MCB

An Internship Report
Internship Report On
Muslim Commercial Bank
SUBMITTED TO: MR. MUZHAR JAVED SUBMITTED BY: TARIQ MAHMOOD ASGHAR MBA (FINANCE) MBAF07-77
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COMSATS Sahiwal Institute of Information Technology
ACKNOWLEDGEMENT
I am really pleased here to acknowledge the sheer efforts and extreme of numerous people, those who have provided me their relentless service in the completion of my internship report on Business practices at Muslim Commercial Bank. I would like to express my gratitude to my advisors in Muslim Commercial Bank who support me to under stand the working in the bank, during my internship. They really helped me a lot to gain practical knowledge about general banking. I am also grateful to Mr. ANWAR BHATTI (Manager MCB Pattoki) and all my supervisors during internship period. Without their guidance, this exercise of internship would not have resulted in a success. Secondly I would like to thank my advisor SIR MAZHAR JAVEED for his assistance and inspiring
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attitude. I am highly obliged to my respectable advisor and state my gratitude for his valued guidance and his concern about my internship.
Tariq Mahmood Asghar
DEDICATION
I dedicate this report to my loving parents without their guidance I would have gone astray.
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TABLE OF CONTENTS
DESCRIPTION Executive Summary About MCB Vision Mission Values Awards and Accolades Corporate Profile Organizational Structure Branch Hierarchy Head Office Prominent Features Services General Banking Accounts Agriculture Financing Islamic Banking Online Banking Marketing Strategies SWOT Analysis Financial Analysis Balance Sheet Profit and Loss Account Cash Flow Statement Ratio Analysis Internship Activities Recommendation Conclusion & Bibliography PAGE # 01 02 05 06 07 08 12 14 16 19 22 26 35 40 49 54 58 61 63 65 66 68 70 72 73 77 78 4
EXECUTIVE SUMMARY
This report is about Muslim Commercial Bank, its history, and the functions of the bank. This report contains detail about what I have learned in my six-week internship in Muslim Commercial Bank. It starts with the short history and background and brief introduction about the management of MCB. The vision of the bank along with its mission and existing status has also been discussed. This report contains detail about business practices in Muslim Commercial Bank. The purpose of this exercise was to learn while working in the practical field. Specially, the knowledge related to the General Banking and advances. It has really helped me observe to what extent the bookish knowledge is being practiced in real field. This report contains current financial position of the bank, the business process of the bank and all my learning, during the internship period.
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THE MUSLIM COMMERCIAL BANK LIMITED

MCB is one of the leading banks of Pakistan with a deposit base of about Rs. 280 billion and total assets of around Rs.300 billion. Incorporated in 1947, 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. This led to deterioration in the quality of the Banks loan portfolio and service quality. Eventually, MCB was privatized in 1991. 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 and managing its nonperforming loans via improved risk management processes. Muslim Commercial Bank is working as a scheduled commercial bank. The Bank provides all types of banking services such as Deposit in Local Currency, Client Deposit in Foreign Currency, Remittances, and Advances to Business, Trade, Industry and Agriculture. Muslim Commercial Bank plays a vital role in the national economy through mobilization of hitherto untapped local resources, promoting savings and providing funds for investments. Attractive rates of profit on all types of deposits, opening of Foreign Currency Accounts and handling of Foreign Exchange business such as Imports, Exports and Remittances, Financing, Trade and Industry for working capital requirements and money market operations are some facilities being provided by the Bank. The lending policy of Bank is not only cautious and constructive but also based on principles of prudent lending with maximum emphasis on security. As agriculture is considered as backbone of our economy the Muslim Commercial Bank has introduced "AGRI FINANCING PRODUCTS" to small farmers.
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History
MCB Bank Ltd formerly known as Muslim Commercial Bank Limited was incorporated by the ISFHANI and ADAMJEE Group on July 9, 1947, under the Indian Companies Act, VII of 1913 as a limited company. 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. The bank was established with a view to provide banking facilities to the business community of the sub-continent purchased by a consortium of distinguished Pakistani corporate groups led by Nishat Group. As of June 2008, the NISHAT Group owns a majority stake in the bank. The president of the bank is Mr. Atif Bajwa (previously with Citibank). MCB is Pakistans fourth largest bank by assets having an asset base of US$6.7 billion, and the largest by market capitalization having a market capitalization of US$4.1 billion. The Bank has a customer base of approximately 4 million and a nationwide distribution network of 1,026 branches, including 8 Islamic banking branches, and over 300 ATMs, in a market with a population of 160 million.
Nationalized
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
In the late 1990 after long period of time newly established Democratic Government of Pakistan have decided to sell nationalized assets of country for better utilization. In April 1991 this was the first bank to privatize in 1991 and the bank was purchased by a consortium of distinguished Pakistani corporate groups led by Nishat Group. As of June 2008, the Nishat Group owns a majority stake in the bank. The president of the bank is Mr. Atif Bajwa (previously with Citibank). Founded in 1948, Nishat Group
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An Internship Report is one of the leading and most diversified business groups in Pakistan. The group has strong presence in the most important business sectors of the country such as banking, textile, cement and insurance.
NEW MILLENNIUM
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.
PHILOSOPHY
MCB relies on strong, lasting relationship with its customers and on its reputation for stability and security for its continued process. Its philosophy has been to adopt steady course. It has pursued small, less risky loans to consumers and business, and shied away from risky loans. MCB extends its philosophy to its technology strategy but not perusing technology for technology's sake. However, MCB learns from the mistakes of others especially in "consumer banking". We let others get in first, take the hit, and find out the flows. Said MCB officials - and has installed efficient and effective system for processing and delivering information. The board of directors has the authority in guiding Bank affairs and in making general policies. Some directors are the personnel of the MCB Bank and others are successful businessperson and executives of other major organization. Nineteen members are included in board of directors.
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To future.
be
the
leading
financial
services provider, partnering with our customers for a more prosperous and secure
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We are a team of committed professionals, providing innovative and efficient financial solutions to create and nurture long-term relationships with our customers. In doing so, we ensure that our shareholders can invest in us with confidence.
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OUR VALUES
These are the standards and principles which determine our behavior and how we interact with our customers and each other:
1. INTEGRITY
We are the trustees of public funds and serve our community with integrity. We believe in being the best at always doing the right thing. We deliver on our responsibilities and commitments to our customers as well as our colleagues.
2. RESPECT
We respect our customers values, beliefs, culture and history. We value the equality of gender and diversity of experience and education that our employees bring with them. We create an environment where each individual is enabled to succeed.
3. EXCELLENCE
We take personal responsibility for our role as leaders in the pursuit of excellence. We are a performance driven, result oriented organization where merit is the only criterion for reward.
4. CUSTOMER CENTRICITY
Our customers are at the heart of everything we do. We thrive on the challenge of understanding their needs and aspirations, both realized and unrealized. We make every effort to exceed customer expectations through superior services and solution.
5. INNOVATION
We encourage and reward people who challenge the status quo and think beyond the boundaries of the conventional. Our teams work together for the smooth and efficient implementation of ideas and initiatives.
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AWARDS & ACCOLADES
Euro money Awards

Best Bank in Asia Award 2008:
MCB has been awarded as a Euromoney Award 2008 for the " Best Bank in Asia".
Best Bank in Pakistan Award 2006:

MCB has yet again received the esteemed Euromoney Award for the Best Bank in Pakistan. It is the only bank to receive the Euromoney Award for Excellence for the sixth time in the past seven years.

MCB has again received the esteemed Euromoney Award for the Best bank in Pakistan. It is the only bank to receive the Euromoney Award for Excellence for the fifth time in the last six years.

In a continuous winning streak, MCB once again takes pride in being conferred with Euromoney's prestigious award of excellence, for being the "Best Bank in Pakistan" for the fourth time in the last five years.

MCB believes in you. Together we work with quality, integrity and dedication, striving to achieve collective success by understanding changing trends and assimilating into diverse cultures. Your trust in our ability and our commitment to deliver has again won us the Euromoney Award 2003 for the "Best Bank in Pakistan".
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Your trust and our commitment is always an award wining combination MCB was awarded as a Euromoney Award 2001 for the Best Bank in Pakistan".
Best Domestic Bank Award 2000:

MCB was awarded as a Euromoney Award 2000 for the Best Domestic Bank in Pakistan".
Asia Money Awards

The Best Domestic Commercial Bank Award 2005:
MCB Continues to shine as once again Asia Money declares MCB as "The Best Domestic Commercial Bank in Pakistan" for the year 2005.
The Best Domestic Commercial Bank Award 2004:

MCB has a distinction of winning the Asia Money 2004 award for being "The Best Domestic Commercial Bank in Pakistan".
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COMPLIANCE STATUS
Name & Address MCB Bank Limited MCB 15 Main Gulberg, Lahore Public Limited Company. Listed on Karachi, Lahore & Islamabad Stock Exchanges in Pakistan. KPMG Taseer Hadi & Co / Ahmed & Co . Accountans Riaz Chartered
Legal Form
Name of External Auditors
Name of Regulatory State Bank of Pakistan (Central Bank). Body Commercial, Consumer, Corporate, Correspondent and Islamic Banking. Categories of shareholders - as of December 31,2007. Pattern of Share Particulars Shareholding Percentage Holding Directors, CEO and children 29,414,134 4.6817 Main Banking Associated Companies NIT & ICP Banks, DFI & NBFI Insurance Companies Modarabas & Mutual Funds Public Sector Cos. & Corp. General Public (Local) General Public (Foreign) Others Foreign Companies 49,601,842 7,305 3,941,990 39,538,161 2,153,414 115,204,125 143,491,134 2,127,329 83,306,246 159,491,163 7.8949 0.0011 0.6274 6.2931 0.3427 18.3365 22.8388 0.3385 13.2594 25.3854
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Company Total Chairman President & CEO Mian Mohammad Mansha Mr. Atif Aslam Bajwa
628,276,843
100.00
Banking License No. BCD (1) 17-66 dated 8th December 1966. Compliance Status Compliant with KYC and AML regulations prescribed by State Bank of Pakistan.
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CORPORATE PROFILE
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ORGANIZATIONAL STRUCTURE
The organizational structure of MCB is Functional, as all activities are grouped together by common functions from the bottom to the top of the organization.
CHAIRMAN
VICE-CHAIRMAN
PRESIDENT & CHIEF EXECUTIUVE
SEVP
EVP SVP VP AVP GRADE-1
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GRADE-2 GRADE-3 ASSISTANTS
CLERICAL STAFF
1. CASHIER
NON-CLERICAL STAFF
1. MESSENGER
2. TECHNICAL STAFF
2. DISPATCH RIDER
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BRANCH HIERARCHY
AREA MANAGER
OPERATION AREA MANAGER
Branch Manager
OPERATION MANAGER
Cash/De posit Dept.
Account s Dept.
Advance sDept.
Remitta nces Dept.
Consum er Finance s
Date base Admins Dept.
Acc. Opening Dept.
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BRANCH NETWORK
As Of 15-07-2008
COMMERCIAL BRANCH BANKING GROUP
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HEAD OFFICE AT GLANCE
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I. I. Chudrigor Road of Karachi has same importance in Pakistans economy as of the Wall Street in world economy. The divisions working under MCB Head office are as follows: Administration Credit Management Investment Banking Human Resource Information Technology Corporate Planning & Budgeting 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 9 circles, 47 regions and 1400+ 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.
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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: Credit Management Audit & Inspection Human Resource Marketing & Development
Province Punjab Sindh Balochistan NWFP & AJK
Circles 9 5 1 2
Region 27 12 2 7
Branches 823 278 35 235
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PROMINENT FEATURES
SBP allowed exporters obtain foreign currency loans against firm contracts L/Cs and MCB made arrangements for clients to use the facility at EPZ branch, Karachi and off-Shore Banking Unit, Bahrain for the purpose. It also offered services to clients for procuring foreign currency loans from abroad. The other significant development is the launching of the MCB Imdad-e-Bahami Scheme for Housing Improvement in addition to commercial lending; MCB has accepted the responsibility to offer social lending. The scheme, launched with the cooperation of the Swiss institution aims at providing easy credit to low income group is urban areas to improve their living condition. Other Prominent features are as follow: Committee Structure Organizational culture Customer Service Automation & Modernization International Appearance Employees Mgt Relation Human Resource
COMMITTEE STRUCTURE
MCB employs a very strong committee structure to oversee decision by decentralized operations. Officers are given strict limit to authority. Within prescribed limit, officers do indeed make their own decision- but according to guidelines, procedures, and rules. Decision outside of prescribed limits is taken to high-level committees.
ORGANIZATIONAL CULTURE
Officers of the bank don't need to spend a lot of time into whether they should consider issues or ideas. They just know their certain parameters beyond which they won't go.
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An Internship Report The employees in the organization are well dressed, well communicated and well cooperative. Officers learn what these parameters are through their experience with various committees through process osmosis. In visiting and in participating on committees, individuals get to see what their cohorts are doing. Cross - fertilization of ideas occurs and, often, morale is helped. Major corporate policy changes occur through a process of involvement by levels of management.
CUSTOMER SERVICE
Perhaps the most important yardstick for testing the success oriented organization is in the area of customer services and it is in this very sphere that MCB have made the leading strides. To eliminate delays in dealing with credit proposals, of which complaints were frequent is the past, an effective three lier system was introduced instead of six lier system. Under this new system adequate sanctioning powers were delegated to Branch, Regional and General Managers and also to the senior executives in charge of credit at the Head Office. Only proposals exceeding their powers are now considered in the credit/executive committee. As a part of the new system, the role of the Head office was redefined from supervisory to supporting only the inspection division at the Head Office now has a supervising role for ensuring the implementation of the Banks Directives. The new policy and the restructuring of the system had a two fold positive outcome. Customers were provided improved services and needed facilities. The Banks executives and other staff come to possess a new sense of confidence and dignity in their jobs.
Automation & Modernization

The project of on line banking has been successfully introduced and provides customer with the facility to operate from any branch in the network, so for, more than 80 branches have been connected to the MCB Data Network between/among Karachi, Lahore, Rawalpindi, Hyderabad, Multan and Islamabad.
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An Internship Report The bank has installed a number of Automated Teller Machines (ATM) to provide 24 hours cash facility to its customer. ATMs have been installed at 40 branches in Karachi, Lahore and Islamabad. The network have been expanded to Multan and Faisalabad since 1997. The ATM at Karachi airport has also started functioning and those at Lahore and Islamabad airport have been inter-linked in 1997.
Swift
The bank has also started replacing conventional telex messaging system for fund transfer, L/C opening etc., by connecting on-line with the world wide interbank Financial Telecommunication Network (SWIFT). So for, MCB has on line 20 branches in Karachi, Lahore, Faislabad, Gujranwala and Sialkot on SWIFT, to meet foreign correspondence requirement.
Human Resource
The bank has five special importances to the aspect of training and career planning of its staff members. Forwards this main objective, several training courses have been organized initiating a self development process, in order to accelerate organizational growth and to further improve the Banks level of expertise and efficiency. In 1998, a total of 576 courses were conducted which covered a wide variety of topics connected with banking and customer services. An aggregate numbers of 8,776 staff member participated. Additionally 245 officers and executive took part in training courses and seminars conducted by professional institution, such as institute of Bankers Management Association of Pakistan, Pakistan Institute of Management and Pakistan Banking Council. Eight executive also participated in courses conducted is foreign countries. The MCB executive development centre, set up in November, 1995 for used attention an the development and grooming of our executives. Eminent scholars and specialists were invited, during 1996, to apprise our executives of new concepts and
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An Internship Report techniques to keep abreast of the constant changes taking place locally and globally. A total of 54 seminars were held this year in which 518 executive participated.
International Appearance
After the closing down of the London operations prior to privatization, MCB was left with no foreign branches and operations. In 1994 as planned the bank opened up its international operations by inaugurating its branches in Dakha and Colombo. More branches are operating in Pettah, Srilanka and Chittagang. Access to Middle East and Africa is in progress.
Employees Management Relation

The employee management relations remained cordial. Up-to-now more than 290 offspring of the employees are inducted in the bank as cashier and typists on merit basis. Extensive training PROGRAMME for the employees continued to supplement their capabilities. The management is indebted to the employees for sharing its vision and dream to make MCB the best Bank of the country that is client driven, preferred by the customers and tested on the touch- stone of customer satisfaction.
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SERVICES
We make every effort to exceed customers expectations through superior and wide array of financial services and solutions. We thrive on the challenge of understanding their needs and aspirations, both realized and unrealized, so that we can satisfy then with surety and security. The privatization process for the expansion and diversification of economic activities in the country also demanded the introduction of new banking products. MCB took initiative in this direction and for the first time MCB devised and marketed new products and services with brand names to enter the varying requirements of its diverse customers. MCB currently have following products or services in banking sector that are making it more prominent in the banking sector: Night Banking Fax Utility Consultancy Services Traveler Cheques Self Supporting Scheme Utility Bills Collection Credit Cards ATM
CONSULTANCY SERVICES
In the process of privatization of public sector units, prospective buyers need professional assistance and MCB, with its expertise offers to their specialized service for valuation of the market value of the industrial unit, preparing bid documents and arranging finance for the purchase of the unit.
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SELF SUPPORTING SCHEME

Loan for poor/needy people No mark-up charged Maximum amount of Rs. 25,000/=
Minimum amount of loan Rs. 5,000/=
FAX utility
Pioneer to introduce Fax for customer service. Facilitates speedy transfer of funds. Within an hour any where in Pakistan. Charges are debited to Customer account.
NIGHT BANKING SERVICES

To facilitate business community Only in commercial trades centers premises Clients can make deposits up to 8:00 pm Date moved to next for all such transaction
MCB RUPEE TRAVELERS CHEQUE

Can be a safest way to carry cash Cheque is accepted at trade centers & branches No need to be a/c holder for traveler cheques Cheque is signed once when issued. Upon delivering second signed are made In case of theft no fair to Ancash
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MCB ATM SERVICES

MCB ATM Card
Welcome to a world of convenience with the MCB ATM 24- Hour Smart Card. "It Works anytime in Pakistan and abroad." With an ever growing number of ATMs operating across the nation, the MCB ATM Network is the largest and most advanced of its kind in the country, and is part of MCB's continuing efforts to provide you with convenience that suits your requirements most. And now the MCB ATM has gone global. MCB's affiliation with Master Card International brings about added facilities for the MCB traveler abroad with the Cirrus and Maestro networks. So go ahead! Use your MCB ATM 24- Hour Cash Card day or night, at home or abroad.
Card Categories
MCB ATM Regular Card
The MCB ATM Regular Card allows withdrawal of up to Rs. 10,000 per day and a maximum of 3 withdrawals per day per card.
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MCB ATM Gold Card:

The MCB ATM Gold Card allows withdrawal up to Rs. 25,000 per day and a maximum of 6 withdrawals per day per card. The cardholder has to make at least two transactions to withdraw the full amount of Rs. 25,000.
SCHEDULE OF CHARGES
Joining Fee Annual Fee Chip Maintenance Fee Supplementary Annual Fee Supplementary Chip Maintenance Fee Gold FREE FREE upto PKR. 500 p.a FREE PKR. 300 p.a Classic FREE FREE upto PKR. 350 p.a FREE PKR. 300 p.a
Service Fee/Markup on Cash Transactions 2.83% per month translated into an APR of upto 34% calculated on daily unpaid balance from date of transaction Service Fee/Markup Retail(Fixed APR) 2.83% for service fee/markup per month translated into an APR of upto 34% Service Fee/Markup Retail (Variable APR /i-revolve) Upto 35% to 30% APR based on continuous revolving of per retail transaction for six months or above This is charged on per retail transaction basis from an APR of 35% in the first revolving month and based on revolving of the transaction the rate continues to decline each month for six months to a minimum of 30% i.e sixth revolve month and continues at this rate till the transaction is fully paid. Month APR (upto) 1 2 3 4 5 6 and beyond till the transaction is not fully settled
Per Month 35% 34% 33% 32% 31% 30%
2.91% 2.83% 2.75% 2.66% 2.58% 2.5%
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An Internship Report Late Fee Rs.600/- or 10% of minimum amount due which ever is higher Cash Advance Fee Rs.500/- (per transaction) or upto 3% of the cash advance transaction amount (whichever is higher) plus all charges passed on by the acquiring bank Cheque/Cash Pickup Fee PKR. 200/Overlimit Fee PKR. 500/ Voucher Retrieval Fee Local: PKR. 250/- per document Foreign: PKR. 800/- per document i-insure Package 1: PKR 600, Package 2: PKR 300, Package 3: PKR 200, Wallet Protection: PKR 75 per month Credit Security upto 0.40% of total monthly outstanding balance i-plan APR Starting from 17.93% upto 21.28% Processing Fee: PKR. 250/- per transaction Prepayment Charges: PKR. 500 or 5% of outstanding installment balance (whichever is higher) i-dial APR Starting from 17.93% upto 21.28% Processing Fee: Bank remittance charges plus PKR. 350 (per request) or upto 3% of amount requested (whichever is higher) Prepayment Charges: PKR. 500 or 5% of outstanding installment balance (whichever is higher) i-switch APR Starting from 17.93% upto 21.28% Processing Fee: Upto 3% of transferred amount or PKR. 350/- (whichever is higher) Arbitration Charges for Disputed Transactions USD 500/- or equivalent Card Replacement Fee PKR 500 for Gold, PKR 350 for Classic and PKR 300 for Supplementary Cheque Return Charges / Insufficient funds on Auto Debit
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Upto PKR. 600/Pay Order / Demand Draft Issuance Fee Upto PKR. 500/Cash Payment Processing Fee Upto PKR. 100/- per bill for MCB account holders Upto PKR. 200/- per bill for non-MCB account holders Duplicate Statement of Request PKR. 300/- per statement (more than 1 month old) Foreign Transactions 5% over prevailing market rate or as per SBP directive. Third currency transactions will be first converted into US Dollars as per rate quoted under arrangement with Visa. Cross border transaction fee will also be charged as per Visa rules Credit Worthiness Certificate 1 Certificate per 6 months Free Subsequent requests - PKR. 200/- per certificate Supplementary Chip Maintenance Fee PKR. 500/- per cheque Plan Conversion Fee Upto PKR 200 All the charges are subject to change in rate which will be at the discretion of the Bank and will be notified to the customer accordingly.
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BILL PAYMENTS
About MCB 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, Instaphone, Mobilink, Paktel and Ufone. So, save your precious time by avoiding long queues and pay your bills through MCB Easy Bill Pay. MCB Smart Card or MCB ATM Card Holder can easily pay their bills or re-charge their prepaid mobile phone account through the following convenient options of MCB easy bill pay.
Bill Payments Features

allows you to : Pay your bills 24 hours a day 7 days a week. Make total payments of up to Rs. 20,000 per day. Carry out up to 10 transactions per day per card. Make either full or partial payments. Full payment is required for PTCL only. Recharge your pre-paid account for Ufone, Instaphone and Paktel as per their fixed slabs. Pay as a registered or non-registered user. Registration will help you avoid the time delay in entering details each time you carry out a transaction.
MCB's Partners in
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GENERAL BANKING
It is backbone of banking It is one of the major department of MCB. It consists of following departments: Accounts Department Current Department Remittance Department Clearing Department Cash Department Financing Department
ACCOUNTS DEPARTMENT
Every transaction which takes place recorded in the computer so all transactions in different departments are forwarded to account department. Since all vouchers from different departments are forwarded to current department so this department tallies all such transactions with current department after maintaining the ledger of each department. Following are different functions performed by this department: Preparation of Financial Statements for different time span Maintain all accounts of different departments Calculation of profit on different schemes Calculation of markup on different advances Preparation Different types of reports for State Bank Daily position of cash & every accounts Matching daily summaries of all departments with ledger
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CURRENT DEPARTMENT
This department maintains all formalities of the accounts and account holders like it account name, account holders name, code number and full address. Different cheques debit and credit voucher come form different departments like Token, Clearing, Remittances, Cash, Foreign Exchange, Advances and posted against different accounts. A working Journal called Manual is prepared daily which shown the balance accounts of all parties. Mark-up and profit are calculated daily. That would be debited at credited from or to account holders account after specific period of time. Markup is debit from the account after every three month profit is credited to accounts after every six month. New accounts are also opened in this department. The fund deposited in the MCB bank can be classified under the main heads: Current account Saving account Term /call deposits
ACCOUNTS TYPES
Though in theory there many types of accounts but commonly account operators can be classified in one of the following categories, each have different documentation requirements: Single Joint Partnership Private Limited Public Limited
SINGLE
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An Internship Report Only one person can operate this a/c. An individual who can fulfill the requirement of bank can open this a/c. We can call it a personnel or individual a/c. The requirements for this type are National Identity Card Photocopy, Minimum Deposited Balance, Account Opening Form, Letter of Kinship etc.
JOINT
In case of joint a/c applicant mentions that how much person will operate the a/c. Instruction are given for joint a/c such that the account shall be operated by anyone or more. The requirements for this type are National Identity Card Photocopy, Minimum Deposited Balance, Account Opening Form, Letter Kinship, Additional Signature Form (For Joint Account), Declaration regarding the operator of account.
PARTNERSHIP
For partnership a/c, along with the application form other requirements needs satisfied. The requirements for this type are National Identity Card Photocopy, Minimum Deposited Balance, Account Opening Form, Registration certificate, agreement among partners and Commencement of business and memorandum and articles of association and balance sheet etc. private registration, resolution of board of directors, commencement of business,
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 partner who can be the operator of the account.
PUBLIC LIMITED
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An Internship Report Public Limited A/C type of account is opened in the name of the businesses having Public limited concern and mostly medium business enterprises open such kind of accounts. All the board of directors have to submit the declaration regarding the account operator on the company pad and with the rubber stamp with the signature of the all the members of the board of directors. In case of any change in 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 partner who can be the operator of the account.
ACCOUNT OPENING
To open an account the customer have to meet the general banking manager with an introducer (the person who is going go introduce that person in the bank) and get an application form used for account opening. forms are available for each type of account. Different color-coded application Along with the form a card for
specimen signature is also supplied to customer. Manager has every right not to accept this contract if he is not satisfied by the details provided by the customer. In case the contract is acceptable to both, now it is ready to open the account formally.
Procedure
The procedure begins with the punching of account opening form to the customer file i.e. customers master file. The manager records the necessary details into this register and allots an a/c number from this a/c opening register. This register is maintained for each type of account and the a/c nos are allotted serially. After opening a saving and current account every applicants data is entered into the computer to maintain a safe record and application form is properly filled so that it can be available when necessary. Checking officer is responsible to Tele the manual application form with the computerized a/c opening file. For fixed deposit only that application form is needed this is prepared manually, because most of the procedure of fixed deposit is done manually. The signature specimen card contains three signatures of an applicant, applicant a/c no, a/c type, branch code, title of a/c, it will be attached with an application form. Banker uses this card at the time when he
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An Internship Report receives the cherub; he compares customers signature with the signature on the cherub for avoiding fraud.
ACCOUNT CLOSING
There are no. of reasons of closing an account can be one of the following if customer desire to close his account, in case of death of one account holder, bankruptcy of the account holder and 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. authority to close any account. There is need an approval form higher
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ACCOUNTS
Pak Rupee Accounts Saving Account
MCBs Rupee Savings account is the most convenient way to manage your savings.
Low average balance requirement Enjoy unlimited free of cost transaction facility at your branch Profit is paid on your account on a half yearly basis Cash deposit and withdrawal facility at hundreds of MCB branches across Pakistan (conditions apply) Withdraw cash through Pakistans largest ATM network. Make cash free transactions, from your account at thousands of merchant outlets through your MCB Smart Card (local & international) Stay in touch with your account through MCBs Virtual Banking Service. Use your account to pay your bills 24 hours a day, 7 days a week through Virtual Banking Get instant updates about your account through MCBs sms banking
Current Account
Low average balance requirement. Enjoy unlimited free of cost transaction facility at your branch. Profit is paid on your account on a half yearly basis. Cash deposit and withdrawal facility at hundreds of MCB branches across Pakistan (conditions apply). Withdraw cash through Pakistans largest ATM network. Make cash free transactions, from your account at thousands of merchant outlets through your MCB Smart Card (local & international). Stay in touch with your account through MCBs Virtual Banking Service. Use your account to pay your bills 24 hours a day, 7 days a week through Virtual Banking. Get instant updates about your account through MCBs sms banking.
Term Deposit
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MCB offers a wide range of attractive term deposit schemes to suit your requirements.
Avail your choice of 1 month, 3 months, 6 months, 1 year, 2 years, 3 years, 4 years and 5 year term deposits. Low investment threshold. Half yearly profit payment. Avail a credit facility up to 75% of the total deposit value.
Special Term Deposit

MCBs Special Rupee Term deposits offer a very attractive long term investment option with ease and convenience.
Highly attractive profit rates. Tenors available are 3 months, 6 months, 1, 3 and 5 years. Profit on 3 and 6 months deposit is payable at maturity of deposit. Profit on 1, 3 and 5 years deposit is payable quarterly. Withdraw your amount through our wide network of ATMs. Avail a credit facility up to 75% of the total deposit value. Contact your branch for information on the present profit rates on offer.
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Foreign Currency Accounts Saving Accounts

MCBs Foreign Currency Savings Account offers you attractive returns on your Foreign Currency investment.
Open a foreign currency Savings account in any of the four currencies i.e. US Dollar, UK Pound Sterling, and Euro. Unlimited transaction facility. Low balance requirement. Profit credited to your account on a half yearly basis. You can avail a credit facility up to 75% of the total deposit value. A foreign currency account can be opened at any of our foreign exchange dealing branches.
Current Accounts
MCBs Foreign Currency Current Account offers you the convenience of unlimited withdrawals i.e. access to your funds whenever you want without any notice. There is no limit on the number of transactions you make in a day.
Open a foreign currency Current account in any of the four currencies i.e. US Dollar, UK Pound Sterling, and Euro. Unlimited transaction facility. Low balance requirement. You can avail a credit facility up to 75% of the total deposit value. A foreign currency account can be opened at any of our foreign exchange dealing branches.
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REMITTANCE DEPARTMENT
The need of remittance is commonly felt in commercial life particularly and in every day life general. A major function of any banking system is the transfer of funds from one client or one place to another. By providing this service to the customer the bank earns a lot of income in the form of service charges. This department deals with local currency remittance i.e. remittance from one city to another without actually carrying the currency. MCB uses following instrument for transferring of money: Demand Drafts (DD) Pay Order (PO) Telegraphic Transfer (TT) Mail Transfer (MT)
Demand Drafts (DD)

DD is a written order given by the branch of the bank on behalf of the customer to other branch of the same bank to pay the certain amount to the customer. DD are issued for the particular place other than place of issuance. A draft is a Cheque drawn by a bank on its own branch or any other branch of another bank at a different place requesting it to pay on demand a specified amount of money which is already received to the person named on it. DD is of following two types: DD payable DD Paid Suspense a/c In the first type as advice reaches for payment the immediately pay to the customer, while in later as DD presented by the customer, it is paid and the suspense account is debited.
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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. Following are the pre-requisites for the processing of DD: Bank Serial No No. of DD Central No Test Key Postage charges
With holding tax
Pay Order
For this kind of remittance the payer must have the account in the issuing bank. Pay order are more liquid as compared to cheques because cheques may be dishonored while PO cant be. It is written order issued by the bank drawn and payable on itself. It is used for local transfer of money from one person to another person. It is also used by the public for depositing money with Government or Semi Government department.
DOCUMENTATION
The party who requires a pay order will get a printed application from the bank. He will fill it and deposits the amount and commission. The bank charges are same as on demand draft. Bank Serial No. No. of PO Central No.
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An Internship Report With holding tax
TELEGRAPHIC TRANSFER (TT)

In this case the authority is given from one bank to other on the behalf of the customer through telecommunication to debit their inter office account through them and credit their parties account mentioned in TT. It is an inter bank transaction. Telegraphic transfer is an instant transfer of funds. Through this method applicant can transfer money from one place to another place. There are two types of TT, Both types of TT are maintained in separate registers, test is applied by the manager of every amount of TT. Incoming TT Outgoing TT Applicant has to fill a form along with depositing amount to be transferred and bank commission. MCB charges the commission at the same rate as in the case of demand drafts.
Documentation
Issuing Branch Name & Code Beneficiary Branch Name & Code
No. of TT Rs 20 Postage and Rs 180 for Fax

Amount in words & Figure With holding tax Test key
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Mail Transfer (MT)

As the name shows, it is transfer of money in the shape of document through mail. Procedure is like TT. The transfer of funds from one place to another by mail is called Mail Transfer (MT). The MT can be foreign or domestic. The applicant who is desiring to remit the funds by way of Mail Transfer can either deposit cash or ask the bank to debit his/her account with the cost of MT including the bank charges. These all measures are for safe transfer of funds.
Documentation
Issuing Branch Name & Code Beneficiary Branch Name & Code Number of MT Amount in words & Figure With holding tax Test key
CASH DEPARTMENT
In cash department both deposits and withdrawals go side by side. This department works under the accounts department and deals with cash deposits and payments. This department maintains the following sheets, books, ledger of account: Cash received voucher sheet. Cash paid voucher sheet. Paying-in-slip Cheque Book Cash balance book
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Cash Paid Sheet

The only instrument that can be used to withdraw an amount from an account is the Cheque book. No payments are made by another instrument. Cheques can be of two types, they may be presented at the counter and encashed and the others are clearing or transfer cheques. Cashier manually inspects the Cheque for following Signature & date Cross cutting Drawees a/c title Amounts in words & figures Two signatures at the back
Cash Received
For depositing the cash into customers accounts, there is need to fill in the payingin-slip giving the related details of the transaction. This paying-in-slip contains the date, a/c/no, a/c title, particulars, amount being deposited and details of the cash. There are two portion of the paying-in-slip. The depositor signs the one part of the paying-in-slip one is retained by the bank to show an acceptance of the entries made in the slip. The different colored paying-in-slip is used for all the types of deposits. Only the slips related to a particular type of a/c is acceptable by the bank. The transaction ledger is only updated by paying-in-slip and Cheque. The cashier is responsible to receive both the paying-in-slip and cash from the depositor.
CASH BOOK BALANCE

At the end of the working day cashier is responsible to maintain the cash balance book. The cash book contain the date, opening balance, detail of cash payment and received in figures, closing balance, denomination of government notes (Currency). It s checked by manager. The consolidated figure of receipt and payment of cash is entered in the cash book and the closing balance of cash is drawn from that i.e.
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An Internship Report Opening Balance of Cash + Receipts - Payments = Balance The closing balance of today will be the opening balance of tomorrow. This department is one of the most important departments of the bank. All the books maintained in this department are checked by officer.
CLEARING DEPARTMENT
Clearing is a system by which banks exchange cheques and other negotiable instruments drawn on each other within a specified area and thereby securing the payment for its clients through the clearing house. A clearing house is a general organization of the banks at a given place, its main purpose is offsetting the cross obligation in the form of cheques. When there are many banks in the country each will receive a number of cheques drawn on other banks, deposited within for collection. A clearing house is an organization where these cheques are brought and the mutual claims of each bank on the other are offset and a settlement is made by the payment of differences. The representatives off all the banks in Pakistan attend office of the bank which is performing these duties of clearing house, on each business day at a fixed time. They deliver cheques that their bank may have negotiated and receive in exchange cheques drawn on their bank negotiated by other bank. The responsibility of smooth cooperation of the clearing function lies with the State Bank of Pakistan.
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FINANCING DEPARTMENT
It is another major department of the MCB Bank. Bank provides this facility to the people who need advance money to meet their requirements.
AGRICULTURE SECTOR FINANCING
MCB is financing agriculture sector since 1973. Due to large branch network and specialized staff posted in the branches, MCB caters to the financing requirement of the farming community spread through out the country and facilitates in achieving increased productivity. MCB has reinvigorated its agri financing products under the brand name MCB Green Scheme. The scheme is designed and aimed at meeting all types of financial needs of agriculture sector covered under extended list of eligible items. Agri financing facilities are available through out the country at designated Lending Branches. All types of financing is available for short, Medium and Long term depending upon farmers choice and the nature of finance. MCB gives top priority to small & medium size farmers so that they could be protected from the exploitation of private money lenders.
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AGRI FINANCING PRODUCTS
SHADABI PLAN (AGRI REVOLVING FINANCE)

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.
Salient Features
Financing requirement is ascertained for a period of three years Limit is sanctioned for three years on revolving basis with one time documentation subject to annual clean up along with markup. Mark up is charged on the limit amount utilized by the farmer There is no prepayment penalty There is no hidden cost involved Forms & documents are provided free of cost.
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KHUSHALI SCHEME (AGRI DEVELOPMENT FINANCE)

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.
Salient Features
Short, medium and long term financing facilities are extended The repayment is scheduled on the basis of farmers convenience on annual/ biannual basis.
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 cum commercial. However, the repayment capacity and potential use of tractor will be evaluated at the time of loan processing.
Salient Features
All types & makes of tractors either locally manufactured or imported can be financed Tractor is financed for a period of five years or earlier as per farmers choice
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An Internship Report Installment is on biannual basis. Comprehensive insurance is required to be intact during the tenure of finance Tractor will be jointly registered in the name of the borrower and the bank. Tractor will remain hypothecated in banks favour till the loan is repaid in full Security/collateral will be required as per bank policy.
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.
Salient Features
The requirements may differ from farmer to farmer. Evaluation/assessment of finance will be made on case to case basis. The finance will be for a period to be determined on the basis of assessment Repayment of the loan will be on biannual basis or linked with crop cycle Three quotations will be required in case of machinery to be installed
GROWERS 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.
Salient Features
The grower should have his account opened in MCB Branch The BOD of the Mill should pass a resolution for financing request addressed to MCB The charge over the assets of the company is created KYC requirements are complete
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An Internship Report Growers crop is hypothecated Repayment of the loan is linked with crop harvesting
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ISLAMIC BANKING
The thrust for Islamic Banking is founded on the desire to submit to the Divine Instructions on all transactions, particularly those involving exchange of money for money. However, it would be quite unfair to limit Islamic Banking to elimination of Riba only. At the heart of Islamic Banking is a system of commercial transactions that not only provides Halal modes of commercial transactions by avoiding that which is obnoxious and objectionable, but also fosters ethical, fair and just practices. A key element of Islamic economics is distribution of equitable rewards to the different factors of production. Islamic economic system seeks system of Redistributive justice where concentration of wealth in a few hands is countered and flow of money into economy is fluent. Islamic Banking is, therefore, seen as a lynchpin to achieving the economic and social goals of the Islamic economic system. "The credit would go to MCB for establishing first dedicated Islamic branch in Pakistan. Besides, the Islamic Banking Division (IBD) established a full-fledged Advisory Board for Islamic Finance, headed by Rashid Rehman, which is working since January 1, 2003.
DEPOSIT SCHEMES
If you are looking for a deposit opportunity where you can purse your funds and reap HALAL returns, we offer following products:
Al-Makhraj Saving Account

The minimum deposit requirement for Al-Makhraj Saving Account is only Rs. 10,000 and profits can be earned 6-monthly. Other features associated with this product are as follows:
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An Internship Report 1 2 3 4 5 Minimum Deposit: Rs. 10,000 Minimum Monthly Balance: Rs. 10,000 Islamic Tools used in designing the product: Mudaraba/ Musharaka Product to be availed by: Individuals & Joint Account Holders (Local and Foreign), Companies, Corporate, Trusts, etc Special Advantages: a For Customer = Bi-Annual Profit Payment; Withdrawal Facility b Shariah = Meets requirements for Shariah Compliance Additional Features: a Personalized Cheque books b Withdrawal Facility from ATM c Online deposit/ withdrawal facility as per bank's policy d Debit card e Utilities payment via ATM card f Mobile Banking g Call center facilities h 6-monthly profit payment i Free bank balance certificates (once in 6 months) j Taking stop payment/ hold mail/ standing instructions k Issuance of duplicate statement of account (as per Schedule of Charges) Personal financial consultancy services (regarding Shariah Compliant l products) m Choice of statement frequency (as per Schedule of Charges) Balance for Profit Calculation: Monthly Average Balance Frequency of Announcements: The first announcement shall be made at the end
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of December 2003) 9 Profit Payment Options: 6-Monthly 10 Weightages: Initially single weightage for product; Later weightages can be made according to tiers (Volume-wise) 11 Communication Process: Announcement on notice boards, and website 12 Banking Network: IBD's Branch only
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IANAT Account
For customers who are looking for a chequing account that gives them the ease of doing unrestricted number of transactions, we offer Al-Makhraj Ianat Account. With a minimum of only Rs. 10,000, Ianat Account may be opened. With all the features and facilities that this product offers, it is highly recommended for management of business funds.
Details of the product are as follows:

1 Minimum Deposit: Rs. 10,000 2 Minimum Monthly Balance: Rs. 10,000 Product to be availed by: Individuals & Joint Account Holders (Local and 3 Foreign), Companies, Corporate, Trusts, etc 4 Additional Features: a Personalized Cheque books b Withdrawal Facility from ATM c Online deposit/ withdrawal facility as per bank's policy d Debit card; Utilities payment via ATM card e Mobile Banking f Call center facilities g Free bank balance certificates (once in 6 months) h Taking stop payment/ hold mail/ standing instructions i Issuance of duplicate statement of account (as per Schedule of Charges) Personal financial consultancy services (regarding Shariah Compliant j products) k Choice of statement frequency (as per Schedule of Charges) 5 Banking Network: IBD's Branch only
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Al Makhraj Term Deposit

A minimum of only Rs. 25,000 is needed to invest money in Al-Makhraj Term Deposit. Choice of tenors can be made from a list of options namely 1, 3 & 6 months, 1, 2, 3 or 5 years. Profit payment options available to customers are monthly, quarterly and/ or at maturity. However, monthly profit payment and deposit product of 1 month are not available currently.
Details of the product are as follows:

1 Minimum Deposit: Rs. 25,000 2 Islamic Tools used in designing the product: Mudaraba/ Musharaka 3 Tenors Available: 1 mth, 3 mth, 6 mth, 1 yr, 2 yrs, 3 yrs & 5 yrs (1-month product to be made available later in a few months time) 4 Product to be availed by: Individuals & Joint Account Holders (Local and Foreign), Companies, Corporate, Trusts, etc 5 Special Advantages: a For Customers = Profit Payment Options customized to suit needs of customers; Minimum Deposit requirements lower than most banks so it is more accessible/ affordable for people b Shariah = Meets requirements for Shariah Compliance 6 Additional Features: a Call center facilities b Taking hold mail/ standing instructions for profit payments etc Personal financial consultancy services (regarding Shariah Compliant c products) 7 Frequency of Announcements: The first announcement shall be made at the end of the month of December 2003. 8 Profit Payment Options: Monthly/ Quarterly/ At Maturity (Monthly payment option to be made available later in a few months time) 9 Weightages: Different weightages based on tenors and profit payment options Communication Process: Announcement every month on notice boards, and 10 website
ONLINE BANKING
Muslim Commercial Bank provides the Online Banking Facility to its account holders all over Pakistan. Cash may be accepted at a branch for crediting accounts at
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An Internship Report another branch; a branch can also pay the Cheques by debiting the customers account at another branch. Following facilities are available at Muslim Commercial Banks Online Program for its customers: 1. Payments of Cheques. 2. Cash Receipts. Transfer of Funds through Cheques or Cash between Branches
MCB VIRTUAL BANKING

MCB Virtual Internet Banking offers you the convenience to manage and control your banking and finances when you want to, where you want to. MCBs Virtual Internet Banking facility is -Simple -Secure - Free of cost. With MCB Virtual Internet Banking you can access any of the banking services, 24 hours a day, 7 days a week and throughout the year.
What do we Offer
MCB Virtual Internet Banking offers a wide range of online services which makes your banking accessible anytime and from anywhere.
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 COMSATS Sahiwal setup as beneficiaries, maintaining accounts with
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Institute of Information Technology
An Internship Report 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. 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
How can you start?

1. Click on the register link on the MCBVirtual Banking page & complete the application form, suggest your MCBVirtual Internet Banking User ID choices and click submit. 2. Visit any MCB ATM, select the option Service Requests and on the next screen select Internet Banking Reg. Wait a while for the Registration to complete and the appropriate message will be displayed. 3. Check your registered email address for the registration confirmation containing your Virtual Internet Banking Password and Customer number. With your Customer Number handy, call the MCB Call Centre on (021) 111-000-622 to obtain your User ID. After verification User ID will be disclosed to you, enabling you to start using the MCB Virtual Internet Banking service.
Customers living abroad

For users living abroad, MCB Virtual Banking Registration is a three step process. 1. Fill out the registration form at our website.
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2. Send in the duly signed AUTHORITY LETTER at the address given

below: MCB Virtual Banking Department 9th Floor, Sheikh Sultan Trust Building, Beamount Road, Karachi-75530, Pakistan. After we receive your authority letter we will process your application and send you an email containing your password and customer number. After receiving your password call the MCB Call Centre at 111 000 (MCB) 622 to get your user-id.
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MARKETING STRATEGIES
To be successful, the company must do a better job than its competitors of satisfying target consumers. Thus, marketing strategies must be geared to the needs of consumers and also to the strategies of competitors. In case of MCB, there is a separate department known as Marketing Department at Head Office, which is responsible for the designing of competitive marketing strategies. This department formulates marketing strategies by a thorough analysis of competitors. It constantly compares the value and customer satisfaction delivered by its products, prices, channels, and promotion with those of its close competitors. In this way it discerns areas of potential advantage and disadvantage. After the formulation of marketing strategies, the details of marketing mix are planned and then transmitted to all branches. MARKETING MIX Marketing Mix is a set of controllable tactical marketing tools that the firm blends to produce the response it wants in the target market. These marketing tools are also known as Four Ps. These are as under:
Product
It means the good-and-services combination the company offers to the target market. MCB offers a wide range of financial products and advice for Personal and Corporate Customers. One can also apply on-line for many of MCBs Online Services. Customers can access their accounts using simple and convenient MCB Virtual Internet Banking services. Below is the catalogue of Products and Services offered by MCB. In previous chapter we discussed very briefly products.
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Price
It is the amount of money; customers have to pay to obtain the product. MCB charges its price in the form of interest rates, mark ups, commission and various other charges. While deciding about charging rates, it takes care that the rates should be in compliance with the regulations of SBP as well as suitable enough to gain the competitive edge.
Place:
It includes those activities of an organization that makes the product available to target consumers. MCB has taken various steps, to make the availability of its products and services easy for its customers. At present it has a network of over 900 branches all over the country, over 750 of which are Automated Branches, over 214 ATMs in 35 cities nationwide and a network of over 12 banks on the MNET ATM Switch. It has also introduced Virtual Banking to provide convenience of banking on Internet.
Promotion:
It means those activities that communicate the merits of the product and persuade target customers to buy it. The bank for the promotion of its products and services spends a heavy sum of money. It offers different schemes from time to time to make its products and services more attractive for the consumers.
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SWOT ANALYSIS
STRENGTHS
We make every effort to exceed customers expectations through superior and wide array of financial services on the challenge of understanding their need and aspirations, both realized and unrealized, so that we can satisfy them with surety and security. 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. 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. 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. The joining of experienced people, advanced management, advance setup and facilities gave MCB an edge over its competitors.
WEAKNESSES
The majority of people are not well aware of the products of MCB. Therefore it should advertise extensively. There are no proper HR policies, In MCB there is lack of specialized skill because of job rotation policy of human resource department also. The bank should concentrate upon increasing its abilities on individual service basis.
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OPPORTUNITIES
As economy is growing, there is more investment demand in Pakistan. Banks have opportunity to enhance their business. The number of salaried persons is increasing with the economy structure of the country. This creates opportunity in consumer financing.
THREATS
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. 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. The State Bank of Pakistan often imposes various restrictions on banks. Therefore, none of banks is independent in policy making and can launch any product without the permission of the State Bank of Pakistan.
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FINANCIAL ANALYSIS
INCREASING TREND OF PROFIT AND EQUITY
35000 30000 25000 20000 PKR mm 15000 10000 5000 0
Net Profit Equity
2003
2004
2005
2006
Years
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BALANCE SHEET
MCB Bank Limited

Consolidated Condensed Interim Balance Sheet
As at March 31, 2008 Unaudited 2008 Audited 2007 Note March 31, December 31, ---------- (Rupees in '000) ----------
Assets Cash and balances with treasury banks Balances with other banks Lending to financial institutions Investments-net Advances-net Operating fixed assets Deferred tax assets-net Other Assets-net Total Assets Liabilities Bills payable Borrowings Deposits and other accounts Sub-ordinate Loans Liabilities against assets subject to finance lease Deferred tax liabilities net Other liabilities Total Liabilities
37,885,070 1,620,737 5,586,228 88,144,002 229,835,445 16,269,138 19,823,235 399,163,855 9,506,255 15,435,553 301,639,525 11,002,254 13,107,330 340,790,917
39,683,883 3,867,591 1,051,372 115,358,590 218,959,786 16,082,781 17,896,838 412,900,841 10,479,258 39,406,831 292,088,347 479,232 1,183,586 11,716,465 355,353,519
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Net Assets Represented By: Share capital Reserves Un-appropriated profit Monority interest Surplus on revaluation of assets - net of tax
58,372,938
57,547,322
6,282,768 34,428,786 7,527,623 48,239,177 62 48,239,239 10,133,699 58,372,938
6,282,768 34,000,927 7,054,472 47,338,167 63 47,338,230 10,209,092 57,547,322
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PROFIT AND LOSS ACCOUNT MCB Bank Limited

Consolidated Condensed Interim Profit and Loss Account (Un-audited)
For the three months period ended March 31, 2008
---------- (Rupees in '000) ----------
Quarter ended March 31, 2008
Quarter ended March 31, 2007
Mark-up / return / interest earned Mark-up / return / interest expensed Net Mark-up / interest income Provision / (reversal) against loans and advances Bad debts written off directly Net Mark-up / interest income after provisions Non Mark-up / interest income Fee, Commission and brokerage income Income earned as trustee to various funds Dividend income Income from dealing in foreign currencies Gain on sale of securities net Gain / (loss) on trading in government securities Other income Total non mark-up / interest income
8,189,576 1,992,374 6,197,202 615,220 615,220 5,581,982
7,617,338 1,564,738 6,052,600 192,900 54 192,954 5,859,646
753,251 5,177 86,923 146,917 610,456 15,268 292,304 1,910,296 7,492,278
578,588 288 111,745 221,345 236,031 (33) 113,170 1,261,074 7,120,720
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An Internship Report Non mark-up / interest expenses Administrative expenses Other provisions / (reversal) Other Charges Total non mark-up / interest expenses Share of profit of associated undertaking Extra ordinary / unusual item Profit before taxation Taxation - current - prior years - deferred Share of tax of accociated undertaking Profit after taxation Share of profit attributable to minority interest Profit attributable to ordinary shareholders Earning per share basic and diluted Rupees 1,696,905 75,053 1,771,958 26,597 5,746,917 5,746,917 2,088,956 (230,000) (121,646) 3,032 1,740,342 4,006,575 (3) 4,006,572 6.38 1,884,005 60,043 1,744,048 1,576,600 5,334,332 5,334,332 1,605,523 (459,952) 356,543 15,929 1,418,043 3,816,289 (1) 3,816,288 6.07
CASH FLOW STATEMENT MCB Bank Limited

Consolidated Condensed Interim Cash Flow Statement (Un-audited)
For the three months period ended March 31, 2008 March 31, 2008 March 31, 2007
------- (Rupees in '000) --------
Cash flows from operating activities Profit before taxation Less: Dividend income Adjustments for non-cash charges Depreciation Amortisation 188,236 48,299 149,157 46,500 5,746,917 (113,520) 5,633,397 5,334,332 (269,405) 5,064,927
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Provision against loans and advances Bad debts written off directly - 54 Un realized (gain) / loss on revaluation of 'held-for-trading' securities (15,690) 836,065 6,469,462 (Increase) / decrease in operating assets Lendings to financial institutions Held for trading securities Advances - net Other assets - net Increase / (decrease) in operating liabilities Bills payable Borrowings from financial institutions Deposits Other liabilities (972,803) 9,551,178 (824,137) 25,538 23,346,495 (219,230) ( 23,971,278) (6,227,039) (4,534,856) 114,024 (1,858,145) 4,051,606 (11,765) (2,978,659) (48) 388,563 5,453,490 615,220 192,900
( 11,490,879) 11,227,012 ( 17,769,856) 12,288,194
( 16,217,040) 16,925,764 ( 27,517,434) 34,667,448 Payments of provision against off-balance sheet obligations Income tax paid Net cash flows from operating activities Cash flows from investing activities Net investments in available-for-sale securities Net investments in held-to-maturity securities Dividend income received Investment in operating fixed assets - net of disposals Net cash flows from investing activities Cash flows from financing activities Payment of sub-ordinated loan Dividend paid Net cash flows from financing activities Exchange difference on translation of net investment in foreign branches Increase in cash and cash equivalents Cash and cash equivalents at January 1 16,646 (4,045,667) 43,551,474 (7,103) (2,848,607) 3 9,115,635 (479,232) (1,667,194) (2,146,426) (638,976) (539,313) (1,178,289) 27,010,046 69,714 63,341 (422,892) 26,720,209 (36,682,113) 2,542,903 51,836 (572,416) (34,659,790) (1,118,662) (1,670,873)
( 28,636,096) 32,996,575
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Cash and cash equivalents at March 31 39,505,807 3 6,267,028
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RATIO ANALYSIS
MCB Bank Ltd. Year Ended December 31 Nine-Month Period Ended September 30 2003 2006 (percentages) Profitability Ratios Return on average total assets (4) Return on average net worth (4) Dividend payout ratio(5) Net interest margin (4)(6) Gross loan to deposit ratio (4)(7) Cost income ratio(8) Capital Adequacy (9) Total capital adequacy ratio Tier-I capital adequacy ratio Tier-II capital adequacy ratio Asset Quality Gross non-performing loans as a percentage of gross Loans Coverage ratio(10) 61.92 75.73 93.10 96.72 10.58 6.14 4.46 4.25 11.61 9.67 8.45 3.16 6.59 3.07 12.79 9.53 3.26 15.92 12.93 2.99 0.87 0.96 3.19 3.85 52.01 57.47 8.30 76.25 30.73 29.95 28.38 64.82 27.50 25.00 40.22 4.66 3.78 6.52 49.04 65.14 82.04 67.33 65.95 33.61 (unaudited) 2004 2005
Notes: (1) Interest earned includes dividends and capital gains earned on equity and preference shares and units of mutual funds. (2) Per equity share data for the years ended December 31, 2003 and 2004 is based on the number of equity shares outstanding as of December 31, 2005. Per equity share data for the six-month period ended June 30, 2005 is based on the number of equity shares outstanding as of June 30, 2006.
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(4) June data has been presented on an annualized basis.
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INTERNSHIP ACTIVITIES
OBECTIVE OF INTERNSHIP
This internship was the part of my study course, so objective of this internship was to learn and gain some practical experience. During my MBA program, I studied many courses about finance, management etc. Here my aim was to see the application of this bookish knowledge and its practical implementation. How it is useful in practical life. I saw the differences in bookish knowledge and its application. In all jobs related to finance, there is involvement of banks. So my aim was to learn how banks deal with corporate and general information about rules and regulation of banks. My second objective of this internship was to learn about general banking, as customer. I tried to get experience, how to work with people of different age, different educational background, and different interests. How I can be a best team player, how to interact with officer and deal with subordinates.
Activities during internship

Date Description 03 July to I worked in Clearing department. 05 July Supervisor Here Mr. Asif Butt
major activities were to receive the cheques and send these for clearing to other bank after stamping and keeping in
record. 07 July to I worked in remittance department. Here Mr. M Imran 12 July we issued, DD, Pay order, TT, and like Mr. M Imran other responsibilities. 14 July to Account opening is the entrance to bank. 19 July In this department I worked on different old account and open new account for
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An Internship Report individual. 21 July to I learn some about advances and learn Mr. Asif Butt 26 July about locker services new. 28 July to I worked in cash department up to some Mr. M Sadiq 02 Aug extend I pay Zakat and pensions to the people. 04 Aug to Again I worked in remittance department. Mr. M Imran 09 Aug Here we issued, DD, Pay order, TT, MT and like other responsibilities.
NEW KNOWLEDGE ACQUIRED

As this was my first experience in any bank, so all working of bank was new for me. Some of the new work we write down in earlier pages briefly now I just writing summary of these work.
HOW OPEN AN ACCOUNT

Firstly we require NIC copy and photo graph then we fill account opening form then we verify NIC from NADRA after these requirements, bank will open the account and sends letter of thanks to its customer. When account holder comes with letter of thanks bank will issue chequebook to account holder. If chequebook is lost the account holder has to give written application for the stop payment of cheques of that chequebook and fill a form for issuance of new chequebook.
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CLEARING DEPARTMENT
Clearing is used to pay or receive payments to other banks. There are two types of clearing. Inward clearing Outward clearing
INWARD CLEARING
Cheques of our branch that are deposited at other banks are brought to us. This is called inward clearing. In inward clearing we DEBIT a/c of our a/c holder and CREDIT other branch.
OUTWARD CLEARING
In outward clearing cheques of other banks are presented in our branch. In it we check certain factors such as words and figure difference, date of cheque etc. 3 stamps of MCB stamped in these cheques Clearing stamp Crossing stamp Payees a/c credited stamp In outward clearing we DEBIT suspense a/c and CREDIT a/c no. of our a/c holders
CHEQUE RETURN IN OUTWARD CLEARING

If cheque is returned in outward clearing we make an entry of the returned cheque in the register and give it back to our customer after having his signatures in the register.
CHEQUE RETURN IN INWARD CLEARING

If the cheque is returned in inward clearing, we fine our a/c holder as a penalty and also make an entry in the register.
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INTER BRANCH CREDIT TRANSACTION (IBC)

IBC advice is made for both inward and outward clearing. With IBC we online transfer money.
CASH DEPARTMENT
Cash is the key component of banking operations handled by the front desks. The cash dealing staff and infrastructure provided as such must be presentable and major emphasis must include quality service to the customers. Cash must be placed in fire proof safes/strong room overnight strictly in accordance with the limits allowed by Head Office and well within the Insurance limits. The cash is withdrawn from safes in the morning keeping in view the business of the branch and expected transactions. Insurance limit of Cash on Counter must be adhered to meticulously.
CASH RECEIPTS / PAYMENTS

Cash Received on counter will be entered in Receiving Cashier Book and metal stamp RECEIVED CASH shall be affixed on both the portions of Pay-in-slip alongwith signatures of receiving officer. Customers portion will be handed over to him after joint signature of the supervising officer. The paying cash officer will make payment of cheques and other instruments which are passed by authorized signatory after entering into record keeping register. Metal stamp PAID CASH shall be affixed on the cheques/instrument.
CASH ON HAND
After the close of business hours, the Cash Officer shall sum up the days transactions. After agreeing the total of Receipts/Payments, the cash on hand shall be tallied with Cash Balance Book both shall be jointly signed by the Operation Manager/Manager and cash officer.
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RECOMMENDATIONS
Last years performance shows that the Muslim Commercial Bank is increasing its profitability and its deposits. MCB should also capture the government account. 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. Financially unsophisticated people might feel bank accounts, cheque books, credit cards, etc. are difficult to understand and to keep control thereof. To manage its all branches MCB should establish the intranet system in all branches. MCB should increase the line of product to attract the new clients. Those activities, which a person can perform, should be integrated to save time.
Some personal sector customers do not prefer 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 the branch or some important shopping plazas.
Arguably, there has been a little encouragement from banks to persuade people
to open a bank account. Opening hours are restricted, and there is a commonly held belief that banks operate for their convenience and not for the convenience of the customers.
A short term promotional technique is to offer price incentives, for example, low
interest rates on advances or limited issue high profit bearing term deposits.
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CONCLUSION
MCB is the one of the best bank in local banking sector. Its growth rate is highest. There are some flaws but MCB has potential to become top ranking bank in Pakistan banking industry. My basic purpose of this internship is to learn about the working of bank. During my internship I got knowledge about general banking and advances. Staff member of MCB are cooperative with me and really help me to achieve my objective.
BIBLIOGRAPHY
http://www.mcb.com.pk http://www.sbp.org.pk http://www.paksearch.com Staff of Muslim Commercial Bank Annual reports of Muslim Commercial Bank
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An Internship Report

Muslim Commercial Bank

THE MUSLIM COMMERCIAL BANK LIMITED

AWARDS & ACCOLADES

Euro money Awards

Best Bank in Pakistan Award 2006:

Best Bank in Pakistan Award 2005:

Best Bank in Pakistan Award 2004:

Best Bank in Pakistan Award 2003:

Best Bank in Pakistan Award 2001:

Best Domestic Bank Award 2000:

Asia Money Awards

The Best Domestic Commercial Bank Award 2004:

Name of External Auditors

PRESIDENT & CHIEF EXECUTIUVE

EVP SVP VP AVP GRADE-1

GRADE-2 GRADE-3 ASSISTANTS

OPERATION AREA MANAGER

Cash/De posit Dept.

Remitta nces Dept.

Date base Admins Dept.

Acc. Opening Dept.

COMMERCIAL BRANCH BANKING GROUP

HEAD OFFICE AT GLANCE

Province Punjab Sindh Balochistan NWFP & AJK

Branches 823 278 35 235

Automation & Modernization

Employees Management Relation

SELF SUPPORTING SCHEME

Minimum amount of loan Rs. 5,000/=

NIGHT BANKING SERVICES

MCB RUPEE TRAVELERS CHEQUE

MCB ATM SERVICES

MCB ATM Gold Card:

Per Month 35% 34% 33% 32% 31% 30%

2.91% 2.83% 2.75% 2.66% 2.58% 2.5%

Bill Payments Features

Special Term Deposit

Foreign Currency Accounts Saving Accounts

Demand Drafts (DD)

With holding tax

An Internship Report With holding tax

TELEGRAPHIC TRANSFER (TT)

No. of TT Rs 20 Postage and Rs 180 for Fax

Mail Transfer (MT)

Cash Paid Sheet

CASH BOOK BALANCE

AGRICULTURE SECTOR FINANCING

AGRI FINANCING PRODUCTS

SHADABI PLAN (AGRI REVOLVING FINANCE)

KHUSHALI SCHEME (AGRI DEVELOPMENT FINANCE)

TRACTOR FINANCE SCHEME

Al-Makhraj Saving Account

Details of the product are as follows:

Al Makhraj Term Deposit

Details of the product are as follows:

MCB VIRTUAL BANKING

How can you start?

Customers living abroad