Aamina Zulfiqar(017)

8/13/2019 Aamina Zulfiqar(017)

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MCB Internship report

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INTERNSHIP REPORT ON

MCB BANK Limited

Internship Report submitted to the Faculty of Commerce &Accountancy in Partial Fulfillment of the

Requirements for the Degree of Mater in commerce

By:

Name of Student: Sana javaid

Roll Number: 12052054-045

Date of Submission: 15 september 2013

UNIVERSITY OF GUJRAT

Name of program coordinator-----------------------------

Signature of program coordinator--------------------------
http://www.uog.edu.pk/index.http://www.uog.edu.pk/index.


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University of Gujrat

(G.T Road SciencesCampus)

Faculty of Commerce &Accountancy

Course Title: Internship (Report based on Internship)

Course Code MGT-403


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2. ACKNOWLEGEMENT

With acknowledging the helping hands, this report seems like a candle without flame and light.In the very first, I am thankful to Almighty Allah, who guides me in darkness and helps me tocope with difficulties.

I am thankful to my parents who supported morally to help me in completing my internshipsuccessfully. I am also thankful to Mr. Sallah-ud-Din Euuby(Branch Manager) who given meopportunity to learn the whole banking process practically.

I am thankful to all the staff of MCB bank for their warm assistance and guidance during myinternship period.

I especially acknowledge to the following persons who support, motivate, encourage during myinternship.

I am thankful to my elder brother, Mr. Aamir for their motivation and encouragementduring myAssociate Degree(Commerece& Finance) program.


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TABLE OF CONTENTS

ParticularsPage No.

Acknowledgement 04

Executive summary 05Introduction to report 09

History and background 10

Nature of the Organization 16

Purpose & Scope

Vision Statement 17

Mission Statement17

Our Values 18

Business Volunme19

Awards 21

Products and Services 22

Pest analysis 27Contribution of MCB toward Economic development 29Management Committee 30

Board Of Directors 33

Management structure of MCB 34

Organizational Hierarchy of MCB 35

Management Levels 35

Organizational set up of MCB 36

Organizational structure of MCB 36


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Placing strategies of MCB 37

Promotion strategies of MCB 38

Fields of Activities 39Departments of MCB 42

Clearing Process (Flow chart) 43

Introduction of department 49

Numers of Employes 60

Duties of the Employees 60

Main Offices/ head office 63

Comment on Organization Structure 64

Internship Activities 66

(a). Work Done By Me 67

Introduction to the Report 68Weekly Time table 69

Competitors of MCB 70

Objective of organization on MCB 74

General Banking Department 77Summary of learning 78

Countrywide Branch Networ 79

Swot Analysis 80

Recommendations and suggestions 82

Conclusion 85


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references 87

4. EXECUTIVE SUMMARY

The banking structure in Pakistan comprises of the following types, State Bank of Pakistan,

Commercial Bank of Pakistan; Exchange Banks, Saving banks, Cooperative banks, specialized

credit institutions. The state bank of Pakistan is the Central bank of the country and was

established on July 01, 1948. The network of bank branches now covers a very large segment of

national economy. The State Bank of Pakistan issues the shares of these periodically. Bank

employees and other common peoples can also purchase these shares and earn profit. MCB wasincorporated under companies act 1913 on 9th July; 1947 .The bank transferred its registered

office to Karachi, where the Head Office is presently located.

In April 1991, MCB became Pakistan s first privatized bank. The bank has corporate branch at

Shah rah-e-Faisal Karachi (SFK). The bank is using SWIFT for transfer of information about

imports and exports. MCB SFK branch has Currently Following three Departments General

Banking Department, Advances Department & Foreign Exchange Department. To open an

account the customer has to meet the general banking manager with an introducer. The procedure begins with the punching of account opening form to the customer file i.e. customer s

master file. Before closing any account, bank send letter to the account holder for informing him

that his account is going to be closed.

In remittance department like any other bank MCB also have instruments for transferring of

money, Telegraphic Transfer, Mail Transfer. 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, and ledger of

account cash received voucher sheet Cash paid voucher sheet, Paying-in-slip, Cheque Book,

Cash balance book. The clearing in Karachi at MCB or other banks is being done through NIFT

(National Institute of Facilitation Technology).


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5.1 Introduction to the Report

The basic purpose behind the preparation of an internship report is to make the student job down the experiences of the internship and discuss the understanding of theoperations of the organizations.

The following pages discuss my experiences at MCB, Circular Road Branch. Nevertheless, before I proceed, I would like to mention that the experience of working ina small, newly established branch was in itself a treat. All the employees were extremelycooperative and accommodating. It was for the first time that the branch had theexperience of interns and as much as I was learning, all the employees under whom Iworked were learning from the experience as well.

5.2.1 HISTORY AND BACKGROUND

MUSLUM COMMERCIAL BANK:

Background of MCB

Before separation of Indo Pak, the need for more Muslim banks was felt. And Muslims having

strong financial capacity were thinking to invest in this sector as well. This was the idea which

paved the way for setting up MCB Bank Ltd known as MCB. This was the third Muslim bank in


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the subcontinent.

History

This bank was incorporated under companies act 1913 on 9th July, 1947 (just before partition)

at Calcutta. But due to changing scenario of the region, the certificate of incorporation was

issued on 17 th August, 1948 with a delay of almost 1 year; the certificate was issued at

Chittagong. The first Head office of the company was established at Dacca and Mr. G.M.

Adamjee was appointed its first chairman. It was incorporated with an authorized capital of Rs.

15 million.

After some time the registered office of the company was shifted to Karachi on August 23rd,

1956 through a special resolution, now recently the Head office of MCB has been transferred to

Islamabad in July, 1999 and now Head office is termed as Principle Office.

This institute was nationalized with other on January 1st,1974 . At that time it had 506 branches

and deposits amounting to Rs. 1,640 million. Although. MCB has a reputation of a conservative

bank but nationalization also left its effects on this institute as well and by end of year 1991 in

which it was privatized the total number of branches were 1.287 and deposits amounting to as

high as Rs. 35,029 million.

Privatization

When privatization policy was announced in 1990 , MCB was the first to be privatized upon

recommendations of World Bank and IMF. The reason for this choice was the better profitability

condition of the organization and less risky credit portfolio which made'' it a good choice for

investors. On April 8th, 1991, the management control was handed over to National Group (the

highest bidders). Initially only 26% of shares were sold to private sector at Rs. 56 per share.

After privatization

Ten years after privatization, MCB is now in a consolidation stage designed to lock in the gains

made in recent years and prepare the groundwork for future growth. The bank has restructured its

asset portfolio and rationalized the cost structure in order to remain a low cost producer.


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After privatization, the growth in every department of the bank has been observed. Following are

some key developments:

Launching of different deposit schemes to increase saving level.

Increased participation on foreign trade.

Betterment of branches and staff service level.

Introduction of Rupee Traveler Cheques & Photo Credit Card for the first time in

Pakistan.

In short 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 Bank s loan por tfolio 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 non-performing loans via improved risk

management processes.

NATIOINALIZATION:

In January 1974, the government of Pakistan nationalized MCB following the banks

(Nationalization) Act 1974, subsequently, in June 1974, Premier Bank limited merged with

MCB.

BussinessVolume


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MCB Bank Ltd (Formerly Muslim

Commercial Bank)

Type Private

Founded 1947

HeadquartersRegistered Office: Islamabad , Principal Office:Karachi Pakistan

Key people Mian Mohammad Mansha (Chairman)

Industry Banking Capital Markets

Products Loans, Credit Cards , Savings, Consumer Bankingetc.

Revenue PKR 31.787 Billion (2007 )[1]

Net income PKR 15.266 Billion (2007 )[1]

Website www.mcb.com.pk
http://en.wikipedia.org/wiki/Types_of_business_entityhttp://en.wikipedia.org/wiki/Types_of_business_entityhttp://en.wikipedia.org/wiki/Private_companyhttp://en.wikipedia.org/wiki/Private_companyhttp://en.wikipedia.org/wiki/1947http://en.wikipedia.org/wiki/1947http://en.wikipedia.org/wiki/Islamabadhttp://en.wikipedia.org/wiki/Islamabadhttp://en.wikipedia.org/wiki/Karachihttp://en.wikipedia.org/wiki/Karachihttp://en.wikipedia.org/wiki/Mian_Mohammad_Manshahttp://en.wikipedia.org/wiki/Mian_Mohammad_Manshahttp://en.wikipedia.org/wiki/Industryhttp://en.wikipedia.org/wiki/Industryhttp://en.wikipedia.org/wiki/Bankinghttp://en.wikipedia.org/wiki/Bankinghttp://en.wikipedia.org/wiki/Capital_Marketshttp://en.wikipedia.org/wiki/Capital_Marketshttp://en.wikipedia.org/wiki/Product_(business)http://en.wikipedia.org/wiki/Product_(business)http://en.wikipedia.org/wiki/Credit_Cardhttp://en.wikipedia.org/wiki/Credit_Cardhttp://en.wikipedia.org/wiki/Credit_Cardhttp://en.wikipedia.org/wiki/Revenuehttp://en.wikipedia.org/wiki/Revenuehttp://en.wikipedia.org/wiki/Pakistani_rupeehttp://en.wikipedia.org/wiki/Pakistani_rupeehttp://en.wikipedia.org/wiki/Muslim_Commercial_Bank#cite_note-Welcome_to_MCB_Bank_Limited-0http://en.wikipedia.org/wiki/Muslim_Commercial_Bank#cite_note-Welcome_to_MCB_Bank_Limited-0http://en.wikipedia.org/wiki/Muslim_Commercial_Bank#cite_note-Welcome_to_MCB_Bank_Limited-0http://en.wikipedia.org/wiki/Net_incomehttp://en.wikipedia.org/wiki/Net_incomehttp://en.wikipedia.org/wiki/Pakistani_rupeehttp://en.wikipedia.org/wiki/Pakistani_rupeehttp://en.wikipedia.org/wiki/Muslim_Commercial_Bank#cite_note-Welcome_to_MCB_Bank_Limited-0http://en.wikipedia.org/wiki/Muslim_Commercial_Bank#cite_note-Welcome_to_MCB_Bank_Limited-0http://en.wikipedia.org/wiki/Muslim_Commercial_Bank#cite_note-Welcome_to_MCB_Bank_Limited-0http://en.wikipedia.org/wiki/Websitehttp://en.wikipedia.org/wiki/Websitehttp://www.mcb.com.pk/http://www.mcb.com.pk/http://en.wikipedia.org/wiki/File:MCB_Logo.JPGhttp://www.mcb.com.pk/http://en.wikipedia.org/wiki/Websitehttp://en.wikipedia.org/wiki/Muslim_Commercial_Bank#cite_note-Welcome_to_MCB_Bank_Limited-0http://en.wikipedia.org/wiki/Pakistani_rupeehttp://en.wikipedia.org/wiki/Net_incomehttp://en.wikipedia.org/wiki/Muslim_Commercial_Bank#cite_note-Welcome_to_MCB_Bank_Limited-0http://en.wikipedia.org/wiki/Pakistani_rupeehttp://en.wikipedia.org/wiki/Revenuehttp://en.wikipedia.org/wiki/Credit_Cardhttp://en.wikipedia.org/wiki/Product_(business)http://en.wikipedia.org/wiki/Capital_Marketshttp://en.wikipedia.org/wiki/Bankinghttp://en.wikipedia.org/wiki/Industryhttp://en.wikipedia.org/wiki/Mian_Mohammad_Manshahttp://en.wikipedia.org/wiki/Karachihttp://en.wikipedia.org/wiki/Islamabadhttp://en.wikipedia.org/wiki/1947http://en.wikipedia.org/wiki/Private_companyhttp://en.wikipedia.org/wiki/Types_of_business_entity


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MCB BANK TODAY

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 growing tree evergreen, strong, andfirmly rooted.

Foreign trade:

The bank conducted import business during the year amounting to RS. 54.0 billion as compare to

RS. 56.4 Billion In 2005. The export business slightly improves to RS. 36.9 Billion From RS.

35.1 Billion. In 2006. Home remittances decline to RS. 16.7 Billion From 30.7 Billion the

decline in home remittances business was due to freezing of Foreign Currency Accounts, which

has affected the confidence of Pakistanis working overseas.

Year 2006 compliance:

MCB s strength lies in providing a technological base at t he gross root level of the society with a

challenge to educate and assimilate such systems across vast cultural and economic backgrounds.

With over 768 automated branches, 263 online branches, over 151 MCB ATMs in 27 cities

nationwide and a network of over 16 banks on the MNET ATM switch, MCB continuously

innovates new products and services that harness technology for the customer s benefits .

MCB PHILOSOPHY : MCB Bank knows the best to deal with its customers and thushas a customer oriented philosophy. The MCB philosophy in their words is described belowFor us, you are not just a set of numbers; you are a valued customer whom we know byname.

5.2.2 Nature of the Organization

Concludes that the nature of organizations, as in all spheres of activity involving humans, is tohave unwritten rules and procedures of the game. Cites a global consumer products companywhose three top-level policies are listed out in full. Spotlights a Figure showing written rules todamaging behaviour.Highlights, in a shaded box, the rules of the game appraisal, with six steps.Concludes unwritten rules cannot and should not be eliminated but do need to be brought backinto step with the game's written rules.

The nature of data, information and knowledge exchanges in business processes: implications for process improvement and organizational learning


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(c) take steps to gain that competence under educational supervision, and

(d) become better acquainted with the types of work settings in which such competence can be

applied.

Scope

This study will facilitate the students regarding the working of Banking sector of Pakistan

because most of the teachers during their lectures use the examples of Banks like MCB, National

Bank, UBL, Bank Alfalah and many others, students should study this report so that they must

grasp the functioning of such Banks.

Objectives

:I worked as an internee in MCB Circular Road. The main objectives to study in MCB were:

To get some experience in working with well reputed organization.

To gain knowledge about the professional environment of the bank.

To know about the technology utilized in the banks.

To deal and manage with the situation of stress.

Research Methodology

There are mainly two methods that are used for the collection of data.

Primary Data:

Observation of functions of Branch operations on the spot.

Observation of different processes of Branch on the spot.

Secondary Data: .Different type of booklets of the Bank.

Annual reports

Journals


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Newspapers

Internet is very helpful for me to study more about banking sector of Pakistan

Summary

This is the first chapter of the report containing the detail introduction of the report.

Internship training program during Master in Business administration Program is necessary for

the partial fulfillment of the completion of Degree of Master in Business Administration.

Internship will enable interns to integrate and use my knowledge and skills from the classroom.

This study will facilitate the students regarding the working of banking sector of Pakistan.For

achieving my purposes, objectives and for the preparation of the internship report I required

some kind of data, I used both methods of data collection that are primary sources and secondary

sources for that purpose .

Challenging and Changing the Way you Bank.

MCB Banks team of committed professionals is dedicated to maintaining long termcustomer relationships through outstanding service and convenience.


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Overall organization and functions of organization in Pakistan:

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 reputationof 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, developinga large and stable deposit base.

OUR VALUES

Trust:

We are the trustees of public funds and serve with integrity & commitment. Ethical behavior is

of critical importance to us. We adopt full compliance with internal and external policies and

procedures, operating within the legal framework.

Customer focus:

We continuously seek to exceed our customer s expectations, forging and maintaining long term

relationships.

Innovation:

We strive to be the market leaders in innovative products and services offering customized

financial solutions with flawless execution.

Teamwork:


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The diversity of our people is our strength. We inspire and challenge each other working together

to achieve synergy.

Achievement:

Our people are our most valuable asset. We are committed to a result oriented culture. Our goals

are clear and merit is the only criterion for reward.

Social responsibility:

As responsible citizens we contribute to the social welfare of the community we live in.

5.2.3 Business volume

Business volume in terms of Revenue, Assets, Deposits, Advances and Investment is as under.

o Total Revenue (Interest Income + Non Interest Income)

Years 2009 2008 2007 2006 2005

Total Revenue 12,017,858 12,417,459 12,824,663 8,483,996 6,907,542

-

5,000,000

10,000,000

15,000,000

05Years 06070809

Total Revenue


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Present Status:

In 2007, MCB reported a profit after tax of PKR16.4 billion (US$270 million) and

generated a return on average equity of 38% and a net interest margin of 8.08%. The Bank sasset quality is strong with a gross NPL ratio of 4.7% and provision coverage of 100%.

During the last fifteen years, the Bank has concentrated on growth through improving servicequality, investment in technology and people, utilizing its extensive branch network, developinga large and stable deposit base and managing its non-performing loans via improved riskmanagement processes.AWARDS Euromoney Awards and the Asia Money Awards.

MCB won Best Bank in Asia award in 2008. MCB also won the "Best Bank inPakistan" award in 2008, 2006, 2005, 2004, 2003, 2001, 2000. In addition, MCB also has the

distinction of winning the Asia Money award in 2009, 2008, 2006, 2005 & 2004 for being "The

Best Domestic Commercial Bank in Pakistan".

BEST BANK IN PAKISTAN AWARD 2003 BEST

BANK IN PAKISTAN AWARD 2002 BEST DOMESTIC

BANK AWARD 2000 ASIA MONEY AWARDS

THE BEST DOMESTIC COMMERCIAL BANKAWARD 2005 THE BEST DOMESTIC COMMERCIAL BANK AWARD 2004

5.2.4 Product/Services

Consumer (personal) banking: The products and services offered by MCB as a consumer bank

are as follows:

1. Online services


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Profit is paid on a half yearly basis

Cash deposit and withdrawal facility

Withdraw cash through Pakistan s largest ATM network.

Use account to pay their bills 24 hours a day, 7 days a week.

Rs 50/- or 5/- if it is in other Currency will be charged

Current Account

Average balance of 10000/- is required

Average balance of 500/- is required

Cash deposit and withdrawal facility


Use account to pay their bills 24 hours a day, 7 days a week.Basic Banking Account:

Account has been introduced to facilitate the low income group

Account is a current and can be opened with a minimum initial deposit of Rs. 1000/-

only.

Account holders will be allowed 4 withdrawal transactions (cash or clearing) each month.

No minimum balance maintenance requiremen

Khushali Bachat Account:

Minimum Rs 2500/- is required

Profit is paid on account on a half yearly basis.


Account holdersEnhanced Saving Account

Enhanced Saving Account

Can be opened with a minimum deposit of Rs.5,000

Profit calculated on an average balance maintained by customer during that month.

Following slabs used for profit calculation:

If Average Balance > Rs. 20,000: PLS rates will apply.

If Average Balance < Rs.20,000: 4.0% p.a.


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The rates mentioned above are expected and shall be revised at least every six months.

will be allowed 4 withdrawal transactions (cash or clearing) each month. CLEARING

It is a process where different instruments are sent for clearance if they are other than the

existing branch of Bank and come for clearance from different branches or banks.

TYPES OF INSTRUMENTS:

Following instruments can be presented at the clearing department:

Cheques

Demand drafts

Pay orders

FDD

TYPES OF CLEARING:

Intercity Clearance:

When a cheque comes for clearance that is outside the range from Kamoki to Khariyan.

It will be under the intercity clearing. This type of clearing has some charges.

Local Clearance:

When a cheque comes for clearance that is inside the range i.e. Kamoki to Khariyan. It

will be under the local clearing. This type of clearing is free from all charges.

3. Loans

i. Business Sarmaya

ii. Personal Loan

iii. Pyara Ghar

iv. Car4U

4. Cards

i. Smart Card / Debit Card

ii. MCB Visa

5. Traveler's cheque

i. Rupee Traveler's cheques


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ii. Gift Cheques

CHEQUES

Name of the Bearer

Date

Amount in Words and Figure

Three signatures or thumb impressions

TYPES OF CHEQUES

Open Cheques

By Name ChequeSelf Cheque

Order Cheque

Crossed Cheques

6. Remittance

i. Overseas Remittance

7. Branches & ATMs

i. ATMs Locator

ii. Online Branches

iii. Branch Network

8. MNET switch

i. M NET Switch

REVOLUTIONS IN MCB

Incorporated in Calcutta, India on 9 thJuly 1947

First chairman Mr. G.M Adamjee Head

office was shifted to Dhaka in Augu1948


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Head office was shifted to Karachi in august 1956

Nationalized on 1 st January 1947

Privatized on 8th

April 1991

Fist chairman after privatization Mr. MianMuhammad Mansha

Head office transferred to Islamabad 1991

5.2.5 PEST ANALYSIS

A broad view of market is important when management is interested in introducing better

services for customers. Rapid technological change, global competition and the diversity of

buyers preferences in many markets require the constant attention of the market vouchers to

identify promises business opportunities, see the shifting requirements of the buyers, evaluate

changes in competitors positioning and guide the choice of which buyers to target and classify

them according to respective segments. Identification of external and macro factors that

influence buyers and thus change the size and composition of market overtime involves initially

building customer profiles. These influences include:

Political and legal environment

Economic trends

Socio cultural environment

Technological factors

POLITICAL AND LEGAL ENVIRONMENT:

Banks are strongly affected by the political and legal considerations. This

environment is composed of regulatory agencies and government law that influence and limit

various organizations and individuals. Mostly these laws create new opportunities for business.

Business legislation has following main purposes

o To protect banking companies from unfair competition.

o To protect consumers from unfair business practices adopted by banking companies

o To protect the interest of the society from unbridled business behavior.


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The political situation of Pakistan is not satisfactory. Due to the rapid change in theGovernment every government sets its own new trade policies.Govt should applysustainable policies for the beneficial of the exporters as well as the investors

ECONOMI C TRENDS:A banking market requires better consumer market in volume along with higher borrowing

power. The available borrowing power depends on:

o Consumer income

o Saving rates

o Consumption patrons

o Rates of interes

o

Budget deficito Exchange rates

o Cost of living

o InflationSOCIO-CULTURAL ENVIRONMENT :

A society is shaped by beliefs, norms and values. People in a society consciously and

unconsciously interact with:

Themselves

Others

Organization

Society The

change in the lifestyle of the people affects the growing demand of the NTM products.

The change in the lifestyle and needs in different demographics also affect the demand of

the customers.

TECHNOLOGICAL FACTORS:

Forces of technological advancement have played the most dramatic role in shaping thelives of people. The rate of change of technology has greatly affected the rate of growth

of economy. New technology is creating deep rooted affects which could be observed in

long run. The improvement techniques involved in on line banking. In brief PEST

analysis affects the overall banking companies and provides us the information about the


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external macro condition. Technological advancement in all the sectors of the country

has changed the entire socio-economic environment. Especially in the textile sector there

is a lot of technological development.

5.2.6 Contribution of MCB toward Economicdevelopment

MCB Bank is one of the leading financial services provider in Pakistan and as one of the largest

and oldest banking corporations in the country; we not only embrace our heritage and traditions,

but strive for growth and change. Our goal is to create and nurture long term relationships with

our customers by catering to all their financial needs, including traditional banking services,

insurance and investment advisory, coupled with the highest level of customer service.

Our bottom line is to ensure that we have motivated, professional and customer-centric

employees on board who help us deliver this promise of becoming the best in class across the

industry.

MCB we inspire every individual to play a significant role in our continued success by creating

Maximum economic value for our clients and shareholders, while maintaining the highest human

Values and principles.

Utility of the commercial banks in the promotion of national economy was of paramountimportance and sound banking system ensured stability of the economy. The bank worked under

a set mechanism.

Economic report

In the past five financial years, post September 11, Pakistan s economy has experienced thelongest spell of its strongest growth in years. Different schools of thought exist regarding.

5.3 .Organization structure

Overall organization and functions of organization in Pakistan:

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


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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. TheOrganisational Structure Design would

be the most important thing that one should work on. The Structure design should be able to take

care of defining the basic levels based on the criticality of the work performed.The levels in the

organisation can be ensured to create the value to the organisation as it moves higher. For

Example: Team Member Level in organisation should have a focus execution of the task as

assigned and report back. Whereas the Top Management role would include identification of thefuturistic and create a focus for achieving the organisationalTargets.

BOARD OF DIRECTORS

MANAGEMENT STRUCTURE OF MCB

BOARD OF DIRECTORS

Mian Mohammad Mansha Chairman


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S.M. Muneer Vice Chairman

Dr. Muhammad Yaqub Director

Mian Umer Mansha Director

Shahzad Saleem Director

Sheikh Mukhtar Ahmed Director

Tariq Rafi Director

Sarmad Amin Director

Atif Yaseen Director

Mohammad Aftab Manzoor President & Chief Executive

Advisor:

Raza Mansha

Audit committee:

Dr. Muhammad Yaqub Chairman

Tariq Rafi Member

Mian Umer Mansha Member

Aftab Ahmad Khan Member

Chief financial officer:

Ali Munir

Secretary:


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Tahir Hassan Qureshi

Auditors:

KPMG Taseer Hadi & Co.

Chartered Accountants

Riaz Ahmad & Co.

Chartered Accountants

Legal Advisor:

Mandviwalla & Zafar

Advocates & legal consultants

Shariah Advisor:

Dr. Muhammad Zubair Usmani

Registered Office:

MCB building, F-6/G-6

Jinnah Avenue, Islamabad Principle

Office:

MCB towerchudrigar road Karachi

Registrar and Share Registration Office: Shares department, ground floor sheikh sultan trust

building no 2, Beaumont road Karachi. Organization Structure

PLACING STRATEGIES OF MCB BANK

The location of the bank plays a vital role in making its operations profitable. If the bank is

located in some business center then it will be very easy for it to attract business people as its


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customers. Therefore MCB has most of its branches at places where it can reach its targets

customer easily. The branch network of MCB is given as follows:

PROMOTION STRATEGIES OF MCB BANK

MCB Bank is actively participating in promotion of its products and services through

advertisement and other promotional schemes.

Initially, the bank focused on the upper class customer s only and offered products for a limited

class of people. But now the strategy has been changed and the bank is now targeting the middle

market also. The products offered are of diverse nature to cater the needs of maximum number of

people. Customer oriented attitude MCB Bank values its customers. Customers

complaints are encouraged because it gives an opportunity to know the needs of the customer

and build more confidence in them.Most of the promotional efforts are done through

Direct marketing

Public relations

MCB bank sometimes gets suggestionsand recommendations from its good customers.

Branch layout is being designed in such a way that more and more customers are attracted. Some

of the branches of MCB Bank have a very good entrance and outlook but many still need to beimproved.

FIELDS OF ACTIVITIES

The purpose of banks is to provide some services to the general public. And for this purpose

different banks provide different

services to the people in different

forms. The MCB Bank is a

commercial bank, in modern time

commercial banks play a very

important role and their functions are

manifold. The main functions and

Place No. of branchesPunjab 632Sindh 232

NWFP 123Baluchistan 34Azad Kashmir 19Domestic 1040Overseas 4Total 1045


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services which MCB Bank Limited provides to different peoples are as follows.

1) Open Different accounts for different peoples

2) Accepting various types of deposits3) Granting loans & advances

4) Undertaking of agency services and also general utility functions, few of those are as

under

Collecting cheques and bill of exchange for the customers.

Collecting interest due, dividend, pensions and other sum due to customers.

Transfer of money from place to place.

Acting an executor, trustee or attorney for the customers. Providing safe custody

and facilities to keep jewellery, documents or securities.

Issuing of travelers cheques and letters of credit to give credit facilities to travel.

For proper functioning of branches and the over all bank has been divided in different

departments. These departments handle different jobs so that division of work is there for

improvement of functions and also it is easy to control the situation. The general division in a

branch is as follows:

5.3.1 ORGANIZATIONAL HIERARCHY OF MCB


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ORGANIZATIONAL STRUCTURE OF MCB

As MCB is a banking company listed in stock exchange therefore it follows all the legalities

which are imposed by concerned statutes Mr. Muhammad Mansha is chairman & chief executive

of the company with a team of 10 directors and 1 vice chairman to help in the business control

and strategy making for the company.

Operational Management of the bank is being handled by a team of 10 professionals. This team

is also headed by Mr. Muhammad Mansha. The different operational departments are Consumer

Banking & IT div; Financial & Inter branch div; Banking operations div; HR & Legal div;

financial control & Audit div; Credit management div; Commercial Banking div; Corporate

Banking div; Treasury management & FX Group and lastly Special Assets Management (SAM)

Group.

For effective handling of branches, it has been categorized into three segments with different

people handling each category. These categories are:

a) Consumer Banking

b) Corporate Banking

c) Commercial banking

a) Consumer Banking These are the branches which have exposure up to Rs. 20 million and

these include all the branches which are neither corporate nor commercial branches. Recently the

organizational structure was re-designed as follows: Province wise branches

Consumer Corporate Commercial637 branches 20 branches 383 branches

b) Corporate Banking


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These are branches which have an exposure of over Rs. 100 million. Usually includes

multinational & public sector companies.

c) Commercial Banking

The branches which has a credit exposure of less than Rs. 100 million but having a credit

portfolio of more than Rs. 20 million (excluding staff loans)

Usually branches in large markets and commercial areas come under this category.

How toopen anaccount

DEPOSIT SLIPS

Date

Account Number

Title of account

Amount in figures and words

Mention of Currency

Any instrument number

Signature

TYPES OF DEPOSIT SLIP

Current Account Deposit Slip

PLS Saving Deposit Slip

Cheque book issue form


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1. ACCOUNT OPENING DEPARTMENT

Account opening and closing is the function of accounts departments. Bank s customers may be

individuals (Single or Joint), firms (partnership/proprietorship), Autonomous corporations,

Limited Companies, Charitable Institutions, Associations Educational Institutions or LocalBodies.

Basics to open an account

During the span of my internship in MCB, I learned and observed a lot about the opening of an

account. Basically I think that the opening of an account is the establishment of a contractual

relationship between the banker and the customer. By opening an account at a bank a person

becomes a customer of a bank. Further I am going to express the basic requirements and steps

involved in the opening of an account.

Introduction and preliminary investigation

Before opening an account MCB as like the other banks in Pakistan ascertain whether or

not the person who is going to open the account is a desirable customer or not. Then MCB

determine the prospective customer s integrity, respectability, occupation and t he nature of

business by the introductory references given at the time of account opening.

How to open an account (General): Before opening an account in MCB I observed that thefollowing points must be considered in this regard.

Another account holder of the bank should properly introduce the new customer.


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The account holder should sign the account opening form in the presence of bank officer

and the signature is duly verified.

A copy of computerized national identity Card is required by Bank.

Against subm ission of the Bank s prescribed application form, duly introduced in the

manner provided and on supplying such document, as may be required and account may

be opened. The Bank reserves to itself the right to refuse to open and account without

assigning any reason.

Each account shall be allotted a distinct number that is to be quoted in all correspondence

with the bank relation to the account.

Minimum amount for opening and continued maintenance of various types of accounts is

as follows:

Rs.

Saving 500

Current 500

Term Deposit 1000

The bank reserves the right to change the above mentioned minimum balance requirement at any

time without any notice.

Procedure to open an account According to my practice in MCB, when a customer wants to

open an account, the bank officer gives him an application form. All information, which is

necessary to be known by the bank, are requirements of the application form. Form also requires

the essential documents to be attached by the customer.

Basically following information is required to open an account with MCB.

Title of Account

Full Name of Applicant

Occupation

Address


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Telephone No.

Currency of account

Nature of Business

Introducer s Name, Address & Signatures

Special instruction regarding the account

Initial Amount of the Deposit

Signature of the applicant

Special signature card: Customer fill this card in your CNC no and signiture

Apply

FOR ATM CARD

For getting ATM Card Customer should mention it in Account Opening Form.

ATM Card application by customer is given to the Head Office.

After one week his/her ATM Card and Pin Card will be sent by the Head Office.


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Documents to be attached

Further I learned that if you wanted to open an account with MCB then you should attach the

following documents with your application form which are different for different categories.

Sole proprietors account

In order to open an account with MCB Sole Proprietors have to submit their business registration

certificate number.

Private / joint account

For individual or private or joint accounts Computerized National Identity Card is required.

Joint stock company

Before an account of a Public Limited Company is opened MCB must ask the person authorized

to do so to submit the certified copies or the following documents

Certified true copy of the Memorandum and Articles of Association of the company.

Certified true copy of the resolution of the board of directors / managing committee /

governing body regarding conduct of the account.

Certified list containing names and signatures of the directors / office bearers.

Certified true copy of the certificate of commencement of business (in case of publiclimited companies).

Balance Sheet

I.D. Card copy of each director

Partnership firm account


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Information which is required to be submitted to MCB by a partnership firm in this case is as

follows:

Full Names Address

Specimen of signatures of the partners

Certified true copy of partnership deed

Registration No. if the Partnership is registered

Societies / clubs and associations account

MCB is authorized to open the accounts of the societies/clubs and associations, These are non-

trading organizations, formed for the promotion of culture, science, education, recreational

activities and charitable purposes etc. some of these institution are registered under the Societies

Registration Act, 1866, and are issued a certificate of registration after they have been found fit

for registration.

Clearing process (Flow Chart)

Slip is asked & filledCheque with slip given

Cheque along with slip checked, signed &received by officer

Entries in daybooks are made

Entries checked & verified by another officer

Cheques collected at the day end by MainBranchs Officials

Cheques are sent to respective banks next dayafter posting in computer by Main Branch


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5.3.4 Introduction of department

The departments of MCB are:

1. Cash department

2. Deposit department3. Clearing department

4. Advances department

5. Remittance department

6. Foreign exchange department

7. Technology department (new addition in order to cop with the growing needs of day to

day technology requirements)

There are three main departments in any branch of MCB

GENERAL BANKING

FOREIGN EXCHANGE

ADVANCES/CREDIT

The same day not honored cheques arereturned to Main Branch

The day after tomorrow the banks are informedabout dishonored cheques

Provisional entries for returned cheques aredebited again in both computer & daybooks

Party is informed about returned chequesthrough Phone or personal contact

Cheques are mailed through TCS in case of nopersonal contact the same day


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GENERAL BANKI NG

General banking deals with following services:

REMITTANCEIt is transfer of funds. Funds can be transferred in shape of pay orders, demand draft, mail

telegram and telegraph transfer. Payments of fees of different organizations, fulfillment of

tenders, and collection of funds are the main functions of remittance. Maximum part of general

banking depends on this department.Issuance of different kinds of remittance:

PAY ORDERPay order is the property of person/company that has to take the benefit of the

amount being pay ordered by the concerned person. Pay orders are made for the payment

of fees, tender or issued for the payments of dealings. These are required for the proof of

payments made between the bank and the customer in the favor of beneficiary. These are

noted in printed block letters and yearly serial numbers are issued from computerized

system.

DEMAND DRAFTDemand drafts are made for the beneficiary for payments, funds etc, these are

made for outstation branches of the concerned banks. An advice is also made for the

confirmation of the draft send. These are also approved and safe way of sending amountto the beneficiary. These are also noted by computerized system and a serial number is

issued from the computer system.

MAI L TRANSFERMail Transfer is made with in the city for transfer of amount. An advice is also

made for the confirmation of the draft send. These are also approved and safe way of

sending amount to the beneficiary. These are also noted by computerized system and a

serial number is issued from the computer system.

TEL EGRAPHI C TRANSFE RTelegraph Transfer is telegram message for transferring the amount from one

branch to other branch. A message advice and a confirmation advice both are made with

TT numbers that are issued for TEST. TEST depends on two steps:


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OUTWARD CLE ANI NGIt depends on those cheques that are cleared out side the city. For outward

clearing cheques are send because the home branch has there accounts but checks are of

other banks. Contras of these cheques are vouchers that are recordrd in the home branch. ISSUANCE OF CHEQUE BOOKS

Any account holder that has opened the account he/she could credit his/her

account and for this purpose there should be a cheque book, so he/she could be able to

credit the needed amount whatever he/she wishes. For the issuance of the cheque book a

person is advised to fill a requisite slip with his/her full names and the account number

with two verified signatures. These signatures are checked and then another requisite slip

prepared by the bank staff send to the NIFT, and it issues the printed cheque books aftercompletion of the procedure in two or three days.Account holder can take it by singing on

the issuance register or if the absence of the account holder another person could also

take the cheque book only if he/she has authorized signature of the account holder. When

the cheque books are issued they are feed in the computer system from the requisite slip

so when the cheques are given for the credit/transfer of amount they could checked. In

this way neither the cheques could be repeated nor could the invalid cheques be claimed.

I SSUAN CE OF ATM CARDSHead office issues ATM (Auto Teller Machine) cards with their PIN (Personal

Identification Number) codes and when the customer claims for their ATM card they are

checked from the list that is also issued from the head office, and the claim is checked

from the list and if the name is found than the cards are issued by taking a signature and

their PIN codes are given to them by taking signatures on their ATM card forms. The

ATMcard has been activated by the number provided at or with the specific card.

CANCEL LA TI ON OF ATM CARDSThe Cancellation of ATM Cards becomes necessary in the following conditions:

If folded or damaged

Stolen


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PIN code missed or forgotten

Card captured by the machine and expired

If requested by the customer

The cancellation or inactivity of the card is being processed by the request or

instructions provided from the customer.

AMOUNT, RATE, NUMBER OF DAYS / 365 DAYS

Profit is calculated for the six months only for outstanding SND. Zakat is also

deducted but if Zakat deduction form is submitted to the bank, no Zakat will be deducted

then, 10% with holding tax is also deducted from the profit to calculate net profit.

CALL DEPOSI TIt is highly liquid instrument, it can be cashed at any time when needed. This

instrument bears no profit on it. It is mostly used for the purpose of tenders.

FOREIGN EXCHANGE

LCS ESTABLISHMENT Any company can provide its documents containing e-form, bill of lading, short

shipment notice in case of short shipment, packaging list etc. the information provided

from the documents is recorded in the LC establishment portion or section in the

computer.

PAYM ENT OR RETIREM ENTWhen the transactions have been completed then approved documents from the

concerned bank are sent to the home bank for the payment or retirement of the LC.These

transactions have recorded in the payment or retirement section of the computer.

F OREI GN CURRENCY DEPOSI TSThe Foreign Currency Deposit relates with the foreign currency accounts, cash

deposit or credit and foreign remittances.

FOREI GN REMI TTANCESIn this we received the messages through SWIFT for foreign remittances, which

we record in their respective accounts, if these are relates with Pak rupees than it was


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transferred in Pak rupees with the latest rate and if this relates to the foreign currency

than it is dealt with accordingly. The amount has been credited to the respective account

and the head office has been debited against it. After crediting the amount to the

respective account. All the subsequent entries have been made in the registers and also in

the computer record as the system now have been upgraded on computers. As we are

reporting daily to the head office, so an annexure has been maintained and faxed to the

head office.

ADVANCES / CREDIT

This department deals with the approval of different kinds of loans to different

business entities. The loans, which are being approved by the department, are kept withsome securities such as bonds, properties and any other type of asset, which is equally

valuable or more than this as a guarantee. Every branch has its own limit, if the amount

of loans is with in the limit of the branch then it is being approved by the branch but if the

amount of loan is exceeding the limit then it has to make it approved by the head office.

In this case the branch stored all the required papers and sent them to the head office for

necessary action. If the head office approved the loan then mostly the period contains a

year. And if the party requires more loan than after a year the loan has been re-approved

required that they should have the limit. In case if the head office do not approve the

loans then the return letter came back with the reasons of not approval of loan and if the

reasons have been made approved by the concerned party then it could be sent again for

approval .

BASIC BANKING ACCOUNTIn compliance with the directives of State Bank of Pakistan via BDP Circular No.

30, issued on 29th November 2005, the Basic Banking Account has been launched with

effect from 27th February 2006. This product has been introduced to facilitate the low

income group as well as the existing account holders who wish to convert their regular

savings or current account into Basic Banking Account.


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The Basic Banking Account is a current account and can be opened with a minimum

initial deposit of Rs. 1000/- only. Account holders will be allowed 2 deposit transactions

(each cash or through clearing) and 2 withdrawals (cash or clearing) each month. All

customer-initiated transactions over and above this limit will be charged a transaction fee.

However unlimited free charge c ash withdrawals are allowed through MCB s own

ATM s.

PAK RUPEE OR FOREI GN CURRENCY ACCOUNTS

SAVING ACCOUNTMCB s Foreign Currency Savings Account offers you attractive returns on your

foreign currency investment. Unlimited transaction facility, profit credited to your

account on a half yearly basis. You can avail a credit facility up to 75% of the total

deposits value. A foreign currency account can be opened at any of our foreign exchange

dealing branches.

MCB RUPEE MAXIMIZER ACCOUNTMCB Rupee Maximizer Account provides you an opportunity to convert you re

the recent changes in the economic scenario MCB launched the Rupee Maximizer

Account exclusively for its Foreign Currency Account Holders. MCB Foreign Currency

Account holders now have an opportunity to convert their Foreign Currency Account

balances into Pak Rupees and earn a profit at the rate of 12.6% per annum.Other features

include profits calculated on a daily product basis, no restrictions on the number of the

withdrawals, no minimum deposit required. Special benefits include one free ATM card

and locker facility free of cost. MCB Rupee Maximizer Account is being advertised in

leading daily newspaper as well as local papers. Foreign Currency Account into Pak

Rupee and earn profit at the rate of 12.6% per annum.

CURRENT ACCOUNTMCB s 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.


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o Pay through MCB Virtual

o Pay through MCB Call Centre

I NVESTMENT BANKI NGOur investment banking team has emerged as a leading player in Pakistan s

investment banking arena. The team handles advisory, corporate finance and capital markets

related transactions, within these areas the team has developed expertise in:

Private Placements

Debt/Equity Underwriting

Team Finance Certificates

Loan Syndication

Arrangement of Non-Fund Facilities

Mergers and Acquisitions

Privatization

Corporate Advisory

ABOUT REMIT EXPRESS

Fastest to Pakistan, anywhere in Pakistan, the fastest way of getting your money across toPakistan. Remit express offers low cost remittance from U.A.E and Saudi Arabia. Your relatives

friends or business associates receive drafts within 72 hours.MCB remit express has been

specifically designed to meet the needs of the expatriate Pakistani community residing in the gulf

countries. Easiest and safest way to remit funds, remittance within 24 to 74 hours, personal

delivery to the beneficiary, delivery confirmation to the remitter, message facilities for both

parties. Your beneficiary will receive the amount even if he/she does not have an MCB account.

PERSONAL LOAN The more you praise and celebrate your life, the more there

is in life to celebrate. MCB personal loan shortens the distance between your dreams and your

celebrations. It is fast, flexible and affordable, speedy loan approval. No guarantor / security /

collateral required. Borrow up to Rs. 1,000,000.


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DEPOSITS :

The total deposits of this about to 207.10 million.

NUMBEROFACCOUNTS :

Accounts in this branch of MCB are as follows:

CURRENT A/C

Total numbers of current accounts are 1049.

PLS ACCOUNT:

Totalnumbe PLS are 2120

NO. OF VOUCHERS: The vouchers which are transacted in this branch are as follows:

TYPES,DEBIT,CREDIT

Transfer:961,901

Clearing:591,810

Cash:1754,1389

Other general information of the branchDeposits: The total deposits of this about to 800

million. In deposit there is increasing trend. Graph

5.3.2 Numbers of employees

60 65

70

75

80

2006, 2007, 2008,

Deposits


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Management of the branch

Mr.Aamir Branch Manager Mr. Atif Butt Operational Manager

Miss Sofia Customer Relation Officer Mr.Waseem Cashier Mr.Umer Billing Cashier Miss Sofia Dispatcher

Miss Sofia Account OpeningOfficer

Duties of the Employees

Training received by number of employees:

For the efficient working training is an important part and it clears the direction of the

employees towards attaining the organizational goals. In banks every employee received the

basic course of training of the banking system in which overall view of all the bank work is

provided and than every person get the training in his particular job that is assigned to him. So in

banks no one can be appointed with out the basic training

.

Workload:

The work load of the bank staff is based upon on the daily system. The office timing

starts from 9.00 am to 5.00 pm (Monday to Friday) and 9.00 am to 1.00 pm on Saturday for the

customers. After the bank timing the staff fulfill the daily vouchers transaction and made the

entries on the net system and then counted the cash, put it in the safe. The banking staff should

finished their word on daily basis whether there work is short or long.

Responsibilities:Responsibilities of staff depend upon the scale of the staff members. Higher the rank of the staff

higher will be the responsibility on it. For example the Branch Manager responsibility is higher

than the Operational Manager.


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Branch Manager has the responsibility to deal with the Branch customer and with the

outsider parties also while all the remaining staff is responsible to deal with the Branch

customers only. Branch Manager is responsible for the internal and external environment and the

remaining staff is responsible for internal environment only.Operational Manager has the

responsibility to check the activities of his subordinates. Cashier is responsible for all the cash

transactions which occur in the Bank. Customer Relation officer is responsible to deal the

customers well and provide them the necessary information if required.

Physical facilities: The branch where I have done my internship is MCB Shaheen ChowkGujrat branch, here the physical facilities available to the customers are sufficient, propersitting arrangement is available, and gas heater in winter and air conditioners for summeris also available. But the facilities for the employees is not sufficient, employees havethe combined table there is no separate rooms for the employees .

5.3.3 Main Offices/head office

Offices means the Head office which is situated in MCB House located at Fruit Mendi

Branch. Field offices mean the Branches. MCB has the forth largest domestic branch network inPakistan. The bank has a network of over 1000 branches in Pakistan and 6 branches worldwide

in 6 countries.

MCB Relationship of head office to the branch offices:

In MCB decision, strategies, policies are made by the top level management and these

are implemented in each branch. Top level management don t involve the lower management in

decision making process.MCB is the pioneer of computerization, as far as it has a verydeveloped and fastest network. So the head

office and all of its branches are linked through a electronic network, that make possible

easy and in time transformation of the important information.Offices means the Head office


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of the company was established at Dacca and Mr. G.M. Adamjee was appointed its first

chairman. It was incorporated with an authorized capital of Rs. 15 million. The Bank

transferred its registered/Head office from Dhaka to Karachi on August 23, 1956 through a

special Resolution. The bank was nationalized in 1974 during the government of Zulfiqar Ali

Bhutto. 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.MCB is Pakistan s 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.

5.4 Introduction to the reports

Learning as internee in MCB

It was a tremendous experience that I have availed with devotion andcommitment. I want to share its not easy that looks it has a great toughness andcomplications in its process but the overall it was nice and great. Here I amsharing some of my learning regarding my internship in different departments.

Weekly timetables

Weeks Dates Departments 1st week General Banking

Department:


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2n week cash department3r week Clearingdepartment4t week Govt. Payments &

Receipts5t week Remittance6t week Advances

Controlling Supervisor Name : Atif Butt

Detail of 1 st week activities: First I met Miss sofiya.she is a customer services officer. Idiscussed about the deposite slip then Demand draft

General Banking Department:

In the general banking department may I learned and practiced the following stepin above.

Account opening procedures

Basic requirements for opening an account

Documents required for account opening

Verification of the documents

Minimum Initial deposit and minimum balance requirements

Signature Specimen Card (SS Card)

2nd Week:

Department: cash department and CSO (Customer Service officer) In the 2 nd week I

started working with CSO. There is separate slip use for online transaction. On this slip

the name of the beneficiary, account no, branch code and purpose of payment is

mentioned. As well as paying party s account title, account no and contact no i s also

mentioned. Charges for online transaction:

if the cash is

Type Commission FED Total

By cheque 125 20 145

By cash 150 24 174


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more than 25000 then the 0.2% tax will also include.

Third week : I meet to Sir Anwar .He is working in clearing department.I learnt that every

problem is solvedwitha systematicprocess I learnt about the marketing procedure and required ofthe documents and dealing with customers. All the record is saved.During my internship I learnt

about the value that customer is the only who come first. The fulfillment of the demand of

customer is our basic motive.

Clearing Department :In the clearing department I learned and practiced the following tasks:

Outward clearing (cheques of

other banks and branches) Inward clearing (cheques of the branch)

Intercity (cheques send outside the city)CC (cheques collection, without NIFT)

4th week activities:

Telegraphic Transfer

DD- Demand Draft

PO- Payment Order

For TT, the account of beneficiary must be there in branch. DD is also prepared and beneficiary

can get payment. First of all,Performa is filled by purchasing party along with cheque or cash payment. When cheque is

received it is first posted in computer section in order to check the balance of account. After

posting the bank officer calculate tax if National Tax number is not there. i.e.

Rs.100000 @0, 1%

More than Rs.40000 @0.4%

Commission and postage charges are also calculated. These are paid in cash or otherwise

by cheques.

What type of job are you looking for? You always have to be wary of the customer that

sets up a seemingly legitimate business simply to "bust out"--taking goods and disappearing

without paying. Here are some specific steps you can take to protect your company from a bust


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Jan. 5

out. Know your salespeople and their performance. In credit, you typically know which sales

reps are go-getters and which are not. Either way, that understanding can be helpful in assessing

what kind of orders are coming through them. When you receive orders from new customers,

identify the salespeople involved. Orders from salespeople whose track records are poor in terms

of overall sales performance should be scrutinized carefully

Competitors of MCB

National Bank Alfalah Bank United Bank Alliad Bank Citi Bank habib Bank Ltd Faysal Bank Prime Commercial Bank ABN Amro Bank SaudiPakCommerecialBank IndusBank SoneriBank BankofKhyber BankofPunjab

GulfCommerecial Bank MetropolitanStandard chartered Askari Bank

Objective of organization onMCB

creating and managing values

the first ObjectiveofMCBiscreating and managing values which is one of the back bone of the Objective ofanyorganization and managed organization

Human valuesthe Second Objective of MCBis take care of the Human Capital which is anecessary thing forthe development and prosperty of any establishedorganization

Periods of Internee


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During my internship in the MCB bank Limited, I really enjoyed to work with the staff ofBranch, from 15 thAug 2011 to 30 th Sep 2011 and have a wish to be employee of MCB. It wasalmost impossible to work in all the departments within that limited time. But on my request, thestaff of the branch provided me the opportunity to work in the different departments for the sake

of practical knowledge. I am very thankful to branch manager Mr. amir who provides me alearning environment in the branch.During my internship in MCB I have worked in different departments & seats. I tried my best tolearn as much as possible. The detail of my learning and experiences is given below.

General Banking Department

In the general banking department may I learned and practiced the following tasks:

Account opening procedures

Basic requirements for opening an account

Documents required for account opening

Verification of the documents

Minimum Initial deposit and minimum balance requirements

Signature Specimen Card (SS Card)

Procedure of account closing

Check book request and issuance procedure

Clearing Department

In the clearing department I learned and practiced the following tasks

Online clearing of checks (within the city)

Online clearing of checks (outside the city)

Outward Bills for Collection (OBC)

Inter-bank Credit Advice (IBCA)

Demand Draft and Pay Order

Trade Finance Department

In the trade finance department I learned and practiced the following tasks

Various types of L/C

Parties involved in a L/C

Basic requirements for opening a L/C


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Making the Proposal for L/C

Terms and conditions of the L/C

Inward and outward Foreign exchange Remittances

Issuance of cheque book

When a customer opens an account with the bank, he is provided with cheque book for

withdrawals from account. However, the first cheque book is given to the customer only when

all the required documents are checked.

A cheque book contains ten, twenty five, fifty or hundred leaves. The cheque book also carries a

requisition slip for the issuance of the new cheque book. This slip is duly filled and singed by the

customer. The signature of the customer is verified by the bank and new cheque book is issued to

the customer and serial numbers of the cheque are duly entered in the book of the bank. Along

with the signature, person should also write his full name & address.

Usually only one cheque book is issued at a time, however big concerns who need a number of

cheque books at a time, may ask the bank to stock as number of cheque books in their name and

to point their name on these cheque books.

Bank debits the client s account for excise duty of Rs.5.0/ - per cheque and keeps the cheque

book ready for the customer, as on his advice.

The officer keeps and maintains the cheque book register Cheque book inventory and cheque

books issued are recorded in this register. The account number for which the cheque book is

issued and the number of leaves are also recorded in this register when the cheque book issued

an entry is passed in the cheque book issue register.

FOREIGN EXCHANGE DEPARTMENT

In my third week of internship I was transferred to second floor of my branch to work in foreign

exchange department. In this department I worked with Miss Ansa.. They were really co-

operative. Mr. Faisal told me a lot about foreign exchange affairs of MCB. He gave me an


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overview of foreign currency accounts which I have mentioned in foreign exchange department.

The most important thing that he taught me was the transaction with letter of credit..

The steps involved in any international trade transaction are:

The Pakistan Importer places an order with the US exporter and asked the American if he

would be willing to ship under L/C.

The US exporter agrees to ship under a L/C and specifies relevant information such as

prices and delivery terms.

Power Plants The Pak. Importer applies to MCB for a L/C to be issued in favor of the USexporter for the merchandise the importer wishes to buy.

The US exporter ships the goods to the Pak. Importers on a common carrier. An official

of the carrier gives the exporter a bill of lading.

The US exporter presents a 90-days (sup pox) draft drawn on MCB in accordance with its

L/C and the bill of lading to the bank of New York. The US exporter endorses bill of

lading so title to the goods is transferred to the Bank of New York.

The Bank of New York sent the draft and bill of lading to MCB. MCB accept the draft

taking possession of the documents and promising to pay the now accepted draft in 90-

days.

MCB returns the accepted draft to the Bank of New York.

The Bank of New York tells the US exporter that it has received the accepted bank draft,

which is payable in 90 days.

CASH MANAGEMENT

In fourth week I was sent to cash department and I observed that the most important department

of MCB which deals in money (receiving deposits at lower rates and lend them out at higher

rates of interest). This department also called as Chest Department and manager of it is called


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Cash Manager or Chest Manager. In those branches where this department is not separately

existed, the branch manager performs the duties of the Chest Manager.

UTILITY BILLS COLLECTION Then I was transferred in utility bills collection section. Iworked in the utility bills collection department as the MCB collects utility bills on behalf of

WAPDA, Sui Gas Companies, and Pakistan Telecommunication Corporation Limited by putting

the stamp on the utility bills Paid, Date of payment, Signature of the officer receiving the

utility bills. After receiving utility bills a list is made on the form which is called Bills scroll

form. One copy of the scroll is with the bank for evidence whereas the original copy with the

receipt of the bills is sent to the billing department of the respective corporation. The bank

charge commission on the bills.

HOW TO HONOUR A CHEQUE During my internship span in the Muslim Commercial Bank

Limited, I observed that Cheques are received for the following purposes.

i) For Cash payments

ii) For transfer(from one account to another account)

iii) For Clearing

i) For cash PaymentsCheques which are presented on Bank counter must be checked in the following way:

1) Date.

2) Signature of Drawer.

3) Signature of Payee.

4) Whether Bearer has cancelled.

5) Whether Payee account duly is there.

If condition 4&5 exist then check the signatures of Drawer.

6) Match the figure and wordily amount of cheque.

When all above matters are satisfied then come to the Token register and check:

1) Token number.


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Cheque verified forsignatures

Entries posting incomputer

Balance is checked

2nd signatures of

Cheque approval

Cash counted and given

Token is assigned to

2) Cheque number.

3) Amount of cheque.

4) Particulars.

Two stamps are put on cheque.

a) Cash Payment (on the face of cheque).

b) Stamp for Token (on the back of cheque).

On stamp which is put for token their details are as follows:

Token number.

Time of giving token to client.

Signature of token giver.Cheque Encashment Process (Flow Chart)


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Cheque for Transfer

When cheques are presented to be sent for collection and drawn on bank situated within the city

then there are three stamps to be put on face as well as on back of cheque.

a) Crossing Stamp (face).

b) Transfer Stamp (face).

c) Bank Manager Stamp (back)..

ii) Cheques for clearing

There are two stamps put on each cheque, sent for clearing:

a) Crossing Stamp.

b) Clearing Stamp.

iii) Cheques in Collection

When cheques received in clearing are intra city then these are controlled under CC.First of all,

these cheques are recorded in day book then allotted number and then serial number. Then a

Performa is prepared in which Bank on whom was drawn, cheque number, amount, beneficiaryname are recorded. After completing that Performa cheque is posted along with Performa.

CLEARING I spent my Third week of internship in clearing department. The cheques which

need cleared are pass through the following procedure.Following information is entered in

clearing register.

a) Name of favoring party.

b) Name of bank on whom drawn.

c) Branch.

d) Cheque number.

e) Amount.


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Clearing is sent after entering in register. In clearing register future date and day is putted.

Cheques and vouchers are then separated and Cheques are sent for clearing.Clearing credit

vouchers are entered on clearing sheet. Such credits are balanced by giving debits to cheques

received in clearing from other branches. At the beginning of the day clearing return sheet is

received. Vouchers are made if

2. Clearing received is more than clearing delivered then Credit voucher.

3. Clearing delivered is more than clearing received then Credit voucher.

On the same day, credit vouchers sent for clearing are entered on the sheet's credit side. Cheques

are sent to NIFT after taking them on calculator, their total amount along with total number of

instruments. A summary is prepared and sealed after noting the number of seal in summary.

Telephonic Transfer

DD- Demand Draft

PO- Payment Order

For TT, the account of beneficiary must be there in branch. DD is also prepared and beneficiary

can get payment. First of all,

Performa is filled by purchasing party along with cheque or cash payment. When cheque is

received it is first posted in computer section in order to check the balance of account. After

posting the bank officer calculate tax if National Tax number is not there. i.e.

Rs.100000 @0, 1%

More than Rs.40000 @0.4%

Commission and postage charges are also calculated. These are paid in cash or otherwise by

cheque.

Summary of learning Work in InterneeSkills and qualifications that I have gained from the internship.

During the internship there is practical knowledge acquired about the banking sector. Whatactivities are performed by banks and how to deal with public? Also commitment about work


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and operations of banks. Financing and credits and other public services are performed by the banks. What are implementations of banking rules in banking sector? And much learn about thevarious executive s experiences and their skills. What is role of higher authority (manager) indecision making and how to solve the problems? How much money or reserves are used to meetthe requirements in the branch. What are the duties of operation manager and how to paycheques and all procedure relating to opening account in the banks?

Responsibilities that I have undertaken during my internship period.

During my internship inMCB, they assign me worked in pension department. Pension managertrained me very nicely and I learned lot of things in this department. They give the pension toretired Govt. employees. There are two type of pensions given,

I also do the work in clearing department. is that when cheques are coming from outside city forcash and those cheques which come from branches inside city are sent to clearing house, so Imade the statement to clearing house for clearing cheques.

In credit department, I was assigned many duties, for example. I used to fulfill

forms prescribed for gold loans. I used to take signatures of applicant and branch

manager on loan form. I used to calculate amount after including interest charged

by bank on that loan.I used to calculate interest amount charged by bank.

I used to post in ledger, all the details of applicant, amount of loan, amount of

interest, amount, weight and number of tools in gold pledged against loan etc.

I used to record all details of applicant and amount of loan in computer.

Preparing different kinds of documents required for the completion of procedure.

Countrywide Branch Networ

Southern Region

North Nazimabad Branch

Cloth Market Branch


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SITE Branch

Mohammad Ali Society Branch

Korangi Road Branch

New Challi Branch

North Karachi Industrial Area Branch

Gulshan Chowrangi Branch

Southern Region

Korangi Industrial Area Branch

Timber Market Branch

Clifton Block II Branch

Hyderabad Branch

Quetta Branch

Future Outlook

Increase in the branches from 82 to 100.

After introducing 100 or more branches in Pakistan go bank in foreign countries.

Aims to continue with its strategy of geographical expansion during the year 2007.

Expansion is planned in niche markets with potential for consumer, agricultural and SME

finance.

Providing online facilities more effectively.

Also providing mobile banking so that they can be easily in touch with the bank.


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The group stands well equipped to support the above initiatives as well as the valued addition for

the depositors and shareholders as a whole

6.3 )Swot analysisMCB Limited is one of the most thriving commercial banks at present in Pakistan. Theorganization is in the process of building itself into a force to consider. The bank is doing allsorts of new things in order to accumulate a set of distincti ve competencies that could later on betransformed into a competitive advantage of considerable value. In this process of developing,striving, facing minor set backs and striving with even more zeal, the bank enjoys somestrengths, needs to improve upon some weaknesses, can exploit some opportunities and ishampered by few threats.

This SWOT analysis of MCB Limited takes into consideration the external as well as the internalenvironmental structure of the bank.

Strengths : The predominant strengths of MCB Limited are

Humble Management

Strength And Commitment Of Sponsors

Efficiency

Phenomenal Growth

Vastly Experienced Management

Highly Professional Human Resource Department

Crucial Location Of Branches

Good reputation

Strong branch network

Trained, Skilled & cooperative employees

Faster banking services

Reasonable service chargesPersonnel of MCB are well trained and highly skilled. Majority of employees has many

years of experience in banking sector and are an asset for the bank

MCB has a wide network of branches at the ideal locations, catering the financial needs

of its clients


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Foreign Trade is the focus of bank. It has become an ideal bank for the importers and

exporters

Strong Security System

Weaknesses: The chief weaknesses are

Small Size

Less Efficient Computer And I. T. System

Disproportionate Presence Of Old Staff In The Upper Management Hierarchy

Skill Set Of Employees Is Not Up to The Mark As There Is No Job Rotation

Foreign Banks Still Are A Little More Prestigious

MCB Limited Does Not Possess Foreign Network

No Advertising In Electronic MediaBehavior towards customer

Insufficient advertisement

Inefficient HR policies

Mismanagement of time

Overloading of work on employees

Outdated software

It is a step behind in using new technology as compared to other banks

Most of the employees are overloaded with work. There is uneven distribution of work

and promotions are not very timely

It is slow in the introduction of new services

High cost of production

Opportunities:

The opportunities on which MCB can capitalize upon are

Extension of local branch network

Establishing foreign branch network

Capitalizing on information technology

Effect of Privatization


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Emphasis on information technolog