It is the requirement of the BBA(hons) course Islamia university of Bahwalpur that all students of BBA have to spent Six

to Eight Weeks in any organization to get practical exposure and to get familiarized with the ways to live in the organizational environment which is dramatically different from the educational environment. That six weeks period called Internship Period , if spent properly and sincerely, enables the students to be more confident, more knowledgeable, more responsible and, above all, more committed to its work in the practical field. I have also been assigned to do internship of six weeks period in MCB Mian Channu City main Branch. It has enabled me to understand the practical scenario and sharpen our decision making power and utilizing the resources in an effective manner, so that our resources generate maximum profit. In preparing this report, I have put all of my best efforts and tried my level best to give maximum knowledge. Despite of my all the coherent efforts, I do believe that there will always be a room for improvement in the efforts of learner like me. Yasir Ayaz

MCB has been playing a splendid role in banking industry of Pakistan. Formed since 1947 and passed through nationalization and privatization modes, now bank is in hand of Mian Manshas group which is one of powerful and strong business group. MCB is performing in very good position since 10 year and winning best domestic bank awards and especially have been rewarded a sitra-e-imtiaz Pakistan very honorable and precious award. MCB is currently dealing through number of different departments, account opening department where different type of accounts are available with different products and there are specified procedures to open, operate and close the account. Cash department is very responsibly dealing with cash withdrawals, deposit, cash online

and cash in hand. Accounts department is working to monitor the branch expenses, to keep record of them and makes balance sheet, profit & loss account to report manager. Remittance department is on the job to facilitate customer where DD, pay order and FDD are made and posted. Credit department is working to provide loans to needy entity where personal, commercial and Industrial loans are extended after evaluating the entity, their need and security through pre specified procedure. Agriculture loan is also given to farmer in different products, which are categories in Farm and Non Farm based. MCB is very much concentrating on changing world and introduced some remarkable services for the convenience of customer in which Virtual Banking, Mobile Banking and SMS Banking are included where customer can enjoy number of features like fund transfer, bill payment, mobile recharge and statement of account also can post standing order to payment and many more without going to bank, just by using internet and your handheld device. MCB also providing debit and credit card to their customer which is acceptable in large network of MCB and n other bank ATMs and at different spots. Calculated ratios show the some financial aspect of MCB and pinpoints that should be considered. MCB Mian Channu branchs SWOT analysis shows statements under the heads of strengths, weaknesses, Opportunities and Threats that should be consider for the betterment of branch. As a student intern I performed duties under supervision of bank officers in which includes account opening, cheque book issuance, slips filling etc. during this period I have also learned many moral and working skills. In last I have reported some suggestions to improve the branch performance for fruitful results.

DEFINITION OF BANK
The term 'bank' is being used for a long time, yet it has no precise definition. The basic reason is that the commercial banks perform not just one but many types of functions. The term bank has been defined differently by different authors. Some are as follows:

According to Crowther, "Bank is a dealer in debtshis own and of other people." According to G.W. Gilbert, "A banker is a dealer in capital or more properly a dealer in money. He is an intermediate party between the borrower and the lender. He borrows from one party and lends to another." According To Bamkinh Companies Ordinance U/s3 (B) of Banking Companies Ordinance 1962 "Banker means person transacting the business of accepting for the purpose of lending or investment, of deposits of money from the public, repayable on demand or otherwise and withdraw able by cheque, draft, order or otherwise and includes any Post Office Savings Bank."

Evolution of Banking
It has not so far been decided as to how the word Bank originated. The explanation of this origin is attributed to the fact that the Jews in Lombardy transacted the business of money exchange on branches in the market place and when the business failed, the people destroyed the Bank. Incidentally, the word bankrupt is said to have been evolved from this practice. The opponents of this opinion argue that it was so, then how is that the Italian moneychangers were never called Banchierei in the Middle Ages? Other authorities hold the opinion that the word Bank is derived from the German word back which means joined stock fund. Then Back was Italianize into Bank.

Early Growth
Banking in fact is as primitive as human society for ever since man came to realize the importance of money as a medium of exchange. Perhaps it was the Babylonians who developed banking system as early as 2000 B.C. It is evident that the Temples of Babylon were used as Banks because of the prevalent respect and confidence in the clergy.

King Hammurabi (1728 1686 B.C), the founder of the Babylonian empire, drew up accede where in he laid down standard rules of procedure for banking operations by temples and great landlords. He got his code inscribed on the block of diorite about 8 feet tall, containing about 150 paragraphs which deals with nearly all aspects of loans, interest, pledges, guarantees, natural accidents, loss, theft etc. Later on Sumerians, Babylonians, Hittites and Assyrians standardized the values of the goods in silver, copper and bronze. It is not certain as to who invented money but history recess that king of Lydia castled electrum ingots of identical shapes and of uniform weights with a triple emblem engraved on it as an official guarantee of value in 687 B.C. In 1401 a German public bank was framed comprising the operations of discounting and transferring of money. By the 16th century, some more public banks were formed in Venice, Milan, Amsterdam, Hamburg and Nuremburg. In order to streamline Banking organizations and techniques, conferences were held in Nuremburg from 1548 to 1551 and it was agreed that the commercial interest of the time needed a bank with facilities of growth and transfer but it should not be a bank run by private individuals. Ultimately in 1587, a State Bank under the name of banco DI rialto was formed in Genoa. Later the bank of Amsterdam was also formed in 1609. This Bank had a guarantee by the State and rendered valuable services to the Netherlands traders up to the year 1795. Similarly in 1690, the Bank of Hamburg came into existence in Hamburg with the business of accepting deposits of fine silver or of foreign money and to run accounts on these deposits. This Bank rendered great service to the merchants as well as countries it dealt with until 1873, when it was merged with the Reich bank. By the year 1700, the bank of England was not only issuing notes but also conducting accounts for customers. Its directors were conducting the business like that of limited companies. The bank had the monopoly of issuing banking notes. Up to 1813 or there about in England, the main profit of bank was derived from the circulation of notes.

Development of Modern Banking

In 1918 came into being eleven clearing banks of today. The effect of this historical development of banking in England has been fairly wide. First, emergence of a small number of large banks with wide network of

branches. Second, increase in the popularity of bank accounts and a large-scale use of cheques. In 1946, the labor government nationalized the bank of England and transferred the existing stock to the nominee of British treasury. In 1955, the British Banks made a departure from traditional banking by undertaking hire-purchase finance for companies buying industrial plants and machinery and took interest on hire-purchase finance.

Banking In Pakistan
At the time of independence, there were 631 offices of scheduled banks in Pakistan, of which 487 were located in West Pakistan alone. As a new country without resources it was very difficult for Pakistan to run its own banking system immediately. Therefore, the expert committee recommended that the Reserve Bank of India should continue to function in Pakistan until 30th September 1948, so that problems of time and demand liability, coinage currencies, exchange etc. be settled between India and Pakistan. The non-Muslims started transferring their funds and accounts to India. By the end of June 1948 the number of officers of scheduled banks in Pakistan declined from 631 to 225. There were 19 foreign banks with the status of small branch offices that were engaged solely in export of crop from Pakistan, while there were only two Pakistani institutions, Habib Bank of Pakistan and the Australasia Bank. The customers of the bank are not satisfied with the uncertain condition of banking. Similarly the Reserve Bank of India was not in the favor of Govt. of Pakistan. The Govt. of Pakistan decided to establish a full-fledge central bank. Consequently the Governor-general of Pakistan Quaid-I-Azam inaugurated the State Bank of Pakistan on July 1, 1948. Thus a landmark was made in the history of banking when the state bank of Pakistan assumed full control of banking and currency in Pakistan. The banking structure in Pakistan comprises of the following types.
1. 2. 3. 4. 5.

State Bank of Pakistan. Commercial Bank of Pakistan. Saving banks. Co-operative banks Specialized credit institutions.

Up to December 31, 1973, there were 14 Pakistan commercial banks that functioned all over the country and in some foreign countries through a network of branches. All these commercial banks were nationalized in January 1, 1974, and were recognized and merged into the following five banks:

National Bank of Pakistan 2. Muslim commercial bank limited 3. Habib Bank Limited 4. United Bank Limited
1. 5. Allied Bank of Pakistan

The state bank of Pakistan is the Central bank of the country and was established on July 1, 1948.The separation of East Pakistan and its repercussion in the form of economic depression has caused a lot of difficulties to the banking system in Pakistan. The network of bank branches now covers a very large segment of national economy. The numbers of branches have increased appreciably and there is now on branch of bank for every 3000 heads of population approximately. There is done reasonable growth in deposits from the establishment of Pakistan. Besides this growth, specialized credit and financial institutions have also developed over the years. The Government of Pakistan in the late 90s introducing the need for the privatization of state owned banks and companies. The private sector has accepted the challenge and most of the banks are privatized today. The State Bank of Pakistan issues the shares of these periodically. Bank employees and other common peoples can also purchase these shares and earn profit.

MCB Bank Limited formerly known as Muslim Commercial 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. The bank was nationalized in 1974 during the government of Zulfikar Ali Bhutto subsequently in June 1974 Premier Bank Limited merged with MCB. This was the first bank to be privatized in 1991 and a consortium of Pakistani corporate groups led by Nishat Group purchased the bank. As of June 2008, the Nishat Group owns a majority stake in the bank. Founded in 1948, Nishat Group is one of the leading and most diversified business groups in Pakistan. The group has strong presence in the most important business sectors of the country such as banking, textile, cement and insurance. Mian Mohammad Mansha is the Chairman of the group (and also MCB) and has played instrumental role in its success. In recognition of Mr. Manshas contribution, the Government of Pakistan has conferred him with "Sitara-e-Imtiaz", one of the most prestigious civil awards of the country.

MCB Current Position:

Singapore18th April, 2010 At an impressive ceremony held in Singapore, President and CEO MCB Bank Atif Bajwa was awarded The Qatar Financial Centre (QFC) Asian Banker Leadership

Achievement Award 2010 for Pakistan. MCB Bank was also the recipient of The Strongest Bank award for being Pakistans bestperforming financial institution. The Advisory Council of the Asian Banker Leadership Achievement Awards Programme recognized the role played by MCB in developing systems and in driving innovation through the launch of new products and services such as the ability for its customers to make payments using mobile phones. MCB is one of the leading banks in Pakistan with a deposit base of Rs 368 Billion and total assets of over Rs 500 Billion. The Bank has a customer base of approximately 4 million, a nationwide distribution network of over 1,100 branches and over 450 ATMs. Based on its robust financial performance, healthy capitalization, high quality assets, and the countrys lowest cost deposit franchise, MCB is ranked as one of the best banks in the region. The bank has also successfully attracted partnerships, in the form of an equity tie-up with Maybank, Malaysias largest financial institution. Moreover it is Pakistans 1st organization to be listed on the London Stock Exchange.

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

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 with confidence in us

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.

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.

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.

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.

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

Chairman
Mian Mohammad Mansha

Vice Chairman
Mr. S. M. Muneer

Audit Committee
Mr. Tariq Rafi

Human Resources Committee

Mian Mohammad Mansha

Risk Management & Portfolio Review Committee

Mr. Shahzad Saleem Director

Business Strategy & Development Committee

MianMohammadMansha Director

Chief Financial Officer

Mr.Salman Zafar Siddiqi Director

External Auditors
KPMG Taseer Hadi & Co.(Chartered Accountants)

Description Shareholding Directors, CEO and children Associated Companies NIT & ICP Banks, DFI & NBFI 52,190,877 Percentage 7.5518

57,009,034 5,835 2,239,307

8.2490 0.0008 0.3240

Insurance Companies Modarabas & Mutual Funds Public Sector Cos. & Corp. General Public (Local) General Public (Foreign) Others Foreign Companies Company Total

46,052,057 7,208,703

6.6635 1.0431

131,749,731

19.0636

101,843,819 2,400,126 44,237,663 246,167,375 691,104,527

14.7364 0.3473 6.4010 35.6194 100.00

Awards & Accolades:

President and CEO MCB Bank Atif Bajwa was awarded The Qatar Financial Centre (QFC) Asian Banker Leadership Achievement Award 2010 for Pakistan. MCB Bank was also the recipient of The Strongest Bank award for being Pakistans best-performing financial institution.

Euromoney Awards:

Best Bank in Asia Award 2008 Best Bank in Pakistan Award 2006 Best Bank in Pakistan Award 2005 Best Bank in Pakistan Award 2004 Best Bank in Pakistan Award 2003 Best Bank in Pakistan Award 2001 Best Domestic Bank Award 2000

Asia Money Awards:

The Best Domestic Commercial Bank Award 2004 The Best Domestic Commercial Bank Award 2005

(Contd)

(Contd)

Branch Manager

Doger Aamir Hussain

Operational Manager Accountant Credit Manager Forex Manager Chief Cashier

Muhammad Imran Fozan ul Qamer Imran Arshad Ayesha Zafar Khursheed Ahmed

Cashier Billing Cashier

Muhammad Usman Miss Farwa Asif

To open an account the customer have to meet the general banking manager with an introducer (the person who is going go introduce that person in the bank) and get an application form used for account opening. Along with the form a card for specimen signature is also supplied to customer. Manager has every right not to accept this contract if he is not satisfied by the details provided by the customer. In case the contract is acceptable to both, now it is ready to open the account formally. Procedure The procedure begins with the punching of account opening form to the customer file i.e. customers master file. 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 nos 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. Checking officer is responsible to Tele the manual application form with the computerized a/c opening file. For fixed deposit only that application form is needed this is prepared manually, because most of the procedure of fixed deposit is

done manually. The signature specimen card contains three 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 amount. Account Types Though in theory there many types of accounts but commonly account operators can be classified in one of the following categories, each have different documentation requirements:

Single Joint Partnership Private Limited Public Limited

Single Only one person can operate this a/c. An individual who can fulfill the requirement of bank can open this a/c. We can call it a personnel or individual a/c. The requirements for this type are National Identity Card Photocopy, Minimum Deposited Balance, Account Opening Form, Letter of Kinship etc. In case of illiterate person or shaky sing, two recent passport size photographs of the new account holder besides taking his right and left thumb impression on the specimen signature card. 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 anyone or more. The requirements for this type are National Identity Card Photocopy, Minimum Deposited Balance, Account Opening Form, Letter Kinship, Additional Signature Form (For Joint Account), Declaration regarding the operator of account. Partnership For partnership a/c, along with the application form other requirements needs satisfied.

The requirements for this type are National Identity Card Photocopy, Minimum Deposited Balance, Account Opening Form, Registration certificate, agreement among partners and Commencement of business and private registration, resolution of board of directors, commencement of business, memorandum and articles of association and balance sheet etc. Private Limited Such type of account is opened in the name of the businesses having private limited concern and mostly medium business enterprises open such kind of accounts. All the board of directors have to submit the declaration regarding the account operator on the company pad and with the rubber stamp with the signature of the all the members of the board of directors. In case of any change in director bank must be informed regarding that. In case funds are borrowed by the company all the directors approval is necessary rather not only the authorized partner who can be the operator of the account. Public Limited Public Limited A/C type of account is opened in the name of the businesses having Public limited concern and mostly medium business enterprises open such kind of accounts. All the board of directors have to submit the declaration regarding the account operator on the company pad and with the rubber stamp with the signature of the all the members of the board of directors. In case of any change in director bank must be informed regarding that. In case funds are borrowed by the company all the directors approval is necessary rather not only the authorized partner who can be the operator of the account. Cheque book issuance procedure: First cheque book is given on letter of thanks issued by bank. Letter of thanks is issued against account new opened account. Bank print two letter of thank one is attached to account opening form and one is dispatched to new accountholder. After receiving dispatched letter of thanks customer comes to bank to receive new cheque book. Following procedure is required to obtain cheque book:

o o o o o

First cheque book requisition slip is filled that slip contains information of, Account title & number No of leafed cheque book required (25, 50, 100) each leaf is Rs.6. Information of other person if accountholder allowed any person to take cheque book and signature Two signature of accountholder

Note: Each cheque book contains a white color page which is necessary to obtain next cheque book to accountholder. Next cheque book is obtained by following the procedure,
o o o

o o

Cheque book requisition slip is filled White page from previous cheque book is attached If customer lost their white page of previous cheque book then application is required from customer of lost of cheque book slip and attached with requisition slip. Posted by bank officer in computer Cheque book is given to accountholder and signature of receiver is taken on receiving register. If cheque book is being received by any other person permitted by accountholder CNIC copy is attached of that person.

Closing of an account: There are some conditions under any of them account can be closed or blocked.

On court orders In case of death of accountholder (kinship rights cannot be used till death certificate is submitted to bank). If customer signed any term and conditions and does not meet them. In case of customer own will

Above mentioned in first three conditions no filing is required from customer, but in case of customer own will there are some requirement from customer procedure and documents are as follows:
o

Application from customer to close the account

o o o o o

Account close form Signature specimen card Returned worn out cheque book is attached Customer will have to pay 250 charges to close the account Statement of account last month

Note: to close the account it is necessary that account should in active position, if not so first it needs to be active (dormant to active). Dormant account/ procedure to active: Dormant account means when customer does not make any transaction (Dr or Cr) to his/her account. With above mention condition after 6 month account automatically becomes dormant. To withdraw amount customer will have to first active the account. Following procedure and documents are required:
o o o o

Dormant application CNIC copy NADRA verification Customer will have to deposit sum of amount

After getting all requirements account has been marked active. Products:

Basic Banking Account Current Account Savings Account Special Rupee Term Savings 365 Gold Business Account Current Life Account Foreign Currency Account

Locker Facility: To avail this facility customer should have account in MCB bank.

Valid national identity card is required Next of kin ID card Locker form is being filled Security charges (refundable) Rs. 2000/Yearly rent Rs.1400 + FED 16% of rent

About Remit Express: Fastest to Pakistan, anywhere in Pakistan, the fastest way of getting your money across to Pakistan. Remit express offers low cost remittance from U. A.E and Saudi Arabia. Your relatives friends or business associates receive drafts within 72 hours. MCB remit express has been specifically designed to meet the needs of the expatriate Pakistani community residing in the gulf countries. FEATURES Easiest and safest way to remit funds, remittance within 24 to 74 hours, personal delivery to the beneficiary, delivery confirmation to the remitter, message facilities for both parties. Your beneficiary will receive the amount even if he/she does not have an MCB account. Procedure to encash amount of remit express:

Pic code is given to bank officer If amount is available against pin code Beneficiary name will be asked by bank officer Sender name will be matched Amount will be matched Receiver CNIC is required and copy Voucher is repaired by bank officer and signed Customer encash it from cash counter

Every transaction which takes place recorded in the computer so all transactions in different departments are forwarded to account department. Since all vouchers from different departments are forwarded to current department so this department tallies all such transactions with current department after maintaining the ledger of each department. Following are different functions performed by this department:

Preparation of Financial Statements for different time span Maintain all accounts of different departments Calculation of profit on different schemes Calculation of markup on different advances Preparation Different types of reports for State Bank Daily position of cash & every accounts Matching daily summaries of all departments with ledger

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) Online transfer Rupee traveler cheque(Rtc)

Demand Drafts (DD) DD is a written order given by the branch of the bank on behalf of the customer to other branch of the same bank to pay the certain amount to the customer. DD are issued for the particular place other than place of issuance. A draft is a Cheque drawn by a bank on its own branch or any other branch of another bank at a different place requesting it to pay on demand a specified amount of money which is already received to the person named on it. It is used payment is done out of station and it is garneted by bank once it is made (if it is not cancelled by customer). Documentation and procedure of clearing of DD: DD can be obtained by both accountholder and non-accountholder. For both customers one form with name SF-100 is available which is filled and proceeds to make a DD that form contains information about beneficiary, purpose of making DD, customer identity (in case of accountholder account title and number is written but in case of walking

customer CNIC copy and information as per CNIC is written) and DD charges Up to 100000: commission 100, postage 75, FED 16, withholding tax .3%(in case of cash). More than 100000: commission (Rs 150 or .1% which ever is higher), postage 75, FED 16, withholding tax 0.3% (in case of cash). Note: DD can be on cash or on cheque. After completing all information and attached requirements original DD is made and handover to customer with signature of authorized bank officer. Each DD contains one original instrument and two carbon copies one for dispatch to branch to whom DD is drawn on and other for record keeping. As the correspondent branch to whom DD is drawn on receives the dispatched copy of DD that branch entered DD but do not posts to any account till the original instrument is presented through clearing. Pay Order: Pay order is used when customer wants to payment some one and the party want secured payment mode. Pay order does not dishonor as cheque. 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. Documentation and procedure of clearing of pay order: Slip is filled (SF-100) and deposited to concerned officer in case of cash customer will have to deposit cash first and in case of cheque after verification of signature customer directly goes to remittance officer. Remittance officer check balance in customer account first and then debited the customer account and make pay order. It will always be deposited in mentioned person account and if it is deposited in other than drawer bank it will be cleared in local clearing. Pay order charges: Rs 75/- for accountholder and Rs 250/- for nonaccountholder (walking customer/ in cash). Note: no charges from students for payment of fee favoring educational institution.

Online Transfer: When branches were not online for transfer of out station branches of bank TT (Telegraphy Transfer) were use. In this way message was sent through FAX or through email. But now its time to be connected via internet globally and branches are online. Now other branch account can also be access and can be debited or credited when needed. Documentation and procedure of clearing of pay order: First SF-100 been filled. This form contain information about beneficiary name, account number, branch code, accountholder name, account number and Two signature of applicant. Online transfer can be through cheque or by cash. In case of cash online CNIC copy is essential. Online charges are as follows: Commission 100, FED 16 and in case of cash online 0.3% if amount is more than Rs. 25,000. Rupee traveler cheque (Rtc):

Can be a safest way to carry cash Cheque is accepted at trade centers & branches No need to be a/c holder for traveler cheques Cheque is signed once when issued. Upon delivering second signed are made

In cash department both deposits and withdrawals go side by side. This department maintains the following heads:

Cash online Cash deposited by customer Cash received against any utility bill Cash withdrawal by customer through cheque

At the time of payment against cheque following things are being checked

Signature & date Cross cutting

Drawees a/c title Amounts in words & figures Two signatures at the back

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 clearinghouse. A clearinghouse is a general organization of the banks at a given place, 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 clearinghouse 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 clearinghouse, 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 National bank of Pakistan. 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 clerk collects all cheques and enters them in clearing Register. Then he affixes stamps on these cheques and sorts out cheques of different banks and prepares. Schedule for them. These cheques are sent to clearing house. National bank of Pakistan has extended the service of Clearing House. MCB will receive all the cheques drawn by other banks. Finally they exchange their cheques mutuality. MCB representative will give cheques of UBL, HBL, ABL, NBP, and SBP to their representatives, and get the cheques drawn on MCB from this representative. Further they settle their account. National bank of Pakistan representative will work out the balances and will settle their account from their balances with National bank of Pakistan. The amount of the cheques is credited in the account of depositor on the 2nd or 3rd day. If the cheques are not returned it is under stood that all the cheques are honored.

Steps in clearing: Customer deposits instrument. (Cheque, DD, PO, RTC, etc) There are four available possibilities about instrument.
1. Other Bank intercity cheque. 2. Other bank outside city cheque. 3. Other branch cheque.

4. Branchs own cheque.

Treatments: 1. If other bank intercity cheque is deposited by customer in their account cheque is dealt in local clearing. Cheque is given to concerned bank and that bank check the status of their own customer reference to clearing instrument, if the other bank find everything clear(balance, signature, date) then reports to MCB to pay against the instrument. MCB then deposit the instruments amount by giving credit to the customer account. 2. If other bank outside city cheque is deposited by customer, cheque is dealt through OBC (outward bills for clearing). 3. Example: suppose if MCB Mian Channu customer deposits Alfalah Lahore branch cheque in their account. MCB Mian Channu branch will send this cheque to MCB Lahore branch so that the may clear the cheque in Lahore local clearing and report back to MCB Mian Channu branch. If Alfalah Lahore clear that cheque then MCB Lahore branch report MCB Mian Channu by using advice which contains the information about the cheque and confirmation about the amount is transfer to HO account you may take the amount from there. As the advice received by MCB Mian Channu the customer account is credited. 4. Other branch cheque deposited by customer can be adjusted in the bank (MCB Mian Channu) in case of online. Because all information is available online they just check

the required information and make payment or transfer. If cheque is amounted above 100,000 then confirmation is required through email. 5. If customer deposits Branchs own cheque in their account then it is treated in local transfer.

MCB divided the advances in to two major types:

Fund Based Non Fund Based

In the fund base advances, the funds of MCB is involved and in Non Fund based only guarantee is given by the bank. Fund Based Loan: In fund based loan bank actually grant real cash to borrower against any security. Non-Fund Base Loan: In this case bank does not actually handover cash to borrower instead issues guaranties. Mcb Pyara Ghar Owning your dream home has never been easier. MCB Pyara Ghar is the most sensible option for purchasing, building, or renovating your new/existing home. It offers you a range of financing options to help you realize your dreams. After all ", Apna Ghar Pyara Ghar". Cities offering housing finance: Karachi, Lahore, Faisalabad, Rawalpindi and Islamabad cities are offering housing finance. MCB CAR4U Life in the fast lane can be really slow without a car. MCB Car 4 U makes it a breeze to finance/lease your new/used car. So get up to speed, because "Kahin Na Kahin Tau Hai1 Car 4 You". Flexible

Option for financing or leasing Financing tenures from 1 to 7 years Option for new as well as used cars Options for local as well as imported cars Financing upto Rs. 25 lacs Option for early payment Option for replacement loan

Minimum 20% down payments

Currently available in the following cities: Karachi, Lahore, Faisalabad, Rawalpindi, Islamabad, Sialkot, Gujranwala, Hyderabad. Agriculture loan: Agriculture Sector Financing MCB is financing agriculture sector since 1973. Due to large branch network and specialized staff posted in the branches, MCB caters to the financing requirement of the farming community spread through out the country and facilitates in achieving increased productivity. MCB has reinvigorated its agri financing products under the brand name MCB Green Scheme. The scheme is designed and aimed at meeting all types of financial needs of agriculture sector covered under extended list of eligible items. Agri financing facilities are available through out the country at designated Lending Branches. All types of financing is available for short, Medium and Long term depending upon farmers choice and the nature of finance. MCB gives top priority to small & medium size farmers so that they could be protected from the exploitation of private money lenders. Eligibility Criteria The applicant should be a farmer & includes tenants/individuals/partnerships and corporate farms engaged in farm or non farm activities are eligible to avail credit facilities under MCB Green Scheme. Minimum age limit for individual is eighteen years (18). The applicant should be able to offer adequate Security acceptable to the bank. The applicant should not be a defaulter of any other bank and must be having a clean CIB report. The farmers should be having an account with the branch. Ladies are eligible to avail credit facilities as co-applicant. Documentation Documents required will be the following:

Agriculture Credit Application (MF-5). Appraisal Form (MF-46-Revised). Report from Credit Information Bureau (CIB) if required. Borrower Basic Fact Sheet (BBFs). Valuation of security offered. Legal Opinion upon security (where applicable). Attested Copy of CNIC of Borrower. Copy of Agriculture Pass Book or copies of rural/urban property documents/Girdawari etc. or any other security acceptable to the bank Proof of having leased land in case the farmer is tenant

Security The intending borrower is advised to visit the nearest MCB Branch for information. This will enable him to discuss his / her requirements and have first hand information on every aspect of the process through face to face interaction. Bank shall consider only those credit proposals for financing which are viable. However, as a general rule, bank will always obtain adequate security / collateral, in accordance with sound and prudent banking practices, for agriculture loans / finances, detailed as under. a) Mortgage of Agriculture land through Pass Book system (Note: Financial accommodation against security of third party pass book is not permissible under loans for Agriculture Purpose Act 1973).Or Mortgage of rural, urban or commercial property Or Pledge of cash collateral, securities, lien on bank deposit Or Any other tangible collateral security acceptable to the bank. Valuation of Properties: The property offered as security outside the Pass Book will be valued by bank's approved evaluators. Branch Manger / officer personally visits the Agriculture land / property before accepting the same as security. The Market Value / FSV of agriculture land or rural/urban property shall also be assessed by Branch Manager / AMM / AMO as independent inquiries to ensure that market price is realistic and not exaggerated. Market value of Agriculture land may be accepted (calculated by revenue department) taking three years average "Baiy" of same locality.

Note: agri loan are categories in tow heads and products are also divided according to these heads.

Farm based Non Farm based

Farm Credit These are the credits provided by the MCB for the purchases of inputs for development of agriculture sector. Following are two main sub classes of Farm Credit.

Production Finance Development Finance

Production Finance: These are short term loans. These loans are provided to farmers for purchases of different type of input, for example, Seeds, Fertilizers, and Pesticides. These loans are provided against personal guarantees or mortgage of land as a security. Development Finance: These are medium or long term loans. These loans are provided for the development of agriculture sector. Main purpose of these loans is to purchase instrument:

Tractors Installation of tube-well Planting of garden

The loans are disbursed against security of land (mortgage) or any other security acceptable to bank. Non Farm Credit: Second major form of agriculture advance is Non-Farm Credit. These loans are provided against mortgage of land as a security or pledge of equipment as a Collateral security. These are medium or long term investment depending up the project. These loans are provided to boost up agriculture sector to provide the sources of earning of foreign

exchange as well as to provide employment to people. Following are the different types of small industries for which loans are provided to improve the economy of the country:

Fish Farm Cattle Farm Poultry Farm Dairy Farm

Products are available with different name:

Shadabi Plan Khushali Scheme Tractor Finance Scheme Aabiari Scheme Dairy and Meat Plan Murghbani Scheme Baghbani Scheme

Smart Card / Debit Cards: Smartcard is your debit card for cash free convenience. Use it for your shopping and purchases at a rapidly growing nationwide network of merchant locations including petrol pumps, stores, bakeries, departmental stores, jewelers, travel agents, restaurants, chemists, hospitals etc. Utility Bill Payment Make bill payments upto Rs. 20000 per day per card. Currently available for payment of gas bills of Sui Southern Gas customers, this facility is being expanded to cover all utility bill payments. Funds Transfer Transfer funds between a maximum of 8 pre-registered online accounts within the growing network of MCB branches across 30 cities.

24 Hours Cash Withdrawals Balance Inquiry Mini Statement MCB Visa Platinum: MCB Visa Platinum Credit Card is accepted at nearly 29 million locations in more than 150 countries around the globe and over 30,000 establishments in Pakistan. MCB Visa Platinum Credit Card members can avail the comfort of CIP lounges at no cost at all. Just present your MCB Visa Platinum Credit Card and relax in the CIP lounge at Karachi, Lahore and Islamabad International airports.

Access to over 600 airport VIP lounges in over 100 countries and over 300 cities so you can treat yourself like a VIP no matter where you travel, or which airline and class you fly. Peace and quiet relax and unwind away from the chaos of the airport, and enjoy a range of complimentary refreshments. Full business facilities most lounges offer phone, fax, email and internet facilities, some even have conference rooms. Excellent value for money three membership plans designed to offer you VIP airport lounge access at competitive rates no matter how frequently you travel.

Virtual Banking:

MCB Virtual Internet Banking offers you the convenience to manage and control your banking and finances; when you want and where you want. MCBs Virtual Internet Banking facility is:

Simple Secure Free of cost

MCB Virtual Internet Banking allows you to access banking services, 24 hours a day, 7 days a week and throughout the year. MCB offers

Detailed Account Summary of all listed accounts. Mini-statements of each of the listed accounts showing recent transaction history for those 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 Bill Payments. 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. 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. Mobile Recharge facility for all Telcos!

How can you start:

Click on the register link on the MCB Virtual Banking page & complete the application form, suggest your MCB Virtual Internet Banking User ID choices and click submit. Visit any MCB ATM, select the option Service Requests and on the next screen select Internet Banking Reg. Wait a while for the Registration to complete and the appropriate message will be displayed. Check your registered email address for the registration confirmation containing your Virtual Internet Banking Password and Customer number. With your Customer Number handy, call the MCB Call Centre on (021) 111-000-622 to obtain your User ID. After verification User ID will be disclosed to you, enabling you to start using the MCB Virtual Internet Banking service.

To enable you to use the MCB Virtual Internet Banking Service, we will give you an initial login password and a user identification code you may then choose your own Password for the MCB Virtual Internet Banking Service. These are your Security Codes and both will be used to identify you whenever you access the MCB Virtual Internet Banking Service. Mobile Banking: MCB Mobile is a brand new way to check your account balance, view your mini-statement and do the following:
o o o o o o

Recharge Prepaid Mobile Connections Pay Postpaid Mobile Bills Pay Utility Bills Transfer funds instantly (to any MCB account) Pay MCB Credit Card Bills Make Donations and lots more

Its quick: Transactions at the speed of thought! You can do transactions wherever and whenever you want to. Thinking of paying a bill, buying mobile credit or sending money to anyone with an MCB Account? You can do it NOW.

No need to call the call center.

No need to visit a branch. Just use your mobile phone to login to MCB Mobile and all of this is possible in a matter of seconds.

Its Easy MCB Mobile is one of the easiest ways to make payments. Avoid the cost of physically going to a branch to make your payment. Avoid the hassle of standing in a line to do a transaction. Simply use your mobile phone to make your everyday payments. Its Secure MCB Mobile gives you peace of mind.

Communication between the mobile phone and MCB takes place over encrypted channels. No Bank Account related information is stored on your Mobile Phone. MCB Mobile is VeriSign certified.

To ensure maximum security this service uses two PINS for transactions to take place. Without the two PINs no activity can take place via MCB Mobile

The Mobile PIN is the PIN which you receive when you register for this service. This PIN only allows you to login to this service. The ATM PIN is the same as the ATM Cards PIN which you used to register for the service. This PIN allows you to conduct any transaction. For eligibility you must have active MCB ATM card.

Registration process:

Visit any MCB ATM, insert your ATM card and enter your ATM PIN to for authentication. Select mobile banking registration from Service Request menu. Enter the mobile number you want to register for mobile banking and confirm entry. You will receive a SMS confirming registration

Call our call centre at 111-000-622 to speak to an agent. After verifying your information you will be activated and a Mobile PIN will be sent to you via an SMS. Point your mobile browsers to www.mcbmobile.com to start transacting.

Charges / Limits: Charges:

o o o

An annual fee of Rs. 300 + FED is applicable for MCB Mobile customers. All customers get a Three (3) Month Free trial period from date of activation. MCB does not charge a transaction fee. All transactions (financial & non financial) are FREE of cost.

Transaction Limits:
o o o o

Overall Daily financial transaction Limit of Rs. 100,000. Prepaid Mobile Top-up limit of Rs. 10,000 per day. Number of financial transactions limited to 10 per day. Credit Card Bill Payment is as per your actual outstanding balance. It does not fall under the Overall Daily limit.

Sms Banking: Now, MCB SMS Banking gives you quick and easy access to your account(s) round the clock, at your convenience.. This service is available to all MCB Account Holders anytime, anywhere. MCB SMS Banking allows you to avail the following services:

Account Balance Inquiry. Account Mini Statement (last 5 transactions). View Credit Card(s) minimum payment. View Credit Card(s) outstanding balance. View Credit Card(s) bill.

A Free Service

MCB SMS Banking is a free service for all MCB account holders. However, standard SMS charges levied by your service provider are applicable. This service is currently available for Mobilink Customers.

Registration process: Simply follow the steps below: Step 1: Contact MCB Call Center on 111-000-622(MCB). The call center executive will verify your account information. After successful verification, you will receive a welcome message on your mobile phone Step 2: Once you receive the Welcome Message on your mobile phone, you need to generate your SMS Banking PIN in order to start using the service. To generate PIN:

Type RG, give a space, then type a 4 digit PIN of your choice and Send to 6222 For example, if you select 1234 as your 4 digit PIN code, send RG 1234 to 6222.

You will receive a message confirming your PIN on your mobile. Step 3: Congratulations! Now you can start using SMS Banking service. Just type the required Service Code, give a space and type your four digits SMS Banking PIN and send to 6222 For example: BAL 1234 and send to 6222

S. # Item 1 Telegram on TT 2 Postage on MT

Rate Actual-MinimumRs.116+0.3% Actual-MinimumRs.75

Cancellation of DD/Pay order Rs.150 far Account holder Rs.400 far non Account holder Rs. 6 per leaf Rs.250 for LCY Rs.400 far Account holder Rs.300 far non Account holder Rs.500 Rs.200 far Account holder Rs.250 far non Account holder Rs.10 per piece Rs.300 Rs.50 Rs 50

4 5 6

Issuance of Cheque Book Account closing Cost Issuance of duplicate Draft

7 8

Issuance of duplicate FDD Issuance of duplicate Pay order

9 10 11 12

Issuance of RTC Stop payment charges Issuance of fresh statement Issuance of duplicate statement

Strengths:

Strong customer relationship MCB is the first Pakistani privatized bank and because of its quality management, marketing, innovation in products and services. Owing to all such factors they have established a good reputation in the banking market. The name of MCB makes you recall the highly cooperative and professional individuals ready to serve you with maximum zeal and zest. Flexible behavior of employees to customers MCB in Pakistan is the also in the list of highly automated banks like Emirates because of its modern style of banking through fully computerized control and twenty four hour banking. Working since 1980 in Mian Channu

Experienced staff

Weaknesses:

Staff is not enough to deal with customer; at least one CSO is required. Duties are performed without sequence which later leads to delay and inconvenience 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. To give everyone equal protocol is lacking among employees. No IT review is taken. (Weakly or monthly) Mismanagement of time is another big mistake in MCB branches, the bank official time of closing is 5:30pm but due mismanagement of time allocation and work the staff is normally on their seats till 7:00 or 8:00 clock. Space is not enough to deal with large number of customers inside the bank and building is in bad condition. No proper parking area with shade. The majority of people are not well aware about the products of MCB. Therefore it should advertise extensively especially RTC and Master Cards. No ATM is available in MCB Mian Channu branch.

Opportunities:

Bank is situated at market comity gate so it can grasp more customers by marketing that would be fruitful to the bank. Mian Channu is seen very busy market for business activities so there are number of opportunities to find loyal and successful people who need funds to expand the business.

Mian Channu city has very beautiful and grassy stadium that remains busy with variety of game activities so bank can sponsor them at small level and can earn attention. The belt where Mian Channu is situated is also called agriculture belt so there are number of opportunities to issue more agriculture base loan.

Threats:

Competitions among banks / new banks are being opened. Electricity shortfall Political instability Natural disasters Terrorist activities Increment in taxes

To be competitive the Bank has further reinforced its position in the Consumer banking area 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 account facility, have grown into stronger business relationships. The branch network was expanded to Lahore, Multan, 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, re-alignment 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 E-Finance 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 core banking businesses in Corporate, Commercial and Consumer Banking retaining its market leadership as Pakistans progressive Bank.

Learning During my internship in MCB Mian Channu I found my supervisor and other staff very cooperative.

Customer dealing especially in account opening department where I did open number of accounts. I learned about how to adjust myself in organization environment. How motivation leads the person towards better performance. Punctuality towards work If you will leave the todays work on tomorrow how it will make your tomorrow painful.

Duties

Filling of slips for: Online transfer, Deposit slip, DD slip, pays order and RTC. Issuance of cheque book Account opening Active dormant account Making of clearing ATM card form filling and sending request Making of speed and exchange payment vouchers Maintaining of cheque return register Making of NADRA verification of bank customers

New Knowledge Acquired It was really great experience for me to work in the practical scenario because before this internship training I was not aware at all that how

the work is actually done in the organizations. The bank in which I have done internship was basically a consumer bank providing facilities of personal and business loans. They are not dealing with import & export. The working environment of bank was very friendly and cooperative; all the seniors really helped me whenever I asked about any thing. In the starting days I was put on to the job of cheque filling and deposit slip filling. I also learned how to issue cheque book. After one week I have shifted to account opening cell where I learned about account opening procedures customer dealing and filing about opened account under supervision of Sir Mustafa. I opened more than 15 accounts. I have also worked in remittance department where I learned the method and charges schedule of making Pay Order, Traveler Cheques and Demand Draft etc under supervision of Miss Aysha Zafar. I have also worked in clearing department with clearing Officer Tajammul Niazi where I learned how out station cheques and other banks cheques been cleared and making of OBC.

How Experience Impacts Career In educational institutions one gets only bookish knowledge and there is not too much training given to them about the actual working environment prevailing in the organizations. It does not matter how much intelligent a person is, when he first time steps into the practical life he/she thinks that we have not learnt enough to work in the practical life. Experience makes a man perfect for work and practical life. The bank where I have done internship is having qualified staff but they are excellent in their work due to experience. After the internship I also feel that now I can perform the assigned activities effectively and efficiently.

In Mian Channu MCB branch there are number of things that should notified by the manager and their staff for the betterment of the branch. I observed and feel some activities that should be taken to improve the performance of the branch.

MCB Mian Channu branch building is in very pathetic position and immediately needs to be change or reconstruct. There is a need of one CSO (customer service officer) to deal such a large number of customers. This action will make the stationary cost low, decrease in some usual error of slip filling and release burden from other employees. IT review should be taken weekly where all computer and other accessories should be tested. Proper parking area should be provided. There should be a training session on monthly basis for staff. Job rotation should be done; it will provide help to keep operation smooth if any employee is on vacation. Marketing rounds for new and fruitful accounts once in two months should be taken. Computerized token system should be installed to avoid long queues for cash deposit and withdrawal.

By implementing the above mentioned suggestions ultimate customer will be facilitated and happy customer is a way of getting more customers through their word of mouth.

Earning per Share

This ratio determines the amount of income that has been earned on each share outstanding. Earning per share=Net profit after tax/ Total no of shares EPS of 2008
15, 374, 600000/ 691,104,527=22.25

EPS of 2009
15, 495, 297000/691,104,527=22.42

Interpretation . Earning per share is better in 2009 because in this year return on investment was also satisfied.

Net Profit Margin

N.P.A.T/ Total Income * 100 (Rupees i000) Net profit of 2009 = 2006 47.1% 15,495,297/51,616,007*100 2008 38.39% 2009 30.02%

2007 48.02 %

Interpretation Net profit margin in 2009 is less than the previous years due to increase its expenses

Current ratio
[Current Ratio = Current Assets / Current Liabilities](Rupees in 000)

2006 111.84%

2007 110%

2008 111%

2009 124.56%

Current ratio of 2009 = 468168736/375850551

Interpretation In 2009 current ratio of MCB is higher than previous year it means in 20098 company current assets is higher than its current liabilities

Working Capital
It is the difference of current assets and current liabilities. Working capital=current asset-current liability (Rupees in 000) Working capital of 2009 = 468168736-375850551 2006 31,757,831 2007 34,129,446 2008 43052232 2009 92318185

Interpretation Working capital of 2009 is much better then past years. It means that assets are utilized more economically in 2009 as compared to others years.

Return on assets
NPAT/total assets*100 (Rupees i000)

Return on assets of 2009 = 15,495,297/509,223,727*100 2006 7.53% 2007 7.74% 2008 9.02% 2009 3.04

Interpretation In 2009 the net profit of the bank as compare to its assets is less than the previous years of 2008 and 2007 which is mentioned in this graph.

Return on Investment (ROI)

It is the return on investment.. Return on investment= Net profit after tax/Total investment (Rupees i000) Return on investment of 2009 = 15,495,297/167,134,465 2006 19.12% 2007 48.25 2008 15.91% 2009 9.27%

Interpretation The return on investment in 2007 is much higher than current year return in 2007 the bank earned a reasonable profit so its roi is 48 % and in 2007 it is only 9.27 %

Gross Profit Margin

Net markup/ Interest earned (Rupees 000) Gross Profit Margin of 2009 = 35,774,544

/ 51,616,007

2006 82.44%

2007 75.26%

2008 71.11%

2009 69.30%

Interpretation Due to decrease in profit before tax in 2009 its gross profit margin is also lower than previous years

Fixed Assets Turnover

Fixed assets turnover ratio is also known as sales to fixed assets ratio. This ratio measures the efficiency and profit earning capacity of the concern. Fixed Assets Turnover Ratio = Cost of Sales / Net Fixed Assets (Rupees 000) Fixed Assets Turnover Ratio of 2009= 51,616,007/ 18,014,896 2006 2.84 2007 1.98 2008 2.31 2009 2.86

Analysis

The MCB bank in 2009 utilize its fixed assets more effectively than previous years to generate its sales

Return on Equity
Return on Equity of 2009

24, 710, 953000/

6, 911, 045000=3.56 2006 3.14 2007 3.31 2008 3.27 2009 3.56

Interpretation Return in equity in 2009 is 3.56 % which is higher than previous years so its means that the return on equity capital is very good

Net Profit Margin

. N.P.A.T/ Total Income * 100 Net Profit Margin of 2009 15, 495, 297000
/ 51, 616, 007000=

2006 47.1%

2007 48.02 %

2008 38.39%

2009 30.02%

Interpretation Net profit margin is increasing in 2026 to 2007. It means the bank is going in better position. But in2008 and 2009 it decreases gradually which bad sign for bank.

Acid Test Ratios

It is the ratio of liquid assets to current liabilities . Quick ratio= current assets-inventories/current liabilities 468168736-167134465/375850551 2006 89.06 2007 76.94 2008 85.36 2009 80.09%

Interpretation In 2006 acid test ratio is higher than 2009 which means the bank has less most liquidate assets in less proportion than in 2006

In a nut shell it can be concluded that the overall performance of the bank is quite satisfactory. MCB's total assets, investments, deposits and equity has increased but profitability has decreased by a soaring percentage of 58.23%. The reasons which I have traced out of my analysis and studies are as follows;

Increased financial costs of funds for which expected investment revenues did not open up. Return on lending has been reduces Bank has increased its classified advances by 35% to fulfill the requirements of Prudential Regulations. The fresh increase is mainly 51% in the other assets especially mentioned classification. According to the

prudential regulations requirements, accrued markup cannot be credited to income but to suspense A/C. During the year 2008, the economy of the country remained in sluggish. In spite of various policy measure initiated by the government for confidence building of the domestic and foreign investors and steps taken such as: o Creation of small and medium entries development authority (SMEDA). o Financing under prime minister's self employment scheme. o Launching of Mera Ghar scheme etc. o For revival of economy, the expected investment environment could not be created and economy did not pick up. The large number of non-commercial banking institutions (DFI's and NBFI's) also competed for limited resources and investment avenues- thus further narrowing the spread of banking industry. Although, economic sanctions imposed as a result of nuclear blast and the country's level of foreign debt and directly impending economic growth, but the debt rescheduling at the Paris Club and large financial commitments by the multilateral agencies will improve country's external position and provide a sound footing for medium term planning. In this improved and stable economic environment, the bank will get opportunities and by making sincere efforts can increase its profitability and equity.

Previous year is expected to pose a tough market environment. Shortage of rains and electricity can seriously impact overall GDP growth. The tight monetary policy is impacting the country's exports with a ripple effect on the manufacturing sector. The documentation drive, which is good for the country over a long period of time, is being expectantly viewed with concern by certain segments. The combined

impact of these factors may cause a slowdown of economic activity in certain pockets of the economy. On the positive side, the resolution of issues in political and pragmatic handling of the documentation deive by the government and continuous efforts to normalize international relations should bring positive results. MCB is and will positioned and flexible enough to operate effectively in the changing scenario. We will continue to broaden our customer base, harnessing the growing strength of the MCB brand and expand the platform to provide value based propositions to our customers.

Bibliography http://www.mcb.com.pk/ http://en.wikipedia.org/wiki/Muslim_Commercial_Bank www.scribd.com/doc/30554269/MCB-Internship-Report Mr. Imran Operational Manager of MCB Mian Channu branch Mr. Mustafa In account opemimg Cell Miss Aysha Zafar Remittance Officer Mr. Imran Aslam in Creditdit department Reding of MCB internship report hard copy

www.sbp.com.pk

www.kse.com