Bank for Life Internship report Ata ul mustafa 11014220-028 Department Of Management Sciences (MBA 3.5) “internship report submitted to the faculty of management and administrative Sciences in partial fulfillment of the requirements for the degree of Master of business administration” Atta-ul-Mustafa 11014220-028 MBA(4 TH ) 3.5year Session : Fall 2012
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Bank for Life Internship report
Ata ul mustafa
11014220-028 Department Of Management Sciences (MBA 3.5)
“internship report submitted to the faculty of management and administrative
Sciences in partial fulfillment of the requirements for the degree of
Master of business administration”
Atta-ul-Mustafa
11014220-028
MBA(4TH) 3.5year
Session : Fall 2012
Bank for Life Internship report
Ata ul mustafa
11014220-028 Department Of Management Sciences (MBA 3.5)
ACKNOWLEDGEMENT
First of all I am very thankful to the almighty ALLAH. I am also thankful to my parents.
Who pray for my success in my life . I am also thankful to all my faculty of administrative
and management science .the university of gujrat who provide me this opportunity to have
an experience in a reputed organization and groom myself for the future professional
responsibilities. I am also very thankful to the respected teacher of this course they full
cooperate with me. And one thing which is really appreciable is that they reply to my every
question and solve my every problem in education field.
I am also really thanks to the MCB Allahabad wazirabad Branch (1471) staff members
Mr.sheikh umar sb (Branch manager)
Miss.Nadia Afzal (Operation manager)
Mr.waqaar sb ( Clearing officer )
Mr.Hassan Ali ( cash officer )
Miss.samreen Rehmat (C.S.O)
Bank for Life Internship report
Ata ul mustafa
11014220-028 Department Of Management Sciences (MBA 3.5)
Executive summary
As a scheduled commercial bank MCB plays a vital role in the national economy through
mobilization of hitherto untapped local resources, promoting saving and providing funds for
investments.
The bank offers attractive rates of profit on all deposit, opening of foreign currency account
and handling of foreign exchange business for example import, export and remittances
,financing, trade and industry for working capital requirement and money market operations
.Due to that factor MCB has got the fame in as established in 1947 and was given the status
of scheduled bank.it has 1155 online branch in the major cites of Pakistan and 8 branches
for overseas operation in Srilanka, UAE,Bahrain and EPZ.
During my internship at MCB (1471) I worked in all department and I successfully
completed all the task /duties and responsibilities were assigned to me .the course of
internship I learned about various functions techniques and also learned bank‟s
correspondence with their customers and
Whitin branches .I also learned about documentation requirement and records different
activates and process .especially the documentation required for account opening .
All branches are under total sixteen circle office gujranawala circle is considered largest
circle branch wise.it has 93 branches and Allah Abad wazirabad branch(1471) is one of
them.
Bank for Life Internship report
Ata ul mustafa
11014220-028 Department Of Management Sciences (MBA 3.5)
DEDICATION
I dedicate this effort to my parents who provided me the
great foundation and respectable teachers who brought
my skills & abilities up. and my brother and friends who
support me in my study
Bank for Life Internship report
Ata ul mustafa
11014220-028 Department Of Management Sciences (MBA 3.5)
Bank for Life Internship report
Ata ul mustafa
11014220-028 Department Of Management Sciences (MBA 3.5)
Bank for Life Internship report
Ata ul mustafa
11014220-028 Department Of Management Sciences (MBA 3.5)
Table of contant
Sr.# Contents Page no
1 Introduction of MCB Limited 4
2 Vision 5
3 Mission 5
4 Business volume and success stories 6
5 MCB performance over view 8
6 Product and services 10
7 PESTAL analysis 15
8 Political and legal environment 15
9 Economic trend 15
10 Social environment 16
11 Technological factor 16
12 Contribution of organization toward economic development 16
13 Some important ratio over view 17
14 Organizational structure 20
15 Organization hierarchy chart 21
16 No of employees 21
17 Introduction of MCB Allahabad branch 22
18 Introduction of all department 24
19 Comments on organization structure 39
20 Internee work 41
21 Detail of supervisor 41
22 Weekly time table 43
23 Department where I performed my internship 49
24 Summary of learning 55
25 Conclusion of report 57
26 SWOT analysis 58
27 Recommendation 60
28 References 61
Bank for Life Internship report
Ata ul mustafa
11014220-028 Department Of Management Sciences (MBA 3.5)
5.1 Introduction of MCB Bank Limited
MCB is one of the top banks of Pakistan. Established in 1947, MCB soon earned the
reputation of a solid and unadventurous financial institution managed by emigrant
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 1150 branches and over 650 ATMs in the market. MCB has a reputation of most strong
financial institute and the leading bank in Pakistan with a deposited base of PKR 462 billion,
and total asset of PKR 605 billion approximate .the MCB bank one of the oldest and one of
the responsible banks in the Pakistan and has played very important role in representing the
country in the global plate farm and MCB is include in few institution of the Pakistan that
recognized and trade in the international market.
The bank has also been acknowledge via prestigious and awarded by Euro money, MMT,
Asia money, SAFA (SAARC), the Asset and the Asians Banker.
5.2 OVER VIEW OF THE ORAGNIZATION:
5.2.1 BRIEF HISTORY
MCB bank is the one of the leading bank of the Pakistan MCB have the experience over 60
years in Pakistan and the hard work which make it leading organization in the present
scenario of competition .MCB is not make the overnight success story but beyond the
success of the MCB is the hardworking , the full dedication and full commitment are
involved.
MCB incorporated by the Adam jee group, during in 1960s the bank grew rapidly with the
concentration on trade finance products. In 1947, MCB was nationalized along with the
private bank and then MCB privatized in 1991 during the Nawaz Leage government
financial sector deregulation policies.
During the first five years, the private management concentrated on growth utilizing its
extensive network of branches and developed a large and stable deposit base. Since
privatization, the bank has made tremendous headway in improving the operational
efficiency through human resource development and employment of technology. The bank
today boasts the target online brand and ATM network in the country.
MCB‟s main focus remains on consumer banking and its growing reputation as a full service
provider gives the bank an edge in front of increased competition in the banking sector in
Pakistan. The ATM network is the largest in Pakistan and the Pak Rupee Travelers Cheques
are market leaders.
MCB was the first to introduce the photo card with the introduction of MCB Master Card.
Corporate banking ensures assistance from a dedicated team of professional financial
advisors for underwriting, project finance or corporate advisory
Bank for Life Internship report
Ata ul mustafa
11014220-028 Department Of Management Sciences (MBA 3.5)
Vision Statement
“To be the leading financial services provider, partnering with our customers for a
more prosperous and secure future”
Mission Statement
“We are a team of committed professionals, providing innovative and efficient financial
solutions to create and nurture long-term relationships with our customers. In doing so, we
ensure that our shareholders can invest with confidence in us”
Values of MCB Bank
Integrity
We are the trustees of public funds and serve our community with integrity. We believe in
being the best at always doing the right thing. We deliver on our responsibilities and
commitments to our customers as well as our colleagues.
Respect
We respect our customer‟s values, beliefs, culture and history. We value the equality of
gender and diversity of experience and education that our employees bring with them. We
create an environment where each individual is enabled to succeed.
Excellence
We take personal responsibility for our role as leaders in the pursuit of excellence. We are a
performance driven, result oriented organization where merit is the only criterion for reward.
Customer Centricity
Our customers are at the heart of everything we do. We thrive on the challenge of
understanding their needs and aspirations, both realized and unrealized. We make every
effort to exceed customer expectations through superior services and solutions.
Innovation
We encourage and reward people who challenge the status quo and think beyond the
boundaries of the conventional. Our teams work together for the smooth and efficient
implementation of ideas and initiatives.
Bank for Life Internship report
Ata ul mustafa
11014220-028 Department Of Management Sciences (MBA 3.5)
Historical Overview:
• MCB (formally Muslim commercial bank limited) Bank Limited completed his 64
years in the field of banking quite successfully. MCB was formed in 1946 in Calcutta. The
registered office of the bank transferred to Karachi in 1948. Now head office is shifted at jail
road Lahore.
5. 2.2 Nature of organization
MCB is a banking organization. MCB is one of the leading banks of Pakistan with a market
share of 12.5%. It is also the pioneer in innovative consumer banking in Pakistan. It is the
largest private bank in Pakistan. It is the most preferred provider of quality financial services
and is usually considered the best place to work. It has developed a large stable deposit base.
This bank today boasts of largest online branch and ATM network. MCB is in it‟s over 50
years of operation. It has a network of over 1155 branches all over the country with business
establishments in Sri Lanka and Bahrain.
Breakup of branches is as follows:
AREA BRANCHES
Punjab 643
Sindh 232
NWFP 163
Baluchistan 83
Azad Kashmir 19
Overseas 15
Domestic 1140
TOTAL 1155
5.2.3 Business volume and success stories of MCB
During the last five years the bank made substantial progress, recording strong growth in
revenues and earnings. The profit is increased year by year due to vast business activities
done by MCB .
Bank for Life Internship report
Ata ul mustafa
11014220-028 Department Of Management Sciences (MBA 3.5)
During the last five years the bank made substantial progress, recording strong growth in
revenues and earnings. The profit is increased year by year due to vast business activities
done by MCB i.e. deposits from customers, investments as well as advances to customers
and shareholders fund. Due to these funds the return is increased year by year.
As shown above mentioned deposits figer 12% customer deposits increase as mentioned in
billion 491.2 in 2011 and in 2012 this figer increase 545.1 this is all possible due to efficient
services of MCB staff .and increasing the trust of the customer.
Bank for Life Internship report
Ata ul mustafa
11014220-028 Department Of Management Sciences (MBA 3.5)
Taking the trust of investor is the big challenge for any country or any organization. But
MCB brilliantly work for taking the trust and attention of investor and increase the
investment ratio 16% as compared to the previous year. As figer shown lost few year trend
of investor toward MCB.
MCB increase his performance in different sector .May awarding loan, deposits ,investments
and also well perform his services in this competitive era .so that the reason profit of MCB
increase 28% in 2012 as compared to previous years.
MCB PERFORMED IN 1QCY13: Cost
cutting is what helped MCB Bank keep its bottom line growth in green for 1QCY13. The
bank posted a modest 3.7 percent year-on-year growth in profits in the first quarter of CY13
which is the highest growth amongst the big five bank- as three of the other leading banks
have recorded decline in profits during period.
Bank for Life Internship report
Ata ul mustafa
11014220-028 Department Of Management Sciences (MBA 3.5)
The top line story went as expected; low interest rates and no major activity in private
lending restricted mark-up income. A significant portion of deposits was parked in
government papers, which grew by nearly 23 percent year-on-year
The NII as a result dipped as the SBP raised the requirement of minimum return on fixed
deposits, squeezing the gross spread ratio from 61 percent last year to 58 percent for
1QCY13.
What really mattered was MCBs effort to cut down its operating expenses. The bank
remained the only one amongst the top five, to have recorded a dip in year-on-year operating
expenses, where all other banks saw a sizeable jump. This is perhaps the only way banks can
make up for the low interest rate scenario and their safety approach lending approach.
MCBs CASA ratio stands at a very healthy 84 percent, much higher than the peers. This is
where it can shield itself to a large extent from the SBPs revised requirement of minimum
return on average month deposits.
MCB AWARDS
2012 Euromoney: Best Bank in Pakistan
2012 The Asset Triple A : Best Domestic Bank- pakistan
2012 NFEH: CSR Business Excellence Award
2011 CFA Association Pakistan: Most Stable Bank of the Year
2011 CFA Association Pakistan: Best Bank of the Year
2011 Euro money: Best Bank in Pakistan
2011 ICAP / ICMAP: BCR Award 2010 - Banking Sector
2011 SAFA: Joint 2nd Runner-up for BCR 2010
2010 The Asian Banker: Strongest Bank in Pakistan
2010 The Asian Banker: Leadership Achievement Award
2010 MMT: Best Bank Led MMT Service
2010 ICAP / ICMAP: BCR Award 2009 - Banking Sector
2010 SAFA: Certificate of Merit Award for BCR 2009
2009 Asia money: Best Domestic Bank in Pakistan
2009 The Asset: Best Domestic Bank in Pakistan
Bank for Life Internship report
Ata ul mustafa
11014220-028 Department Of Management Sciences (MBA 3.5)
2008 Euro money: Best Bank in Asia
2008 Euro money: Best Bank in Pakistan
2008 Asia money: Best Domestic Bank in Pakistan
2006 Asia money: Best Domestic Bank in Pakistan
2006 Euro money: Best Bank in Pakistan
2005 Asia money: Best Domestic Bank in Pakistan
2005 Euro money: Best Bank in Pakistan
2004 Euro money: Best Bank in Pakistan
2004 Asia money: Best Domestic Bank in Pakistan
2003 Euro money: Best Bank in Pakistan
2001 Euro money: Best Bank in Pakistan
2000 Euro money: Best Bank in Pakistan
Change of Name:
The name of bank has been changed from Muslim Commercial Bank Ltd to MCB Bank Ltd.
Shifting of Head Office:
In 2008 the head office of MCB was shifted to Lahore in a newly constructed
building, namely MCB House, located at Jail Road, from Karachi.
5.2.4Products and Services
During my stay I observer that a large verity of products and services are offer by the
MCB Bank and I will explain in detail these services and product as functioning of
commercial bank.
Main Products and Services are following
Bank for Life Internship report
Ata ul mustafa
11014220-028 Department Of Management Sciences (MBA 3.5)
Deposit
Bank accepts deposits which are maintain by the bank in different kinds of accounts. MCB
bank offers these accounts for depositing the funds.
Current Account
MCB Bank offers a variety of current accounts to provide to the everyday transactional
needs of various customers.
Savings Account
MCB savings accounts offer attractive profit rates as well as flexibility to transact.
Terms Deposits
MCB Term Deposits offer attractive short to mid-term investment options with flexibility,
convenience and security.
Loans and Advances
Banks grant loans to the spenders so MCB bank also grants different kinds of loan to
different customers.
Consumers Loans:
MCB bank offer loans for personal use to the individuals or group of people it will be
granted on the income level of the desired individuals.
Commercial and Corporate:
MCB also offer commercial loans to the individual and industrial people it will be granted
on these three ways as under:
Hypothecation: In this case ownership and possession in names and hands of client.
Pledge: In this case ownership and possession in names and hands of bank.
Mortgage: In this case ownership in names of bank but possession in hand of client.
Running Finance:
It will be issue on small bases and personal guaranty is required for it.
Running Finance Instant:
It will be issue on pledge bases and personal guaranty is required for it.
Bank for Life Internship report
Ata ul mustafa
11014220-028 Department Of Management Sciences (MBA 3.5)
Cash Finance:
It will also issue on pledge base pledge and personal guaranty is also required for it.
Cash for Cash:
It will also issue on pledge bases but in this case pledge assets must be liquid and personal
guaranty is also required for it.
Demand Finance:
It will be issue on mortgage bases and personal guaranty is also required for it.
Others Products and Services
MCB Visa Credit Card
MCB offers a complete suite of Classic, Gold and Platinum Visa Credit Cards focusing on
providing, superior service, travel privileges & shopping pleasure.
MCB Smart Card
MCB Smart Card is the key that enables access to convenient banking services.
MCB Rupee Travelers Cheque
Rupee Travelers Cheque, being the market leader, is the most widely accepted way to pay
cash for travel-related purposes.
MCB ATMs
MCB has one of the nation's largest ATM networks with over 650 ATMs and still growing.
MCB Mobile ATM
MCB Mobile ATM not only provides world class banking service but also provide
convenience.
MCB SMS Banking
SMS anytime to get information regarding balance, mini statements and credit card related
information once your card is linked.
Bank for Life Internship report
Ata ul mustafa
11014220-028 Department Of Management Sciences (MBA 3.5)
MCB Mobile BANIKING
MCB Mobile is a quick easy and secure way to recharge mobile phones, transfer money, pay
bills and do much more to access the business at you lap at any ware.
MCB Call Center
There‟s no easier way to bank than the new enhanced 24/7 MCB Call Center, which blends
innovation and convenience to provide Banking Services that go beyond expectations.
MCB Investment Services
MCB Investment Services offer distribution of mutual funds managed by the leading fund
managers of Pakistan
MCB Advisory Services
MCB also provide financial advisory services, commercial structuring support and access to
capital resources to help companies successfully finance their business/project.
MCB Lockers
Lockers of different capacities are available nationwide.
MCB Banc assurance
MCB Banc assurance has created a one-stop shop for all your financial and insurance needs.
MCB Local Rupee Drawing Arrangement
Transaction Banking Department at MCB provides Local Rupee Drawing Arrangement, a
Partnership with global transfer agents
Open accounts in Pakistan whilst being abroad & much more product for small banks and
financial institutions.
MCB Home Remittance
MCB Home Remittance provides a faultless inflow of foreign remittances credited in the
beneficiary‟s account within minutes.
Bank for Life Internship report
Ata ul mustafa
11014220-028 Department Of Management Sciences (MBA 3.5)
Hassle free money Transfer
Receive payment at any MCB branch
MCB Quasi Equity/Hybrid Instruments
MCB places a group of debt that has some uniqueness of equity such as being unsecured,
subordinated or with a budding equity upside.
MCB Equity Capital Raising
MCB offer capital for their clients by offering common or preferred equity to public or
private investors, through initial public offers, offers for sale, rights issues and private equity
placements
MCB Islamic Banking
MCB Islamic Banking provides Reba Free and Sarah Compliance services to a variety of
customer segments
Online banking :
MCB offer his customer online transfer of his money .this product of bank is more
appreciated in the field of banking .because a person can transfer his amount any place.this
could provide a great facility to customer.
Bank for Life Internship report
Ata ul mustafa
11014220-028 Department Of Management Sciences (MBA 3.5)
5.2.5 PESTL ANALYSIS
PESTL analysis is a framework that is used by the organization to examine the external
macro environment in which a firm operates. PESTL is the abbreviation of:
• Political
• Economical
• Social
• Technological
• Legal
5. 2.5.1. Political and legal environment:
Political instability in Pakistan can lead to changes in laws and policies which can be
in favor or against the banking sector.
Political environment is composed of government laws and regulations that influence
and limit the various organizations and individuals. These laws can contain the new
opportunities for business. Business legislation has the following main purposes.
To protect the customers from the unfair business practices adopted by the banking
companies.
To protect the interest of the society form the unfair business behavior
And also protect the banking companies form unfair business companies
5.2.5.2 Economic trends:
Economy of Pakistan is facing issues about ,defence..
Employment
Inflation is very high which will decrease the demand as purchasing power is
decreasing.
illiteracy
Value of rupee is decreasing which is pressurizing the economy
Interest rate is increasing so loan taking has decrerased
budget deficit
consumer income
saving rates
Bank for Life Internship report
Ata ul mustafa
11014220-028 Department Of Management Sciences (MBA 3.5)
5.2.5.3. Social environment:
Cultural issues can be there but still as there are a number of multinational
companies there, therefore, cultural issues are not prominent. People in a society
consciously and unconsciously interact with
Lack of experts is in our country regarding management hence innovative activities
are slow and conventional methods are adopted.
Cultural strain to savings is the reason due to which investment remains low .
Inadequate Empowerment is also a usual problem in our organization as every
person want to get more power hence there is less delegation of authority and
decision making.
Others
5.2.5.4. Technological factors:
Technological factors have played a very important role in shaping the lives of
people. People are highly skilled and MCB can introduce new technology to increase
competencies. New technology is creating effects which can be observed in long run.
The improvement techniques involved online banking.
MCB has computerized its most of the branches but still some are manual there is
need to computerized otherwise customers will get bad image.
Employees of each organization need IT training and organization has this trend.
MCB will have to follow it.
5.2.6 CONTRIBUTION OF ORGANIZATION TOWARDS ECONOMIC
DEVELOPMENT
MCB (Muslim Commercial Bank) is performing well after its incorporation. With
every passing day the revenues of MCB are growing and along with the profitability
is also increasing. Bank re-invest these revenues in the businesses and profit is
generated.
Standard of living of people is becoming better as MCB is providing the jobs
opportunities to the young and new talents .
Textile sector is promoting
Agriculture sector is growing better and better as bank provide loans to agriculturist.
Cost effective financial services are providing to people and business community.
Industry sector is growing rapidly with the help MCB investments.
Foreign remittance is also increasing with the efficient and cost effective services of
MCB.
Bank for Life Internship report
Ata ul mustafa
11014220-028 Department Of Management Sciences (MBA 3.5)
Some financial Ratios
1) Earning Assets to total Assets
= Earning Assets / Total Assets*100
Year 2011 Year 2012 result
Amount in Rs. ----millions Amount in Rs. ----millions
87.14% 86.61% decrease
Interpretation
The efficiency of the banking firm is measured by its ability to utilize its assets in a manner
that they could be profitable for the firm. The earning assets to total assets ratio of MCB
bank ltd is unfavorable in 2012. The result shows that the bank has put shorter of assets in
top work in both the years and the lower results in 2012 as compared with the base year
2011 shows that the bank is not effectively managing its assets. Although the bank has made
more investments in 2012 but the total assets has decreased more than the earning assets.
Overall the management is showing its efficiency in managing the assets of the MCBbank
Ltd.
2) Loan to Deposit ratio
= Advances / Deposits
Year 2011 Year 2012 Result
Amount in Rs. ----millions Amount in Rs. ----millions
43.96% 46.33% Decrease
This ratio shows how much advances and deposit percentage in Bank
Interpretation
The ratio shows that the loan to deposit ratio is decreased in 2012. It means that the
relationship of assets and liabilities with all requirements of central bank of the country
Bank for Life Internship report
Ata ul mustafa
11014220-028 Department Of Management Sciences (MBA 3.5)
affects the bank and the unfavorable is due to the strict monetary policy of the State Bank of
Pakistan.
3)Market to Book value Ratio
= Market value of Share/Book value of share
Year 2011 Year 2012 Result
Amount in ----rupees Amount in ----rupees
1.43times 2.19times Increase
Interpretation
This ratio shows that how the management of MCB bank ltd is efficiently and effectively
working to boost up the value of shareholders as well as the banks value. Market to Book
value ratio is increased in year 2012 as compare to the base year 2011. The increase in the
ratio is favorable to the bank which showing that the market worth of MCB bank ltd is
increasing.
4)Capital adequacy ratio
Year 2011 Year 2012 Result
21.79% 22.13% Increase
Interpretation
It‟s a pleasure for MCB that its capital ratio is increased as compared to base year
2011 and the risk factor is decres .thats increase the worth of MCB in the market.
5)profit before tax ratio
Year 2011 Year 2012 Result
46.20% 46.89% Increase
Bank for Life Internship report
Ata ul mustafa
11014220-028 Department Of Management Sciences (MBA 3.5)
Interpretation
Profit before ratio is increase in 2012 as compared to base year 2011 that show
the overall success of MCB in the market financial point of view and also plus point for
MCB in futucher.
Entity credit rating
Credit rating in 2013 in long term point if view AAA and this is proud for MCB.
Cash flow also define the progress of MCB in 2012 as compared base year 2011
Bank for Life Internship report
Ata ul mustafa
11014220-028 Department Of Management Sciences (MBA 3.5)
5.3 Organizational structure
Bank for Life Internship report
Ata ul mustafa
11014220-028 Department Of Management Sciences (MBA 3.5)
Organization hierarchy chart
Board of Directors
Mian Mohammad Mansha (Non-Executive Director)
Chairman
S.M. Muneer (Non-Executive Director)
Vice Chairman
Tariq Rafi (Non-Executive Director)
Shahzad Saleem (Non-Executive Director)
Sarmad Amin (Non-Executive Director)
Dato‟ Mohammed Hussein (Non-Executive Director)
Dato‟ Seri Ismail Shahudin (Non-Executive Director)
MianRazaMansha (Non-Executive Director)
MianUmerMansha (Non-Executive Director)
Aftab Ahmad Khan (Non-Executive Director)
ManzarMushtaq (Non-Executive Director)
Ahmad AlmanAslam (Non-Executive Director)
M.U.A. Usmani (Executive Director)
5.2.3 Number of employees and other progress
MCB is the most potential bank since 1947 not only for the customers but also for its
employees. MCB is providing the great number of opportunities and benefits to those people
who are willing to do job in MCB. The number of employees is continuously increasing at
MCB as with the span of the business volume of MCB is increasing. MCB is increasing the
career opportunities for employees and motivating them by providing the great number of
benefit and salaries according to their education and experience. Total numbers of
permanent employees working at MCB are 10090 in 2011 and 10612 in 2012.
Bank for Life Internship report
Ata ul mustafa
11014220-028 Department Of Management Sciences (MBA 3.5)
MCB ALLAHABAD BRANCH
This branch is located on G.T road Waziradad. This area is an industrial area and MCB
Allahabad branch provide its services according to needs and wants of the people of that
area It is a small size single segmented branch. Seven employees are working in this branch.
BRANCH MANAGER SHIEKH UMER SB.
OPERATIONS MANAGER NADIA AFZAL
CUSTOMER SERVICES OFFICER SAMREEN REHMAT
REMMITENCE OFFICER WAQAAR SB
CASH OFFICER HASSAN SB
OFFICE BOY AQEEL abbas
SWEEPER FAISAL
Bank for Life Internship report
Ata ul mustafa
11014220-028 Department Of Management Sciences (MBA 3.5)
HIERARCHY OF MCB BRANCH
General Manager
Regional Manager
Branch Manager
Customer Service Department
Branch Credit Committee Internal Auditor
Account Opening
Department
General Banking Credit Department
Foreign Exchange
Department
Bills Remittances
Department
Clearing
Department
Cash Deposit
Department
Bank for Life Internship report
Ata ul mustafa
11014220-028 Department Of Management Sciences (MBA 3.5)
3.4 INTRODUCTION OF ALL DEPARTMENTS
• Operations Department
• Clearing Department
• Remittance Department
• Other Department
• Cash Department
• Accounts Department
OPERATIONS DEPARTMENT
In Operations department I was under supervision of Miss NADIA, Operational manager.
And I learnt to open accounts of different types and nature which are as follows
TYPES OF ACCOUNTS
Single
Joint
Partnership
Private Limited
Public Limited
SINGLE
Only one person can operate this a/c. An individual who can fulfill the requirement of bank
can open this a/c. We can call it a personnel or individual a/c. The requirements for this type
are National Identity Card Photocopy, Minimum Deposited Balance, Account Opening
Form, Letter of Kinship etc.
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
Bank for Life Internship report
Ata ul mustafa
11014220-028 Department Of Management Sciences (MBA 3.5)
Commencement of business and private registration, resolution of board of directors,
commencement of business, memorandum and articles of association and balance sheet etc.
PRIVATE LIMITED
Such type of account is opened in the name of the businesses having private limited concern
and mostly medium business enterprises open such kind of accounts. All the board of
directors have to submit the declaration regarding the account operator on the company pad
and with the rubber stamp with the signature of the all the members of the board of directors.
In case of any change in 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
Public Limited A/C type of account is opened in the name of the businesses having Public
limited concern and mostly medium business enterprises open such kind of accounts. And
terms regarding board of directors are the same as of private limited.
NATURE OF ACCOUNTS
1. Current Account
2. PLS Saving bank A/C
3. Khushali Bachat Account (KBA)
4. Saving 365 A/C
5. Basic banking A/C (BBA)
CURRENT ACCOUNT
The current account is the most common account and the most preferred amongst business
concerns. The theoretical explanation for this would be that they can function more
efficiently but since in reality there are no restrictions on any with drawl the only reason we
could think of is that current account facilitates online banking which saves time (which in
this ultra competitive business world the most precious resource) to a considerable extent. In
case of a current account the client does not earn any interest. Current account enables the
client to do cash transactions in a more efficient manner.
feature
A sum of Rs. 1000/= in cash as initial deposit is required for opening a current account and
the same may be maintained as minimum average running credit balance. No profit is paid
on credit balances held in current accounts. The bank reserves the right to allow opening of
current a/c at its description. All deposits and withdrawal from a current a/c takes place only
at the branch where the account is being maintained. Current a/c cannot be overdrawn,
except by prior agreed agreements with the bank. The correspondence relating to current
Bank for Life Internship report
Ata ul mustafa
11014220-028 Department Of Management Sciences (MBA 3.5)
A/Cs should be addressed to manager of the branch where the account is being maintained.
The account holder can draw sums from his account by means of cheque supplied to him by
the bank for that particular account. Account holder should take well care of the
chequebooks issued to them.
PLS SAVING BANK A/C
This account was started in 1980s after the issuing of banking ordinance in 1980 by Zia
Government to develop Islamic banking in Pakistan. In this case customer would be
responsible for bearing profit as well as loss. The bank would be within its rights to make
investment of credit balances in the PLS saving accounts in any manner at its sole discretion
and to make use of the fund to the best of its judgment in the banking business under the
PLS system. For withdrawal of larger amount, 7 days notice in writing is required to be
given.
Minimum balance is Rs.500/=
Not more than eight withdrawals in a year allowed
More than Rs.15000/= are not allowed to draw
Seven day notice is required for big withdrawal
Zakat deducted on @ 2.5%
Profit calculated on monthly basis
Profit paid on annually basis
SAVING 365 ACCOUNT
This account is newly developed of MCB and it provides flexibility of saving account to
business people. Profit on deposits will be payable on daily product basis on balance of RS.
500,000/- and above. However, if balance in the account falls below RS. 500,000/- on any
day, the product will be ignored. There will be no restriction on withdrawal from the
account. Zakat and withholding Tax is also applicable on the account opened under this
scheme.
Minimum balance is Rs.500,000/=
Below minimum balance, profit calculation ignored
Profit calculated on daily basis
Profit paid on annually basis
10% Withholding Tax on minimum balance
Bank for Life Internship report
Ata ul mustafa
11014220-028 Department Of Management Sciences (MBA 3.5)
Zakat deducted on @ 2.5%
KHUSHALI BACHAT ACCOUNT
Saving type account
Rate of return is 8% per annum
Profit calculated on daily basis
Profit paid on half yearly basis
Utility bills can be debited through this a/c
No charges will be debited for utility payments
BASIC BANKING A/C (BBA)
Introduced specially for salaried persons.
Minimum balance is Rs.1000/=
No service charges.
Only two transactions allowed, in one month.
For more than two transactions Rs.35/- per transaction.
Single natured A/C.
ACCOUNT OPENING PROCEDURE
Following step must be falowed for a/c opening
• The customer would like to open his account is required to meet with the manager or
second officer, who will give him an “APPLICATION FORM,KYC.
Specimen Card
As I have already mentioned about “Signature Specimen Card”. This card contains two
signatures of an applicant, applicant A/c no, A/c type, branch code, title of A/c, it will be
attached with an application form. Banker uses this card at the time when he receives the
cheque; he compares customer‟s signature with the signature on the cheque for avoiding
fraud.
Manager has every right not to accept this contract if he is not satisfied by the details
provided by the customer.
Bank for Life Internship report
Ata ul mustafa
11014220-028 Department Of Management Sciences (MBA 3.5)
Account Opening Register
• 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
numbers are allotted serially. After opening a saving and current account every applicant‟s
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.
Types Of Customers
Individual
Only one person can operate this a/c. We can call it a personnel or individual a/c.
Followings are required to open it.
Signature of customer on back of AOF.
N.I.C photocopy attached
Mention next of kin (nominee)
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
Any one of us or survivor
In first case if one of the a/c holders died then the other can operate the a/c
individually.
Any two/All of us jointly
In second case if one of the a/c holders died then the other partner can‟t operate this
a/c individually without having permission from the court.
Requirements
Sign of both customers on back of AOF
Sign on joint A/C # mandate
Name and A/C # of introducer
NIC copies of both members.
Mode of operation.
Partnership A/C
For partnership a/c, along with the application form signature card.Other documents
are also needed such as
Partnership deed certified copy
NIC photocopies of all partners.
Partnership mandate for account signed by all the partners
A letter duly signed by all the partners containing the operating instructions of the
account also has to be taken.
In case of addition or withdrawal of any partner a new agreement will be required.
Bank for Life Internship report
Ata ul mustafa
11014220-028 Department Of Management Sciences (MBA 3.5)
Company Account
For company accounts following documents are required: -
Copy of certificate of incorporation
Memorandum of Association
List of Director‟s
Copy of board resolution
Certificate of Commencement of Business
Copies of NIC of Director‟s
Company‟s Balance Sheet
KNOWING YOUR CUSTOMER : After entering information KYC is filled up. It should
be ensured that at the time of filling information in KYC, a customer should be physically
present. After this all information is saved in system. I filled KYC form also.
STAMPING: Then it is stamped. Stamps like. BAL sign verified, Sign Admitted Stamp,
Sign Verified stamps etc are affixed.
APPROVAL: This account is further approved by Manager Operations.
SEND FORM TO HEAD OFFICE : After fulfilling all the requirements and verifying the
forms from operation manager the account opening form is sent to Head Office Karachi and
make request to issue the printed cheque book.
LETTER Of THANKS : Subsequent to the opening of an account, letter of thanks should
be sent under registered post or courier service to the customer and the introducer.
ISSUANCE OF A CHEQUE BOOK : After opening an a/c with the bank, the a/c holder
cannot immediately start operating his/ her account. The cheque book is issued, when a
customer will submit a copy of letter of acknowledgement duly signed by him, in case of
new account. And for subsequent issuance of cheque book He/she has to make a request
once again in the name of bank for the issuance of cheque book and he should mention title
of A/C, A/C number, sign it properly and mention the number of leaves requires. Normally a
cheque book having at least 25 leaves is issued but it can also be of 50 leaves.
CLOSING OF AN ACCOUNT
There is no. of reasons of closing an account. Some are listed below:
If customer desires to close his account
In case of death of one account holder.
Bank for Life Internship report
Ata ul mustafa
11014220-028 Department Of Management Sciences (MBA 3.5)
Bankruptcy of the account holder.
If an account contain nil balance or not up to the requirement of rules.
Before closing any account, bank send letter to the account hold for informing him that his
account is going to be closed. There is need an approval form higher authority to close any
account.
CLEARING DEPARTMENT
In clearing department I worked under supervision of Mr.WAQAR. In clearing department
and learned about inward and outward clearing and I also learnt about,
MEANING OF CLEARING
The word clearing has been derived from the word “clear” and is defined as,” A system by
which banks exchange cheques and other negotiable instruments drawn on each other within
a specific area and thereby secure payment for their clients through the Clearing House at
specified time in an efficient way.”
CLEARING HOUSE
It is a place where cheques are presented, collected from bank branch. It is one of the
services provided by NIFT to other commercial banks. NIFT acts as a clearinghouse.
NIFT
NIFT stands for National Institutional Facilitation Technologies. Clearing House of SBP has
shifted a tiresome part of its work to a private institution named NIFT. NIFT collects