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21439291 Internship Report on MCB (Repaired)

21439291 Internship Report on MCB (Repaired)

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Internship Report submitted to the Faculty of Commerce &Accountancy in Partial Fulfillment of the Requirements for the Degree of Mater in commerce


Name of Student: Sana javaid Roll Number: 12052054-045
Date of Submission:15

september 2013

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

University of Gujarat
(G.T Road Sciences Campus)

Faculty of Commerce &Accountancy
Course Title: Internship (Report based on Internship) Course Code MGT-403



All the praises are for the almighty Allah, the creator of universe, the most gracious & merciful, and the source of all knowledge, wisdom within and beyond my comprehension. Allah is the only, who can help us in every field of life. I bow my head before him who enabled me to work on this report and helped me to complete this report successfully. All praises after almighty Allah are due to holy prophet Hazrat Muhammad (Peace be upon him), the most perfect exalted among, who & us is forever a torch of guidance and knowledge for humanity as a whole. Afterward, I am greatly indebted to my Parents and the instructor for providing me excellent guidance to successfully complete my Internship report of National Bank of Pakistan. I here by provided a golden opportunity to perform working activities at NBP for a period of 6 weeks. The aforesaid occupancy bestow me precious moments to make learning and get experience of the practice life with a successful approach. Soon after, I am heartily grateful to Mr. Abdul baqi ,Branch Manager of the National Bank of Pakistan, who confer me possibility to enhance my understanding and knowledge about the working systems of NBP, which would ultimately useful for my future career and whose cooperation enables me to compile this comprehensive report.


2 4 Chapter#1 5.1.2 5.1.3 5.1.4 5.1.5 5.1.6 5.1.7 5.1.8 5.1.9 5.2 5.2.1 5.2.2 5.2.3 5.2.4 Chapter#2 6.1.1 6.1.2 6.1.3

Acknowledgement Executive summary Introduction Histroy of MCB Award of MCB Business Volume Mission Vision General profile Product &Services Loan Product Corporate Banking Online Service Virtual Banking Islamic Banking Pest Anaylisic Organization structure Branch Network Hierarchay of organization Competitor of M.C.B


Commercial Bank of Pakistan. The bank is using SWIFT for transfer of information about imports and exports. MCB SFK branch has Currently Following three Departments General Banking Department.4. MCB was incorporated under companies‟ act 1913 on 9th July. MCB became Pakistan‟s first privatized bank. The network of bank branches now covers a very large segment of national economy. The state bank of Pakistan is the Central bank of the country and was established on July 01. 1947. The bank has corporate branch at Shah rah-e-Faisal Karachi (SFK). specialized credit institutions. Advances Department & Foreign Exchange 5 . Bank employees and other common peoples can also purchase these shares and earn profit. The State Bank of Pakistan issues the shares of these periodically. State Bank of Pakistan. 1948. Exchange Banks. Cooperative banks.The bank transferred its registered office to Karachi. EXECUTIVE SUMMARY The banking structure in Pakistan comprises of the following types. Saving banks. where the Head Office is presently located. In April 1991.

Paying-in-slip. This department maintains the following sheets.Department. Cheque Book. This department works under the accounts department and deals with cash deposits and payments. Mail Transfer. In remittance department like any other bank MCB also have instruments for transferring of money. 5 6 . and ledger of account cash received voucher sheet Cash paid voucher sheet.e. The procedure begins with the punching of account opening form to the customer file i. customer‟s master file. In cash department both deposits and withdrawals go side by side. books. Cash balance book. bank send letter to the account holder for informing him that his account is going to be closed. Telegraphic Transfer. Before closing any account. To open an account the customer has to meet the general banking manager with an introducer. The clearing in Karachi at MCB or other banks is being done through NIFT (National Institute of Facilitation Technology).

The bank has restructured its asset portfolio and rationalized the cost structure in order to remain a low cost producer.2.700 branches. MCB is also catering to the growing middle class by providing new asset and liability products. including Islamic banking branches.5. During the last fifteen years. "to become the preferred 7 .1 INTRODUCTION MCB is one of the leading banks of Pakistan with a deposit base of about Rs. MCB looks with confidence at year 2005 and beyond.HISTORY AND BACKGROUNG MCB Bank Limited (Formerly Muslim Commercial Bank Limited) has a solid foundation of over 50 years in Pakistan. In 1974. utilizing its extensive branch network. Incorporated in 1947. Corporate clientele includes public sector companies as well as large local and multinational concerns. The Bank has a customer base of approximately 4 million and a nationwide distribution network of 1. the Bank has concentrated on growth through improving service quality. MCB now focuses on three core businesses namely Corporate. MCB was nationalized along with all other private sector banks following the Bank Nationalization Act 1947. and ATM‟s.300 billion. MCB is now in a consolidation stage designed to lock in the gains made in recent years and prepare the groundwork for future growth. Eighteen years after privatization. 280 billion and total assets of around Rs. MCB soon earned the reputation of a solid and conservative financial institution managed by expatriate executives.1. developing a large and stable deposit base. making strides towards fulfillment of its mission. investment in technology and people. Commercial and Consumer Banking. 5.1. with a network of over 1700 branches.

2001. 2004. MCB also won the "Best Bank in Pakistan" award in 2008. MCB also has the distinction of winning the Asia Money award in 2009.3 MCB has become the only bank to receive the Euro money award for the seventh time and Asia money award for fifth time in the last ten years . 2005. 2003. 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 2009 Asia money: Best Domestic Bank in Pakistan 2009 The Asset: Best Domestic Bank in Pakistan 2008 Euro money: Best Bank in Asia 2008 Euro money: Best Bank in Pakistan 2008 Asia money: Best Domestic Bank in Pa 8 .provider of quality financial services in the country with profitability and responsibility and to be the best place to work". 2006. 2008. 2006. In addition. 2000.MCB won “Best Banking Asia” award in 2008.1. 5. 2005 & 2004 for being "The Best Domestic Commercial Bank in Pakistan".

858 2009 12.907.000.000 - Years 10 09 08 07 06 9 .4) Business volume in terms of Revenue. Assets.996 2006 6.000 8. Deposits. 2007 8.000 12.000.000 4. o Total Revenue (Interest Income + Non Interest Income) Years Total Revenue 2010 12.483.000 10.542 Total Revenue 14.000.000 6.1.2006 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 (5. Advances and Investment is as under.824.000.000.459 2008 12.000 2.417.

045 26.49 1.142 21.1.022 12.367 23.583 727.324 103.415 17.271 28.Year Total Assets Deposits Advances Investments Share holders 'equity Pre-tax Profit After-Tax Profit Earnings per Share Rs.563 13.311 17.276 15.65 1.194 591.939 412.” Mission Statement: “We are a team of committed professionals.261 14.947 53.” (5.319 211.248 2008 817.250 14.152 477.987 170.05 1.” 10 .146 69.6)Vision Statement: “To be the leading financial services provider.035.441 2007 762.001 15.758 624. In doing so.287 16.822 81. Number of Branches Number of employees 2010 1.025 832.1.019 (5.872 316.034 14.243 217.05 1289 16457 2009 944.643 94.907 340.300 17.079 2006 635.562 13.061 19. providing innovative and efficient financial solutions to create and nurture long-term relationships with our customers.507 301. we ensure that our shareholders can invest with confidence in us.5)Mission: “To become the preferred provider of quality financial services in the country with profitability and responsibility and to be the best place to work.15 1.762 24.459 11.110 139.133 501. partnering with our customers for a more prosperous and secure future.465 475.

7GENERAL PROFILE PRINCIPLES OF PERFORMANE  Customer Focus: Over the years MCB has developed strong relationships with its customers by understanding their needs and treating them with respect. ensuring that it not only meets. making sure that we do things right. MCB has always taken initiatives in bringing banking into a new arena. from branch banking to internet banking and from face-to-face customer interaction to online accessibility.5. With this quest for quality. from cash to the convenience of plastic. and every time. first time.  Employees Respect: MCB encourages diversity and treat each of our employees with fairness. but exceeds their expectations. The driving force behind its commitment and services is its focus on customers. MCB treats its employees as its internal customers and ensure that the requirements of internal customer focus are always met. Equipped with in- 11 .  Quest for Quality: MCB strives to achieve excellence by ensuring that every moment of our time is spent in adding value. MCB gives constructive feedback for their continuous development and seek suggestions from all employees for further improvement.1.  Team Based Approach: MCB believes in achieving its Mission and Vision by working together as a combined group. The bank ensures that quality performance is acknowledged and rewarded and exercise utmost responsibility in decision-making with regards to our employees. dignity and importance.

e. ( 5.1. In addition.8)PRODUCTS AND SERVIES Commercial Banking Deposit Accounts:  Basic Banking Account: A simple account to produce the habit of saving for beginners like students. no any monthly or annual charges applicable on this account.  Pak Rupee Current Account: MCB‟s Pak Rupee Current Account offers you the convenience of unlimited withdrawals i. Also you can avail the facility of MCB ATM card and MCB smart card. The 12 . the bank strives for optimum-results from our co-workers and bringing out peak performances by working towards common goals and objectives in today's dynamic banking environment. access to your funds whenever you want without any notice. There is no limit on the number of transactions you make in a day plus you can avail finance facility up to 75% of the total deposit. The bank realizes that it has a responsibility to the society in which it operates and it seeks ways of playing a positive role for the betterment of the community at large for a progressive environment.  Good Corporate Citizenship: MCB seeks to continuously improve the quality of life in our communities. better living and a brighter future. 1000. no minimum balance required.depth product knowledge. two deposits and two withdrawals can be made in a month. and recognizing the strengths in each individual. The account can be opened with only Rs. you have access to a countrywide ATM network convenient cash accessibility 24 hours a day.

 Foreign Currency Current Account: MCB‟s Foreign Currency Current Account offers you the convenience of unlimited withdrawals i. The facility also provides you with unlimited daily transactions with a limit on maximum withdrawal amount through the ATM machines. It gives you choice of 1 month. UK Pound Sterling. You can invest in any of the four currencies i.e.000. US Dollar. 2 years.  Pak Rupee Term Deposit: MCB Pak Rupee Term Deposit gives a higher rate of return. 3 months. Japanor Euro Your foreign currency account is exempted from Zakat and withholding tax. In addition.facility also provides you with unlimited daily transactions with a limit on maximum withdrawal amount through the ATM machines  Pak Rupee Savings Account: MCB‟s Pak Rupee Savings Account offers you attractive returns on your Pak Rupee investment with a minimum balance of Rs. 1 year. 10. There is no limit on the number of transactions you make in a day. 4 years and 5 year term deposits. 3 years. access to your funds whenever you want without any notice.e.Saving 365 The MCB Saving 365 calculates profits on a daily product basis and gives you the facility of unlimited withdrawals.  Foreign Currency Savings Account: MCB‟s Foreign Currency Savings Account offers you attractive returns on your Foreign Currency investment. You can also use MCB Smart card and Locker Facility at economical charges. 6 months.  MCB Foreign Currency Term Deposit: 13 . you have access to a countrywide ATM network convenient cash accessibility 24 hours a day.

6 months. 2 years. But when you really want to improve your life. easy processing and above all. with absolute satisfaction of cash flows. 50.  MCB Car4u: Life is like a chess board. flexible conditions.  Business Account With MCB Business Account you can avail higher number of free transactions with higher balance. You can make free Deposits and Withdrawals from all nation-wide branches. you make a power move.MCB Foreign Currency Term Deposit gives a higher rate of return. 4 years and 5 year term deposits. (5. The account can be opened with Rs. you can open a Smart Dollar Account at over 200 branches in Pakistan with a minimum amount of USD 10. So act today and get MCB Business Sarmaya and thus improve your business. 3 years. avail lucrative opportunities and expand your business. with lowest mark up 16%. 3 months.  Smart Dollar Account: The Dollar Khushali Account. It is affordable.19)Loan Products:  MCB Business Sarmaya: “MCB Business Sarmaya” is the best Running Finance facility against your residential property which empowers you to manage your business dealings better. MCB CAR4U Auto Finance is the power move that assists you in more ways than you ever imagined. no hidden costs. You plan your career options. 1 year.000. 14 . It gives the choice of 1 month.000. You analyze your business moves. a Dollar based account was introduced in 1993 at selected MCB Bank branches. Today.

even physical space. Plastic or "virtual" money. debit.The safest way to carry Cash. Today.  MCB Rupee Traveler's Checks: MCB Rupee Traveler's Checks were first introduced in 1993 as safe cash for traveling and travel related purposes. Like waiting for a home of your own. MCB Pyara Ghar: Some destinations require a long wait. money is moving away from distinct hard currencies and towards universal payment products that transcend national borders. MCB Pyara Ghar is an ideal Home Finance from your own bank that lets you Purchase.  MCB Master Card: Since the beginning of time. inevitably will replace cash and checks as the money of the future. people have tried to find more convenient ways to pay. Having your own home was never so easy. The product has been extremely popular and is preferred over cash by customers while traveling and in all walks of life. from gold to paper money and checks. MCB Rupee Traveler's Checks. Purchase a new TV. Take that muchneeded holiday. and electronic cash products. Finance a better education for your children. But with MCB Pyara Ghar it is now easy to step into your home and start living a real life. and.  Easy Personal Loan: MCB Easy Personal Loan provides you with the financial advantage to do things you've always wanted to but never had the sufficient funds for. Buy a car. Renovate or Construct your home the way you have always wanted. 15 . credit. Refurnish your house. time zones. with the Internet.

providing guarantees and other support services.1Online Services:  MCB ATM Services 16 .2  Cash Management Services: MCB‟s network of over 1700 branches in Pakistan enables it to collect and disburse payments efficiently with its cash management services. Pre-shipment and Post.  Trade Finance Services: Under Corporate Banking MCB offers trade finance services that include an entire range of import and export activities including issuing Letters of Credit (L/Cs). The loans are structured on the basis of underlying project characteristics and cash flows of the business. Cash Finance.  Term Loans: MCB offers Short to Medium Term Finance to meet capital expenditure and short term working capital requirements of our customers. purchasing export documents. This also enables it to offer you a choice of paper based or electronic fund transfer solutions including collection amounts.  Working Capital Loans: Based on the customer‟s specific needs. Tailor. cross branch on-line transactions etc.made solutions are developed keeping in view the unique requirements of your business.shipment etc.5. 5. Export Refinance.2. the Corporate Bank offers a number of different working capital financing facilities including Running Finance.

over 222 MCB ATMs in 41 cities nationwide and a network of over 12 banks on the MNET ATM switch. but also eliminates undue interest on your day to day credit card transactions. Just dial our Call Centre from the comfort of your home or office or wherever you happen to be.  MCB Debit Card: 17 . eliminating the need for you to make unwanted trips to your branch. 269 online branches. This success has been possible because of a never-ending drive to achieve higher levels of excellence. It offers basic banking services for your convenience. It provides 24-hour direct access to your bank account.With a solid foundation of over 50 years in Pakistan. The convenience of accessing your account balance information and mini statements whenever you want or wherever you may need them. with comfort and peace of mind.  MCB Smart Card: MCB now brings you MCB SmartCard -a secure and convenient instrument of payment with unmatched functionalities. with more than 750 automated branches. MCB is positioned at the forefront of the banking industry in Pakistan.  MCB Call Center: Keeping up with banking services can be tedious but not with MCB Bank. constantly striving to raise the level of performance. The convenience and flexibility of MCB SmartCard will help you live a smarter life.  MCB Mobile Banking: At the forefront of technological excellence. MCB proudly introduces MCB MOBILE BANKING. It not only helps you manage your expenses. Your balance is always within your reach and you spend accordingly. where phone service is at your fingertips.

based on the period specified. 5.  Mini-statements of each of the listed accounts showing recent transaction history for that account(s).Now MCB brings a secure. And it is free of cost.  Bulk Funds Transfer for Corporate Customers. With MCB Virtual Internet Banking you can access any of the banking services.  Detailed Account Summary of all listed accounts. Option for „Full‟ or „Partial‟ payment based on the payment conditions specified by a particular Utility Company. prior to the processing of specified payments and transfers. MCB‟s Virtual Internet Banking facility is simple and secure. maintaining accounts with MCB. to facilitate them in paying salary to the corporate employees. in advance.2.  Immediate or Scheduled Transfer of Funds between your own accounts.  Payment of utility bills for registered Utility Companies. MCB Virtual Internet Banking offers a wide range of online services which makes your banking accessible anytime and from anywhere. 7 days a week and throughout the year.  Check Book Request for any of your listed accounts. 18 . where you want to.  Payment/Transfer Alerts for reminding.  Bulk Salary Transfer for Corporate Customers. Scheduling of „One-Time‟ as well as „Recurring‟ bill payments.  Immediate or Scheduled Bills Payment. as well as to third-party accounts setup as beneficiaries. convenient and quick payment facility that enables you to do purchasing by using your existing MCB ATM / MCB Smart Card as a DEBIT CARD. 24 hours a day.  Statement-by-Period of each of the listed accounts. who maintain accounts with MCB.  Scheduling of „One-Time‟ as well as „Recurring‟ Funds Transfers.2Virtual Banking: MCB Virtual Internet Banking offers you the convenience to manage and control your banking and finances – when you want to.

Car Ijarah 2. MCB will give a separate unilateral undertaking that it will offer to sell the asset to the customer (lessee) at the maturity of the Ijarah agreement at a price that may be equal to the security deposit amount. is based on the „Ijarah wa Iqtina‟ concept which means the sale of the asset to the lessee after the Ijarah has matured. analogous to the English term 'leasing‟. Types of Ijarah: 1.2.3Islamic Banking:  Deposit Schemes : For customers who are looking for a deposit opportunity where they can purse their funds and reap halal returns on it.4) A broad view of market is important when management is interested in introducing better services for customers. hence the term „Wa Iqtina‟. MCB will be the owner of the asset. Rapid technological change. Equipment Ijarah (5. Under this scheme. global competition and the diversity of buyers preferences in many markets require the constant attention of the market 19 . 5. Personal Alerts for reminding of pre-specified events and occasions. we offer the following products:  Al-Makhraj Saving Account  Al-Makhraj Ianat Account  Al-Makhraj Term Deposit  Fund Based Facilities  Ijarah Products MCB‟s Islamic Ijarah.2. and the customer (lessee) will be given the asset to use for a certain period of time in return for monthly rental payments.

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. o To protect consumers from unfair business practices adopted by banking companies o To protect the interest of the society from unbridled business behavior. The available borrowing power depends on: o Consumer income o Saving rates o Consumption patrons o Rates of interest o Budget deficit o Exchange rates o Cost of living o Inflation 20 . evaluate changes in competitors positioning and guide the choice of which buyers to target and classify them according to respective segments. Mostly these laws create new opportunities for business. This environment is composed of regulatory agencies and government law that influence and limit various organizations and individuals.vouchers to identify promises business opportunities. Business legislation has following main purposes o To protect banking companies from unfair competition. see the shifting requirements of the buyers.  ECONOMIC TRENDS: A banking market requires better consumer market in volume along with higher borrowing power. Identification of external and macro factors that influence buyers and thus change the size and composition of market overtime involves initially building customer profiles.

norms and values. Tariq Rafi Member Mr. S. In brief PEST analysis affects the overall banking companies and provides us the information about the external macro condition. New technology is creating deep rooted affects which could be observed in long run. SOCIO-CULTURAL ENVIRONMENT: A society is shaped by beliefs. People in a society consciously and unconsciously interact with:     Themselves Others Organization Society  TECHNOLOGICAL FACTORS: Forces of technological advancement have played the most dramatic role in shaping the lives of people. The rate of change of technology has greatly affected the rate of growth of economy. M. Shahzad Saleem Member 21 . Muneer Vice Chairman Mr. Chapter#6 ORGANIZATIONAL STRUCTURE Board of Directors Mian Mohammad Mansha Chairman Mr. The improvement techniques involved in on line banking.

1 Commercial Banking Lahore East Lahore West Faisalabad Gujranwala 971 61 72 58 83 22 . Atif Bajwa President / CEO 6. Muhammad Ali Zeb Member Mr. Sarmad Amin Member Dr. Muhammad Yaqub Member Mian Raza Mansha Member Dato' Mohammed Hussein Member Mr.1. Aftab Ahmad Khan Member Mr. Abdul Farid Bin Alias Member Mian Umer Mansha Member Mr.Mr.

1.Islamabad Sargodha Peshawar Abbottabad Karachi East Karachi West Karachi Central Hyderabad Sukkur Quetta Bahawalpur Multan 83 82 64 82 51 42 17 58 52 34 54 78 (6.2)Organizational Hierarchy President Senior executive vice president Executive vice president Senior Vice p resident Vice president Assistant Vice President Grade 1 Grade 11 23 .

AVP) (6. & in different offices. Technology continued to play an important role in improving and expanding product offerings.3)MCB’s Competitive Strategies To be competitive the Bank has further reinforced its position in the Consumer Banking arena by streamlining and re-launching the consumer financing products and introducing more convenience based solutions. With the re-launch of auto finance and house finance products. 24 . MCB Virtual-Internet Banking was launched with wide ranging banking solutions for the customers ranging from individual to corporate customers and it has become the most preferred Internet banking solution in the country. the Bank pushed the products with full thrust.1. The Bank introduced more IT based products to cater to the changing lifestyles and needs of the customers. Head Office Divisional head (SEVP) Regional Office Regional Head (EVP) Zonal Office Zonal Head (VP) Branch Branch Manager (VP. The Bank has also launched a running finance facility against mortgage of property.Grade 111 Assistant Clerical Staff 1) Cashier 2) Technical Staff Non-Clerical Staff 1) Messenger 2) Dispatch Rider The Organizational chart within deptt.

those relationships. the Bank will be opening its representative office in Dubai and entering into major strategic alliances with banks in the UAE/ especially for marketing our consumer banking products to nonresident Pakistanis. To increase its international presence. It is projected to earn US$ 1 million in its first year of operations. both individuals and companies. 25 . Similarly. To provide timely and updated information. which were confined only to current account facility. Some wide-ranging new strategic initiatives were also taken up which will be important for the Bank in years to come. The Bank has taken the lead in introducing the innovative concept of centralizing Trade Services in the country by providing centralized foreign trade services to branches with a view to improve efficiency. Similarly. expertise and reduce delivery cost. enhancement of customer service standards. ATMs and MCB Call Centre. The branch network was expanded to Lahore and Multan during the last year and recently been extended to Hyderabad and Faisalabad. The Bank plans to further expand its Islamic Banking branch network to other metropolitan areas and also to introduce new sharia compliant banking solutions to a wider range of customers for satisfying their individual and business needs. The Islamic Banking initiative has been very successful in attracting new customer. process efficiency and controls. have grown into stronger business relationships. MCB has also provided a new look to its website which is user friendly and considerably easy to browse. feasibility is also being carried out for entering other international markets. Furthermore. MCB's operations continued to be streamlined with focus on rationalization of expenses. handling trade transactions of select countries in the Asia-Pacific region. A private company has been formed in Hong Kong (fully owned subsidiary of MCB) in partnership with Standard Chartered Bank. currently with six payment partners.MCB also had the privilege of being the first Bank in Pakistan to launch the comprehensive bill payment facility through its alternate delivery channels which include Internet Banking. the Bank also took initiatives to increase the usage of debit facility. re-alignment of back-end processing to increase productivity.

retaining and motivating outstanding people. In view of the competitive environment. Challenge for MCB is to provide an environment in which employees can better realize their potential. 6 26 .Management of Human Resources has been one of our core focus areas. MCB is committed towards attracting. MCB is also strongly committed to training its staff at all levels. the Bank is focusing on performance and introducing a more robust performance management system. The Bank introduced 'reward for performance' where high potential officers were identified and rewarded accordingly.

(6. 27 . But sometimes when the total does not match with the sheet of the PRINTING I had to do it two or even three times. At the end of each day I totaled the electricity.1)First week:         Observed basic business process Observed movement of customers and Employees inside the Branch Learned basics of Account Opening Opened Accounts of GOVT employed persons Opened PLS saving Accounts Opened BBA accounts Opened Student account Worked as CSO(Customer Service Officer) because CSO was on leave and performed the following activities: o Attended phone calls o Attended customer inquiries o Received ATM forms o Received and entered daily DAK o Filled cheaque book requisition slips In first week I observed the basic business process. Mostly the total was correct.The following activities have been done during the time period of internship. water. telephone and check amounts. Mainly during the internship I worked in all the departments and learned the working and procedures that are necessary for the processes. The activities given below are on the weekly basis.

These steps are. Copy of CNIC Copy of CNIC of all the partners Request letter of account opening Company letter head 28 . occupation. e-mail address.  When a customer wants to open an account the authorized officer gives him/her an account opening form. phone no‟s. When a customer opens his/her account it increases the business of the bank. etc.100 to 1000. The following steps are taken while a new customer enters in a bank for opening his/her account. Photo copy of utility bill. address of the customer.  All the required fields that are mandatory for account opening should be filled compulsory. This form is filled out with the hands of the customers. This form is known as “RELATIONSHIP CONTRACT FORM”. Photo copy of utility bill In case of non employed person Copy of CNIC A letter from Dist.100 to 1000. (b) requirements for opening an account for the partnership. correspondence address.Process: Account opening is the basic procedure to create a relationship between a customer and a banker. Nazam Initial deposit of Rs. (a) requirements for opening an account for the individual. These are the fields like title name of the customer. In case of employed person              Copy of CNIC Salary slip A letter from employer Initial deposit of Rs.

is attached with it.   Copy of registered certificate (if registered) Signature specimen duly attested Initial deposit may be from Rs. 29 . ►For saving account Rs. Second week: In the second week of my internship I learned about Cheaque book.5000 is the limit. On which the authorized officer put his/her signature and pasted signature admitted and verified and bank stamp on it. ►For opening current account Rs. Some details are as follows:          Learned About the Requisition request of Check for new Account Learned about the issuance of new cheaque book. Debit card and Alico products. Filled the ATM request forms Learned how to issue the ATM cards Learned how to issue the ATM Pins Got basic information about Bank Assurance offered by Alico Learned about various offers of Alico Learned about the installments of assurance account Learned about the Terms and conditions of Alico.  After all these requirements.   Along with this form the copy of CNIC and a Verisys form and form known as (KYC) At the last a separate file is maintained for each of the customer for bank‟s record.100 to 1000 In both cases there is some amount which is fixed for opening current and saving account that is. the authorized officer attaches two signature specimen forms called SSC and one requisition form. 000 is required.10.

a letter of thanks is sent to the customers from the Circle Office after 2 or 3 days. But while customer is coming to the bank for receiving his/her check book this letter of thanks should be with him.  After 5 days cheaque book is given to customer after taking his signature in a separate register But in case if . So whenever a new check book would be needed the customer will put his/her signature on it and submit it to the authorized officer. Then the authorized person saves that slip in his record and fills another slip and fwd to Karachi via NIFT and customer is asked to come after 5 days. (B) Process of getting an ATM/DEBIT card The following steps are taken while issuing an ATM/DEBIT card. (a) Customer is new than after taking letter of thanks check books would be hand over to him/her. the following steps are needed:   A copy of CNIC A minimum Rs.(A) Process of getting the new Check Book. These are the following steps that are used for gaining check book:  The customer brings the letter of thanks and give to the authorized person. 30 . (b) But in other case if customer is not new he is a regular customer than at the end of each check book a requisition slip is attached. After filling up all the required documents for ATM card these documents are given to the authorized person who pasted a verification stamp on these documents and signing on it. The person fills the check book requisition slip for the customer and takes his signatures. After receiving that letter a customer can obtain his/her check book from the bank. When an ATM or Debit Cards issue.550 should be in respective account. After opening an account.

(c) Process of getting an ATM/DEBIT card Pin When the customer is given ATM card he goes to another Person to get his/her secrete Pin code.  Learned basic things about Cash department  Learned how to write Cash book  Signature verification 31 . and I spent few time in cash.And at the end. after 5 days the person is called again to hand over ATM card after taking his Signatures. The purpose is to provide the insurance side by side with savings. Although internees were not allowed in cash department because of sensitivity of matter. Cash handling etc. Then Customer goes to CSO and activates his CARD. The person take the signatures and give it to customer. Some of them are given below:  Income Max  Current Life Account  Capital Sure  Flexi Life  Har Pal Mehfooz  Life Partner  Dream Weddindg  Retire Easy  Edu Care Third week: The main objective is to know about the different functions of cash department. Alico Products: Alico offers various products for persons belonging to different age groups.. they provide me maximum possible knowledge.

Some important things that must keep in mind while filling up a check: a.  Verify the signatures of customer  Then gives the cash to the customer. The check should be enchased on that date which has to be written on the check 32 .  The authorized person after receiving Checks or bonds puts bank stamp on it  Checks the balance of the customer account. ›Name of the customer ›Exact amount in words and figures ›Code of currency ›Date of the check ›and signature of the Customer  After providing all the above mandatory places check is hand over to the relevant person. bonds etc give it to the authorized office. Cash Deposit slips Processing  Intercity Cheaque Processing  Arranged an event to give Customers awareness about Alico  Made a list of Valued customers  Made invitation letters for customers  Arranged necessary items for the Event  Filled Cash deposit slips  Filled some cheaques for aged persons  Filled cash deposit slips for online Deposit Process:  In Cash department customer after filling up the checks. The following information are required for further preceding of the check.

b. No cutting/overwriting is allowed in amount b. PO (Pay Order). The cashier enters the amount of check and 33 . The remittance officer also has to pass the entry that is entered by the cashier. Signature should be matched with the ID card signature d. No cutting/overwriting is allowed c. Amount should be same in words and figures c. DD (Demand Draft) Learned bank charges for PO. I also learned that how original Checks are identified. Some important things that must keep in mind while filling deposit slips: a. For online deposit a copy of CNIC of depositor is necessary Fourth Week: Fourth week I spent in Remittance Department and learned following things:           Learned basic operations of remittance department (PO. and as well as bonds. credit cards slips.g. On the back of the check there should be the sign of the issuer I learned that how to accomplish different tasks like deposit. TT & MT (Mail Transfer) Learned how to make entries and vouchers for Outgoing TT(Telegraphic Transfer) Made few Outgoing TT Learned & Made Inter-Branch Credit Advices against the checks received from outer city branches Learned how to make entries and vouchers for Outgoing TT(Telegraphic Transfer) With these activities. also observed the other activities. DD) Learned how to make entries and vouchers of incoming TT Made vouchers and entries for Incoming TT Learned the difference between DD and PO Observed other operations e. DD.

PNSC Branch is written in the responding branch. Normally two types of remittances come. One is credited to the accounts in our branch and the other is to be given in cash to the holder of the XPIN. And when the amount increases to Rs. When the amount of check exceeds a specific amount of Rs. 500000 the operation manager has to pass that entry. Then the remittance officer enters the password and passes the entry. Fifth Week: Learned how to Issue the CDR      Made vouchers and entries for CDR Made few CDR Learned how to manage CDR register Learned payment against CDR Balanced the CDR Head of GL for 31 July. Learned basic operations of remittance department. One advice goes to CSO for record. Then the relevant advices are made. In the advices.the check number. The amount is written in the relevant fields in figures and in words. It is actually based on the amount of the transaction. we write the name. DD numbers and the amount in front of every beneficiary. account numbers. Current date is written in the date field. To open the customers account and to keep information of each of the customer separately so that when information is needed can be obtained easily. 2009. The code for the originating branch is 0992 and for the responding branch code is 0069. One goes for cashier and one goes to the clearing department for entry in the computer. Three copies are prepared for each advice. One advice is normally made for all the advices that are to be credited to the accounts. First of all the remittances are received in the post. Remittance department deals with the foreign remittances. originating branch is Dharampura Branch. In the favoring. 34 . 200000 the remittance officer has to pass that. If the remittance officer is present on the seat then the operation manager has the authority to pass the entry.

PO is made within a city.220 is charged.50 is charged on cash slip and in case of check slip Rs. beneficiary details. Transfer stamp b. and cash deposit receipt (CDR).  If a regular customer wants to make DD or PO then in this case he/she has to fill up a form. pay order (PO). And how much charges have to be paid for making all these. currency of instrument.220 is charged. To know about these entire why all these documents are used. Rs. The main objective of this is to know about the demand draft (DD). applicant signature etc.220 is charged on check slip. DD is made through Check and Cash. these are such requirements that must be fill up. a. Like. 2009.  And at the last the authorized officer puts his/her signature on DD/PO form and three stamps are pasted on it. This form is known as “FUNDS TRANSFER FROM”. particular of applicant. Rs. on making this DD/PO Rs.50 is charged on cash and Rs. 2009 to 8th July. Signature verified stamp 35 .  In the form all the mandatory places are compulsory to fulfill. (a) Procedure of making Demand Draft (DD) and Pay Order (PO): Out of the city DD is used.        Learned how to issue a PO Made Debit vouchers against the PO & DD charges Made Credit vouchers (contra) against the PO & DD charges Learned how to make DD and PO Made outgoing Clearing Made local clearing Made intercity clearing Made return clearing The Fifth week is from 3rd July.50 is charged for making this in case of account holder but for non account holder Rs. type of remittance. It is also in the form of Cash and Check.

One advice is made for him.c. and signature verified stamp is pasted on it. all the transactions are recorded in a register for keeping banks records. One advice goes to CSO for record. And at the final stage. In this week I was a bit for remittances that are to be paid in cash. Crossing check stamp ( in case if half payment is made through cash form. Three copies are prepared for each advice. amount and cheaque number then separated bills from slips then posted various stemps on bills and slips as follows 36 . And how many charges are applied on it. He gives it to us. It is also in from of Cash AND Check. one advice is made for each of the remittance. With XPIN he gives the photocopy of the CNIC. signature specimen. CDR has no charges. In this form some requirements are compulsory which has to be full up these are check no. CDR‟s and PO‟s are made. then a check is fill up for this and attached with the DD/PO form)  And at the last the operational manager puts supervision on this and all the records are transferred into computer for bank records. I learned that how DD‟s. (b) Procedure of making of Cash Deposit Receipt (CDR): CDR is used locally. for outgoing clearing a list I made an excel sheet of all bills having depositing account number. the person name to whom it is going to be transferred. This form is known as “CREDIT DEPOSIT FORM”. Procedure for outgoing clearing I also made out going clearing. check transfer stamp. One goes for cashier and one goes to the clearing department for entry in the computer.   A request form is filled by the hands of the customer for making CDR. date etc.    After all these the verification stamp. The person comes in the bank with the XPIN.

Process: 37 .PUBIC DEALING. acct number and city name is entered in a separate register and deposit slip is attached in a specific file. Learned about the activation of dormant account Learned about TDR Learned how to make TDR Learned basic types of financing Studied a Running Finance Case Learned about instant finance Learned about the different documents required for Credit Investigation Studied Financial statements of a client company Learned about the documents required for Running Finance Learned the Concepts of Demand and Cash Finance To become familiar that how a customer account change into dormant account. In the specified envelope is used for every city given by NIFT with printed name of city. TDR)            Learned about dormant account. Clearing stamp of next date on front of bill  Accounts credited stamp on back of bill  Clearing stamp on front of deposit slip Procedure for intercity Clearing I also made intercity clearing. then amount. For Intercity Clearing a stamp of intercity posted on face of bill. And a stamp is posted on back of bill. Sixth week: (FINANCE. A separate slip is filled for every city given by NIFT.

The customer has to given a written request for activation of the account.  But in case if a customer draws a check in dormant account then it is returned back from the clearing department with a stamp of “dormant account”. after that a customer cannot make any DR or Cr transaction in his/her account. An account is closed when a customer does not make any transaction in his/her account till 90 days.  A letter is send to customer to inform him/her. Procedure for activation of a dormant account: a. After working in this area I learned that what things are compulsory to running an account and how we can avoid the dormant account.  After that customer cannot make any type of transaction in his/her account. 38 . And a Debit transaction on the same day is made. c. and in case if bank does not receive any response from customer‟s side then the account of customer becomes “DORMANT”. TDR (Term deposit receipt): Procedure: TDR may be issued for 2 months or 3 months but calculation is made on daily basis. ›And prepare TDR is given to the customer. Copy of CNIC. b. ›A term deposit receipt has to be filled for TDR on which the following mandatory places have to be fulfilled:      Received form Amount Deposit period Amount in figures And account number ›After the whole information is recorded into the computer system.

Made Annual Expanses increase Analysis Filled „Credit Proposal‟ cum Sanction Advice MCB Instant Financing. So manager gave me data and asked to analyze the difference of expenses of July 2008 and July 2009 because there was a major increase in Expanse account. I also separated 6 accounts which were showing major decrease. (a)ONLINE TRANSACTIONS Procedure: 39 . So I analyze different sub account and separate 6 accounts showing major increase. Liabilities.Seventh Week:     Made GL (general Ledger) analysis Analyze different heads of Assets. BBFS (Borrower Basic Fact Sheet) and Application for Finance for renewal of 3 cases of CF. Online transactions and Lockers Objective: The objective is to learn about the money grams how they make? And to know about the lockers and as well as to get knowledge that how online transactions are done. Studied Credit Scoring and Risk Rating for the clients Studied classification of customers in the categories  Substandard  Doubtful  Loss In the last week of my Internship Manager offered me to learn something of managerial level which I accepted happily.    Studied credit proposals. and Expenses. Income.

And a separate register is maintained for this purpose. An online check is received form customer along with the print out of a voucher is attached with the check. ●only relevant customer is allowed to operate.In on line transaction the process is so simple in this the client receives a request form from the customer for online transactions. Learning: After working in this area I learned what money gram is and why it is used for? And as well as I also learned about the online transactions and the procedure used for lockers. And three stamps are pasted on it. (b) LOCKERS Procedure: ●whenever a new customer wants to operate locker he/she signs on a SSC card.  Clearing Stamp  Intercity stamp  Transfer Stamp  And then in the last entry of an online check is recorded in the register for maintaining bank records.  Bank and branch name. ●and after that whenever customer wants to operate the locker than the authorized person takes the customer signature on the maintained register.  Total deposit and date. These are:  Sender name.  Check no. 40 . In such case customer presence is not compulsory. these are.  Customer account number. And these signatures are matched with the SSC card signatures. In this the following requirements are necessary to keep in mind.  Beneficiary branch no.

The bank is doing all sorts of new things in order to accumulate a set of distinctive competencies that could later on be transformed into a competitive advantage of considerable value. Skilled & cooperative employees Faster banking services Reasonable service charges Personnel 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. 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. can exploit some opportunities and is hampered by few threats. needs to improve upon some weaknesses. It has become an ideal bank for the importers and exporters 41 . This SWOT analysis of MCB Limited takes into consideration the external as well as the internal environmental structure of the bank.MCB Limited is one of the most thriving commercial banks at present in Pakistan. striving. The organization is in the process of building itself into a force to consider. In this process of developing. the bank enjoys some strengths. facing minor set backs and striving with even more zeal. catering the financial needs of its clients  Foreign Trade is the focus of bank.

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 Media Behavior 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 Emphasis on information technology Branch network To be in the list of top banks Marketing Unexplored market of multinational corporations Growth in textile sector Adopt E-banking 42 . Strong Security System Weaknesses:                 The chief weaknesses are Small Size Less Efficient Computer And I. T.

Private sector banks  Government policies  Increased competition in banking market  Unstable economic situation  Network expansion by foreign banks  If Pakistani banks (especially state owned banks). Ratios tell the whole story of changes in the financial condition of business. 43 .Following are the main types of ratios that I am going to calculate in this report to compare and highlight the financial performance of MCB in 2009 with 2008. over. Ratios also help in Investment decisions in the investors and lending decisions in the case of bankersetc. Ratio analysis also makes possible comparison of the performance of different divisions of the firm.Thearts: The predominant threats MCB is facing at the moment are discussed in the following lines. They also reveal strong firms and weak firms. It provides data fro inter firm comparison. It simplifies the comprehension of financial statements. The ratios are helpful in decision about their efficiency of otherwise in the past and likely performance in future. backed by huge network improve the service they give and their employee skill set  Terrorist image of the country  Inconsistency in government policies Ratio Analysis of the MCB: “An index that relates two accounting numbers and is obtained by dividing one number by other”Ratio Analysis is an important and age-old technique of financial analysis.valued and undervalued firms.

07% 2008 63.80% 71.37% 68.91% 69.91 87.49% 31.84 27.35% 3. 33.28% 44 .55 85.FINANCIAL RATIOS Profit before tax ratio (PBT/ total income) Gross Spread (NIM/Int Income) Income/ expense ratio Return on average equity (ROE) Return on average assets (ROA) Return on Capital Employed (ROCE) Earnings per share (EPS before tax) Earnings per share (EPS after tax) Advances/ deposits ratio (Gross) Advances/ deposits ratio (Net) Breakup value per share Breakup value per share (including surplus) Earning assets to total assets ratio Capital Adequacy Ratio 2009 55.64% 79.23% 19.25% 27.37 100.13% 4.70% 16. Rs.50 22.10 31.49% 3.31% Times 3.35% Rs.89% Rs.39% 75. 88.60 84.42 73.64 22.25 82. Rs.60% 31.

like most of the commercial banks working in Pakistan. Some of the employees are overburdened while some sections are overstaffed. MCB Limited needs to improve its website. till date. One of the most pressing needs of the time is to advertise MCB Limited in the electronic media. MCB Limited should employ more women. The soft wares currently in use should be made error free. in the following lines I shall put forth some of the measures MCB Limited should necessarily take in the near future. The number of women hired by MCB Limited is very less. a high percentage of Bank MCB credit client hail from two or three industrial sectors. MCB Limited should continue to expand its business.Recommendations In the light of above given SWOT analysis. MCB Limited needs to use more marketing channels to make the public aware of its products and services. MCB Limited should immediately improve its Information Technology System. I think it is high time that BAL does this. which might prove to be invaluable for MCB Limited. There are a disproportionate number of seasoned bankers in the top management who have the responsibility of making strategic decisions. 45 . MCB Limited should evolve a very serious management policy to attract multinational corporations as its clients. if actualized. The following recommendations include short term as well as long-term issues. Their performance will improve as a result of distribution of work and responsibility. MCB should make makes work teams in Credits like other banks such as ABN AMRO and City Bank. but it would also contribute a lot towards MCB Limited‟s image building. This action. It will have a positive impact on the morale of employees. In the presence of intense competition MCB Limited has to realize the importance of marketing. employed advertisement in electronic media as a full fledge marketing tool. And it will also enable the bank to hire talented women in the Credits as well. MCB Limited has not. Management should distribute work equally among different employees. by increasing its deposit portfolio through aggressive market penetration strategies. They should also include a reasonable proportion of young bankers whose mindsets teem with new creative ideas. Moreover it should also recruit women for working in “Credits” Presently. More information relating to financial performance of the bank should be available on the website. would not only prove to be highly profit generating.

development and integrity. which makes it sure. 46 . does a world of good for the students. The profits of MCB have grown considerably during the last few years and this trend is expected to continue into the future.I must underscore the fact that writing this internship report was an evenly memorable experience as actually „doing‟ the internship. we conclude that MCB has a very prosperous present and future.Side by side of it I think that if bank would be able to cover and control on the above mentioned recommendations then it would be in such a situation that will really lead it towards the road of prosperity. And with the above mentioned sentences I think there is also a fault of the customers and in order to make the proper working of the bank the customers should also cooperate with the bank which will be really a good. And then bank will be really in such a situation and position to compete its competitors in the country as well as on international level. which assures the shareholders of wealth maximization. as it enables them to have a glance into the organization. I honestly tried my level best to come up with an original piece of writing that could serve as a vivid proof of the fact that students at UOG are certainly no mug at what they do. At this point it certainly is significant to write a word of gratitude for the institute‟s administration. Therefore.I hope that this report enables me to keep a memory of those days at the Bank when after a few years I read this report.Conclusion: Practical Training Program. spanning across twelve weeks. It is evident from this report and the financial statements of MCB that it is making progress by leaps and bounds. which they plan to join in the near future as managers. I truly hope that this report also certifies the fact that all of my worthy teachers performed their duties of academic guidance and moral mentoring with utmost efficiency and effectiveness. ambitious and diligent condition for the bank. that all the students get an exposure to practical life in relatively well-reputed organizations.

com. Yasir) CSO (Miss sane) Remittance (Miss Amana)   Financial Statement: Google. Sajid) BOM (Mr.References     Introduction: http://mcb.pk/mcb/corporate_information.as Internship Activities: PBO (Mr.asp Corporate information: http://mcb. Jones 47 .com.pk/mcb/about_mcb. P.com.pk/mcb/mission_vision.pk Ratios: Analysis of Financial Statement by Charles..asp Vision / Mission: http://mcb.com.

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