INTERNSHIP REPORT

INTERNSHIP AT MCB WAHDAT ROAD BRANCH

(1048)

Muhammad Rehman
B.COM (IT)

INSTITUTE OF ADMINSTRATIVE SCIENCE

UNIVERSITY OF THE PUNJAB

SUBMMITTED TO:

BRANCH OPERATION MANAGER

MR. Muhammad Iqbal Awan
 Preface
Practice makes a man perfect. Theoretical knowledge is
not enough on its own. It is useful when implemented. It is the
requirement of the IAS [MHRM] course Punjab University,
Lahore that all the students of HRM have to spend six or eight
weeks in any organization to get practical exposure and to get
familiarized with the ways to live in any organization environment
which is different from the educational environment. That two
months period called “internship report”.
I have also been assigned to do internship of six weeks period in
Askari Bank, Shalimar Link Road, Lahore . It has enable me to
understand the practical scenario and sharpen our decision making
power and utilizing the resources in an effective manner, so that
our resources maximum profit.
In preparing this report, I have put to all of my best efforts and tired
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.

Acknowledgement
In the name of ALLAH, the most kind and most merciful.
First of all I’m grateful to ALLAH ALMIGHTY, who bestowed me with
health, abilities and guidance to complete the project in a successful
manner, and without HIS help I was unable to perform this task.
More than anybody else, I would like to acknowledge my project
advisor, never ending support and untiring efforts. He was always there
to guide me whenever I felt stuck off and his encouragement always
worked as morale booster for me. I have found him very helpful while
discussing the tricky issues in
this dissertation work.
I would also like to thank Mr. Sajid Majeed (Operations Manager of
Askari Bank) for providing me the opportunity to have an excellent
learning experience during my internship. His critical comments on my
work have certainly made me think of new ideas and techniques.

Table of contents

Executive Summary 01
Objectives 02
 Overview of the Organization 03
 Brief History of the Organization 03
 Development Phase 03
 Nationalization Phase 03
 Privatization Phase 04
 Present Position 05
  Awards & Achievements 06
 Nature of the Organization 07
 Business Volume 09
 Revenue 09
 Deposits 10
 Advances 12
 Investments 13
 Number of Employees 14
 Board of Directors 14
 Key Management 14
 Staff Strength 17
 Management Hierarchy 18
 Product Line 19
 MCB Corporate Financing Products & Services 19
 MCB Retail Banking Products 20
 MCB Investment Services 27
 MCB Agricultural Products 29
 MCB Virtual Banking 32
 MCB Islamic Banking 33
 MCB Privilege 35
 Other Services 35

2 Organizational Structure 37
 Organizational Chart 37
 Mediocre Level Management 38
 Main Offices
 Branches Network 39
 Organizational Structure of the Branch 40
 Departments of Branch 41
 Departments of MCB 49
3. Structure and Functions of the Accounts / Finance
department 56
 Finance & Accounting Operations 56
 The Role of Financial Manager 58
  Financial manager role in cash management 61
 Financial manager role in credit management 62
 Chief Financial Officer (CFO) 64
 Use of Electronic Data in Decision Making 67
 Sources & Generation of Funds 71
 Allocation of Funds 74
4. Critical Analysis of the Theoretical Concepts 82
 Financial Analysis of Balance Sheet 82
 Financial Analysis of Profit & loss Accounts 84
 Ratio Analysis 87
 Graphical Representation of Ratios 90
 Explanation of Financial Ratios 96
 Horizontal Analysis of Balance Sheet 100
 Horizontal Analysis of Profit & Loss Accounts 105
 Vertical Analysis of Balance Sheets 109
 Vertical Analysis of Profit & Loss Account 113
 Organizational Analysis 115
 Future Prospects of the Organization 118
 Weaknesses of the Organization 119
 Conclusion 120
 Recommendations 121
 Annexes 12
 References
Executive summery
Askari Bank is one of the leading banks of Pakistan founded in
October 9, 1991 Askari Bank has made significant contributions
in building and strengthening both corporate and retail banking
sector in Pakistan.

This report is an upshot of my six weeks internship in Muslim

Commercial Bank of Pakistan. Askari Bank of Pakistan possesses
an imperative and historical importance in the banking sector of
Pakistan.
It always remains the center of hustles in business activities. It
always endows with great covenant of rally round in terms of
funds and services at all epochs of its dynamism.

The main purpose of internship is to learn, by working in practical

environment and to apply the knowledge acquired, during the
studies, in a real world scenario in order to tackle the problems. In
this report the detailed analysis of the organization has been done
and all the financial, technical, managerial and strategic aspects
have been evaluated to analyze the current position of the
organization. Along with it, the background analysis, the prevailing
competition analysis, the business process analysis, and the
internal environment and external environment of the organization
have been discussed and the recommendations & suggestions for
the improvement have been made wherever required.

During my six weeks internship program, I mainly worked with the

following departments: GENERAL BANKING, CREDIT and PSX,
These departments have been discussed in detail and all the
policies and procedures have been described thoroughly.
This report will provide a complete and clear image about Muslim
Commercial Bank.
Objectives
This internship offers me an incredible opportunity to gain real-
world experience in
the high-stakes finance industry. The primary objective of the
project is to forecast or
determine the actual financial status and performance of an
organization

Following are important objectives of studying the

organization:
  To learn about Capital Adequacy, Asset and Liability
Management, Interest Rate Risk, Liquidity, Asset Quality &
Profitability of bank.

 To monitor the adequacy and effectiveness of the internal

control system and Financial Reporting Framework.

 Assessment of the company’s financial condition through

the financial statements.

 Analyzing savings and investment trends in banking sector.

 To describe the impact of financial decisions on the health

and functioning of the overall organization.

 To examine the Innovations in customer service in banking.

OVERVIEW OF THE ORGANIZATION

BRIEF HISTORY OF THE ORGANIZATION

The history of Askari Bank can be divided into four main Phases:

 Development phase
 Nationalization phase
 Privatization phase
 Present position of Askari Bank
 DEVLOPMENT PHASE

Askari Bank Limited was incorporated on July 9, 1947, under the

Indian Companies Act, VII of 1913 as a limited company. The bank
was established with a view to provide banking facilities to the
business community of the South Asia. After the
partition of the Indo-Pak subcontinent, the bank moved to Dhaka
(then the capital of former East Pakistan) from where it commenced
business in August 1948. In 1956, the bank transferred its
registered office to Karachi, Where the head office is presently
located. Thus,
the bank inherits a 64 years legacy of trust of its customers and the
citizens of Pakistan. MCB Bank is not an overnight success story.
It started with a share capital of Rs 30 million which is divided into
3 million ordinary shares of Rs 10 each.

NATIONALIZATION PHASE
The 1960s decade is stated as the golden era in Pakistan’s
economic and financial development. The banking sector also
registered noticeable growth during that period and lent a strong
helping hand to the government to achieve rapid economic growth
of the country. But in early 1970s this scenario changed
altogether.
The separation of East Pakistan (now Bangladesh) and induction
of the government led by Zulfiqar Ali Bhutto were the most
significant events of early 70s having far reaching effects on the
banking system.
In the wake of rapidly changing conditions of the country, the
government decided to nationalize all the commercial banks so
that the nation as a whole can benefit from a better use of
resources. Consequently, the Muslim Commercial Bank was
nationalized under the
Banks (Nationalization) Act, 1974 promulgated on January 1,
1974.
In the banking sector, the then government decided to retain only
five major banks by merging all the smaller banks with the large
ones. As a result of this policy, the Premier Bank was merged into
Muslim Commercial Bank in 1974.

PRIVITIZATION PHASE
This was the first bank to be privatized in 1991 and the bank was
purchased by a consortium of Pakistani corporate groups led by
Nishat Group.
The banks after nationalization came under political and
bureaucratic control and deviated from normal banking practices.
Some of their senior executives were tempted to nurture a
culture of obliging big businessmen, feudal and political influential.

They sacrificed their personal integrity and interest of banking

sector for gaining promotion and accumulating personal wealth.
That is how banking sector started losing its upright and
professional institutional image from mid-80s and its downward
slide started which touched new low during 1990s.
The then PML government also became conscious of the falling
standard of the banking sector and decided to privatize all the
commercial banks.
Banks (Nationalization) (Second Amendment) Ordinance 1991
was also promulgated to pave the way for privatization of banks in
Pakistan.
In the wake of above amendments, 26% shares valuing Rs. 149.8
millions of the Muslim Commercial Bank, held by the State Bank
of Pakistan were sold and the Bank’s management was
transferred to the purchasers of these 26% shares.

Mian Mohammad Mansha is the Chairman of the MCB and has

played instrumental role in its success.

PRESENT POSITION OF MCB

MCB has significant contributions in building & strengthening both
corporate and retail banking sector in Pakistan. MCB Bank Ltd in
2016 delivered a profit before tax of Rs. 23.2 Billion registering a
growth of 6% over last year. This growth is directly attributable to
an increase of 14% in CASA deposits, 21% in revenues and a
tight control on expense base enabling to retain position as one of
the most profitable banks in the country.

In 2016, MCB delivered a superior return on equity of 27.4% and

assets crossed the Rs. 500 Billion mark. This performance is all
the more remarkable keeping in view the economic & political
challenges faced by the country during this past year and
miscreant created issues that MCB specifically grappled with for a
large part of the year.
MCB fundamental belief is that a financial services company can
only succeed if it meets its customers’ needs. If they can
understand customer’s financial objectives and offer them the
right products and services so that they can be financially
successful, then MCB Bank will continue to build on
its leadership position and provide requisite returns to its
shareholders.
During 2016, MCB took several initiatives that brought even
closer to their customers. With the launch of MCB
Privilege, MCB became the first local bank to offer a dedicated
proposition for the affluent segment; to meet the growth and
protection needs of customers, we introduced Bancassurance
and Investment Products in many of our branches; to enhance
transactional convenience for customers, MCB became the first
Pakistani bank to launch mobile banking.

These coupled with several other initiatives enabled us to

continue on the path of growing customer base and profitability.
Last year, to expand and reach customer proposition, MCB also
reached an agreement with RBS Pakistan to acquire their
business. Unfortunately, the deal did not go through but bank
continue to invest organically to further strengthenbusinesses.

AWARDS & ACHIEVEMENTS

2013 The Asset: Best Domestic Bank in Pakistan
2012 NFEH: CSR Business excellence award “best media
coverage”
2010 MMT Award: World’s Best Mobile Money Transfer Bank
2009 Asiamoney: Best Domestic Bank in Pakistan
2009 The Asset: Best Domestic Bank in Pakistan
2008 Euromoney: Best Bank in Asia
2008 Euromoney: Best Bank in Pakistan
2008 Asiamoney: Best Domestic Bank in Pakistan
2006 Asiamoney: Best Domestic Bank in Pakistan
2006 Euromoney: Best Bank in Pakistan
2005 Asiamoney: Best Domestic Bank in Pakistan
2005 Euromoney: Best Bank in Pakistan
2004 Euromoney: Best Bank in Pakistan
2004 Asiamoney: Best Domestic Bank in Pakistan
2003 Euromoney: Best Bank in Pakistan
2001 Euromoney: Best Bank in Pakistan
2000 Euromoney: Best Bank in Pakistan

NATURE OF THE ORGANIZATION

MCB Bank Limited is a banking company incorporated in Pakistan
and is engaged in commercial banking and related services. The
Bank’s ordinary shares are listed on all the stock exchanges in
Pakistan whereas it’s Global Depository Receipts (GDRs)
representing two ordinary shares are traded on the International
Order Book (IOB) system of the London Stock Exchange.
MCB Bank Limited is a Pakistan-based company.

The Bank operates in four business segments:

 Corporate finance
 Trading and sales
 Retail and consumer banking
 Commercial banking

CORPORATE FINANCE
Corporate finance includes underwriting, securitization,
investment banking, syndications;initial public offerings (IPO)
related activities (excluding investments) and secondary
private placements.
TRADING & SALES
Trading & sales segment includes fixed income, equity, foreign
exchange commodities, lending’s to financial institutions and
brokerage debt.

RETAIL & CONSUMER BANKING

Retail & consumer banking includes retail lending and deposits,
banking services, private lending and deposits, banking services
and retail offered to its retail customers and small and medium
enterprises.
 COMMERCIAL BANKING
Commercial banking segment includes project finance, export
finance, trade finance, leasing, lending, guarantees and bills of
exchange relating to its corporate customers.

MCB is one of the leading banks of Pakistan. Its deposit base of

Rs. 368 Billion and total assets over Rs.500 Billion.
MCB soon earned the reputation of a solid and conservative
financial institution managed by expatriate executives. In 1974,

MCB was nationalized along with all other private sector banks.
The Bank has a customer base of approximately 4
million, a nationwide distribution network of over 1,000 branches
and over 450 ATMs in the market During the last fifteen years, the
Bank has concentrated on growth through improving service
quality, investment in technology and people, utilizing its
extensive branch network, developing a large and stable deposit
base.

Business volume
Business volume in terms of Deposit, Advances and Revenue
investments for the last five year as under:

Revenue:
Particulars 2016 2015 2014 2013

-----------Rupees in 000--------------
51,616,007 40,043,824 31,786,595 25,778,061
Mark-up / return
/
interest earned
Fee, commission 3,331,856 2,953,394 2,634,610 2,311,235
and
brokerage
Income
Dividend 459,741 617,554 632,300 811,801

Income from 341,402 727,564 693,408 692,010

dealing
in foreign
Currencies
Gain on sale of 773,768 740,429 1,500,865 605,865
securities
Other income 736,118 855,697 567,213 570,505

Total Revenue 57,258,892 45,938,462 37,814,991 30,769,477

NUMBER OF EMPLOYEES
BOARD OF DIRECTORS
Mian Mohammad Mansha Chairman
S. M. Muneer Vice Chairman
Mr.Tariq Rafi Director
MR. Shahzad Saleem Director
Mr. Sarmad Amin Director
Dr. Muhammad Yaqub Director
Dato’ Mohammed Hussein Director
Mian Raza Mansha Director
Aftab Ahmad Khan Director
Mian Umer Mansha Director
Mr. M. Ali Zeb Director
Dato’ Seri Ismail Shahudin Director
Mr.M.U.A. Usmani (President / CEO)

KEY MANAGEMENT
Audit Committee Members

Tariq Rafi – Chairman

Dr. Muhammad Yaqub
Dato’ Mohammed Hussein
Aftab Ahmad Khan
Muhammad Ali Zeb
Malik Abdul Waheed

Human Resource Committee Members

Mian Mohammad Mansha Chairman
Dr. Muhammad Yaqub
Mian Raza Mansha
MR. Shahzad Saleem
Mr. M.U.A. Usmani

Risk Management and Portfolio Review Committee

Members

Mian Umer Mansha Chairman

Mr. Tariq Rafi
Mr. Sarmad Amin
Mian Raza Mansha
Mr. Shahzad Saleem

Business Strategy and Development Committee

Members

Mian Mohammad Mansha Chairman

Mian Raza Mansha
S. M. Muneer
Mian Umer Mansha
Dr. Muhammad Yaqub
Mr. M.U.A. Umani
Dato' Mohammed Hussein
Committee on Physical Planning, IT
Systems and Contingency Arrangements
Members
Mr. Sarmad Amin Chairman
Mian Raza Mansha
Mr. Tariq Rafi
S. M. Muneer
Mr. M.U.A. Umani
SBP Report Compliance Monitoring
Committee Members
Dr. Muhammad Yaqub
Mr. Aftab Ahmad Khan
Mr. M.U.A. Umani
Chief Financial Officer
Mr. Salman Zafar Siddiqi

Company Secretary
Mr. Abdus S. Sami
Auditors
KPMG Taseer Hadi & Co.
Chartered Accountants
Legal Advisors
Khalid Anwer & Co.
Advocates & Legal Consultants
STAFF STRENGHTH
2016 2015 2014 2013

Number of 9397 10160 9721 9011

permanent
employees
HIERARCHY OF MANAGEMENT
SEVP

ESEVP

SVP

VP

AVP

Grade - 1

Grade - 2

Grade - 3
Assistant

Clerical Staff Non- Clerical Staff

Cashier Messenger

Technical Staff Dispatch Rider

 PRODUCT & SERVICES
MCB CORPORATE FINANCING
MCB Corporate Financing provides access to diversified financing
options, including working capital loans, term loans, trade finance
services and investment banking.
 Working Capital Loans

Based on the customer’s specific needs, the Corporate Bank

offers a number of different working capital financing facilities
including Running Finance, Cash Finance, Export Refinance, Pre-
shipment and Post- shipment etc. Tailor- made solutions are
developed keeping in view the unique requirements of your
business.
 Term Loans
MCB offers Short to Medium Term Finance to meet capital
expenditure and short term working capital requirements of our
customers. The loans are structured on the basis of underlying
project characteristics and cash flows of the business.

 Trade Finance Services

Under Corporate Banking MCB offers trade finance services that

include an entire range of import and export activities including
issuing Letters of Credit (L/Cs), purchasing export documents,
providing guarantees and other support services.
 Cash Management
Cash Management provides a wide range of value added
services to large corporations through its vast network of online
branches. Our structured and customized products enable
our customers to realize their sales proceeds swiftly from all over
the country, supported by real-time MIS.

 Transaction Banking Division

Transaction Banking provides wide range of value added services

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

The basic products offered by Transaction Banking Division are

as under:
 Collections
 Payments
 Channel Financing
 Local Rupee Drawing Arrangement
 Home Remittances

MCB RETAIL BANKING

DEPOSIT ACCOUNTS

 Current Account

MCB Bank offers a variety of current accounts to cater to the

everyday transactional needs of various customers. These
accounts ensure ease and freedom to bank from any of the 1,100
branches across the country. The different accounts include: the
basic account that has no minimum balance; Business Account
offering free online transactions, Demand Drafts, Pay Orders and
lots more to meet the day to day business requirements; Current
Life Account which offers the security of life insurance free of
cost; and for all the others the conventional Current Account.
  Savings Account

It offers a wide array of savings products that suit short term

growth & transactional needs. Our savings accounts offer
attractive profit rates as well as flexibility to transact. Savings Xtra
is targeted for customers having Rs. 5 million deposit, 365 Gold
offers profit rate on daily balance while PLS savings has a lower
minimum balance requirement. In addition, a unique product:
Smart Savings is an account run solely via a debit cart, offering a
very competitive rate to small savers.

 Foreign Currency Account

Enjoy the confidence of operating an international account,

locally. MCB Foreign Currency Account offers the option of
earning attractive returns on your Foreign Currency Investment.

 Saving 365 Gold

MCB Savings 365 Gold Account offers you a wide range of

attractive profit rates. The MCB Saving 365 calculates profits on a
daily product basis and gives you the facility of unlimited
withdrawals.

 Smart Dollar Account

MCB Smart Dollar Account is a sensible way to maintain or grow

your US Dollar deposit across USD Current, Savings or Term
Deposits.
  Special Term Deposits

With a wide range of choices and tenors, you can open one or
more term deposit accounts that best suit your current or long
term needs MCB Term Deposits offer attractive short to mid-term
investment options with flexibility, convenience and security. With
various tenor options available customers can choose one that
suits their needs. This is combined with different profit payout
options and the added facility of being able to avail credit facility
against their deposits.

 Business Accounts

MCB Business Account lets you build your business through the
accrued savings from discounted transaction fees, and more

 Saving Xtra Account

MCB Savings Xtra Account offers you a wide range of attractive

profit rates. Grow with MCB Xtra by saving more and earning
greater profit.

 Current Life Account

The coverage you need for the life you lead. MCB Current Life
gives you the peace of mind of comprehensive life insurance in a
current account and fits right into your lifestyle

 Mahana Khushali Bachat

MCB Monthly Khushali Scheme provides you with a steady

income every month. Just purchase a Monthly Khushali
Certificate and you will enjoy a steady income of your total
deposit every month. Terms deposit.
 MCB BANCASSURANCE
Combining the best of banking and insurance solutions, MCB
Bancassurance has created a one-stop shop for all your financial
and insurance needs. Whether you want to save for your child’s
education or marriage, for the security of dignity after retirement
or gaining maximum return on savings, MCB Bancassurance has
a plan just for you.
 FlexiLife
 LifePartner
 EduCare
 DreamWedding
 CapitalSure
 RetireEasy
 IncomeMax
 FutureAssure
 ProtectionPlan

MCB’S REMITTANCE

Fast, secure and easy-to-use, MCB's Remittance Services is an

efficient way to transfer money overseas. You can remit funds
from any country to Pakistan through Swift System.
MCB Home Remittance provides a seamless inflow of foreign
remittances credited in the beneficiary’s account within minutes.
Cash payments can also be made at our designated branches on
behalf of Xpress money, Samba (Speed cash now) and
MoneyGram, along with cash payments from other
correspondents all over the world.
 MCB LOAN PRODUCTS
 Car4U

MCB Car4U not only gets a car of your own choice but is also
affordable with competitive mark-up, flexible conditions, easy
processing and above all, no hidden costs.

 Business Sarmaya

Good cash flow is the key to any successful business. MCB

Business Sarmaya offers running finance facility against your
house/ flat, insuring a steady cash flow for your business.

 Pyara Ghar

MCB Pyara Ghar is an ideal Home Finance from your own bank
that lets you Purchase, Renovate or Construct your home the way
you have always wanted. Having your own home was never so
easy

 Easy Personal Loan

MCB Easy Personal Loan provides you with the financial

advantage to do things you've always wanted to but never had
the sufficient funds for. Take that much-needed holiday. Buy a
car. Refurnish your house. Purchase a new TV. Finance a better
education for your children.

 Instant Finance

With MCB instant Finance get a loan instantly at any MCB branch
against liquid collateral at competitive pricing.
 MCB RUPEE TRAVELERS CHEQUE

It is a safe and secure way to make payments nationwide. MCB

Rupee Travelers Cheque, being the market leader, is the most
widely accepted way to pay cash for travel-related purposes MCB
Rupee Traveler's Cheques were first introduced in 1993 as safe
cash for traveling and travel related purposes.

MCB ONLINE SERVICES

 ATMs

MCB has one of the nation's largest ATM networks with over 450
ATMs and still growing.
MCB ATMs give you 24-hours convenience of cash withdrawal,
mini-statement, utility bill payment, funds transfer services and
much more. With MCB Mobile ATM not only do we provide you
with world class banking service but we also provide
convenience. Our innovative mobile ATMs ensure that you are
given service close to you.
  Call Center( 000 111 622)
The state of the art MCB call center is the right choice to keep you
in step with your ever hectic schedule by providing you services
relating to your account and Smart card at any point in time.
There’s no easier way to bank than the new enhanced 24/7 MCB
Call Center, which blends innovation and convenience to provide
Banking Services that go beyond expectations. With MCB Call
Centre you can maintain your VISA credit & ATM/Debit cards,
check your account balances, confirm last 5 transactions, pay
utility & mobile phone bills, top-up your mobile, pay MCB Visa
Credit Card bill from your MCB account, transfer money within
your own accounts in MCB and register complaint.

 Mobile Banking
At the forefront of technological excellence, MCB proudly
introduces MCB MOBILE BANKING. MCB Mobile is a quick easy
and secure way to recharge mobile phones,transfer money, pay
bills and do much more. No need to visit a branch or an ATM
anymore, login to www.mcbmobile.com using your mobile phone
and start transacting.

 Bill Payments
MCB easy bill pay offers unmatched convenience to pay your
utility and mobile phone bills or re-charge your prepaid mobile
phone accounts anywhere, anytime with security and peace
of mind. MCB is the only bank that offers you 3 convenient
options of making bill payments to PTCL, SSGC, SNGPL, KESC,
Mobilink, Supernet, IESCO,HESCO, and Ufone. So, save your
precious time by avoiding long queues and pay your bills through
MCB Easy Bill Pay.
  Online Banking
MCB has a fast growing network of over 1,100 online branches in
the country providing customers real time online transaction
facilities.

MCB CARDS
 Smart Card
MCB Smart Card is the key that enables access to convenient
banking services. Smart Card allows you to manage your
account, withdraw cash, transfer funds, pay utility and mobile
bills, recharge prepaid connections, register for mobile and
internet banking services and much more. The convenience and
flexibility of MCB SmartCard will help you live a smarter life. It not
only helps you manage your expenses, but also eliminates undue
interest on your day to day credit card transactions. Your balance
is always within your reach and you spend accordingly.
MCB now brings MCB SmartCard -a secure and convenient
instrument of payment with unmatched functionalities. It provides
24-hour direct access to your bank account.

 Debit Card
Now MCB brings a secure, convenient and quick payment facility
that enables you to do purchasing by using your existing MCB
ATM / MCB Smart Card as a DEBIT CARD.

 Visa Credit Card

MCB offers a complete suite of Classic, Gold and Platinum Visa
Credit Cards focusing on providing, superior service, travel
privileges & shopping pleasure. It also offers comprehensive
insurance & installment plans, reward points and SMS alerts that
give a different feel to the world of Credit Cards. These unique
features include i-revolve, which makes variable mark-up rate
available to customers allowing them to repay at affordable
rates.
 MCB INVESTMENT BANKING
Make the most of your wealth with investment opportunities that
match your unique financial aspirations. MCB Investment
Services offer distribution of mutual funds managed by the
leading fund managers of Pakistan. We can suggest the products
most suited for your needs, or work with you to create a
personalized solution completely focused on your expectations of
the capital markets MCB goal is to provide best financial
solutions to client helping them achieving their objectives and
support economic growth of the Country.
The basic services offered by investment banking are
as under:
 Project & Structured Finance
Involves financing complex projects, usually in an SPV structure,
where the loan is tightly structured around the cash flows, risks
are allocated amongst various stakeholders, and there is limited
or no recourse to the sponsors.
 Syndicated Loans and Debt Capital Markets
It involves structuring/advisory arrangement, underwriting and
placement services for significant financing requirements by large
corporate and institutional clients to other financial institutions or
through the debt capital markets.
 Quasi Equity/Hybrid Instruments
It structures and places a category of debt that has some
characteristics of equity such as being unsecured, subordinated
or with a potential equity upside.
  Equity Capital Raising
Equity Services relate to raising capital for clients by offering
common or preferred equity to public or private investors, through
initial public offers, offers for sale, rights issues and private equity
placements.
 Advisory Services

Financial and Capital Raising Advisory provides clients with

financial advisory services, commercial structuring support and
access to capital resources to help companies successfully
finance their business/project.

 Facility Administration
Management of creditor interests in syndicated transactions in
capacities such as facility agent, security trustee, project
monitoring bank, book-runner etc.

 Commercial Banking
Complementary products and services such as revolving lines of
credit, trade services and cash management that may be bundled
with our Investment Banking Products.

 MCB AGRICULTURE PRODUCTS

MCB has been providing finance to the agriculture sector since
1973. With the help of our vast branch network, specialized staff
posted in the branches, multiple and diversified product range, we
cater to the financing requirements of the farming communi
spread throughout the country and facilitate in achieving
increased productivity.
  Shadabi Plan

Shadabi Plan caters the financing needs for production activities

on the farm which mainly include seed, pesticides and fertilizers
along with provisions for miscellaneous expenses like
payment of electricity & diesel bills of tubewells, maintenance
expenses for tractors and the like items as per list of Eligible
items.
 Khushali Scheme

Under Khushali Scheme loans/finances are allowed for farm/ non-

farm credits which include fixed investments/working capital
requirements. Amount of finances sanctioned depend upon the
credit requirement and collateral.
Financing for land leveling/development, heavy equipments,
agriculture machinery, vehicles/transport for agri purpose are
covered under this scheme. There may be other development
projects proposed by the farmers falling with in the ambit of agri
financing, which can be considered under this scheme.
 Tractor Finance Scheme
To boost up the mechanized farming in the country, Tractor
Finance Scheme is introduced to offer specialized services to
farmers. Under this scheme, there is no requirement of
minimum land holding because of multipurpose use of tractor for
agriculture cumcommercial. However, the repayment capacity
and potential use of tractor will be evaluated at the time of loan
processing

 Aabiari Scheme
Under the Aabiari scheme, financing facilities for tube well, other
wells, irrigation systems of all types including sprinklers are
covered. The purpose is to facilitate the farmers in overcoming
the shortage of water for cultivation/plantation since water is
essential requirement for crops.

 Grower Finance
Grower Finance is a unique way of financing registered/(bonafide)
growers/farmers of sugarcane, cotton and rice(mills). The special
characteristic is that the financing facilities are extended to
farmers against the Mill/Factory guarantee. Fixed/floating charge
may be created on the Mill's assets and the loan is disbursed
directly to the growers. This finance is short term in nature but the
tenure may extend to eighteen months in case of growers of
sugarcane.
 Dairy & Meat Plan

The plan is aimed at promoting the Dairy sector & meat

production in the country. The farmers are extended financing
facilities to purchase dairy animals for milk and for the
establishment of animal fattening stations to increase meat
production on commercial line, thus enabling the farmer to create
more income.
 Murghbani Scheme
Murghbani Scheme covers extensively all requirements of the
poultry industry with focus on facilitating the farmers. We offer
financing facilities of all types of activities in the value chain
starting from establishment of poultry farms infrastructure to all
requirements in the process till the final out put including
marketing of the same by the farmers. Value addition
process by the farmers for poultry processing is also covered
under the scheme.
 Baghbani
The scheme aims at facilitating the farmers engaged in
horticulture by extending credit facilities covering the entire range
of related activities. The proposals are assessed keeping in view
the market potential and repayment capacity based on the cash
flows of the activity.
The farmers are extended all type of credit facilities required to
produce fruits & vegetablesof better quality. The repayment of the
loan is as per farmer convenience or linked to crop cycle and
timings of cash flows. Facilities like running finance, working
capital requirements, infrastructure development, machinery &
equipment, irrigation etc are all covered under this scheme.
Progressive farmers are specially encouraged
 Mahigeri Scheme
Mahigeri Scheme caters to the credit needs of fish farmers
covering entire range of activities including marketing of their
produce. The loans are of short, medium and long term
depending upon the purpose. Financing for value addition
process by the fish farmers is also covered under the scheme.

VIRTUAL BANKING
MCB provides the convenience of banking via internet, whether at
home, office or on travel, log on to www.mcb.com.pk and enjoy 24
hour access to all your accounts at MCB for great number of
services such as Funds Transfer, Utility Bill Payments, Mobile
Top-ups and much more.
 Detailed Account Summary of all listed accounts.
 Mini-statements of each of the listed accounts showing
recent transaction history for that account(s).
 Statement-by-Period of each of the listed accounts, based
on the period specified.
 Immediate or Scheduled Transfer of Funds between your
own accounts, as well as to third-party accounts setup as
beneficiaries, maintaining accounts with MCB.
 Scheduling of ‘One-Time’ as well as ‘Recurring’ Funds
Transfers.
  Payment of utility bills for registered Utility Companies.
 Immediate or Scheduled Bills Payment. Scheduling of ‘One-
Time’ as well as ‘Recurring’ bill payments. Option for ‘Full’ or
‘Partial’
 payment based on the payment conditions specified by a
particular
 Utility Company.
 Bulk Salary Transfer for Corporate Customers, to facilitate
them in paying salary to the corporate employees, who
maintain accounts with MCB.
 Bulk Funds Transfer for Corporate Customers.
 Cheque Book Request for any of your listed accounts.
 Payment/Transfer Alerts for reminding, in advance, prior to
the processing of specified payments and transfers.
 Personal Alerts for reminding of pre-specified events and
occasions.
ISLAMIC BANKING
With the help of Shariah specialists, lawyers and professional
commercial bankers, MCB Islamic Banking provides Riba Free
and Shariah Compliant solutions to various customer segments in
a growing number of cities.

Deposit Schemes
For customers who are looking for a deposit opportunity where
they can purse their funds and reap halal returns on it, MCB offer
the following products:
Al-Makhraj Saving Account
Al-Makhraj Ianat Account
Al-Makhraj Term Deposit

Fund Based Facilities

MCB offers 3 broad Islamic fund based facilities:
Ijarah
Murabahah
 Diminishing Musharika Equipment
Ijarah Products
MCB’s Islamic Ijarah, analogous to the English term 'leasing’, is
based on the ‘Ijarah wa Iqtina’ concept which means the sale of
the asset to the lessee after the Ijarah has matured.
Under this scheme, MCB will be the owner of the asset, and the
customer (lessee) will be given the asset to use for a certain
period of time in return for monthly rental payments.

MCB will give a separate unilateral undertaking that it will offer to

sell the asset to the customer (lessee) at the maturity of the Ijarah
agreement at a price that may be equal to the security deposit
amount, hence the term ‘Wa Iqtina’
Types of Ijarah

 Car Ijarah
 Equipment Ijarah

Murabahah
It is a contract between a buyer and a seller under which the later
first purchases the goods at the request of the former i.e.,
customer and then sells it to same customer
after adding profit.
Murabah Sale Price = Cost + Expenses incurred + Agreed Profit

Musharika Equipment
It is a contract through which the bank and its client participate in
the joint ownership of a property. The share of the Bank is further
divided into a number of units and it is agreed that the client will
purchase the bank’s share periodically, thus increasing his own
share until all the units of the bank are purchased by him so as to
make the client the sole owner of the property.

PRIVILEGE BANKING
A first from a local bank, MCB Privilege through its dedicated,
world class Privilege Centers offers a higher level of personalized
services, more rewarding in-branch experiences and a wide array
of deposit and investment products that are tailored to meet the
financial expectations for affluent clientele. As members of MCB
Privilege, customers experience unparalleled advantages that put
them ahead of others. MCB’s dedicated Privilege Centers a wait
to welcome you in Karachi, Lahore, Islamabad and Multan, with
plans to expand to more locations.

OTHER SERVICES
MCB MNET
MNET is an electronic inter-bank connectivity platform for online
transactions on ATM and other remote banking channels. It offers
other Value Added Services that include a portfolio of e-banking
and payment system products as well as management and day-
to-day operations of the same. Members include 10 local and
foreign financial institutions enjoying ATM sharing and Value
Added Services.

MCB Salary Club

A payroll solution designed to make life easy; it simplifies all the
monthly payroll related banking needs of employers and opens
the door to a world of special offers for employees.
Salary Club provides the convenience of having an extensive
range of financial services available to employees at their place of
work.
MCB Lockers
MCB Lockers are the best protection for your valuables. Lockers
of different capacities are available nationwide.

MCB SMS Banking

Banking at your fingertips SMS anytime to get information regarding
balance, mini statements and credit card related information once your
card is linked.

MCB Full Day Banking

Enjoy the convenience of extended banking hours from 9am to
5pm, including Saturdays at MCB FULL Day Banking branches
across the country.

MEDIOCRE LEVEL MANGEMENT

The organization chart within a department and in different offices
as follows:
Divisional Heads ………..…………………… Head Office
Regional Head (EVP) ………..……………… Regional Office
Zonal Head (VP) ………..…………………… Zonal Office
Branch Manager ………..…………………… Branch (VP, AVP,
GRADE 1, 2, 3)

MAIN OFFICES

Registered Office
MCB Building, F-6/G-6, Jinnah Avenue, Islamabad.

Principal Office
MCB 15 Main Gulberg, Lahore.
 UAN: (042) 111-000-111
PABX: (042) 36041998-9
Website: www.mcb.com.pk
Email: [email protected]

Shares Registrar
M/s. THK Associates (Pvt.) Ltd., State Life Building No.3,
Dr. Ziauddin Ahmed Road, Karachi

Corporate Office

MCB House, Jail Road, Lahore

ORGANIZATIONAL STRUCTURE OF THE BRANCH

A well-developed and properly coordinate structure is an
important requirement for the success of any organization. It
provides the basic framework within which functions and
procedures are performed. Any organization needs a structure,
which provides a framework for successful operations. The
operation of an organization involves a number of activities,
which are related to decision making, and communication of these
decisions. These activities must be well coordinated so that the
goals of the organization are achieved successfully

DEPARTMENTS OF WAHDAT ROAD BRANCH

LAHORE (1048)
The departments are as under
 General Banking Department
 Clearing Department
 Remittance Department
 Credit Department
 Accounts Department
 Foreign Trade
 Internal Control Department
CLEARING DEPARTMENT
Clearing means collection of cheques receive from our customers
but drawn on other banks. Receiving the instruments deposited
by customers Posting the amount of instruments in credit of
customer’s account If cheque returns from the concerned bank,
the customer account is debited. Crossing stamp is put on the
instrument and slip given to customer on receipt of the instrument.
Clearing stamp and “payee account credited” are put on the
instrument and the voucher. Clearing House has provided this
facility. Clearing house facilitates different banks, in one city, to
get their cheques drawn upon other banks to be
cleared.
Cheques lodged in clearing constitute in clearing constitute two
types of clearing:

 Outward Clearing
 Inward Clearing

Outward Clearing
When cheques, TC’s and other negotiable instruments drawn
upon other banks like NBP, ABN AMRO of the same city (as
Lahore) are presented in Muslim Commercial bank to deposit
them in the respective payee’s accounts, these instruments are
lodged in outward clearing (o/w clg) of MCB bank.

Procedure of Outward Clearing

• The name of the branch appears on its face where it is drawn
• It should not stale or post - dated or without date.
• Amount in words and figures does not differ.
• Signature of the drawer appears on the face of the instrument.
• Instrument is not mutilated.
• There should be no material alteration, if so, it should be
properly authenticated.
• If order instrument suitably indorsed and the last endorsee’s
account being credited.
• Endorsement is in accordance with the crossing if any.
• The amount of the instrument is same as mentioned on the
paying-in-slip and
counterfoil.
• The title of the account on the paying-in-slip is that of payee or
endorsee (with the exception of bearer cheque).
• If an instrument received other than MCB of Pakistan then
special crossing stamp is affixed across the face of the
instrument. Clearing stamp is affixed on the face of the
instruments, paying-in-slip and counterfoil (The stamp is affixed in
such a manner that half appears on counterfoil and paying-in-
slip).
The instrument is suitablydischarged, where a bearer cheque
does not require any discharge and also an instrument in favor a
bank not need be discharged.

Return Outward Clearing

o Over writing
o No stamp of clearing or if it is not clear
o No stamp of crossing or if it is not clear

Inward Clearing
Inward clearing means cheques drawn on us and presented by
other banks. In inward clearing Branch acts as paying banker.
After realization of inward clearing, banks deposits are decreased
as bank makes payment to other banks from the balances held by
the branch. This realization of inward clearing is also referred to
as responding to the clearing. Cheques and other negotiable
instruments instruments (PO, DD, PS, CDR etc.) drawn on
Muslim bank, sent by other banks, constitute the inward clearing
of MCB.
Procedure of Inward Clearing
Instruments with schedules are received from NIFT.
 Amount of each instrument entered is in inward clearing
register.
 Instruments are detached and handed over to the deposits
and other respective department for checking and payment.
 In case of any instrument is returned, return memo is
prepared stating the reason of the return.
 Entry is made in cheques Return register.
 Cheques return charges are recovered from the party as per
charges schedule.
Checking / Return of Instruments
o Over writing
o No stamp of clearing or if it is not clear
o No stamp of crossing or if it is not clear

REMITTANCE DEPARTMENT
The Remittance department deals with the transfer of money from
one place to another. Funds transfer facility or remittance of funds
is one of the key functions of the banks all over the world.
Remittances through banking channels save time, costs less and
eliminate the risks involved in physical transportation of money
from one place to another. Muslim Commercial Bank of Pakistan
transfers money in the following ways.
 Pay Order
 Demand Draft
 Mail Transfer
 Telegraphic Transfer
 Pay Slip
 Call Deposit Receipt
 Letter of Credit
 Traveler’s Cheque
 Demand Draft
It is used for payment made outside the city. It is write on the
name of head office. Accounting entry by drawing branch. When
the customer purchases a draft, the drawing branch sends the
advice (a copy of DD) to the drawee branch and the original copy
of DD is given to the purchaser. On the arrival of advice the
drawee branch debits HO account and credits the DD payable
account. When the customer comes with the original DD to the
drawee branch, his account is credited by debiting the DD
payable account. Charges Commission 50/- but if amount
increase or decrease then it will also increase or
decrease and FED 8/- also increase or decrease.

Pay Order
Payment Orders are issued for the money transfer with in the city.
Pay order is made for local transfer of money. Pay order is the
most convenient, simple and secure way of transfer of money.
Mail Transfer
A Mail Transfer is a form of remittance in which the amount
remitted by a customer or a non-customer is directly credited to
the account of the beneficiary with another branch.
Move your money safely and quickly using MCB Mail Transfer
service. And MCB also offer the most competitive rates in the
market. They charges Rs 50/- exchange rate and RS
75/- postage charges on issuing mail transfer. When the money is
not required immediately, the remittances can also be made by
mail transfer (MT). Here the selling office of the bank sends
instructions in writing by mail to the paying bank for the payment
of a specified amount of money. Debiting to the buyer’s account
at the selling office and crediting to the recipient’s account at the
paying bank make the payment under this transfer.

Telegraphic Transfer
Telegraphic Transfer is a form of remittance, which is advised by
telegram, telex or fax machines. The fundamental principles of
such transfer are otherwise identical with the Mail Transfer. It is
the message, which is sent from one branch to another on the
order of payer to payee through wire. It is one of the quickest
means to transfer fund through the use of telex/fax/internet or
cable.
ACCOUNTS DEPARTMENT
Opening of account is the most important department of the
Branch as this is a contract between the customer and bank. All
future transaction/operation are carried out as per this contract
and any deviation may jeopardize the bank’s interest. The
opening of a new account is the establishment of customer
banker relationship. By opening an account at a bank, a person
becomes a customer of the bank. The customers can open
following accounts:
 Current Account (CD A/C)
 Profit and loss sharing Account (PLS A/C)
 Basic Bank Account (BBA A/C)
 Fixed Deposit (FDR/TDR)

Account Opening
When a client comes to the bank, and makes a request for
opening of an A/C. The officer says that first fill up a prescribed
application form. If he/she wants to open a PLS A/C, then he/she
has to fill a form according to the account.

Requirements
• ID Card of applicant
• ID Card of father, mother, brother, sister, husband or wife
• Student card (if applicant is student)
• Two photos for illiterate person or those who use Urdu
signatures
Documents Attach with A/C Opening Form
• A/c opening form
• Specimen signature card
• Zakat form (for non-muslims)
• Deposit slip
• Requisition form
Issuance of Cheque Book
After opening an A/C with the bank, the A/C holder once again
makes a request in the name of bank for the issuance of a
cheque book. The A/C holder mentions title of A/C, A/C number,
sign it properly and mentions the no of leaves he requires
CREDIT DEPARTMENT
The bank is profit seeking institution. It attracts surplus balance
from the customer at low rate of interest and makes advances at
a higher rate of interest to the individuals and business firms.
Credit extensions are the most important activity of all the
financial institutions, because it is the main source of earnings.
Advances department is one of the most sensitive and important
department of the bank. The major portion of the profit is usually
earned through this department. The job of this department is to
make proposals about the loans; the credit management division
of head office directly controls all the advances. The advances
Department receive application from intending borrowers. After
receiving application the advance department processes it further.
After analyzing and detailed investigation, they decide whether to
approve the loan or not. Some loan approvals are made by the
Manager of the branch within his powers as prescribed by the
bank’s higher authorities, while some loan applications are submit
to higher authorities for their approval.

Some advances are of the following nature

• Loan against Gold
• Agriculture advance to farmers
• Medium term advance for working capital
• Long term advance for setting industry
• Short term advance to businessman

FOREIGN EXCHANGE DEPARTMENT

This department mainly deals with the foreign business. The main
functions of this departments are:
o L/C dealing.
o Foreign currency accounts dealing.
o Foreign Remittance dealing.

L/C Dealing
MCB is committed to offering its business customers the widest
range of options in the area of money transfer. If you are a
commercial enterprise then our Letter of Credit service is just
what you are looking for. With competitive rates, security, and
ease of transaction, MCB Letters of Credit are the best way to do
your business transactions.

Foreign Currency Account Dealing

This department deals with the foreign currency accounts which
mainly include dollar account, euro account etc.

INTERNAL CONTROL DEPARTMENT

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

DEPARTMENTS OF THE MCB

COMMERCIAL BANKING GROUP
The Group focuses on revenue growth and profitability while
through cross sell and optimization of branch banking platform.
With its large network of branches, Commercial Banking Group
posted robust growth by increasing their deposit volume. The
Group enhanced their sales model through the introduction of a
direct sales force team and personnel bankers in many branches
while continuing to strengthen their customer services quality. The
year witnessed a successful restructuring of the SME & Mid-
market segment with continued optimism of the benefit accruing
in the upcoming times.
CONSUMER BANKING GROUP
The strategic focus of the Group to enhance cross sell, strengthen
customer propositions and improve customer service. Emphasis
will be on rapid expansion of the new initiatives such as MCB
Privilege, Bancassurance, Investment Services and Alternate
Distribution Channels. In parallel, the Group will remain
committed to product development & refinement of
processes for continuous growth of deposits & customer base.
The Consumer Banking Group on its path of expanding the
product suite and customer base. MCB Mobile, the first
of its kind, mobile payment solution was launched enabling
customers to access their accounts and make payments using
their mobile phones. With the launch of MCB Privilege,
MCB also became the first local bank in Pakistan to start a
dedicated offering for the affluent segment through three
dedicated Privilege Centers in Karachi, Lahore & Islamabad.
A specialized Investment Services Unit was established to
develop and distribute specialized investment products catering to
the growth needs of affluent/mass affluent segments. There
was increased focus on enhancing cross sell to deposit
customers by expanding the footprint of Bancassurance.
Functionality, reach, as well as, penetration of Alternate Delivery
Channels was enhanced.

ISLAMIC BANKING GROUP

MCB Islamic Banking managed to maintain its profitability while
ensuring quality of its earning assets despite tough market
conditions & deterioration in assets quality of banking industry.
Islamic Banking further strengthened its market outreach by
increasing its deposit base and equity. MCB-IB plans to improve
its assets & liability product range. Strategic initiative for further
increase in dedicated branches and capitalizing on existing out
reach of MCB Bank has been undertaken for capturing Islamic
banking business.

TREASURY AND FOREX GROUP

Treasury & FX remained focused on its customer orientation and
enhanced its coverage to a broader customer base. The portfolio
of customers grew not only through the Treasury Marketing Unit's
own efforts but also as a result of a better cross-sell platform fully
supported by the Wholesale, Commercial, Consumer and
Financial Institutions businesses. Fixed Income sales showed
substantial improvement over the past year's performance and
remained an area of focus.

AUDIT & RAR GROUP

Audit Group has performed consultative role in addition to the
assurance services that it is geared to provide. The Group has
strengthened itself to cater to the requirements of Bank's
Whistle blowing Program. Training & Quality Assurance
Department, developed within the Group, ensures that the audit
assignments qualify the high standards that have been defined for
the Group. Audit Group is now equipped both in terms of human
resource and methodology, and is committed towards
optimization of its operations.

 OPERATIONS GROUP
 HUMAN RESOURCE GROUP
 BUSNIESS DEVELOPMENT AND NEW INITIATIVES

STRUCTURE AND FUNCTIONS OF THE

ACCOUNTS / FINANCE DEPARTMENT

FINANCE & ACCOUNTING OPERATIONS

The finance department of a bank takes responsibility for

organizing the financial and accounting affairs including the
preparation and presentation of appropriate accounts, and the
provision of financial information for managers. The finance team
manages the internal finances of the firm. They are the banks
internal management accountants. The main operations covered
by the financial department include:
 Anticipation of fund.
 Acquisition of fund, coordinating financing and fund raising
activities.
 Allocation of fund.
 Assessment of fund.
 Assessment and appraisal of financial activities.
 Preparation of budgets and financial reports.
 Managing the general ledger.
 Investment of funds and manage associated risks, Involve in
direct investment activities.
 Implement long term financial plan.
 Liaising with external auditors.
 Developing strategies of capital budgeting, capital structure
and Debt Financing
  Decisions involving capital investment, equity, and debt,
along with paying dividends to shareholders.
 Maintain cash management.
 Credit risk management.
 Capital structure and debt financing.
 Managing cost of capital, establish credit-rating criteria.

THE ROLE OF FINACIAL MANAGER

FINANCIAL MANAGER
Finance manager organizes and manages an organization's
financial portfolio. A finance manager is a professional who
oversee the preparation of financial reports as required by law
and approved by the organization's board of directors, direct
investment activities, and implement cash management
strategies. The finance manager also develops financial
strategies to meet the needs of the organization's short- and long-
term goals. Responsibilities also include evaluating data to
appraise the current and future financial condition of the
organization, and supervising investment activities.

FINANCIAL MANAGER RESPONSIBILITIES

A financial manager is responsible for supervising and handling

financial reports, investment portfolios, accounting, and all kinds
of financial analysis for an organization. Additionally, he oversees
cash management strategies and financial legislation and
regulation. He manages the cash flow for an organization by
supervising balance sheets, income statements, and the costs
and revenue model. The responsibilities of a financial manager
also involve supplying an efficient financial blue print and
elucidating all the financial data for an organization, while
minimizing costs and maximizing profits. The primary objective is
to generate future revenue streams for an organization, while
effectively managing the existing investments. He is also
responsible for budgetary decisions and planning. Additionally, he
must be well versed in the technical aspects of all kinds of
financial decisions. This requires an in depth knowledge of
various statuary litigation and legal regulations.
Financial manager responsibilities can be divided into two broad
categories:
• Managerial financial responsibilities
• Corporate financial responsibilities

FINANCIAL MANAGER ROLE IN CASH

MANAGEMENT
Basically there are five principles to cash management:

1) Invest your idle cash assets

2) Plan investments and expenditures to maximize operational
efficiency
3) Hold accounts payables until the latest date without taking a
penalty
4) Keep inventory levels as low as possible
5) Increase the speed of collection of accounts receivables

CHIEF FINANCIALOFFICER (CFO)

Chief financial officers (CFO) direct the organization’s financial
goals, objectives, and budgets. They oversee the investment of
funds and manage associated risks, supervise cash management
activities, execute capital-raising strategies to support a firm’s
expansion, and deal with mergers and acquisitions. As the Chief
Financial Officer (CFO) of bank, he is responsible to the
company’s Board of Directors for all accounting and financial
matters. He must establish company-wide objectives, policies,
procedures, processes, programs, and practices to assure the
company of a continuously sound financial accounting structure.
The Role of CFO in bank
The Top Ten Responsibilities for the CFO:
1. Cash Flow
2. Company Liabilities
3. Company Performance
4. Department Supervision
5. Budgeting and Expense Control
6. Financial Relationships
7. Finance or Raising Capital
8. Financial Obligations
9. Record Control
10. Shareholder Relations

CRITICAL ANALYSIS OF THEORETICAL CONCEPTS

RELATING TO PRACTICAL EXPERIENCES
Balance 2015 2014 2013 2012 2011
sheet of
fiveyears
-----------RUPEES IN 000---------------
ASSETS
Cash and 38,774,871 39,631,172 39,683,883 32,465,976 23,665,549
balances
With other
banks
Balances with 6,009,993 4,043,100 3,807,519 6,577,017 1,469,333
other banks
Lending to 3,000,000 4,100,079 1,051,372 6,577,017 9,998,828
financial
Institutions
Investments- 167,134,465 96,631,874 113,089,261 63,486,316 69,481,487
net
Advances-net 253,249,407 262,135,470 218,960,598 198,239,155 180,322,753
Operating 18,014,896 17,263,733 16,024,123 9,054,156 8,182,454
Fixed
assets
Deferred tax - - - 172,373 191,967
asset

Other assets 23,040,095 19,810,476 17,868,761 11,031,450 5,464,426

Total Assets 509,223,727 443,615,904 410,485,517 342,108,243 298,776,797
Liabilities
Bills payable 8,201,090 10,551,468 10,479,058 7,089,679 8,536,674
Borrowings 44,662,088 22,663,840 39,406,831 23,943,476 27,377,502
Deposits and 367,604,711 330,181,624 292,098,066 257,461,838 229,345,178
other
Accounts
Sub- - - 479,232 1,597,440
ordinated
loans
Liabilities - - - - -
against
assets
subject to
finance
lease
Deferred tax 3,196,743 437,137 1,180,162 - -
Liabilities
Other 15,819,082 21,345,781 11,722,493 11,171,496 8,611,600
liabilities
Total 439,483,714 385,179,850 355,365,842 301,263,929 275,469,034
Liabilities
Represented
By:
Share capital 6,911,045 6,282,768 6,282,768 5,463,276 4,265,327
Reserves 38,385,760 36,768,765 34,000,638 24,662,426 13,408,005

Total 509,223,727 443,615,904 410,485,517 342,108,243 298,776,797

Liabilities &
share Capital
 RATIO ANALYSIS
ABBREVIATION USED IN FOLLOWING CALCULATIONS

WORDS ABBREVIATION
Earning after tax EAT
Net Markup income NMI
Gross markup income GMI
Total income T.I
Operating income OP
Operating expenses OE
Total Shareholder Equity TSE
Net Sales N.S
Market price per share MPS
Earnings per share EPS
Earning before tax EBT
Total outstanding shares TOS
Book Value BV
Dividend per share DPS
Total debt T.D
Total liabilities T.L

(COMPARISON WITH OTHER BANKS) MCB

Comparison with United Bank Limited & National
Bank of Pakistan

Particulars MCB UBL NBP

-------------------- (Rupees in ‘000) ---------------------------

Deposits 367,604,711 492,036,103 726,464,825

Advances 253,249,407 354,091,713 475,243,431

Profit 15,495,297 9,192,687 18,211,846

Liabilities 439,484,714 558,807,328 824,676,384

 FUTURE PROSPECTS OF MCB
MCB team committed to taking the Bank to the next levels of success.
Key features of multi-pronged plan are as follows:

 MCB wants to be viewed as the leader in transactional

convenience. To get top market share, they will continue to invest
in alternate channel payment capabilities and services as well as
getting a larger share of transaction driven businesses like
remittances, cash management, payroll and trade.

 Managements want to continue to invest in branches to make them

more sales and service oriented. Through introduction of new
sales and service model, strengthened transaction processing and
leading financial products menu, aspire to achieve this ambition.

 Management core focus on mass, mid-market and corporate

segments, continue down the path of further segmenting customer
needs and developing focused customer propositions, particularly
in Privilege, Islamic & SME.

 Not any organization can deliver without investing in its

employees. In order to achieve growth targets, management have
to further strengthen reserve of talent and leadership powered by a
strong performance culture and training.

 Finally, for an organization, controls and efficiency is central to

existence. Management’s strategy to build stronger controls,
develop a unit cost culture.

 MCB’s strengths in terms of its franchise, balance sheet and

reputation are unparalleled.
 Entire team task is to ensure that continue to go from strength to
strength. Bank’s performance in 2015 is an attestation of the
 commitment & passion that the team brings to MCB and the strong
support of the shareholders.

WEAKNESSES OF THE ORGANIZATION

Income / expense ratio decreasing from last three years its
alarming situation for a
bank
2012 5.06
2011 4.10
2010 3.84
 The efficiency of banks can be measured through the use of
the return-on-equity
 (ROE) ratio, which shows to what extent banks use
reinvested earnings to produce
 future profits. MCB (ROE) decreasing consecutively from
last three years.
 Profit before tax PBT/Total income ratio decreased from
63.30% to 55.91% in 2012.
 (ROA) return on average assets also decreased from 3.60%
to 3.25% as compared to
last year.
 (ROCE) return on capital employed decreased from 31.49%
2008 to 27.35% 2012
 MCB poorly managing their operating expenses. Operating
expenses before pension
 fund (PF) reversal rose by 7.8% to Rs. 14.9B from Rs. 13.8B
in 2011. Due to rising inflationary pressures coupled with
additional expenditure on insurance and security companies,
the administrative expenses rose by only 8.4% to Rs. 14B in
2012.
 Borrowing from other financial institutions increasing from
22,664 to 44,662 in 2012.
 Cash dividend per share decreased from 11.50 (2011) to
11.00 (2012).
 CONCLUSION
The banking system, as a whole, remains healthy despite the
economy going through a period of economic difficulty. The
banking sector absorbed the build-up of non-performing loans in
the system while maintaining profitability and robust balance
sheets. Much of the credit for this must go to the SBP for the
policies it has pursued over the last decade to ensure that banks
are adequately capitalized and adhere to prudent risk
management.

The objectives were targeted towards customers, improved

management policies, strong policy framework, improved
governance structure, strategic investment initiatives and
implementation of cost effective measure across bank. The group
structure of the bank individually worked hard in achieving the
milestones under continuous monitoring and supervision of the
senior management and Board.

The Bank's outstanding performance resulted in improved

efficiency and profitability ratios, stable market share, and
attractive share price at the close of the year 2009 combined with
a high Break-up Value (before surplus) of 88.37 per share.
Consequent to the average increase in balance sheet footing and
equity of 12% and 16% respectively, return on assets and return
on equity were reported at 3.25% and 27.35% respectively.
 RECOMMENDATIONS
Following are some of the suggestions and recommendations that
I want to give on the basis of shortfalls / weaknesses found in the
bank.

 The target rate of return on assets (ROA) of commercial

banks reflects the effectiveness and efficiency of the use of
resources is the embodiment of its operating efficiency and
management level of the important comprehensive index.
Emphasis on return on assets, and continuously improve
the return on assets and achieve an operating profit
maximization should be the primary objective of Muslim
commercial bank.

 A strong ROE is a solid signal that management is doing a

good job of generating returns for shareholders'
investments. Active capital management activities will
provide better ROEs. Bank that manages larger reserves
due to recent or future investment projects will stymie their
ROEs. Another determinant of the ROE is the operating
profit margin of banks. Recently, this tends to converge
towards noninterest income as net interest margins tend to
cause net interest income to be squeezed over time due to
rising competition. Muslim Commercial Bank should enable
to raise their operating profit margins can smoothly enhance
their ROEs.

 Loans with higher returns will produce better profit

opportunities. Alternatively, may diversify earnings through
transaction and recurring non-interest income activities.
 MCB’s can expand more differentiated products, such as
wealth management and insurance to improve their ROE
position. Profit before tax ratio 55.91% in 2009 which is 7%
lower than in that of last year mainly on account of higher
 administration cost and provision charge so MCB should
control its interest expenses.

 The Bank's controlled budgeting and diligent monitoring on

operating expenditure block. Effective monitoring at
management level ensured managed increase in
administrative charge within the approved budgetary limits.

 Borrowing from other financial institutions increasing from

22,664 in 2008 to 44,662 in 2009 and deposits decreasing
the bank should develop strategy, employs the policy and
emphasized to increase deposits reserves that enable to
reduce
borrowings.

 MCB’s lead over rivals if they more emphasis on its

aggressive investment strategy and capital strength, the
investments may bolster MCB’s.

 MCB Bank Ltd Pakistan’s largest lender by market value

should plans to expand overseas and add branches and
employees at home even as economic growth slows after
the worst floods in the nation’s history. Increase staff as it
expands trade financing, remittances management and
mobile-banking operations.

 Better managed expense-to-income ratios will then produce

higher operating profit margins. Banks that use capital more
efficiently will have better financial leverage and thus, higher
ROEs. A higher financial leverage multiplier would show that
banks are able to leverage on a smaller base of
stakeholders funds to produce interest bearing assets that
optimize earnings.
  Efficient cost-control procedures may limit the growth of
operating expenses leading to higher operating profit
margin. Banks poorly managed their operating expenses.
Further improvement may be necessary to enhance ROE
development.

 MCB Islamic Banking needs a research, which should be

engaged in evaluating and interpreting the ways in which the
bank can flourish more and more.

 In Agriculture loan Sector, MCB mainly serving in Punjab

province. Agriculture loans facility should be provided to all
other provinces of Pakistan as well.

 The bank should emphasis on the organization of effective

training and development programs for its new as well as
existing employees so that these are gradually updated
regarding the recent developments in the field of banking.
Mcb wahdat road branch is very good and environment is
very perfect for internship staff is very cooperative and decent. At
the end I would like to thanks again for their corporation and
interaction with me.
REFERENCES
All of the references and sources from where the data gathered
for this report are mentioned herewith for your kind concern.

ORGANIZATION
o Annual Reports of MCB Bank Limited of Pakistan.
o MCB Credit Policy
o http://www.mcb.com.pk.

WEB PORTALS
o http://www.sbp.com.pk
o http://www.ibp.org