3.

DECLARATION

The pre-requisite of internship program is to make the students of MBA (Banking &
Finance), aware of the practical expertise and to acquaint them with the Real Banking
Management Process.

With an intention of grooming the best executives of the future, Allama Iqbal Open
University has required a comprehensive internship-training program. All of us were
placed in leading banking organizations to gain firsthand knowledge and insight into their
management and working. So, when I was given the chance of selecting an organization, I
opted for Muslim Commercial Bank

Getting a chance of working in MCB proves to be very beneficial for me. I think that I
gained comprehensive insight into the working of a Bank. But nothing could have been
possible without the co-operation and guidance of the officers of MCB

After the completion of internship program, internship report has been prepared just in
accordance with the prescribed format given by AIOU. In preparing this report, I have put
all of my best efforts and tried my level best to give maximum knowledge. Despite all of
my coherent efforts, I do believe that there will always be a room for improvement in the
efforts of learner like me.

Muhammad Idrees
MBA (Banking & Finance)
2006-2008

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4. ACKNOWLEDGEMENT

First of all, All praise and gratitude due to ALLAH ALMIGHTY who created man in His
own image and enjoyed upon him to travel on the earth and enter into a profound and
analytical study of Universe for spiritual appreciation of ALLAH’S unity and His attribute
as well as for harnessing the material manifestation of the world to the mankind’s profitable
utilization. In the first place, therefore we express our utmost thanks to ALLAH.
At the next stage I offer my gratitude to our Prophet Muhammad (P.B.U.H) for his golden
saying “Gain knowledge be in China”.

Secondly, deepest thanks to my Baba & Amma jan for their prayers, encouragement and
full support from my first day of school to till my MBA.
Thirdly, my special thank to my teacher & instructor Sir Hafiz Noor-Ul-Qammar for his
continuous support in completing the final report. His advice and support completely make
my final report was complete. He never gives up teaching and supporting me to solve the
problem while preparing this report.

Lastly to family and my friend who completely support me and help me to completed this
final report. Also to all people that directly or indirectly in helping me to completed my
final report.

Thank you all

Muhammad Idrees
MBA (Banking & Finance)
2006-2008

5. List of Contacts

3. Declaration....................................................................................................................................................i
4. Acknowledgement.......................................................................................................................................ii
5. List of Contacts...........................................................................................................................................iii

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6. Executive Summery....................................................................................................................................iv
7. Objectives of the Studying Organization:....................................................................................................v
8. Overview of the Organization......................................................................................................................1
8.1 Brief History of the Organization.......................................................................................................1
8.2 Nature of Organization........................................................................................................................2
8.3 Business Volume.................................................................................................................................3
8.4 Number of Employees by Cadre (Designation)................................................................................12
8.5 Product Lines....................................................................................................................................16
9. Organization Structure...........................................................................................................................23
9.1 Departments of MCB........................................................................................................................25
10. Structure And Function of the Accounts / Finance Department...........................................................40
10.1 Finance & Accounting Operations...............................................................................................41
10.2 Role of Financial Manager...........................................................................................................43
10.3 Use Of Electronic Data In Decision Making................................................................................48
10.4 Sources of Funds...........................................................................................................................51
10.5 Allocation of Funds.....................................................................................................................55.
11. Critical Analysis On The Therotical Conceptsrelating To Practical Experience.................................62.
11.1 Five Latest Year Balance Sheet....................................................................................................63
11.2 Five Latest Year Income Statement..............................................................................................65
11.3 Ratio Analysis...............................................................................................................................67
11.4 Horizontal Analysis of Balance Sheet..........................................................................................87
11.5 Horizontal Analysis of Income Statement....................................................................................92
11.6 Vertical Analysis of Balance Sheet..............................................................................................95
11.7 Vertical Analysis of Income Statement........................................................................................99
11.8 Organizational Analysis with Reference to the Industries........................................................101.
11.9 Future Outlook............................................................................................................................102
12. Weaknesses Of The Organization.......................................................................................................103
13. Conclusion...........................................................................................................................................105
14. Recommendations...............................................................................................................................107
15. References...........................................................................................................................................110
16. Annexes...............................................................................................................................................111

6. Executive Summery
MCB Bank Limited is a banking company incorporated in Pakistan and is engaged in
commercial banking related services.

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In this 8 weeks internship program I have worked in Corporate Center of this high class
bank of Pakistan where I have learned about banking from experienced managers running
these sections.

This report contains the information and learning about MCB that I learnt during the 8
weeks internship period in MCB. This report deals with History & Nature (Business) of the
MCB, its Products and Services, information about main offices and also the review of
various departments of the Bank. This report also contains Finance & Accounting
operations of the MCB, role of Financial Manager, Use of Electronic Data in core decision
making and the Sources, Generation and Allocation of funds used in the banking operations
of the MCB.

The Bank’s ordinary shares are listed on all the stock exchanges in Pakistan whereas its

Global Depository Receipt (GDRs) representing two ordinary shares (2008:two ordinary

shares) are trading on the international order Book (IQB) system of the London Stock

Exchange. The Bank’s Registered Office and Principal Office are situated at MCB

Building ,Jinnah Avenue, Islamabad and MCB-15 Main Gulberg,Lahore,respectively .

The Bank operates 1081 branches including 11 Islamic banking branches (2008: 1040

branches including 11 Islamic banking branches) outside the country (Including the

Karachi Export Processing Zone branch).

7- OBJECTIVES
This internship offers me an incredible opportunity to gain real-world experience in the
high-stakes finance industry. Most importantly this internship allows me to distinguish
myself from my classmates, as I gain a competitive advantage by connecting my
coursework with industry experience.

Following are important objectives of studying the organization:

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• Categorize the different products and services offered by the financial institution
and note how to most efficiently match those products and services with the needs
of customers.

• Analyze the company’s financial condition through the financial statements

(compute financial ratios and compare to the industry averages).

• To describe the impact of financial decisions on the health and functioning of the
overall organization.

• To learn the various steps and procedures of credit risk management &
administration.

• Finding out the weaknesses, short comings, strengths and beauties of the credit
administration department.