their Gift Cheque Scheme.
1.3 AWARDS & ACHIEVEMENTS

2010 MMT Award:
Worlds Best Mobile
Money Transfer Bank

2009 Asia money:
Best Domestic Bank in
Pakistan
2009 The Asset:
Pakistan
2008 Euro money:
Best Bank in Asia
2008 Euro money:
Best Bank in Pakistan
2008 Asia money:
Pakistan
2006 Asia money:
Pakistan
2006 Euro money:
Page 18
2005 Asia money:
Pakistan
2005 Euro money:
2004 Euro money:
2004 Asia money:
Pakistan
2003 Euro money:
2001 Euro money:
2000 Euro money:
RECENT AWARDS/ACCOLADES IN 2014

CFA 11th Excellence Awards
Best Bank of the year 2013 Large Bank
Most Stable Bank of the year 2013
Asia money Awards

Best of the Best Domestic Bank
The Asian Banker (USA)

Strongest Bank in Pakistan 2014
Asset AAA
Page 19

Best Domestic Bank
ICAP & ICMAP

Best Corporate & Sustainability Report 2013
SAFA Award
1st Runner-up for Best Presented Accounts & Merit Certificate
SUCCESS STORIES
Since privatization, MCB's growth has been phenomenal. Today, MCB in one
of the largest foreign banks in Sri Lanka, the first bank in Pakistan to launch
Global Depository Receipts (GDR) in 2006, has strategic foreign partnership
with Maybank of Malaysia which holds 20% shares in MCB through its wholly
owned subsidiary Mayban International Trust (Labuan) Berhad since 2008,
has international indirect regional presence in Dubai (UAE), Bahrain,
Azerbaijan, Hong Kong and Sri Lanka and serving through a domestic
network of over 1,193 branches and 688 ATMs across Pakistan with a
customer base of 4.7 million (apprx.). Recently MCB has opened a new
branch in Dubai with a successful inauguration.
PATTERN OF SHARE HOLDINGS:
Page 20
Description
Shareholding
Percentage
Directors, CEO and children
52,190,877
7.5518
Associated Companies
57,009,034
8.2490
NIT & ICP
5,835
0.0008
Banks, DFI & NBFI
2,239,307
0.3240
Insurance Companies
46,052,057
6.6635
Modarabas & Mutual Funds
7,208,703
1.0431
Public Sector Cos. & Corp.
131,749,731
19.0636
General Public (Local)
101,843,819
14.7364
2,400,126
0.3473
General Public (Foreign)

Others
44,237,663
6.4010
Foreign Companies
246,167,375
35.6194
Company Total
691,104,527
100.00
1.4 VISION STATEMENT

CHALLENGING AND CHANGING THE WAY YOU BANK
1.5 MISSION STATEMENT

To become the preferred provider of quality financial services in our country
with the profitability and responsibility and to be best place to work.
1.6 OBJECTIVES AND GOALS OF ORGANIZATION:
Page 21
MCB Bank Limited is a banking company incorporated in Pakistan and is

engaged in commercial banking and related services. The Banks ordinary
shares are listed on all the stock exchanges in Pakistan whereas its Global
Depository Receipts (GDRs) representing two ordinary shares are traded on
the International Order Book (IOB) system of the London Stock Exchange.
MCB Bank Limited is a Pakistan-based company. The Bank operates in four
business segments:
Corporate finance
Trading and sales
Retail and consumer banking

Commercial banking
Corporate Finance:
Corporate finance includes underwriting, securitization, investment banking,
syndications; initial public offerings (IPO) related activities (excluding
investments) and secondary private placements.
Trading& Sales:
Trading & sales segment includes fixed income, equity, foreign exchange
commodities, lendings to financial institutions and brokerage debt.
Retail& Consumer Banking :

Retail & consumer banking includes retail lending and deposits, banking
services, private lending and deposits, banking services and retail offered to
its retail customers and small and medium enterprises.
Commercial banking:
Page 22
Commercial banking segment includes project finance, export finance, trade

finance, leasing, lending, guarantees and bills of exchange relating to its
corporate customers.
MARKETING GOALS:
CUSTOMER ORIENTED:
We treat each of our customer equality & as the most important person while
we interact with him/her. We must ensure that we do everything to meet and
exceed the customers expectations with perfect to times, accuracy & quality
services.
QUEST FOR QUALITY:
We ensure that each moment of our time is spent on value adding activity.
We always seek ways for exceeding expectations of customers & colleagues.
We also ensure that we do things right, first time every time.
FOCUS ON SOCIETY:
We ensure that we contribute our due share to the Govt. we realize that we
have a responsibility to the society in which we operate & we seek ways of
playing a positive role for the betterment of the community at large
HR GOALS:
EMPLOYEE MOTIVATION & RESPECT:
We treat each of our employees with fairness, which includes giving
constructive feedback for their development. We celebrate diversity and
seek suggestions from all employees for improvement. We ensure that
responsibility & fairness in all our decision-making.
TEAM BASED APPROACH:
Page 23
We work towards achievement of our vision & mission as a combines group.

We encourage inter & intra-departmental communications. We treat our
colleagues as our internal customers & ensure that the requirements of
internal customer focus are always met.
FINANCIAL GOALS:
We always tried to earn profits by implementing on the plans which we have
made according to the goals and objectives. We are also in the quest of
increasing the profits by delivering better and good quality.
Page 24
Page 25
2.1ORGANIZATIONAL CHART OF MCB:

BOARD OF
DIRECTORS
CHAIRMAN
PRESIDENT
AUDIT AND
WHOLESALE
CONSUMER
RAR
BANKING
BANKING
Special
Assets
Manageme
Information
Public
Strategic
Relations
Planning
Operations
Human Resource
Technology
COMMERCIA
FOREX
Financial Control
Compliance &
Control
Project
management
Risk Management
TREASURY AND
Business
Development
and
ISLAMIC
BANKING
Page 26
MEDIOCRE LEVEL MANGEMENT:

The organization chart within a department and in different offices as follows:
Divisional Heads .. Head Office
Regional Head (EVP) .. Regional Office
Zonal Head (VP) .. Zonal Office
Branch Manager .. Branch (VP,
AVP, GRADE 1, 2, 3)
2.2 EMPLOYEES/PERSONNEL:
BOARD OF DIRECTORS:
Mian Mohammad Mansha
S.M. Muneer Vice
Mohammad Aftab Manzoor
Chairman
Chairman
President and Chief
Executive
Page 27
Tariq Rafi
Director
Sheikh Mukhtar Ahmed
Director
Mohammad Arshad
Director
Shahzad Saleem
Mian Umer Mansha
Sarmad Amin
Director
Director
Director
Page 28
AUDIT COMMITTEE
Mian Mohammad Mansha
Shaikh Mukhtar Ahmed
Shahzad Saleem
Chairman
Member
Member
CHIEF FINANCIAL OFFICER

Ali Amin
COMPANY SECRETARY
Tameez-ul-haque
AUDITOR
A.F.Ferguson & co
Chartered accountants
M. Yousuf Adil Saleem & co
Chartered accountants
LEGAL ADVISOR
Chartered accountants Mandviwalla & Zafar
Advocates & legal consultants
SHARIAH ADVISOR
Dr. Muhammad Zubair Usmani
LEGAL ADVISORS
Khalid Anwer & Co.
Advocates & Legal Consultants
Page 29
SBP REPORT COMPLIANCE MONITORING COMMITTEE

Dr. Muhammad Yaqub
Mr. Aftab Ahmad Khan
Mr. M.U.A. Umani
BUSINESS STRATEGY AND DEVELOPMENT COMMITTEE
Mian Mohammad Mansha Chairman
Mr. Sarmad Amin
Dr. Muhammad Yaqub

Chairman
Mian Raza Mansha
Mr. M.U.A. Umani
S. M. Muneer
Dato' Mohammed
Hussein
Mian Umer Mansha
COMMITTEE ON PHYSICAL PLANNING, IT SYSTEM &
CONTINGENCY ARRANGEMENTS
Mr. Sarmad Amin
Chairman
Mr. S. M. Muneer
Member
Mr. Tariq Rafi
Member
Mian Raza Mansha
Member
Mr. Abdul Farid Bin Alias
Member
Mr. M.U.A. Usmani
Member
Page 30
Page 31
3.1 ADMINISTRATIVE/MANAGEMENT STYLES:

ORGANIZATIONAL SETUP
HEAD
KARACHI
QUARTER
PROVISIONAL HEAD
PUNJAB
LAHORE
SINDH
KARACHI
BALOCHISTAN
PESHAWAR
KHYBER PAKHTON
QUETTA
KHWAN
CIRCLE
OFFICES
BRANCH
OFFICES
Page 32
ORGANIZATIONAL HIERARCHY OF MCB
PRESIDENT
SENIOR EXECUTIVE VICE

PRESIDENT
EXECUTIVE VICE
PRESIDENT
SENIOR VICE
PRESIDENT
VICE
PRESIDENT
ASSISTANT VICE
PRESIDENT
OFFICERS GRADE 1
2
3
ASSISTANTS
CASHIER
PEONS
Page 33
ORGANIZATIONAL STRUCTURE OF BRANCH

Any organization needs a structure, which provides a framework for
successful operations. The operation of an organization involves a number of
activities, which are related to decision making, and communication of these
decisions. These activities must be well coordinated so that the goals of the
organization are achieved successfully.
GENERAL
MANAGER
COMMERCIAL
REGIONAL HEAD/VP
REGIONAL OPERATIONAL
MANAGER
INTERNAL
CONTROL
OFFICER
INCHARGE
FOREX
BRANCH
OPERATIONAL
MANAGER/ OG III
GEN.BANKING
DEPTT
BRANCH MANAGER/
VP
CASH
DEPTT
BRANCH SUPERVISER
CHIEF
TELLER/ASSISTANT
GBO-TRANSFER
TELLER
OUTSOURCE
GBO-REMMITANCE
GBO-CLEARING
CREDIT
DEPTT
CREDIT
OFFICER
PERSONAL BANKING
ADVISOR
TELLER
OUTSOURCE
PERSONAL
BANKING
ADVISOR-OG III
CUSTOMER
SERVICER OFFICER
PERSONAL
BANKING ADVISOROG II
CUSTOMER
SERVICER OFFICER
Page 34
HEIRARCHY OF MANAGEMENT
SEVP
ESEVP
SVP
VP
AVP
GRADE- I
GRADE-II
GRADE-III
ASSISTANT
CLERICAL STAFF
NON-
CLERICAL STAFF
CASHIER
MESSENGER
TECHNICAL STAFF
DISPATCH RIDER
Page 35
Branch network
Domestic
Operation
Overseas
Operation
1
Branches
Sri Lanka
05
1,102
Commercial
1076
Privilege
04
WBG
10
Islamic
12
Sub branches14
Bahrain
01
EPZ
01
UAE
01
(Commercial)
Page 36
BRANCHES AND SUB-BRANCHES OF MCB
Page 37
3.2 SITUATIONAL ANALYSIS

PEST ANALYSIS
POLITICAL:
Employment practices are expected to change.
Unions, Associations are being allowed to work effectively which can
affect the performance of the company both positively or negatively.
Political interference regarding policies is expected to increase as
current government is in race of power gain.
Due to lack of confidence on government investor is reluctant so
mobilization of funds is going to decrease.
ECONOMIC:
Inflation is very high which will decrease the demand as purchasing
power is decreasing.
Staff cost is increasing as basic wage rate has increased and inflation
has compelled to will compel to increase salaries.
Operating costs are increasing due to inflation.
Interest rate is increasing so loan taking has decreased.
Value of rupee is decreasing which is pressurizing the economy.
SOCIAL AND CULTURAL:
Lack of experts is in our country regarding management hence
innovative activities are slow and conventional methods are adopted.
Cultural strain to savings is the reason due to which investment
remains low.
Page 38
Declining work ethics is also our problem which is mainly due to

poverty, lack of training.
Inadequate Accountability, lack of good governance and lack of good
infrastructure helps creditor to cheat and heavy bad debts occur. Same
situation is hoped to prevail.
Inadequate Empowerment is also a usual problem in our organization
as every person want to get more power hence there is less delegation
of authority and decision making.
TECHNICAL:
MCB has computerized its most of the branches but still some are
manual there is need to computerized otherwise customers will get
bad image. Now a days computerized system is used by banks which
are very effective. But MCB will have to improve its computerized
technology as some fake transactions occur by ATM. Shortage of
electricity is a big problem,
Employees of each organization need IT training and organization has
this trend. MCB will have to follow it.
Contribution of organization towards economic development:
The year in review, 2011, saw unprecedented volatility in the economies and
financial markets across the world. The fragile economic recovery was
threatened as a series of natural and manmade calamities hit across the
world. Political instability, strained relationships with the U.S, increases in
price of oil, gas and electricity including other input costs, and perhaps most
importantly a severe energy shortage curtailed capacity growth and
hampered foreign flows into the country. The countrys fiscal deficit
expanded as efforts to boost its revenue mobilization were limited by the
governments inability to gather enough political support. The governments
Page 39
growing need to finance its deficit lead to higher borrowing from the banking
system, which in turn, helped the double digit growth in money supply,
leading to inflation averaging 12 percent in the calendar year. The external
situation which, at least until the first half was a source of strength,
deteriorated as lower exports widened the trade deficit, as external flows
diminished. Pakistan continued to fall short of its economic potential, and the
need for reorientation of macroeconomic and structural policies to stem near
term risk to macroeconomic stability and to lay the foundation for durable
and inclusive growth over the medium term, became more and more visible.
Going forward, 2012 will be full of challenges for the economy as there are
considerable downside risks to the GDP and significant external account
vulnerability. The countrys external account will likely suffer as a widened
trade deficit, miniscule FDI inflow and the upcoming deadline for foreign loan
repayments will likely result in shrinkage of the countrys liquid foreign
exchange reserves causing the rupee to further depreciate this year. The
government must work together with all of its stakeholders to take decisive
action on broadening its revenue mobilization, restructuring of public sector
enterprises and providing a solution to the incapacitating energy shortfall.
Fiscal and monetary collaboration is required to balance the policies in place
and to regain investor confidence. The resultant inflationary pressure may
rest given the other external factors losing value at the international
commodity markets. The tax revenue collection mechanism needs to be
further strengthened along with more advanced measures to minimize major
tax evasions. In short, it is anticipated that the same problems from 2011 will
be carried forward in a more decamped way making the competition in the
banking sector and the burden on consumers more difficult.
Foreign Trade:
The bank conducted import business during the year amounting to RS.54.0
billion as compare to RS.56.4 Billion in 2000. The export business slightly
Page 40
improves to RS.36.9 Billion from RS.35.1 Billion in 2000. 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.
Foreign Operation:
Our banks foreign operation in Bangladesh and Sri Lanka continue to remain
profitable. In April 1999 the Bank opened its third branch in Sri Lanka at
Marinade a suburb of Colombo.
SWOT ANALYSIS:
Strengths
MCB is the first Pakistani privatized bank and because of its quality
management, marketing, innovation in products and services is
performing well in financial market.
MCB has established a good reputation in the banking market.
Strict adherence with the banking procedures requirements, SBPs
prudential regulation requirements and its SROs and international
banking requirement as well as to its own set policies.
MCB has strong and positive image in customers mind because of its
attractive products.
Better focus on customer services and customization.
Flexibility with the changing environment.
Page 41
Induction of the highly qualified professionals to change overall set up.

MCB has very stable deposit base.
MCB is largest private bank in Pakistan with around 1000 branches,
which cover almost every part of Pakistan.
The bank enjoys competitive advantage over other banks in Pakistan.
The bank enjoys competitive profitability in the industry.
MCB has captured majority of potential customers in Pakistan.
MCB has the accounts of big organizations like OGDCL, PTCL, EFU, PTC
etc.
MCB is Successive and Market oriented.
MCB investing huge sums on HR development and training.
Customer default rate is lower as compared to other banks.
MCB has the largest ATM network in the country.
Meeting the challenges of latest Technology by introducing Smart card
remit express, mobile banking etc.
Laying foundation on sound basis; recently for this, they met with the
ORACLE representative of South Asia, to purchase ORACLE software
fortheir banking system and transform its environment in such a way
so as to come in line with those of other international banks.
Establishment of TFC: Centralized import and export center of MCB in
one special circle taking this extensive burden from branches, whereas
no other bank has done this so far.
Page 42
Maintaining an Excessive Earning Acceleration, this is expected to

result in substantial value enhancement for investors.
EUROMONEY Awards of Best Bank in Pakistan for best bank in Pakistan,
plus the accolade of best domestic band in Pakistan.
Extensive Management Restructuring to translate into bottom line
improvement for going forward. This includes induction of professionals
in strategic business areas, shedding surplus staff and shutting down
loss making low potential branches. From 1996 onwards some 350
Branches were closed down & releasing staff of approx 4600 with
golden handshake.
Larger Market Share: MCB accounts for 10.4% of total assets, 10.0% of
deposits and 11% of loans in the banking system. So it has a clear
edge over smaller banks.
Striving for income: New Team after massive restructuring is looking to
strive for greater operating income. Since 1996 bank has been able to
gain some net positive Profit After Tax amount consistently and will be
aiming to do so in near future.
Perhaps the only large bank in Pakistan to have a formal electronic
banking research cell that is exploring the technical requirements and
market size Potential of Internet Banking.
Promotion Effectiveness: MCB has developed a very encouraging
promotional principle which create great loyalty and motivation in
employees towards the bank.
Team based Approach: MCB is team of loyal and faithful experts who
keep
quality
presentation.
of
services
Projects
are
done,
outstanding
accomplished
performance
through
and
members
connectivity working as team.
Page 43
Continuous Improvement: MCB bank held diverse training programs

which enable the members or staff upgrade their knowledge. MCB has
taken initiative to introduced new schemes regarding its product and
services. In this way, it continuously made improvement in its
employees and services.
Employee Respect and Dignity: Every employee in the organization is
given due respect and honor irrespective of its status and level.
Employees feel proud to be a part of the MCB.
Quest for Quality: MCB bank always try to give its customers quality
product and services to keep them permanent client of the bank. It
always uses different channels to improve the quality.
WEAKNESSES:
The majority of people are not well aware about the products of MCB.
Therefore it should advertise extensively especially RTC and Master
Cards.
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 type of customers.
In MCB there is lack of specialized skills because of job rotation policy
of human resource department. The bank should concentrate upon
increasing its abilities on individual service basis.
Mismanagement of time is another big mistake in MCB branches, the
bank official time of closing is 5:30pm but due mismanaging of time
allocation and work the staff is normally on their seats till 7:00 or 8:00
clock.
Page 44
Process of development is bit slow due to its conservative approach.

Never prefer to be a leader and prefer to be a follower of others.
Slow improvement and acceptance of technological changes.
More emphasis on deposit accumulation and less on their mobilization.
Decision making process is very slow.
It is not having greater no. of branches abroad.
Though ATM network is the largest in Pakistan, still some potential
areas dont have the ATM.
MCB RTC is useable only in Pakistan.
Some management positrons needed are not professional.
Although most of the branches are computerized now, still some
important branches dont have computers.
Low motivational level; non-aggressive marketing.
Employees dissatisfaction due to ill treatment and improper reward
system.
Favoritism and Nepotism in recruitment.
Interest rate is inadequate.
Extensive Management Restructuring though beneficial has some
negative impacts on the existing performance of work. Such large scale
restructuring results in too much load on single person plus the fear of
being fired from the job at any moment.
Page 45
It is extremely condemnable that sometime a circular is kept

clandestine and not disclose to the staff by the branch managers which
is in line with their needs due to some inexplicit ulterior motives.
Lack of Job Rotation: Job rotation has not been given due consideration
and employees get bored due to monotony.
No Conspicuous rise in Staff Salary.
Management apart from lack of other employees benefit funds, nothing
is done to enhance the staff salary to be used as basic motivational
factors in an effort to cut down the administrative cost by the
management.
OPPORTUNITIES:
Greater potential and opportunities for Credit Division if Liberal Policies
being adopted.
MCB can grab more market share for its RTCs, remittances and forex
department through effective promotional and liberal policies.
Inclusion of highly qualified professional can change the whole scenario
and position of the bank if they have given the due liberty in
performing their duties.
Adoption of information technology will improve the customer services.
More
mobilization
of
accumulated
deposit
is
possible
through
innovative financing to Agro Based Sector.

Leasing sector is growing in Pakistan for the last two to three years
which provides opportunity to MCB to go ahead in this area as well.
MCB is providing Consumer Finances at comparatively lower rates
which paves a way to grab more customers
Page 46
Financing to small/medium cottage industries will definitely increase its

advances and profitability as well.
Islamic Trading Based Banking can enhance the business of the bank.
Targeting of Hundi/Hawalla through networking and IT potential of
MCB.
Profitability is expected to strengthen despite decline in interest rate.
The drop in interest rates is expected to spur the private sector credit
growth in an effort to kick-start the dormant economy serving as
impetus for productivity activity in economy; which is likely to
compensate for lower interest margins that result from less than
proportionate drop in deposit rates.
Banking sector fundamentals improving; on the back of economic
stabilization, improved monetary and foreign exchange reserves
management by the central bank and drive against loan defaulters.
MCB with its large branch network and huge diversified clientele is
placed to benefit from lower NPLs, a new dynamic and cost conscious
management, and greater credit demand on the back of governments
conscious initiative towards a deflationary monetary policy.
MCB to show growth in value creation.
More Focus on consumer banking activities.
Strong earnings momentum expected in future, through focus on loan
book growth, efficient utilization of idle cash and declining NPL.
Deposit expected to grow in future: The Governments decision to
lower interest rates has challenged the banking sector, including MCB,
on the deposit mobilization front. At the same, however, MCBs large
branch network coupled with its excellent market standing compared
Page 47
with other banks offering similar returns on deposits is expected to

retain even bolster its deposit base in future at the expense of less
efficient public Sector competitors.
THREATS:
Change in government policies has affected the banking business. Still
banks have to wait to get permission of state bank. The freezing of
foreign currency accounts is a vital example of letting people not to
trust on banks.
The Competition has become severe by the entrants of so many banks,
So to exist one will have to prove himself in its services through
excellent management and will have to satisfy its shareholders.
Otherwise he will be out the market.
Employees unions have been allowed if not managed properly can
affect performance.
The decrease purchasing power of consumer in the current economic
situation of the country affecting the business activity speed too much
and the result is the low investment from the investors in new projects
can create problem for the bank because it is working a lot in trade.
Introduction of credit marketing by local and foreign banks is badly
affecting the mobilization of the MCBs deposits due to the non
presence of such department in it.
Other private commercial bank with sound profitability is also a threat
to MCB e.g. UBL, Alfalah, HBL etc.
For the last of many years, Pakistan is facing economic and political
instability which is a big threat.
Page 48
Afghan war and Iraq war has a deep effect on the economy of Pakistan,
which may affect MCB.
Foreign banks are flourishing in field of consumer financing.
People dont prefer banking culture. They mostly prefer cash
transactions.
MCB since 1996 is performing well in all most every department at
national level particularly. However if there is some competition that
MCB may expect to face come from the four nationalized commercial
banks, which compete with the MCB in terms of deposit mobilization at
retail level.
Other banks working on the same phenomena seeking for proficient
and efficient staff is expected to enamor qualified and experienced
employees of organization by offering some brilliant incentives in the
form of high salary and other benevolent funds and this thing may also
attract existing efficient staff of MCB. To some extent they seem to be
effective in their efforts.
Page 49
Page 50
Page 51
4.1 PRODUCTION FACILITIES

PRODUCT & SERVICES
MCB CORPORATE FINANCING:
MCB Corporate Financing provides access to diversified financing options,
including working capital loans, term loans, trade finance services and
investment banking.
Working Capital Loans:
Based on the customers specific needs, the Corporate Bank offers a number
of different working capital financing facilities including Running Finance,
Cash Finance, Export Refinance, Pre-shipment and Post- shipment etc. Tailormade solutions are developed keeping in view the unique requirements of
your business.
Term Loans:
MCB offers Short to Medium Term Finance to meet capital expenditure and
short term working capital requirements of our customers. The loans are
structured on the basis of underlying project characteristics and cash flows of
the business.
Trade Finance Services:

Under Corporate Banking MCB offers trade finance services that include an
entire range of import and export activities including issuing Letters of Credit
(L/Cs), purchasing export documents, providing guarantees and other
support services.
Cash Management:
Page 52
Cash Management provides a wide range of value added services to large

corporations through its vast network of online branches. Our structured and
customized products enable our customers to realize their sales proceeds
swiftly from all over the country, supported by real-time MIS.
Transaction Banking Division

Transaction Banking provides wide range of value added services to large
corporations through its vast network of real-time online branches
network. Our structured and customized products enable our customers
to realize their sales proceeds swiftly from all over the country supported
by real-time MIS.
The basic products offered by Transaction Banking Division are as under:
Collections
Payments
Channel Financing
Local Rupee Drawing Arrangement
Home Remittances
MCB RETAIL BANKING

DEPOSIT ACCOUNTS:
Current Account
MCB Bank offers a variety of current accounts to cater to the everyday

transactional needs of various customers. These accounts ensure ease and
freedom to bank from any of the 1,100 branches across the country. The
different accounts include: the basic account that has no minimum balance;
Business Account offering free online transactions, Demand Drafts,
Page 53
Pay Orders and lots more to meet the day to day business requirements;
Current Life Account which offers the security of life insurance free of cost;
and for all the others the conventional Current Account.
Savings Account:
It offers a wide array of savings products that suit short term growth &
transactional needs. Our savings accounts offer attractive profit rates as well
as flexibility to transact. Savings Xtra is targeted for customers having Rs. 5
million deposit, 365 Gold offers profit rate on daily balance while PLS savings
has a lower minimum balance requirement. In addition, a unique product:
Smart Savings is an account run solely via a debit cart, offering a very
competitive rate to small savers.
Foreign Currency Account:

Enjoy the confidence of operating an international account, locally. MCB
Foreign Currency Account offers the option of earning attractive returns on

your Foreign Currency Investment.
Saving 365 Gold:
MCB Savings 365 Gold Account offers you a wide range of attractive profit
rates. The MCB Saving 365 calculates profits on a daily product basis and
gives you the facility of unlimited withdrawals.
Smart Dollar Account:
MCB Smart Dollar Account is a sensible way to maintain or grow your US
Dollar deposit across USD Current, Savings or Term Deposits.
Special Term Deposits:
With a wide range of choices and tenors, you can open one or more term
deposit accounts that best suit your current or long term needs MCB Term
Deposits offer attractive short to mid-term investment options with flexibility,
convenience and security. With various tenor options available customers
Page 54
can choose one that suits their needs. This is combined with different profit
payout options and the added facility of being able to avail credit facility
against their deposits.
Business Accounts
MCB Business Account lets you build your business through the accrued
savings from discounted transaction fees, and more.
Saving Xtra Account
MCB Savings Xtra Account offers you a wide range of attractive profit rates.
Grow with MCB Xtra by saving more and earning greater profit.
Current Life Account
The coverage you need for the life you lead. MCB Current Life gives you the
peace of mind of comprehensive life insurance in a current account and fits
right into your lifestyle
Mahana Khushali Bachat
MCB Monthly Khushali Scheme provides you with a steady income every
month. Just purchase a Monthly Khushali Certificate and you will enjoy a
steady income of your total deposit every month. Terms deposit.
MCB BANCASSURANCE:
Combining the best of banking and insurance solutions, MCB Bancassurance
has created a one-stop shop for all your financial and insurance needs.
Whether you want to save for your childs education or marriage, for the
security of dignity after retirement or gaining maximum return on savings,
MCB Bancassurance has a plan just for you.
Flexi Life
Life Partner
Page 55
Edu Care
Dream Wedding
Capital Sure
Retire Easy
Income Max
Future Assure
Protection Plan
MCBS REMITTANCE:
Fast, secure and easy-to-use, MCB's Remittance Services is an efficient way
to transfer money overseas. You can remit funds from any country to
Pakistan through Swift System. MCB Home Remittance provides a seamless
inflow of foreign remittances credited in the beneficiarys account within
minutes. Cash payments can also be made at our designated branches on
behalf of Xpress money, Samba (Speed cash now) and Money Gram, along
with cash payments from other correspondents all over the world.
MCB LOAN PRODUCTS
Car4U:
MCB Car4U not only gets a car of your own choice but is also affordable with
competitive mark-up, flexible conditions, easy processing and above all, no
hidden costs.
Business Sarmaya:
Good cash flow is the key to any successful business. MCB BusinesS Sarmaya
offers running finance facility against your house/ flat, insuring a steady cash
flow for your business.
Pyara Ghar:
Page 56
MCB Pyara Ghar is an ideal Home Finance from your own bank that lets you
Purchase, Renovate or Construct your home the way you have always
wanted. Having your own home was never so easy
Easy Personal Loan:
MCB Easy Personal Loan provides you with the financial advantage to do
things you've always wanted to but never had the sufficient funds for. Take
that much-needed holiday. Buy a car. Refurnish your house. Purchase a new
TV. Finance a better education for your children.
Instant Finance:
With MCB instant Finance get a loan instantly at any MCB branch against
liquid collateral at competitive pricing.
MCB RUPEE TRAVELERS CHEQUE
It is a safe and secure way to make payments nationwide. MCB Rupee
Travelers Cheque, being the market leader, is the most widely accepted way
to pay cash for travel-related purposes MCB Rupee Traveler's Cheques were
first introduced in 1993 as safe cash for traveling and travel related
purposes.
MCB ONLINE SERVICES
ATMs:
MCB has one of the nation's largest ATM networks with over 450 ATMs and
still growing. MCB ATMs give you 24-hours convenience of cash withdrawal,
mini-statement, utility bill payment, funds transfer services and much more.
With MCB Mobile ATM not only do we provide you with world class banking
service but we also provide convenience. Our innovative mobile ATMs ensure
that you are given service close to you.
Call Center:
Page 57
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.
Theres no easier way to bank than the new enhanced 24/7 MCB Call Center,
which blends innovation and convenience to provide Banking Services that
go beyond expectations. With MCB Call Centre you can maintain your VISA
credit & ATM/Debit cards, check your account balances, confirm last 5
transactions, pay utility & mobile phone bills, top-up your mobile, pay MCB
Visa Credit Card bill from your MCB account, transfer money within your own
accounts in MCB and register complaint.
Mobile Banking:
At the forefront of technological excellence, MCB proudly introduces MCB
MOBILE BANKING. MCB Mobile is a quick easy and secure way to recharge
mobile phones, transfer money, pay bills and do much more. No need to visit
a branch or an ATM anymore, login to www.mcbmobile.com using your
mobile phone and start transacting.
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,
SNGPL, KESC, Mobilink, Supernet, IESCO,HESCO, and
Ufone. So, save your precious time by avoiding long queues and pay your
bills through MCB Easy Bill Pay.
Online Banking:
MCB has a fast growing network of over 1,100 online branches in the country
providing customers real time online transaction facilities.
Page 58
MCB CARDS
Smart Card:
MCB Smart Card is the key that enables access to convenient banking
services. Smart Card allows you to manage your account, withdraw cash,
transfer funds, pay utility and mobile bills, recharge prepaid connections,
register for mobile and internet banking services and much more. The
convenience and flexibility of MCB Smart Card 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 now brings MCB Smart Card -a secure and convenient instrument of
payment with unmatched functionalities. It provides 24-hour direct access to
your bank account.
Debit Card:
Now MCB brings a secure, convenient and quick payment facility that
enables you to do purchasing by using your existing MCB ATM / MCB Smart
Card as a DEBIT CARD.
Visa Credit Card:
MCB offers a complete suite of Classic, Gold and Platinum Visa Credit Cards
focusing on providing, superior service, travel privileges & shopping
pleasure. It also offers comprehensive insurance & installment plans, reward
points and SMS alerts that give a different feel to the world of Credit Cards.
These unique features include i-revolve, which makes variable mark-up rate
available to customers allowing them to repay at affordable rates.
Page 59
MCB INVESTMENT BANKING

Make the most of your wealth with investment opportunities that match your
unique financial aspirations. MCB Investment Services offer distribution of
mutual funds managed by the leading fund managers of Pakistan. We can
suggest the products most suited for your needs, or work with you to create
a personalized solution completely focused on your expectations of the
capital markets
MCB goal is to provide best financial solutions to client helping them
achieving their objectives and support economic growth of the Country.
The basic services offered by investment banking are as under:
Project & Structured Finance
Involves financing complex projects, usually in an SPV structure, where the

loan is tightly structured around the cash flows, risks are allocated amongst
various stakeholders, and there is limited or no recourse to the sponsors.
Syndicated Loans and Debt Capital Markets
It involves structuring/advisory arrangement, underwriting and placement

services for significant financing requirements by large corporate and
institutional clients to other financial institutions or through the debt capital
markets.
Quasi Equity/Hybrid Instruments
It structures and places a category of debt that has some characteristics of

equity such as being unsecured, subordinated or with a potential equity
upside.
Equity Capital Raising
Equity Services relate to raising capital for clients by offering common or

preferred equity to public or private investors, through initial public offers,
offers for sale, rights issues and private equity placements.
Page 60
Advisory Services:
Financial and Capital Raising Advisory provides clients with financial advisory
services, commercial structuring support and access to capital resources to
help companies successfully finance their business/project.
Facility Administration:
Management of creditor interests in syndicated transactions in capacities

such as facility agent, security trustee, project monitoring bank, book-runner
etc.
Commercial Banking:
Complementary products and services such as revolving lines of credit, trade

services and cash management that may be bundled with our Investment
Banking Products.
MCB AGRICULTURE PRODUCTS
MCB has been providing finance to the agriculture
sector since 1973. With the help of our vast branch network, specialized staff
posted in the branches, multiple and diversified product range, we cater to
the financing requirements of the farming community spread throughout the
country and facilitate in achieving increased productivity.
Shadabi Plan
Shadabi Plan caters the financing needs for production activities on the farm
which mainly include seed, pesticides and fertilizers along with provisions for
miscellaneous expenses like payment of electricity & diesel bills of tubewells,
maintenance expenses for tractors and the like items as per list of Eligible
items.
Khushali Scheme
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Under Khushali Scheme loans/finances are allowed for farm/ non-farm credits
which include fixed investments/working capital requirements. Amount of
finances sanctioned depend upon the credit requirement and collateral.
Financing for land leveling/development, heavy equipments, agriculture
machinery, vehicles/transport for agri purpose are covered under this
scheme. There may be other development projects proposed by the farmers
falling with in the ambit of agri financing, which can be considered under this
scheme.
Tractor Finance Scheme
To boost up the mechanized farming in the country, Tractor Finance Scheme

is introduced to offer specialized services to farmers. Under this scheme,
there is no requirement of minimum land holding because of multipurpose
use of tractor for agriculture cum commercial. However, the repayment
capacity and potential use of tractor will be evaluatedat the time of loan
processing.
Aabiari Scheme:
Under the Aabiari scheme, financing facilities for tube well, other wells,
irrigation systems of all types including sprinklers are covered. The purpose
is to facilitate the farmers in overcoming the shortage of water for
cultivation/plantation since water is essential requirement for crops.
Grower Finance:
Grower
Finance
growers/farmers
is
unique
of
sugarcane,
way
of
cotton
financing
and
registered/(bonafide)
rice(mills).
The
special
characteristic is that the financing facilities are extended to farmers against

the Mill/Factory guarantee. Fixed/floating charge may be created on the Mill's
assets and the loan is disbursed directly to the growers. This finance is short
Page 62
term in nature but the tenure may extend to eighteen months in case of
growers of sugarcane.
Dairy & Meat Plan:
The plan is aimed at promoting the Dairy sector & meat production in the
country. The farmers are extended financing facilities to purchase dairy
animals for milk and for the establishment of animal fattening stations to
increase meat production on commercial line, thus enabling the farmer to
create more income.
Murghbani Scheme:
Murghbani Scheme covers extensively all requirements of the poultry

industry with focus on facilitating the farmers. We offer financing facilities of
all types of activities in the value chain starting from establishment of
poultry farms infrastructure to all requirements in the process till the final out
put including marketing of the same by the farmers. Value addition process
by the farmers for poultry processing is also covered under the scheme.
Baghbani
The scheme aims at facilitating the farmers engaged in horticulture by

extending credit facilities covering the entire range of related activities. The
proposals are assessed keeping in view the market potential and repayment
capacity based on the cash flows of the activity.
The farmers are extended all type of credit facilities required to produce
fruits & vegetables of better quality. The repayment of the loan is as per
farmer convenience or linked to crop cycle and timings of cash flows.
Facilities like running finance, working capital requirements, infrastructure
development, machinery & equipment, irrigation etc are all covered under
this scheme. Progressive farmers are specially encouraged.
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Mahigeri Scheme
Mahigeri Scheme caters to the credit needs of fish farmers covering entire
range of activities including marketing of their produce. The loans are of
short, medium and long term depending upon the purpose. Financing for
value addition process by the fish farmers is also covered under the scheme.
VIRTUAL BANKING
MCB provides the convenience of banking via internet, whether at home,
office or on travel, log on to www.mcb.com.pk and enjoy 24 hour access to all
your accounts at MCB for great number of services such as Funds Transfer,
Utility Bill Payments, Mobile Top-ups and much more.
Detailed Account Summary of all listed accounts.

Mini-statements of each of the listed accounts showing recent transaction
history for that account(s).

Statement-by-Period of each of the listed accounts, based on the period
specified.
Immediate or Scheduled Transfer of Funds between your own accounts, as
well as to third-party accounts setup as beneficiaries, maintaining
accounts with MCB.

Scheduling of One-Time as well as Recurring Funds Transfers.
Payment of utility bills for registered Utility Companies.
Immediate or Scheduled Bills Payment. Scheduling of One-Time as well
as Recurring bill payments. Option for Full or Partial payment based on
the payment conditions specified by a particular Utility Company.

Bulk Salary Transfer for Corporate Customers, to facilitate them in paying
salary to the corporate employees, who maintain accounts with MCB.

Bulk Funds Transfer for Corporate Customers.
Cheque Book Request for any of your listed accounts.
Payment/Transfer Alerts for reminding, in advance, prior to the processing
of specified payments and transfers

Personal Alerts for reminding of pre-specified events and occasions.
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ISLAMIC BANKING:
With the help of Shariah specialists, lawyers and
professional commercial bankers, MCB
Islamic Banking provides Riba Free and Shariah Compliant solutions to
various customer
segments in a growing number of cities.
Deposit Schemes
For customers who are looking for a deposit opportunity where they can
purse their funds and reap halal returns on it, MCB offer the following
products:
o Al-Makhraj Saving Account

o Al-Makhraj Ianat Account
o Al-Makhraj Term Deposit
Fund Based Facilities:
MCB offers 3 broad Islamic fund based facilities:
o Ijarah
o Murabahah
o Diminishing Musharika Equipment
Ijarah Products:
MCBs Islamic Ijarah, analogous to the English term 'leasing, is based on the
Ijarah wa Iqtina concept which means the sale of the asset to the lessee
after the Ijarah has matured. Under this scheme, MCB will be the owner of
the asset, and the customer (lessee) will be given the asset to use for a
certain period of time in return for monthly rental payments.
MCB will give a separate unilateral undertaking that it will offer to sell the
asset to the customer (lessee) at the maturity of the Ijarah agreement at a
price that may be equal to the security deposit amount, hence the term Wa
Iqtina
Page 65
Types of Ijarah
Car Ijarah
Equipment Ijarah
Murabahah:
It is a contract between a buyer and a seller under which the later first
purchases the goods at the request of the former i.e., customer and then
sells it to same customer after adding profit.
Murabah Sale Price = Cost + Expenses incurred + Agreed Profit
Musharika Equipment:
It is a contract through which the bank and its client participate in the joint
ownership of a property. The share of the Bank is further divided into a
number of units and it is agreed that the client will purchase the banks
share periodically, thus increasing his own share until all the units of the
bank are purchased by him so as to make the client the sole owner of the
property.
PRIVILEGE BANKING
A first from a local bank, MCB Privilege through its dedicated, world class
Privilege Centers
offers a higher level of personalized services, more
rewarding in-branch experiences and a wide array of deposit and investment

products that are tailored to meet the financial expectations for affluent
clientele. As members of MCB Privilege, customers experience unparalleled
advantages that put them ahead of others. MCBs dedicated Privilege
Centers a wait to welcome you in Karachi, Lahore, Islamabad and Multan,
with plans to expand to more locations.
OTHER SERVICES
MCB MNET:
Page 66
MNET is an electronic inter-bank connectivity platform for online transactions

on ATM and other remote banking channels. It offers other Value Added
Services that include a portfolio of e-banking and payment system products
as well as management and day-to-day operations of the same. Members
include 10 local and foreign financial institutions enjoying ATM sharing and
Value Added Services.
MCB Salary Club:
A payroll solution designed to make life easy; it simplifies all the monthly
payroll related banking needs of employers and opens the door to a world of
special offers for employees.
Salary Club provides the convenience of having an extensive range of
financial services available to employees at their place of work.
MCB Lockers:
MCB Lockers are the best protection for your valuables. Lockers of different
capacities are available nationwide.
MCB SMS Banking:
Banking at your fingertips SMS anytime to get information regarding balance,

mini statements and credit card related information once your card is linked.
MCB Full Day Banking:
Enjoy the convenience of extended banking hours from 9am to 5pm,

including Saturdays at MCB FULL Day Banking branches across the country.
Page 67
Page 68
During the span of my internship I came across many experiences. I learned

so much about the MCB. After the brief history and my internship experience
in MCB I analyzed the financial position of the MCB. MCB was initially a
government bank but know it had become the private bank.
"Financial statement analysis is the process of identifying of

financial strengths and weaknesses of the firm by properly
establishing relationship between the items of the balance
sheet and the profit &loss account,"
First of all I analyzed the balance sheet and profit and loss statements of past
4 years of MCB. These helped me a lot to see the position of MCB. It had
made a strong position in the economy of Pakistan. After the financial
position of MCB I compared the ratios of past 4 years for making my research
more strong. It gave me more information about the MCB.
Page 69
5.1 FINANCIAL ANALYSIS OF BALANCE SHEET

Balance sheet of MCB
Rs. in
million
For the period ended 2011-14
Assets
2010
201
1
2258
01
2011
2
2395
83
2013
2014
2482
43
3035
59
2588
91
3579
8
4025
1543
1236
2
5332
1542
3194
93
3327
486
2908
34
8510
5
4744
1694
1110
7
4054
1636
3991
73
-2783
3231
58
1076
15
3736
2345
7941
3143
1636
4495
74
-2550
1415
38
3289
87
4448
2284
1215
1
3960
1573
4949
40
-1703
5680
1982
213
061
-
316
652
4020
69
4490
06
1790
0
5111
37
Cash &balance with

banks & lending to
financial institutions
46886
other assets
54534
5635
9
5442
1
653
233
6016
4
6408
3
7658
99
6270
8
5555
2
8155
08
5118
8
6874
7
9346
31
1674
46
1893
93
2145
24
2364
27
Advances
254552
Investments
Treasury bills
196047
Pakistan investment
bonds
TFC's, Debentures, Bonds
Euro bonds
Shares in listed and
unlisted companies
sukooks bonds
Subsidiaries
Investment at cost
8152
7393
1469
213
061
-
provisions for diminution

in value of inv.
surplus/ deficit
Investment at
revaluation of securities
TOTAL ASSETS
567553
LIABILITIES
Deposits
current deposits
Page 70
savings deposits
term deposits
Total deposits
431372
Borrowings
25685
Bills payable
10266
Other liabilities
21027
Total liabilities
488349
2322
41
9150
2
4911
89
3910
1
9467
2467
5
564
431
2750
18
8065
0
5450
61
4644
11
8065
0
7895
1
6641
48
3532
04
6460
2
6323
30
3854
3
1013
9
2426
6
7052
77
3896
85
6221
8
6883
30
5954
3
1662
8
4002
7
8045
27
Net assets
79204
888
02
3024
0
1102
31
1301
04
Equity without surplus
69181
789
15
1017
51
9727
2
1069
08
HORIZONTAL ANALYSIS OF BALANCE SHEET

Rs. in
million
Page 71
Assets
2010
100%
2011
88%
2012
94%
2013
97%
2014
119%
100%
132%
148%
164%
72%
100%
49%
58%
45%
54%
100%
167%
150%
107%
164%
100%
104%
111%
111%
107%
100%
100%
100%
120%
99%
115%
128%
117%
134%
133%
101%
143%
109%
126%
164%
Deposits
current deposits
savings deposits
term deposits
Total deposits
Borrowings
Bills payable
Other liabilities
Total liabilities
100%
100%
100%
100%
100%
113%
152%
92%
117%
115%
126%
180%
785%
375%
135%
146%
150%
98%
115%
144%
159%
231%
161%
190%
164%
Net assets
100%
112%
38%
139%
164%
100%
114%
147%
140%
154%
Advances
Investments
Treasury bills
Pakistan investment bonds
Euro bonds
unlisted companies
sukooks bonds
Subsidiaries
Investment at cost
provisions for diminution in
value of inv.
surplus/ deficit
Investment at revaluation
of securities
Cash &balance with banks
& lending to
other assets
TOTAL ASSETS
LIABILITIES
Page 72
VERTICAL ANALYSIS OF BALANCE SHEET

Rs. in
million
Assets
2010
2011
2012
2013
2014
Advances
Investments
Treasury bills
Pakistan investment bonds
Euro bonds
44%
35%
31%
30%
32%
34%
1%
40%
5%
1%
0%
38%
11%
1%
0%
40%
13%
0%
0%
15%
35%
0%
0%
1%
2%
1%
1%
1%
1%
1%
0%
0%
0%
49%
-1%
0%
52%
0%
0%
55%
0%
0%
53%
0%
0%
1%
0%
2%
48%
52%
55%
55%
0%
0%
0%
0%
9%
8%
100%
8%
8%
100%
8%
7%
100%
5%
7%
100%
26%
36%
14%
25%
36%
11%
26%
43%
8%
25%
42%
7%
76%
5%
1%
3%
75%
6%
1%
4%
71%
61%
11%
10%
78%
5%
1%
3%
74%
6%
2%
4%

unlisted companies
sukooks bonds
Subsidiaries
0%
Investment at cost
provisions for diminution in
value of inv.
surplus/ deficit
Investment at revaluation
of securities
Cash &balance with banks
& lending to
8%
other assets
9%
TOTAL ASSETS
100%
LIABILITIES
Deposits
current deposits
savings deposits
term deposits
Total deposits
Borrowings
Bills payable
Other liabilities
Page 73
Total liabilities
86%
13%
86%
0%
14%
87%
0%
4%
86%
0%
14%
86%
0%
14%
Net assets
12%
12%
13%
12%
11%
Graphical trend of assets in balance sheet:

600000
500000
400000
Advances
Investments
300000
Cash and balance

with banks
other assets
200000
100000
0
2010
2011
2012
2013
2014
COMMENTS:
I have observed that from 2010 to 2014 overall assets of MCB bank
increased in a uniform manner. This shows that MCB has progressed in
assets from the last few years. Cash and balance with banks and other
institutions is showing the same trend in 2011 and 2012 but after that it goes
on increasing in 2013. The increase in investment shows a positive effect
which means that MCB will have greater returns in future. As compared to
Page 74
2010 the overall assets of MCB are increasing and I concluded that at this
time MCB is in profit gaining condition.
Graphical trend of liabilities in balance sheet:

800000
700000
600000
500000
Deposits
Borrowings
400000
Bills payable
300000
Other liabiities
200000
100000
0
2010
2011
2012
2013
2014
COMMENTS:
In the above given graph, the overall liabilities of MCB also show the
increasing trend but due to decrease in borrowings up till 2014 it gives the
Page 75
positive effect to the balance sheet and financial position of MCB. The graph
also shows that 2010 was the most difficult year for the bank. And deposits
are also giving increasing trend which is good for bank.
Page 76
5.2 ANALYSIS OF INCOME STATEMENT

Income statement of MCB
Rs. In million

2010
2011
2012
2013
2014
Markup income
54821
Markup expense
17988
6814
7
2362
0
4452
6
8112
6835
6
2750
0
4085
6
9153
7726
9
3375
7
4351
2
1343
5
5694
7
Non interest income
6265
Total income
43098
5263
9
5001
0
6506
4
2719
6
3786
8
1117
1
4903
9
Admin expense
15394
PF reversal
-3220
1777
4
2189
1958
6
2521
2041
1
1701
2144
3
832
Other charges
1075
-1917
-413
-876
-1056
29850
3513
7
3253
2
2945
3
3528
0
444
779
356
3101
2875
481
2829
1094
26253
3148
3
1205
8
1942
5
3205
4
1111
3
2094
1
3228
8
1079
3
2149
5
3672
9
1240
5
2432
5
Gross profit margin
36833
Non markup expense
Profit before provision

Provisions
Against investment
against loan & advances
Profit before tax
Taxation
9379
Profit after taxation
16874
Page 77
HORIZONTAL ANALYSIS OF INCOME STATEMENT

Rs. In million

2010
2011
2013
2014
124%
2
012
124%
Markup income
100%
118%
140%
Markup expense
100%
131%
152%
151%
187%
100%
120%
110%
102%
118%
Non interest income
100%
129%
146%
178%
214%
Total income
100%
122%
116%
113%
132%
Admin expense
100%
115%
127%
132%
139%
PF reversal
100%
67%
78%
52%
25%
Other charges
100%
178%
38%
81%
98%
100%
117%
108%
98%
118%
Against investment
100%
175%
0%
1%
80%
100%
92%
15%
91%
35%
Profit before tax
100%
119%
122%
89%
139%
Taxation
100%
128%
118%
115%
132%
100%
115%
124%
127%
144%
Gross profit margin
Non markup expense

Provisions
Page 78
VERTICAL ANALYSIS OF INCOME STATEMENT

Rs. In million

2010
2011
2012
2013
2014
Markup income
9%
10%
9%
8%
8%
Markup expense
3%
4%
4%
3%
4%
6%
7%
5%
5%
5%
Non interest income
1%
1%
1%
1%
1%
Total income
7%
8%
7%
6%
6%
Admin expense
2%
2%
3%
3%
2%
PF reversal
0%
0%
0%
0%
0%
Other charges
0%
0%
0%
0%
0%
5%
5%
4%
4%
4%
Against investment
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
Profit before tax
4%
5%
4%
4%
4%
Taxation
1%
-2%
-1%
-1%
-1%
2%
3%
3%
3%
3%
Gross profit margin
Non markup expense

Provisions
Page 79
Graphical analysis of income statement:
90000
80000
70000
60000
Markup income
Markup expense
50000
gross profit margin
40000
Provision against
investment
30000
Provision against loan and

advances
20000
10000
0
2010
2011
2012
2013
2014
COMMENTS:
The markup income of MCB shows the increasing trend which is profitable for
the bank. But the gross profit margin is running with the uniform trend. There
are no drastic changes in the above mentioned items of income statement
from 2010 to 2014. My vision is that, MCB will suffer from increasing trend in
the upcoming years. And proper planning and forecasting methods can lead
it to the highest peaks of the success.
Page 80
TOTAL INCOME:
TOTAL INCOME
60000
50000
40000
TOTAL INCOME
30000
20000
10000
0
2010
2011
2012
2013
2014
COMMENTS:
From the analysis of total income I concluded that MCB is showing an
increasing trend in the income. Present position of MCB shows that this
remarkable increase will continue in the future years. This positive effect in
income of MCB will also increase the total profits of MCB.
Page 81
NON MARKUP EXPENSES:
25000
20000
15000
Admin expense
PF reversal
10000
Other charges
5000
0
2010
2011
2012
2013
2014
COMMENTS:
In the above mentioned graph, admin expense shows the increasing trend
throughout. Other charges and PF reversal are not increasing and causes the
decrease in expenses. According to my point of view these expense will not
take the bank into bad conditions in any forecasted year.
Page 82
TOTAL PROFITS:
Total Profits
25000
20000
Total Profits
15000
10000
5000
0
2010
2011
2012
2013
2014
COMMENTS:
The graph about the total profits of the MCB shows that the profits are
continuously increasing. And with a good problem solving techniques,
management, employees selection method, proper planning and
rational thinking style MCB can make more progress in the banking
sector of Pakistan. As compared to other banks it gives better facilities
to its employees and also to its customers.
Page 83
5.3 RATIO ANALYSIS

Financial ratios can be divided into the following six parts.
Liquidity ratios
Activity ratios
Leverage ratios
Profitability ratios
Investor ratios
Bank special ratios
All of these are further divided into following types:

A. Liquidity ratios
o Current ratios
o Quick ratios
o Absolute Liquid ratio
B. Activity ratios
o
o
o
o
Inventory turnover ratio

Average collection period
Average payment period
Total assets turnover ratio
C. Leverage ratios
Solvency analysis of a firm indicates the amount of the other peoples money
being used to generate profit. In general, these analyses are more concerned
with long term debts, because these commit the firm to a stream of
payments over the long run. These are divided into following types
o Proprietary ratio
Page 84
o
o
o
o
o
Debt ratio
Debt to Equity ratio
Debt to Tangible net worth ratio
Debt to Funds ratio
External-Internal Equity ratio
D. Profitability ratio
Profitability analysis of a firm indicates the overall efficiently of the
management. Without profit a company cannot attract the outside capital.
Profitability analysis includes:
o
o
o
o
o
o
o
o
o
Return on total assets

Return on-equity
Return on investment
Return on fixed assets
Average profit per branch
Net profit Margin
Interest income to total income
Interest expense to total expense
Return on advances
E. Investor Ratios
o
o
o
o
o
o
o
Earnings per share

P/E ratio
Dividend per share
Dividend yield ratio
Dividend payout ratio
Break up value/Book value per share
M/B ratio
F. Bank special Ratios

o
o
o
o
Earning assets to total assets

Return on earning assets
Net margin to earning assets
Loan loss coverage ratio
Equity to total assets
Deposit time equity
Loan to deposit ratio
Page 85
CALCULATION OF RATIOS
Assets turnover ratio:
Mark Up Revenue
Total Assets
It is the efficiency of firm to utilize the total assets and generate income for
the firm.
2010 = 54821/567553=0.0965
2011 = 68,147/653,233= 0.1043
2012 = 68,356/765,899= 0.089
2013 =65,064/815,508= 0.0797
2014 =77,269/934,631= 0.082
Graphical representation of ratio:
Page 86
assets turn over ratio

0.12
0.1
0.08
assets turn over ratio
0.06
0.04
0.02
0
2010
2011
2012
2013
2014
COMMENTS:
This shows revenue generated per rupee investment in total assets. This
ratio is decreased during 2014, because total assets increased in 2014. Bank
has relatively low ATR, because they are selective in advancing loan.
Interest coverage ratio:

Earnings before tax
Interest expense
This ratio shows that number of time a company can cover or meet its
financial charges or obligation.
2010 =42143/17988= 2.3428
2011 =52,639/17,502 =3.007
2012 = 50,010/17,478 =2.861
2013 =49,039/19,586 =2.50
2014 =56,947/21,667 =2.628
Page 87
Interest coverage ratio

3.5
3
2.5
Interest coverage ratio
2
1.5
1
0.5
0
2010
2011
2012
2013
2014
COMMENTS:
The interest coverage ratio has shown a decreasing trend from the past
years. Which shows income in 2014 covers the 2.628 times the interest
expenses which constitute the main expense of the business.
Debt to equity ratio:

Total Debt
Total Equity
2010 = 488349/69282 = 7.04
2011 = 564,431/78,915 = 7.15
2012 = 664,148/101,751 = 6.527
2013 = 705,277/97,272 = 7.25
Page 88
2014 = 804,527/106,908 = 7.525
Debt to equity ratio

7.6
7.4
7.2
7
Debt to equity ratio
6.8
6.6
6.4
6.2
6
2010
2011
2012
2013
2014
COMMENTS:
The Ratio shows extend to which the firm is financed by debt. MCBs upward
trend of Debt to Equity ratio shows that the bank is not relying in debt
financing. The ratio of 2014 as compared to 2013 has increased.
Debt to total assets:

Total debt
Total assets
2010=488349/567553 =0.8604
2011 =564,431/653,233 = 0.864
2012 =664,148/765,899 = 0.867
2013 =705,277/815,508 =0.864
Page 89
2014 = 804,527/934,631 = 0.8607
Debt to total assets

0.87
0.87
0.86
Debt to total assets
0.86
0.86
0.86
0.86
2010
2011
2012
2013
2014
COMMENTS:
We should be aware of the total liabilities and total assets of the firm. Debt to
total asset ratio shows this relationship. In 2014 the ratio is decreased
because of decrease in debt.
Gross profit margin ratio:
Gross profit
100
Net revenue
2010 =36833/54821 x100=67.18%
2011 = 44526/68147 x 100 =65.3%
2012 = 40856/68356 x 100 =59.7%
Page 90
2013 = 37868/65064 x100 =58.2%

2014 = 43512/77269 x 100 =56.312%
Gross profit margin

68.00%
66.00%
64.00%
62.00%
Gross profit margin
60.00%
58.00%
56.00%
54.00%
52.00%
50.00%
2010
2011
2012
2013
2014
COMMENTS:
This ratio tells that the profit of the firm relatively to sales, after we deduct
the cost of producing the goods. The graph shows the decreasing trend in
the ratio. This means that gross profit is decreasing but this does not explain
the total profits for the year.
Net margin ratio:

Net margin after tax
x 100
Earning assets
Page 91
2010= 16874/54821 x 100=30.78%

2011 = 19425/68147 x 100 = 28.5%
2012 =20941/68356 x100 = 30.6%
2013 =21495/65064 x100 = 33.06%
2014 = 24325/77269 x 100 =35.4%
Net profit margin

40.00%
35.00%
30.00%
25.00%
Net profit margin
20.00%
15.00%
10.00%
5.00%
0.00%
2010
2011
2012
2013
2014
COMMENTS:
Net
profit
margin
of
MCB
has
improved,
during
the
current
year
tremendously. This signal towards, higher efficiency and lower administrative

cost of the bank. It is measure of the firm profitability of sale after taking
account of all expense and income taxes.
Page 92
Return on investment ratio:
Net profit after tax x 100

Total Asset
2010= 16874/567553 x 100=2.97%
2011 = 19425/653233 x 100 = 2.973%
2012 = 20941/765899 x 100 = 2.73%
2013 = 21495/815508 x 100 = 2.83%
2014 = 24325/934631 x 100 =2.99%
Return on investment ratio

3.00%
2.95%
2.90%
2.85%
Return on investment ratio
2.80%
2.75%
2.70%
2.65%
2.60%
2010
2011
2012
2013
2014
Page 93
COMMENTS:
The return on investment ratio shows the increasing trend during 2014. This
ratio measures the profitability per rupee of investment in assets. This
means that MCB is earning profits every new year. And in 2014 it has shown
a dramatic change in profits.
Return on equity ratio:

Net profit
x100
Total equity
2010= 16874/69181 x 100=24.39%
2011 =19425/78915 x 100 = 24.615%
2012 = 20941/101751 x 100 = 20.58%
2013 = 21495/97272 x 100 = 22.09%
2014 =24325/106908 x 100 = 22.75%
Page 94
Return on equity
25.00%
24.00%
23.00%
Return on equity
22.00%
21.00%
20.00%
19.00%
18.00%
2010
2011
2012
2013
2014
COMMENTS:
Return on equity is also showing an increasing trend from last year. This ratio
shows that residual profit as a proportion of the bank value of common
shareholder equity. The ROE of MCB has shown a mix trend. In the 2012 it
decreased as compare to year 2011 but it increase in year 2013 and 2014.
The increase in ROE is due to improvement in Net Profit Margin.
Advance to deposit ratio:

Total advance
x 100
Total deposit
2010= 254552/431372 x100= 59%

2011 = 225801/491189 x 100 = 45.97%
2012 = 239583/545061 x 100 = 43.95%
2013 = 248243/632330 x 100 =39.25%
2014 = 303559/688330 x 100 =44.10%
Page 95
Advance to deposit ratio

60%
50%
40%
Advance to deposit ratio
30%
20%
10%
0%
2010
2011
2012
2013
2014
COMMENTS:
This ratio shows the company advances employed per unit of deposit. This
ratio of MCB over the resent 3 years has shown a mix trend, but deposit has
increasing tremendously. This has shown a concentration on investment as
the rate of interest declining on lending.
Investment to deposit ratio:

Total investment
x 100
Total deposit
2010= 213061/431372 x 100= 49.39%
2011 = 316652/491189 x 100 = 64.46%
2012 = 402069/545061 x 100 = 73.76%
Page 96
2013 = 449006/632330 x 100 = 71.00%

2014 = 511137/688330 x 100 = 74.25%
Investment to deposit
80.00%
70.00%
60.00%
50.00%
Investment to deposit
40.00%
30.00%
20.00%
10.00%
0.00%
2010
2011
2012
2013
2014
COMMENTS:
This ratio shows the bank investment employed per unit of deposits. The
year data showed that MCB has toward higher risk and consequently higher
yield investment, rather than under less risky loaning activities.
Earning assets to total assets:

Average earning assets
Average total assets
699709
792317
Page 97
= 0.0879
Explanation:
A ratio is a quantitative relation between two magnitudes of the same kind.
In ratio analysis, the financial ratios of the firm are compared to that of its
competitors. This comparison allows the firm to detect major operating
differences, which if corrected, will increase its efficiency. Another very
popular method of ratio analysis is to compare the firms financial ratios to
industry average or similar form in industry or to our own past performance.
But a single ratio does not generally provide sufficient information to judge
the overall performance of the firm. Only when a group of ratios is used, a
reasonable judgment concerning the firms overall financial state can be
made.
An analyst, when comparing financial statement, should ensure that
predetermined uniform standards are used for this purpose.
It must be ensured that the data used in calculating financial ratios have
been developed in the same manner and are sound and reliable.
There is no doubt that financial ratios are a useful guide for managerial
decision-making but these are not exact and definite. Ratios only suggest the
questions that need to be answered and provide no answers.
Conclusion about ratio analysis:

After doing the common size, growth and ratio analysis of MCB, bank limited,
we conclude that the financial health of MCB is continually improving. The
effective control of cost of funds and operating and administrative expenses
has resulted in continuously growing trend in profit margin. Both the slightly
increasing in Total Assets turnover trend and highly growing profit margin
Page 98
trend has resulted in continuously improving ROA. The broadening of equity

base and high retention ratio has resulted in growing trend in owner equity.
The bank average collection period has dropped which shows the efficiency
of the bank.
Page 99
6.1 DEPARTMENTS OF MY BRANCH AND MY FIELDS OF

ACTIVITIES (0188)
I observed that bank provide services to the general public. Different banks
provide these services in different ways. In modern time commercial banks
Page 100
play a very important role and their function are manifold. These functions
are different in different departments.MCB Bank is also a commercial bank
and hence plays very important functions in every department.
The departments are as under
Clearing Department
Remittance Department
Credit Department
Accounts Department
CLEARING DEPARTMENT
Clearing means collection of cheques receive from our customers but drawn
on other banks. Receiving the instruments deposited by customers posting
the amount of instruments in credit of customers account If cheque returns
from the concerned bank, the customer account is debited. Crossing stamp is
put on the instrument and slip given to customer on receipt of the
instrument. Clearing stamp and payee account credited are put on the
instrument and the voucher. Clearing House has provided this facility.
Clearing house facilitates different banks, in one city, to get their cheques
drawn upon other banks to be cleared.
Cheques lodged in clearing constitute in clearing constitute two types of
clearing:
Outward Clearing
Inward clearing
Outward Clearing
Page 101
When cheques, TCs and other negotiable instruments drawn upon other
banks like NBP, ABN AMRO of the same city (as Lahore) are presented in
Muslim Commercial bank to deposit them in the respective payees accounts,
these instruments are lodged in outward clearing (o/w clg) of MCB bank.
Procedure of Outward Clearing
The name of the branch appears on its face where it is drawn
It should not stale or post - dated or without date. Amount in words and
figures does not differ.
Signature of the drawer appears on the face of the instrument.
Instrument is not mutilated.
There should be no material alteration, if so, it should be properly
authenticated.
If order instrument suitably indorsed and the last endorsees account being
credited.
Endorsement is in accordance with the crossing if any.
The amount of the instrument is same as mentioned on the paying-in-slip
and counterfoil.
The title of the account on the paying-in-slip is that of payee or endorsee
(with the exception of bearer cheque).
If an instrument received other than MCB of Pakistan then special crossing
stamp is affixed across the face of the instrument. Clearing stamp is affixed
on the face of the instruments, paying-in-slip and counterfoil (The stamp is
affixed in such a manner that half appears on counterfoil and paying-in-slip).
The instrument is suitably discharged, where a bearer cheque does not
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require any discharge and also an instrument in favor a bank not need be
discharged.
Return Outward Clearing
Over writing
No stamp of clearing or if it is not clear
No stamp of crossing or if it is not clear
Inward Clearing
Inward clearing means cheques drawn on us and presented by other banks.
In inward clearing Branch acts as paying banker. After realization of inward
clearing, banks deposits are decreased as bank makes payment to other
banks from the balances held by the branch. This realization of inward
clearing is also referred to as responding to the clearing. Cheques and other
negotiable instruments (PO, DD, PS, CDR etc.) drawn on Muslim bank, sent
by other banks, constitute the inward clearing of MCB.
Procedure of Inward Clearing
Instruments with schedules are received from NIFT.
Amount of each instrument entered is in inward clearing register.
Instruments are detached and handed over to the deposits and other
respective department for checking and payment.
In case of any instrument is returned, return memo is prepared stating the
reason of the return.
Entry is made in cheques Return register.
Cheques return charges are recovered from the party as per charges
schedule.
Checking / Return of Instruments
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Over writing
No stamp of clearing or if it is not clear
REMITTANCE DEPARTMENT:
The Remittance department deals with the transfer of money from one place
to another. Funds transfer facility or remittance of funds is one of the key
functions of the banks all over the world. Remittances through banking
channels save time, costs less and eliminate the risks involved in physical
transportation of money from one place to another. Muslim Commercial Bank
of Pakistan transfers money in the following ways.
Pay Order
Demand Draft
Mail Transfer
Telegraphic Transfer
Pay Slip
Call Deposit Receipt
Letter of Credit
Travelers Cheque
Demand Draft
It is used for payment made outside the city. It is writing on the name of
head office. Accounting entry by drawing branch. When the customer
purchases a draft, the drawing branch sends the advice (a copy of DD) to the
drawee branch and the original copy of DD is given to the purchaser. On the
arrival of advice the drawee branch debits HO account and credits the DD
payable account. When the customer comes with the original DD to the
drawee branch, his account is credited by debiting the DD payable account.
Charges Commission 50/- but if amount increase or decrease then it will also
increase or decrease and FED 8/- also increase or decrease.
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Pay Order
Payment Orders are issued for the money transfer with in the city. Pay order
is made for local transfer of money. Pay order is the most convenient, simple
and secure way of transfer of money.
Mail Transfer
A Mail Transfer is a form of remittance in which the amount remitted by a
customer or a non-customer is directly credited to the account of the
beneficiary with another branch. Move your money safely and quickly using
MCB Mail Transfer service. And MCB also offer the most competitive rates in
the market. They charges Rs 50/- exchange rate and RS 75/- postage charges
on issuing mail transfer. When the money is not required immediately, the
remittances can also be made by mail transfer (MT). Here the selling office of
the bank sends instructions in writing by mail to the paying bank for the
payment of a specified amount of money. Debiting to the buyers account at
the selling office and crediting to the recipients account at the paying bank
make the payment under this transfer.
Telegraphic Transfer
Telegraphic Transfer is a form of remittance, which is advised by telegram,
telex or fax machines. The fundamental principles of such transfer are
otherwise identical with the Mail Transfer. It is the message, which is sent
from one branch to another on the order of payer to payee through wire. It is
one
of
the
quickest
means
to
transfer
fund
through
the
use
of
telex/fax/internet or cable.
ACCOUNTS DEPARTMENT:
Opening of account is the most important department of the Branch as this is
a contract between the customer and bank. All future transaction/operation
are carried out as per this contract and any deviation may jeopardize the
banks interest. The opening of a new account is the establishment of
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customer banker relationship. By opening an account at a bank, a person

becomes a customer of the bank. The customers can open following
accounts:
Current Account (CD A/C)

Profit and loss sharing Account (PLS A/C)
Basic Bank Account (BBA A/C)
Fixed Deposit (FDR/TDR)
Account Opening
When a client comes to the bank, and makes a request for opening of an A/C.
The officer says that first fill up a prescribed application form. If he/she wants
to open a PLS A/C, then he/she has to fill a form according to the account.
Requirements
ID Card of applicant
ID Card of father, mother, brother, sister, husband or
wife
Student card (if applicant is student)
Two photos for illiterate person
A/c opening form
Specimen signature card
Zakat form (for non-Muslims)
Deposit slip
Requisition form
Issuance of Cheque Book

After opening an A/C with the bank, the A/C holder once again makes a
request in the name of bank for the issuance of a cheque book. The A/C
holder mentions title of A/C, A/C number, sign it properly and mentions the
no of leaves he requires.
CREDIT DEPARTMENT:
The bank is profit seeking institution. It attracts surplus balance from the
customer at low rate of interest and makes advances at a higher rate of
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interest to the individuals and business firms. Credit extensions are the most
important activity of all the financial institutions, because it is the main
source of earnings. Advances department is one of the most sensitive and
important department of the bank. The major portion of the profit is usually
earned through this department. The job of this department is to make
proposals about the loans; the credit management division of head office
directly controls all the advances. The advances Department receive
application from intending borrowers. After receiving application the advance
department processes it further. After analyzing and detailed investigation,
they decide whether to approve the loan or not. Some loan approvals are
made by the Manager of the branch within his powers as prescribed by the
banks higher authorities, while some loan applications are submit to higher
authorities for their approval.
Some advances are of the following nature
Loan against Gold

Agriculture advance to farmers
Medium term advance for working capital
Long term advance for setting industry
Short term advance to businessman
FOREIGN EXCHANGE DEPARTMENT:

This department mainly deals with the foreign business. The main functions
of these departments are:
L/C dealing.
Foreign currency accounts dealing.
Foreign Remittance dealing.
L/C Dealing:
MCB is committed to offering its business customers the widest range of
options in the area of money transfer. If you are a commercial enterprise
then our Letter of Credit service is just what you are looking for. With
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competitive rates, security, and ease of transaction, MCB Letters of Credit

are the best way to do your business transactions.
Foreign Currency Account Dealing:
This department deals with the foreign currency accounts which mainly
include dollar account, euro account etc.
INTERNAL CONTROL DEPARTMENT:

Role of branch compliance department is to reconcile the prescribed
frequencies, investigate long pending reconciliation item, and ensure correct
treatment every half-year and clearing system service branch-in major cities.
Internal control is the integration of the activities, plans, attitudes, policies
and efforts of the people of the bank working together to provide reasonable
assurance that the organization will achieve its objectives and mission.
6.2 INFORMATION ABOUT MY BRANCH

When I have to choose an organization for internship experience, I preferred
MCB bank of my home town. It is also the leading bank of my town. All of the
leading business parties have accounts in our branch of MCB. They make
their banking transactions every day. Besides all this, I think that it is the
most preferable organization for learning all of my studies practically. And
the staff of MCB is also very corporative.
Branch details:
Branch name
MCB Ali Pur Chattha
Branch code
0188
Address
MCB Branch Ali Pur Chattha
Phone
0556-333220, 0556-333309
Tehsil
Wazirabad
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District
Gujranwala
Province
Punjab
E mail
mcb0188@mcb.com
Date of internship:
Starting date:
Ending date:
June 30, 2015

August 11, 2015
Supervisors:
When I joined MCB as an internee, I met operation manager and branch
manager. Both of them were very corporative. The operation manager Mr.
Muhammad Waqas and branch manager Mr. Shahid Naveed are very
talented leaders and they lead the organizational members very effectively
and efficiently.
Branch management:
Mr. Shahid Naveed
Branch
Manager
Mr. Muhammad Waqas
Operational
manager
Mr. Azad Hussain Shah
Credit
manager
Mr. Muhammad Bilal Bhatti
Agricultural
credit manager
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Mr. Sohail Nasir Cheema
GBO (general
banking officer)
Mr. Abdul Majid
GBO
Mr. Ali Raza
Chief Cashier
Mr. Muhammad Zahid
TSO
Mr. Muhammad Arshad
Cash Sorter
6.3 CONTROLLING OF ACCOUNTS DEPERTMENT:

When I was fully aware of all the departments of my branch, I was given the
accounts department to control. I became experienced in opening accounts
of different types of customers and parties. 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 internship in MCB, I learned and observed a lot of 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 investigation about customer:

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,
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respectability, occupation and the nature of business by the introductory

references given at the time of account opening. Negligence in this informal
preliminary investigation may result in serious consequences not only for the
banker concerned directly but also for other bankers and the general public
who may be affected indirectly.
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 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 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 and 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 respectable person.
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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 ideal about the
financial standing of his customer, it should nevertheless have the necessary
information available with him.
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.
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 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,
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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.
Minimum amount for opening and continued maintenance of various
types of accounts is as follows
Saving
Current
Term deposit
500
1000
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
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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.
SOLE PROPRIETORS ACCOUNT
In order to open an account with MCB Sole Proprietors have to submit their
business registration certificate number.
PRIVATE / JOINT ACCOUTS
For individual or private or joint accounts 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
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Information which is required to be submitted to MCB by a partnership
firm in this case is as follows:

Full Names
Address
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.
ISSUANCE OF CHEQUE BOOK AND VISA DEBIT CARD
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 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 signed 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.
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.
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Bank debits the clients account for excise duty of Rs.2.50/- per cheque and
keeps the cheque book ready for the customer, as on his advice.
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. It is
issued by operations manager.
The visa debit card is also provided to the wiling customers on request. It
makes the transactions easier and provides the 24 hour service. It is also
issued by the branch operational manager.
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7.1 RECOMMENDATIONS AND SUGGESTIONS:

From the quantum of the profit and its financial data, it can easily judged
that after privatization Muslim Commercial Bank is performing very well. Its
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deposits are growing day-by-day and so its profitability. The controlling body
is responsible for the productive performance of the bank.
Following are my observations and suggestion to improve the efficiency for
the development of the bank.
INCREASE IN PROFITS:
People can be motivated to save money by offering the deposit through
various investment schemes. The rate of profit should increase 1% or 2 % it
would be profitable step for bank.
INCREASE IN SALARIES:
MCB is making good profits but giving less pay to their employees as
compared to their competitors. So their salaries should be increased.
CHANGE THE NATURE OF WORK:
Most of the bank employees are sticking to one seat only with the result that
they become master of one particular job and lose their grip on other
banking operation. In my opinion all the employees should have regular job
experience all out-look towards banking. Their promotion policy should be
adjusted accordingly.
TRAINING
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.
INCENTIVES TO EMPLOYEES:
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
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working condition of the bank. Such system should be designed that every
employee who has some problems with his officers can communicate to the
higher management and some steps must be taken to improve that.
PERFORMANCE AND REWARD:
Smart, educated, skilled, well spoken and well versed staff personals should
be rewarded and appreciated, while on the other hand lazy, lethargic, heard,
rough-dealers and ill mannered must be warned and penalized but this all
should be on merit and considering the policy of honesty is the best policy
and not due to some personal liking, disliking prejudice and patrimonial. It is
therefore suggested certain schemes and checks may be introduced in banks
to increase efficiency through reward and punishment system.
PROMOTION AND ADVERTISING:
Bank must let potential customers know that all attractions for banking exist.
This is done by advertising on television and obtaining press coverage, in
conjunction with direct mail, window displays, leaflet in branches and in
appropriate other locations (such as hotels, shops, etc.) and including leaflets
in statement of accounts sent to existing customers in the hope that they will
tell potential customers about the services provided by our bank.
MORE FOCUS ON SALARY ACCOUNT:
Logic leads to promotional campaign through employers who are customers
of the banks and their employees are paid in cash. Such business accounts
should be encouraged to open the accounts of their employees with the
banks. It might be worth offering free banking for a specific period to new
accounts or simply publicizing the services available by means of posters at
the employers premises.
INTERNSHIP FACILITIES:
The period of internship should be divided in to the number of department of
the Muslim Commercial Bank Ltd. The internee should be given timetable
mentioning the number of days he/she has to work at different places in the
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bank. On the first 4 days in each department internee should be given a

lecture the officer of the department concerned about working of the
department.
Some other Recommendations for MCB:

Employees always need motivation. And that motivation is usually in the
form of compensation plans and salaries. I observed that, by increasing
salaries and allowances employees will give better results.
There should not be an unnecessary delay in the banking transactions,
which is not a good sign for the bank from future prosperity point of view.
Many of employees have become master of one particular job, by losing
their grip on other fields of activities. In my opinion all the employees
should have regular job experience all out-look towards banking. The
promotion policy should be adjusted.
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.
More training is needed for the employees due to advancement in
technology. Training programs should be for every type of employee,
whether they are top management or lower clerical staff.
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.
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There
should
be
proper
communication
system
between
top
management and lower level employees. More people oriented planning

is needed.
Recruitments should be strictly on merit basis and induction should be
after proper and extensive training.
New, more qualified and young staff should be hired for better functioning
with advanced technology.
Foreign branches should be opened in order to capture the international
market and to earn international repute for the bank.
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. As the inauguration of new
branch in Dubai of MCB, will help to make more progress in the
international economy.
CONCLUSION:
After the whole analysis of MCB and the time period of my internship, I
observed each and everything about the bank. It is the backbone of
economy, which not only provide the loans to the public but also facilitate
them to increase their businesses and investments. It also provides the
savings facility to its customers. In all of the private banks MCB is the leading
bank and its customers are also satisfied from it.
Banks are the organization that provides the loan to the business,
individuals, and government even though everyone that needs the money
banks provide them and charge against the services that bank provides the
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people. I learned in the bank how to work with the professionals and we will
work in professional life. Experience from the internship will give us to the
starting point so that we can do our job easily in the future.
The banking system, as a whole, remains healthy despite the economy going
through a period of economic difficulty. The banking sector absorbed the
build-up of non-performing loans in the system while maintaining profitability
and robust balance sheets. Much of the credit for this must go to the SBP for
the policies it has pursued over the last decade to ensure that banks are
adequately capitalized and adhere to prudent risk management. The
objectives
were
targeted
towards
customers,
improved
management
policies, strong policy framework, improved governance structure, strategic

investment initiatives and implementation of cost effective measure across
bank. The group structure of the bank individually worked hard in achieving
the milestones under continuous monitoring and supervision of the senior
management and Board.
Some of concluding points which I have evaluated are as follows:
MCB is providing their customers with wide range of services including
online banking, virtual banking and some of their new products in the
pipeline; include ATM network etc shows that MCB Bank is taking good
care of their customers.
MCB Bank made heavy investments, towards enhancing its capabilities
in the area of automation and technology.
MCB is well positioned to meet client needs, with improved competitive
advantage.
New marketing strategies should be developed to attract customers. A
research cell should continuously try to gather information about the
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present action of its competitors and their expected future actions. So

in this way more effective strategies can be formulated.
The performance reward linkages should be made strong as it said, a
happy employee deliver more than he receive from organization. MCB
Bank limited should become specific about its competitors, so that it
can understand who its competitor is in the first degree and who is in
the second degree. Then the first-degree competitors should be
watched closely.
More training and development programs should be launched in order
to clear the concepts of employees about new products and banking
techniques.
And from the financial records when I conduct comparative analysis
with other banks I found that it is somewhat better than others and
from the analysis of previous year I concluded that it is improving.
Profits are more than the previous year. So I can say that MCB Bank
is performing very well.
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8.1 WEEKLY ACTIVITIES
Page 124
Week 1
Date
Day
30-06-2015 Tuesday
01-07-2015
02-07-2015
03-07-2015
06-07-2015
Wednesday
Thursday
Friday
Monday
Account Opening Department

Internship Activity
Introduction with all staff members and know hoe of banking
activities
Filling of Deposit slips for cash
Filling slips for the deposits of cheque
Filling of Online Transfer Slip
Repeat the activities
2nd Week
Date
07-07-2015
08-07-2015
Account Opening Department

Day
Internship Activity
Tuesday
Account Opening form understanding
Wednesday
How to fill AOF and its perticulars + Deposit slips
09-07-2015
and online slips Filling

Understanding of Daily activities of branch and
Thursday
repeat all weeks works

10-07-2015
Friday
13-07-2015
Monday
Real time deal with the customer who came

for account opening purpose
Help the account opening officer for account
openeing and other varification
3rd Week
Clearing Department
Date
Day
Internship Activity
14-07-2015
Tuesday
Started work in clearing department

Learn basis of the clearing department
15-07-2015
Wednesday
Revision of activities
16-07-2015
Thursday
Observe and learn the process of the outward

clearing of cheques
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17-07-2015
Friday
Learn about the outstanding clearing
20-07-2015
Monday
Learn how to use the stamps in clearing process
4th Week
Clearing Department
Date
Day
Internship Activity
21-07-2015
Tuesday
Practically
22-07-2015
Wednesday
operationStamping of instruments
Inward return process
23-07-2015
Thursday
Outward return process
24-07-2015
Friday
EID HOLIDAY
27-07-2015
Monday
EID HOLIDAY
5th Week
performed
the
clearing
Remitience Department
Date
Day
Internship Activity
28-07-2015
Tuesday
EID HOLIDAY
29-07-2015
Wednesday
Instruments in the remitience department

Procedure of PO & DD
30-07-2015
Thursday
Transaction process
31-07-2015
Friday
Procedure of Remittance
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03-07-2015
Monday
Gave
Customers
guidelines
about
BANCA
ASSURANCE facility of MCB
6th Week
Date
21-05-2015
Day
Tuesday
Custmor Servic department

Internship Activity
Worked as a CSO(Customer Service Officer)
Wednesday
Attend calls, Attend customer inquires

Received the ATM application
25-05-2015
26-05-2015
Thursday
Friday
Issuance procedure of ATM card

Issuance procedure of cheque book
Repeat the activities as required by the baking
27-05-2015
Monday
officers
Repeat the activities as required by the banking
28-05-2015
Tuesday
officers
Repeat the activities as required by the baking
22-05-2015
officers
8.2 Other Learnings

I learned whole process of account opening of individuals practically. I
remained involved very much in practical activities of account opening.
I havent issued any cheque book personally, but the procedure is very
simple for issuance. I observed the process.
I filled many applications form for remittances. I prepared remittance slips
and learned to apply tests on TT and MT.
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I processed the Inward cheques for collection and clearance, and have
also prepared vouchers.
Every transaction which takes place recorded in the computer so all
transactions
in
different
departments
are
forwarded
to
account
department. I was not allowed to use software but I observed all the
functions.
Mr. Azaad Hussain Shah was credit officer who explained me the
procedure of advances. Mostly work is done through computer. I observed
how the application is processed. I think it sufficient to know the
procedure.
In cash department I observed the process of deposits, filled deposit slips,
and learned how the cash registers are maintained.
Benefits of doing Internship
During my internship I dealt with many customers and employees, this was a
great experience to learn
How to deal with customers
How to work under pressure i.e. in rush hours.
How to manage an office.
My communication skills were improved.
I observed some signs of mismanagement which I think can be
removed if branch manager take more responsibility.
I observed the practical application of many accounting concepts.
Page 128
8.3 References
MCB History from Wikipedia and related websites
Ali Raza Sahni internship report on MCB (2008) department of
commerce
http://www.mcb.com.pk
MCB bank investors briefing financial performance analysis 20112014
http://www.financiaanalysisofmcb.com.pk
Data presented by Hammad Khalid (investors briefing)
Nasir. M.S Money Banking & Finance, Kitab Markaz; Faisalabad
Meenai. S.A. Money and Banking in Pakistan, Karachi The allies Book
Corporation.
Saira Aftab internship report on MCB (2010)
Annual results of MCB (PRESENTATION) 2011-2014
Page 129

Report On MCB

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INTERNSHIP REPORT ON

MUSLIM COMMERCIAL BANK Ltd.

University of Punjab (Jehlum Campus)

University of Punjab (Jehlum Campus)

May! Allah Give them Long Life (AMEEN)

University of Punjab (Jehlum Campus)

University of Punjab (Jehlum Campus)

University of Punjab (Jehlum Campus)

University of Punjab (Jehlum Campus)

University of Punjab (Jehlum Campus)

University of Punjab (Jehlum Campus)

6.2 Information about my branch

University of Punjab (Jehlum Campus)

University of Punjab (Jehlum Campus)

University of Punjab (Jehlum Campus)

convertible on floating rate available to the bank. Letter Of Credit facility is

University of Punjab (Jehlum Campus)

University of Punjab (Jehlum Campus)

University of Punjab (Jehlum Campus)

Commercial Bank was nationalized under the Banks (Nationalization) Act,

Launching of different deposit schemes to increase saving level.

PRESENT POSITION OF MCB

University of Punjab (Jehlum Campus)

MCB Bank Today

University of Punjab (Jehlum Campus)

1.2 THE BUSINESS

Corporate clientele includes public sector

companies as well as large local and multinational concerns. MCB is also

University of Punjab (Jehlum Campus)

1.3 AWARDS & ACHIEVEMENTS

Worlds Best Mobile

Money Transfer Bank

Best Domestic Bank in

Best Domestic Bank in

Best Bank in Asia

2008 Euro money:

Best Bank in Pakistan

2008 Asia money:

Best Domestic Bank in

Best Domestic Bank in

Best Bank in Pakistan

University of Punjab (Jehlum Campus)

2005 Asia money:

Best Domestic Bank in

Best Bank in Pakistan

2004 Euro money:

Best Bank in Pakistan

2004 Asia money:

Best Domestic Bank in

Best Bank in Pakistan

2001 Euro money:

Best Bank in Pakistan

2000 Euro money:

Best Bank in Pakistan

RECENT AWARDS/ACCOLADES IN 2014

Asia money Awards

The Asian Banker (USA)

Best Bank in Pakistan

ICAP & ICMAP

PATTERN OF SHARE HOLDINGS:

University of Punjab (Jehlum Campus)

Directors, CEO and children

NIT & ICP