MCB Internship Report

University of the Punjab, Gujranwala Campus 1
Dedication

I dedicate my work to my family and my teachers. Without their help and
encouragement it would never have been possible for me to accomplish this task
within the specified time limit.


PREFACE

Doing internship is a pre-requisite of BBA (Honors) and for that I got the
opportunity to join the MCB Qila Didar Singh branch for a period of 6 weeks. It
was a great experience as I got practical knowledge of how work is done in real
life and how the theories we study in BBA are applied in practical field. It is
always fun to learn new and creative things and it was full of learning and time
passed very quickly.
The Material of this report has the glimpse of MCBs operations and departments I
searched for some basic data from internet and some is asked from the colleagues
whom I thank from the bottom of my heart.
In the end I would like to thank all the people who gave me opportunity to learn
practically and were involved helping me in the accomplishment of this task.

Zeshan Saeed


Acknowledgement

Every praise is due to ALLAH alone and his prophet (peace be upon him) who is
forever a torch of guidance and knowledge for humanity as a whole. I thank Allah,
who is the holder of my breaths, without his order nothing is possible.
I am highly thankful to my respectable teachers and friends and family members
who were my supporters throughout my educational career, further I thank all the
employees of the branch MCB bank Limited, where I have done my internship.
I have set light, an ever-burning flame of gratitude and deep sense of obligation to
my honorable teachers of Department of Business Management for their valuable
guidance, constructive criticism and inspiring attitude during my studies. I
appreciate and thanks to all the member of the faculty. Besides, this internship
program makes me realize the value of working together as a team and as a new
experience in working environment, which challenges us every minute. Not forget,
great appreciation go to the rest of MCBs staff that helped me to write internship
report on MCB from time to time during the project. The whole program really
brought us together to appreciate the true value of friendship and respect of each
other.
Last words are lacking to express my feelings and indebtedness to my affectionate
Family and Friends for their love, appreciations, which always stand by me
mentally and spiritually during all years of my study.


Executive Summary
MCB bank limited with more than 60 years of experience as one of the leading
bank in Pakistan, was incorporated on July 9 1947. The bank has journeyed
remarkable tenure of more than half a century of competitively edged and well
positioned heights of success by deploying quality banking, heads on technological
department, professionally leading management and prudent and ethical work
methodologies MCB was nationalized along with other private banks in 1974 as
part of government of Pakistans economics reform movement and was later
privatized to nishat group lead consortium in 1991.
The bank has also been acknowledged though prestigious recognition and award
by euro money, MMT, Asia money, SAFA (SAARC), the asset and the Asian
bank.
My duration of internship at MCB was started from 2 July and ended on 10
th

august 2012.
It was an honor to learn precious skills from highly motivated and professional
individuals from different departments of the company. The six weeks time was
even not enough to know everything about such large organization but managers w
cooperated with me in such a way that it was so easy to understand what this
organization is all about.
During the internship I found many qualities, skills in myself because I was not
aware before. It gave me recognition of whole new world of professional business
life. It helped me to know about people, their attitude, level of motivation,
professional abilities, skills, values, cultural diversification etc.
During my internship at the MCB, I worked in remittances, advances, cash,
deposits, customer service department office and successfully completed all tasks
and duties were allocated to me. Therefore in the internship report on MCB is
presenting true facts of this MCB bank branch and overall of this organization.
MCB bank limited is group of companies, has a vast human resource management
system as it is a big organization having operative in several countries. MCB bank
limited has its human resource development programs to compete in the rapidly
changing business environment in order to accelerate. So it has to train and look
after the professionals in almost every field like production managers, human
resource managers, finance managers, operation managers, marketing managers,
research and development managers and the lower level employees and labor.


The employees are well trained and are compensated by MCB bank limited to a
larger extent. The bank has very good system of hiring new employees. Keep good
standards of employee selection. Selection process is structured and of high
quality. Sources of recruitment is internal as well as external, incentives are being
given to employees on good performance, good promotional system etc. The
human resource department has employment forecasting system that enables it to
fulfill the needs of human resource of such a large organization.
I explained some marketing strategies adopted in MCB. And marketing skills
training programs held in MCB.
Current financial records of MCB also are in this report.
I conducted SWOT analysis of the MCB bank limited and my findings are
explained here under.
Strengths are safe and secure investment venture, innovation and new technology
adapter employee satisfaction, well equipped and fully secured environment,
modernized banking (online + internet) and complete supervision at every level.
Weaknesses are weaker organizational culture, HR policies (appraisal,
compensation, career planning) , networking problems regarding ATM services in
rural areas.
Opportunities are information technology ( MIS), establishing more Foreign
branches, local setup should be expanded, internet banking, some more innovation
products and services should be introduced.
Threats are downsizing is potential threat for MCB employees and they are losing
their confidence towards bank performance, fierce competition, changing
environment of banking, economical political condition are a great threat, entrance
of international banks.
Then there is PEST analysis of MCB, which can be helpful for setting future
strategies for bank.
Future outlook of bank is also mentioned in this report.
Conclusion and recommendations are important part of this report.
Bibliography regarding data collection and references where from information has
been obtained is available.


List of Acronyms

MCB Muslim Commercial Bank
SBP State Bank of Pakistan
EBIT Earnings before Interest and Taxes
DD Demand Draft
TT Telephonic Transfer
MT Mail Transfer
EPS Earning Per Share
RTC Rupee Traveler Cheque
SEVP Senior Executive Vice President
AVP Assistant Vice President
SVP Senior Vice President
VP Vice President
GM General Manager
BM Branch Manager
BOM Branch Operational Manager
HO Head Office
SAARC South Asian Alliance for Regional Cooperation


Bank
There is no single definition of bank. Different experts have different opinion
about the term bank. Mostly experts said that bank words are originated from two
words Baucus or Banqui which means bench.

According to Kent:
A bank is an organization whose principle operations are concerned with the
accumulation of the temporarily idle money of the general public for the purpose
of advancing it to others for expenditure

According to Crowther
Bank is a dealer in debts---his own and of other people.

Brief Introduction of Banking Sector
Banking in its modern form and structure started in Britain when many of the
Lombardy merchants came to England in the fourteenth century and settled in the
parts of the city of London, now called Lombard Street. The early banker Jews in
Lombardy transacted their business at benches in the market place. When a banker
failed, his banco was destroyed by the people. This practice gave rise to the word
bankrupt.
Over the period of time they discovered that large sum of the money were left in
their custody for long periods; which suggested the use of cash to advance loans to
other person for a fixed period of time and considerably high rate of interest. Thus
began the issue and deposit banking of the modern times. Some of the
enterprising goldsmiths issued cheque books for the attraction of their
customers; and thus another step in the evolution of banking had taken place.


History of Banking in Pakistan
At the time of independence, there were 631 offices of scheduled banks in
Pakistan, of which 487 were located in West Pakistan alone. As a new country
without resources, it was very difficult for Pakistan to run its own banking system
immediately. Therefore, the expert committee recommended that the Reserve Bank
of India should continue to function in Pakistan until 30
th
September 1948, so that
problems of time and demand liability, coinage
Currencies, exchange etc. are settled between India and Pakistan. The non-
Muslims started transferring their funds and accounts to India. By the end of June
1948 the number of officers of scheduled banks in Pakistan declined from 631 to
225. There were 19 foreign banks with the status of small branch offices that were
engaged solely in export of crop from Pakistan, while there were only two
Pakistani institutions, Habib Bank of Pakistan and the Australasia Bank. The
customers of the bank are not satisfied with the uncertain condition of banking.
Similarly the Reserve Bank of India was not in the favor of Govt. of Pakistan. The
Govt. of Pakistan decided to establish a full-fledge central bank. Consequently the
Governor General of Pakistan Quaid-E-Azam Muhammal Ali Jinah inaugurated
the State Bank of Pakistan on July 1, 1948. Thus a landmark was made in the
history of banking when the state bank of Pakistan assumed full control of banking
and currency in Pakistan. The banking structure in Pakistan comprises of the
following types
State bank of Pakistan
Commercial banks
Saving banks
Co-operative banks
Specialized credit institutions
Up to December 31, 1973, there were 14 Pakistan commercial banks that
functioned all over the country and in some foreign countries through a network of
branches. All these commercial banks were nationalized in January 1, 1974, and
were recognized and merged into the following five banks:
National bank of Pakistan
Muslim commercial bank limited
Habib bank limited
United bank limited
Allied bank of Pakistan


The state bank of Pakistan is the Central bank of the country and was established
on July 1, 1948.The separation of East Pakistan and its repercussion in the form of
economic depression has caused a lot of difficulties to the banking system in
Pakistan. The network of bank branches now covers a very large segment of
national economy. The numbers of branches have increased appreciably and there
is now on branch of bank for every 3000 heads of population approximately. There
is done reasonable growth in deposits from the establishment of Pakistan. Besides
this growth, specialized credit and financial institutions have also developed over
the years.
The Government of Pakistan in the late 90s introducing the need for the
privatization of state owned banks and companies. The private sector has accepted
the challenge and most of the banks are privatized today. The State Bank of
Pakistan issues the shares of these periodically. Bank employees and other
common peoples can also purchase these shares and earn profit.


S


Introduction of the Organization
Muslim Commercial Bank is one of the leading banks of Pakistan with a deposit
base of about Rs. 280 billion and total assets of around Rs.300 billion. In 1974,
MCB was nationalized along with all other private sector banks. This led to
deterioration in the quality of the Banks loan portfolio and service quality.

MCB was privatized in 1991. During the last twenty one years, the Bank has
concentrated on growth through improving service quality, investment in
technology and people, utilizing its extensive branch network, developing a large
and stable deposit base and managing its non-performing loans via improved risk
management processes.
MCB besides being money financial organization have rendered invaluable
services in the economics and social developments of our country. MCB today,
represents a bank that has grown with time, experience and Pakistan. A major
financial institution, in scope and size, it symbolizes a fully-grown tree. Evergreen,
Strong, and firmly rooted.
To accede to international capital markets, the bank launched Global Depositary
Reciepts (GDRs) in 2006. It was the first Pakistani Bank that got its GDRs listed
on the London Stock Exchange. In 2008, the Bank entered into a strategic
partnership with Maybank, Malaysia, which owns 20% stake in it through Mayban
International Trust (Labuan) Berhad.
Since 2008, has international indirect regional presence in Dubai (UAE), Bahrain,
Azerbaijan, Hong Kong and Sri Lanka and serving through a domestic network of
over 1,130 branches and 600 ATMs across Pakistan with a customer base of 4.5
million approximately.


Subsidiaries
MCB Financial Service Limited
Holding: 99.999%
Profile: Float, administer and manage modarba funds, modarbas and also acts as
trustees of various mutual funds.
MNET Services (Private) Limited

Holding: 99.95%
Profile: One of the largest service providers for Electronic Transactions to
various financial institutions/banks including included related service in
Information Technology, software and data processing.
MCB Trade Services Limited
Holding: 100%
Profile: Provides Agency services.
Arif Habib Investments Limited
Holding: 51.33%
Profile: Asset management, investment advisory, portfolio management, equity
research and underwriting.
MCB Leasing Closed Joint Stock Company, Azerbaijan
Holding: 95.00%
Profile: It leases various types of industrial equipment, public transports, real
estate and retail auto leases.
With reference to significant holding, the following entities are associates of the
Bank;
First Women Bank Limited
Holding: 26.78%
Adamjee Insurance Company Limited


Holding: 29.13%
Euronet Pakistan (Private) Limited
Holding: 30%


History of the Organization
MCB was founded by ISFHANI and ADAMJEE families in Calcutta on July 9,
1947. MCB is not an overnight success story rather good track of services are
responsible for the leaps and bounds progress. After the partition of the Indo-Pak
Subcontinent, the bank moved to Dhaka from where it commenced business in
August 1948. In 1956, the Bank transferred its registered office to Karachi, where
the Head Office is presently located. Thus, the bank inherits a 64 years legacy of
trust in its customers and the citizens of Pakistan.
MCB believes in organic and opportunistic growth, branding value through
effective communication, business diversity through commendable and innovative
product and service
Portfolio, creating equal serving of technological and human capital to rural and
urban demographic platforms and rationalization of ethical behavior and culture to
enhance customer base and enable employee retention.

MCB Bank Limited has a solid foundation of over 60 years in Pakistan, with a
network of over 900 branches, over 750 of which are Automated Branches, over
222 MCB ATMs in 41 cities nationwide and a network of over 12 banks on the
MNET ATM Switch, which as a combination is considered to be the core
competence of MCB.
MCB has become the only bank to receive the Euro money award for the fourth
time in the last five years. MCB won the "Best Bank in Pakistan" in 2005, 2004,
2003, 2001, and in 2000 the "Best Domestic Bank in Pakistan" awards. In addition,
MCB also has the distinction of winning the Asia Money 2005 & 2004 awards for
being "The Best Domestic Commercial Bank in Pakistan".
Twenty one years after privatization, MCB is now in a consolidation stage
designed to lock in the gains made in recent years and prepare the groundwork for
future growth. The bank has restructured its asset portfolio and rationalized the
cost structure in order to remain a low cost producer.
MCB is also catering to the growing middle class by providing new asset and
liability products. MCB looks with confidence at year 2005 and beyond, making
strides towards fulfillment of its 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".


Awards
2009 Asiamoney: Best Domestic Bank in Pakistan
2009 The Asset: Best Domestic Bank in Pakistan
2008 Euromoney: Best Bank in Asia
2008 Euromoney: Best Bank in Pakistan


Calendar of Major Events

Incorporation..1947
Nationalization...1974
Investment in first women bank... 1989
Privatization...1991
Incorporation of MCB financial services limited..1992
Investment in Adamjee insurance company limited.2004
Incorporation of asset management company limited...2005
Change of name from Muslim Commercial Bank limited2005
Strategic acquisition by Maybank.2008


Competitors
National Bank of Pakistan
Bank al Falah
United Bank
Allied Bank of Pakistan
Habib Bank LTD
Faysal Bank
Indus Bank
Soneri Bank
Bank of Punjab
Askari Bank etc.


MCB Today
Since privatization, MCBs growth has been phenomenal. Today, MCB in one of
the largest foreign banks in Sri Lanka, the first bank in Pakistan to launch Global
Depository Receipts (GDRs) in 2006, has strategic foreign partnership with
Maybank of Malaysia which holds20% shares in MCB through its wholly owned
subsidiary Mayban International Trust (Labuan) Berhad. Since 2008, MCB has
international indirect regional presence in Dubai (UAE), Bahrain, Azerbaijan,
Hong Kong and Sri Lanka and serving through a domestic network of over 1,130
branches and 600 ATMs across Pakistan with a customer base of 4.5 million
approximately.
MCB is reputed as one of the soundest financial institution and as one of the
leading banks in Pakistan with a deposit base of PKR. 462 billion approximately
and total assets of PKR 605 billion approximately. The bank is versed as one of the
oldest and most responsible banks in Pakistan and has played pivotal role in
representing the country on global platforms while being one of the few
institutions that are recognized and traded in the international market. The bank has
also been acknowledged though prestigious recognition and awards by Euro
money, MMT, Asia Money, SAFA (SAARC), The Asset and The Asian Banker.
Prominent Features of MCB
SBP allowed exporters obtain foreign currency loans against firm contracts L/Cs
and MCB made arrangements for clients to use the facility at EPZ branch, Karachi
and off-Shore Banking Unit, Bahrain for the purpose. It also offered services to
clients for procuring foreign currency loans from abroad. The other significant
development is the launching of the MCB Imdad-e-Bahami Scheme for Housing
Improvement in addition to commercial lending; MCB has accepted the
responsibility to offer social lending. The scheme, launched with the co-operation
of the Swiss institution aims at providing easy credit to low income group is urban
areas to improve their living condition.


Honorable awards won by MCB Bank Limited during 2011

CFA Association of Pakistan award for Best Bank of the Year and The
Most Stable Bank of the Year
Best Bank in Pakistan by Euro money
Best corporate report award under the Bank category for the second
consecutive year by ICAP & ICMAP
Joint 2nd runner-up for best presented accounts 2010 in the banking sector
by South Asian Federation of Accountants

2011 was a year of improving quality

Compliance and risk mitigation remained our top agenda
Improvements in information technology and branch infrastructure
remained our priority
Further centralization and check and balances round the year to improve
efficiency
Branch and ATM network enhanced to outreach our customers
Growth in Islamic Banking was achieved through launch of 11 more
products
From MCB to MCB-Bank for Life as an initiative for corporate branding
and image building
Enrichment of corporate and social responsibilities


Compliance Status of MCB
Name & Address MCB Bank Limited
MCB 15 Main Gulberg, Lahore

Legal Form
Public Limited Company. Listed on Karachi, Lahore & Islamabad
Stock Exchanges in Pakistan.

Name of External
Auditors
M/s A.F. Ferguson & Company.(Chartered Accountants).

Name of Regulatory
Body
State Bank of Pakistan (Central Bank).

Main Banking
Commercial, Consumer, Corporate, Correspondent and Islamic
Banking.
Categories of shareholders - as of December 31, 2012
Pattern of Share
Holdings
Description Shareholding Percentage

Directors, CEO and their spouse
and minor children
98927007 10.7529

Associated Companies,
Undertakings & Related Parties
197,310,846 21.2882

NIT & ICP 486,497 0.0529

Banks, DFI & NBFI 3,175,647 0.3452


Insurance Companies 1,153,092 6.6494

Modarabas & Mutual Funds 1,153,092 1.0692

Public Sector COS. & CORP. 27,079,155 2.9436

General Public (Local) 135,480,447 15.1185

General Public (Foreign) 2,541,784 0.382

Foreign Companies 333,904,991 36.2484

Others 59,043,576 6.4187

Company Total 919,860,123 100.00

Chairman
Mian Mohammad Mansha
Mr. M.U.A. Usmani President

President & CEO

Banking License
No.
BCD (1) 17-66 dated 8th December 1966.

Company
Registration No.
0000115


National Tax No. 0700267-0

Compliance Status
Compliant with KYC and AML regulations prescribed by
State Bank of Pakistan.

Compliance
Document required
from
Correspondent
Banks

USA PATRIOT ACT Recertification
USA PATRIOT ACT Certification
MCB AML KYC Questionnaire

Compliance
Documents for
Correspondent
Banks

Wolfsburg AML_Questionnaire
CCD KYC AML PROCEDURES HANDBOOK
AML KYC Questionnaire Filled in by MCB for our
correspondents



Highlights

Assets of the Bank increased by 15% to Rs. 653 billion with Rs. 103 billion
increase in Investments and investment to deposit ratio improved from
49.39 % in 2010 to 64.47% in 2011
Deposits increased to Rs. 491 billion with 16% increase in saving, 11% in
current and 14% in fixed deposits. CASA maintained at 81% with Rs. 399
billion CASA base.
Gross advances came down to Rs. 248 billion as compared to Rs. 274
billion in 2010 and advances to deposit ratio (ADR) down from 63.55% in
2010 to 50.52% in 2011 mainly due to conversion of circular debt and
commodity financing into investments.
Shareholders Equity increased to Rs. 79 billion.
Profit after tax increased by 15% to Rs. 19.4 billion while profit before tax
increased by 20% to Rs. 31.5 billion.
Markup income increased by 24% to Rs. 68.1 billion bringing net markup
income to Rs. 44.5 billion with a net increase of 21%.
Rs. 8.1 billion recorded for non-markup income went up by Rs. 1.8 billion
owing to 19% increase in fee and commission, 84% increase in dividend
income and 79% increase in capital gains.
Controlled growth in administrative expenses in 2011 with a gross increase
of 15% (excluding pension fund reversal).
Yield on earning assets and cost of deposits increased by 126 bps and 39
bps respectively over 2010.
Income from dealing in foreign currencies increased by 46% due to higher
transaction volumes and opportunistic leveraging of higher market
volatility.
Growth in NPLs by 8.64% in 2011 (2010: 5.62%, 2009: 27.2%).
Coverage ratio improved from 77% in 2010 to 82% in 2011.
Capital adequacy ratio down from 22.01% in 2010 to 21.79% in 2011 due
to increase in risk weighted assets by Rs. 46 billion.
Return on assets improved from 3.13% in 2010 to 3.18% in 2011.
Earnings per share increased to Rs.23.23 in 2011 as compared to Rs. 20.18
in 2010.



Vision

To be the leading financial services provider, partnering with our customers for a
more prosperous and secure future.


Mission

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.


Strategic Objectives
Delivering remarkable returns to stakeholders, sustainable performance,
exceeding market and shareholder expectations.
Providing value added services through operational expansion, geography
and upgraded system.
Building a corporate culture of equality, trust and team spirit as we remain
dedicated to be a socially responsible organization.


Core Values

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.
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.
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.
Respect
We respect our customers values, beliefs, culture and history. We value the
equality of gender and diversity of experience and education that our employees
bring with them. We create an environment where each individual is enabled to
succeed.


Products and Services
MCB Online Banking
MCB has a fast growing network of over 1,100
online branches, 190 MCB ATMs in 34 cities
nationwide and a network of 16 banks on the
MNET ATM switch, providing customers real time
online transaction facilities.
MCB MNET
MCBs revolutionary MNET switch enables
customers to access their MCB account from any
member bank ATM machine.
MCB Cash Management
Cash Management provides a wide range of value added services to large
corporations through its vast network of online branches. Our structured and
customized products enable our customers to realize their sales proceeds swiftly
from all over the country, supported by real-time MIS.
MCB Channel Financing
MCB Channel Financing provides working capital facilities to dealers and vendors
of selected companies under a structured product program. This product enables
our customer's dealers to leverage themselves and increase their business capacity
with their respective business partners.
MCB Local Rupee Drawing Arrangement
Transaction Banking Department at MCB, provides Local Rupee Drawing
Arrangement, a product for small banks and financial institutions to use our vast
branch network platform to make payments in areas where their own branch
network does not exist, thus extending their reach countrywide.


MCB Home Remittance
MCB Home Remittance provides a seamless inflow of
foreign remittances credited in the beneficiarys account
within minutes. Cash payments can also be made at our
designated branches on behalf of Xpress money, Samba
(Speed cash Now) and Money gram, along with cash
payments from other correspondents all over the world.
MCB Corporate Financing
MCB Corporate Financing provides access to diversified financing options,
including working capital loans, term loans, trade finance services and investment
banking.
MCB Project & Structured Finance
Involves financing complex projects, usually in an SPV structure, where the loan is
tightly structured around the cash flows, risks are allocated amongst various
stakeholders, and there is limited or no recourse to the sponsors.
MCB Syndicated Loans and Debt Capital Markets
It involves arrangement, underwriting and placement services for significant
financing requirements by large corporate and institutional clients to other
financial institutions or through the debt capital markets.
MCB Quasi Equity/Hybrid Instruments
It structures and places a category of debt that has some characteristics of equity
such as being unsecured, subordinated or with a potential equity upside.
MCB Equity Capital Raising
Equity Services relate to raising capital for our 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 Advisory Services
Financial and Capital Raising Advisory provides our clients with financial
advisory services, commercial structuring support and access to capital resources
to help companies successfully finance their business/project.


MCB Islamic Banking
With the help of Shariah specialists, lawyers and
professional commercial bankers, MCB Islamic Banking
provides Riba Free and Shariah Compliant solutions to
various customer segments in a growing number of cities.
MCB Agaric Products
MCB has been providing finance to the agriculture sector since
1973. With the help of our vast branch network, specialized
staff posted in the branches, multiple and diversified product
range, we cater to the financing requirements of the farming
community spread throughout the country and facilitate in achieving increased
productivity.
MCB Privilege
A first from a local bank, MCB Privilege through its
dedicated, world class Privilege Centers offers a
higher level of personalized services, more rewarding
in-branch experiences and a wide array of deposit and
investment products that are tailored to meet the
financial expectations of our affluent clientele. As members of MCB Privilege,
customers experience advantages that put them ahead of others. MCBs dedicated
Privilege Centers await to welcome you in Karachi, Lahore, Islamabad and
Multan, with plans to expand to more locations.
Terms Deposit
MCB Term Deposits offer attractive short to mid-term investment options with
flexibility, convenience and security. With various tenor options available
customers can choose one that suits their needs. This is combined with different
profit payout options and the added facility of being able to avail credit facility
against their deposits.
MCB Salary Club
A payroll solution designed to make life easy; it simplifies all the monthly payroll
related banking needs of employers and opens the door to a world of special offers
for employees.


Salary Club provides the convenience of having an extensive range of financial
services available to employees at their place of work.
MCB Investment Services
Make the most of your wealth with investment opportunities that match your
unique financial aspirations. MCB Investment Services offer distribution of mutual
funds managed by the leading fund managers of Pakistan. We can suggest the
products most suited for your needs, or work with you to create a personalized
solution completely focused on your expectations of the capital markets
MCB Visa Credit Card
MCB offers a complete suite of Classic, Gold and Platinum Visa Credit Cards
focusing on providing, superior service, travel privileges & shopping pleasure. It
also offers comprehensive insurance & installment plans, reward points and SMS
alerts that give a different feel to the world of Credit
Cards. These unique features include i-revolve, which
makes variable mark-up rate available to customers
allowing them to repay at affordable rates.
MCB Car4U
MCB Car4U not only gets you a car of your own choice but is also affordable with
competitive mark-up, flexible conditions, easy processing and above all, no hidden
costs.
MCB Instant Finance
With MCB instant Finance get a loan instantly at any MCB branch against liquid
collateral at competitive pricing.
MCB Smart Card
MCB Smart Card is the key that enables access
to convenient banking services. Smart Card
allows you to manage your account, withdraw
cash, transfer funds, pay utility and mobile bills,
recharge prepaid connections, and register for
mobile and internet banking services and much more.
MCB Rupee Travelers Cheque


It is a safe and secure way to make payments nationwide. MCB Rupee Travelers
Cheque, being the market leader, is the most widely accepted way to pay cash for
travel-related purposes.
MCB ATMs
MCB has one of the nation's largest ATM networks with over 450 ATMs and still
growing. MCB ATMs give you 24-hours convenience of cash withdrawal, mini
statement, utility bill payment, funds transfer services and much more.
MCB Mobile ATM
With MCB Mobile ATM not only do we provide you with world class banking
service but we also provide convenience. Our innovative mobile ATMs ensure that
you are given service close to you.
MCB Lockers
MCB Lockers are the best protection for your
valuables. Lockers of different capacities are available
nationwide.
MCB SMS Banking
Banking at your fingertips: SMS anytime to get information regarding balance,
mini statements and credit card related information once your card is linked.
MCB Full Day Banking
Enjoy the convenience of extended banking hours from 9am to 5pm, including
Saturdays at MCB FULL Day Banking branches across the country.
MCB Bancassurance
Combining the best of banking and insurance solutions, MCB Bancassurance has
created a one-stop shop for all your financial and insurance needs. Whether you
want to save for your childs education or marriage, for the security of dignity after
retirement or gaining maximum return on savings, MCB Bancassurance has a plan
just for you.
MCB Call Center
Theres no easier way to bank than the new enhanced 24/7 MCB Call Center,
which blends innovation and convenience to provide Banking Services that go
beyond expectations. With MCB Call Centre you can maintain your VISA credit &


ATM/Debit cards, check your account balances, confirm last 5 transactions, pay
utility & mobile phone bills, top-up your mobile, pay MCB Visa Credit Card bill
from your MCB account, transfer money within your own accounts in MCB and
register complaints.
MCB Mobile
MCB Mobile is a quick easy and secure way to recharge mobile phones, transfer
money, pay bills and do much more. No need to visit a branch or an ATM
anymore, login to www.mcbmobile.com using your mobile phone and start
transacting.
MCB Virtual Banking
MCB provides the convenience of banking via internet, whether at home, office or
on travel, log on to www.mcb.com.pk and enjoy 24 hour access to all your
accounts at MCB for a great number of services such as Funds Transfer, Utility
Bill Payments, Mobile Top-ups and much more.
Khushali Bachat Account
Khushali Bachat Account, a Rupee savings account is one of MCB Banks most
popular products. Due to the low initial deposit, the account can be opened by
people from all walks of life and still avail the facility of
daily product profit calculation.
Mahana Khushali Bachat
MCB Monthly Khushali Scheme provides you with a steady income every month.
Just purchase a Monthly Khushali Certificate and you will enjoy a steady income
of your total deposit every month.
Pak Rupee Term Deposit
MCB Pak Rupee Term Deposit gives a higher rate of return. It gives you choice of
1 month, 3 months, 6 months, 1 year, 2 years, 3 years, 4 years and 5 year term
deposits.
Saving 365
The MCB Saving 365 calculates profits on a daily product basis
and gives you the facility of unlimited withdrawals.


MCBs Partners in Bill Payment
Pay your bills 24 hours a day, a day, 7 days, and a week. Make total payments of
up to Rs. 20,000 per day. Carry out up to 10 transactions per day per card. Make
either full or partial payments. Full payment is required for PTCL only. Recharge
your pre-paid account for Mobilink, Ufone and Telenor as per their fixed slabs.
Pay as a registered or non-registered user. Registration will help you avoid the time
delay in entering details each time you carry out a transaction.
Pay with MCB ATM
Pay through MCB Virtual
Pay through MCB Call Centre
Investment Banking
Our investment banking team has emerged as a leading player in Pakistans
investment banking arena. The team handles advisory, corporate finance and
capital markets related transactions, within these areas the team has developed
expertise in:
Private Placements
Debt/Equity Underwriting
Team Finance Certificates
Loan Syndication
Arrangement of Non-Fund Facilities
Mergers and Acquisitions
Privatization
Corporate Advisor


Types of Accounts

Current Account
MCB Bank offers a variety of current accounts to cater to the everyday
transactional needs of various customers. These accounts ensure ease and freedom
to bank from any of the 1,100 branches across the country. The different accounts
include: the basic account that has no minimum balance; Business Account
offering free online transactions,
Demand Drafts, Pay Orders and lots more to meet the day to day business
requirements; Current Life Account which offers the security of life insurance free
of cost; and for all the others the conventional Current Account.
Savings Account
It offers a wide array of savings products that suit short term growth &
transactional needs. Our savings accounts offer attractive profit rates as well as
flexibility to transact. Savings Xtra is targeted for customers having Rs. 5 million +
deposit, 365 Gold offers profit rate on daily balance while PLS savings has a lower
minimum balance requirement. In addition, a unique product: Smart Savings is an
account run solely via a debit cart, offering a very competitive rate to small savers.
Foreign Currency Savings Account
MCBs Foreign Currency Savings Account offers you attractive returns on your
Foreign Currency investment.
You can invest in any of the four currencies i.e. US Dollar, UK Pound Sterling,
Japanese Yen or Euro
Your foreign currency account is exempted from Zakat and withholding tax
MCB Foreign Currency Term Deposit
MCB Foreign Currency Term Deposit gives a higher rate of return. It gives the
choice of 1 month, 3 months, 6 months, 1 year, 2 years, 3 years, 4 years and 5 year
term deposits.


Basic Banking Account
In compliance with the directives of State Bank of Pakistan via BDP Circular No.
30, issued on 29th November 2005, the Basic Banking Account has been launched
with effect from 27th February 2006. This product has been introduced to facilitate
the low income group as well as the existing account holders who wish to convert
their regular savings or current account into Basic Banking Account.
The Basic Banking Account is a current account and can be opened with a
minimum initial deposit of Rs. 1000/- only. Account holders will be allowed 2
deposit transactions (each cash or through clearing) and 2 withdrawals (cash or
clearing) each month. All customer-initiated transactions over and above this limit
will be charged a transaction fee. However unlimited free charge cash withdrawals
are allowed through MCBs own ATMs.
Pak Rupee Savings Account
MCBs Pak Rupee Savings Account offers you attractive returns on your Pak
Rupee investment. In addition, you have access to a countrywide ATM network
convenient cash accessibility 24 hours a day. The facility also provides you with
unlimited daily transactions with a limit on maximum withdrawal amount through
the ATM machines.
Pak Rupee Current Account
MCBs Pak Rupee Current Account offers you the convenience of unlimited
withdrawals i.e. access to your funds whenever you want without any notice. There
is no limit on the number of transactions you make in a day plus you can avail
finance facility up to 75% of the total deposit. In addition, you have access to a
countrywide ATM network convenient cash accessibility 24 hours a day. The
facility also provides you with unlimited daily transactions with a limit on
maximum withdrawal amount through the ATM machines.


Foreign Currency Current Accounts
Saving Account
MCBs Foreign Currency Savings Account offers you attractive returns on your
foreign currency investment. Unlimited transaction facility, profit credited to your
account on a half yearly basis. You can avail a credit facility up to 75% of the total
deposits value. A foreign currency account can be opened at any of our foreign
exchange dealing branches.
MCB Rupee Maximizer Account
MCB Rupee Maximizer Account provides you an opportunity to convert your
recent changes in the economic scenario MCB launched the Rupee Maximizer
Account exclusively for its Foreign Currency Account Holders. MCB Foreign
Currency Account holders now have an opportunity to convert their Foreign
Currency Account balances into Pak Rupees and earn a profit at the rate of 12.6%
per annum. Other features include profits calculated on a daily product basis, no
restrictions on the number of the withdrawals, no minimum deposit required.
Special benefits include one free ATM card and locker facility free of cost. MCB
Rupee Maximizer Account is being advertised in leading daily newspaper as well
as local papers. Foreign Currency Account into Pak Rupee and earn profit at the
rate of 12.6% per annum.
Current Account
MCBs Foreign Currency Current Account offers you the convenience of
unlimited withdrawals i.e. access to your funds whenever you want without any
notice. There is no limit on the number of transactions you make in a day.
MCB Enhanced Saving Account
Keeping in view the small savers, looking for higher returns on their savings, MCB
introduces the Enhanced Saving Account (ESA). This account can be operated via
all the channels available at the MCB such as Cheques, Virtual Banking, Mobile
Banking, MCB Smart Card and ATMs/Point of sales all across Pakistan. MCB
ESA, governed under PLS rules, can be opened with a minimum initial deposit of
Rs. 5000 and the profit shall be calculated on an average basis maintained by the
customer during that month.
Following shall be the slabs used for profit calculation:


If average balance is greater than Rs. 20,000 standard PLS rates will apply.
If average balance less than Rs. 20,000 (or equal to 20,000) with up to 4
withdrawal transactions per month (excluding ATMs, PSO, and VB) 4.0% p.a.
If average balance is less than Rs.20,000 (or equal to 20,000) with over 4
withdrawal transactions per month (excluding ATMs, PSO, and VB) then standard
PLS rates will apply.
The rates mentioned above are expected and shall be revised at least every six
months. Average account balances can exceed Rs. 20,000 during a month.
However, in that case, they shall be paid profit as per the standard PLS rates, as
mentioned in slabs above. Profit shall be calculated on average basis and shall be
credited to the account after each calendar quarter.


Account Opening Procedure

Account opening is the first step towards relationship building between a customer
and the Bank. Of all the functions being performed in a branch, the opening of
account is highlighted as the most important. Therefore, Branch/Operations
Managers are required to involve themselves in opening of new accounts and meet
with the prospective customers in order to make reasonable efforts to determine the
true identity of the prospective customer.
Documents Required for Different Accounts
The details of Account Opening Application, Specimen Signature Cards
and other documents to be obtained for different types of accounts
Types of Accounts are as follows:
Individual Accounts
Application for Opening Account
Specimen Signature Card
Attested photocopy of Computerized National Identity Card (CNIC) or
Passport. It is a mandatory requirement to verify the CNIC of the customer
before opening the accounts, from
NADRA Online system- VERISYS
In case of a salaried person, attested copy of his/her service card or any
other acceptable evidence of service, including but not limited to a
certificate from the employer.
In case of illiterate person, a passport size photograph of the new account
holder besides taking left & right thumb impressions on the Account
Opening Form & Specimen Signature Card
In case, CNIC does not contain a photograph, Bank may allow the said
customer to open the account, subject to provision of the following
documents:
A copy of the photograph duly attested by gazette officer/Nazim.
A copy of CNIC without photograph duly attested by the same person who
has attested the photograph as per above.
A confirmation in writing to the effect that they have no other document
bearing their photograph.
Moreover, the particulars/CNIC of such persons must be confirmed from
NADRA in writing or through its Verisys system.


Categories of Accounts
Partnership Account
Application for Opening Account

Specimen Signature Card
Attested photocopies of Computerized National Identity Card (CNIC) of all
partners.
Attested copy of Partnership Deed or Letter of Partnership , in lieu of
the partnership deed, if not available) duly signed by all partners of the
firm.
Attested copy of Registration Certificate with Registrar of Firms. In case
the partnership is unregistered, this fact should be clearly mentioned on the
Account Opening Form.
Authority letter in original, in favor of the person authorized to operate on
the account of the firm.
Joint Stock Companies
Resolution of Board of Directors for opening of account specifying the
person(s) authorized to operate the company account
Memorandum and Articles of Association.
Certificate of Incorporation.
Certificate of Commencement of Business.
Attested photocopies of Computerized National Identity Card (CNIC) of all
the directors.
Clubs, Societies and Associations
Certificate of Registration issued by the Registrar of Cooperative Societies/
Registration Authority.
By-Laws/ Memorandum and Articles of Association of the Society
containing official seal of the Registration Authority.
Permission of the registration authority for opening of Account in the name
of Association as required under section 37 (d) of Co-operative Societies
Act, 1925.
List of members of the Managing Committee duly certified by the Registrar
of Societies.
Resolution duly passed by the members of Managing Committee in their
meeting regarding opening and operation of account in the name of said
Society. It must be ensured that the mandate for operation of Account given
in the Resolution is not in violation of the provision of By-Laws/
Memorandum and Articles of Association.
Attested copies of CNIC of the authorized officials/ persons.


Agents Accounts
Certified copy of Power of Attorney
Attested photocopy of Computerized National Identity Card (CNIC) of the
agent.
Trust Accounts
Attested copy of Certificate of Registration

Resolution duly passed by the Trustees regarding opening and operation of
Account in the Bank in the name of said Trust Deed.
Attested copies of CNIC of all the trustees.
Certified copies of Letter of Administration/ Instrument of Trust.
Minor Accounts
An account in the name of minor is allowed to open by his guardian, preferably
jointly in the name of guardian / Minor or Minors, payable to either or survivor
opener of the Account.
Title of Account is on the Minors Name & word Minor be added to the Title of
Account.
In the Account Opening Application, the particulars of the Guardian will be filled
out in the column of Personal Information.
Attested copy of Computerized National Identity Card (CNIC) of the
Guardian.
Attested photocopy of Form-B of Minor.
Illiterate/ Disable Persons Accounts
Attested photocopy of Computerized National Identity Cards
(CNIC).
Two Attested Photographs. (One photograph shall be pasted on the
Account Opening Form and other will be pasted on Specimen
Signature Card.
Left thumb impression (Right thumb impression in case of female)
on the account opening application & Specimen Signature Card
(SSC).


General Policies Regarding Account Opening
Initial Deposit
Initial Deposit must be in Cash. Cheques may only be accepted as part of initial
deposit in case of undoubted parties and on the personal responsibility of
Managers. In all such cases, the cheque when tendered if uncrossed should be
crossed by the customer before being lodged for clearing / collection. Cheque
Book should only be issued after the proceeds of crossed cheque are realized.
Exemption of Service Charges
Accounts maintained by Employees of Government /Semi Government
institutions for Salary, Pension & Benevolent Fund purpose including
widows/children of deceased employees eligible for family pension /
benevolent fund grant etc. in any manner whatsoever.
All Collection Accounts i.e. Non-Checking accounts from where the
balances / funds as per standing instructions, are transferred to customers
main collection account whether daily or on periodic basis.
Students
Mustahqeen of Zakat
Zakat accounts maintained for collection and disbursement of Zakat funds
MCB Employees and their spouses
All Basic Banking Accounts
Acount Opening Document Retention
Account Opening Application- SF1AA along with the relevant documents should
be kept in Fire Proof Cabinets under Dual control of Operations Manager and
Designated Authorized Officer in the branch.


Know Your Customer Policy
Know Your Customer (KYC) is the vital tool used against Money Laundering. The
Bank has a statutory obligation to know its customers and to understand the nature
of the business that is being conducted with the Bank.
Knowing your customer means:
Evidence of identity and addresses, independently confirming the evidence
at the start of a business relationship with the Bank.
Information regarding the nature of business that the customer expects to
conduct with the Bank, identify the source of income and expected pattern
of transactions (Debit/Credit) Branch Manager or Designated Authorized
Officer is responsible for filling out the Client Profile Form in order to
gather maximum information about the prospective customer.
Before entering into the relationship, Client Profile Form is required to be
filled-out along with the Account Opening Application.
Know Your Customer or Customer Due Diligence is an on-going process through
which Branch Manager or Designated Authorized Officer can ensure that only
legitimate transactions are routed through the customers account. It helps the
branches to avoid opening of fictitious accounts.
Branch Operations Managers are required to retrieve following reports on daily
basis and review their debit or credit transactions or turnover:
High Value Transactions
Over the Counter Transactions
Income/ Salary / Turnover Exception
Over the Counter Cash



MCB Department hierarchy

Departments of MCB
President
Senior executive
president
Executive vice
president
Senior vice
president
Vice president
Assistant vice
president


Account Opening Department
Account opening documentation is primary contractual relationship between the
bank and customers. There are many types of account like saving account, current
account, fix term deposit, Basic Banking account, call deposits, profit & loss
account, partnership account, joint account, business account etc.
Mostly person wants to open a savings account or fix term deposits or any other.
He has to perform some important formalities. People save their amounts in banks
to get some profits for their future and to save the money for their future use.
Banks earn profits and interests from these accounts. Minimum amount required
for the opening an account is 1000 to 5000 depending on account nature and some
legal documents are necessary for opening an account.
Any recent bill copy
CNICs copy
Fathers CNICs copy
Employee certificate
An application which explains the purpose of opening account and the source from
where cash will be deposited
Depending on the account nature they required some more documents. And the
zakat and taxes apply to accounts. After opening an account the cheque books or
ATMs issued to the customers so that they can make their transactions easily or
whenever required. ATM provides many facilities to their customers.
Credit Department
This is also a very important department in the bank that plays very vital role and it
is the main factor for running a banking business. Because banks give loans from
the peoples savings to other persons and they pay some interest on that loan
amount that becomes banks income. Simply when a local customer comes to the
bank he has the direct dealings with the credit manager. Bank offered different
type of loans depending on the customers security. Customer has to give some
security to the bank for the sake of money. Then banks reserve the papers of
customers security and give him a loan for any specific period. Credit manager


take the all necessary information from the customer and give him loan with the
approval on some simple terms and conditions.
And in circle office there is also credit analyst who keeps the records and
information of all the customers who get loan from banks in files and update their
profiles weekly or monthly. There is also an officer who deals with the people who
come from different branches with their applications of loans and with those
people who are not paying their installments on time and try to convince them to
follow the banks policy regarding loans.
Remittance Department
The remittance department deals with the transfer of money from one place to
another. This department deals with the local and international currency transfer
and also E-remittance through Western Union. MCB provides this facility to its
customers. The main function of remittance department is the transfer of funds and
the transfer may demand draft, pay orders, mail transfer etc depends on the
customers demand. There are many types of remittance
Inward remittance
Outward remittance
Inland remittance
Foreign remittance
MCB uses following instrument for transferring of money:
Demand Drafts (DD)
Pay Order (PO)
Telegraphic Transfer (TT)
Mail Transfer (MT)
Cash Department
Cash department is usually to collect and deliver cash. When a customer comes to
the bank and wants to issue or deposit amount comes to the cash counter to give or
receives amount. So it is the cash officers duty to deposit or withdraw the amount
after verification of signature or account number of the customer. Cash officer
checks the balance and then pay the amount to the customer. The banker make
journal and ledger to enter notify the customer account all the entry is done in the
system, and take print of those entry to keep record, and check all the entry are
recording right head of account. So all the cash dealings occurred in the banks are


over to cash officer and the cash officer is responsible for all the deposits or
withdrawals.
Clearing Department
Clearing department work with provision used for settlements of proceeds of
cheque among different through the medium of a clearing house. Cheques are
categorized in two kinds same day cheque and normal cheque. Cheque amount
more than 5 lacs is same day clearing cheque. And for the same day clearing few
charges are charged. All the cheques which drawn from the local branches of other
banks are collected through clearing system.
There are two types of clearing:
Inward clearing
Outward clearing
Every banker acts both as a paying as well as a collecting banker, it is however an
important function of crossed cheque. A large part of this work is carried out
through the bankers clearing house. A clearing house is a place where
representative of all banks of the city get together and settle the receipts and
payments of cheques drawn on each other. As the collecting banker runs certain
risks in receipt of their ownership the law has provided certain protections to the
banks.
The Negotiable Instrument Act, 1881, lays down hat drawer or holder of a Cheques
or draft may cross the instrument generally or specially. It further lies down that
crossed Cheques can only be paid to a banker, who collects it for a customer in
good faith and without negligence.
The procedures for check transfer and clearance are as follows:
Transfer of Cheques
It deals within the inter-bank transfer of cheques. Suppose a person X gives a
cheque of MCB to another person Y who also has an account in MCB, the clearing
department will handle it. The clearing department simply debits one account and
credits the other one.


Clearing of Cheques
It also deals with the cheques of other banks. Suppose an NBP account-holder
gives a cross cheque for MCB. Similarly, MCB account-holders give cheque to
people having accounts in other banks; these all banks need to clear their overall
balances with each other. The clearing department does this.

The clearing department makes different envelops for different cheques of each
bank. It then sends these envelops to the clearing house. In the clearing house,
representatives of different banks take the balances of all the cheques and the
balances are cleared. Now National Institution of Facilitation Technology (NIFT)
takes the job of clearing house. It not only separates balances for each bank but
also for each branch. The clearing department of MCB separates cheques of each
bank in different envelops and sends it to NIFT. After NIFT sends the cheques to
other banks, they send an OK report to NIFT which sends that report back to MCB.
This ensures that all cheques are safely deposited in the respective banks.

NBP Bank
Clearing checques
X
Cross cheque
Y MCB Deposited
MCB
Account-holder
NBP
Account-holder
MCB Bank
Transfer cheques
X
Gives cheque
Y
X account Dr
Y account -- Cr


Bills Collection
The bills collection is the key department in each branch. The objective of this
department is to receive the cheques of different bank of different area. Often the
cheque is drawn to the clients of another bank or account holder of the MCB and
similarly the customer of another bank draw cheque to MCB account. In both cases
the cheque is cleared, endorsement conformed, or takes the disbursed Guarantee.
And then deposit to the corresponding department or banks or whatever the case
may be.
Shortly the bills are divided in the following two main categories.
Local bills collection (LBC)
Country bills collection (CC)
Technology Department

Technological advancements are also affecting the banking industry. The
foreign banks have a competitive edge over all local banks in their
technologies' advancements and automated systems. Local banks have also
realized the gravity oil this situation and are striving to add computerized
systems to their branches.

MCB is ahead of all other local banks in this field and now it is in a position to
even compete with foreign banks. There are more than 1127 branches of
MCB all over Pakistan and out of these more than 1100 b ranches are fully
computerized.

Almost all .the branches of MCB are computerized; therefore, the need for a
technology department at each branch is growing. Now a day, a computer
division is working in each city to provide service to add the branches of that
area.

MCB has also introduced the now concept of online banking.
There are now more than 1100 branches linked through this system and they can
transact with each other directly using computer systems at their own branches.
Now customers do not have to wait long for their transactions and can operate
their account through all the online branches.


ATM Network

ATM stands for Automatic Teller Machine. This machine is used to transact in
one's account without intervention of humans. These machines are basically
used for taking cash, confirming balances and requesting statements / cheque
books.
MCB has one of the nations largest ATM Network with 500 ATMs covering
110 cities across the country and still growing. MCB ATMs give you a 24-
hours convenience of cash withdrawal, mini-statement, utility bill payments,
mobile top-ups, funds transfer services and much more. ATMs are operated
through a card issued to the valued customers and by application of Personal
identification Number (PIN number). A person can withdraw from any
machine across Pakistan with having an account in only one branch of MCB.
This was only possible with the help of online system. In this system all the
machines are linked to central banking host at IRM division Karachi through
either satellite or telephone controller. This system identifies the card holder
and his PIN number.

MCB Mobile is a quick easy and secure way to recharge mobile phones,
transfer money, pay bills and do much more. Visit the nearest MCB ATM or
call 111-000-622 to register and log on to www.mcbmobile.com using your
mobile phone to start transacting.
Now MCB has also entered into a contract with Cirrus which is a subsidiary
of MasterCard. This contract will enable an ATM card holder to use his account
even when he is out of country at all the ATMs where Cirrus logo is displayed.

Green Cards are cards with a maximum withdrawal facility of Rs. 10,000/- in
a day. The annual fee for this card is Rs. 300/- only.

Gold Cards are special cards with maximum withdrawal limit of Rs. 25000/- in
a day. These cards are issued to the persons having more than Rs. 500000/- as
their average balance.

International Cards are issued in collaboration with Cirrus and are useable all
over the world with maximum withdrawal facility according to the standards of
Cirrus.

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


MCB offers a complete suite of Classic, Gold and Platinum Visa Credit Cards
focusing on providing, superior services, travel privileges & shopping pleasure.
It also offers comprehensive insurance & installment plans, reward points and
SMS alerts that give a different feel to the world of credit cards. These unique
features include i-revolve, which makes variable mark-up rate available to
customers allowing them to repay at affordable rates.


Main Departments of MCB
There are three main departments in any branch of MCB
General Banking
Foreign Exchange
Advances/Credit
General Banking
General banking deals with following services:
Remittances
It is transfer of funds. Funds can be transferred in shape of pay orders, demand
draft, mail telegram and telegraph transfer. Payments of fees of different
organizations, fulfillment of tenders, and collection of funds are the main functions
of remittance. Maximum part of general banking depends on this department.
Issuance of different kinds of remittance:
Pay Order
Pay order is the property of person/company that has to take the benefit of the
amount being pay ordered by the concerned person. Pay orders are made for the
payment of fees, tender or issued for the payments of dealings. These are required
for the proof of payments made between the bank and the customer in the favor of
beneficiary. These are noted in printed block letters and yearly serial numbers are
issued from computerized system.
Demand Draft
Demand drafts are made for the beneficiary for payments, funds etc, these are
made for outstation branches of the concerned banks. An advice is also made for
the confirmation of the draft send. These are also approved and safe way of
sending amount to the beneficiary.
These are also noted by computerized system and a serial number is issued from
the computer system.


Mail Transfer
Mail Transfer is made with in the city for transfer of amount. An advice is also
made for the confirmation of the draft send. These are also approved and safe way
of sending amount to the beneficiary. These are also noted by computerized system
and a serial number is issued from the computer system.
Telegraphic Transfer
Telegraph Transfer is telegram message for transferring the amount from one
branch to other branch. A message advice and a confirmation advice both are made
with TT numbers that are issued for TEST. TEST depends on two steps:
First TEST is on Day, Date and Code Number of branch.
Second TEST is on Currency, whether Pak rupees or foreign currency,
amount and TT number issued from manual registers and confirmed from
computerized system.
Payment of Pay-Order and Demand Draft
Pay-Order and Demand Draft both could be paid in shape of physical payment of
cash and in case transfer of amounts; the amount could be transferred in the
beneficiary account. In case of physical payment authorized signature of
beneficiary are taken for the proof of amount being paid to him and in case of
transferring of amount authorized signature of the beneficiary are checked and
verified for reducing risks.
Cancellation of Pay- Order and Demand Draft
Any type of Pay-Order / Demand Draft is cancelled by the permission and
instructions made by the beneficiary. The customer could only cancel the pay-
order/demand draft as the verified signatures of beneficiary are present on the
advice.
Vouchers
Vouchers are made for records and they should be completed in all respects, the
amount, date, its head, particulars, amount in words, authorized signatures and
contra advice or voucher should be present. Vouchers are advice either debit or
credit slips. They are contra of each other. If any voucher of debit is passed its
contra credit voucher should also be passed for the balancing of accounts, their
respective sheets.


Inward Clearing
It depends on those checks that are cleared inter branch and with in the city. As the
concerned branch receive any type of clearing check first of all physical checking
is taken place. For clearing procedure there should be two days margin. These
cheques have their vouchers and the amount of the cheque and voucher should be
identical. Than these cheques are stamped and noted on receiving sheet as well as
feed in to the computerized system.
Outward Clearing
It depends on those cheques that are cleared out side the city. For outward clearing
cheques are send because the home branch has there accounts but checks are of
other banks. Contras of these cheques are vouchers that are recordrd in the home
branch.
Token
Token is the process of different steps of checking of the cheque:
1. Physically Checking
First of all the cheque is physically checked.
2. Date
It should not be advanced of the latest date; date should be limited to only past six
months.
3. Amount
Amount in which words and figures should be written in clear writing. Any kind of
over writing and cutting should be prevented. Otherwise it would not be passed
and returned to the customer.
4. Payees/Bearer Cheques
If the cheques are payees accounts head or they have marked bearer then these
cheques are not labeled token.
5. Verification of Signatures
Signatures are checked as well as verified. In case of other representative of the
account holder brings the cheque then two signatures of that person are taken.


6. Stamps
After physical checking of the cheques they are stamped.
Issuance of Cheque Books
Any account holder that has opened the account he/she could credit his/her account
and for this purpose there should be a cheque book, so he/she could be able to
credit the needed amount whatever he/she wishes. For the issuance of the cheque
book a person is advised to fill a requisite slip with his/her full names and the
account number with two verified signatures. These signatures are checked and
then another requisite slip prepared by the bank staff send to the NIFT, and it
issues the printed cheque books after completion of the procedure in two or three
days.
Account holder can take it by singing on the issuance register or if the absence of
the account holder another person could also take the cheque book only if he/she
has authorized signature of the account holder. When the cheque books are issued
they are feed in the computer system from the requisite slip so when the cheques
are given for the credit/transfer of amount they could checked. In this way neither
the cheques could be repeated nor could the invalid cheques be claimed.
Issuance of ATM Cards
Head office issues ATM (Auto Teller Machine) cards with their PIN (Personal
Identification Number) codes and when the customer claims for their ATM card
they are checked from the list that is also issued from the head office, and the claim
is checked from the list and if the name is found than the cards are issued by taking
a signature and their PIN codes are given to them by taking signatures on their
ATM card forms. The ATM card has been activated by the number provided at or
with the specific card.
Cancellation of ATM Cards
The Cancellation of ATM Cards becomes necessary in the following conditions:
If folded or damaged
Stolen
PIN code missed or forgotten
Card captured by the machine and expired
If requested by the customer


The cancellation or inactivity of the card is being processed by the request or
instructions provided from the customer.
Sale of RTC
The selling of the RTC has been described in step wise as follow:
In this step the bank initially seeks the information whether the person is going to
purchase the RTCs on cash or on account basis. If the transaction is based on
account then initially the cheque has been cleared and if the amount is sufficient
then RTC has been issued after deducting after the amount from the account.
If the amount of RTC is more than Rs. 25000 then tax has levied by 0.3% in case
of absence of the tax deduction form. After this the bank handed over a form for
RTC sale dully filled by the concerned person and after this RTC number has been
noted on the form as well as their amount and quantity. After this we note down
the sold RTC in the concerned register. MCB Pak rupee travelers cheques the
fastest way to carry cash for high value cash transact. Launched in July 1993,
MCB RTCs have been preferred choice of the rupee travelers cheques target
market. We now have RTCs with maximum security features, we have
incorporated tele-verification with the product where customers can call and check
whether the RTC is valid. At the same time, our RTC team anywhere in Pakistan
ensures superior quality service.
Short Notice Term Deposit
There are short times either for seven days or for thirty days and the profit is
calculated by the given percentage from the head office at the payment time. If the
customer fails to complete the duration of seven days or thirty days then no profit
is given. If any amount is outstanding, only in case of automatic continuity, then
the profit is calculated for the whole period by the rate given from the head office
multiplying from the numbers of days divided by the 365 for the one-day profit.
Amount, Rate, Number of Days / 365 Days
Profit is calculated for the six months only for outstanding SND. Zakat is also
deducted but if Zakat deduction form is submitted to the bank, no Zakat will be
deducted then, 10% withholding tax is also deducted from the profit to calculate
net profit.


Call Deposit
It is highly liquid instrument, it can be cashed at any time when needed. This
instrument bears no profit on it. It is mostly used for the purpose of tenders.
Foreign Exchange
LCs Establishment
Any company can provide its documents containing e-form, bill of lading, short
shipment notice in case of short shipment, packaging list etc. the information
provided from the documents is recorded in the LC establishment portion or
section in the computer.
Payment of Retirement
When the transactions have been completed then approved documents from the
concerned bank are sent to the home bank for the payment or retirement of the LC.
These transactions have recorded in the payment or retirement section of the
computer.
Foreign Currency Deposits
The Foreign Currency Deposit relates with the foreign currency accounts, cash
deposit or credit and foreign remittances.
Foreign Remittances
In this we received the messages through SWIFT for foreign remittances, which
we record in their respective accounts, if these are relates with Pak rupees than it
was transferred in Pak rupees with the latest rate and if this relates to the foreign
currency than it is dealt with accordingly. The amount has been credited to the
respective account and the head office has been debited against it. After crediting
the amount to the respective account. All the subsequent entries have been made in
the registers and also in the computer record as the system now have been
upgraded on computers. As we are reporting daily to the head office, so an
annexure has been maintained and faxed to the head office.


Advances/ Credit
This department deals with the approval of different kinds of loans to different
business entities. The loans, which are being approved by the department, are kept
with some securities such as bonds, properties and any other type of asset, which is
equally valuable or more than this as a guarantee. Every branch has its own limit, if
the amount of loans is within the limit of the branch then it is being approved by
the branch but if the amount of loan is exceeding the limit then it has to make it
approved by the head office. In this case the branch stored all the required papers
and sent them to the head office for necessary action. If the head office approved
the loan then mostly the period contains a year. And if the party requires more loan
than after a year the loan has been re-approved required that they should have the
limit. In case if the head office do not approve the loans then the return letter came
back with the reasons of not approval of loan and if the reasons have been made
approved by the concerned party then it could be sent again for approval. This
whole process is recorded in the back remain with the bank until the party has not
refunded all the amount of loan and bank has the authority to liquidate those assets
for preventing it from loss.
Required Information
An assessment of his business abilities.
Accurate & up-to-date financial statements.
Market reports about the borrower.

Party dealing with other banks.
Nature and structure of borrower business.
Names of proprietors, partners or Directors
Detail of companies associated with borrower business.
Financial condition of borrower business.
Preparation of Credit Proposal
At first, a formal application for credit approval is obtained from the party along
with complete group position. The parties credibility report is also obtained from
the banks from which the party has been doing the business. The party creditability
report is also taken from the head office of Trade information Division.
For obtaining credit, party has to submit the last two years Balance Sheet and
Profit & Loss Statement duly attested but authorized auditors. If the party also
involve in export or import business then the bank also consider the data of three
years about imports and exports.


The Current and Debt equity ratio is also calculated by the bank. Then
recommendations are made the type of data required to prepare the credit proposal
is to be gathered from different departments. Some data is obtained from the
foreign exchange department. Some data is obtained from current account
department and some data is available in Advance Department. The purpose for
which the financing is required should be explained very clearly.
The securities offered by the party to the bank are also evaluated. In case of
pledging of the property in shape of land or building, the complete evaluation of
the property should also be attached. After all the requirements and necessary
documents for applying for advances is fulfilled by the party then, the case is sent
to the Chief Manager for approval. If the manager find any discrepancies, he may
write on these documents. If the credit limit is in his range, he may approve the
party for credit. If the amount is exceeding the Chief Manager send the case is
forward to the Circle Office for approval and here the same procedure is repeated
and if the credit amount is in the range of GM, he can approve and if the credit
amount is very large from Circle Office, the case is then sent to Head Office and if
it is a real big then is to be decided by Board of Director.

MCB provides two types of advances:
Secured Advances
Unsecured Advances
In secured advances, the bank takes any security against the loans while in case of
unsecured advance, no security is taken by the bank.

MCB divided the advances in to two major categories:

Fund base advances
Non fund base advances

In the fund base advances, the funds of MCB is involved and in Non Fund based
only guarantee is given by the bank.
Fund Base Advance
MCB have following Fund base facilities of advance in its corporate branches.
These are as follows:
Demand Finance (DF)
Cash Finance (CF)
Running Finance (RF)

Demand Finance

This is a type of secured loan and demand loan never allowed without security. It
is a type of long term financing. MCB also gives loan under the head of demand
finance to individuals, industrial units commercial business etc.


Cash Finance
In this, the borrower gives a specific reason for the need of cash. MCB gives the
facility of cash credit to business. The amount is passed through voucher and credit
to the party account. Normally 0.60 paisa per thousand is charged on daily basis to
customer.
Running Finance
These finances as evident by the name are given to the business to meet their daily
needs. The mark up is charged on daily balances. This type of advances are given
to trade, commerce and manufacturing for general purpose. Normally 0.60 paisa
per thousand is charged is charged on daily basis. It is drawn through cheque.
Letter of Credit
A letter of credit is a written instrument issued by a bank authorizing the seller to
draw in accordance with certain terms and stipulating legal forms, that all such
bills will be honored.

How a letter of credit is opened?
Application for a letter of credit
Line of credit
Opening of the letter of credit
Handling of the documents
Payment by the importer to the bank.
Liability of the issuing bank
Application for a letter of credit
An importer prepares an application on the prescribed form available from the
bank. The information which are supplied in the application are based on the
contract of sale and include only the importer feature of contract such as the value
of the merchandise, port of shipment, port of unloading, expiry date of the papers
and brief description of the goods. If the bank is satisfied with the applications, it
will signed and acceptance agreement with the importer.

Line of credit
Before issuing a letter of credit, bank takes all necessary precautions for securing
its credit. The bank first examines the customers credit standing, the type of goods
to be imported, the market demand for the goods, the collateral offered to cover the
credit. Then it establishes the amount i.e. the line of credit.


Opening of letter of credit
The letter of credit can be opened by mail or by cable. When it is opened by mail,
the issuing bank sends letter of credit and to carbon copies to the importer. The
importer then dispatches the letter of credit to the exporter in foreign country by
mail. One carbon copy is kept for the record. The second carbon copy after signing
is sent to the bank by the importer. If an importer directs the bank to open letter of
credit by cable, the importers bank sends a cable to the corresponding bank in the
foreign country with a request to notify the exporter.
Handling of the documents
When the exporter receives a letter of credit, he presents the required documents
and the draft to the bank in his own country after shipping of documents. If the
bank is satisfied with the documents in the importing country and pays the exporter
at official rate in the currency of his own country.
Payment by importer to the bank
When a bank approves the application of a customer for opening letter of credit, it
does not lend money to the importer. The bank only lends the importer to use the
credit standing of the bank to the exporter in the foreign country. The bank makes
a contract with the importer that when the draft if send by the negotiating bank for
payment the importer will make the payment to the bank not later then the day only
the bank is to honor the obligation. In case of a sight letter of credit the payment to
the corresponding bank is to be made on the day the draft and documents are
received. When the time of letter of credit is used the importer is to arrange the
payment not later than the day on which the draft is to mature.
Opening of Letter Of Credit in MCB
Before opening of L/C certain requirements are necessary that are as follows:
The applicant must has import registration number
He must has account in that bank
He must pledges his security against the L/C amount
Personal Loan
MCB personal loan shortens the distance between your dreams and your
celebrations. It is fast, flexible and affordable, speedy loan approval. No guarantor
/ security / collateral required. Borrow up to Rs. 1,000,000. 1 to 5 year tenures,
partial and full adjustments allowed anytime during the tenure, optional insurance,
equal monthly installments, lower interest rates, higher loan limits, loan amount


renewed any time after nine months. You as an individual can gain and benefit the
through MCB consumer banking. In MCB you get friendly, efficient and attentive
personalized banking services, a unique banking relationship experienced by each
MCB client.
.



Organizational Chart


CORPORATE PROFILE

Board of Directors

Mian Muhammad Mansha
( Chairman)

Non-Executive Director

Mr. S. M. Muneer
(Vice Chairman)
Non-Executive Director

Mr. Tariq Rafi Non-Executive Director

Mr. Shahzad Saleem Non-Executive Director

Mr. Sarmad Amin Non-Executive Director

Mr. Mian Raza Mansha Non-Executive Director

Mr. Mian Umer Mansha Non-Executive Director

Mr. Aftab Ahmad Khan Non-Executive Director

Mr. Manzar Mushtaq Non-Executive Director

Mr. Ahmad Alman Aslam Non-Executive Director

Dato' Seri Ismail Shahudin Non-Executive Director

Mr. Abdul Farid Bin Alias Non-Executive Director

Mr. M.U.A. Usmani
(President/ CEO)
Executive Director

Mr. Abdus S.Sami Company Secretary


Management
Mr. Ali Munir Strategic Planning and Investment

Mr. Agha Saeed Khan Operations

Mr. Raheel Ejaz Compliance

Mr. Imran Maqbool Commercial Branch Banking Group

Mr. Laqa Sarwar Special Assets Management

Mr. Muhtashim Ashai Wholesale & Investment Banking

Mr. Muhammad Nauman
Chughtai
Credit Risk Review

Mr. Salman Zafar Siddiqi Financial Control Group

Mr. Ahmed Kareem Human Resources


Mr. Mohammad Ramzan Treasury & FX


Mr. Ali Kazmi

Senior Management

Consumer Banking

Mr. Kamran Rasool
Security & Corporate Social
Responsibility

Mr. Imtiaz Mahmood Information Technology

Mr. Syed Rashid Rahman Islamic Banking

Committees
Audit Committee
Mr. Tariq Rafi Chairman

Mr. Aftab Ahmad Khan Member

Mr. Ahmad Alman Aslam Member

Dato' Seri Ismail Shahudin Member

Human Resources Committee
Mian Mohammad Mansha Chairman

Mr. Mian Raza Mansha Member


President / CEO Member


Risk Management & Portfolio Review Committee

Mian Umer Mansha Chairman

Mr. Sarmad Amin Member

Mr. Manzar Mushtaq Member


Committee on Physical Planning, IT Systems & Contigency
Arrangements

Mr. Sarmad Amin Chairman

Mr. S. M. Muneer
Member

Mr. Tariq Rafi Member

Mr. Mian Umar Mansha Member


Business Strategy & Development Committee


Mr. S. M. Muneer Member


Mr. Mian Umer Mansha Member


Mr. Abdul Farid Bin Alias Member



SBP Report Compliance Monitoring Committee

Mr. S.M. Muneer Chairman

Mr. Sarmad Amin Member



IT Committee

Mian Raza Mansha Chairman




Write Off & Waiver Committee

Mian Muhammad Mansha Chairman



Chief Financial Officer

Mr.Salman Zafar Siddiqi

Company Secretary

Mr. Abdus S. Sami

Audit & RAR Group

Mr.Kamran Zafar Muggo


Adresses

Principal Office
MCB House, 15 Main Gulberg, Lahore

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

Registrars and Share Registration Office
M/s. THK Associates (Pvt.) Limited
State Life Building No.3,
Dr. Ziauddin Ahmed Road,
Karachi

UAN: (042) 111-000-111
PABX: (042) 36041998-9
Website: www.mcb.com.pk
Email: info@mcb.com.pk , investors.relations@mcb.com.pk


Profile of the Board of Directors
Mian Mohammad Mansha
Chairman
Mr. Mansha has served as the Chairman of MCB
since its privatization in 1991. In 2004, he was
presented with Pakistan's highest civil award the
Sitara-e-Imtiaz, for his contributions to industrial
development. He is a member of the International
Advisory Board at Babson College in the USA. He is
also on the Board of Engineering Management
Foundation (FASAT), Board of Investment (Govt. of
Pakistan), Civil Aviation Authority (Govt. Nominee),
Shalamar Medical & Dental College and also serves
as the Honorary Director of Punjab Board of
Investment & Trade (PBIT). In addition, he is the Chairman on the Board of
Punjab Coal Mining Company.
Mr. S.M. Muneer
Vice Chairman
With experience in sectors ranging from tanneries,
textiles and leather garments, Mr. Muneer is a
consummate industrialist. He has been awarded with
The Best Export Performance trophy by the
Federation of Pakistan Chamber of Commerce &
Industry (FPCCI), the Gold Medallion Award from
the International Export Association, UK and Best
Businessman of the Year Award from FPCCI. In
addition, he has received the Sitara-e-Isaar and the
Sitara-e-Imtiaz in 2006 and 2007 respectively. His
contributions and achievements go beyond the economic sphere into the education
sector as well. He was awarded an Honorary PhD degree by the Governor of Sindh
and is also a member of the Board of Directors of CBM and Greenwich College,
Karachi.

Mr. Atif Bajwa


President
Mr. Bajwa has 28 years of diverse national and
international experience in corporate and consumer
banking. He began his career at Citibank Pakistan as a
corporate banker in 1982 and went on to become a
senior member of the Corporate Banking & Finance
Unit for the Gulf Markets. From 1993 - 2001, he was
part of ABN AMRO Bank where, among other
significant roles, he served as Country Head, Pakistan
and later Consumer Banking Head, Asia Pacific. Mr.
Bajwa re-joined Citibank in 2001 as Regional Head
for Central and Eastern Europe covering corporate and
consumer banking and then in 2005, moved to Dubai
with Mashreqbank to lead their Retail and Small
Business Group. In June 2007, he joined MCB Bank and has brought along with
him the vision and leadership to lead the bank to new horizons.
Mr. Tariq Rafi
Mr. Rafi is a recipient of the coveted civil award Sitara-e-
Imtiaz and the Best Businessman of the Decade. At
MCB, he is the Chairman of the Audit Committee,
Member of the Risk Management & Portfolio Review
Committee, Member of the Committee on Physical
Planning, IT System & Contingency Arrangements.
Mr. Shahzad Saleem
Mr. Shahzad Saleem is an active member of the Risk
Management & Portfolio Review Committee at MCB.
Along with that he is serving as the Chief Executive of
Nishat Chunian Ltd and Chairman of Nishat Chunian
Power Ltd.


Mr. Sarmad Amin
Mr. Amin has 30 years of business experience in the
fields of Construction, Electrical Manufacturing and
Textiles. He serves as a Director for various companies.
At MCB, he is the Chairman of the Committee on
Physical Planning, IT Systems & Contingency
Arrangements and a member of the Risk Management
& Portfolio Review Committee.
Dr. Muhammad Yaqub
Former Governor of SBP (1993-1999), Dr. Yaqub has held various offices for the
Government of Pakistan and the IMF. Appointed to the MCB Board in April 2006
he is a member of the Audit Committee, the Business Strategy & Development
Committee and the Human Resource Committee.
Dato Mohammed Hussein
Dato' Mohammed Hussein, joined the MCB Board as
an Independent Non-Executive Director in August
2008. He is currently a member of the Audit Committee
and the Business Strategy & Development Committee.
His years of experience in the financial sector include
31 years with the Maybank Group where he held
various senior management positions including Deputy
President and Chief Financial Officer until he retired in 2008. Presently he also sits
on the board of a number of companies listed on the Stock Exchange in Malaysia
and Singapore, several government-linked institutions in Malaysia and the Exim
Bank of Malaysia.
Mian Raza Mansha
Mr. Raza Mansha is a member of the Committee for
Business Strategy & Development, Human Resource,
Risk Management & Portfolio Review, Physical
Planning, IT Systems & Contingency Arrangements at
MCB. In addition, he is a board member for various
other businesses.


Mr. Aftab Ahmad Khan
Mr. Aftab Ahmad Khan is the Group Director, Finance
and Accounts at Nishat Group of Companies, which
involves financial planning, strategic decision making
and investment appraisals for the group. He is also a
fellow Chartered Accountant of the Institute of Chartered
Accountants of Pakistan. Mr. Aftab Ahmad Khan has
over 47 years of diversified professional experience in
various sectors. Presently he serves on the board of
Commercial Banking, Textile, Paper, Energy, Hotel and Tourism sectors. He has
also served on the Punjab Industrial Development Board and in Public sector
organizations such as Ghee, Sugar and Rice mills. At MCB he is a member of the
Audit Committee.
Mr. Abdul Farid Bin Alias
Mr. Farid is the Head of International at Maybank, Malaysia. He has held senior
positions at a number of Malaysian and global financial institutions primarily in
the area of Investment Banking. From April 2009 to May 2009 he served as a
member of the Committee on Physical Planning, IT System & Contingency
Arrangements at MCB.
Mian Umer Mansha
Mr. Umer Mansha was elected as a Director to the
MCB Board in November 1997 and served till
September 2007. He was re-elected as a Director at
MCB in the 61st AGM held on March 27, 2009.
Presently he is the Chairman of the Risk
Management & Portfolio Review Committee and is
member of the Business Strategy & Development
Committee at MCB. In addition, he is a Director on
the Board of Adamjee Insurance Company and Pakistan Business Council.
Mr. Muhammad Ali Zeb
Mr. Muhammad Ali Zeb is currently the CEO of Adamjee Insurance and has more
than 15 years of professional experience in Finance, Insurance & Manufacturing
sectors. He was elected as a Director at MCB in the 61st AGM held in March
2009. At MCB, he is a member of the Audit Committee.


Management Styles
Managers have to perform many roles in an organization and how they handle
various situations will depend on their style of management. A management style
is an overall method of leadership used by a manager. There are two sharply
contrasting styles that will be broken down into smaller subsets later:
Autocratic
Permissive
Each style has its own characteristics:
Autocratic: Leader makes all decisions unilaterally.
Permissive: Leader permits subordinates to take part in decision making and also
gives them a considerable degree of autonomy in completing routine work
activities.
Combining these categories with democratic (subordinates are allowed to
participate in decision making) and directive (subordinates are told exactly how to
do their jobs) styles give us four distinct ways to manage:
Directive Democrat: Makes decisions with participation of all people. Supervisor
closely supervises subordinates.
Directive Autocrat: Makes decisions unilaterally.
Supervisor closely supervises subordinates.
Permissive Democrat: Makes decisions participation of all people. It gives
subordinates latitude in carrying out their work.
Permissive Autocrat: Makes decisions unilaterally. It gives subordinates latitude
in carrying out their work.
Managers must also adjust their styles according to the situation that they are
presented with. Below are four quadrants of situational leadership that depend on
the amount of support and guidance needed:
Telling: Works best when employees are neither willing nor able to do the job
(high need of support and high need of guidance).


Delegating: Works best when the employees are willing to do the job and know
how to go about it (low need of support and low need of guidance).
Participating: Works best when employees have the ability to do the job, but need
a high amount of support (low need of guidance but high need of support).
Selling: Works best when employees are willing to do the job, but dont know how
to do it (low need of support but high need of guidance).
The different styles depend on the situation and the relationship behavior (amount
of support required) and task behavior (amount of guidance required).


Financial Analysis


BUSINESS VOLUME
Business volume in terms of Deposit, Advances and Revenue investments for the last five
year as under:
REVENUE
Particulars 2012 2011 2010 2009 2008
-------------------------Rupees in 000-----------------------
Mark-up /
return / interest
earned
68,356,191

68,146,588 54,821,296 51,616,007 40,043,824
Fee,
commission
and brokerage
Income
5,934,472 5,117,196 4,129,540 3,331,856 2,993,394
Dividend 1,197,615

1,003,272 543,906 459,741 617,554
Income from
dealing in
foreign
Currencies
822,856 921,262 632,346 341,402 727,564
Gain on sale of
securities
824,539 735,639 411,834

773,768 740,429
Other income 373,849

334,822 547,680 736,118 855,697
Total Revenue 77,509,629 76,258,779 61,086,602 57,258,892 45,938,462


DEPOSITS
Particulars 2012 2011 2010 2009 2008
-------------------------Rupees in 000-----------------------
1. Customers

Fixed deposits 80,649,846 91,501,846 80,073,848 62,651,531 61,680,332
Saving
deposits
268,923,547 225,920,953 196,015,213 173,797,078 150,927,938
Current
Accounts
Non-
Remunerative
183,107,714 161,680,596 144,545,488 123,898,324 105,310,862
Margin
Accounts
3,520,404 3,511,830 3,482,526 2,910,655 3,137,434
Total
Customers
Deposits
536,201,511 482,615,225 424,117,075 363,257,588 321,056,566
2. Financial Institutions
Remunerative
deposits
6,090,878 6,319,827 4,128,090 2,258,295 5,197,969
Non-
remunerative
deposits
2,695,702 2,253,658 3,126,772 2,088,061 3,926,526
Total
Financial
Institutions
Deposits
8,786,580 8,573,485 7,254,862 4,346,356 9,124,495
Total
Deposits
544,988,091 491,188,710 431,371,937 367,603,944 330,181,061


1.3.3 ADVANCES
Particulars 2012 2011 2010 2009 2008
-------------------------Rupees in 000-----------------------
Total
Advances
239,788,511 227,573,618 254,551,589 253,249,407 262,135,470

1.3.4 INVESTMENTS
Particulars 2012 2011 2010 2009 2008
-------------------------Rupees in 000-----------------------
Investments 405,601,313 316,651,613 213,060,882 167,134,465 96,631,874


Raito Analysis


Specialized Analysis of MCB
Items Involved
Earning Assets
Total Assets
Net Margin
Net Profit
Deposits
Capital
Pretax Income
Provision for NPL
Net Charges Off
Loans
Years Concerned
Current Year: 2012
Base Year: 2011
Name of Ratio 2012 2011 Result Reasons for
Changes
Earning assets
to total assets
ratio
84.13% 83.80% Favorable Increase in
earning assets
by 17.7%
Return on
earning assets
3.24% 3.55% Unfavorable Increase in
earning assets
by 17.7%
Net margin to
earning assets
6.34% 8.13% Unfavorable Decrease in net
margin by
8.24%
Increase in
earning assets
by 17.7%
Deposit time
capital
5.36 5.53 Favorable Increase in
capital by
14.58%
Loan loss
coverage ratio
pretax income
by 1.81%
Decrease in bad
debts by 99%
Loan to
deposits ratio
.44 .47 Unfavorable Increase in
deposits by
10.96%


Critical Analysis

Activity
The effectiveness of management towards utilization of resources is favorable in
current year as compared to base year as the indicator calculated has shown favorable
results.
The positive activity of the Muslim Commercial Bank is majorly because of
increase in earning assets which is about 17.7%.

Profitability
The analysis of the ability of the business to generate return for the owner
indicates that it is unfavorable in current year in comparison with base year as
all the indicators calculated analyze the firms performance relating to the
owner is decreasing. The major reason of this decrease in profitability is
associated with increase in earning assets which is 17.7% and decrease in net
margin which is 8.24%.

Debt to Equity Ratio
The debt to equity ratio of MCB indicates a favorable impact. As the deposits of a
bank show the worth of the bank so the increasing ratio indicates the increasing
worth of the bank. At the same time decreasing ratio is also favorable because it
shows the solvency of the bank. So in this case the ratio is decreasing showing the
solvency of the bank. The decrease in the ratio is majorly associated with increase in
capital by 14.58%.

Loan loss coverage ratio
This ratio indicates the companys ability to cover the loan losses. The result of
the ratio indicates that the companys ability to cover the loan losses is
favorable in current year.
The increase in ratio is associated with increase in pretax income by 1.81% and
a major decrease in bad debts by 99%.

Loan to Deposits
The liquidity ratio of the company indicates that the liquidity of MCB is
unfavorable in current year as compared to the base year.
The decrease in liquidity is majorly associated with increase in deposits which
is 10.96%. The increase in loans (4.98%) is less than the increase in Deposits,
thats why the resultant impact is negative.


Market Analysis
In market analysis we check the strength of the company in the market. It can be
checked internally and externally.
Items Involved
Net Profit
No. Of Shares Outstanding
Market Price
Book Value
Years Concerned
Current Year: 2012
Base Year: 2011

Market Analysis
Name of
Ratio
2012 2011 Result Reasons for
Change
EPS 22.76 23.23 Unfavorable Increase in no.
of shares by
about 10%

P/E Ratio 9.21 5.79 Favorable Decrease in
EPS by 2.02%
Increase in
market value
by 55.8%
Market to
Book Value
market value
by 55.8%
Dividend
Yield
6.25% 8.92% Unfavorable Increase in
market value
by 55.8%
Dividend
Payout Ratio
61.50% 55.97% favorable Decrease in
EPS by 2.02%


Critical Analysis
The analysis of the company with respect to the strength of the company in the
market indicates that the companys overall performance is better and has better
market potential in the comparative years concerned as the majority of the
indicators relating to the market potential are favorable in current year as compared
to base year.
The reason for the favorable market strength of the company is increase in market
price of the share by about 55.8%.
The investor is much more satisfied as for as its return is concerned because of
high dividend in current year.
As for as internal potential of the company is concerned, it is favorable in current
year as the dividend payout ratio is favorable in current year.
The increase in dividend payout ratio is majorly associated with the decrease in
earnings per share by 2.02% and increase in cash dividend.
The increase in the market value boosts the investment for the company as it
indicates the external potential of the company. Moreover the gap between market
value and book value in current year is more than the base year which indicates
that in current year more speculation factors involved.
In a nut shell, the entire analysis concludes that the company is good both
externally and internally which shows that it can attract and retain the investors.
However room for the improvement is there.


Solvency Ratio
Solvency ratio is one of the various ratios used to measure the ability of a company
to meet its long term debts
Items Involved
Assets Debts Equity
Cash & balance with treasury
bank
Balance with other banks
Lending to financial institutions
Investments
Advances
Operating fixed assets
Deferred tax assets
Other assets
Bills payable
Borrowings
Deposits & other accounts
Subordinated loans
Liabilities against assets
subject to finance lease
Deferred tax liabilities
Other liabilities
Share capital
Reserves
Unappropriated
profit
Surplus on
revaluation of fixed
assets

Years Concerned
Current Year: 2012
Base year: 2011

Capital structure of the bank

Name of Ratio 2012 2011 Results Reasons for Change
Debt Ratio .867 .864 Unfavorable Increase in Total Debts by
17.67%
Equity Ratio .132 .136 Unfavorable Increase in total assets by
17.24%


Critical Analysis
The capital structure of the company indicates that the company is a debt oriented
company as the debt ratio is far more than the equity ratio which is good because
banks deposits show the worth of the bank.
Furthermore the debt ratio of the company is increasing which is majorly because
of increase in total debts by about 17.67% which indicates that the companys
deposits are increasing. It means that the company is utilizing more debt in current
year.

Earning Assets to Total Assets Ratio

2012 2011 2010 2009 2008
91.6% 91.87% 91.44% 91.95% 91.65%

Critical Analysis


Return on Earning Assets

2012 2011 2010 2009 2008
2.99% 3.19% 3.23% 3.75% 3.32%

Critical Analysis


Net Margin to Earning Assets

2012 2011 2010 2009 2008
5.80% 7.41% 7.05% 7.60% 6.97%

Critical Analysis


Deposit Time Capital

2012 2011 2010 2009 2008
59.24 58.74 56.73 53.18 52.54

Critical Analysis


Loan Loss Coverage Ratio

2012 2011 2010 2009 2008
18.5 11.88 9.39 4.99 16.86

1.3.1 Critical Analysis




Human Resource Management


Structure of the HR Department

HR Structure
President
Group Head
HRM
Div Head
HRM
Head
compensation
Head Financial
Services
Head HR
Operations
HR dac,
Recruitment
&
training

Head
Organizational
Development
Compensation
Manager
Manager
Staff Services
Senior HR
Associate
Assistant
Compensation

Senior HR
Associate

Associate Staff
Services

HR
Associate
Training
Relationship
Management
Manpower
Budgeting &
Planning
HR Relationship
Manager

Senior Relationship
Manager
HR
Relationship
Manager
HR Associate
disciplinary
action


Human Resources Committee





Terms of Reference
The main tasks of the human resource committee are ensuring review of existing
policies and revision in these policies as deemed necessary. Proper classification
and reclassification of employee, pay scales, job description and methods of
periodical reviews, description and methods of reviews, development of in-house
expertise, approval and revision of organizational setup of latest criterions for
recruitment, training and performance appraisals and effective management of
information systems to monitor implementation of policies as approved by the
board. Raza Mansha is a member of business strategy & development, human
resource, risk management portfolio review, physical planning, IT system &
contingency arrangement committees.
Mr. Shahzad Saleem is the chairman of NISHAT CHUNAIN power limited &
Director of MCB.
Muhammad Ather is head of requirement & training and Fawad Ahmed Khan is
HR manager.


Human Resource Department

The Human Resource Department (HRD) supports the importance of the
individual while thinking strategically. HR conveniences the establishment of an
atmosphere in which people has the incomes to continuously grow in motivated for
carry on improvement for the remunerations of all stakeholders.

Situated as strategic business unit within the commercial structure of the MCB, the
HRD has as its prime responsibility to give to the organizations efficiency by
attracting its people and line up the strategies, actions and systems to the policy of
the business. It is through this that HRD adds value to the institution.

The Human Resource Department conveniences and partner with its customers and
MCB staff in applying the planned strategy through.

Capability grounded HR systems
Policy and Actions
Evolving abilities
Appearance organization
Clear and exposed statement
Remuneration and appreciation
Employee happiness
Variety
Agreement

Human Resource outlet is to assurance the important services, progresses and
policies are in place to succeed employee to accomplish at their finest, be safe and
satisfied with their work and be properly developed. Human Resource is also vital
to settle that employees energy in an atmosphere which is in unity with the
department s values and best training.

Human Resources area office is liable for the administration of the human resource
role for the department of human services. This entails the responsibility for human
resources systems, policy and training through the branch. The branch is planned
to importance on planned human resource work, the supervision of departmental
managers and human resources staff in areas and divisions.

Human resources have a number of areas of focus including:

Employee relation
Employee security
Management facilities
Arrangement and concert


Organizational capability
Organizational growth and maintenance

The human resource branch managers apply a number of organization-wide
schemes throughout the department in the above areas, in association with human
resource staff in area and programs.

Functions of HR Department

Human Resource Planning

Human resource planning is the term used to describe how companies certify that
their staff is the right staff to do the jobs. Sub topics include planning for staff
recruitment, planning for candidate search, training and skills analysis and much
more.
Human resource forecasting and human resource audit are the two most important
components of this type of planning. Human resource forecasting refers to
predicting an organizations future demand for number, type and quality of various
categories of employees.
HR planning is done by the organization basically to ensure the following points:

It has the right people in place
It has the right mix of skills
Employees display the right attitude and behaviors
Employees are developed in the right way

In MCB method to forecasting HR needs are:

Methods to forecast HR needs

HR department in MCB uses following approaches to forecast its human resource
requirement

Firstly they used zero based forecasting techniques uses current level as
starting point for determining future staffing needs.

Secondly they adopt bottom up approach each level of organization,
starting with lowest, forecasts its requirement to provide aggregate of
employee needs.

Mathematical model: assist in forecasting. Relationship between sales
demand and number of employees needed is positive one.


Employees Recruitment & Selection

Sources of candidates
Internal sources
External sources
Employment selection process

Recruiting refers to the process of attracting potential job applicants from the
available labor force. Every organization must be able to attract a sufficient
number of the job candidates who have the abilities and aptitudes needed to help
the organization to achieve its objectives.

Sources of candidates

While hiring, the organization has an internal as well as external pool of
employees. The current employees are the internal source for recruitment.
Whenever a position is vacant, the organization can post the vacancy internally and
search for a suitable candidate. This is also convenient for the organization as it
reduces the search time, cost and also serves as motivator for the employees.
External sources includes all the people within or sometimes, outsides the country
who meet the requirements of the job when the organization publish the job
advertisements in newspapers and on websites, they are searching for the
candidates through external sources that is outside the organization.

Internal sources

Some internal sources of requirement are given below

Transfers

In MCB the employees are transferred from one department to another according
to their efficiency and experience.

Promotion

The employees are promoters from one department to another with more benefits
and greater responsibility based on efficiency and experience.

Upgrading and demotion

Others are upgrading and demotion of present employees according to their
performance.


Retired and retrenched employees

Retired and retrenched employees may also be recruited once again in case of
shortage of qualified personnel or increase in load work. Recruitment such people
save time and costs of the organization as the people are already aware of the
organizational culture and the policies and procedures.

Deceased and disabled employees

The dependent relatives of deceased and disabled employees are also done by
many companies so that the members of the family do not become dependent on
the mercy of others.

External Sources

Online advertising
We advertise on our own website.
Print advertising
We advertise in the lawyer, legal week and other legal publications.
Referrals/ recommendations
One of our main sources of candidates is referrals and recommendations from
other candidates who have placed.
Employment Exchanges
Government establishes public employment exchanges throughout the country.
These exchanges provide job information to job seekers and help employees in
identifying suitable candidate.
Employment Selection Process
Excellent employee selection starts with the main elements of the job description
and the success factors. With the job parameters, responsibilities and skills/
knowledge and abilities laid out, the interview assessment becomes much more
straight forward. The next step is to define which elements are most important and
rank weight them accordingly 3-4 from each section sensible and do this before
interviewing the candidates.


Training and Development
The objective of training activities is to keep MCB employees well-informed of
latest professionals knowledge and skills in all areas of banking, as well as to
reinforce a passion for the highest quality of customer service at all levels.
Training and development is essential to carry out the work and run the
organization smoothly.
Training and assessment can be as simple as asking an employee what theyd like
to be able to do better to as complex as developing as individualized training plan
for every employee. Learn how to select appropriate training need assessment
approaches and tools. Training needs assessment is tool that helps you to create
superior workforce. Training programs so are conducted continuously whenever
training need is assessed and trainers in this case are the immediate supervisors.
Employee Development
Human resources management, training and development is the field concerned
with organizational activity aimed at bettering the performance of individuals and
groups in organizational settings. It has been known by several names, including
employee development, human resource development, learning and development.
Employee development is the process which includes an ongoing and joint effort
of the employee and the organization and in which work is done to upgrade
employees knowledge, skills and abilities. MCB shows concerns for employee
development programs because it makes positive contributions to organizational
performance. A more highly skilled workforce cab accomplish more and a
supervisors group can accomplish more as employees gain in experience and
knowledge.
Employee Compensation & Benefits
In an addition to competitive base salaries and incentives opportunities, MCB also
offers comprehensive and competitive benefits to both full time and part time
employees. Compensation is one of the top issues which employee look at when
they want to join organization.


Performance Management
Setting Performance Standards & Expectations
Performance management is one of the most important part of supervisors job
whether working with long term employee or a problem employee. All staff
members need ongoing feedback about organization expectations and their
performance.
Standards of performance provided the basis against which the individual can be
efficiently appraised.
There are six conditions to consider when setting standards of performance:
Standards of performance are based on the job and not on the person doing
the job
Performance is achievable
Performance is understood by the employee performing the job
Performance is agreed upon by both the employee and supervisor
Performance is as specific and measureable as possible
Performance should be time oriented


How Organizational Performance get affected

Organizational Motivation
History
Mission
Culture
Incentives/
Rewards

External Environment

Administrative

Political

Social/Cultural

Economic

Stakeholder

Technological

Ecological
Organizational Capacity
Strategic Leadership
Structure
Human Resource
Financial Management
Infrastructure
Program Management
Process Management
Interorganizational
linkages

Organizational
Performance
Effectiveness
Efficiency
Relevance
Financial
Viability


Organizational Career Management

The career management process begins with setting goals / objectives. A relatively
specific goals / objective must be formulated. This task may be quiet difficult when
the individual lacks knowledge of career opportunities and / or is not fully aware of
their talents and abilities.

Job changes with the organization:
Promotion
In MCB, an increase in rank which may also be accompanied by a raise in pay,
benefits and responsibility, most people view promotions positively, as they
indicate that the individual being promoted is successful, valuable and useful in
workplace. People actively work towards promotion and its benefits.
Transfer
In MCB, the change of an employee from one position to another position with the
same salary range maximum is termed a transfer.
Demotion
A demotion is a reduction in an employees rank or job title with in the
organizational hierarchy of company, public service department or other body.
Serrations
There are four types of serration
Layoff
Termination
Resignation
Retirement


Layoff
When a company eliminated jobs regardless of how good the employees
performance is.
1: A risk reduction, made by investment bankers that minimize the potential down
side associated with a commitment to purchase and sell a stock issue unsubscribed
by stock holders holding rights.
2: When company faces financially difficulties.
This is method whereby an investment banking firm, who has committed to buying
up all unsubscribed shares during a right offering entering into the contract and
selling the shares in other words, they are hedging against any losses due time.
Termination
Termination of employees is the end of an employees duration with an
organization. Depending on the case, the decision may be made by the employee,
the employer or mutually agreed upon by both.
Resignation
A resignation is a personal decision to exit a position, though outside pressure
exists in many cases. A resignation is the formal act of giving up or quitting ones
office or position.
Retirement
Retirement is the point where a person stops employment completely, a person
may also semi-retire by reducing work hours.


Labor Management Relations
In MCB, labor management relations are based on mutual trust between labor and
management. Establishment of a relationship of mutual consent, mutual trust and
respect between labor and management, personnel management is conducted in
accordance with four basic principles:
1. Creating a workplace environment where employee can work with their trust in
the company.
2. Creating a mechanism for promoting constant and voluntary initiatives in
continuous improvement.
3. Fully committed and through human resource development.
4. Promoting teamwork aimed at pursuit of individual roles and optimization of
entire team
Recruitment
The step to step recruitment process followed by MCB is:
Job analysis is very important, as job analysis information is used in selecting and
recruiting, compensation, performance appraisal, training and in resolving other
issues which MCB faces to identify vacancy.
Prepare job description and person specification
Advertising the vacancy and sourcing focuses on activities to attract both
passive and active candidates.
Managing the Responses
Short listing
Arrange Interviews
Conducting interviews and decision making and common strategies include peer
interviews, panel interviews and the use of behaviorally-based interview
techniques.
Reporting includes surveying applicants and hiring managers collecting and
analyzing applicant flow data, reporting performance and processing metrics.


Marketing Strategies in MCB


Segmentation Strategy
Marketing consist of buyers, and buyers differs in one or more ways. Customers
are different in their need, wants, resources, locations, buying, attitude and buying
practices. MCB is also using segmentation strategy by dividing the whole market
into segments and search the right customer for their right product. Banks do
segment demographically and geographically. In demographical segmentation,
banks differentiate customers by their age, gender, education and in geographical
segmentation, customers are separate by their area. Through segmentation banks
divide large heterogeneous markets into smaller segments that can be reached more
effectively with products and services.
MCB segments its customers. For example, if the customer is near to retire, MCB
offers the MCB Retire Easy Plan for the persons who are retiring from their jobs.
Target Marketing Strategy
Target marketing means after segmentation of the area, now you have to target
your customers. You have to find out the right customer for the right product.
Develop measures for segment attractiveness, select target market.
MCB targets all types of customers in the country. Suppose MCB has branch in the
market area where all shop are around the bank so MCBs target is all shopkeeper
and for their better business allow them to open an current account ,single account,
joint account ,business account. MCB allows the customer to open account which
is suitable for him/her.
Product Planning, Development & Management
Product planning and development means develop a product according to your
customers needs, wants and demands and give features what the customer wants.
Every product is made by the head office of the MCB. Promotional activities
update the features and benefits about the product and this is settled by marketing
department of the MCB. First bank typically generate many ideas in order to find
out a few good ones. Major sources of idea include customer wants and demands.
When the idea generation is done then bank do idea screening.
Product Management
As you can understand by the name, product management means manage the
product. Bank has to manage its products whether they are entertaining the
customer or not. If not, then MCB should update their features to entertain the


customers. MCB provides better products to its customers, maintains the products
and also includes new features to the product if needed.
Positioning
Positioning is a process of fit the picture of your products, brands and organization
image in the customers mind. MCB has strong image in its customers mind by its
strong products, wide range of network in the Pakistan and across the country.
MCB also do advertise through newspapers, broachers, television, billboards,
hoarding and personal dealings. Positioning is how you want to show yourself in
front of customers. MCB do advertise and try to positioning to the customers
mind and also aware the customers about the product.
Pricing Strategy
Price is the amount of money which is charged for a product or service or the sum
of the value the consumers exchange for the benefits of having or using the product
or service. Price has been the major factor affecting the buyer/consumer choice.
This is also another method to help banks overall performance. Before setting
price the employee must look the relationship between price and demand. Pricing
strategy is the most important strategy because price can generate revenue of the
product and price tells the worth of the product. It is so difficult process to estimate
the mind of the customer that he will adapt this product with the offering pricing or
not. MCB charges different price with the different product and services .Suppose
you are availing the benefit of ATM card so you have to pay 500 per year and if
you are having any locker of small size, then you are paying 1500 to 1800 to the
banks as service charges.
Distribution Strategy
Distribution means movement of goods and services from producer to consumer.
So MCB has opened many branches all over the Pakistan to entertain its customers
and customers may have easy access to products and services of bank.
Management selects the area where should open a branch. Distributing is one of
the marketing mix strategies.MCB has many branches in the country and also
overseas.
Competitive Strategy
To be competitive, MCB 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, the bank pushed the products with full thrust.


The bank has also launched a running finance facility against mortgage of
property. Technology continued to play an important role in improving and
expanding product offerings. The bank introduced more IT based products to cater
to the changing lifestyles and needs of the customers. 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 Pakistan.
MCB also has 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, ATMs and MCB Call Centre, currently with six payment
partners. Similarly, the Bank also took initiatives to increase the usage of debit
facility.
To provide timely and updated information, MCB has also provided a new look to
its website which is user friendly and considerably easy to browse.
The Islamic banking initiative has been very successful in attracting new customer,
both individuals and companies. Similarly, those relationships which were
confined only to current account facility, have grown into stronger business
relationships. The branch network has been expanded to Lahore, Multan,
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.
Some wide-ranging new strategic initiatives have also been taken up which will be
important for the bank in years to come. A private company has been formed in
Hong Kong (fully owned subsidiary of MCB) in partnership with Standard
Chartered Bank, handling trade transactions of selected countries in the Asia-
Pacific region. It is projected to earn US$ 1 million in its first year of operations.
To increase its international presence, the bank has opened its representative office
in Dubai and entering into major strategic alliances with banks in the UAE
especially for marketing our consumer banking products to non-resident
Pakistanis. Furthermore, feasibility is also being carried out for entering other
international markets. MCBs operations are continued to be streamlined with
focus on rationalization of expenses, re-alignment of back-end processing to
increase productivity, enhancement of customer service standards, process
efficiency and controls.
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, expertise and reduce delivery cost.


Management of Human Resources has been one of our core focus areas. MCB is
committed towards attracting, retaining and motivating outstanding people.
Challenge for MCB is to provide an environment in which employees can better
realize their potential. The bank introduced reward for performance where high
potential officers were identified and rewarded accordingly. In view of the
competitive environment, the bank is focusing on performance and introducing a
more robust performance management system. MCB is also strongly committed to
training its staff at all levels.
The bank will also be implementing the full suite of the latest version of
SYMBOLS Version 8. MCB bank will run SYMBOLS E-Finance modules to
deliver personalized services to its customers over multiple delivery channels,
while SYMBOLS Enterprise Operations Center will serve as its core banking
transaction-processing engine. By implementing SYMBOLS, MCB bank aims to
raise the level of its customer service and its time to market in new product
offerings for its three core banking businesses in Corporate, Commercial and
Consumer banking retaining its market leadership as Pakistans progressive
bank.


Training Services of Marketing offered by MCB
MCB Communications offers professional service firms a variety of programs,
including:
Flexible Programs
We work with each client to design a program that reflects the firm's business
development priorities and marketing budget. A firm may start with individual
skills training for one or two professionals then decide to move forward with a
more comprehensive firm-wide marketing program. Whether we are working with
the firm, specific practice groups, or individual professionals, our objective is to
develop realistic strategies. We are always mindful of a client's unique culture and
work to create a marketing environment that fits.
Measuring Success
After hiring MCB, how will your firm measure the return on of its investment?
Success at business development does not happen overnight. So your firm has to
become a more serious and effective competitor. To be a serious and effective
competitor, your firm must identify potential opportunities for business
development and the right target audiences. Your firm must develop a strategic
marketing program and stay focused on your goals. Your firm must take steps to
differentiate itself from the competition. Your firm must communicate its message
effectively to clients and prospects. The marketplace will continue to evolve. And
your clients' expectations will continue to change. Working with MCB, you will
remain an active and focused participant in this process.
The Virtual Marketing Department
Not every professional firm requires an in-house marketing staff. But any serious
commitment to marketing requires an organized and on-going effort at business
development. MCB becomes your "virtual" marketing department. We work with
you to develop your firm's marketing priorities as well as strategies for specific
practice groups. We coordinate marketing meetings, help to develop and
implement marketing activities, client communication programs, and other on-
going initiatives as appropriate.

Skills Training for Professionals
Some of your best professionals may be uncomfortable with marketing. They may
not have taken advantage of their skills or the contacts they do have to reach their
full business development potential. We work with these professionals on an


individual basis so they begin to think differently about clients and business
development. We help them to create an individual business development plan and
support their efforts at implementing the plan.
Analysis of Existing Marketing Programs
Is your existing marketing program producing the results you want? Does your
firm even have a marketing plan or strategy? Are your practice groups competing
effectively? Are your marketing resources being used wisely? MCB brings an
objective and experienced perspective to analyze your current approach to
marketing. We provide recommendations for change and work closely with your
organization to develop a new strategic approach.
Client Satisfaction Programs
Client satisfaction is the key to repeat business, client retention, and increased
referrals. We provide small group workshops and lectures so that all your
professionals - senior partners or managers as well as junior associates -
understand the importance of client satisfaction and how to manage client
expectations. We work with you to design and implement client satisfaction
programs to distinguish your firm from the competition. We conduct client
satisfaction interviews of key clients to gather information critical to maintaining
and enhancing these important relationships.
Client Communication Programs
How well your firm communicates with both existing and prospective clients is
critical to your marketing success. We assist firms in developing an effective client
communication program. There are numerous elements to an effective program,
including keeping your clients informed about developments that may have an
impact on their business or personal goals. It is also important for individual
professionals as well as the firm to build a portfolio of marketing materials which
may include published by-lined articles.


SWOT Analysis of MCB


Strengths
MCB is the first Pakistani privatized bank and because of its quality
management, marketing, innovation in products and services is performing
well in financial market.
MCB has established a good reputation in the banking market.
Strict adherence with the banking procedures requirements, SBPs
prudential regulation requirements and its SROs and international banking
requirement as well as to its own set policies.
MCB has strong and positive image in customers mind because of its
attractive products.
Better focus on customer services and customization.
Flexibility with the changing environment.
Induction of the highly qualified professionals to change overall set up.
MCB has very stable deposit base.
MCB is largest private bank in Pakistan with around 1000 branches, which
cover almost every part of Pakistan.
The bank enjoys competitive advantage over other banks in Pakistan.
The bank enjoys competitive profitability in the industry.
MCB has captured majority of potential customers in Pakistan.
MCB has the accounts of big organizations like OGDCL, PTCL, EFU, PTC
etc.
MCB is Successive and Market oriented.
MCB investing huge sums on HR development and training.
Customer default rate is lower as compared to other banks.
MCB has the largest ATM network in the country.
Meeting the challenges of latest Technology by introducing Smart card
remit express, mobile banking etc.
Laying foundation on sound basis; recently for this, they met with the
ORACLE representative of South Asia, to purchase ORACLE software for
their banking system and transform its environment in such a way so as to
come in line with those of other international banks.
Establishment of TFC: Centralized import and export center of MCB in one
special circle taking this extensive burden from branches, whereas no other
bank has done this so far.


Maintaining an Excessive Earning Acceleration, this is expected to result in
substantial value enhancement for investors.
EUROMONEY Awards of Best Bank in Pakistan for best bank in Pakistan,
plus the accolade of best domestic band in Pakistan.
Extensive Management Restructuring to translate into bottom line
improvement for going forward. This includes induction of professionals in
strategic business areas, shedding surplus staff and shutting down loss
making low potential branches. From 1996 onwards some 350 Branches
were closed down & releasing staff of approx 4600 with golden handshake.
Larger Market Share: MCB accounts for 10.4% of total assets, 10.0% of
deposits and 11% of loans in the banking system. So it has a clear edge
over smaller banks.
Striving for income: New Team after massive restructuring is looking to
strive for greater operating income. Since 1996 bank has been able to gain
some net positive Profit After Tax amount consistently and will be aiming
to do so in near future.
Perhaps the only large bank in Pakistan to have a formal electronic banking
research cell that is exploring the technical requirements and market size
Potential of Internet Banking.
Promotion Effectiveness: MCB has developed a very encouraging
promotional principle which create great loyalty and motivation in
employees towards the bank.
Team based Approach: MCB is team of loyal and faithful experts who keep
quality of services done, outstanding performance and presentation.
Projects are accomplished through members connectivity working as team.
Continuous Improvement: MCB bank held diverse training programs which
enable the members or staff upgrade their knowledge. MCB has taken


initiative to introduced new schemes regarding its product and services. In
this way, it continuously made improvement in its employees and services.
Employee Respect and Dignity: Every employee in the organization is
given due respect and honor irrespective of its status and level. Employees
feel proud to be a part of the MCB.
Quest for Quality: MCB bank always try to give its customers quality
product and services to keep them permanent client of the bank. It always
uses different channels to improve the quality.
Weaknesses
The majority of people are not well aware about the products of MCB.
Therefore it should advertise extensively especially RTC and Master Cards.
A behavior has been noted that bank tries to feel at ease with good looking,
rich and educated people and the poor looking customers feel some bit
strange in the environment of the bank. The bank employees should try to
accommodate behaviorally all type of customers.
In MCB there is lack of specialized skills because of job rotation policy of
human resource department. The bank should concentrate upon increasing
its abilities on individual service basis.
Mismanagement of time is another big mistake in MCB branches, the bank
official time of closing is 5:30pm but due mismanaging of time allocation
and work the staff is normally on their seats till 7:00 or 8:00 clock.
Process of development is bit slow due to its conservative approach.
Never prefer to be a leader and prefer to be a follower of others.
Slow improvement and acceptance of technological changes.
More emphasis on deposit accumulation and less on their mobilization.
Decision making process is very slow.
It is not having greater no. of branches abroad.
Though ATM network is the largest in Pakistan, still some potential areas
dont have the ATM.
MCB RTC is useable only in Pakistan.
Some management positrons needed are not professional.
Although most of the branches are computerized now, still some important
branches dont have computers.
Low motivational level; non-aggressive marketing.
Employees dissatisfaction due to ill treatment and improper reward
system.

Favoritism and Nepotism in recruitment.


Interest rate is inadequate.
Extensive Management Restructuring though beneficial has some negative
impacts on the existing performance of work. Such large scale restructuring
results in too much load on single person plus the fear of being fired from
the job at any moment.
It is extremely condemnable that sometime a circular is kept clandestine
and not disclose to the staff by the branch managers which is in line with
their needs due to some inexplicit ulterior motives.
Lack of Job Rotation: Job rotation has not been given due consideration
and employees get bored due to monotony.
No Conspicuous rise in Staff Salary.
Management apart from lack of other employees benefit funds, nothing is
done to enhance the staff salary to be used as basic motivational factors in
an effort to cut down the administrative cost by the management.

Opportunities

Greater potential and opportunities for Credit Division if Liberal Policies
being adopted.
MCB can grab more market share for its RTCs, remittances and forex
department through effective promotional and liberal policies.
Inclusion of highly qualified professional can change the whole scenario
and position of the bank if they have given the due liberty in performing
their duties.
Adoption of information technology will improve the customer services.
More mobilization of accumulated deposit is possible through innovative
financing to Agro Based Sector.
Leasing sector is growing in Pakistan for the last two to three years which
provides opportunity to MCB to go ahead in this area as well.
MCB is providing Consumer Finances at comparatively lower rates which
paves a way to grab more customers
Financing to small/medium cottage industries will definitely increase its
advances and profitability as well.


Islamic Trading Based Banking can enhance the business of the bank.
Targeting of Hundi / Hawalla through networking and IT potential of
MCB.
Profitability is expected to strengthen despite decline in interest rate. The
drop in interest rates is expected to spur the private sector credit growth in
an effort to kick-start the dormant economy serving as impetus for
productivity activity in economy; which is likely to compensate for lower
interest margins that result from less than proportionate drop in deposit
rates.
Banking sector fundamentals improving; on the back of economic
stabilization, improved monetary and foreign exchange reserves
management by the central bank and drive against loan defaulters.
MCB with its large branch network and huge diversified clientele is placed
to benefit from lower NPLs, a new dynamic and cost conscious
management, and greater credit demand on the back of governments
conscious initiative towards a deflationary monetary policy.
MCB to show growth in value creation.
More Focus on consumer banking activities.
Strong earnings momentum expected in future, through focus on loan book
growth, efficient utilization of idle cash and declining NPL.
Deposit expected to grow in future: The Governments decision to lower
interest rates has challenged the banking sector, including MCB, on the
deposit mobilization front. At the same, however, MCBs large branch
network coupled with its excellent market standing compared with other
banks offering similar returns on deposits is expected to retain even bolster
its deposit base in future at the expense of less efficient public Sector
competitors.


Threats
Change in government policies has affected the banking business. Still
banks have to wait to get permission of state bank. The freezing of foreign
currency accounts is a vital example of letting people not to trust on banks.
The Competition has become severe by the entrants of so many banks, So
to exist one will have to prove himself in its services through excellent
management and will have to satisfy its shareholders. Otherwise he will be
out the market.
Employees unions have been allowed if not managed properly can affect
performance.
The decrease purchasing power of consumer in the current economic
situation of the country affecting the business activity speed too much and
the result is the low investment from the investors in new projects can
create problem for the bank because it is working a lot in trade.
Introduction of credit marketing by local and foreign banks is badly
affecting the mobilization of the MCBs deposits due to the non presence of
such department in it.
Other private commercial bank with sound profitability is also a threat to
MCB e.g. UBL, Al falah, HBL etc.
For the last of many years, Pakistan is facing economic and political
instability which is a big threat.
Afghan war and Iraq war has a deep effect on the economy of Pakistan,
which may affect MCB.
Foreign banks are flourishing in field of consumer financing.
People dont prefer banking culture. They mostly prefer cash transactions.
MCB since 1996 is performing well in all most every department at
national level particularly. However if there is some competition that MCB
may expect to face come from the four nationalized commercial banks,
which compete with the MCB in terms of deposit mobilization at retail
level.
Other banks working on the same phenomena seeking for proficient and
efficient staff is expected to enamor qualified and experienced employees


of organization by offering some brilliant incentives in the form of high
salary and other benevolent funds and this thing may also attract existing
efficient staff of MCB. To some extent they seem to be effective in their
efforts.



PEST Analysis of MCB


Political
Employment practices are expected to change.
Unions, Associations are being allowed to work effectively which can
affect the performance of the company both positively or negatively.
Political interference regarding policies is expected to increase as current
government is in race of power gain.
Due to lack of confidence on government investor is reluctant so
mobilization of funds is going to decrease.

Economical
Inflation is very high which will decrease the demand as purchasing power
is decreasing.
Staff cost is increasing as basic wage rate has increased and inflation has
compelled to will compel to increase salaries.
Operating costs are increasing due to inflation.
Interest rate is increasing so loan taking has decreased.
Value of rupee is decreasing which is pressurizing the economy.

Social and Cultural
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.
Declining work ethics is also our problem which is mainly due to poverty
and lack of training.
Inadequate Accountability, lack of good governance and lack of good
infrastructure helps creditor to cheat and heavy bad debts occur. Same
situation is hoped to prevail.
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.


Technological
MCB has computerized its most of the branches but still some are manual
there is need to computerized otherwise customers will get bad image.
Now a days computerized system is used by banks which is very effective.
But MCB will have to improve its computerized technology as some fake
transactions occur by ATM.
Shortage of electricity is a big problem,

Employees of each organization need IT training and organization has this
trend. MCB will have to follow it.



Internship Program
I worked as an internee in MCB Qila Didar Singh Branch. Branch code is 1474.
Duration of my internship was from July 2, 2012 to August 10, 2012. During my
internship in the MCB limited, I really enjoyed to work with the staff of MCB. It
was almost impossible to work in all the departments within that limited time. But
on my request the staff of branch provided me the opportunity to work in the
different departments within that limited time for the sake of practical knowledge
and for providing me the great environment to work in different departments.
During the Internship, I worked in various operations as general banking including
cash operation, clearing remittances, ATM, account opening procedure and
advances. Although my specialization subject is HRM. But there was no Human
Resource department in the branch in which I did internship. The recruitment
procedure is done in Head Office or Circle Office.

Personal Objectives of doing internship in MCB
To get some experience in working with well reputed organization.
To gain knowledge about the professional environment of the bank.
To know about the technology utilized in the banks.
To deal and mange with the situation of stress.
To know about the documentation process of employee of the bank
Purpose of internship
Internship is the capstone experience that provides me with hands on, real
world experience in a work setting.
Integrate and use my knowledge and skills from the classroom.
Discover where further competence is needed.
Take steps to gain that competence under educational supervision.
Become better acquainted with the types of work setting in which such
competence can be applied.


Qila Didar Singh Branch Hierarchy

General
Manager
Ammad Anwar
(B.M)
Mohsin Raza
(B.O.M)
Asghar
Cheema
(credit mgr)
Mr.Naeem
(Agri Mktg
Officer)
Miss.Noreen
(C.S.O)
Mr. Awais
(supervisor)
Mr.Riaz
(Remmitance
officer)
Mr.Mubashr
(Chief Teller)
Fakhar
Abbas
(Teller)


Tasks performed during internship
Providing all kinds of information to customers
The basic and foremost purpose of customer services officer is to provide
information to any existing or potential new customer regarding account opening
process, types of account offered in MCB, credit information or information
concerning various products and services offered by MCB.
There is no separate customer interaction department but there is a customer
service officer whose name is Miss Noreen Akhtar. So I sit with her to provide
information to customers.
Flooring
A greeter or working as a phone operator is also one of the fundamental duties of a
customer services officer. As a greeter, the customer services officer perform the
following duties and functions:
To receive calls from customers and forward them to the required personal
To make calls to people required by the bank employees
To make calls to the customers whose check books and ATM have been
arrived
To receive courier and make record of mail in DAK receive register.
To send mails to the customers after filling out the envelops
To make record of calls made
Being a greeter is very tough job, as a greeter has to deal with different types of
customers. They may have angry, rude behavior and it is the great responsibility
that the customer should not enter in the bank without any directional guidance
from the greeter. One has to remain alert at all times while serving as a greeter.
Filling Deposit Slips for Customers
The formal employees and internees often fill the deposit slips. Formal employees
at each level right from the cash officer to operation manager fill the deposit slips.
Often literate customers who have some know how about the banking slips or who
are the regular customers fills their slips by their own self. The work done by
customer relation officer and general banking officer are as follow:
Attend phone calls
Scanning of signature specimen (SS card) and its attachment
Handling of return cheque


Daily clearing
Update KYC
Filling deposit slips
Attend customer inquiries
Received ATM forms
Issued ATM cards
Made charges vouchers for TT/DD/PO
Worked on the seat of ACCT opening/cheque collection/opened accounts
Issued cheque books
Received check book requisitions
Other Learnings
I learned whole process of account opening of individuals practically. I
remained involved very much in practical activities of account opening.
Miss Noreen, whose duty was account opening would remain very busy as
number of customers coming for account opening and getting information
was high. So I assisted her.
I havent issued any cheque book personally, but the procedure is very
simple for issuance. I observed the process.
I filled many applications form for remittances. I prepared remittance slips
and learned to apply tests on TT and MT.
I processed the Inward cheques for collection and clearance, and have also
prepared vouchers.
Every transaction which takes place recorded in the computer so all
transactions in different departments are forwarded to account department.
I was not allowed to use software but I observed all the functions.
Mr. Asghar Cheema was credit officer who explained me the procedure of
advances. Mostly work is done through computer. I observed how the
application is processed. I think it sufficient to know the procedure.
In cash department I observed the process of deposits, filled deposit slips,
and learned how the cash registers are maintained.


Detailed Description of Work
TIME PERIOD DEPARTMENTS DUTIES PERFORMED
Week 1 and 2 Customer services Doing flooring and greet
customers
Make entry in DAK registered
Fill ATM transaction dispute form
for the customers
Handling phone calls
Taking messages over the phone
Fill statement application form for
the customers
Do daily branch assessment and
maintain a file for it
Do daily telephonic audit of
employees and maintain a record
for it
Filling of the house of the daily
checklist and house keeping
Write customers complains at the
portal and make sure that these
complains are resolved within
turnaround time
Made daily deposit report at the
end of each day and send to the
are head
Made daily sales team progress
report and send to the are head at
the end of each day
Learn about over the phone
customer services
Week 3 Operations Prepare fuel assignment of branch
by following two patterns
Learn how to make entry in
cheque stop payment register and
observe the process
Observe the process of making
entry in ATM fact sheet
Learning bank operation guideline
Observing processing duties
performed
Learn how to complete account
opening form
Checking new account form and


make entry in account opening
register
Make entry in TDR register
Learn how to fill know your
customer form
Do the correction of account snd
opening forms
Week 4 Remittances/ Forex Learn the concept of inward and
outward clearing
Learn the concept of within city or
intercity clearing as well as CC
clearing register and return
clearing register
cheque book register and ATM
register
Learn how to issue cheque book
and ATM
Observe the cheque transfer
process
Observe the foreign remittance
process
Week 5 Cash department Learn how to fill deposit slip
Learning the cash limits
Learning cheque cashing details
Withdrawals and deposit limits
Opening and closing cash count
Deposit gold customers money
Help in separating solid currency
at the end of the day


Week 6 Sales calls Sales calls with personal banking
advisor
Learning different techniques
regarding sales
Observing the new account forms
To Make calls to the customers
regarding C-Z 50 form (zakat )
To make calls to the customers
regarding dormant account
Observing personal clients
handling
Learn about different products
offered by the MCB

Benefits of doing Internship
During my internship I dealt with many customers and employees, this was a great
experience to learn
How to deal with customers
How to work under pressure i.e. in rush hours.
How to manage an office.
My communication skills were improved.
I observed some signs of mismanagement which I think can be removed if
branch manager take more responsibility.
I observed the practical application of many accounting concepts.


Future Outlook of MCB

The effectiveness of the economic reforms was the main concern in 2011 as
the country is highly volatile with respect to the systematic risks.
The pace of the growth of loan infection is likely to reduce in the coming
quarters. The maintenance of the discount rates is the key factor to curtail
the inflationary pressure on the cost of credit. Infrastructural developments,
control on war on terror, power shortage mitigation, encouraging the
private sector, trim in the political instability and the sustainability of the
tax reforms in order to meet the international debt are the likely factors of
focus in the upcoming year.
We are hopeful, given the increasing foreign reserves and reviving investor
confidence, the economic conditions will be comfortably better than
previous years.
From the Banks perspective, the focus will be provision of value added
services via operational expansion and technological improvements.
Effectiveness of the Banks risk management systems, capitalization on low
cost liability franchise, disciplined expense growth, expansion of our
capital base and strengthened compliance culture are primary factors in
depicting continued strong financial soundness.
Effective leadership with a clear vision is the key element of long term
sustainability leading to highest levels of employee satisfaction and our aim
is to build cohesive teams and strong ethical standards.
We will strive to enhance our domestic as well as global image to take the
Bank from strong to stronger. Corporate Awards and Recognition
The Annual Report of the Bank for the year 2009 won: Accountants of
Pakistan and the Institute of Cost and Management Accountants of Pakistan
Certificate of Merit Award in the Banking Sector subject to Prudential
Supervision category by the South Asia Federation of Accountants
(SAFA), an APEC body of the SAARC region.
MCB is also listed as one of the top 25 listed companies acknowledged by
the Karachi Stock Exchange.


Recommendations and Suggestions
From the quantum of the profit and its financial data, it can easily judged that after
privatization Muslim Commercial Bank is performing very well. Its deposits are
growing day-by-day and so its profitability. The controlling body is responsible for
the productive performance of the bank.
Following are my observations and suggestion to improve the efficiency for the
development of the bank.
Increase in Profits
People can be motivated to save money by offering the deposit through various
investment schemes. The rate of profit should increase 1% or 2 % it would be
profitable step for bank.
Increase Salaries
MCB is making good profits but giving less pay to their employees as compared to
their competitors. So their salaries should be increased.

Change the Nature of Work

Most of the bank employees are sticking to one seat only with the result that they
become master of one particular job and loose their grip on other banking
operation. In my opinion all the employees should have regular job experience all
out-look towards banking. Their promotion policy should be adjusted accordingly.
Training
Every year some of the employees should be sent for training to other countries
and employees from other branches should be brought here. Some more reading
material should be provided the purpose should be to educate the employees with
the advance studies in their field. The employee should be provided the
opportunities to attend and participate in seminars and lectures on banking.
Incentive to Employees
Bank should give some more incentive to its employees in order to remove the
conflict between lower and higher officers and should try to improve the working
condition of the bank. Such system should be designed that every employee who
has some problems with his officers can communicate to the higher management
and some steps must be taken to improve that.


Performance and Reward
Smart, educated, skilled, well spoken and well versed staff personals should be
rewarded and appreciated, while on the other hand lazy, lethargic, heard, rough-
dealers and ill mannered must be warned and penalized but this all should be on
merit and considering the policy of honesty is the best policy and not due to some
personal liking, disliking prejudice and patrimonial. It is therefore suggested
certain schemes and checks may be introduced in banks to increase efficiency
through reward and punishment system.
Promotion and Advertising
Bank must let potential customers know that all attractions for banking exist. This
is done by advertising on television and obtaining press coverage, in conjunction
with direct mail, window displays, leaflet in branches and in appropriate other
locations (such as hotels, shops, etc.) and including leaflets in statement of
accounts sent to existing customers in the hope that they will tell potential
customers about the services provided by our bank.
More Focus on Salary Accounts
Logic leads to promotional campaign through employers who are customers of the
banks and their employees are paid in cash. Such business accounts should be
encouraged to open the accounts of their employees with the banks. It might be
worth offering free banking for a specific period to new accounts or simply
publicizing the services available by means of posters at the employers premises.
Internship Facilities
The period of internship should be divided in to the number of department of the
Muslim Commercial Bank Ltd. The internee should be given timetable mentioning
the number of days he/she has to work at different places in the bank. On the first 4
days in each department internee should be given a lecture the officer of the
department concerned about working of the department.
Some other Recommendations for MCB
MCB should try to in range the current ratio for getting short term financial
strength.
MCB should measure the liquidity risk through its designed framework
time to time to reduce the liquidity risk position of the bank
MCB should control its Administrative expenses it has been rose as
compare to previous years


The strength of the bank is enough strong, but there is need to increase to
deposit to compete the market.
In the light of above suggestion, MCB should increase its branch network
to get maximum deposit and increase its sales.
MCB should encourage the employee through offering them effective
performance appraisal system
MCB should hire a skilled person highly professional staff for bank
efficiency


Conclusion
As I have studied and analyzed MCB Bank Ltd I found out that this a good
bank as its working, management is concerned.
First of all the reason of this is that there is no directive style in the
management of MCB and which shows that there is decentralization in the
Bank and every branch manager can take decision according to the
situation.
MCB is providing their customers with wide range of services including online
banking, virtual banking and some of their new products in the pipeline;
include ATM network etc shows that MCB Bank is taking good care of
their customers.
MCB Bank made heavy investments, towards enhancing its capabilities in
the area of automation and technology.
MCB is well positioned to meet client needs, with improved competitive
advantage.
During my stay at Bank, MCB I have observed that some people are over
burdened and some people used to sit idle for most of their working hours.
There should be work load analysis for all employees and work load should
be distributed respectively keeping in view the capacities and capabilities
of employees. The bank should improve its online transaction system and
intranet. As system failure is encountered often.
New marketing strategies should be developed to attract customers. A
research cell should continuously try to gather information about the
present action of its competitors and their expected future actions. So in this
way more effective strategies can be formulated.
The performance reward linkages should be made strong as it said, A
happy employee deliver more than he receive from organization. MCB
Bank limited should become specific about its competitors, so that it can
understand who its competitor is in the first degree and who is in the
second degree. Then the first-degree competitors should be watched
closely.
MCB should continuously conduct its financial analysis and compare it
with that of other banks. In this way consciousness about the banks
financial matters will tend to improve.
More training and development programs should be launched in order to
clear the concepts of employees about new products and banking
techniques.
And from the financial records when I conduct comparative analysis with
other banks I found that it is somewhat better than others and from the
analysis of previous year I concluded that it is improving and in 2011.
Profits are more than the previous year. So I can say that MCB Bank
is performing very well.


Bibliography
Websites:
Introduction and Products of MCB. MCB Bank Limited. Retrieved from
http://www.oppapers.com/ essays/Pakistans-Banking-Sector-Industry on
4/8/2012 at 11:30 am
History of MCB. MCB Bank Limited. Retrieved from
http://www.mcb.com.pk/mcb/about_mcb.asp on 5/8/2012 at 10:00 am
Vision and Mission Statement of MCB. MCB Bank Limited. Retrieved from
http://www.mcb.com.pk/mcb/mission-vision.asp on 5/8/2012 at 2:00pm
Human Resource management system Wikipedia Retrieved from
http://en.wikipedia.org/wiki/Human_resource_management_system on 7/8/2012 at
1:00am.
Financial Data and Reports of MCB. MCB Bank Limited. Retrieved from
http://www.mcb.com.pk/irifn_data_rep.asp
Other data retrieved from these websites
Analysis/181995
http://en.wikipedia.org/ wiki/Economy_of_Pakistan


References & Sources
Books:
Marc Effron, Robert Gandossy, & Marshall Goldsmith (2003). Human Resource
in the 21
st
Century. New York: John Wiley & Sons.
(2011)Virtual University MGT 501 Human resources management
Siddiqui A.H. (1983 P.nos. 16-22) Practice & Law of banking in Pakistan.
Meenai S.A (1984) Money & Banking.
Prof. Dr. Khawaja Amjad Saeed (Financial Institution in Pakistan)
Koontz. (Management. 8" edition page:8)

Donnelley, Gibson, Ivanceivich (Fundamentals of Management)

Extra sources:
MCB Annual Report 2011
Information of HR department Management
Colleagues
Branch Manager
Operational Manager
CSO Officer
Different Hand Books
MCB Broachers/ Manuals
MCB Accounts Opening Form
MCB Specimen Signature Card
MCB Cheque book Requisition


MCB Fund Transfer Application
MCB Cheque Return Memo
MCB Visa Debit Card-Application form
MCB Debit Vouchers
MCB Credit Vouchers
MCB Deposit Slip
MCB Cheque Stop Payment
MCB ATM Transaction Dispute Form


Glossary
A
ATM Automatic Teller Machine.
Advice A banks written acknowledgement of a
Transaction.

B
Bill of lading A document issued to an exporter by a common
career transporting merchandise. It serves of a
receipt, a contract, and a document of title.
BTA Basic Tijarat Account

C
Commercial Banks An authorized institution which performs four
functions. It accepts deposits, makes loan,
arranges payment of bills and provide a number
of customer services.

D
DD Demand Draft
Dividend Part of companys profit paid to shareholders


E
Equity Total assets minus total liabilities
Earning per share The part of companys profit allocates to each
outstanding share of common stock

L
Letter of Authority A written document to allow bank to deposit or
withdrawn from an account

M
Mark up The charge you pay if you borrow money or you get if you
invest it.
Mortgage Mortgage is charge on immovable Property to secure the
finance
MT Mail Transfer

P
PO Pay Order
Pledge Pledge is the bailment of goods for security. In pledge
goods are in possession of bank.
Profitability Ratio The ratio used to measure the ability of a company to
generate profit.


T
TT Telegraphic transfer

W
Working Capital Stock plus debtor minus short term creditors

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University of the Punjab, Gujranwala Campus 1

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