1.1 History and Background

MCB BANK LTD.
1.1 HISTORY AND BACKGROUND
1.1.2 INTRODUCTION
Over the years MCB has developed strong relationships with its customers by
understanding their needs and treating them with respect, dignity and importance. The
driving force behind its commitment and services is its focus on customers, ensuring that
it not only meets, but also exceeds their expectation.
They strive to achieve excellence by ensuring that every moment of their time is spent in
adding value, making sure that they do things right, first time, and every time. With the
quest of quality MCB has always taken initiatives bringing banking into a new arena;
from cash to the convenience of plastic; from branch banking to internet banking and
from face to face customer interaction to online accessibility.
It encourages diversity and treats each of its employees with fairness. It gives
constructive feedback for their continuous development and seeks suggestion from all
employees for further improvement. It ensures that quality performance is acknowledged
and rewarded and exercise utmost responsibility in decision making with regards to its
employees. Integrity of its employees is the strength of its performance.
MCB believe in achieving their mission and vision by working together as a combine
group. It treats its colleague as its internal customer and ensures that the requirements of
internal customer focus are always met. Equipped with in-depth product knowledge and
recognizing the strengths in each individual, It strive for optimum-results from its coworkers and bringing out peak performances by working towards common goals and
objectives in today's dynamic banking environment.
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MCB BANK LTD.
MCB has an edge over other local banks, as it was the first privatized bank. The State
Bank of Pakistan has restricted the number of branches that can be opened by foreign
banks, an advantage that MCB capitalizes because of its extensive branch network.
Ten years after privatization, MCB is now in a consolidation stage designed to lock in the
gains made in recent years and prepare the groundwork for future growth. The bank has
restructured its asset portfolio and rationalized the cost structure in order to remain a low
cost producer.
MCB now focuses on three core businesses namely Corporate, Commercial and
Consumer Banking. Corporate clientele includes public sector companies as well as large
local and multi national concerns. MCB is also catering to the growing middle class by
providing new asset and liability products. The Bank provides 24 hour banking
convenience with the largest ATM network in Pakistan covering 30 cities with over 225
ATM locations. The Banks Rupee Traveler Cheques have been leaders for the past six
years and have recently launched their Gift Cheques Scheme.
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MCB BANK LTD.
MCB Bank Limited (Formerly Muslim Commercial Bank Limited) has a solid
foundation of over 50 years in Pakistan, with a network of over 900 branches, over 750 of
which are Automated Branches, over 225 MCB ATMs in 41 cities nationwide and a
network of over 12 banks on the MNET ATM Switch.
MCB has become the only bank to receive the Euromoney 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".
MCB offers a wide range of financial products and advice for Personal and Corporate
Customers. You can also apply on-line for many of our Online Services. Customers can
access their accounts using our simple and convenient MCB Virtual Internet Banking
services.
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MCB BANK LTD.
1.1.3 HISTORIAL BACKGROUND
Before separation of Indo Pak, the need for more Muslim banks was felt. And Muslims
having strong financial capacity were thinking to invest in this sector as well. This was
the idea, which paved the way for setting up Muslim Commercial Bank Ltd. known as
MCB. This was the third Muslim bank in the subcontinent.
This bank was incorporated under companies act 1913 on 9th July 1947 at Calcutta. But
due to changing scenario of the region, the certificate of incorporation was issued on 17 th
August 1948 with a delay of almost 1-year; the certificate was issued at Chitagong. The
first Head office of the company was established at Dacca and Mr. GM Adamjee was
appointed its first chairman. It was incorporated with an authorized capital of RS.15
million.
After some time the registered office of the company was shifted to Karachi on August
23rd, 1956 through a special resolution, recently the Head office of MCB has been
transferred to Islamabad in July 1999 and Head office is termed as Principal Office.
This institute was nationalized with other on January 1st, 1974. At that time it had 506
branches and deposits amounting to Rs.1.640 m. Although MCB has a reputation of a
conservative bank but nationalization also left its effects on this institute as well and by
end of year 1991 in which it was privatized the total number of branches were 1.287 and
deposits amounting to as high as Rs.35,029 m.
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MCB BANK LTD.
When privatization policy was announced in 1990, MCB was the first to be privatized
upon recommendations of World Bank and IMF. The reason for this choice was the better
profitability condition of the organization and less risky credit portfolio which made'' it a
good choice for investors. On April 8th, 1991, the management control was handed over
to National Group (the highest bidders). Initially only 26% of shares were sold to private
sector at RS. 56 per share
1.1.3 REVOLUTIONS IN MCB

Incorporated in Calcutta, India on 9th July 1947
First chairman Mr. G.M Adamjee
Head office was shifted to Dhaka in August 1948
Head office was shifted to Karachi in august 1956
Nationalized on 1st January 1947
Privatized on 8th April 1991
Fist chairman after privatization Mr. Mian Muhammad Mansha
Head office transferred to Islamabad 1991.
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MCB BANK LTD.
1.1.4 MISSION STATEMENT

To become the preferred provider of quality financial services in the country with
profitability and responsibility and to be the best place to work.
1.1.5 THE BUSINESS

MCB is in its over 50 years of operation. It has a network of over 900 branches all over
the country with business establishments in Sri Lanka and Bahrain. The branch break-up
province wise is Punjab (57%), Sindh (21%), NWFP (19%) and Baluchistan (3%)
respectively.
1.1.6 MCB PHILOSOPHY
MCB Bank knows the best to deal with its customers and thus has a customer oriented
philosophy. The MAB philosophy in their words is described below
For us, you are not just a set of numbers; you are a valued customer whom we know by
name. This helps us serve you exactly the way you want us to thats the difference! We
offer effective solutions derived from our personal knowledge of all your banking
requirements which are met when we meet youby name.
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MCB BANK LTD.
1.1.7 MARKET STANDING

MCB has an edge over other local banks, as it was the first privatized bank. The State
Bank of Pakistan has restricted the number of branches that can be opened by foreign
banks, an advantage that MCB capitalizes because of its extensive branch network.
Ten years after privatization, MCB is now in a consolidation stage designed to lock in the
gains made in recent years and prepare the groundwork for future growth. The bank has
restructured its asset portfolio and rationalized the cost structure in order to remain a low
cost producer.
MCB now focuses on three core businesses namely Corporate, Commercial and
Consumer Banking. Corporate clientele includes public sector companies as well as large
local and multi national concerns. MCB is also catering to the growing middle class by
providing new asset and liability products. The Bank provides 24 hour banking
convenience with the largest ATM network in Pakistan covering 41 cities with over 225
ATM locations. The Banks Rupee Traveler Cheques have been market leaders for the
past six years and have recently launched their Gift Cheques Scheme.
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".
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MCB BANK LTD.
1.1.8 AWARDS
MCB bank Ltd. has also been awarded by the Euromoney Awards and the Asia Money
Awards. The prestigious Euromoney award has been given to MCB for five times in the
past six years.
EUROMONEY AWARD
BEST BANK IN PAKISTAN 2005

MCB is the only bank to receive the Euromoney Award for Excellence for the fifth time
in the last six years.
BEST BANK IN PAKISTAN AWARD 2004

In a continuous winning streak, MCB took pride in 2004 by receiving the Euromoney
prestigious award of excellence for being the best bank in Pakistan for the fourth time in
the last five years.

MCB won the Euromoney Award 2003 for the Best Bank in Pakistan for the year 2003
due to its quality, integrity and dedication, striving to achieve collective success by
understanding changing trends and assimilating into diverse cultures.
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MCB BANK LTD.

MCB received the Best Bank in Pakistan award for the year 2002 at the Euromoney
Awards 2002.
BEST DOMESTIC BANK AWARD 2000

MCB was awarded the Euromoney Award 2000 for the Best Domestic Bank in Pakistan
for the year 2000.
ASIA MONEY AWARDS
THE BEST DOMESTIC COMMERCIAL BANK AWARD 2005

MCB received the Asia Money Award for the Best Domestic Bank Award in the year
2005.
THE BEST DOMESTIC COMMERCIAL BANK AWARD 2004

MCB has a distinction of winning the Asia Money 2004 award for being the Best
Domestic Commercial Bank in Pakistan.
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MCB BANK LTD.
1.1.8 PRESS RELEASES

MCB has always been the favorite for press and what the press states about MCB and its
awards is mentioned below
EUROMONEY AWARDS
London, July 14, 2005: MCB has again received the esteemed Euromoney Award for the
Best bank in Pakistan. It is the only bank to receive the Euromoney Award for
Excellence for the fifth time in the last six years.
The prestigious banking award was conferred on the Bank in a ceremony held in London,
which was attended by the distinguished bankers representing leading banks and financial
institutions of the world. Mr. Mohammad Aftab Manzoor, President and Chief Executive
of MCB received the award.
MCB continues to expand its retail and corporate banking with diversified products and
services portfolio. The Bank continuously endeavors to achieve leadership in innovation
and customer convenience. Its emphasis has always been on multi delivery channels.
Along with its easily accessible branches, the bank provides the largest network of ATMs
and the most comprehensive Internet banking solution. The Bank is also the largest issuer
of plastic with the largest share in ATM and Debit transactions in the county.
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MCB BANK LTD.
The Bank has made strong inroads in the corporate banking arena, having closed some
large deals and a number of large transactions including advisory business besides
actively participating in various syndicated arrangements. It has also provided innovative
cash management solutions and structured financing activities to a large number of top
corporations of the country. In the low interest rate environment of last year, MCB
introduced various initiatives to increase its fee-based income and has successfully
managed to show growth in its bottom line. It has ended the monopoly of select foreign
banks in the areas of hedging and derivative products by offering innovative solutions to
the corporate clients. Parallel to the traditional mode of banking, MCB has also been
expanding its Islamic Banking operations across the country. MCB has also been active
in debt and equity markets, which also contributed a significant share in its profit growth.
The consistency with which the Bank has been receiving international accolades makes
MCB truly the Best Bank in Pakistan.
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MCB BANK LTD.
ASIA MONEY AWARDS
May 2005: MCB has once again received the award of the Best Domestic Commercial
Bank in Pakistan from Asia Money. This is the second consecutive year that the bank
has earned this prestigious award for its leadership position in the banking industry of the
country.
The award has been conferred up on the Bank for its consistent growth and staying ahead
of the increasing competition. Asia Money commends the Banks strategy of focusing on
fee based income by expanding its investment banking and cash management services at
the time of low interest rates during the past year to increase its revenue and profitability.
It further elaborates that the Bank has introduced several new derivative and hedging
products for its corporate clients, which were previously offered only by a few foreign
banks. It added that now Pakistans top corporate depends on MCB to provide first rate
syndicated lending services.
MCB is the only bank that has received two Asia Money Awards for the best domestic
bank in Pakistan besides four Euromoney Awards in the last five years for The Best
Bank in Pakistan in recognition of its consistent and enviable performance.
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MCB BANK LTD.
NORMAL OPERATIONS OF THE BANK
TIMINGS
MCB Bank follows the rules stated by The State Bank of Pakistan.
Bank Timings
9 am to 5 pm
Public Dealing
9 am to 5 pm
Friday
9am to 1pm 3pm to 5pm
Saturday
9 am to 5pm
WORKING DAYS
Bank working days are six, from Monday to Saturday.
WORKING METHODS
MCB Bank follows computerized system they do follow manual system but to a very
small extent. They use a banking software program SYMBOLS to run the bank's
business operations.
The Bank is implementing the full suite of the latest version of SYMBOLS Version 8.
Muslim Commercial Bank runs SYMBOLS e-Finance modules to deliver personalized
services to its customers over multiple delivery channels, while SYMBOLS Enterprise
Operations Center serves as its core banking transaction processing engine.
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MCB BANK LTD.
COMPETITORS
National Bank of Pakistan

Bank Al falah
United Bank
Allied Bank of Pakistan
Citibank
Habib Bank Ltd.
Faysal Bank
Prime Commercial Bank
ABN Amro Bank
Saudi Pak Commercial Bank
Indus Bank
Soneri Bank
The Bank of Khyber
Bank of Punjab
Gulf Commercial Bank
Metropolitan Bank
Standard Chartered
Askari Bank
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MCB BANK LTD.
1.1.7 OBJECTIVES OF ORANIZATION

The following are the objectives of Muslim Commercial Bank Limited.
CREATING AND MANAGING VALUES

The first objective of Muslim Commercial Bank Limited is to create and mange the
values, which is one of the back bone of the objectives of any well organized and
managed organization.
HUMAN VALUES
The second objective of Muslim Commercial Bank is to take care of the Human capital
which is a necessary thing for the development and prosperity of any well established
organization.
BEST PLACE TO WORK

The third objective of Muslim Commercial Bank Limited is to make it a place which is
much feasible and comfortable for employees of the bank. The MCB is always conscious
in developing such place where employees of the bank feel easiness.
TECHNOLOGY
The forth objective of Muslim Commercial Bank Limited is to bring new and latest
technology in the operations of the bank. At MCB, technology has a direct relation with
your needs; it is a means for creating value and convenience for the customer. Over the
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MCB BANK LTD.
last few years MCB has invested heavily into strengthening its technology backbone.
Today it is leading the way in banking technology and setting new standards for the
banking industry; penetrating into the local market, listening to the needs of the people
and educating them of simple financial products and services that create both value and
convenience. MCBs strength lies in providing a technological base at the grass roots
level of the society with a challenge to educate and assimilate such systems across vast
cultural and economic backgrounds. With over 768 automated branches, 243 online
branches, over 151 MCB ATMs in 27 cities nationwide and a network of over 16 banks
on the MNET ATM switch, MCB continuously innovate new products and services that
harness technology for the customers benefit.
UNDERSTANDING RELATIONSHIPS
The fifth and very important objective of Muslim Commercial Bank Limited is to create
such an environment which is suitable for creating understanding and relationship
between the employees, thus going towards the way of development and prosperity. Over
the years, MCB has fostered strong bonds with its customers. Understands them; their
needs. They feel comfortable with MCB; its their bank; it responds to them; listens to
them; partners with them; grows with them. At MCB, banking is all about being there for
people, making a home in their hearts-continuously building relationships on mutual trust
and confidence. We understand that relationships are about expectations-our products and
services are based on your customers, expectations. Be it financing for personal or
business related needs, funds transfer and trade related facilities or need for different
types of deposit accounts, MCB offers you a variety of products and services customized
to satisfy your individual needs.
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MCB BANK LTD.
UNDERSTANDING CONVENIENCE
The next objective of Muslim Commercial Bank Limited is to make understanding a
convenient thing for the whole environment of the bank, for the purpose of boosting up
its values and prosperity in such a competitive environment. Convenience is what the
customer is looking for; and this is what we at MCB are
continuously striving to provide. Whether it is the 24 hours cash convenience of our ATM
network or the easy availability of financing requirements or simple opening of account,
MCB has tailored its products and services to make your life easier. MCB knows the
particular needs of its diverse customer base d continuously develop products and
services that fulfill these needs.
UNDERSTANDING RELIABILITY
The last but not least objective of Muslim Commercial Bank Limited is to make an
environment which have an understanding of reliability in the whole structure of the
bank. With a strong financial base, a promising team and the right resources, MCB has
proved to be a reliable partner indeed. MCB understands the special needs of the
business, trading and agricultural sectors. Strategically located branches in small towns
and cities provide warm services and advice to the small businessmen and local traders.
MCB speaks their language; it understands their needs and provides tangible results. By
responding in a timely manner with a flexible approach, MCB provides its clients with
the reliable financial service and support they require to successfully achieve their
business objectives. With a solid foundation of over 50 years in Pakistan and having
recently completed 10 successful years of privatization, MCB is strongly positioned to
lead the banking sector in the new millennium. You can feel safe in our hands.
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MCB BANK LTD.
MANAGEMENT SYSTEM
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MCB BANK LTD.
2.1 MANAGEMENT SYSTEM
MANAGEMENT OF MCB BANK LTD

Tariq Rafi
Director
Sheikh Mukhtar Ahmed
Director
Mohammad Arshad
Director
Shehzad Saleem
Director
Raza Mansha
Director
Sarmad Amin
Director
Mian Umer Mansha
Director
AUDIT COMMITTEE
Mian Mohammad Mansha
Chairman
Sheikh Mukhtar Ahmed
Member
Shehzad Saleem
Member
CHIEF FINANCIAL OFFICER

Ali Amin
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MCB BANK LTD.
COMPANY SECRETARY
Tameez-ul-haque
AUDITORS
A.F. Ferguson & Co.
M. Yousuf Adil Saleem & Co.
Chartered accountants
LEGAL ADVISORS
Mandiwalla & Zafer
Advocates and legal consultants
REGISTERED OFFICE
MCB Building, F 6/G 6
Jinnah Avenue, Islamabad
PRINCIPAL OFFICE
Adamjee House, 2nd Floor
1.1 Chundrigar Road, Karachi
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MCB BANK LTD.
MANAGEMENT COMMITTEE
M.U.A Usmani
Malik Abdul Waheed
Salman Ahmed Usmani
Ali Munir
Muhammad Aftab Manzoor
Shahid Sattar
Aniq Khawar
Shoaib Qureshi
Mussadiq Ijaz
Zafar Abbas Naqvi
Ammar Hassan Zaidi
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MCB BANK LTD.
2.1.1 ORGANIZATIONAL STRUCTURE OF MCB BANK LTD

As MCB is a banking company listed in stock exchange therefore it follows all the
legalities which are imposed by concerned statutes Mr. Muhammad Mansha is chairman
& chief executive of the company with a team of 10 directors and 1 vice chairman to help
in the business control and strategy making for the company.
Operational Management of the bank is being handled by a team of 10 professionals. This

team is also headed by Mr. Muhammad Mansha. The different operational departments
are Consumer Banking & IT div; Financial & Inter branch div; Banking operations div;
HR & Legal div; financial control & Audit div; Credit management div; Commercial
Banking div; Corporate Banking div; Treasury management & FX Group and lastly
Special Assets Management (SAM) Group.
For effective handling of branches, it has been categorized into three segments with
different people handling each category. These categories are:
Corporate Banking
Commercial Banking
Consumer Banking
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MCB BANK LTD.
CORPORATE BANKING
These are branches, which have an exposure of over Rs. 100 million. Usually includes
multinational & public sector companies.
COMMERCIAL BANKING
The branches which has a credit exposure of less than Rs. 100 million but having a credit
portfolio of more than Rs. 20 million (excluding staff loans)
Usually branches in large markets and commercial areas come under this category.
CONSUMER BANKING
These are the branches that have exposure up to Rs. 20 million and these include all the
branches that are neither corporate nor commercial branches.
Recently the organizational structure was re-designed as follows:
PROVINCES WISE BRANCHES
Corporate
Consumer
Commercial
20 branches
637 branches
383 branches
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MCB BANK LTD.
NUMBER OF BRANCHES IN DIFFERENT LOCALITIS
Punjab
601
Sindh
217
NWFP
112
Baluchistan
35
Azad Kashmir
16
Domestic
981
Overseas
EPZ
Total
986
Among the four overseas branches three are located in Sri Lanka and one in Bahrain.
Furthermore, the bank has some proposals under consideration to open more brunches in
some European countries and as well as in Japan & china.
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MCB BANK LTD.
2.1.2 ORGANIZATIONAL STRUCTURE
President
Group heads
Divisions and field
Circle offices
Regional offices
Branch offices
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MCB BANK LTD.
LINE OF BUSINESS (LOB) ORGANIZATION

President and CEO
Group Head
Corporate
Group Head
Commercial
North
Group Head
Commercial
South
South Karachi
Lahore East
Karachi East
North Karachi
Lahore West
Karachi west
Faisalabad
Karachi Central
Gujranwala
Quetta
Abbotabad
Bahawalpur
Sargodha
Multan
Peshawar
Hyderabad
Sukkur
General Manager/
Circle Offices
General Manager/
Circle Offices
General Manager/
Circle Offices
Regional Managers/
Regional Offices
Regional Managers/
Regional Offices
Regional Managers/
Regional Offices
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MCB BANK LTD.
2.1.3 MANAGEMENT HIERARCHY

Branch Eden Centre
Chief Manager
Operational Manager
Credit Department
Operation
Officer
Supervisor
Cash Dept.
(Chief cash)
Clearing
Teller
Teller
Deposits/withdrawals
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MCB BANK LTD.
POLICY FORMATION PROCESS

At MCB Bank all policies are formulated at the Head Office at Karachi and are then
distributed among the vast network of more than 950 branches of MCB.
Among some of the policies they implement are that the Commercial Office East or
West, keeps in view new opportunity for a suitable and profitable location for its new
branch.
But as all policies are done by the HO no suitable information could be gathered.
MANAGERIAL POLICIES
Managers handle their staff at branch level. The duties assigned to them are to keep the
monthly deposit up to the mark; opening of new accounts has to be either stable or
increasing.
They are responsible for assigning leaves to their staff on yearly basis and even handle
emergency absence. MCB has a rule of working 9 to 5 daily but, internally their staff has
alternate off on Saturdays. The manager has to develop a leave program so as this routine
does not disturbs any customer.
They have to handle the problems of disappointed or angry customers and convince them
about the best service MCB provides.
They receive specific targets which they have o achieve within the given time period
which results in bonuses distributed among the staff and the manager released by the HO.
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MCB BANK LTD.
MCB PRODUCTS
AND SERVICES
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MCB BANK LTD.
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MCB BANK LTD.
3.1 MCB PRODUCTS AND SERVICES
3.1.1 PODUCT FOCUS OF MCB

OUR BUSINESS IS TO MAKR SURE THAT YOUR CASH MANAGEMENT
NEEDS ARE MET; NO HALF BAKED SOLTIONS.
3.1.2 WORKING CAPITAL LOANS

Based on the customer specific needs, the corporate bank offers a number of different
working capital finance facilities including Running finance, Cash finance, export
refinance, preshipment & post shipment etc. Tailor-made solutions are developed keeping
in view the unique requirements of the customers business.
3.1.3 TRADE FINANCE

Under Corporate Banking MCB offers trade finance services that include an entire range
of import and export activities including issuing Letters of Credit (L/Cs), purchasing
export documents, providing guarantees and other support services.
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MCB BANK LTD.
3.1.4 INVESTMENT BANKING

MCBs 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. With these areas, the team has developed expertise in
Private Placements
Debt/equity underwriting
Term Finance Certificates Loan Syndication
Arrangements of Non funded facilities
Mergers and acquisitions
Privatization
Corporate Advisory
3.1.5 TERM LOANS

MCB offers Short or medium term Finance certificates to meet capital expenditures and
short term working capital requirements of its customers. The loans are structured on the
basis of underlying project characteristics and ash flows of the business.
3.1.6 CASH MANAGEMENT
MCBs network of over 900 branches in Pakistan enables us to collect and disburse
payments efficiently with our cash management services. This also enables us to offer
you a choice of paper based or electronic fund transfer solutions including collection
amounts, cross branch online transactions etc.
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MCB BANK LTD.
3.1.7 MCB ONLINE SERVICES
With a solid foundation of over 50 years in Pakistan, with more than 750 automated
branches, 269 online branches, over 190 MCB ATMs in 34 cities nationwide and a
network of over 16 banks on the MNET ATM switch, MCB is positioned at the forefront
of the banking industry in Pakistan. This success has been possible because of a neverending drive to achieve higher levels of excellence, constantly striving to raise the level
of performance.
3.1.8 MCB ATM SERVICES
With an ever growing number of ATMs operating across the nation, the MCB ATM
Network is the largest and most advanced of its kind in the country, and is part of MCB's
continuing efforts to provide you with convenience that suits your requirements most.
And now the MCB ATM has gone global. MCB's affiliation with Master Card
International brings about added facilities for the MCB traveler abroad with the Cirrus
and Maestro networks.
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MCB BANK LTD.
MCB ATM WITHIN PAKISTAN

MCB Bank has the largest ATM Network in the country with over 200 ATMs and over
300 online branches. The MCB ATM Card can be used in over 35 cities in Pakistan.
Whether customers want to withdraw cash or ask for a mini-account statement, or even
use it as a debit card at Maestro POS terminals, the MCB ATM Card gives its customers
instant access to their bank account, anytime, anywhere.
Additional Conveniences
MCB's revolutionary
M-Net Switch enables customers to access their MCB
Account from any member bank's ATM Machine.
Mobile Banking
helps use GSM Phone to access mini-account statements
and balance information from anywhere.
Funds Transfer
Facility enables to transfer funds from one registered ATM account
to another. MCB's Funds Transfer facility is available to all MCB customers who
maintain Pak rupee accounts at any on-line branch and are MCB ATM cardholders.
This facility is available at any time you find convenient, 24 hrs, and 365 days.
MCB ATM INTERNATIONALLY

MCB ATM Card can be used to access MCB account from anywhere around the globe.
MCB ATM is accepted at 634,700 locations where there are *Master Card
Cirrus
or
ATMs allowing a daily withdrawal limit of US$ 200 (or equivalent in
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MCB BANK LTD.
other currencies) on availability of funds in account. Plus, the added convenience of

shopping through over 5 million Maestro POS (Point of Sales) terminals globally.
ATMS ADDITIONAL INFORMATION
PIN CHANGE
PIN change option is now given so that customers can have added security with their
card. For added security, it is advisable to customers to change their PIN as soon as they
receive the card. It is also advisable to keep on changing PIN on a regular basis. If
customers feel that their PIN has been disclosed to others, be sure to change the number
as soon as possible.
PIN FORGOTTEN
Customers are advised to memorize their PIN and are asked to never write their PIN
down on anything in their wallet, or on the card itself. In case if customers forget their
PIN, a new card will have to be made, which can be done by returning the old card to the
MCB online branch and submitting an application for a new card. The new card can be
received by MCB users within 72 hours to 5 days.
DAMAGED CARD
If card breaks in two or gets distorted, please return the card to MCB Online branch.
Customers can receive new MCB ATM card from MCB Online branch within a few days.
CARD LOSS
In case of card loss, customers are advised to visit MCB Online branch or call 24-hour
MCB Call Centre number at (021) 111-000-622. Customers can receive MCB ATM card
from MCB Online branch within a few days. If card is not returned from the ATM,
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MCB BANK LTD.
contact the branch where the card is lost. Customers will have to complete a form and
will then receive their card from MCB Online branch.
INCORRECT PAYMENT
If by any chance the ATM does not dispense the correct amount of money or does not
dispense the money at all, customers can contact the branch where the ATM was used or
their home branch and inform them immediately. They will have to complete a form and
the amount will then be credited to their bank account.
ATM RECEIPTS
Customers are advised to keep their ATM receipts after every transaction. It is a good
way to guard against fraud and make record-keeping easier.
3.1.9 MCB ATM REGULAR CARD

MCB ATM allows withdrawal of up to Rs. 10,000 per day and a maximum of 3
withdrawals per day per card.
3.1.10 MCB GOLD CARD

MCB gold card allows Rs. 25000/- per day and a maximum of 6 withdrawals per day are
allowed.
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MCB BANK LTD.
3.1.11 MCB BILL PAYMENT

For the first time in Pakistan, MCB has introduced unique service - MCB ATM Bill Pay
which allows customer to pay utility bills and recharge their mobile phones the easy waythrough MCB ATM's, available 24 hours-365 days. This facility is for all MCB ATM
Card holders and MCB ATM Cash Card holders alike.
It is faster, easier, convenient and more secure. Customers can decide when he has to
make the payment and how much he wants to pay. Its secure as customers do no have to
carry cash or even their bill, they can just use any MCB ATM to pay their utility bills and
recharge mobiles around the clock.
MCB ATM account holders can pre-register their MCB account(s) and Consumer /
Account numbers of the Utility Company / Service Provider with their home branch to
avail this service.
MCB ATM Cash card holders can directly enter the Consumer / Account numbers of the
Utility Company/Service Provider onto the relevant ATM screen to make the utility bill
payment or to recharge their mobile phones.
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MCB BANK LTD.
3.1.12 MCB MOBILE BANKING
At the forefront of technological excellence, MCB has proudly introduced MCB

MOBILE BANKING. MCB mobile banking provides the convenience of accessing
account balance information and mini statements whenever the customer is available.
MCB Mobile Banking service is available to all MCB ATM cardholders, 24 hours - 365
days. They just have to call MCB Help Line on (021) 111-000-777 or any MCB online
branch for assistance.
MCB Mobile Banking gives customer easy and quick access to their account(s) at any
time including holidays. With MCB Mobile Banking customer can
Check your balance

View the last 4 transactions of your MCB account
MCB Mobile Banking is a free service for MCB account holders who have an ATM card.
All they have to pay for is the cost of an SMS message if charged by the service provider.
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MCB BANK LTD.
3.1.13 MCB CALL CENTRE
Keeping up with banking services can be tedious but not with MCB Bank, where phone
service is at fingertips. The customers just have to dial Help Line from the comfort of
their home or office or wherever they happen to be. It offers basic banking services for
their convenience, eliminating the need for them to make unwanted trips to branch.
MCB CALL CENTRE SERVICES
BANKING SERVICES
Balance Inquiry (receive details through fax, SMS or email - registered users)
Foreign Exchange Rates (receive details through fax, SMS or email -registered users)
Account Statement
Cheques book requests
ATM SERVICES
ATM Lost / Stolen Reporting (Hot / Warm)

ATM Transaction Details, History & Complaints
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MCB BANK LTD.
MCB MOBILE BANKING SERVICES

M-PIN Reset
Block / Unblock Service
RUPEE TRAVELER CHEQUS (RTC) SERVICES
RTC Verification (receive details through fax, SMS or email -registered users)
Lost / Stolen Reporting (receive details through fax, SMS or email -registered users)
OTHER SERVICES
Product Information (receive details through fax, SMS or email -registered users.
ATM Locator (receive details through fax, SMS or email -registered users)
Branch Locator (receive details through fax, SMS or email -registered users)
Tele-banking Services Management i.e. TPIN change, Block / Unblock service
Customer Complaints
Fax & email Service
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MCB BANK LTD.
3.1.14 MCB SMART CARDS
Smart Card is a multi-function debit card that provides with round the clock access to
bank account for purchasing, cash withdrawals and other transactions.
MCBs Smart Card is a secure and convenient instrument of payment with unmatched
functionalities. It provides 24-hour direct access to bank account. The convenience and
flexibility of MCB Smart Card helps live a smarter life. It not only helps managing
expenses, but also eliminates undue interest on day to day credit card transactions.
Balance is always within reach and customers can spend accordingly.
MCB is the only bank to introduce a debit card that gives the option to choose from
domestic and international cards for local and global usage respectively. Customers can
avail the following functionalities on MCB Smart Card.
Smart Card is available in the Classic and Gold category with a further choice of Local or
International versions. With these card categories, supplementary cards for family
members are also available. The difference between the classic and gold categories is
based on their purchasing and withdrawal limits as given below.
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MCB BANK LTD.
ATM Withdrawal Limit POS Purchasing Limit

(Rs.)
(Rs.)
Local
Classic
Gold
10,000
25,000
50,000
100,000
10,000
100,000
25,000
150,000
International
Classic
Gold
MCB SMART CARDS FEATURES
Purchasing
Bill payments
Funds transfer
Cash withdrawals
Balance inquiry
Mini statement
Mobile banking
Internet banking
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MCB BANK LTD.
3.1.15 MCB DEBIT CARD

MCB Debit Card is a secure, convenient and quick payment facility that enables to do
purchasing by using existing MCB ATM / MCB Smart Card as a DEBIT CARD.
MCB DEBIT CARD FEATURES

No need to carry cash, when MCB Card is your companion.
Acceptability of your card at Merchant Locations, including Petrol Pumps,
Grocery Stores, Bakeries, Departmental Stores, Jewelers, Travel Agents,
Restaurants, chemists, hospitals and many more locations displaying this sign.
When MCB Card is used, payment is made by directly debiting your Bank
account.
No need for signature, as PIN (Personal Identification Number) is being used for
security.
3.1.16 MCB CASH CARD

The wide spread acceptability and frequent use of MCB ATM Cards has prompted the
Bank to add more value to the cards which cater to customers evolving cash needs
enabling them to go ahead with ease and convenience. This reinforces MCB commitment
to
provide
to
its
customers
safe
and
secured
mode
of
cash
substitute.
MCB CASH CARD is useful means of cash for MCB customers and non customers
alike:
Travelers
Businessmen
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MCB BANK LTD.
General Public
MCB CASH CARD DENOMINATIONS

MCB Cash Cards are issued in the following preloaded denominations.
MCB Classic Card (CL) Rs 5,000 (Rupees Five Thousand)

MCB Silver Card (SL) Rs 10,000 (Rupees Ten Thousand)
All the MCB CASH CARDS of different denominations have the same design, feature,
size and are easy to place in the wallet.
MCB CASH CARD FEATURES
MCB Cash Card Pin Code is confidential and is only known to the purchaser. It
can be changed from the MCB ATM Machines.
MCB Cash Card if lost or stolen then the same will be immediately marked
"HOT" on request of purchaser.
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MCB BANK LTD.
The amount remaining on the MCB Cash Card account will be refunded to the
purchaser
Loss/ theft will only be entertained through the original purchaser.
Loss / theft are to be reported to the issuing branch by the purchaser or MCB Cash
Card / ATM Help Line Call Centre (111-000-777).
MCB CASH CARD ADVANTAGES

MCB ATM Cash Card enables MCB customers / non customers to meet their day-to-day
cash requirements and settlements of their commercial / personal cash requirements
transactions.
Secure
MCB ATM Cash Card is the safest alternative to cash because the purchaser can be rest
assured of its security. If the ATM Cash Card is lost it would be cancelled immediately
and the purchaser would get the amount refunded easily subject to completion of refund
formalities.
Ease of use
MCB ATM Cash Card is the best because unlike other modes of transfer of Funds /
Remittances which are drawn on a particular branch and can only be en cashed at that
branch. MCB ATM Cash Card holder can draw cash from any of MCB ATMs all over the
country, M-Net Members ATMs and Cirrus Member ATMs globally. MCB CASH CARD
is disposable and with a prescribed determined value. When the value of MCB CASH
CARD is utilized fully and the balance amount is NIL the cards will be discarded.
Sale procedure
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MCB BANK LTD.
Sale procedure of MCB CASH CARD is also very simple, any one who is customer of
MCB or a non customer of the Bank may purchase the MCB CASH CARD through any
of our Authorized Online Branches with ease and completion of minimum formalities.
The purchaser is required to fill an application Form CC-10 and hand over the same at the
counter of any authorized online branch of his choice and the rest will be done by the
friendly staff of the bank.
3.2 OTHER PRODUCTS
3.2.1 MCB PYARA GHAR
MCB offers three home financing options for Pyara Ghar. MCB Pyara Ghar provides
flexible and competitive home financing facility with options of home purchase,
construction and renovation. With the MCB Pyara Ghar Scheme customers can obtain the
financing to purchase a house/apartment, construct own house or renovate existing house
immediately. Nothing could be more convenient than owning a house and paying easy
installments that takes a step closer to becoming the owner of their house. It is better than
paying a monthly house rent which takes no where other than increasing your expenses.
Pyara Ghar is definitely the most feasible and direct route to a dream house.
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MCB BANK LTD.
MCB gives its customers their dream home at the best possible mark-up rates. They can
choose either one of their two mark-up rate options- fixed or variable. They also have an
option to club spouses income to avail higher financing amount.
Early repayment option is tailor-made to allow making partial prepayments at dates that
suit Pyara Ghar Clients.
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MCB BANK LTD.
MCB PYARA GHAR BENEFITS
Option to Purchase, Renovate or Construct.

Competitive financing rates.
Financing tenure from 2-20 years.
Financing up to Rs. 20 Million.
BTF-hassle free process to transfer your facility from another institution.
Pre-approved for Auto Finance.
Service at your doorstep.
Home Purchase
Financing Amount Rs. 500k to Rs. 20 m
Home
Renovation
Rs. 500k to Rs. 7m
Home
Construction
Rs. 500k to Rs. 10m
BTF
Rs. 500k to Rs. 15m
Loan to Value
Ratio
75:25 for businessmen 65:35 for businessmen

80:20 for all segments
with 3 years business with 3 years business
65:35 for businessmen
proof
proof
with 3 years business
proof
80:20 for businessmen 70:30 for businessmen
with 5 years business with 5 years business
70:30 for businessmen
proof
proof
with 5 years business
proof
80:20 for salaried
70:30 for salaried
employees
individuals
70:30 for salaried
employees
Tenure
3 - 20 years
2 - 20 years
3 - 20 years
3 - 20 years
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MCB PYARA GHAR ELIGIBILITY
Pakistani national residing in an approved city.

Not less than 21 years or more than 65 years (at the time of finance maturity).
Salary / income is at least Rs. 18,000 per month with monthly installment not
exceeding 50% of the take-home salary/income.
Association with business / profession for at least 3 years.
Salaried Individuals.
MCB PYARA GHAR FACILITIES
INSURANCE
MCB Pyara Ghar provides its customers the mandatory property insurance (for the
amount of loan). The life insurance is optional; however MCB encourages its customers
to go for it as it secures the loan repayment, hence securing their family.
BALANCE TRANSFER FACILITY

In case customers have a home loan outstanding with another bank for at least one year,
they can have it transferred to MCB through a hassle-free process on much better terms.
Preferred Rate
Break in Processing Fee
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MCB BANK LTD.
PROCESSING
Customers are advised to carefully read and fill out the MCB Pyara Ghar application and
the Letter of Understanding (LOU), which will be provided at their doorstep by MCB
sales staff. Submit it along with the related documents. On the approval of application,
customers will get a Sanction letter.
In case of Home Purchase the property will be transferred through relevant Housing
Authority / Registrar office / Society in your presence along with Banks authorized
officer, lawyer and seller of the property. Whereas for others, MCB will disburse the
sanctioned amount in your presence and banks authorized officer.
EXCELLENCE
Convenient access through more than 1000 MCB branches.
Relationship with MCB, a bank with over 50 years of quality service.
Financing up to Rs. 20 Million (depending upon your income and appraised value
of your property).
Independent Service Quality Representatives to assist customers.
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3.2.2 DEPOSIT ACCOUNTS
MCB offers two major categories of accounts.

Local currency accounts and
Foreign currency accounts.
Among the local currency accounts MCB offers Khushali Bachat account, Pak Rupee
Saving account, Pak Rupee Current Account, Pak Rupee Term Deposit, Special Pak
Rupee Term Deposit, Saving 365, Saving 365 Gold, and Basic Banking Accounts.
And among the foreign currency account MCB offers Foreign Currency Saving Account,
Foreign Currency Current Account.
KHUSHALI BACHAT ACCOUNT
Khushali Bachat Account is one of the most popular deposit accounts offered by MCB.
Its a special type of account which provides the account holder additional facilities for
payment of utility and HBFC.
Low average balance requirement.
Profit is paid on your account on a half yearly basis.
Cash deposit and withdrawal facility at hundreds of MCB branches across
Pakistan (conditions apply).
Withdraw cash through Pakistans largest ATM network.
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MCB BANK LTD.
Make cash free transactions, at thousands of merchant outlets through MCB

Smart Card (local & international).
Customers can stay in touch with their account through MCBs Virtual Banking
Service.
They can use their account to pay bills 24 hours a day, 7 days a week through
Virtual Banking.
They can get instant updates about their account through MCBs sms banking.
PAK RUPEE SAVING ACCOUNT
Low average balance requirement

Enjoy unlimited free of cost transaction facility.
Profit is paid on account on a half yearly basis
Pakistan (conditions apply)
Smart Card (local & international)
Stay in touch with MCBs Virtual Banking Service.
Customers can use their accounts to pay their bills 24 hours a day, 7 days a week
through Virtual Banking
Customers can get instant updates about their account through MCBs sms
banking.
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MCB BANK LTD.
PAK RUPEE CURRNT ACCOUNT

No Zakat or withholding tax deductions.
Stay in touch through MCBs Virtual Banking Service.
Customers can use their account to pay bills 24 hours a day, 7 days a week
through Virtual Banking.
banking.
PAK RUPEE TERM DEPOSIT ACCOUNT
Avail choice of 1 month, 3 months, 6 months, 1 year, 2 years, 3 years, 4 years and
5 year term deposits.
Low investment threshold.
Half yearly profit payment.
Avail a credit facility up to 75% of the total deposit value.
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MCB BANK LTD.
SPECIAL PAK RUPEE TERM DEPOSIT ACCOUNT

MCBs Special Rupee Term deposits offer a very attractive long term investment
option with ease and convenience.
Highly attractive profit rates.
Tenors available are 3 months, 6 months, 1, 3 and 5 years.
Profit on 3 and 6 months deposit is payable at maturity of deposit.
Profit on 1, 3 and 5 years deposit is payable quarterly.
Profit can withdraw your profit amount through MCBs wide network of ATMs.
Avail a credit facility up to 75% of the total deposit value.
SAVING 365
The MCB Saving Account offers facilities of Current Account. The MCB Saving 365
calculates profits on a daily product basis and gives you the facility of unlimited
withdrawals.
Open a Saving 365 Account with a minimum initial deposit of Rs. 300,000.
Profit is paid on account on a half yearly basis.
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MCB BANK LTD.
Make cash free transactions, at thousands of merchant outlets through your MCB
Stay in touch through MCBs Virtual Banking service.
Customers can use their account to pay their bills 24 hours a day, 7 days a week
banking.
Customers can avail a credit facility up to 75% of the total deposit value
SAVING 365 GOLD

As balance grows, so does the rate of return on Savings 365 Gold account.
Open a Saving 365 Gold Account with a minimum initial deposit of Rs. 10
Million.
Offers a tiered profit rate structure.
Profit is paid on account on a half yearly basis.
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MCB BANK LTD.
Make cash free transactions, thousands of merchant outlets through MCB Smart
Card (local & international).
Stay in touch with MCBs Virtual banking service.
Customers can use their account to pay bills 24 hours a day, 7 days a week
banking.
Customers can avail a credit facility up to 75% of the total deposit value.
BASIC BANKING ACCOUNT

In compliance with the directives of State Bank of Pakistan via BDP Circular No. 30,
issued on November 29, 2005, the Basic Banking Account has been launched with effect
from February 27, 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
(either 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 of charge cash withdrawals are allowed through MCB's own
ATMs.
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MCB BANK LTD.
There will be no minimum balance maintenance requirement, and hence no monthly

account maintenance charges will apply.
In cases where balance in BBA remains zero for a continuous 6 month period, the
account will be closed automatically, without any notice to the account holder.
FOREIGN CURRENCY SAVING ACCOUNT

MCBs Foreign Currency Savings Account offers attractive returns on Foreign Currency
investment.
Open a foreign currency Savings account in any of the four currencies i.e. US
Dollar, UK Pound Sterling, and Euro.
Unlimited transaction facility.
Low balance requirement.
Profit credited to customers account on a half yearly basis.
A foreign currency account can be opened at any of MCBs foreign exchange
dealing branches.
FOREIGN CURRENCY CURRENT ACCOUNT

MCBs Foreign Currency Current Account offers its customers the convenience of
unlimited withdrawals i.e. access to their funds whenever they want without any notice.
There is no limit on the number of transactions they can make in a day.
Open a foreign currency Current account in any of the four currencies i.e. US
Dollar, UK Pound Sterling, and Euro.
Unlimited transaction facility.
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MCB BANK LTD.
Low balance requirement.

A foreign currency account can be opened at any of MCBs foreign exchange
dealing branches.
3.2.3 INSTANT FINANCING
Customers can get a loan in an instant at any MCB branch. MCB is offering same day
financing facility against liquid collateral at competitive pricing to its customers.
3.2.4 MCB REMIT EXPRESS
MCB sends money fastest to Pakistan, anywhere in Pakistan. International remittances

with a two-way messaging facility delivered at customers doorstep within 24 to 72
hours.
Fast, secure and easy-to-use, MCB's Remittance Services is an efficient way to transfer
money overseas. Customers can remit funds from any country to Pakistan through Swift
System. Customers are required to provide the following Swift Code to their bank in their
country.
The following details are to be included:
Name and Account Number of Beneficiary
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MCB BANK LTD.
Name of the Branch/ Name of the city (Where beneficiary is maintaining an

account).
Easiest and safest way to remit funds
Remittance within 24 to 72 hours
Personal delivery to the beneficiary
Delivery confirmation to the remitter
Message facilities for both parties
The beneficiary will receive the amount even if he/she does not have an MCB
account
3.2.5 MCB CAR FINANCING
Car financing and leasing at competitive rates with flexible options. Car4u finances both
semi-commercial and non-commercial vehicles for personal and business use.
FLEXIBLE
Option for financing or leasing
Financing tenures from 1 to 7 years.
Options for new as well as used cars.
Option for local as well as imported cars.
Financing up to Rs.20 lacs.
Option for early payment
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MCB BANK LTD.
Option for Replacement Loan.

Option for first year insurance financing.
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MCB BANK LTD.
AFFORDABLE
Lower mark-up rates.
Lower insurance rates
Only up to 10% down payment.
Equal monthly installments.
SPEED
Fast and hassle free processing of application.
Priority delivery on different vehicles.
SPECIAL BENEFITS
Option to pay 1st installment after three months.
Pay down payment after loan is approved.
AVAILABILITY
Currently available in 16 major cities.
Will soon be launched in Rahim Yar Khan, Sukkur, Mianwali, Abbottabad,
Mardan and many more cities.
EXISTING CUSTOMERS
MCB offers 1% discount to its existing customers for Personal Loan, Pyara Ghar
or Business Sarmaya.
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MCB BANK LTD.
3.2.6 MCB RUPEE TRAVELLER CHEQUES
MCB Rupee Traveler's Cheques were first introduced in 1993 as safe cash for traveling
and travel related purposes. The product has been extremely popular and is preferred over
cash by customers while traveling and in all walks of life. MCB Rupee Traveler's
Cheques- The safest way to Carry Cash the most widely accepted way to pay cash for
travel related purposes. RTC is a safe and secure way to make payments nationwide.
MCB Bank has been at the forefront of providing its customers with new and innovative
products and financial instruments that are safe, secure and profitable.
Easily available: Buy them from any of the designated branches in Pakistan.
As good as cash: MCB RTCs are safe to carry and can be used without any
inconvenience especially by Travelers.
Easily en-cashed: At any designated MCB branch.
Easily refunded: in case of loss or theft, you can get the full amount back.
Exclusive security features: Due to special printing and safety precautions,
Cheques cannot be duplicated.
Denominations: Available in denominations of Rs 1000, Rs 5000, Rs 10,000 and
gift Cheques of Rs 500.
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MCB BANK LTD.
Valid until Used: Validity of Cheques indefinite.

More than 900 MCB Authorized branches are selling and purchasing Cheques all
over Pakistan.
MCB Rupee Traveler's Cheques are also available at the counters of Foreign
Banks such as ABN Amro and HSBC and private bank i.e. Bank Al-Habib.
MCB RTC GIFT CHEQUES
MCB Gift Cheques eliminates guesswork in trying to find out the perfect Gift for any
occasion birthdays, wedding, graduation and religious festivals.
Gift Cheques is beautifully packed in a Gold / Silver envelope with a personalized Gift
Card designed to suit all occasions. They are safer than cash, because they can be
replaced if lost or stolen. They are also available at all TCS Express Centre round the
clock.
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MCB BANK LTD.
3.2.7 MCB EASY PRSONAL LOAN
Personal loans for salaried individuals of reputed local and foreign companies at rates
tailored to customer's repayment capacity.
FEATURES OFFERED
MCB will lend any amount, from Rs 30,000 to Rs 490,000, depending upon net
monthly income.
Customers can choose tenure of 1 to 3 years for the repayment of the loan.
FACILITIES AVAILABLE
Bank to Bank balance transfer.
Credit Card balance transfer.
Loan Protector Shield- insurance coverage of balance loan amount in case of
death or permanent and total disability.
Availability of early repayment option.
REPAYMENT ARRANGEMENTS
Repayment of principal and mark-up is monthly and can be repaid using either one of the
following modes:
Direct Salary Transfers.
Payroll Deduction.
Post-dated Cheques.
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MCB BANK LTD.
ELIGIBILITY
Minimum net monthly income Rs 10,000.
25 to 55 years of age.
Pakistani national.
Permanent resident of Karachi.
At least 2 years of employment with current employer.
Initially offered to employees of selected institutional MCB customers in Karachi.
PROCESSING FEE
Processing fee of 1% of the principal loan amount to be charged at the time of loan
disbursement.
3.2.8 MCB CORPORATE FINACING
Providing access to diversified financing options including working capital loans, term
loans, trade finance services and investment banking
WORKING CAPITAL LOANS

Based on the customers specific needs, the Corporate Bank offers a number of different
working capital financing facilities including Running Finance, Cash Finance, Export
Refinance, Pre-shipment and Post- shipment etc. Tailor- made solutions are developed
keeping in view the unique requirements of their customers business.
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MCB BANK LTD.
TERM LOANS
MCB offers Short to Medium Term Finance to meet capital expenditure and short term
working capital requirements of our customers. The loans are structured on the basis of
underlying project characteristics and cash flows of the business.
TRADE FINANCE SERVICES
Under Corporate Banking MCB offers trade finance services that include an entire range
of import and export activities including issuing Letters of Credit (L/Cs), purchasing
export documents, providing guarantees and other support services.
INVESTMENT BANKING
MCB Investment Banking Team has emerged as a leading player in Pakistan's Investment
Banking arena. The Team handles advisory, corporate finance and capital markets related
transactions. Within these areas, the team has developed expertise in:
Private Placements
Debt/Equity Underwriting
Term Finance Certificates
Loan Syndication
Arrangement of Non- Fund Facilities
Mergers and Acquisitions
Privatization
Corporate Advisory
CASH MANAGEMENT SERVICES
MCB network of over 900 branches in Pakistan enables them to collect and disburse
payments efficiently with their cash management services. This also enables them to offer
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MCB BANK LTD.
its customers a choice of paper based or electronic fund transfer solutions including
collection amounts, cross branch online transactions etc.
3.2.9 MCB VIRTUAL BANKING
MCB, the leader in banking technology, now provides the convenience of banking on the
internet. Customers can now access their account anytime and anywhere MCB Virtual
Internet Banking offers its customers the convenience to manage and control their
banking and finances when they want to, where they want to. It is convenient, simple,
secure and totally free of cost.
MCB Virtual Internet Banking offers its customers the convenience to manage and
control their banking and finances when they want to, where thy want to. MCBs
Virtual Internet Banking facility is simple and secure and its free of cost. With MCB
Virtual Internet Banking customers can access any of the banking services, 24 hours a
day, 7 days a week and throughout the year.
MCB VIRTUAL BANKING SERVICES
MCB Virtual Internet Banking offers a wide range of online services which makes their
banking accessible anytime and from anywhere.
Detailed Account Summary of all listed accounts.
Mini-statements of each of the listed accounts showing recent transaction history
for that account(s).
Statement-by-Period of each of the listed accounts, based on the period specified.
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MCB BANK LTD.
Immediate or Scheduled Transfer of Funds between customers own accounts, as

well as to third-party accounts setup as beneficiaries, maintaining accounts with
MCB.
Scheduling of One-Time as well as Recurring Funds Transfers.
Payment of utility bills for registered Utility Companies.

Immediate or Scheduled Bills Payment. Scheduling of One-Time as well as
Recurring bill payments. Option for Full or Partial payment based on the
payment conditions specified by a particular Utility Company.
Bulk Salary Transfer for Corporate Customers, to facilitate them in paying salary
to the corporate employees, who maintain accounts with MCB.
Bulk Funds Transfer for Corporate Customers.
Cheques Book Request for any of your listed accounts.
Payment/Transfer Alerts for reminding, in advance, prior to the processing of
specified payments and
transfers.
Personal Alerts for reminding of pre-specified events and occasions
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MCB BANK LTD.
3.2.10 MCB LOCKERS
MCB lockers provide the best protection for customers valuables. Lockers of different
capacities are available nationwide.
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MCB BANK LTD.
3.2.11 MCB BUSINESS SARMAYA
MCB Business Sarmaya is the best Running Finance facility against residential
property which empowers to manage business dealings better. So customers can get MCB
Business Sarmaya and thus improve their business, avail lucrative opportunities and
expand their business, with absolute satisfaction of cash flows.
FLEXIBLE
Running finance facility to use when and for whatever they want.
Financing up to Rs. 20 million.
Renewed every year
Customers can pay back when they want
No fixed monthly payment
AFFORDABLE
Lower mark up and that too only on utilized amount.
HIGH LOAN AMOUNT
Loans up to 70% of the value of house / flat.
SPEED
Fast and hassle free processing of application after completion of documents.
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MCB BANK LTD.
EASE
Doorstep service and assistance from dedicated sales staff to fill and submit
application along with the documents.
WIDE ACCESSIBILITY
Customers can access their Business Sarmaya accounts through MCBs vast ATM
and branch network anywhere in Pakistan.
SPECIAL BENEFITS
Hassle free process to transfer similar facility from any other bank at a special
discount.
AVAILABILITY
Available in all major cities i.e. Karachi, Lahore, Faisalabad, Rawalpindi and
Islamabad.
EXISTING CUSTOMERS
Customers can get discounts if they are already a customer of similar facility of
any other bank.
3.2.12 MCB MASTER CARD

MasterCard International has expanded globally in more locations in the world than any
other card. The card was introduced by Muslim Commercial Bank Limited in 1995 and
now offers card members over 15 million outlets in 232 countries.
Photo security- The first bank in Pakistan to introduce the enhanced feature of
photograph on the card limiting fraud in case of card loss.
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MCB BANK LTD.
Welcomed at over 3, 000 outlets in Pakistan.

Provides up-to 45 days Free Credit.
Joining and Annual Fees to suit its customers.
24 Hour Customer Services- Call 111-700-700 and customers can get information
from their customer services representatives on new card application or have their
queries resolved anytime of the day.
Cash Advance Facilities available in Pakistan and worldwide.
3.2.13 MCB EASY BILL PAY

MCB provides its customers the facility to pay their utility bills anywhere, anytime
through their three convenient options.
MCB Easy Bill pay offers unmatched convenience to pay utility and mobile phone bills
or re-charge their prepaid mobile phone accounts anywhere, anytime with security and
peace of mind.
MCB bank is the only bank that offers its customers three convenient options of making
bill payments to PTCL, SSGC, Instaphone, Mobilink, Paktel, and Ufone. So, customers
can save their precious time by avoiding long queues and pay bills through MCB Easy
Bill Pay.
MCB Smart card or MCB ATM Card Holder can easily pay their bills or re-charge their
prepaid mobile phone account through the following convenient options of MCB Easy
Bill Pay:
MCB ATM
MCB Call Centre
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MCB BANK LTD.
MCB Virtual Banking
3.3 MCB ISLAMIC BANKING

MCB is the place where they work as a team, having no barriers, no boundaries. At MCB,
everything they do is rooted in their values and a true understanding of this diversified
market. At the core of it lie not only achieving successful results, but the curiosity to
delve into the consumers insights for a better and a simpler lifestyle. The bank possesses
sufficient expertise, necessary infrastructure, information technology, and manpower to
run Islamic Banking Operation.
MCB understands the special needs of the customers desirous of availing local and
international financing facilities for their business and trading under Islamic Modes.
MCB now provides its customers with the reliable Islamic Financial Services and support
they require to successfully achieve their business objectives. Keeping in view the said
purpose bank has recently formed Islamic Banking Division and Islamic Banking
Management Committee under the supervision of Mr. Muhammad Shoaib Qureshi,
Senior Executive Vice President and Head of Banks Operations and Islamic Banking
Group, who has an experience of more than 36 years covering all segments of banking.
Page 73 of 146
MCB BANK LTD.
DEPOSIT SCHEMES
For customers who are looking for a deposit opportunity where they can purse their funds
and reap halal returns on it, we offer the following products:
AL - MAKHRAJ SAVING ACCOUNT
The minimum deposit requirement for Al-Makhraj Saving Account is only Rs. 10,000
and profits can be earned 6-monthly. Other features associated with this product are as
follows:
Minimum Deposit: Rs. 10,000
Minimum Monthly Balance: Rs. 10,000
Islamic Tools used in designing the product: Mudaraba/ Musharaka
Product to be availed by: Individuals & Joint Account Holders (Local and
Foreign), Companies, Corporate, Trusts, etc
Special Advantages:
For Customer= Bi-Annual Profit Payment; Withdrawal Facility
Shariah = Meets requirements for Shariah Compliance
Additional Features:
Personalized Cheques books
Withdrawal Facility from ATM
Online deposit/ withdrawal facility as per bank's policy
Debit card
Utilities payment via ATM card
Mobile Banking
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MCB BANK LTD.
Call center facilities

6-monthly profit payment
Free bank balance certificates (once in 6 months)
Taking stop payment/ hold mail/ standing instructions
Issuance of duplicate statement of account (as per Schedule of Charges)
Personal financial consultancy services (regarding Shariah Compliant
products)
Choice of statement frequency (as per Schedule of Charges)
Balance for Profit Calculation: Monthly Average Balance
Frequency of Announcements: The first announcement shall be made at the end of
December 2003)
Profit Payment Options: 6-Monthly
Weight ages: Initially single weight age for product; Later weight ages can be
made according to tiers (Volume-wise)
Communication Process: Announcement on notice boards, and website
Banking Network: IBD's Branch only
IANAT ACCOUNT
For customers who are looking for a chequing account that gives them the ease of doing
unrestricted number of transactions, MCB offers Al-Makhraj Ianat Account. With a
minimum of only Rs. 10,000, Ianat Account may be opened. With all the features and
facilities that this product offers, it is highly recommended for management of business
funds.
Details of the product are as follows:
Page 75 of 146
MCB BANK LTD.
Minimum Monthly Balance: Rs. 10,000

Personalized Cheque books
Withdrawal Facility from ATM
Online deposit/ withdrawal facility as per bank's policy
Debit card; Utilities payment via ATM card
Mobile Banking
Free bank balance certificates (once in 6 months)
Taking stop payment/ hold mail/ standing instructions
Issuance of duplicate statement of account (as per Schedule of Charges)
Personal financial consultancy services (regarding Shariah Compliant
products)
Choice of statement frequency (as per Schedule of Charges)
AL-MAKHRAJ TERM DEPOSIT ACCOUNT
A minimum of only Rs. 25,000 is needed to invest money in Al-Makhraj Term Deposit.
Choice of tenors can be made from a list of options namely 1, 3 & 6 months, 1, 2, 3 or 5
years. Profit payment options available to customers are monthly, quarterly and/ or at
maturity. However, monthly profit payment and deposit product of 1 month are not
available currently.
Details of the product are as follows:
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MCB BANK LTD.

Islamic Tools used in designing the product: Mudaraba/ Musharaka
Tenors Available: 1 month, 3 month, 6 month, 1 yr, 2 yrs, 3 yrs & 5 yrs (1-month
product to be made available later in a few months time)
Special Advantages:
For Customers= Profit Payment Options customized to suit needs
of customers; Minimum Deposit requirements lower than most
banks so it is more accessible/ affordable for people
Shariah= Meets requirements for Shariah Compliance
Taking hold mail/ standing instructions for profit payments etc
Personal financial consultancy services (regarding Shariah
Compliant products)
Frequency of Announcements: The first announcement shall be
made at the end of the month of December 2003.
Profit Payment Options: Monthly/ Quarterly/ At Maturity
(Monthly payment option to be made available later in a few
months time)
Weightages: Different weightages based on tenors and profit
payment options
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MCB BANK LTD.
Communication Process: Announcement every month on notice

boards, and website
Page 78 of 146
MCB BANK LTD.
FUNDS BASED FACILITIES

MCB Islamic Banking provides funds based facilities for Ijarah Products, Equipment
Ijarah, Car Ijarah, and Murabahah.
3.3.1 ISLAMIC BANKING DIVISION Islamic Banking Division has been formed with effect from 1st January 2003, which in a
short span of time, has developed Islamic Banking Products, prepared Operational
Manual, arranged local & international training for its own executives as well as at all
management level.
3.3.2 ISLAMIC BANKING MANAGEMENT COMMITTEE

Recently the bank has established an Islamic Banking Management Committee
comprising of the senior executives representing various important functions of the bank,
such as, Credit & Risk Management, Finance, Treasury, Operations, Islamic Banking
Division and Sharia Advisor.
The objective of this committee is to review the products offered by Islamic Banking
Branches, and to improve them not only to make them competitive and practicable but
also make them truly Sharia Compliant.
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MCB BANK LTD.
3.4 MCB SERVICES
3.4.1 FIELD OF ACTIVITIES

Commercial banks are the most effective mobilizer of savings and have bee providing
short term requirements of working capital to trade, commerce & industry .The
commercial banks are authorized to engage in forms of business.
The banks play a very important role in economy of a country. Businesses depend upon
banks for carrying out various activities relating to finances, obtaining agency services
etc .Banks provide facilities to individuals too. The manifold services of the bank can be
divided into major head as the purpose of banks is to provide some services to the general
public. And for this purpose different banks provide different services to the people in
different forms. The Muslim Commercial Bank (MCB) is a commercial bank, in modern
time commercial banks play a very important role and their functions are manifold. The
main functions and services which Muslim Commercial Bank Limited provides to
different peoples are as follows.
Open Different accounts for different peoples

Accepting various types of deposits
Accepting various types of deposits
Granting loans & advances
Undertaking of agency services and also general utility functions, few of those
are as under:
Collecting Cheques and bill of exchange for the customers.
Collecting interest due, dividend, pensions and other sum due to customers.
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MCB BANK LTD.
Transfer of money from place to place.

Acting an executor, trustee or attorney for the customers. Providing safe
custody and facilities to keep jewelry, documents or securities.
Issuing of travelers Cheques and letters of credit to give credit facilities to
travel.
Accepting bills of exchange on behalf of customers.
Purchasing shares for the customers.
Undertaking foreign exchange business.
Furnishing trade information and tendering advice to customers.
For proper functioning of branches and the over all bank has been divided in different
departments. These departments handle different jobs so that division of work is there for
improvement of functions and also it is easy to control the situation.
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MCB BANK LTD.
MARKETING MIX
Page 82 of 146
MCB BANK LTD.
4.1 MARKETING MIX

Marketing mix is one of the key concepts in modern marketing era.
"Marketing Mix is the set of marketing tools that the firm uses to pursuits marketing
objectives in the target market".
Marketing is very essential in the increment of profit of an organization. It has been
observed that the Union Bank is looking after all the basic requirements. The
management of Union Bank is concerned enough to accept and modify the desired
changes in their organizational setup to attract maximum customers.
There is no separate department for marketing in every branch only Karachi main branch
hold it. In every branch 2 or 3 people are there to provide the promotion services.
Marketing is done on high level because management is centralized. Now are discussed
four variables of marketing mix of Union Bank.
Product
Price
Placing
Promotion
Price
Placing
Marketing
Mix
Product
Promotion
Page 83 of 146
MCB BANK LTD.
MARKETING MIX - PRODUCT

"Any thing that can be offered to a market for attention, acquisition, use for consumption
that might satisfy a need. It includes physical object, services, persons, places,
organization and ideas."
- The largest network of 315 on-line branches in the country and growing,
providing customers with 24 x 7 real time online transaction facilities.
- Enjoy the convenience of extended banking hours from 9 to 5, even on

Saturdays for satisfying banking at all MCB Full Day Banking Branches all across the
country where customers are now served with wide range of services throughout the day.
A deposit account for customer with substantial balances, offering profit
on daily product basis with the facility of unlimited withdrawals.

MCB SPECIAL RUPEE TERM DEPOSITS MCBs Special Rupee Term Deposits
offer a very attractive long term investment option with ease and convenience. Tenors
option available is of 3 months, 6 months, 1 year, 3 years, and 5 years. Customers can
also avail a credit facility up to 75% of total deposits.
- The best protection for the valuables of MCB customers. Lockers of

different capacities are available nationwide.
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MCB BANK LTD.
- International remittances with a two way messaging facility

delivered at customers doorstep within 24 to 72 hours.
MCB ISLAMIC BANKING MCB Islamic Banking provides Riba Free and Shariah
Compliant solutions to various customer segments in a growing number of cities. With
the help of Shariah Specialties, lawyers and professional commercial bankers, MCB
offers the best solutions to cater their customers needs the Islamic way.
MCB CARDS A local point of sale acquiring network facilitating acceptance of all
major card brands.
- MCB Smart card and ATM card holders can avail cash withdrawal facility
at over 900,000 ATMs worldwide.
- MCB Smart card and ATM card holders can enjoy the convenience of
shopping at over 5 million POS locations globally.
- MCB provides the convenience of banking on the internet. Whether at

office, home or traveling, customers can log on to www.mcb.com.pk and enjoy 24 hour
access to customers for their accounts at MCB for the largest array of services.
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MCB BANK LTD.
- customers can call for answers to their queries about banking

services, ATM services, mobile banking services, RTC services, Tele banking services,
and MCB product information.
- MCB mobile banking brings banking to fingertips. Customers can

dial in anytime to get information regarding balance and mini statements.
- MCB has the largest network of ATMs with around 210 at present and is
still growing. Customers can get 24 hour convenience of cash withdrawal, mini
statement, bill payment, and funds transfer services.
- MNET is an electronic hub for ATM sharing plus other touch points.
Members include 12 local financial institutions enjoying ATM sharing and bureau
services. MNET is Pakistans largest operating switch with the highest transaction
volume.
- MCB easy bill pay is an easy solution to pay utility and mobile phone
bills. MCB ATM card and MCB Smart Card holders can easily pay their bills through
MCB ATMs, MCB Virtual Banking, and MCB Call Centre with security and peace of
mind.
Page 86 of 146
MCB BANK LTD.
- MCB customers can get a loan instantly at MCB Branches. MCB offers
same day financing facility against liquid collateral at competitive pricing.
CORPORATE FINANCING providing access to diversified financing options,
including working capital loans, term loans, trade finance services, and investment
banking.
- RTC is the most widely accepted way to pay cash for travel related
purposes. MCB RTC is a safe and secure way to make payments nationwide.
- MCB Business Sarmaya is a running finance facility against

residential property. It offers running finance up to 20 million with low mark up and BTF
facility at competitive rates.
- MCB Pyara Ghar is an ideal home finance product that allows

customers to purchase, renovate or construct their home the way the want to. Financing
available is up to 20 years for amount up to 20 million.
- MCB Car4U auto finance is the power move that gets customers not
only car of their choice but leads to the best in life. It is affordable with competitive mark
up, flexible conditions, easy processing and above all no hidden costs.
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MCB BANK LTD.
MARKETING MIX PRICE
"The amount of money that customers pay for the product"
Price should be commensurate with the offers perceived value. If it is not, customers will
turn to competitor's product. Prices offered by MCB Bank Limited are according to the
high quality services they render to their customers.
About the markup charges its vary banks to banks but not very much difference
according to my analysis. MCB bank has different tenure to different products so and
also the different rates to charge. They believe in the higher the amount the higher the
profit.
MARKETING MIX PLACE
"Place includes the various activities the company undertakes to make the product
accessible and available to the customer".
They also have a banking network of more than 950 branches. If you want financial
advice, walk into any of their branches. Head office and Main office is on the in Karachi,
which is the center of business activity. Locations of MCB Bank depend on the locality
around and how much business it supports. The services provided to customers too
depend on the location of the branch and its total deposits.
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MCB BANK LTD.
About the future development union bank is looking forward to open its more branches in
the various cities of Pakistan. This will create more flexibility and also give the
diversification to the bank.
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MCB BANK LTD.
MARKETING MIX PROMOTION

"Promotion includes all activities that an organization undertakes to communicate
and promote the products to customers. Promotion programs consist of advertising,
sales promotion and public relations."
At MCB Bank it is appreciated if staff member introduces new customers but usually it is
based on personal relations. Advertising is done in form of Neon signs and signboards.
They publish their brochures and pamphlets so that the information is communicated to a
large number of people. They distribute calendars, diaries and key chains to their officers
and customers.
No doubt MCB bank is doing promotion activities very strongly. The marketing
department knows the competitive environment very well. And the department is working
very well in this context. Promotion managers are using every media to advertise their
products as others banks are doing.
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MCB BANK LTD.
SWOT ANALYSIS
Page 91 of 146
MCB BANK LTD.
5.1 SWOT ANALYSIS

5.1.1 STRENGTHS
Services offering are all Unique and different to others.
Have the advantage of being the first mover in customer services.
MCB Bank able to give really good customer care, because they know that
customers are the source of funds for them and also there is a great competition
among the banks in Pakistan.
Very well and good atmosphere in bank.
Attractive deposits and financing schemes offer by MCB bank with suit able
interest rate.
MCB bank is currently in a good financial position
Great check on operations and working of business through the Mystery shoppers.
MCB Bank is always there, with absolute convenience and cutting edge
technology, to provide service beyond horizons.
Online banking is the key feature. Key benefits of MCB Bank Online system is its
simplicity, convenient banking solutions over phone, instant access to banking
services from anywhere at anytime, and saves time and money.
Use of SYMBOLS; banking software which produces greater customer
satisfaction by providing better services.
MCB bank has an edge over other banks with regard to its timings which are from
9am 5pm throughout the week and even on Saturdays.
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MCB BANK LTD.
Islamic banking is especially popular among religious people and is opted by

Muslims from all around the globe.
Various types of personal loans are offered to general public for e.g. Car4u, Pyara
Ghar etc.
MCB Banks virtual Banking provides greater convenience to customers as they
can handle their transactions from anywhere at anytime.
Diversification of their portfolio.
Greater network with more than 900 branches all around Pakistan.
Better control on losses.
Distinctive customer service provided to customers.
5.1.2 WEAKNESSES
Difficulty in managing the extended network of branches.

MCB Bank has various types of Debit card but it does not provide its customers
the facility of Credit Card.
Need to focus more Human Resource issues.
Shortage of staff, which causes extra burden on existing staff leading to fatigue
and boredom.
Inexperienced hiring process which results in placement of the wrong person at
the wrong seat.
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MCB BANK LTD.
5.1.3 OPPORTUNITIES
Changes in social patterns, population, and lifestyle changes and in economical.
Mean people now thinking to deposit their money in such a sound bank.
Good financial position creating a good reputation for future advances and huge
deposits.
The MCB bank is entering in a growing industry and also going to further expand
its branches all over Pakistan as well as internationally.
Such products or services which can give MCB Bank a monopolistic position.
5.1.4 THREATS
Large and increasing competition.
Threat of new entrants is always there.
Threat of new entrants leads to the tough competition.
Hundi system is still operating in Pakistan in growing rate, which is a great
threat of the Remittance department of the union bank limited.
Page 94 of 146
MCB BANK LTD.
FINANCIAL STATEMENT
ANALYSIS
Page 95 of 146
MCB BANK LTD.
6.1 FINANCIAL STATEMENT ANALYSIS
SIX YEARS PROGRESS REPORT
OPERATING RESULTS
2005
2004
2003
2002
2001
(Rupees in Million)
Mark-up / Return
17,756
9,084
10,370
15,386
17,033
Mark-up / Return expensed
2,781
2,058
2,933
6,075
7,545
Fee, Commission, Brokerage

and FX income
4,065
3,061
2,118
1,909
1,944
14,975
7,026
7,437
9,311
9,488
1,348
1,172
2,414
681
257
20,388
11,259
11,969
11,901
11,689
Provisions / write-off
1,072
429
831
722
2,256
Operating expenses
6,638
7,286
7,565
6,079
7,332
341
514
Operating Profit Before tax

and provision
14,091
4,487
4,444
3,822
4,357
Profit before taxation
13,079
4,058
3,613
3,100
2,101
Profit after tax
8,922
2,432
2,230
1,739
1,108
Dividends
1,215
843
843
666
606
853
337
307
400
Fund based Income

Dividend and Capital Gains
Total Income
Exceptional Items
Bonus shares
Page 96 of 146
MCB BANK LTD.
Page 97 of 146
MCB BANK LTD.
MCB BANK LTD

CONSOLIDATED BALANCE SHEETS
AS AT DECEMBER 31, 2005
ASSETS
Cash and Balances with treasury banks
Balances with other banks
Lending to financial institutions
Investments net
Advances net
Other assets net
Operating fixed assets
Deferred tax assets net
2005
2004
2003
2,366,549
1,469,333
9,998,828
69,481,487
180,322,753
5,464,426
8,182,454
191,967
298,776,797
23,833,253 24,053,669
5,708,323
1,302,592
10,965,297 10,430,450
67,194,971 128,276,842
137,317,773 97,200,179
6,265,397
6,477,064
7,999,821
4,582,823
259,284,835 272,323,619
8,536,674
27,377,502
229,345,178
1,598,280
8,611,600
275,469,034
7,566,684
8,396,320
8,693,965 32,627,951
219,966,057 211,511,393
1,598,720
1,599,360
6,398,239
6,372,596
314,154
707,306
244,537,819 261,214,926
LIABILITIES
Bills payable
Borrowing from financial institutions
Deposits and other accounts
Subordinated loan
Liabilities against asset subject to finance lease
Other liabilities
Deferred tax liabilities net
NET ASSETS
23,307,763
14,747,016
11,108,693
4,265,327
13,408,005
210,662
17,883,994
5,423,769
23,307,763
3,371,800
5,661,553
359,340
9,392,693
5,354,323
14,747,016
3,065,273
4,379,255
281,636
7,726,164
3,382,529
11,108,693
EQUITY
Share Capital
Reserves
Unappropriated Profit
Surplus on Revaluation of assets - net of tax
Page 98 of 146
MCB BANK LTD.

HORIZONTAL ANALYSIS
ASSETS

Investments - net
Advances - net
Other assets - net
Deferred tax assets - net
Increase or (Decrease)
2005 - 2004
PKR
%
(21,466,704
)
(90.07)
(238,990)
(74.26)
(966,469)
(8.80)
2,286,516
3.40
43,004,980
31.31
(800,971)
12.78
182,633
2.28
191,967
39,491,962
15.23
2004 -2003
PKR
%
(220,416)
4,405,731
534,847
(6,181,871)
40,117,594
(211,667)
3,416,998
(13,038,784)
(0.92)
338.20
5.13
47.62
41.27
3.26
74.56
(4.78)
969,990
18,683,537
9,379,121
(440)
12.81
214.90
4.26
(0.03)
(829,636)
(23,933,986)
8,454,664
(640)
(9.88)
(28.96)
3.99
(0.04)
2,213,361
(31,415)
30,931,215
34.59
12.65
12.64
25,643
(393,152)
(16,677,107)
0.40
(55.58)
(6.38)
8,560,747
58.05
3,638,323
32.75
893,527
7,746,452
(148,678)
8,491,301
69,446
26.50
136.80
(41.38)
90.40
1.29
306,527
1,282,298
77,704
1,666,529
1,971,794
9.99
29.28
27.59
21.56
36.82
8,560,747
58.05
3,638,323
32.75
LIABILITIES
Bills payable
Subordinated loan
Liabilities against asset subject to
finance lease
Other liabilities
Deferred tax liabilities - net
NET ASSETS
EQUITY
Share Capital
Reserves
Surplus on Revaluation of assets net of tax
Page 99 of 146
MCB BANK LTD.

VERTICAL ANALYSIS
ASSETS
Investments net
Advances net
Other assets net
Deferred tax assets net
Percentage of Total Assets

2005
2004
2003
%
%
%
0.79
9.19
8.83
0.49
2.20
0.48
3.34
4.22
3.83
23.25
25.91
47.10
60.35
52.96
35.69
1.82
2.16
2.37
2.73
3.09
1.68
0.06
100.00
100.00
100.00
LIABILITIES
Bills payable
Subordinated loan
Liabilities against asset subject to finance lease
Other liabilities
Deferred tax liabilities net
NET ASSETS
2.85
9.16
76.76
0.54
2.88
92.19
2.92
3.35
8.84
0.61
2.46
0.12
94.31
3.08
11.98
77.66
0.58
2.34
0.59
95.92
7.80
5.68
4.07
1.42
4.48
0.07
5.99
1.81
7.80
1.30
2.18
0.14
3.62
2.06
5.68
1.13
1.61
0.10
2.83
1.24
4.08
EQUITY
Share Capital
Reserves
Surplus on Revaluation of assets - net of tax
Page 100 of 146
MCB BANK LTD.
MCB BANK LTD

CONSOLIDATED INCOME STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2005
2005
17,756,232
2,781,468
14,974,764
2004
9,083,863
2,057,640
7,026,223
(98,982)
1,242,153
1,184
1,144,355
(172,876)
442,595
1,200
8,771
279,690
Net mark -up / interest income after provisions
13,830,409
6,746,533
NON MARK-UP / INTEREST INCOME

Fee, commission and brokerage income
Dividend income
Income from dealing in foreign currencies
Gain /(Loss) on investment
Gain / (loss) in trading in government securities
Other income
Total non - mark -up /interest income
2,448,950
430,344
531,455
866,895
851
1,084,576
5,413,071
1,992,356
378,908
492,738
804,419
(11,440)
576,007
4,232,988
Mark -up /return / interest earned

mark -up /return / interest expensed
Net mark-up /interest income
(Reversal) /provision for diminution in value of
investments
Provision against loans and advances
Provision for potential lease loses
Bad debts written off directly
19,243,480 10,979,521
NON MARK-UP / INTEREST EXPENSES
Administrative income
(Reversal) / other provisions
Other charges
Total non mark up / interest expenses
Exceptional item
Compensation on delayed tax refunds
PROFIT BEFORE TAXATION
Taxation - Current year
- Prior year
- Deferred
6,459,480
(72,740)
178,841
6,565,591
7,244,200
149,593
41,864
7,435,657
340,598
13,018,487
4,611,359
(149,763)
(365,524)
4,096,072
513,852
4,057,716
1,555,764
70,420
1,626,184
Page 101 of 146
MCB BANK LTD.
PROFIT AFTER TAXATION
8,922,415
2,431,532

HORIZONTAL ANALYSIS
PKR
%
(Reversal) /provision for diminution in value of investments
8,672,369
723,828
7,948,541
73,894
799,558
(1,200)
(7,587)
864,665
95.470055
35.1775821
113.126797
-42.743932
180.652289
-100
-86.500969
309.151203
7,083,876
105.000242

Dividend income
Other income
456,594
51,436
38,717
62,476
12,291
508,569
1,180,083
22.9172899
13.5747992
7.85752266
7.76659925
-107.43881
88.2921562
27.8782505
8,263,959
75.2670267
(784,720)
(222,333)
136,977
(870,066)
-10.83239
-148.62527
327.195204
-11.701266
(173,254)
8,960,771
3,055,595
(149,763)
(435,944)
-33.716712
220.832877
196.404789
-619.06277

Other charges
Exceptional item
- Prior year
- Deferred
Page 102 of 146
MCB BANK LTD.
2,469,888
151.882444
6,490,883
266.94623

VERTICAL ANALYSIS

(Reversal) /provision for diminution in value of
investments
Dividend income
Other income
Other charges
Exceptional item
- Prior year
- Deferred
Percentage of Profit after

taxation
2005
2004
199.01
373.59
31.17
84.62
167.83
288.96
-1.11
13.92
0.01
12.83
155.01
-7.11
18.20
0.05
0.36
11.50
277.46
27.45
4.82
5.96
9.72
0.01
12.16
60.67
215.68
81.94
15.58
20.26
33.08
-0.47
23.69
174.09
451.55
72.40
-0.82
2.00
73.59
297.93
6.15
1.72
305.80
3.82
145.91
51.68
-1.68
-4.10
21.13
166.88
63.98
2.90
Page 103 of 146
MCB BANK LTD.
45.91
66.88
100.00
100.00
Page 104 of 146
MCB BANK LTD.
RATIO ANALYSIS
Financial analysis, while varying according to the particular interest of the analyst,
always involves the use of various financial statements - primarily the balance sheet and
income statement and the cash flow statement. Financial analysis involves the use of
various financial statements.
The balance sheet summarizes the assets, liabilities, and owners' equity of a business at a
point in time, while the income statement summarizes revenues and expenses of a firm
over a particular period of time and about cash flow it tells the cash generated by the
bank.
A conceptual framework for financial analysis provides the analyst with an inter-locking
means for structuring the analysis. For example, in the analysis of external financing, one
is concerned with the firm's funds needs, its financial condition and performance, and its
business risk. Upon analysis of these factors, one is able to determine the firm's financing
needs and to negotiate with outside suppliers of capital.
Ratio analysis involves methods of calculating and interpreting financial ratios to analyze
and monitor the banks performance.
Interested parties
Ratio analysis of a firm, s financial statements is of interest to shareholders, creditors and
the firms own management. Both present and prospective shareholders are interested in
the firms current and future level of risk and return, which directly affect share price.
The firms creditors are interested primarily in the short term liquidity of company and its
ability to make interest and principal payments. A secondary concern of creditors is the
firms profitability; they want assurance that the business is healthy.
Management is concerned with all aspects of the firms financial situation and its
attempts to produce financial ratios that will be considered favorable by both owners and
creditors.
Page 105 of 146
MCB BANK LTD.
RATIOS
NET PROFIT RATIO Before tax = Profit before tax / Markup
earned
After tax = Profit after tax / Markup earned
OPERATING RATIO Operating cost = markup expense +

administrative expenses
Operating ratio = operating cost / markup

earned
OPERATING EXPENSE RATIO Administrative expenses / markup earned
YEAR
2005
2004
2003
13,018,487 / 17,756,232
4,057,716 / 9,083,863
= 73.31%
= 44.66%
8,922,415 / 17,756,232
2,431,532 / 9,083,863
= 50.24%
= 26.76 %
2,781,468 + 6,459,480
2,057,640 + 7,244,200
= 9,240,948
= 9,301,840
9,440,948 / 17,756,232
9,301,840 / 9,083,863
= 53.16%
= 102.39%
6,459,480 / 17,756,232
7,244,200 / 9,083,863
= 36.37%
= 79.75%
8,922,415 / 298,776,797
2,431,532 /
259,284,835
= 2.98%
= 1.01%
8,922,415 / 4,265,327
2,431,532 / 3,371,800
= 209.18%
= 72.11%
4,265,327 + 13,408,005
+ 210,662
3,371,800 + 5,661,553
+ 359,340
= 17,883,994
= 9,392,693
RETURN ON TOTAL ASSETS Profit after tax / total assets
RETURN ON SHARE CAPITAL Profit after tax / Share capital
RETURN ON EQUITY Shareholder's equity = share capital +

reserve + unappropriate profit
Page 106 of 146
MCB BANK LTD.
Return on equity = Profit after tax /

Shareholder's equity
NET PROFIT PER BRANCH Profit after tax / No. of branches
8,922,415 / 17,883,994
2,431,532 / 9,392,693
= 5.157%
= 25.89%
8,922,415 / 945
2,431,532 / 946
= 9441.7
= 2570.32
298,776,797 /
275,469,034 - 4,265,327
259,284,835 /
244,537,819 3,371,800
272,323,619 /
261,214,926 3,065,273
= 1.10 times
= 1.07 times
= 1.05 times
180,322,753/
229,345,178
137,317,773 /
219,966,057
97,200,179 /
211,511,393
= 78.62%
= 62.42%
= 45.95%
17,883,994 /
298,776,797
9,392,693 /
259,284,835
7,726,164 /
272,323,619
= 5.98%
= 3.62%
= 2.83%
2,366,549 / 229,345,178
23,833,253 /
219,966,057
24,053,669 /
211,511,393
= 1.03%
= 10.8%
= 11.37%
17,883,994 /
275,469,034
9,392,693 /
244,537,819
7,726,164 /
261,214,926
= 6.49%
= 3.84%
=2.95%
8,922,415 / 22,9345,178
2,431,532 /
219,966,057
= 3.89%
=1.10%
SOLVENCY RATIO Total assets / total liabilities - issued capital
ADVANCE TO TOTAL DEPOSITS Advances / Deposits and other accounts
PROPRIETY RATIO Shareholders equity / total assets
CASH TO DEPOSIT RATIO Cash / deposits
SHAREHOLDERS TO TOTAL LIABILITIES Shareholder's equity / Total Liabilities
RETURN ON DEPOSITS Profit after tax / Total deposits
Page 107 of 146
MCB BANK LTD.
= 92.19%
= 94.31%
Page 108 of 146
=95.92%
MCB BANK LTD.
COMMENTS ON FINANCIAL RATIOS

NET PROFIT RATIO
Net profit ratio is the best measure to have an idea about the overall profitability of any
organization. More of this ratio better it is. The NP ratio of MCB is increasing it is a good
sign.
OPERATING RATIO
The operating ratio measures the cost of operations per rupee of sales. It shows the
operational efficiency of the business. Higher the ratio, less profits available to share
holders. The MCB operating ratio has increased during the year and it is a negative sign.
This ratio should be between 75%-80%. But in year 2005 the ratio has declined to 53%
which is a sign that MCB this year has given more than usual profits to its shareholders.
OPERATING EXPENSE RATIO
The lower the ratio, better it is as it means the greater profitability. But this ratio of MCB
is constantly increasing as by passing years showing a decreased profitability for the
organization. But year 2005 has proved profitable for MCB as this ratio has declined by a
great margin.
RETURN ON TOTAL ASSETS
Return on total assets shows the use of total assets in financial year. This ratio has
increased during 2005 in MCB which is a sign of good performance.
RETURN ON SHARE CAPITAL
Higher the rate better for the owners. In MCB this ratio has increased by a very great
margin in 2005.
RETURN ON EQUITY
Return on equity is important for shareholders who want to know what profit earned will
be made available. This ratio for MCB has decreased in 2004 and in 2005 which is not
good a favorable sign.
Page 109 of 146
MCB BANK LTD.
NET PROFIT PER BRANCH

Net profit per branch is increasing which is the sign of its progress.
SOLVENCY RATIO
Solvency ratio determines the firm; ability to pay off its liabilities. MCB solvency ratio
has increased in 2005 which is a good sign.
ADVANCE TO TOTAL DEPOSITS It is in favor of bank if this ratio is lower. In 2005 this ratio has increased which is not
good.
PROPRIETY RATIO
Propriety ratio shows the claims of owners and outsiders on the assets of the firm. Higher
the ratio better for all concerned. In MCB this ratio has increased in 2005 to 5.98%which
is better for the organization.
CASH TO DEPOSIT RATIO
Cash to deposit ratio is important for banking sector. For MCB it was constant during
previous two years. This ratio shows that how much cash is available to meet the demand
of depositors. The bank should have reasonable cash balances to meet the customer
requirements against their deposits in bank. Ratio was decreased a little bit in 2004. But
in 2005 the ratios has declined to a very dangerous level which should be a matter of
concern for the bank.
RETURN ON DEPOSITS
When this ratio is higher, it is good for the bank. Return on deposits is increasing which
results in more deposits increasing business opportunities for the bank.
Page 110 of 146
MCB BANK LTD.
NET PROFIT MARGIN RATIO

Net profit margin ratio is constantly increasing for the bank which is a good sign for the
bank. This ratio is to show that is the proportion of net profit to the income of the
organization. It gives an idea about the income earning of the bank.
EARNINGS PER SHARE
This is very important ratio for shareholders and investor. The shareholders and investors
give the main emphasis to the earning per share while making the decision to invest.
Earning per share has increased in 2005 which is very good from the perspective of its
shareholders and investors.
DEBT TO TOTAL ASSET RATIO
Debt-to-Total Assets indicates the percentage of firms assets that are supported by debt
financing. In case of MCB Bank, this ratio is revealing a very large amount of debt duly
accompanied by large expenses of debt servicing. Further, this ratio is more and less
stable in all three years e.g. in 2004, it indicates that for every hundred rupees invested in
the bank, debtors and general creditors are providing 94.3% of return.
DEBT TO EQUITY RATIO
This ratio indicates the extent to which debt financing is used relative to equity financing.
This ratio is an important ratio as it is a direct comparison of internal and external
financing.
TOTAL ASSET TURNOVER
This ratio shows how actively the assets are being converted into income. This ratio is
continuously increasing indicating proper utilization of assets and more and more income
generation
Page 111 of 146
MCB BANK LTD.
TRAINING PROGRAM
Page 112 of 146
MCB BANK LTD.
7.1 TRAINING PROGRAM

During my six week internship program at MCB Bank Eden Centre Branch I worked at
the Accounts Opening department, Remittances, Clearing and Credit Department.
MCB Bank has various departments and among the general and international banking the
following departments perform their daily actions:
1. Cash department
2. Deposit department
3. Advances & credit department
4. Foreign exchange department
5. Technology department (new addition in order to cope with the growing needs of day
to day technology requirements)
CASH DEPARTMENT
The following books are maintained in the Cash Department:
Receiving Cash Book
Paying Cash Book
Token Book
Scroll Book
Cash Balance Book
Page 113 of 146
MCB BANK LTD.
DEPOSIT DEPARTMENT
Bank deals in money and they are merely mobilizing funds within the economy. They
borrow from one person and lend to another, the difference between the rate of borrowing
lending forms their spread or gross profit. Therefore we can rightly state that deposits are
the blood of the bank which causes the body of an institution to get to work. These
deposits are liability of the bank so from point of view of bank we can refer to them as
liabilities.
The total deposits of MCB are growing since its inauguration but after privatization there
is a sharp incline in over all deposits of the bank. The increase in deposits is also a cause
of increase on total number of accounts; bank has progressed in both aspects.
INTERNSHIP EXPERIENCE
The first task which was assigned to me was accounts opening. This develops
relationship among the bank and its customer.
Following is the procedure for opening an account
OPENING OF AN ACCOUNT
For opening an account, first of all an account opening form is required. This form is an
entry to the banking system through ones deposits in the form of cheques and cash.
Requirements
Two most important requirements for opening an account are
Original and photocopy of ID card.
Introduction
A person can be introduced by any staff member or by any account holder.
Page 114 of 146
MCB BANK LTD.
Type of Accounts
Current account
PLS Saving
Savings (FCY)
Term deposit
Notice deposit
Call deposit
Khushali Bachat
Others
Some of the most popular types of accounts and their opening procedure are mentioned
below
CURRENT ACCOUNT
In this type of accounts the client is allowed to deposit or withdraw money as and when
he likes. He may, thus, deposits or withdraws money several times in a day if he likes.
There is also no restriction of amount to be deposited or withdrawn. However, there is
requirement of minimum balance maintenance of Rs. 10,000/-. Usually this type of
account is opened by the businessmen. No profit is paid by the bank and no service
charges are deducted by the bank on current deposits account. These types of deposits are
also exempt from compulsory deduction of Zakat.
Page 115 of 146
MCB BANK LTD.
PLS SAVINGS
This type of account is for those persons who want to make small savings'. This type of
account is opened with a minimum deposit of Rs. 10,000/-. Under this scheme deposits
can be made only up to a-costing amount and withdrawals are allowed twice a week or 8
times a month. If a big amount is required a seven days notice is required before the
withdrawal. The profit is paid on these accounts on the minimum balance during a month
for the whole of that month. Zakat & other withholding taxes are deducted as per rules of
the government.
TERM DEPOSIT ACCOUNT

This is a type of term deposit in which a receipt is issued for varying tenors ranging from
1 month to 5 years or more. These are in the form of receipts and profit on these receipts
is paid biannually. These receipts are en-cashable after expiry of the period for which
they were issued. Different profit rates are applied to different type of TDRs.
KHUSHALI BACHAT ACCOUNT

This is an advance form of PLS saving a/c, in this type of account. The minimum balance
requirement for this type is Rs. 2500/-. There is also restriction on the number of
withdrawals as well, i.e. up to 4 times in a calendar month. For maintaining this extra
balance the customer gets the benefits of profit calculation on daily product basis and also
free service of standing instructions of paying utility bills and HBFC installments. All
other rules of saving account are applicable.
BASIC BANKING ACCOUNT (BBA)
Page 116 of 146
MCB BANK LTD.
This type of account is opened by those people who are employed on not very favorable
salaries, by students or by housewives. Rs. 1000/- is the minimum balance requirement
for this type of account with only two deposits and withdrawals per month.
Page 117 of 146
MCB BANK LTD.
ACCOUNT OPENING PROCEDURE FOR INDIVIDUAL ACCOUNT
The first step to open an individual account is to fill the account opening form SF 1AA
1 ( see annexure), Know your customer form SF-1B-1 (see annexure) which is then
checked by the operational manager and signatures are taken on a Signature Specimen
Card (usually known as SSC). After checking all the information the account is opened
on SYMBOLS and customer is then free to deposit or withdrawal any time. If the
customer is desirous of ATM card and Cheque book he has to fill out a form for ATM
request SF 1C revised (see annexure) and can collect after one week fro the branch.
The following are the requirements to open an individual account

1. Attested photocopy of computerized National Identity Card / passport of
individual.
2. In case of salaried persons, attested copy of his service card or any other
acceptable evidence of service, including, but not limited to a certificate from the
employer.
3. In case of a person unable to properly sign, two recent passport size photographs
of the new account holder besides taking his right and left thumb impression on
the specimen signature card.
4. In case of proprietorship account application on companys letter head along with
the rubber stamp.
Page 118 of 146
MCB BANK LTD.
ACCOUNT OPENING PROCEDURE FOR PARTNERSHIP ACCOUNTS
The first step to open a partnership account is to fill the account opening form SF 1AA
1 (see annexure), Know your customer forms SF-1B-1 (see annexure), of all partners,
which is then checked by the operational manager and signatures are taken on the
Signature Specimen Cards (usually known as SSC). After checking all the information
the account is opened on SYMBOLS and customers are then free to deposit or
withdrawal any time. If the customers are desirous of ATM card and Cheque book they
have to fill out a form for ATM request SF 1C revised (see annexure) and can collect
after one week from the branch.
The following are the requirements to open a partnership account

1. Attested photocopy of computerized National Identity Card of all partners.
2. Attested copy of Partnership Deed of Letter of Partnership (CF 13, in lieu of
the partnership deed, if not available) duly signed by all partners of the firm.
3. Attested copy of Registration Certificate with Registrar of firms. In case the
partnership is unregistered, this fact should be clearly mentioned on the Customer
Relationship Form.
4. Authority letter (SF 67) in original, in favor of a person, other than the partners,
authorized to operate on account of the firm.
Page 119 of 146
MCB BANK LTD.
ACCOUNT OPENING PROCEDURE FOR JOINT STOCK COMPANIES
The first step to open an account for a joint stock company is to fill the account opening
form SF 1AA 1 ( see annexure), Know your customer forms SF-1B-1 (see annexure),
of all partners, which is then checked by the operational manager and signatures are taken
on the Signature Specimen Cards (usually known as SSC). After checking all the
information the account is opened on SYMBOLS and customers are then free to deposit
or withdrawal any time. If the customers are desirous of ATM card and Cheque book they
The following are the requirements to open a joint stock company account
1. Resolution of Board of Directors for opening of account specifying. The
persons(s) authorized to operate the company account.
2. Memorandum and Article of Association.
3. Certificate of Incorporation.
4. Certificate of Commencement of Business.
5. Attested photocopies of CNIC of all Directors.
6. List of Directors in Form-29 issued for the Registrar Joint Stock Companies.
Page 120 of 146
MCB BANK LTD.
ACCOUNT
OPENING
PROCEDURE
FOR
CLUBS,
SOCIETIES
AND
ASSOCIATIONS
The first step to open an account for a Club, Societies and Associations is to fill the
account opening form SF 1AA 1 ( see annexure), Know your customer forms SF-1B1 (see annexure), of all partners, which is then checked by the operational manager and
signatures are taken on the Signature Specimen Cards (usually known as SSC). After
checking all the information the account is opened on SYMBOLS and customers are then
free to deposit or withdrawal any time. If the customers are desirous of ATM card and
Cheque book they have to fill out a form for ATM request SF 1C revised (see annexure)
and can collect after one week from the branch.
The following are the requirements to open a Clubs, societies and Associations1. Certified Copies ofCertificate of Registration.
By laws, Rules and Regulations.
2. Resolution of the Governing Body / Executive Committee for opening of account
authorizing the person (s) to operate the account and attested copy of the CNIC of
the authorized person (s)
3. An undertaking signed by authorized person on behalf of the institution
mentioning that when any change takes place in the persons authorized to operate
on the account, the bank will be informed immediately.
Page 121 of 146
MCB BANK LTD.
ACCOUNT OPENING PROCEDURE FOR MINOR-
The first step to open an account for a Minor is to fill the account opening form SF
1AA 1 ( see annexure), Know your customer forms SF-1B-1 (see annexure), of all
partners, which is then checked by the operational manager and signatures are taken on
the Signature Specimen Cards (usually known as SSC). After checking all the
information the account is opened on SYMBOLS and customers are then free to deposit
or withdrawal any time. If the customers are desirous of ATM card and Cheque book they
The following are the requirements to open a Minor-
1. In case of account being operated n the name of the minor (age below: 28 yrs), the
word MINOR be added to the title of account. The particular of the Guardian,
(if not one of the same account with the minor), be provided as required as
required under personal information in the account application.
2. Attested copy of CNIC of guardian along-with form B for minor is provided.
Page 122 of 146
MCB BANK LTD.
ISSUANCE OF ATM CARDS AND CHEQUES BOOKS
Customers who wish to apply for MCB ATM card or for their Cheques books have to fill
out an ATM request and a Cheques Book requisition slip. This is then posted online and
approved by the operational manager. The request is responded by MCB Banks head
office and Cheque books along with the ATM cards are sent to the requesting branch after
one week of time. Customers can then collect their ATM cards or their Cheque books any
time from the branch from 9am to 5pm. Their ATM cards are activated online and
Cheque books numbers are also posted online. Customers signatures are verified before
handing over the card or the Cheque book.
Customers are further advised to use their ATM cards after one-hour of activation as it
normally takes one hour for activation of the ATM card by the Head office. They are also
guided on the security issues e.g. pin codes, safety of Cheque books and careful handling
of ATM card.
Page 123 of 146
MCB BANK LTD.
REMITTANCES DEPARTMENT
One of the most frequently utilized banking services is transfer of funds of remittances
through banking channels. Funds can be transferred from one account to another account
or accounts between the branches of the banks. There are two kinds of remittances
KINDS OF REMITTANCES
Inward Remittances
Funds are coming in. It is favorable
Outward Remittances
Funds are going out. It is unfavorable
Local remittance can be done in following ways at MCB Bank Ltd
Pay order
Demand draft
Telegraphic transfer
Mail Transfer
Online transactions
Rupee traveler Cheques
Page 124 of 146
MCB BANK LTD.
PAY ORDER
Payment Order is meant for banks own payment but in practice it is also issued to our
customer r making payments.
A pay order is a written authorization for payment ,made in receipt form issued and
payable by the bank, to the person named and addressed therein on his giving a proper
discharge therein,
It is issued by and payable by the same branch of the bank.
It is neither transferable nor negotiable and as such it is payable to payee named
therein.
Pay order cannot be issued to a minor
A receipt form and therefore it is payable only after discharge of the payee on
adequate revenue stamps.
PARTIES TO PAYORDER
Following are the parties to the pay order
Purchaser
Is a person, firm, company, or local authority
Issuing / paying branch
Which issues / pays on presentation
Payee
Is the person named therein
Page 125 of 146
MCB BANK LTD.
PREPARATION OF A PAYORDER
The customer duly fills in the funds transfer application form SF-100
If the pay order is to be issued in cash a cash credit voucher is prepared, the customer
presents it at cash counter. The cash officer after receiving payment gives this to
remittance in charge.
If the pay order is to be issued in transfer, the customer presents its Cheque, through
which the account is debited. Entry in daybook and pay order issued register
The pay order is allotted a serial number according to ear of banks operation and serial
number of issuing branch to be allocated from register
Like PAB/57/925
In computerized branches, there isnt any need of a pay order register. So the record is
automatically updated in computer.
PAYMENT OF A PAYORDER
The pay order can be paid back in clearing or transfer.
Whenever a pay order is paid date is marked against the pay order register. (Not for
computerized branches), whereas it is paid in the system for automated branches.
ISSUANCE OF A DUPLICATE PAYORDER

In case a duplicate pay order is to be issued (like if it is misplaced / damaged or lost in
transit) a duplicate pay order can be issued.
A letter indemnity CF -15 is obtained from purchaser.
Page 126 of 146
MCB BANK LTD.
A note of damaged/lost pay order is made in register.
BALANCING OF PAYORDER
Pay order account is balanced once a week as well as on monthly basis.
UNCLAIMED PAYORDERS
Pay orders which are outstanding for more than 3 years are transferred to Unclaimed
balances accounts.
DEMAND DRAFTS
Demand draft is a written order, drawn by one branch of the bank upon another
branch of the same bank, or upon other bank under special arrangements to pay a
certain sum of money to or to the order of specified person.
Demand draft is a negotiable instrument. Demand draft is not issued and payable
to bearer nor drawn on branches in he same city.
PARTIES TO DEMAND DRAFT
PURCHASER
Is the person, name or company or any firm
ISSUING OR DRAWING BRANCH

This issues a draft on another bank
DRAWEE BRANCH
Page 127 of 146
MCB BANK LTD.
Is one on which a draft is drawn
PAYEE
Person named therein for whom it is directed to pay
PROCEDURE FOR ISSUANCE

An application on SF -100 is obtained by the customer
The application form is scrutinized by the officer.
The officer prepares cash credit voucher (according to bank schedule of charges)
The commission and postage on demand draft is levied according to the amount.
Customer may give a Cheque in favor of MCB if he desires the amount to be
debited thorough his account.
Cheque number is written on sf-100
Both the Cheque and application is taken in daily transfer sheet for balancing.
For issuance of draft the amount and particulars are written in DD Register.
The serial number of an issued draft constitutes its printed serial number, the year
of banks operation and the number of DD issued on the particular branch.
2000125/7/25
Then it is signed by two officers.
As remittance in charge I put first signatures on the DD whereas my immediate
boss (manager Operations) scrutinizes the prepared DD and writes his IBS after
signatures.
An Inter branch DD advice SF -177 is prepared favoring issuing branch.
The following particulars are mentioned on the advice ,
Page 128 of 146
MCB BANK LTD.
Serial #
Payees name
Amount of DD
Printed # of DD leaf.
Then test is applied on DD as well as on advice.
The DD amounting Rs. 10000/- and above are applied test.
Whereas an advice amounting Rs.25000/- and above is applied with test.
The advice is sent to relevant branch for the purpose of intimation of draft
issuance.
PAYMENT OF DEMAND DRAFT

When a draft is presented by the payee or it is presented by the collecting banker for
payment it is scrutinized by the following manner
DD is drawn on the branch to which it is resented
DD is not older than ^ months,
An advice has been received and responded from relative branch.
PAYMENT IN CASH
The identification of payee is required if the DD is to be paid in cash.
In case payee is customer of branch his signatures are verified
PAYMENT IN TRANSFER / CLEARING
For payment in clearing it should be checked that Demand draft bears a special crossing
of the collecting branch. All endorsements are regular.
Page 129 of 146
MCB BANK LTD.
DRAFTS PAID SUSPENSE ACCOUNT

Sometimes a demand draft is presented for payment, the advice of which has not
been received from DD issuing branch. In such case draft is paid from DD paid
suspense Account.
When original DD advice is received the amount is debited from DD PAID
suspense account and credited to DD paid suspense account.
TELEGRAPHIC TRANSFER
A telegraphic transfer is issued or transfer of funds from on branch of the bank to
another branch of the same bank.
The message is conveyed through fax or phone.
Telegraphic transfer is not negotiable.
Funds transferred through TT are payable to payee only.
Following Re the parties to Telegraphic transfer
Applicant
A person, firm, company or local authority who desires to remit funds to another branch.
Drawee branch
On which TT is issued
Payee
The person named therein to pay.
The instructions are sent to drawee branch through coded language called test
Page 130 of 146
MCB BANK LTD.
ISSUANCE OF TT
The customer fills the funds transfer application form.
Full name of payee is mentioned on the form,-.
Instructions regarding payment are given like whether the TT is to be credited in
payees account or on proper identification of banker through ADVICE & PAY
A record in TT issued register is made separately branch wise
Charges are taken either in cash or through debiting the account of customer
through Cheque or voucher.
A TT number is allotted to each TT .it is serial # an telegram #
LIKE 14R 5
The message is written on SF -119
The entry is also recorded at telegram dispatched register.
Then the test is applied by the authorized officer.
Then a confirmation of cable sent is prepared on SF 189-A containing
Telegram serial number
Remittance number
Mode of payment
Amount
Name of beneficiary
Account number
Test number
The message is conveyed through telephone, or fax or mail.
Page 131 of 146
MCB BANK LTD.
PAYMENT OF TT
When a TT is received at drawee branch, it is recorded in telegram received
register and TT payable registers.
TT is scrutinized
Test number is verified
If there is any difference in test the issuing branch is referred.
TT vouchers are prepared.
Debit: Head office (issuing branch)
Credit: TT payable account (sf-10)
Debit: TT payable
Credit: customers account
Vouchers are signed by officer and amount is credited in customers account.
MAIL TRANSFER
Transfer of funds through mail / courier service is called Mail transfer
Mail Transfer is not negotiable.
The procedure for application and parties to TT is same.
ISSUANCE OF MT
The customer fills in the form SF-100
Amount is either paid in cash or through Cheque.
An entry is made in MT issued registered.
Page 132 of 146
MCB BANK LTD.
The number is allotted through branch wise serial.

Mail transfer advice is prepared on sf-178
Two copies are sent to branch whereas third copy is kept as credit voucher.
Test is applied on MT and it is dispatched.
HANDLING OF MT AS DRAWEE BRANCH
When a mail transfer is received it is scrutinized by the authorized officer.
Test is checked.
IBS (inter branch signatures) are verified.
Particulars are entered in MT payable register.
Amount is credited in customers account.
CROSS BRANCH TRANSACTION

Nowadays TT & Mt is replaced by cross branch or online transaction .The facility is
available only in some branches .The branches in remote areas still rely on TT & MT.
POCEDURE FOR CROSS BRANCH TRANSACTION

The customer fills in the form SfF-176
The form contains particulars as
Name of the payee
Account number of beneficiary and code of branch
Amount to be transferred
Name and address of the depositor
Purpose of remittance
Page 133 of 146
MCB BANK LTD.
Charges are recovered either in cash or by debiting the account

Customer pays cash or a Cheque
Amount is transferred at the same time to the payees branch.
RUPEE TRAVELLER CHEQUES

SALE OF RTC
Name and address of purchaser is written on RTC 10
RTC number is written on RTC-10
Customers signatures are obtained on copy of RTC-10
Customer is handed over a copy of RTC and RTCs sold
The proceeds are credited to RTC Division Karachi by an advice.
Entry is recorded in RTC stock register.
PURCHASE OF RTC
The RTCs can be paid in cash or in transfer
When an RTC is received following procedure takes place
Crossing stamp is marked on face of RTC
Transfer or cash stamp is marked
Signatures of the authorized office of issuing branch are verified
Payee Account Credited is marked on the back.
Signatures of the holder on the upper left corner of RTC are checked.
Date of payment is marked on RTC.
Page 134 of 146
MCB BANK LTD.
In case of cash customer must possess the C copy of RTC. (Given to the customer
at the time of purchase) otherwise the RTC will be credited into account.
Page 135 of 146
MCB BANK LTD.
CLEARING DEPARTMENT
Every banker acts both as a paying as well as a collecting banker. It is however an
important function of crossed Cheques. 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 payment 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 Cheque
or draft may cross the instrument generally or specially. It further lies down that a crossed
Cheque can only be paid to a banker, who collects it for a customer in good faith and
without negligence.
TYPES OF CHEQUES COLLECTED

Transfer Cheques: are those Cheques, which are collected and paid by the same branch of
bank.
TRANSFER DELIVERY CHEQUES
Are those Cheques, which are collected and paid by two different branches of the same
bank, situated in the same city.
CLEARING CHEQUES
Are those Cheques, which are drawn on the branches of some other bank of the same city
or of the same area, which is covered by a particular clearing house.
Page 136 of 146
MCB BANK LTD.
COLLECTION CHEQUES
Are those Cheques, which are drawn on the branches of either the same bank or of
another bank, but those branches, are not in the same city or they are not the members of
clearing house.
FUNCTIONS OF CLEARING DEPARTMENT

To accept Transfer, Transfer delivery, clearing and collection Cheques from the
customers of the branch and to arrange for their collection.
To arrange the payment of Cheques drawn on the branch and given for collection
to any other branch on MCB or any other members or sub member of the local
clearing house.
To collect amount of Cheques drawn on members, sub-member of local clearing
house, sent for collection by MCB Branches, not represented at the local clearing
house.
RECEIVING & SCRUTINY OF CHEQUES
Receiving and scrutinizing the Cheques and other deposit instruments, and the
pay-in-slip at the counter.
Fixing the stamps.
Scrutiny and receipt by the authorized officer.
Returning the counter file to the depositor.
Certificate and confirmation by the officer in charge of the department. ,
Separating the Cheque into transfer, transfer delivery, and clearing Cheques.
Page 137 of 146
MCB BANK LTD.
BANKERSHOULD CHECK THE FOLLOWING

The instrument should be neither stale/ nor post-dated.
If the instrument is crossed not negotiable it can be for the third party (an
endorsee of an order Cheque, or a holder of bearer Cheque).
The Instrument should not bear any unauthorized alternation.
The instrument should not be mutilated.
The amount in words and figures should be same.
The instrument should be drawn on any local branch.
If cheque is "crossed Account Payee's" only or "Payee's Account", it should only
be accepted for collection for the payee's account.
The cheques or drafts should not be crossed specially to any other bank.
A cheque payable to a firm should not be accepted for credit to a partner's
account.
A cheque payable to one of the joint account holders should not be collected for
the joint account without the payee's endorsement, or consent.
A cheque drawn by a customer in the capacity of agent, Attorney, or Manager of
his company or firm, should not be collected for credit to his personal account.
Pay orders, although negotiable should not be collected for third parties.
Do not collect an instrument in the account of an agent or of the servant of the
payee or endorsee of the instrument.
Not transferable" instruments, like Telegraphic Transfer, or Mail Transfer
Receipt, Pay-slips, and Treasury Receipts, should be collected for a person other
payee.
Page 138 of 146
MCB BANK LTD.
If an account is new or the balance or operation of the account is not satisfactory,

satisfy your self about the title of the customers to the instruments before
accepting the deposits.
Branch agent's permission should be obtained before accepting a third party
Cheque or draft for the credit of the member.
If the payee is a Government Department, Government Official, or a trust account
the instrument cannot be collected, but for the payee's account.
If the payee of an instrument is UBL, it can be collected for credit of the drawers
account, or the amount of the instrument may be utilized as desired by the drawer
in writing.
Cheque payable to a trust, account should not be collected for credit to a trustee's
account.
All the endorsement should be regular, and no endorsement should be missing.
CREDITS DEPARTMENT
Advances are the most important source of earning for the banks. MCB is also giving full
attention towards this aspect and it is also obvious from the growing portfolio of
advances and from very low delinquency rate. The credit portfolio of this institution is in
a very much better shape than other financial institutions of Pakistan and the credit goes
to the management and the staff who are concerned about the quantity and quality as
well.
1)
Loans
2)
Cash Credits
3)
Overdraft
Page 139 of 146
MCB BANK LTD.
LOANS
Loans are monetary assistance by a financial institution to a business, individual etc. The
loans are granted by the bank in lump sum, so these types called fixed or demand loans.
Interest is charged on the whole amount of a fixed loan.
The borrower withdraws whole the amount of loan. This type of loan is normally granted
against security of gold documents.
In case of demand loans against gold or documents, a demand promissory note for the
amount of loan is taken from the borrower loans are granted under;
REQUIREMENT FOR LOAN

For granting loan to any party or individual, the bank checks following particulars of the
client:
Credibility
Feasibility Report
By Credibility, bank judges the credibility of the client by his past bank record, CBI
report etc. it is very important in making decision about giving him loan.
Feasibility report is on the running or proposed business of the client. The report enables
the bank to judge the likely return of the business.
TYPE OF FACILITY
Basically two types of facilities are available in banks
Funded facility
Non funded facility
Page 140 of 146
MCB BANK LTD.
FUNDED FACILITY
Running finance
Cash finance
Demand finance
RUNNING FINANCE
The running finance facility is available for enhancement of business and
customers working capital
In running finance markup is charged only on the amount utilized by customer.
This facility is given against equitable and registered mortgage
The stock is hypothecated by bank.
The customer can get his limit renewed after an year.
The rate charged by the bank on cash credit in 46 paisa per thousand on daily
basis.
CASH FINANCE
Cash finance is basically given against the pledge of stock or stock in trade
The amount is adjusted as the goods are released from godown.
DEMAND FINANCE
Demand finance is also given against hypothecated
This type of loan is advanced in lump sum amount
The customer repays the loan in monthly equal installments.
Page 141 of 146
MCB BANK LTD.
FUNDED FACILITY
Running finance
Cash finance
Demand finance
Payment against documents
Finance against imported merchandise
Finance against trust receipt
Export finance
Foreign bill purchased
Others
NON FUNDED FACILITY
Letter of credit
Letter of guarantees
Bid bonds
Performance bonds
Other facilities
Page 142 of 146
MCB BANK LTD.
GENERAL INFORMATION OF BRANCH
Branch manager
Mr. Atta Ullah
Operations manager
Mr. Gulzaar
Credit Manager
Miss Kulsoom
In charge remittances
Rafia Riaz
Clearing in charge
Mr. Adnan Arif
Customer services Officer
Miss Sadia Ismail
Key punch operator
Muhammad Owais
Floor Manager
Mr. Butt
Cash officer
Haji Mohammad
Cash officer 2
Shehzad
Page 143 of 146
MCB BANK LTD.
CONCLUSION
Page 144 of 146
MCB BANK LTD.
8.1 CONCLUSIONS AND RECOMMENDATIONS
The Bank has now completed more than 15years, since its privatization and it is, indeed,
gratifying to note that during this period, MCB has performed well and has sustained its
growth in all the major sectors.
MCB has been a pioneer among the banks in Pakistan, particularly in introducing a
number of innovative banking products and services. For the first time in the history of
Pakistan, these multifarious products mostly in the shape of saving schemes have been
introduced by MCB with brand names. This has set the trend and many other banks, both
local and foreign, have since followed in MCBs footsteps, by launching new products
and services, on similar lines. The well deserved credit, for this good performance and
progress, must surely go to the Banks management, its Directors and, in no small
measure, to the entire MCB team for its dedication, concerted efforts and excellent team
spirit.
RECOMMENDATIONS
Today the biggest challenge for banking industry in Pakistan is to retain existing
customers and tap new avenues to capture potential customers. As the spreads are
increasing the emphasis has shifted to high volume of profitable transactions. The key to
achieve this objective lies in dealing with the customers effectively and meeting their
expectations on a continuous basis.
Page 145 of 146
MCB BANK LTD.
This is the transformation of banking from product orientation to customer orientation.

Initially it was believed that banks are in finance industry and not in service industry but
now image has changed .For survival quality is the challenge in this era of cutthroat
competition .high deposits and high profits are not the only source of survival.
So the paradigm shifts customers and services become the life blood of any business.
Change in banking trends demand new type of banking services delivered actually in new
ways and new resources.
Therefore Following are my observations and suggestion to improve the efficiency more
for the development of the economy and improve market standing
Foreign branches should be opened in order to capture the international

market and to earn international repute for the bank.
Working environment, equipment, furniture and staff dressing should be
according to the modern banking style.
Proper attention should be paid to upgrade customer services especially in
rural areas.
More branches should be automated in order to survive through the cutthroat
competition.
Employees should be given refresher courses.
The management should employ job rotation policy to retain the interest of the
employees in job.
Page 146 of 146

1.1 History and Background - : 1.1.2 Introduction

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1.1 History and Background - : 1.1.2 Introduction

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MCB BANK LTD.

MCB BANK LTD.

MCB BANK LTD.

MCB BANK LTD.

1.1.3 HISTORIAL BACKGROUND

MCB BANK LTD.

1.1.3 REVOLUTIONS IN MCB

MCB BANK LTD.

1.1.4 MISSION STATEMENT

1.1.5 THE BUSINESS

1.1.6 MCB PHILOSOPHY

MCB BANK LTD.

1.1.7 MARKET STANDING

MCB BANK LTD.

BEST BANK IN PAKISTAN 2005

BEST BANK IN PAKISTAN AWARD 2004

BEST BANK IN PAKISTAN AWARD 2003

MCB BANK LTD.

BEST BANK IN PAKISTAN AWARD 2002

BEST DOMESTIC BANK AWARD 2000

ASIA MONEY AWARDS

THE BEST DOMESTIC COMMERCIAL BANK AWARD 2005

THE BEST DOMESTIC COMMERCIAL BANK AWARD 2004

MCB BANK LTD.

1.1.8 PRESS RELEASES

MCB BANK LTD.

MCB BANK LTD.

ASIA MONEY AWARDS

MCB BANK LTD.

NORMAL OPERATIONS OF THE BANK

9am to 1pm 3pm to 5pm

MCB BANK LTD.

National Bank of Pakistan

MCB BANK LTD.

1.1.7 OBJECTIVES OF ORANIZATION

CREATING AND MANAGING VALUES

BEST PLACE TO WORK

MCB BANK LTD.

MCB BANK LTD.

MCB BANK LTD.

MCB BANK LTD.

2.1 MANAGEMENT SYSTEM

MANAGEMENT OF MCB BANK LTD

Sheikh Mukhtar Ahmed

Mian Umer Mansha

Sheikh Mukhtar Ahmed

CHIEF FINANCIAL OFFICER

MCB BANK LTD.

MCB BANK LTD.

MCB BANK LTD.

2.1.1 ORGANIZATIONAL STRUCTURE OF MCB BANK LTD

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

MCB BANK LTD.

PROVINCES WISE BRANCHES

MCB BANK LTD.

NUMBER OF BRANCHES IN DIFFERENT LOCALITIS

MCB BANK LTD.

2.1.2 ORGANIZATIONAL STRUCTURE

MCB BANK LTD.

LINE OF BUSINESS (LOB) ORGANIZATION

MCB BANK LTD.

2.1.3 MANAGEMENT HIERARCHY