INTERNSHIP

Report on MCB
(0450) Dasuha branch FSD

Submitted to:
MCB Circle Office Faisalabad
(HR Officer: Mr. Akhtar Ali Sb)

Submitted by:
USMAN JAMAL

Roll no. 15251

M.COM
GCUF Distance Learning

COLLEGE OF COMMERCE
GOVERNMENT COLLEGE UNIVERSITY, FAISALABAD

A REPORT ON MCB:

Dedication and Acknowledgement:

I dedicate this internship report to my parents. Because of their prayers and encouragement I
have been able to complete this report.
Praise is to Allah, the most Gracious and Merciful, who blessed me with the knowledge and
wisdom and enabled me to overcome this task. Heartiest gratitude to my teachers without their
continuous encouragement and assistance I could not have accomplished this task.
I am gratitude to the entire staff of MCB DASUHA (0450), whose kind guidance and assistance
made me able to learn too much in such a short period and finally drag me to compose this
report.

Executive summary:

MCB Bank Limited, with more than 60 years of experience as one of the leading
banks in Pakistan, was incorporated on July 9 in 1947. The bank has journeyed remarkable
tenure of more than half a century of competitively edged and well positioned heights of success
by deploying quality banking, heads on technological developments, professionally leading
management and prudent and ethical work methodologies. MCB was nationalized along with
other private banks in 1974 as part of Government of Pakistan's economic reform movement and
was later privatized to Nishat Group lead consortium in 1991.

Since privatization, MCB's growth has been phenomenal. Today, MCB in one of the largest
foreign banks in Sri Lanka, the first bank in Pakistan to launch Global Depository Receipts
(GDR) in 2006, has strategic foreign partnership with 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 1,150
branches and over 690 ATMs across Pakistan with a customer base of 4.96 million (apprx.)

MCB is reputed as one of the most sound financial institution and as one of the leading banks in
Pakistan with a deposit base of PKR. 545 bln (apprx.) and total assets of PKR 766 bln (apprx.).
The bank is versed as one of the oldest and most responsible banks in Pakistan and has played
pivotal role in representing the cou ntry on global platforms while being one of the few
institutions that are recognized and traded in the international market.

.
MCB's operations continued to be streamlined with focus on rationalization of expenses, realignment of back-end processing to increase productivity, enhancement of customer service
standards, process efficiency and controls. The Bank has taken the lead in introducing the
innovative concept of centralizing Trade Services in the country by providing centralized foreign
trade services to branches with a view to improve efficiency, expertise and reduce delivery cost.

During my internship in MCB I worked with General Manager and perform different tasks like
account opening, cash deposit, withdrawal, issuance of cheque book. Maintenance of contra
vouchers,Cash and cash equivalent book, CDRs, collection of cheque and I successfully
completed all the task/duties that were assigned to me.
During the course of internship I learned about different functions performed by, Foreign
Exchange and Customer Service Office department and bank as a whole. I also learned banks
correspondence with their customers and within branches. I learned about documentation
requirements and record keeping for different

Table of contents:
Dedication and acknowledgement
Executive summary
Vision, mission and values
Strategic objectives and awards
Corporate information

Basic functioning of branch

Account opening
Types of customers
Types of accounts
Remittances
Clearing
Rupee traveler
MCB online services

Cash department
Competitive strategies
Recommendations and suggestions
Attachments
References

VISSION AND MISSION:

Vision Statement:
To be the leading financial services provider, partnering with our customers for a more
prosperous and secure future.

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

Our Values:

These are the standards and principles which determine our behavior and how we interact with
our customers and each other:
1. Integrity
We are the trustees of public funds and serve our community with integrity. We believe in being
the best at always doing the right thing. We deliver on our responsibilities and commitments to
our customers as well as our colleagues.
2. Respect
We respect our customers values, beliefs, culture and history. We value the equality of gender
and diversity of experience and education that our employees bring with them. We create an
environment where each individual is enabled to succeed.

3. Excellence
We take personal responsibility for our role as leaders in the pursuit of excellence. We are a
performance driven, result oriented organization where merit is the only criterion for reward.
4. Customer Centricity

Our customers are at the heart of everything we do. We thrive on the challenge of understanding
their needs and aspirations, both realized and unrealized. We make every effort to exceed
customer expectations through superior services and solutions.
5. Innovation
We encourage and reward people who challenge the status quo and think beyond the boundaries
of the conventional. Our teams work together for the smooth and efficient implementation of
ideas and initiatives.

Strategic objectives:

Building teams
Building alliances
Building relationships
Building focus
Building trust

AWARDS & ACCOLADES

Year 2012
The Asset Triple A
Euromoney
NFEH
ICAP and ICMAP
World Finance
Pakistan Centre for
Philanthropy
Year 2011
CFA Association Pakistan
CFA Association Pakistan
Euromoney
ICAP / ICMAP
SAFA

Best Domestic Bank - Pakistan

Best Bank in Pakistan
CSR Business Excellence Award Best Media Coverage
2nd Best Corporate Report Award 2011- Banking Sector
Best Commercial Bank - Pakistan
PCP Corporate Philanthropy Award

Most Stable Bank of the Year

Best Bank of the Year
Best Bank in Pakistan
1st - BCR Award 2010 - Banking Sector
Joint 2nd Runner-up for BCR 2010

Year 2010
The Asian Banker
The Asian Banker
MMT
ICAP / ICMAP
SAFA

Strongest Bank in Pakistan

Leadership Achievement Award
Best Bank Led MMT Service
1st - BCR Award 2009 - Banking Sector
Certificate of Merit Award for BCR 2009

Year 2009
Asiamoney
The Asset

Best Domestic Bank in Pakistan

Best Domestic Bank in Pakistan

Year 2008
Euromoney
Euromoney
Asiamoney

Best Bank in Asia

Best Bank in Pakistan
Best Domestic Bank in Pakistan

Year 2006
Euromoney

Best Bank in Pakistan

Year 2005
Euromoney
Asia Money

Best Bank in Pakistan

Best Domestic Commercial Bank in Pakistan

Year 2004
Euromoney
Asia Money

Best Bank in Pakistan

Best Domestic Commercial Bank in Pakistan

Year 2003
Euromoney

Best Bank in Pakistan

Year 2001
Euromoney

Best Bank in Pakistan

Year 2000
Euromoney

Best Domestic Bank in Pakistan

Corporate Information
Board of Directors

Mian Mohammad Mansha

Chairman
S.M.Muneer
Vice Chairman
Tariq Rafi
Mohammad Arshad
Shahzad Saleem
Sarmad Amin
Mian Umer Mansha
Aftab Ahmad Khan
Atif Yaseen
Mohammad Aftab Manzoor
President & Chief Executive
Advisor
Raza Mansha
Audit Committee
Tariq Rafi Chairman

Aftab Ahmad Khan (Member)

Dato' Seri Ismail Shahudin (Member)

Ahmad Alman Aslam (Member)

Chief Financial Officer

Salman Zafar Siddiqi
Company Secretary

Syed Mudassar Hussain Naqv

Auditors
A.F.Ferguson & Co.
Chartered Accountants
Riaz Ahmed & Co.
Chartered Accountants
Legal Advisors
M/s. Khalid Anwer & Co.
Advocates & Legal Consultants
Registered Office
MCB Building, F-6 / G-6,
Jinnah Avenue, Islamabad.
Principal Office
MCB Building, 15-Main Gulberg
Jail Road, LahorePakistan.
Registrar's and Share Registration Office
THK Associated (Pvt.) Ltd.
Shares Department, Ground Floor,
Modern Motors House
Beaumont Road, Karachi.

Corporate
branch
(0450):

information

of

MCB

Dasuha,

 Branch Manager:
Nawaz Saleem
Tel# 0300-6648704
Branch Operation Manager:
Abdul Basit
Tel# 0300-7231947
Teller Service Officer:
Usman Jamal
Tel# 0321-7627975

Branch Location:
DASUHA, 242/R.B Sumundri Road Faisalabad.

BASIC FUNCTIONING OF BRANCH:

Account Opening:
Application Form
The customer would like to open his account is required to meet with the manager or second
officer, who will give him an APPLICATION FORM.
Which includes all the basic information, addresses, sources of income, purpose of account,
monthly debit credit, Next of Kin etc.

Basic Requirements:

One ID cards copy of account holder

One ID cards copy of next of kin
In case of illiterate person three photos of account holder
In case of Pvt business any certification of that business

Specimen Card
As I have already mentioned about Signature Specimen Card. This card contains two
signatures of an applicant, applicant A/c no, A/c type, branch code, title of A/c, it will be attached
with an application form. Banker uses this card at the time when he receives the cheque; he
compares customers signature with the signature on the cheque for avoiding fraud. Manager has
every right not to accept this contract if he is not satisfied by the details provided by the
customer.

KYC FORM:
It is a form which include preliminary informations regarding your customer or a careful
estimation of your customer s income, occupation etc.
It includes manager s assessment regarding account holder.

Account Opening Register

The manager records the necessary details into this register and allots an a/c number from this
a/c opening register. This register is maintained for each type of account and the a/c numbers are
allotted serially. After opening a saving and current account every applicants data is entered into
the computer to maintain a safe record and application form is properly filled so that it can be
available when necessary.

Types of Customers:
1: Individual

Only one person can operate this a/c. We can call it a personnel or individual a/c.
following are required to open it.
Customer signature on back of AOF.
NIC photocopy attached
Mention next of kin

2: Joint
In case of joint A/c, applicant mentions that how much person will operate the A/c. Instruction
are given for joint A/c such that the account shall be operated by

Any one of us or survivor:

In first case if one of the a/c holders died then the other can operate the a/c individually.

Any two/All of us jointly:

In second case if one of the a/c holders died then the other partner cant operate this a/c
individually without having permission from the court.

Requirements

Sign of both customers on back of AOF

Sign on joint A/C # mandate
name and ac no of intriducerIC copies of both customer
Mode of operation.

3: Partnership A/C
For partnership a/c, along with the application form signature card. Other documents are also
needed such as

Partnership deed certified copy

NIC photocopies of all partners.
Partnership mandate for account signed by all the partners
A letter duly signed by all the partners containing the operating instructions of the
account also has to be taken.

In case of addition or withdrawal of any partner a new agreement will be required.

4: Company Account
For company accounts following documents are required:
Copy of certificate of incorporation
Memorandum of Association
List of Directors
Copy of board resolution
Certificate of Commencement of Business
Copies of NIC of Directors
Companys Balance Sheet

Letter of Thanks:
It is sent to the account holder after three to four days of account opening just to check either his
given address is valid or not by the main branch or head office.

Cheque Book
Cheque book is issued to the customer when the bank accepts the A/C opening application form
and letter of thanks is received.
The charges of cheque book is deducted from the account for 25 leaves book is 150 and for 50
leaves book 300 rupees is charged.

Requisition slip:
After issuance of new cheque book the record of its issuance is maintained by requisition slip
which include the cheque numbers, date of issuance, bearer name and authorized signature.

PayIn Slip
This slip is used for depositing the additional amount. The bank will accept the Pakistanis notes.
All cheques and other instruments should be crossed before they are deposited for credit into the
account. There shall be no restriction on number of withdrawals in current account. An account

holder wishing to close his account must surrender the unused cheques to the bank. The current
account is computerized, thus it generate the statement of account for all account holders
periodically. Incidental charges of Rs.50 are beard by the account holder if its credit balance is
less than Rs.10000.

Types of Accounts :
Current Account
The current account is the most common account and the most preferred amongst business
concerns. The theoretical explanation for this would be that they can function more efficiently
but since in reality there are no restrictions on any with drawl the only reason we could think of
is that current account facilitates online banking which saves time (which in this ultra
competitive business world the most precious resource) to a considerable extent. In case of a
current account the client does not earn any interest. Current account enables the client to do
cash transactions in a more efficient manner.
Features
A sum of Rs. 10000/= in cash as initial deposit is required for opening a current account and the
same may be maintained as minimum average running credit balance. No profit is paid on credit
balances held in current accounts. The bank reserves the right to allow opening of current a/c at
its description. All deposits and withdrawal from a current a/c takes place only at the branch
where the account is being maintained. Current a/c cannot be overdrawn, except by prior agreed
agreements with the bank. The correspondence relating to current A/Cs should be addressed to
manager
of
the
branch
where
the
account
is
being
maintained.
The account holder can draw sums from his account by means of cheque supplied to him by the
bank for that particular account. Account holder should take well care of the cheque books issued
to them.

Saving Account:
Individuals who wish to earn profit/interest on their investment normally maintain the profit and
loss sharing account but in order to earn interest the client is required to keep his/her deposits
with the bank for some time. In theory there are some restrictions on withdrawal of money from
a Profit and Loss Sharing account but in general banking practice there is no restriction on any
with drawl from a Profit and Loss Sharing account. The interest/profit is paid half yearly.

Profit and Loss Sharing Account

PLS saving account having a running minimum credit balance of RS.10000. The bank would be
within its rights to make investment of credit balances in the PLS saving accounts in any manner
at its sole discretion and to make use of the fund to the best of its judgment in the banking
business under the PLS system.

Profit/Loss:
The profit/loss will be credited/debited on the basis of its net working results at the end of each
half-year. Calculation of products on PLS saving A/c will be made for each calendar month on
the lowest credit balance of an account between the close of business on the 6 th day and the last
day of the month.

Term Deposits
Term deposits are fixation of certain amount of money for a specific span of time. The
instrument term deposit is like a slip containing issuing bank name, a/c # to operate on computer,
deal #, customer name, reference #, date of issue, amount, rate maturity date etc.

Closing of Account:

In case customer desire to close

In case of death of account holder

In case of bankruptcy
In case of nil balance that is not up to the minimum requirement

Remittances:
The need of remittance is commonly felt in commercial life particularly and in every day life
general. A major function of any banking system is the transfer of funds from one client or one
place to another. By providing this service to the customer the bank earns a lot of income in the
form of service charges. This department deals with local currency remittance i.e. remittance
from one city to another without actually carrying the currency. MCB uses following instrument
for transferring of money:

Demand drafts (DD)

Pay order (PO)
Telegraphic transfer (TT)
Mail transfer(MT)

Demand rafts (DD)

DD is a written order given by the branch of the bank on behalf of the customer to other branch
of the same bank to pay the certain amount to the customer. DD are issued for the particular
place other than place of issuance. A drafts is a Cheque drawn by a bank on its own branch or
any other branch of another bank at a different place requesting it to pay on demand a specified
amount of money which is already received to the person named on it. DD is of following two
types:
1:DD payable
2:DD payable suspense account.
In the first type as advice reaches for payment the immediately pay to the customer while in later
as DD presented by the customer, it is paid and the suspense account is debited.
Documentation
A printed application form is provided for filling in completely and signing by the applicant.
After depositing an amount of draft and commission of the bank, duly completed and signed by
two authorized officers, then it is handed over the applicant and credit order is dispatched to
drawer branch.

Following are the pre-requisites for the processing of DD

1: bank serial no
2: no of DD
3: central no
4: test key

Pay Order
For this kind of remittance the payer must have the account in the issuing bank. Pay order are
more liquid as compared to cheques because cheques may be dishonored while PO cant be. It is
written order issued by the bank drawn and payable on itself. It is used for local transfer of
money from one person to another person. It is also used by the public for depositing money with
Government or Semi Government department.
DOCUMENTATION
The party who requires a pay order will get a printed application from the bank. He will fill it
and deposits the amount and commission. The bank charges are same as on DD.
1: bank serial no
2: no of PO

Telegraphic Transfer (TT)

In this case the authority is given from one bank to other on the behalf of the customer through
telecommunication to debit their inter office account through them and credit their parties
account mentioned in TT. It is an inter bank transaction. Telegraphic transfer is an instant transfer
of funds. Through this method applicant can transfer money from one place to another place.
There are two types of TT, Both types of TT are maintained in separate registers, test is applied
by
the
manager
of
every
amount
of
TT.
1: incoming TT 2: Outgoing TT
Applicant has to fill a form along with depositing amount to be transferred and bank
commission. MCB charges the commission at the same rate as in the case of demand drafts.

Documentation:

Issuing branch name and code

Beneficiary branch name and code
No of TT
Amount in words and figures
Test key

Mail Transfer (Mt)

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

Issuing branch name and code

Beneficiary branch name and code
Amount in words and figures
No of MT

Clearing:
All the external functions of clearing are carried by NIFT (National Institute of
Facilitation Technology) while the internal operations are performed by clearing department. It is
just like any courier service which takes the cheques of other banks and delivers the cheques of
that branch to it.Clearing is a system by which banks exchange cheques and other negotiable
instruments drawn on each other within a specified area and thereby securing the payment for its
clients through the clearing house.
Its main purpose is offsetting the cross obligation in the form of cheques. When there are many
banks in the country each will receive a number of cheques drawn on other banks, deposited

within for collection. A clearing house is an organization where these cheques are brought and
the mutual claims of each bank on the other are offset and a settlement is made by the payment
of differences. The representatives off all the banks in Pakistan attend office of the bank which is
performing these duties of clearing house, on each business day at a fixed time. They deliver
cheques that their bank may have negotiated and receive in exchange cheques drawn on their
bank negotiated by other bank. The responsibility of smooth cooperation of the clearing function
lies with the SBP.
The operation of clearing refers to the collection of cheques drawn on other banks. These
cheques may be drawn on UBL, HBL, NBP, or any other bank of Pakistan. The respective officer
collects all cheques and enters them in clearing Register. Then he affix a stamps on these cheques
and sorts out cheques of different banks and prepares schedule for them. These cheques are sent
to clearing house. Exchange of cheques takes place through NIFT.
Further they settle their account. State Bank of Pakistan representative will work out the balances
and will settle their account from their balances with State Bank of Pakistan.

MCB Online Services:

MCB ATM Services

With a solid foundation of over 60 years in Pakistan, with more than 1188 branches, over 690
MCB ATMs in 47 cities nationwide and a network of over 12 banks on the MNET ATM switch,
MCB is positioned at the forefront of the banking industry in Pakistan. This success has been
possible because of a never-ending drive to achieve higher levels of excellence, constantly
striving to raise the level of performance.

MCB Mobile Banking

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

MCB Call Center

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

MCB Smart Card

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

RUPEE TRAVELER'S CHEQUES :

MCB Bank has been at the forefront of providing its customers with new and innovative
products and financial instruments that are safe, secure and profitable. MCB Rupee Traveler's
Cheques were first introduced in 1993 as safe cash for traveling and travel related purposes. The
product has been extremely popular and is preferred over cash by customers while travelling and
in all walks of life.

Properties:

MCB Rupee Traveler's Cheques- The safest way to Carry Cash

Rupee Travelers Cheques Features
Easily available: Buy them from any of the designated branches in Pakistan.
As good as cash: MCB RTCs are safe to carry and can be used without any

inconvenience specially by Travellers.

Easily encashed: At any designated MCB branch.
Easily refunded: in case of loss or theft, you can get the full amount back.
Exclusive security features: Due to special printing and safety precautions, Cheques

cannot be duplicated.
Denominations: Available in denominations of Rs 10,000.
Validity: 10 years from the date of purchase.
Customer Service Facility: (021) 111-000-123.
More than 900 MCB Authorized branches are selling and purchasing Cheques all over
Pakistan.

Cash Department:

In cash department both deposits and withdrawals go side by side. This department works under
the accounts department and deals with cash deposits and payments. This department maintains
the following sheets, books, ledger of account:
Cash received voucher sheet.
Cash paid voucher sheet
Paying-in-slip
Cheque Book
Cash balance book
Cash Paid Sheet
The only instrument that can be used to withdraw an amount from an account is the Cheque
book. No payments are made by another instrument. Cheques can be of two types, they may be
presented at the counter and encashed and the others are clearing or transfer cheques.
Cashier manually inspect the Cheque for following:
Signature & date
Cross cutting
Drawees a/c title
Amounts in words & figures
Two signatures at the back

The cheques should not be stated as post dated. If in the Cheque there may discrepancy regarding
any of the aspects described above the cheque is returned to the customer for rectification. On
other hand if the cheque is valid in all respects, the cashier enters the necessary inputs in the
computer and post the entry so that account balance is updated.
When cashier posts these entries, computer automatically display the balance before posting the
transaction amount, balance after posting. The cashier easily and quickly see whether the amount
being withdrawn so exceed the balance or within the balance. If the amount does exceed the
balance then it is upon the discretion of the manager to allow an overdraft and not depending
upon the customers reputation. If he does not allow an over draft, the procedure is repeated
again as described for the mismatch of the signature Cheque is return.
The detail of notes (currency) is written on the back side of the Cheque. The cashier at the same
time maintains the Cash Voucher Received Record Sheet. Then once again inspect the
signature of the customer cancellation mark of checking officer and stamp of POSTED is
placed on cheque before hand over the cash to customer.
Cash Received
For depositing the cash into customers accounts, there is need to fill in the paying-in-slip giving
the related details of the transaction. This paying-in-slip contains the date, a/c/no, a/c title,
particulars, amount being deposited and details of the cash. There are two portion of the payingin-slip. The depositor signs the one part of the paying-in-slip one is retained by the bank to show
an acceptance of the entries made in the slip.
The different colored paying-in-slip are used for all the types of deposits. Only the slips related
to a particular type of a/c is acceptable by the bank. For example current paying-in-slip for
current a/c and saving paying-in-slips for saving a/c etc. The paying-in-slip serves as a voucher
to update to computerized transaction ledger. The transaction ledger is only updated by payingin-slip and Cheque. The cashier responsible to receive both the paying-in-slip and cash from the
depositor. The cashier check the necessary details provided I the paying-in-slip and accounts the
cash and tallies with the amount declared in the slip. If the amount does not tally with the cash
given, the deposit is not entertained until the customer remove the discrepancy.
On the other hand if the two amounts tally, the cashier fills in the Cash voucher received
Record Sheet and assigns a voucher no. to both the transaction being made in the sheet and the
slip. This voucher no. starts with one and continue by serial increments of one for each day till
the closing of the sheet, the cashier fills the voucher no, an account, cash day till the closing of
the sheet. The cashier fills in the voucher no, an account of, cash entry in the related type of a/c
and he post his initials on both part of the voucher. Then the cashier send both to the accountant

who verifies all the entries in the two documents, if the entries in the two documents, if the
entries in the two documents tally with one another, the accountant authenticates the two by
singing on the two documents and posting stamps on the slip. One part of the slip is then
returned to the customer and other is given to the computer operator. A very important check is
that the dates mentioned into the two documents must be the same.
The cashier posts the transaction entries in computer ledger. This ledger contains the a/c no, a/c
title, voucher no, voucher date, transaction code, transaction amount. After posting these entries,
computer display before posting balance and after posting. On every transaction computer
generates an output of transaction ledger. He assigns the stamp POSTED on the voucher to
show voucher transaction entries are posted. Checking officer receive this voucher and the
compute output transaction ledge, he manually inspects the entries of ledger and voucher. If both
are tallied, he then signs the ledger and put a mark of cancellation on the voucher. After the
verifications from the checking officer, cashier receives the voucher.
Cash Book Balance
At the end of the working day cashier is responsible to maintain the cash balance book. The cash
book contain the date, opening balance, detail of cash payment and received in figures, closing
balance, denomination of government notes (Currency). It s checked by manager. The
consolidated figure of receipt and payment of cash is entered in the cash book and the closing
balance
of
cash
is
drawn
from
that
i.e.
Opening
Balance
of
Cash
+
Receipts
Payments
=
Balance
The closing balance of today will be the opening balance of tomorrow. This department is one of
the most important department of the bank. All the books maintained in this department are
checked by office

Cash and cash equivalent:

It is a register which is maintained by the cashier on daily basis. Cash book balance shows the
amount that is in the form of cash while the cash equivalent register includes:

Cash in hand
Prize bonds
coins

MCBs Competitive Strategies:

To be competitive the Bank has further reinforced its position in the Consumer Banking arena by
streamlining and re-launching the consumer financing products and introducing more
convenience based solutions. With the re-launch of auto finance and house finance products, the
Bank pushed the products with full thrust. The Bank has also launched a running finance facility
against mortgage of property.
Technology continued to play an important role in improving and expanding product offerings.
The Bank introduced more IT based products to cater to the changing lifestyles and needs of the
customers. MCB Virtual-Internet Banking was launched with wide ranging banking solutions for
the customers ranging from individual to corporate customers and it has become the most
preferred Internet banking solution in the country.
MCB also had the privilege of being the first Bank in Pakistan to launch the comprehensive bill
payment facility through its alternate delivery channels which include Internet Banking, ATMs
and MCB Call Centre, currently with six payment partners. Similarly, the Bank also took
initiatives to increase the usage of debit facility. To provide timely and updated information,
MCB has also provided a new look to its website which is user friendly and considerably easy to
browse.
The Islamic Banking initiative has been very successful in attracting new customer, both
individuals and companies. Similarly, those relationships, which were confined only to current
saccount facility, have grown into stronger business relationships. The branch network was
expanded to Lahore and Multan during the last year and recently been extended to Hyderabad
and Faisalabad. The Bank plans to further expand its Islamic Banking branch network to other
metropolitan areas and also to introduce new sharia compliant banking solutions to a wider range
of customers for satisfying their individual and business needs.

Some wide-ranging new strategic initiatives were also taken up which will be important for the
Bank in years to come. A private company has been formed in Hong Kong (fully owned

subsidiary of MCB) in partnership with Standard Chartered Bank, handling trade transactions of
select countries in the Asia-Pacific region.
It is projected to earn US$ 1 million in its first year of operations. To increase its international
presence, the Bank will be opening its representative office in Dubai and entering into major
strategic alliances with banks in the UAE/ especially for marketing our consumer banking
products to non-resident Pakistanis. Furthermore, feasibility is also being carried out for entering
other international markets.
MCB's operations continued to be streamlined with focus on rationalization of expenses, realignment of back-end processing to increase productivity, enhancement of customer service
standards, process efficiency and controls. The Bank has taken the lead in introducing the
innovative concept of centralizing Trade Services in the country by providing centralized foreign
trade services to branches with a view to improve efficiency, expertise and reduce delivery cost.
Management of Human Resources has been one of our core focus areas. MCB is committed
towards attracting, retaining and motivating outstanding people. Challenge for MCB is to
provide an environment in which employees can better realize their potential. The Bank
introduced 'reward for performance' where high potential officers were identified and rewarded
accordingly. In view of the competitive environment, the Bank is focusing on performance and
introducing a more robust performance management system. MCB is also strongly committed to
training its staff at all levels.
The Bank will also be implementing the full suite of the latest version of SYMBOLS Version 8.
MCB Bank will run SYMBOLS refinance modules to deliver personalized services to its
customers over multiple delivery channels, while SYMBOLS Enterprise Operations Center will
serve as its core banking transaction-processing engine. By implementing SYMBOLS, MCB
Bank aims to raise the level of its customer service and its time to market in new product
offerings for its three cores banking businesses in Corporate, Commercial and Consumer
Banking - retaining its market leadership as Pakistan's progressive Bank.

Recommendations and Suggestion:

From the quantum of the profit and its financial data it can
easily judged the after privatization Muslim Commercial Bank is performing well. Its deposits
are growing day-by-day and so its profitability. The controlling body is responsible for the
productive performance of the bank.Following are my 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 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 loose 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.

Incentive 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 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.

Over Employed
During my internship period I felt that at some place the Muslim Commercial Bank Limited is
over employed which is causing in expenditure. I think that the best way out for this problem is
to pen new branches.

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 Accounts

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
has to work at different places in the 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.

Learning as an internee:
(November 25 th to January 6 th)

Functions perform and learned in first week:

(November 25 th to December 01 st )

Account opening
Filling of KYC, signature specimen
Issuance of credit slip against cheque
Issuance of credit slip against cash
Cash withdrawal
Account opening of illiterate customer
Joint account openning

Functions perform and learned in 2 nd week

(December 02 nd to 08th)

Issuance of pay order

Issuance of demand draft
CDR making
Issuance of cheque book
Maintain record of issuance of cheque book with requisition slip and letter of thanks
Prepare contra vouchers against the expenses of cheque book

Functions perform and learned in 3 rd and 4 th week

(December 09 th to 22 th)

Receive application for stop of cheques and issue new cheque book by maintaining

contra vouchers of collection charges

Issuance of zakat by collecting cheques and transferring Zakat amount from payers

account to payees account by cheques

Collection of electricity bills receipt and match the total with cash
Posted salaries to different account
Maintain the record of issuing new currency to different bank customer.

Functions performs and learned in 5 th week

(December 23 th to 29 th)

Account reopening
Annual report discussion
Collection of SBP cheques of examination duty
Deposit and collect SBP cheques of Zakat and Usher committee
Make contra vouchers against different expenses of stationary
Send two cheques of askari bank for collection to main branch lahore

Function performs and learned in 6 th week:

(December 30 th to January 06 th)

Preparations of CC and send them for collection to main branch

Making of scroll of utility bills after deduction of bank charges and transfer

remaining to WAPDA account

Prepare contra vouchers for CC and send to Lahore main branch for collection
Maintain cash sheet for cheques, credit vouchers and cash sent to cash house
Collection of PTCL bills and transfer

References
Books:

MCB annual report 2012

MCB performance overview 2012
MCB Schedule of charges July December 2013

Personalities:

Branch Manager (MCB,0450)

General Banking Officer( MCB, 0450)
Teller service Officer (MCB ,0450)

WEB:

Mcb.pk.com