Professional Documents
Culture Documents
Preface
Yasir Ayaz
Executive Summary
DEFINITION OF BANK
The term 'bank' is being used for a long time, yet it has no precise
definition. The basic reason is that the commercial banks perform not
just one but many types of functions. The term bank has been defined
differently by different authors. Some are as follows:
According to Crowther,
History of Banking
Evolution of Banking
It has not so far been decided as to how the word ‘Bank’ originated. The
explanation of this origin is attributed to the fact that the Jews in
Lombardy transacted the business of money exchange on branches in
the market place and when the business failed, the people destroyed the
Bank. Incidentally, the word ‘bankrupt’ is said to have been evolved from
this practice. The opponents of this opinion argue that it was so, then
how is that the Italian moneychangers were never called ‘Banchierei’ in
the Middle Ages?
Other authorities hold the opinion that the word ‘Bank’ is derived from
the German word back which means joined stock fund. Then ‘Back’ was
Italianize into ‘Bank’.
Early Growth
Banking in fact is as primitive as human society for ever since man came
to realize the importance of money as a medium of exchange. Perhaps it
was the Babylonians who developed banking system as early as 2000
B.C. It is evident that the Temples of Babylon were used as ‘Banks’
because of the prevalent respect and confidence in the clergy.
It is not certain as to who invented money but history recess that king of
Lydia castled electrum ingots of identical shapes and of uniform weights
with a triple emblem engraved on it as an official guarantee of value in
687 B.C. In 1401 a German public bank was framed comprising the
operations of discounting and transferring of money. By the 16th century,
some more public banks were formed in Venice, Milan, Amsterdam,
Hamburg and Nuremburg. In order to streamline Banking organizations
and techniques, conferences were held in Nuremburg from 1548 to 1551
and it was agreed that the commercial interest of the time needed a
bank with facilities of growth and transfer but it should not be a bank run
by private individuals. Ultimately in 1587, a State Bank under the name
of banco DI rialto was formed in Genoa. Later the bank of Amsterdam
was also formed in 1609. This Bank had a guarantee by the State and
rendered valuable services to the Netherlands traders up to the year
1795.
Banking In Pakistan
At the time of independence, there were 631 offices of scheduled banks
in Pakistan, of which 487 were located in West Pakistan alone. As a
new country without resources it was very difficult for Pakistan to run its
own banking system immediately. Therefore, the expert committee
recommended that the Reserve Bank of India should continue to
function in Pakistan until 30th September 1948, so that problems of time
and demand liability, coinage currencies, exchange etc. be settled
between India and Pakistan. The non-Muslims started transferring their
funds and accounts to India. By the end of June 1948 the number of
officers of scheduled banks in Pakistan declined from 631 to 225. There
were 19 foreign banks with the status of small branch offices that were
engaged solely in export of crop from Pakistan, while there were only
two Pakistani institutions, Habib Bank of Pakistan and the Australasia
Bank. The customers of the bank are not satisfied with the uncertain
condition of banking. Similarly the Reserve Bank of India was not in the
favor of Govt. of Pakistan. The Govt. of Pakistan decided to establish a
full-fledge central bank. Consequently the Governor-general of Pakistan
Quaid-I-Azam inaugurated the State Bank of Pakistan on July 1, 1948.
Thus a landmark was made in the history of banking when the state
bank of Pakistan assumed full control of banking and currency in
Pakistan.
The Government of Pakistan in the late 90’s introducing the need for the
privatization of state owned banks and companies. The private sector
has accepted the challenge and most of the banks are privatized today.
The State Bank of Pakistan issues the shares of these periodically.
Bank employees and other common peoples can also purchase these
shares and earn profit.
Indian Companies Act, VII of 1913 as a limited company. The bank was
established with a view to provide banking facilities to the business
community of the South Asia. The bank was nationalized in 1974 during
the government of Zulfikar Ali Bhutto subsequently in June 1974 Premier
Bank Limited merged with MCB. This was the first bank to be privatized
in 1991 and a consortium of Pakistani corporate groups led by Nishat
Group purchased the bank. As of June 2008, the Nishat Group owns a
majority stake in the bank.
Mian Mohammad Mansha is the Chairman of the group (and also MCB)
and has played instrumental role in its success. In recognition of Mr.
Mansha’s contribution, the Government of Pakistan has conferred him
with "Sitara-e-Imtiaz", one of the most prestigious civil awards of the
country.
Vision Statement
Mission Statement
MCB Values
Integrity
We are the trustees of public funds and serve our community with
integrity. We believe in being the best at always doing the right thing. We
deliver on our responsibilities and commitments to our customers as well
as our colleagues.
Respect
Excellence
Customer Centricity
Innovation
We encourage and reward people who challenge the status quo and
think beyond the boundaries of the conventional. Our teams work
together for the smooth
Corporate Profile
Chairman
Mian Mohammad Mansha
Vice Chairman
Mr. S. M. Muneer
Audit Committee
Mr. Tariq Rafi
External Auditors
KPMG Taseer Hadi & Co.(Chartered Accountants)
Shareholders Details
Share Perc
Description
holding entage
MCB Achievements
President and CEO MCB Bank Atif Bajwa was awarded “The Qatar
Financial Centre (QFC) Asian Banker Leadership Achievement Award
2010” for Pakistan. MCB Bank was also the recipient of “The Strongest
Bank” award for being Pakistan’s best-performing financial institution.
Euromoney Awards:
Structure of MCB
(Contd…)
(Contd…)
Procedure
The procedure begins with the punching of account opening form to the
customer file i.e. customer’s master file. The manager records the
necessary details into this register and allots an a/c number from this a/c
opening register. This register is maintained for each type of account
and the a/c no’s are allotted serially. After opening a saving and current
account every applicant’s data is entered into the computer to maintain a
safe record and application form is properly filled so that it can be
available when necessary. Checking officer is responsible to Tele the
manual application form with the computerized a/c opening file. For
fixed deposit only that application form is needed this is prepared
manually, because most of the procedure of fixed deposit is done
manually. The signature specimen card contains three signatures of an
applicant, applicant a/c no, a/c type, branch code, title of a/c, it will be
attached with an application form. Banker uses this card at the time
when he receives the amount.
Account Types
• Single
• Joint
• Partnership
• Private Limited
• Public Limited
Single
Only one person can operate this a/c. An individual who can fulfill the
requirement of bank can open this a/c. We can call it a personnel or
individual a/c. The requirements for this type are National Identity Card
Photocopy, Minimum Deposited Balance, Account Opening Form, Letter
of Kinship etc.
Joint
In case of joint a/c applicant mentions that how much person will operate
the a/c. Instruction are given for joint a/c such that the account shall be
operated by anyone or more. The requirements for this type are National
Identity Card Photocopy, Minimum Deposited Balance, Account Opening
Form, Letter Kinship, Additional Signature Form (For Joint Account),
Declaration regarding the operator of account.
Partnership
For partnership a/c, along with the application form other requirements
needs satisfied.
The requirements for this type are National Identity Card Photocopy,
Minimum Deposited Balance, Account Opening Form, Registration
certificate, agreement among partners and Commencement of business
and private registration, resolution of board of directors, commencement
of business, memorandum and articles of association and balance sheet
etc.
Private Limited
Such type of account is opened in the name of the businesses having
private limited concern and mostly medium business enterprises open
such kind of accounts. All the board of directors have to submit the
declaration regarding the account operator on the company pad and with
the rubber stamp with the signature of the all the members of the board
of directors. In case of any change in director bank must be informed
regarding that. In case funds are borrowed by the company all the
directors approval is necessary rather not only the authorized partner
who can be the operator of the account.
Public Limited
Note: Each cheque book contains a white color page which is necessary
to obtain next cheque book to accountholder.
Closing of an account:
There are some conditions under any of them account can be closed or
blocked.
• On court orders
Dormant account means when customer does not make any transaction
(Dr or Cr) to his/her account. With above mention condition after 6 month
account automatically becomes dormant. To withdraw amount customer
will have to first active the account.
• Dormant application
• CNIC copy
• NADRA verification
• Customer will have to deposit sum of amount
Products:
Locker Facility:
FEATURES
Accounts Department
Remittance Department
Pay Order:
Pay order is used when customer wants to payment some one and the
party want secured payment mode. Pay order does not dishonor as
cheque. It is written order issued by the bank drawn and payable on
itself. It is used for local transfer of money from one person to another
person.
Pay order charges: Rs 75/- for accountholder and Rs 250/- for non-
accountholder (walking customer/ in cash).
Online Transfer:
When branches were not online for transfer of out station branches of
bank TT (Telegraphy Transfer) were use. In this way message was sent
through FAX or through email. But now its time to be connected via
internet globally and branches are online. Now other branch account can
also be access and can be debited or credited when needed.
First SF-100 been filled. This form contain information about beneficiary
name, account number, branch code, accountholder name, account
number and Two signature of applicant. Online transfer can be through
cheque or by cash. In case of cash online CNIC copy is essential. Online
charges are as follows: Commission 100, FED 16 and in case of cash
online 0.3% if amount is more than Rs. 25,000.
Cash Department
• Cash online
• Cash deposited by customer
• Cash received against any utility bill
• Cash withdrawal by customer through cheque
Clearing Department
bank of Pakistan has extended the service of Clearing House. MCB will
receive all the cheques drawn by other banks. Finally they exchange
their cheques mutuality. MCB representative will give cheques of UBL,
HBL, ABL, NBP, and SBP to their representatives, and get the cheques
drawn on MCB from this representative.
Steps in clearing:
Treatments:
Credit Department
• Fund Based
• Non Fund Based
In the fund base advances, the funds of MCB is involved and in Non
Fund based only guarantee is given by the bank.
In fund based loan bank actually grant real cash to borrower against any
security.
In this case bank does not actually handover cash to borrower instead
issues guaranties.
MCB CAR4U
Flexible
Agriculture loan:
Eligibility Criteria
Documentation
Security
The intending borrower is advised to visit the nearest MCB Branch for
information. This will enable him to discuss his / her requirements and
have first hand information on every aspect of the process through face
to face interaction.
Bank shall consider only those credit proposals for financing which are
viable. However, as a general rule, bank will always obtain adequate
Valuation of Properties:
The property offered as security outside the Pass Book will be valued by
bank's approved evaluators. Branch Manger / officer personally visits the
Agriculture land / property before accepting the same as security. The
Market Value / FSV of agriculture land or rural/urban property shall also
be assessed by Branch Manager / AMM / AMO as independent inquiries
to ensure that market price is realistic and not exaggerated. Market
value of Agriculture land may be accepted (calculated by revenue
department) taking three years average "Baiy" of same locality.
Note: agri loan are categories in tow heads and products are also
divided according to these heads.
• Farm based
• Non Farm based
Farm Credit
These are the credits provided by the MCB for the purchases of inputs
for development of agriculture sector. Following are two main sub
classes of Farm Credit.
• Production Finance
• Development Finance
Production Finance:
These are short term loans. These loans are provided to farmers for
purchases of different type of input, for example, Seeds, Fertilizers, and
Pesticides. These loans are provided against personal guarantees or
mortgage of land as a security.
Development Finance:
These are medium or long term loans. These loans are provided for the
development of agriculture sector. Main purpose of these loans is to
purchase instrument:
• Tractors
• Installation of tube-well
• Planting of garden
The loans are disbursed against security of land (mortgage) or any other
security acceptable to bank.
• Fish Farm
• Cattle Farm
• Poultry Farm
• Dairy Farm
• Shadabi Plan
• Khushali Scheme
• Tractor Finance Scheme
• Aabiari Scheme
• Dairy and Meat Plan
• Murghbani Scheme
• Baghbani Scheme
MCB Card
Make bill payments upto Rs. 20000 per day per card.
Funds Transfer
Balance Inquiry
Mini Statement
MCB Visa Platinum Credit Card members can avail the comfort of CIP
lounges at no cost at all. Just present your MCB Visa Platinum Credit
Card and relax in the CIP lounge at Karachi, Lahore and Islamabad
International airports.
• Access to over 600 airport VIP lounges in over 100 countries and
over 300 cities – so you can treat yourself like a VIP no matter
where you travel, or which airline and class you fly.
• Peace and quiet – relax and unwind away from the chaos of the
airport, and enjoy a range of complimentary refreshments.
• Full business facilities – most lounges offer phone, fax, email and
internet facilities, some even have conference rooms.
• Excellent value for money – three membership plans designed to
offer you VIP airport lounge access at competitive rates no matter
• how frequently you travel.
Virtual Banking:
• Simple
• Secure
• Free of cost
MCB offers
• Click on the register link on the MCB Virtual Banking page &
complete the application form, suggest your MCB Virtual Internet
Banking User ID choices and click submit.
• Visit any MCB ATM, select the option “Service Requests” and on
the next screen select Internet Banking Reg. Wait a while for the
Registration to complete and the appropriate message will be
displayed.
• Check your registered email address for the registration
confirmation containing your Virtual Internet Banking Password
and Customer number.
• With your Customer Number handy, call the MCB Call Centre on
(021) 111-000-622 to obtain your User ID. After verification User
ID will be disclosed to you, enabling you to start using the MCB
Virtual Internet Banking service.
To enable you to use the MCB Virtual Internet Banking Service, we will
give you an initial login password and a user identification code you may
then choose your own Password for the MCB Virtual Internet Banking
Service. These are your Security Codes and both will be used to identify
you whenever you access the MCB Virtual Internet Banking Service.
Mobile Banking:
MCB Mobile is a brand new way to check your account balance, view
your mini-statement and do the following:
It’s Easy
MCB Mobile is one of the easiest ways to make payments. Avoid the
cost of physically going to a branch to make your payment. Avoid the
hassle of standing in a line to do a transaction. Simply use your mobile
phone to make your everyday payments.
It’s Secure
To ensure maximum security this service uses two PINS for transactions
to take place. Without the two PINs no activity can take place via MCB
Mobile
• The Mobile PIN is the PIN which you receive when you register for
this service. This PIN only allows you to login to this service.
• The ATM PIN is the same as the ATM Card’s PIN which you used
to register for the service. This PIN allows you to conduct any
transaction.
• For eligibility you must have active MCB ATM card.
Registration process:
• Visit any MCB ATM, insert your ATM card and enter your ATM PIN
to for authentication.
• Select mobile banking registration from Service Request menu.
• Enter the mobile number you want to register for mobile banking
and confirm entry.
• You will receive a SMS confirming registration
Charges / Limits:
Charges:
Transaction Limits:
Sms Banking:
Now, MCB SMS Banking gives you quick and easy access to your
account(s) round the clock, at your convenience.. This service is
available to all MCB Account Holders anytime, anywhere.
A Free Service
MCB SMS Banking is a free service for all MCB account holders.
However, standard SMS charges levied by your service provider are
applicable.
Registration process:
Step 2: Once you receive the Welcome Message on your mobile phone,
you need to generate your SMS Banking PIN in order to start using the
service. To generate PIN:
• Type RG, give a space, then type a 4 digit PIN of your choice and
Send to 6222
• For example, if you select 1234 as your 4 digit PIN code, send RG
1234 to 6222.
Step 3: Congratulations! Now you can start using SMS Banking service.
Just type the required Service Code, give a space and type your four
digits SMS Banking PIN and send to 6222
S. # Item Rate
1 Telegram on TT Actual-
MinimumRs.116+0.3%
2 Postage on MT Actual-MinimumRs.75
12 Issuance of duplicate Rs 50
statement
SWOT Analysis
Strengths:
Weaknesses:
Opportunities:
Threats:
Competitive Strategy
MCB also had the privilege of being the first Bank in Pakistan to launch
the comprehensive bill payment facility through its alternate delivery
channels which include Internet Banking, ATMs and MCB Call Centre,
currently with six payment partners. Similarly, the Bank also took
initiatives to increase the usage of debit facility. To provide timely and
updated information, MCB has also provided a new look to its website
which is user friendly and considerably easy to browse. The Islamic
Banking initiative has been very successful in attracting new customer,
both individuals and companies. Similarly, those relationships, which
were confined only to current account facility, have grown into stronger
business relationships. The branch network was expanded to Lahore,
Multan, Hyderabad and Faisalabad. The Bank plans to further expand its
Learning
During my internship in MCB Mian Channu I found my supervisor and
other staff very cooperative.
• Customer dealing especially in account opening department where
I did open number of accounts.
• I learned about how to adjust myself in organization environment.
• How motivation leads the person towards better performance.
• Punctuality towards work
• If you will leave the today’s work on tomorrow how it will make your
tomorrow painful.
Duties
• Filling of slips for: Online transfer, Deposit slip, DD slip, pays order
and RTC.
• Issuance of cheque book
• Account opening
• Active dormant account
• Making of clearing
• ATM card form filling and sending request
• Making of speed and exchange payment vouchers
• Maintaining of cheque return register
• Making of NADRA verification of bank customers
Suggestions
In Mian Channu MCB branch there are number of things that should
notified by the manager and their staff for the betterment of the branch. I
observed and feel some activities that should be taken to improve the
performance of the branch.
This ratio determines the amount of income that has been earned on each
share outstanding.
Interpretation
Interpretation
Net profit margin in 2009 is less than the previous years due to
increase its expenses
Current ratio
[Current Ratio = Current Assets / Current Liabilities](Rupees in 000)
Interpretation
Working Capital
Interpretation
Return on assets
Interpretation
Interpretation
Interpretation
Fixed assets turnover ratio is also known as sales to fixed assets ratio.
This ratio measures the efficiency and profit earning capacity of the
concern.
Fixed Assets Turnover Ratio = Cost of Sales / Net Fixed Assets (Rupees
000)
Analysis
The MCB bank in 2009 utilize its fixed assets more effectively
than previous years to generate its sales
Return on Equity
Return on Equity of 2009 24, 710, 953000/ 6, 911, 045000=3.56
Interpretation
Net Profit Margin of 2009 15, 495, 297000/ 51, 616, 007000=
Interpretation
468168736-167134465/375850551
Interpretation
In 2006 acid test ratio is higher than 2009 which means the
bank has less most liquidate assets in less proportion than in
2006
Conclusion
Bibliography
http://www.mcb.com.pk/
http://en.wikipedia.org/wiki/Muslim_Commercial_Bank
www.scribd.com/doc/30554269/MCB-Internship-Report
Mr. Imran Operational Manager of MCB Mian Channu branch
www.sbp.com.pk
www.kse.com