Internship Report MCB-Bank LTD

INTERNSHIP REPORT
ON
MCB BANK Ltd.

Rizwan Ahmad
M.B.A Banking and Finance
2011-ag-1401
0321-7688898
rizwan.ahmad92@hotmail.com

Institute of Business Management Sciences
University of Agriculture
Faisalabad.
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University of Agriculture Faisalabad

Letter of Transmittal

The Manager,
MCB Bank Ltd.
Razabad Branch,
Faisalabad.

Subject: Submission of Internship Report

Dear Sir,

It is to present you the internship report which is executed at MCB Bank Limited
as required by the university as a degree requirement for MBA (R) 3.5 Years
program. This report has been prepared in accordance with the guidelines issued
by the bank.

It is the result of my first professional experience. The report is a practical
application of whatever I studied as a business graduate of Institute of Business
Management Sciences. In this report, I have covered the introduction of MCB,
detail of my working and learning in general banking of MCB. I had assisted the
manager operation for assignments, but for learning assist incharge of each
department.
I have put all the efforts to summarize my knowledge and experience in this
report, to make it comprehensive and to meet readers expectations.

Yours sincerely,

Rizwan Ahmad

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PREFACE

It is the requirement of the MBA (R) 3.5 Years from Institute of Business
Management Sciences, University of Agriculture Faisalabad that all students of
MBA (R) 3.5 Years have to spend six or 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 two months 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 Razabad
Branch, Faisalabad.
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.

Rizwan Ahmad
2011-ag-1401
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ACKNOWLEDGEMENT

All praises to Almighty ALLAH and our Holy Prophet MUHAMMAD (S.A.W) who
gave me the courage and patience for completion of this final report.
I wish to acknowledge my gratitude to my inspiring Teachers for their endless
persistence, support and encouragement, and for providing me a lifetime
opportunity to work with MCB Bank.
I am also very thankful to MCB Bank Ltd. Razabad Branch, Faisalabad and the
Branch Manager Mr. Khizar Farooq Janjua who gave me opportunity to work
with experienced persons in their organization.
I am also thankful to my parents, family and friends that continually offered
encouraging support.

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TABLE OF CONTENTS

TOPICS: PAGE NO.
Letter of Transmittal______________________________________2
Preface________________________________________________3
Acknowledgement_______________________________________4
Table of Contents________________________________________5
Executive Summary______________________________________ 7
Introduction of Sector_____________________________________9
The MCB Bank Limited__________________________________12
Vision Statement________________________________________13
Mission Statement______________________________________13
Head Office____________________________________________14
Circle Office___________________________________________15
Management of Organization______________________________16
Organizational Structure__________________________________17
Information About Branch________________________________ 21
General Banking_______________________________________ 22
Departments Where Internship Was Carried Out______________ 23
Operations Department__________________________________ 23
Clearing Department____________________________________ 30
Remittance Department__________________________________35
Other Departments______________________________________39
Cash Department_______________________________________39
Technology Department_________________________________ 41
Financial Analysis of MCB________________________________43
Ratio Analysis__________________________________________43
Advantages of Ratio Analysis______________________________44
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Liquidity Ratios_________________________________________45
Debt Ratio ____________________________________________46
Market Ratios__________________________________________47
Vertical Analysis________________________________________51
Horizontal Analysis______________________________________53
Swot Analysis__________________________________________56
MCBs Swot Analysis____________________________________57
Strengths_____________________________________________57
Weaknesses___________________________________________60
Opportunities__________________________________________61
Threats_______________________________________________62
Pest Analysis__________________________________________63
Application of Class Room Learning_________________________65
What I Have Learnt In MCB_______________________________66
Suggestions & Recommendations__________________________67
If I Were Manager At MCB Bank__________________________69
References & Resources_________________________________70

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EXECUTIVE SUMMARY

The banking structure in Pakistan comprises of the following types, State Bank of
Pakistan, Commercial Bank of Pakistan; Exchange Banks, Saving banks,
Cooperative banks, Specialized credit institutions. The State Bank of Pakistan is
the Central Bank of the country and was established on July 01, 1948. The
network of bank branches now covers a very large segment of national economy.
The State Bank of Pakistan issues the shares of these periodically. Bank
employees and other common peoples can also purchase these shares and earn
profit. In 1956, MCB transferred its Registered office to Karachi, where the Head
Office is presently located. In April 1991, MCB became Pakistans first privatized
bank.
The branch at Shahrah-e-Faisal Karachi (SFK) is the corporate branch of MCB in
Karachi. The bank is using SWIFT for transfer of information about imports and
exports. MCB SFK branch has Currently Following three Departments; General
Banking Department, Advances Department & Foreign Exchange Department.
To open an account the customer has to meet the general banking manager. The
procedure begins with the punching of account opening form to the customer file
i.e. customers master file. Before closing any account, bank send letter to the
account holder for informing him that his account is going to be closed. There is
need an approval form higher authority to close any account. Current deposits
are those which are payable to bank whenever demanded by the customer. Bank
does not pay any profit on current deposits. The following are the financial
products/services of MCB Basic Banking Account, Current account, Savings
Account, Foreign Currency Account, Smart Dollar Account, Saving 365 Gold,
Flexi Deposit Mahana Profit, Business Account, Saving Xtra Account, Current
Life Account, Smart Savings, Saving Maximizer, Khushali Bachat and others like
Bancassurance, credit cards, traveler cheques.
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In remittance department like any other bank MCB also have instruments for
transferring of money Pay order & Demand Draft. In cash department both
deposits and withdrawals go side by side.
This department maintains the following sheets, books, and ledger of account
cash received voucher sheet, cash paid voucher sheet, Paying-in-slip, Cheque
book, Cash balance book. The clearing in Karachi at MCB or other banks is being
done through NIFT (National Institutional Facilitation Technology).
Bank provides this facility to the people who need advance money to meet their
requirement. Party dealing with other banks financial condition of borrower
business and as a first step credit proposal is being made. MCB provides
advances, which are two types; Secured Advances & Unsecured Advances. MCB
usually classified advances in to following types Agricultural Advances,
Commercial Advances, Industrial Advances. Commercial Advances are of
following types:
Demand Finance, Cash Finance, Foreign bills purchased, Finance against
imported goods, Finance against foreign bills, Export Refinance Part I (Pre
Shipment) & others. Banks Agriculture division deals with the agriculture
advances. Bank provides the Agriculture Advances in order to enhance and
support the agriculture sector of the country; Farm Credit & Non Farm Credit.
In foreign exchange, MCB is dealing Foreign Currency Accounts, Foreign
Remittances, and Foreign Bills for Collection, Imports & Exports
Foreign currency accounts & the foreign currency department deals with the
following types of accounts; Smart Dollar account, Current account, Saving bank
account, Term deposit. Foreign accounts are convertible on floating rate available
to the bank. Letter Of Credit facility is being provided by MCB in foreign
exchange.

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INTRODUCTION OF SECTOR
The word 'Bank' is said to have been derived from the words Bancus or Banque
or Bank. This history of banking is traced to as early as 2000 B.C. Banking in fact
is primitive as human society, for ever since man came to realize the importance
of money as a medium of exchange, the necessity of a controlling or regulating
agency or institution was naturally felt. The priests in Greece used to keep money
and valuables of the people in temples. These priests thus acted as financial
agents. The origin of banking is also traced to early goldsmiths. They used to
keep strong safes for storing the money and valuables of the people. The first
stage in the development of modern banking thus, was the accepting of deposits
of cash from those persons who had surplus money with them.
The goldsmiths used to issue receipts for the money deposited with them. These
receipts began to pass from hand to hand in settlement of transactions because
people had confidence in the integrity and solvency of goldsmiths. When it was
found that these receipts were fully accepted in payment of debts; then the
receipts were drawn in such a way that it entitled any holder to claim the specified
amount of money from goldsmiths. A depositor who is to make the payments may
now get the money in cash from goldsmiths or pay over the receipt to the
creditor. These receipts were the earlier bank notes. The second stage in the
development of banking thus was the issue of bank notes.
The goldsmiths soon discovered that all the people who had deposited money
with them do not come to withdraw their funds in cash. They found that only a few
persons presented the receipts for encashment during a given period of time.
They also found that most of the money deposited with them was lying idle. At
the same time; they found that they were being constantly requested for loan on
good security. They thought it profitable to lend at least some of the money
deposited with them to the needy persons. This proved a profitable business for
the goldsmiths. They instead of charging safe keeping charges from the
depositors began to give them interest on the money deposited with them. This
was the third stage in the development of banking.
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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 30
th
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 Australian 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.
State Bank of Pakistan
Commercial Bank of Pakistan
Saving banks.
Cooperative banks
Specialized credit institutions.

Commercial banks have been the most effective mobilizers of savings and have
been providing short-term requirements of working capitals to trade, commerce
and industry.
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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:
1. National Bank of Pakistan
2. MCB Bank Limited
3. Habib Bank Limited
4. United Bank Limited
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.
Throughout the period of banking history the banks have been expanding rapidly
and achieved the desired goal of progress.

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THE MUSLIM COMMERCIAL
BANK LIMITED
HISTORY:
MCB was founded by ADAMJEE Group in Calcutta on July 9, 1947. MCB is not
an overnight success story rather good track of services are responsible for the
leaps and bounds progress. After the partition of the Indo-Pak Subcontinent, the
bank moved to Dhaka from where it commenced business in August 1948. In
1956, the Bank transferred its Registered office to Karachi, where the Head
Office is presently located. Thus, the bank inherits a 66-year legacy of trust in its
customers and the citizens of Pakistan.
The performance of MCB was badly affected by bureaucrat Government. In
January 1974, MCB was nationalized by Bhutto Government following the bank
act 1974 subsequently in June 1974 Premier Bank Limited merged with MCB.
PRIVATIZATION:
When privatization policy was announced in 1990, MCB was the first to be
privatized upon recommendations of World Bank and IMF. The reason for this
choice was the better profitability condition of the organization and less risky
credit portfolio which made it a good choice for investors. On April 8th, 1991, the
management control was handed over to Nishat Group (the highest bidders).
Initially only 26% of shares were sold to private sector at Rs. 56 per share.
MCB besides being money financial organization have rendered invaluable
services in the economics and social developments of our country. MCB today,
represents a bank that has grown with time, experience and Pakistan. A major
financial institution, in scope and size, it symbolizes a fully-grown tree,
Evergreen, Strong, and firmly rooted.

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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 with
confidence in us.

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DEVELOPMENTS:
After privatization, the growth in every department of the
bank has been observed. Following are some key
developments:
Launching of different deposit schemes to increase
saving level
Increased participation on foreign trade.
Betterment of branches and staff service level.
Introduction of Rupee Traveler Cheques & Photo
Credit Card for the first time in Pakistan.
Extended use of information technology which is evident
from the fact that there are 768 fully automated branches,
more than 250- online branches (integrated networking), 151
ATMS in 27 cities nation wide and a M.C.B continuously
innovate new product.
HEAD OFFICE
I.I Chudrigar Road of Karachi has same importance in Pakistans economy as of
the Wall Street in world economy. The division working under MCB Head office is
as follows:
Administration
Credit Management
Investment Banking
Human Resource
Information Technology
Corporate Planning & Budgeting
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Finance & Treasury
International Division
Inspection & Audit
Law Division
Marketing & Development
Trustee Division
Under the President an Executive Committee and a Credit Committee works. All
the matter of the bank join to the board of director are presented to the executive
committee which is responsible for daily operation of the bank .The request for
credit exceeding the General Manager power is approved by the Credit
Committee. Under the area Executive is the General Manager who is the in
charge of the Circle Office. Under the General Manager is the Zonal Manager
and then the Branch Manager. At present, there are 20 circles, 48 regions and
1200+ branches. Before privatization there were Provincial Chiefs for all the four
provinces. But this management now has abolished the provincial officers and
improved the efficiency of the bank.
CIRCLE OFFICE
The working of circle office is to control and regulate the functions of branches
which are under in its control. The functions of circle office are to mobilize the
deposits and receive reports from branches. Circle office is like a mini head
office. Agents and correspondents of MCB are in all commercial cities of the
world. Circle office is divided in the following division:
1. Credit Management
2. Audit & Inspection
3. Human Resource
4. Marketing & Development
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MANAGEMENT OF ORGANIZATION
MANAGEMENT OF BANK:
Mian Mohammad Mansha Chairman
S.M. Muneer Vice Chairman
Imran Maqbool President & Chief Executive
Tariq Rafi Director
Shahzad Saleem Director
Sarmad Amin Director
Mian Raza Mansha Director
Aftab Ahmad Khan Director
Mian Umer Mansha Director
Dato Seri Ismail Shahudin Director
Datuk Abdul Farid Bin Alias Director
Ahmad Alman Aslam Director
Muhammad Ali Zeb Director
AUDIT COMMITTEE:
Tariq Rafi Chairman
Aftab Ahmad Khan Member
Dato Seri Ismail Shahudin Member
Ahmad Alman Aslam Member
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CHIEF FINANCIAL OFFICER:
Salman Zafar Siddiqi
COMPANY SECRETARY:
Syed Mudassar Hussain Naqvi

ORGANIZATIONAL STRUCTURE
As MCB is a banking company listed in stock exchange therefore it follows all the
legalities which are imposed by concerned statutes Mian Muhammad Mansha is
Chairman of the company with a team of 10 directors and 1 vice chairman to
help in the business control and strategy making for the company.
Operational Management of the bank is being handled by a team of 15
professionals. This team is also headed by Mr. Imran Maqbool. The different
operational departments are Consumer Banking & IT div; Financial & Inter branch
div; Banking operations div; HR & Legal div; financial control & Audit div; Credit
management div; Commercial Banking div; Corporate Banking div; Treasury
management & FX Group and lastly Special Assets Management (SAM) Group.
For effective handling of branches, it has been categorized into three segments
with different people handling each category. These categories are:

1. Corporate Banking
2. Commercial Banking
3. Consumer Banking

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CORPORATE BANKING:
These are branches which have an exposure of over Rs. 100 million. Usually
includes multinational & public sector companies.
COMMERCIAL BANKING:
The branches which has a credit exposure of less than Rs. 100 million but having
a credit portfolio of more than Rs. 20 million (excluding staff loans).
Usually branches in large markets and commercial areas come under this
category.
CONSUMER BANKING:
These are the branches which have exposure up to Rs. 20 million and these
include all the branches which are neither corporate nor commercial branches.
Recently the organizational structure was re-designed as follows:
Retail 1170
Privilege 10
WBG 10
Islamic 27
Domestic Total 1217
Overseas 9
EPZ 1
Grand Total 1227
Furthermore, the bank has some proposals under consideration to open more
branches in some European countries and as well as in Japan & China.
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Chairman
Mian Muhammad Mansha

President & CEO
Imran Maqbool

Retail
Banking
Group

Coporate
Banking
Group

Virtual
Banking
Group

Islamic
Banking
Group

Privilege
Banking
Group

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OVERSEAS BRANCHES:
Colombo 1
EPZ 1
Kandy 1
Maradana 1
OBU-Bahrain 1
Pettah 1
Wellawatte 1
Batticaloa 1
Galle 1
Total 9
Dubai(Rep. Office) 1

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INFORMATION ABOUT BRANCH
I did my internship in MCB Bank Limited Razabad Branch, Faisalabad. And some
important information about my branch which I observed are as follows:
MANAGEMENT OF THE BRANCH:
Branch Manager Mr. Khizer Farooq Janjua
Operational Manager Mr. Muhammad Azeem
General Banking Officer Mr. Sadam Bin Tariq
Customer Service Officer Ms. Ayesha Maryam
Teller service Officer Mrs. Humaira Parveen
Chief Teller Mr. Ali Imran
Sorter Mr. Aslam
Tea Boy Mr. Nisar
Sweeper Mr. Lazir

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DEPOSITS:
The total Deposits of this about to 365 Million.
NUMBER OF ACCOUNTS:
Accounts in this branch of MCB are as follows:
CURRENT ACCOUNT:
Total numbers of Current accounts are 2813.
PLS ACCOUNT:
Total numbers of PLS accounts are 6182.
TERM ACCOUNT:
These are about to 5 accounts.
RATE OF INTEREST:
The rate of interest provided by such bank is minimum 6% and maximum 9%.

GENERAL BANKING
It is backbone of banking. It is one of the major department of MCB. It further
consists of following departments:
Operations Department
Remittance Department
Clearing Department
Cash Department
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DEPARTMENTS WHERE INTERNSHIP WAS
CARRIED OUT
Operations Department
Clearing Department
Remittance Department

OPERATIONS DEPARTMENT

In Operations department I was under supervision of Mr. Muhammad Azeem,
Operational Manager. And I learnt to open accounts of different types and nature
which are as follows:
TYPES OF ACCOUNTS:
Single & Joint
Sole Proprietorship
Partnership
Private Limited
Public Limited
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SINGLE & JOINT:
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. In joint account all the conditions remain same but copy of family member is
not needed. The requirements for this type are:
Account Opening Form
2 CNIC Copy of Applicant
CNIC Copy of Family Member
Specimen Signature Card
Source of Income (Any Document Evidence)
Minimum Deposited Balance
Copy of Utility Bill (in case of Resident of Outside the City) etc.
SOLE PROPRIETORSHIP:
In case of Sole Proprietorship a/c applicant mentions that he is doing a business
by his own. Instructions are given for Sole Proprietorship a/c such that the
account shall be operated by the sole proprietor. The requirements for this type
are:
2 CNIC Copy of Applicant
CNIC Copy of Family Member
NTN Certificate Copy
2 Letter Head (1 for Account opening Request and other for Bank
Declaration).
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PARTNERSHIP:
For Partnership a/c along with the application form other requirements needs
satisfied. The requirements for this type are:
CNIC Copy of Partners (Attested by Notary Public)
Partnership Deed Copy (Attested by Notary Public)
Registration Certificate
NTN Certificate Copy
Request of Account Opening on Letter Head
Authority Letter
Minimum Deposited Balance 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 directors 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
member who can be the operator of the account.
Account Opening form
Memorandum of Association
Article of Association
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Certificate of Incorporation
List of Director in Form-29
Attested CNIC copies of Directors
Board of Directors Resolution
Specimen Signature Card etc.
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. And terms regarding board of directors are the same as of
private limited but Certificate of Commencement also included.

NATURE OF ACCOUNTS:
Current Account
PLS Saving bank A/C
Saving 365 A/C
Basic Banking A/C (BBA)
CURRENT ACCOUNT:
In this type of accounts the client is allowed to deposit or withdraw money as and
when he likes. He may, thus, deposits or withdraws money several times in a day
if he likes. There is also no restriction of amount to be deposited or withdrawn.
However, there is requirement of minimum balance maintenance of Rs. 1000/-.
Usually this type of account is opened by the businessmen. No profit is paid by
the bank and no service charges are deducted by the bank on current deposits
account. These types of deposits are also exempt from compulsory deduction of
Zakat.
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PLS SAVING BANK A/C:
This account was started in 1980s after the issuing of banking ordinance in 1980
by Zia Government to develop Islamic banking in Pakistan. In this case customer
would be responsible for bearing profit as well as loss. 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.
Minimum balance is Rs.1000
Zakat deducted on @ 2.5% (If Zakat Exemption declaration is not given)
Profit calculated on average balance
Profit paid on semi annually basis

SAVING 365 GOLD ACCOUNT:
This account is newly developed of MCB and it provides flexibility of saving
account to business people. Profit on deposits will be payable on daily product
basis on balance of Rs. 500,000/- and above. There will be no restriction on
withdrawal from the account. Zakat and withholding Tax is also applicable on the
account opened under this scheme.
Minimum balance is Rs.500,000.
Below minimum balance, profit calculation ignored
Profit calculated on daily basis
Profit paid on monthly basis
Zakat deducted on @ 2.5% (If Zakat Exemption declaration is not given)

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BASIC BANKING A/C (BBA):
Introduced specially for salaried persons & Students.
Minimum balance is Rs.1000.
No service charges.
Only two transactions allowed, in one month.
For more than two transactions Rs.35/- per transaction.
Single natured A/C.
ACCOUNT OPENING PROCEDURE:
Following steps are involved in A/C opening;
ACCOUNT OPENING FORM:
Firstly the customer fills the account opening form and provides all the
information as provided above. I experienced to fill this form.
STAMPING:
Then it is stamped. Stamps like, Sign Admitted Stamp, Sign Verified stamps etc
are affixed.
ACCOUNT NUMBER:
When all the procedures are completed than the final approval is taken from the
Branch Manager. After obtaining approval, an account number is allotted to the
customer and all the information is entered in to the computer and KYC is filled
up. Then that account number is writing on the Cheque Book, Specimen
Signature cards and account opening form.
AOF CHECK LIST:
It is prepared by checking all the required documents for accounting opening are
completed and have attached with the account opening form.
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KNOWING YOUR CUSTOMER:
After entering information KYC is filled up. It should be ensured that at the time of
filling information in KYC, a customer should be physically present. After this all
information is saved in system. I filled KYC form also.
APPROVAL:
This account is further approved by Manager Operations.
RISK RATING SHEET:
Customer Risk Rating sheet is also prepared whether customer is at Low Risk,
Medium Risk or High Risk according to specified parameters given in the form.
SEND FORM TO HEAD OFFICE:
After fulfilling all the requirements and verifying the forms from operation
manager the account opening form is sent to Head Office and make request to
issue the printed cheque book.
LETTER OF THANKS:
Subsequent to the opening of an account, letter of thanks should be sent under
registered post or courier service to the customer.
ISSUANCE OF A CHEQUE BOOK:
After opening an a/c with the bank, the a/c holder cannot immediately start
operating his/ her account. The cheque book is issued, when a customer will
submit a copy of letter of acknowledgement duly signed by him, in case of new
account. And for subsequent issuance of cheque book. He/she has to make a
request once again in the name of bank for the issuance of cheque book and he
should mention title of A/C, A/C number, sign it properly and mention the number
of leaves requires. Normally a cheque book having at least 25 leaves is issued
but it can also be of 50 leaves/100 leaves.

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CLOSING OF AN ACCOUNT:
There is no. of reasons of closing an account. Some are listed below:
o If customer desires to close his account
o In case of death of one account holder.
o Bankruptcy of the account holder.
o If an account contain nil balance or not up to the requirement of rules.
Before closing any account, bank send letter to the account hold for informing
him that his account is going to be closed. There is need an approval form higher
authority to close any account.

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CLEARING DEPARTMENT

In clearing department I worked under supervision of Mr. Sadam Bin Tariq and
Mr Muhammad Azeem. In clearing department I have learned about inward and
outward clearing and I also learnt about:
MEANING OF CLEARING:
The word clearing has been derived from the word clear and is defined as,
A system by which banks exchange cheques and other negotiable instruments
drawn on each other within or outside area and thereby secure payment for their
clients through the Clearing House at specified time in an efficient way.
CLEARING HOUSE
It is a place where cheques are presented, collected from bank branch. It is one
of the services provided by NIFT to other commercial banks. NIFT acts as a
clearing house.
NIFT:
NIFT stands for National Institutional Facilitation Technologies. Clearing
House of SBP has shifted a tiresome part of its work to a private institution
named NIFT. NIFT collects cheques, demand drafts, Pay orders, Travelers
Cheques, etc. from all the branches of different banks within or outside city
through its carriers and send them to the branches on which these are drawn for
clearing. After the branches approve the instruments drawn on them, NIFT
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prepares a sheet for each branch showing the number for instruments and
amount in its favor and drawn on it and sends it to each branch. A similar sheet
for each bank is also sent to clearing house of SBP where accounts of banks are
settled in the same manner.
LEARNING IN CLEARING DEPARTMENT
My learning in clearing department was of following things:
Procedure of clearing a cheque.
Checking of cheques.
Inward and outward clearing.
Different reasons of returning a cheque.
Types of clearing stamps.
CLEARING PROCEDURE:
Instruments collected are treated as Transfer, Transfer Delivery, Clearing, and
Cheque collection.
CHECKING OF CHEQUES:
When the instruments are collected from the client. Following things are checked
Cheque date
Instrument should be neither stale/ nor post-dated.
Title
Amount in figures and words should be the same
There should be no cutting and overwriting on the cheque
Instrument should not bear any unauthorized alteration.
Cheque is crossed.
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TRANSFER:
When the instruments are collected and paid by the same branch, it is called
transfer.
TRANSFER DELIVERY:
When instruments are collected and paid by two different branches of the same
bank situated in the same city, it is called transfer delivery.
A cheque is processed under transfer delivery when it has crossing stamp and is
from local branch of MCB.
CLEARING:
Instruments which are drawn on the branches of some other bank of the same
city or outside city, which is covered by a particular clearing house, are
processed for clearing.
In Outward clearing cheques deposited in the bank which is drawn on a bank
other than that bank i.e., not a transfer cheque and we send instruments along
with clearing stamp, realization stamp, add list and two vouchers of clearing
summary are sent to NIFT in a sealed bag. And clearing records are recorded in
clearing register. There are two types of outward clearing Local clearing,
Intercity clearing.
Local clearing (within the same geographical or clearing zone)
Intercity clearing (drawn on a bank outside the local clearing zone)
In Inward clearing instruments received from NIFT are posted in Computers
after checking. There are two types of Inward clearing Local clearing, Intercity
clearing.
Local clearing (within the same geographical or clearing zone)
Intercity clearing (drawn on a bank outside the local clearing zone)

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PAY-IN-SLIP:
It is used for two purposes:
Whenever we want to deposit cash in our account then pay-in-slip is used by
writing amount on it and depositing it to cashier along with money.
Whenever we have cheque from any party to be collected in our account we fill
pay-in-slip. One part is attached with cheque and another is given to cheque
holder as a receipt.
NOTE:
In inward clearing sometimes cheques are not passed due to some reasons then
cheques are sent back to NIFT along with cheque return memo. Some of these
reasons are,
Cheque incomplete
Clearing stamp Required.
Drawers sign incomplete
Drawers sign different from specimen
Post Dated
Payment stopped by drawer.
Amount in words and figures differ.
Insufficient funds etc.

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REMITTANCE DEPARTMENT

REMITTANCE:
Remittance is transfer of funds from one place to another or from one person to
another. It is an important service provided by banks to customers as well as
non-customers. Since it is not a free service it is a source of income for the bank.
PARTIES INVOLVED IN REMITTANCE
Four parties involved in remittance: -
Remitter, Remittee, Issuing Bank, Paying Bank.
REMITTER:
One who initiates, or requests for a remittance. The bank charges him a
commission for this service. He may or may not be the branchs customer.
REMITTEE:
A Remittee is also called the beneficiary, or the payee. The person in whose
name the remittance is made. A Remittee is also the one who receive the
payment.
ISSUING BANK:
The bank that sends or effects the remittance, through demand drafts,
telegraphic transfers, or Mail Transfers.

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PAYING BANK:
Paying Bank also knows as the drawee branch. The branch from where the
instrument is drawn.
TYPES OF REMITTANCE:
Remittance is classified into following four types
1. Inward remittance, instruments received for payment
2. Outward remittance, issuing instrument to the responding branch.
3. Inland remittance, with in same country.
4. Foreign remittance, from one country to another country.
INSTRUMENTS USED IN REMITTANCE:
Demand Draft (DD)
Pay Order (PO)
Call Deposit Receipt (CDR)
Rupees Traveler Cheque (RTC)

DEMAND DRAFT:
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. DD applicant or
recipient, who might not be an A/C holder present it to 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.
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DOCUMENTATION:
A printed application form is provided for filling in completely and signing by the
applicant. After depositing an amount of draft and commission of the bank, duly
completed and signed by two authorized officers, then it is handed over the
applicant and credit order is dispatched to drawee branch.
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.
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.
CALL DEPOSIT RECEIPT (CDR):
It is an instrument like Cheque issued by the bank on account of a customer & in
favor of a person, to pay the specified amount. CDRs are issued to make
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payments, especially when a company goes for some tenders or for purchase of
government securities or any contracts with others.
DOCUMENTATION:
The party who requires a CDR will get a printed application from the bank. He will
fill it and it is free of cost to the customer. The bank enjoys the benefit of keeping
funds deposited until the payment is not made.
RUPEES TRAVELER CHEQUE (RTC):
RTC is the traveler cheque are acceptable at all
branches of MCB, and they carry dozens of
benefits. Security is always being an important
issue of concern. TCs provide maximum security
while carrying big amounts.
DOCUMENTATION:
First of all RTC-10 is given to customer. It is filled and then cash is deposited to
cash department. One copy is for office and one copy is given to the customer
and RTC are issued at that time.

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OTHER DEPARTMENTS
There have been some departments in which internship was not allowed,these
departments were
CASH DEPARTMENT
And in TECHNOLOGY DEPARTMENT I got information about ATM and Online
Banking and just filled their forms because ATM work was not allowed to
internees.
CASH DEPARTMENT
The cash department is the most important
department of the bank. In cash department
both deposits and withdrawals go side by side.
This department deals with cash deposits and
payments.
The following books are maintained in the
Cash Department:
Cash Receipt Book
Cash Payment Book
Cash Balance Book
The officers in this department are called teller and there were 2 tellers Mr. Ali
Imran and Mrs. Humaira Parveen at the counter. This department is involved in
two activities:
Cash Deposits
Cash Payments.

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CASH RECEIPT BOOK:
The cashier is responsible to receive both the paying-in-slip and cash from the
depositor. For depositing the cash into customers accounts, there is need to fill in
the paying-in-slip giving the related details of the transaction. The cashier check
the necessary details provided in the paying-in-slip and accounts the cash and
tallies with the amount declared in the slip then 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. The 2
nd
cashier posts the transaction entries in
computer ledger. After posting these entries, computer display before posting
balance and after posting. Cashier assigns the stamp POSTED on the voucher
to show voucher transaction entries are posted.
CASH PAYMENT BOOK:
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. When cheque
is valid in all respects, the cashier enters the necessary inputs in the computer
and posts 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 at the same time maintains the Cash Voucher Received Record
Sheet. Then inspects the signature of the customer, cancellation mark of
checking officer and stamp of POSTED is placed on cheque before he hands
over the cash to customer.
CASH BALANCE BOOK:
At the end of the working day cashier is responsible to maintain the cash balance
book. The cash book contains the date, opening balance, detail of cash payment
and received in figures. 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 = Closing Balance
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TECHNOLOGY DEPARTMENT
It includes;
Mobile Banking
Phone Banking
Online Banking
ATM
MOBILE BANKING:
It has been recently launched and it helps in getting accounts details and making
transactions using mobiles.
PHONE BANKING:
"MCB Phone Banking is available to all customers on a countrywide basis.
Customers can dial 111-000-622(without any city code/prefix) from their
respective cities.
Customers enjoy 24x7 Round the Clock Phone Banking Services. MCB is the
first bank in Pakistan to offer Centralized connectivity.

ONLINE BANKING:
MCB now offers the facility of on-line
banking to its customers through its
country wide network of branches.
Customers can use the ATMs or the
banking counters of any branch for day-to-
day banking needs, irrespective of branch where
they maintain their accounts.
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There are now all the branches linked through this system and they can transact
with each other directly using computer systems and the software named
SYMBOLS at their own branches.
ATM (Automatic Teller Machine):
ATM stands for Automatic Teller Machine. This machine is used to transact in
one's account without intervention of humans. These machines are basically
used for taking cash, confirming balances and requesting statements / cheque
books.MCB has the largest ATM network in the country at
the moment with almost one ATM at each online branch and
also ATM terminals at International Airports covering many
cities of Pakistan
ATMs are operated through a card issued to the valued
customers and by application of Personal Identification
Number (PIN number). Now MCB has also entered into a
contract with Cirrus which is a subsidiary of MasterCard. This contract will
enable an ATM card holder to use his account even when he is out of country at
all the ATMs where Cirrus logo is displayed.
Silver Cards are ordinary cards with a maximum withdrawal facility of Rs.
10,000/- in a day. The annual fee for this card is Rs. 300/- only.
Gold Cards are special cars with maximum withdrawal limit of Rs. 25000/- in a
day. These cards are issued to the persons having more than Rs. 500000/- as
their average balance.
International Cards are issued in collaboration with Cirrus and are useable all
over the world with maximum withdrawal facility according to the standards of
Cirrus.

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FINANCIAL ANALYSIS OF MCB

RATIO ANALYSIS
Ratio analysis is an important and old technique of financial analysis. Ratios are
important and helpful in the reference that:
These simplify the comprehension of financial statement and tell the whole story
of changes in the financial conditions of the business.
These provide data for inter-firm comparison. The ratios highlight the factors
associated with successful and unsuccessful firms, also reveal strong and weak
firms.
These help in planning and forecasting these can assist management in its basic
functions of forecasting, planning, coordination and control.
These help in investment decision in case of investor and lending decision in
case of Bankers etc.
However, the ratios are only indicators, they cannot be taken as final regarding
good or bad financial position of the business other things have also to be seen.
Great care is needed while calculating meaningful ratios and in interpreting them.
Although there are several ratios, which an analyst can employ yet the type of
ratios he would, use entirely depends on the purpose for which the analysis is
done i.e., a creditor would keep him abreast about the ability of a concern to
cover up its current obligations and so would care about current and liquid ratios,
Turnover of receivables, coverage of interest by the level of earnings etc.

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ADVANTAGES OF RATIO ANALYSIS:
It helps to give comprehensive financial statements in evaluating aspects of any
undertaking in respect of financial health, operations efficiency and profitability. It
gives a chance of inter-firm-comparison to measure efficiency and helps
management to resort to some remedial measures. It provides a good help in
decision making for investors and the financial institutions.

CATEGORIES OF RATIO ANALYSIS:
Liquidity ratios
Activity ratios
Debt ratios
Profitability ratios
Market ratios

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LIQUIDITY RATIOS
The liquidity of a firm is measured by its ability to satisfy its short-term obligations
as they come due. Liquidity refers to the solvency of the firms overall financial
position i.e. the ease with which it pays its bills. Due to low or declining liquidity
firm moves towards financial distress and bankruptcy.
Liquidity Measures are:
Current ratio
Quick (acid-test) ratio

CURRENT RATIO:
The current ratio, one of the most commonly cited financial ratios, measure the
firms ability to meet its short-term obligations. It is expressed as follows:
Current assets
Current ratio = Current liability

RESULT:
From the above ratios it is clear that the firms investment in current assets has
increased. In 2011 it is in better position to pay its obligations as they come due.
But in three years we can see that the firm has the ability to pay its current
liabilities efficiently. The standard for this ratio is 2:1 it is calculated by the current
assets by total of the current liabilities.
This ratio is below the standard. The management should take steps to improve
the short- term financial position of the firm.
Years 2013 2012 2011
Current ratio 1.69 1.57 1.62
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DEBT RATIO
The debt position of a firm indicates the amount of other peoples money being
used to generate profits. In general, the financial analyst is most concerned with
long term debts, because these commit the firm to a stream of payment s over
the long run.
The debt ratio measures the proportion of total assets financed by the firms
creditors. The higher this ratio the greater the amount of other people money
being used to generate profit. The ratio is calculated by following formula

Debt ratio = Total liabilities
Total assets

Years 2013 2012 2011
Debt ratios
0.865 0.8475 0.8475

RESULT:
The ratio indicates the more than half of the assets financed by the debt. This
ratio is almost showing the same trend throughout the previous three years. Debt
ratio indicates the greater the risk and more financial leverage it has. It also
shows that firm has paid some portion of the debt during the year 2013.

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MARKET RATIOS

Return on total assets
Return on equity
Earnings per share
RETURN ON TOTAL ASSETS:
It measures the overall effectiveness of management in generating profits with its
available assets. The higher the Return on total assets better will be the
performance.
Earning available for common stockholders
Return on total assets =
Total assets

Year 2013 2012 2011
ROA 2.72% 2.91% 3.18%

RESULT:
The return on investment of the firm is 2.72 % in 2013. It is less than the previous
year. It shows that firm generates Rs.2.72 for each Rs.100 of the investment
which is very poor for the company progress.
RETURN ON EQUITY:
Earning available for common stockholders
Return on total assets =
Total Equity

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Year 2013 2012 2011
ROE (%) 23.09% 24.64% 26.23%

RESULT:
The return on equity of the firm is 23.09% in 2013. It is less than the previous
year. It shows that firm generates Rs.23.09 for each Rs.100 of the investment
made by the partners or shareholders of the company (which are privately owned
by four brothers).
EARNING PER SHARE:

RESULT:
This ratio indicates the amount of income earned by the common stockholders.
Above figures clearly show the progress of the company and it maintains this
ratio more than Rs.20 which is good for the investors.
VERTICAL ANALYSIS:
In vertical analysis each item of a financial statement is presented as a % age of
the total of items or some other suitable items.
HORIZONTAL ANALYSIS:
In vertical analysis each item in financial statement of the last year is considered
as a base of the same items.
Year 2013 2012 2011
EPS 21.24 20.43 19.20
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BALANCE SHEET
AS AT 31 December 2013, 2012, 2011
2013 2012 2011
(Rs. In Million')
(Rs. In
Million')
(Rs. In
'Million')
ASSETS
Cash and balances with treasury
banks 59,946 57,420 53,123
Balances with other banks 1,537 1,192 2,281
Lending to financial institutions 1,225 1,551 955
Investments 449,006 402,069 316,652
Advances 248,243 239,583 225,801
operating fixed assets 28,595 23,738 22,008
deferred tax assets 353 270 727
Other Assets 26,956 40,345 32,414
Total Assets 815,861 766,169 653,233
LIABILITIES
Bills payable 10,139 9,896 9,467
Borrowings from financial
institutions 38,543 78,951 39,100
Deposits and other accounts 632,330 545,061 491,189
Deferred Tax Liabilities 4,554 9,412 18,380
Other liabilities 20,064 21,098 6,295
Total Liabilities 705,630 664,419 564,431
NET ASSETS 110,231 101,750 88,802

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REPRESENTED BY:
Share capital 10,118 9,199 8,362
Reserves 46,601 44,253 42,186
Unappropriated profits 40,552 34,705 28,366
Surplus/ (deficit ) on revaluation of
Asset-net of tax 12,959 13,594 9,887
110,231 101,751 88,802

Income Statement
For the Years 2013, 2012, 2011
2013 2012 2011

Rs. In
'Million'
Rs. In
'Million'
Rs. In
'Million'
Mark-up /return/ intertest earned 65,064 68,356 68,147
Mark-up/ return/ interest expensed (27,196) (27,500) (23,620)
Net Mark-up /return/ intertest income 37,868 40,856 44,526
Provisions & write off 2,888 (291) (4,168)
Net mark-up /interest income after
provisions 40,756 40,565 40,358
Non-mark-up / interest income 11,171 9,153 8,112
Non-mark-up / interest expenses (19,639) (17,665) (16,987)
Profit before taxation 32,288 32,054 31,483
Taxation (10,793) (11,113) (12,058)
Profit after taxation 21,495 20941 19,425

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VERTICAL ANALYSIS
BALANCE SHEET
AS AT 31 December 2013, 2012, 2011
2013 2012 2011
ASSETS % % %
Cash and balances with treasury banks 7 8 8
Balances with other banks 0.2 0.2 0.4
Lending to financial institutions 0.2 0.2 0.2
Investments 55 52 48
Advances 30 31 35
Operating fixed assets 4 3 3
Other Assets 3 5 5
total assets 100.00 100.00 100.00
LIABILITIES
Bills payable 1 1 1
Borrowings from financial institutions 5 10 6
Deposits and other accounts 78 71 75
Sub-ordianted loans - - -
Deferred tax liabilities 1 1 1
Other liabilities 2 3 3
total liabilities 87 86 86
NET ASSETS 14 13 14
REPRESENTED BY:
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Share capital 1 1 1
Reserves 6 6 6
Unappropriated profits 5 4 5
Surplus/ (deficit ) on revaluation of securities 2 2 2
total liabilities & equity 14 13 14

Income Statement
For the Years 2013, 2012, 2011
2013 2012 2011
Mark-up /return/ intertest earned 85 88 89
Mark-up/ return/ interest expensed -36 -35 -31
Net Mark-up /return/ intertest income 50 53 58
Provisions & write off 4 -0 -5
Net mark-up /interest income after provisions 53 52 53
Non-mark-up / interest income 15 12 11
Non-mark-up / interest expenses -26 -23 -22
Profit before taxation 42 41 41
Taxation -14 -14 -16
Profit after taxation 28 27 25

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HORIZONTAL ANALYSIS
BALANCE SHEET
AS AT 31 December 2013, 2012, 2011
2013 2012 2011
ASSETS % % %
Cash and balances with treasury banks 4 8 17
Balances with other banks 29 -48 54
Lending to financial institutions -21 62 -78
Investments 12 27 49
Advances 4 5 -11
Operating fixed assets 20 8 5
Other Assets -35 33 13
total assets 6 17 15
LIABILITIES
Bills payable 2 5 -8
Borrowings from financial institutions -51 102 52
Deposits and other accounts 16 11 14
Sub-ordianted loans - - -
Deferred tax liabilities -56 47 31
Other liabilities -5 15 14
total liabilities 6 18 16
NET ASSETS 8 15 13
REPRESENTED BY:
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Share capital 10 10 10
Reserves 5 5 5
Unappropriated profits 14 23 34
Surplus/ (deficit ) on revaluation of securities -5 37 -1
total liabilities & equity 8 15 13

Income Statement
For the Years 2013, 2012, 2011
2013 2012 2011
Mark-up /return/ intertest earned -5 0 24
Mark-up/ return/ interest expensed -1 16 31
Net Mark-up /return/ intertest income -7 -8 21
Provisions & write off -1093 -93 13
Net mark-up /interest income after provisions 0 1 22
Non-mark-up / interest income 22 13 29
Non-mark-up / interest expenses 9 6 29
Profit before taxation 2 1 20
Taxation -2 -9 29
Profit after taxation 4 6 15

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RESULT ON THE BASIS OF VERTICAL & HORIZONTAL
ANALYSIS:
From the above mentioned analysis following are my Result about the Operations
of branches of MCB for the year 2013;
Cash Dividend increased by 140% than previous year.
The paid up Capital of the Bank grown from Rs.6.2 Billion in 2008 to Rs.
10.1 Billion in 2013.
Companys Total Net Assets in Pakistan has been increased by 7.57%
than 2012.
Gross Advances increased by 2.21% as compared to previous year.
NPLs (Non Performing Loans) decrease by 9%.
Due to uncertain financial conditions in country MCBs borrowing from
financial institutions has been decreased by 51.18 % than year 2012.

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SWOT ANALYSIS
The overall evaluation of a companys strengths, weaknesses, opportunities and
threats
Strengths (S) include internal capabilities, resources and positive situational
factors that may help the company to serve its customers and achieve its
objectives.
Weaknesses include internal limitations and negative situational factors that may
interfere with the companys performance.
Opportunities are favorable factors or trends in the external environment that the
company may be able to exploit to its advantage.
And Threats are unfavorable external factors or trends that may present
challenges to performance.

A scan of the internal and external environment is an important part of the
strategic planning process. The SWOT Analysis provides information that is
helpful in matching the firms resources and capabilities to the competitive
environment in which it operates.

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MCBs SWOT ANALYSIS

STRENGTHS
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.
The joining of experienced people, advanced management, advance setup and
facilities gave MCB an edge over its competitors.

MCB BANKS IMAGE:
MCB is a reputable financial organization and is well known all over the Pakistan.
Perception is of producing a high quality services.
CUSTOMER CARE:
The Bank not only provides high quality services but it also look for the comfort
and convenience of the clients, MCB always preferred their customers.
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MARKET SHARE:
MCB has covered much of the potential market and the net profit is increasing
years after years. Deposits and advances have sufficiently increased.

LARGE NUMBER OF DIVERSIFY PRODUCTS:
This is also its main strength as it has diversified in many products such as:
Debit Card
Visa Card
Car Financing
Agriculture Financing
BRANCH NETWORK
It is the greatest strength of the Bank. In 2004, five more branches were added to
the network and by the end of the March 2014 the total number of branches was
raised from just 1200+. MCB has also planned to open more branches in next
coming years.

SOUND MARKETING:
Skillful marketing of the products is being achieving countrywide goals of MCB
Bank Limited.

PHONE BANKING:
Every account holder can conform its balance on Phone and may ask for any
query. There are also 24 hours help lines for customers.
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MOBILE BANKING:
It has been launched recently. It helps in getting accounts details and making
transactions using mobiles.

HIGHLY AUTOMATED BANK:
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.

FASTER BANKING SERVICE:
MCB have faster banking services that are making it more prominent in the
banking industry especially in operations and Foreign exchange. The customer
prefers this bank not only because of its faster speedy service rather due to
reasonable service charges.

INTERNATIONALLY DESIGNED PRODUCTS:
MCBs products are internationally designed products. These are valuable and
operational in all over the world.

CONTRACT WITH CIRRUS:
Now MCB has also entered into a contract with Cirrus which is a subsidiary of
MasterCard. This contract will enable an ATM card holder to use his account
even when he is out of country at all the ATMs where Cirrus logo is displayed.
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WEAKNESSES

ADVERTISEMENT:
The majority of people are not well aware about the products of MCB. Therefore
it should advertise extensively especially RTC and Master Cards.
ACCOMMODATE BEHAVIORALLY:
A behavior has been noted that bank tries to feel at ease with good looking, rich
and educated people and the poor looking customers feel some bit strange in the
environment of the bank. The bank employees should try to accommodate
behaviorally all type of customers.
MISMANAGEMENT OF TIME:
Mismanagement of time is another big mistake in MCB branches, the bank
official time of closing is 5:30pm but due mismanagement of time allocation and
work the staff is normally on their seats till 7:00 or 8:00 clock.
AND ALSO,
Costly documents are required for loan sanctioning.
Some times bank also never meets stated rate of profit

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OPPORTUNITIES

PRIVATIZATION:
As on December 31, 1998, sixty-eight scheduled banks with 9,106 branches are
operating in Pakistan. As on this date, total population of Pakistan is 184 million.
Total number of personal accounts with all scheduled banks as on December
31,1997, are 28.98 million. If we consider the population statistics of working age
group as on December 31,1997, it stands to the figure of 96.64 million. Thus we
can say those 28% of working age people of Pakistan are having accounts with
banks while 72% are unbanked.
The need of privatization has made people to switch to banks to satisfy their
needs of lending and borrowing. This not only increases the deposits but also the
credit business.
DIVERSIFICATION:
They may enter in New business or any other consumer-durable product in order
to promote their name, by introducing Loan for the students, small businesses,
and handicraft industry and new products for agriculture sector.
SOME MORE OPPORTUNITIES:
Information Technology.
Credit cards can give more earning.
Establishing more foreign Branches.
They should introduce Student Finance Facility.
They should also introduce mobile ATM
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THREATS
CHANGE IN GOVERNMENT POLICIES:
Change in government policies has affected the banking business. Still banks
have to wait to get permission of State Bank. The freezing of foreign currency
accounts is a vital example of letting people not to trust on banks.
COMPETITION:
The Competition has become severe by the entrants of so many banks. So, to
exist one will have to prove himself in its services through excellent management
and will have to satisfy its shareholders. Otherwise he will be out the market.
LOW INVESTMENT:
The decrease purchasing power of consumer in the current economic situation of
the country affecting the business activity speed too much and the result is the
low investment from the investors in new projects can create problem for the
bank because it is working a lot in trade.
STATE BANK REGULATION:
As the Bank introduces unique products so they face problem if State Bank Of
Pakistan employ taxes on them which force them to increase the rate of Interest.
EXPECTATIONS OF THE PEOPLE:
Due to huge competition among those banks and MCB,, people are the basic
beneficiaries from it and thus their expectations tend to increase about the
products and the relative rate of interest thus creating a threat for MCB.
SOME BANKS ARE OFFERING KISAN CARDS.

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PEST ANALYSES
PEST analyses tell How Political, Economical, Social and technological factors
affect MCB. These are the external factors which affects the whole organization.
POLITICAL-LEGAL FACTORS:
Stable government
Stable policies in favor of business
Improved relation with outside world
Law and order.
UNSTABLE GOVERNMENT:
Due to this reason foreigners hesitate to invest their savings in banks, as a result
of economy of our country is going downward and banks suffer.
ADVERSE LAW AND ORDER SITUATION:
The situation of law and order is adverse. The policies are not very handy and
beneficial for the country. The Govt. passes such rules which are not in the
favour of bank e.g. The Govt. of Pakistan has passed a rule that if anyone
deposit more than Rs.25000 then he will be charged 0.30% on deposits.
ECONOMIC FACTORS:
Pakistan's economy is going weaker and weaker. 9/11 has a great influence on
the economic crisis of all over the world. With economic factors the bank
influenced very much that are as under:
Impact of WTO force to cost reduction methodology.
Low interest rate
Inflation
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Low GDP growth
Budget deficit
Increase in Govt. duties
Fluctuation in exchange rates
SOCIAL FACTORS:
Social environment includes family, friends, a person's role and status. An
individuals life directly by society and the person acts according to his or her
society. Cultural environment includes norms, values, religion, conception and
perception.
If we see the religion point of view then interest is not allowed that's why most of
the people hesitate to invest their savings in banks and yet they are not aware of
ISLAMIC BANKING.
Traditional businessmen do not like the business with bank. They pay their
creditors through cash not through cheque. They do not want to get the bank
facilities.
TECHNOLOGICAL FACTORS:
Today is the era of technology. In the every aspect of life technology plays an
important role.
Due to rapid change in technology every bank has to change its
technology to compete other ones.
Increasing issue of securities due to technology resulted
increase in cyber crime. Cyber crime means manipulation. One
person can easily transfer amount from any other's account to
his account.

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APPLICATION OF CLASS ROOM
LEARNING

During my internship of Six weeks in MCB Bank, Ltd. Razabad Branch,
Faisalabad the knowledge given by my respected and devoted teachers proved
to be very helpful in understanding the environment in the organization and
working practically.
Following are some key points about application of my class room learning in the
organization:
The knowledge achieved from the subject Business Communication helped me
in understanding customer dealing i.e. how to deal with them? How to understand
their problems? etc.
It also helped me in understanding the inter Organizational Communication i.e.
circulars, notices etc.
Also the Knowledge which I got from the subject Information Technology in
Business also proved very useful.
Financial Management and Principles of Accounting helped me in understanding
the accounting terminologies which are used in bank e.g. what is debit and credit
vouchers? What are these for? And also in understanding that how entries are
made against certain heads.
I could do this only with the help of the knowledge provided to me in my
semesters of M.B.A (R) 3.5 Years at Institute of Business Management Sciences,
University Of Agriculture Faisalabad.

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WHAT I HAVE LEARNT IN MCB

In MCB Bank Ltd. I really enjoyed working with the staff of Razabad Branch,
Faisalabad having a wish to be employee of MCB. It was almost impossible to
work in all the departments within that limited time. But the staff of the branch
provided me the opportunity to work in the different departments for the sake of
practical knowledge. I feel highly indebted to work in the Razabad Branch with
the manager of that branch Mr. Khizer Farooq Janjua, because I learnt a lot in
that branch.
During my internship training in the MCB as I early mentioned that I have worked
in different departments & seats and learnt the following things:

How to deal with different types of customers
Account opening.
Cheque book issuance.
Outward and Inward clearing.
Cheque for Collection.
Different forms and vouchers filling.
Documentation for granting loans
Experience of working in a well reputed organization.

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SUGGESTIONS & RECOMMENDATIONS

Following are some suggestions for MCB Bank, Ltd.
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.
INCREASED ATMS LOCATIONS:
Some personal sector customers prefer not to come to branch. They increasingly
want to deal with the bank in other ways, such as home banking or use of
Automated Teller Machines (ATMs), which need to be at every branch or some
important shopping plazas and airports etc.
INCREASED SERVICES:
One way to retain the customers is to offer a wide range of services such as tax
advice, free life insurance equivalent to amount deposited, shares portfolio
management, fund management facility, etc., complimentary to the core services.
Banks must have a slightly different mix of services and mean of providing these
such that customers can choose the mix that suits them best.
MANAGEMENT OF TIME:
There should be a good management of time for the sake of employees i.e.
offering them free break hours instead of making them work in this time as well.
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GROWTH SCOPE FOR EMPLOYEES:
MCB should provide greater facilities to its employees, and give them bonuses
for their hard work and Promotions as well.There is a criticism on the banking
management that the salaries of the employees are decreasing in every
succeeding year due to rise of inflation. And I think this will shake the confidence
and working habit of the employees
BANKING PROFESSIONALS:
The bank should hire banking professionals having experience in their respective
fields that will boost the performance of the company as currently MBA (R) 3.5
Years are produced for this field so they should be hired for enhancing the
performance of company.
ATTRACT CUSTOMERS:
The banking company should offer such policies which would attract customers
which are denied by other banking in the market.
JOB ROTATION AND PROMOTIONS:
Most of the bank employees, are sticking to one seat only with the result that they
become master of one particular job and loose their grip on other banking
operation. In my opinion all the employees should have regular job experience all
out-look towards banking. The promotion policy should be adjusted.
COMMUNICATION SYSTEM FOR EMPLOYEES:
As such system should be designed that every employee who has some
problems with his officers can communicate it to the higher management and
some steps must be taken to improve that.

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IF I WERE MANAGER AT MCB BANK

If I would be a manager at MCB Ill take following steps;
I will apply such a communication system specially designed for
employees through they can share the problems regarding work
environment.
Complete working and break hours will be offered so that employees can
work efficiently.
I will make it sure that some of the employees should be sent for training
to other countries and employees from other branches should be brought
here.
I will make promotions, job rotation and bonuses, an important part of
policies of MCB.
At every months closing when employees stay at branch even after
working hours, a dinner from bank will be offered.
To retain potential customers certain services will be provided and let them
know with advertising.
I will make it sure that Working environment, equipment, furniture and staff
dressing should be according to the modern banking style.
I will also provide handsome amount of STIPEND to Internees to fulfill
their transportation expenses during internship.
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REFERENCES & RESOURCES

To make this internship report data is taken from the following resources:
ONLINE RESOURCES:
MCB Bank, Ltd http://www.mcb.com.pk
State Bank of Pakistan http://www.sbp.org.pk
Pakistan Bureau of Statistics http://www.pbs.gov.pk

Interview with key persons at MCB, Razabad Branch, Faisalabad.

Internship Report MCB-Bank LTD

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