INTERNSHIP REPORT ON MUSLIM COMMERCIAL BANK

Internship Report submitted to the Faculty of Management & Administrative Sciences in Partial Fulfillment of the

Requirements for the Degree of Bachelors of Business Administration. By Name of Student: Roll Number: Date of Submission :

Sehrish Khalid
12052054-062 15 september 2013

Name of Program Coordinator Signature of Program Coordinator

University of Gujrat(G.T Road
Science Campus) Faculty of Management and Administrative sciences Course Title: Internship (Report based on Internship)
Course Code: MGT -403

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I dedicate this internship report to my parents. Because of their prayers and encouragement I have been able to complete this report. Praise is to Allah, the most Gracious and Merciful, who blessed me with the knowledge and wisdom and enabled me to overcome this task. Heartiest gratitude to my parents without their continuous encouragement and love I could not have accomplished this task.

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6 Chapter#2 2.2 2.2 3.1 1.2 1.4 2.S.4 1.3 2.5 1.1 3.8 Chapter#3 3.1 2.6 2.NO 1 2 3 Chapter#1 1.3 1.3 TITLE Acknowledgement dedication Executive summary Introduction Background of study purpose Scope Objective Banking sector overview MCB performance over view Overview of organization Brief history of MCB mission vision Awards and achievement Business volume Products/service line PEST Analysis MCB competitive strategies Organization structure Number of Employees of MCB Introduction of all Departments Comments on Organization Structure Page 4 .7 2.5 2.

3 Chapter#5 5.2 4.Chapter#4 4.1 Capter#6 My internship work Introduction of branch Internee work Learning Summary Conclusion SOWT analysis Recommendations Chapter#7 References Page 5 .1 4.

I learned about documentation requirements and record keeping for different activities and processes. Advances. over 222 MCB ATMs in 41 cities nationwide and a network of over 12 banks on the MNET ATM Switch. especially the documentation requirement for different kinds of financing facilities. Foreign Exchange and Customer Service Office department and I successfully completed all the task/duties that were assigned to me. MCB's operations continued to be streamlined with focus on rationalization of expenses. During my internship in MCB I worked in Remittances. with a network of over 900 branches. Page 6 . expertise and reduce delivery cost.MCBBank Limited (Formerly Muslim Commercial Bank Limited) has a solid foundation of over 50 years in Pakistan. over 750 of which are Automated Branches. Advances. Foreign Exchange and Customer Service Office department and bank as a whole. The Bank has taken the lead in introducing the innovative concept of centralizing Trade Services in the country by providing centralized foreign trade services to branches with a view to improve efficiency. enhancement of customer service standards. I also learned bank‟s correspondence with their customers and within branches. process efficiency and controls. During the course of internship I learned about different functions performed by Remittances. re-alignment of back-end processing to increase productivity.

Chapter#1

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Introduction to the Report
The basic purpose behind the preparation of an internship report is to make the student job down the experiences of the internship and discuss the understanding of the operations of the organizations. So, We can work well in future. For this purpose I did my internship in MCB Bank Limited, G.T Road Gujrat which was the most feasible being the oldest, reputed and well established bank and it is the main branch of the district, where I can enhance my skills and learn the basics of business environment. This report is about MCB‟s products, fields of activities and its management style. The results show the progressive image of the MCB bank as compare to the competitors. Management style is somewhat participative and its culture is friendly and cooperative. All the employees were extremely cooperative and accommodating. All the employees under whom I worked were learning from the experience as well.

Background of the study:
Internship training program during Becholer in Business administration Program is necessary for the partial fulfillment of the completion of Degree of Becholer in Business Administration. It is necessary for me to complete an internship session of about 6 weeks in some manufacturing or service industry relevant to my area of interest and specialization. So, I choose the Banking field because I have the interest in this sector because my study background is related with this sector.

Purpose:
Internship is the great experience that provides me with hands-on, practical job experience. Ideally, internship will enable interns to:
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(a) Integrate and use my knowledge and skills from the classroom, (b) Discover where further competence is needed, (c) Take steps to gain that competence under educational supervision, and (d) Become better acquainted with the types of work settings in which such competence can be applied.

Scope:
This study will facilitate the students regarding the working of Banking sector of Pakistan because most of the teachers during their lectures use the examples of Banks like MCB, National Bank, UBL, Bank Alfalah and many others, students should study this report so that they must grasp the functioning of such Banks. Report will help to know working of banking sector in Pakistan. And it helped me a lot in getting the practical knowledge of working in bank as internee.

Objectives:
I worked as an internee in MCB G.T Road, Gujrat. The main objectives to study in MCB were:     To get some experience in working with well reputed organization. To gain knowledge about the professional environment of the bank. To know about the technology utilized in the banks. To deal and manage with the situation of stress.

Banking Sector Overview
Pakistan‟s banking and finance sector grew by over 21 percent from July 2004- March 2005 amid the eight percent expansion in the services sector in Pakistan. Financial sector in Pakistan is going through a fast-paced transition as new groups were buying out foreign banks‟ operations in Pakistan. The number of
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7. Page 10 . Foreign banks have a strong presence in all major cities and are targeting high net worth individuals and blue chip companies. In just four years the banking industry has expanded tremendously and now there are more than two dozen commercial and investment banks operating in the country. compared with Rs. total assets of all the scheduled banks increased by Rs 239 billion.43. While the income from core banking activity has increasing due to higher business volume. housing finance and enhanced lending to the agriculture sector. Their strategy is quite successful as they account for about 34 percent of total sector profits. Profit after tax has more than doubled compared to the corresponding period for 2004 and exceeds Rs. During the first six months of 2004-05. earnings are also expected to improve due to ventures into consumer finance.800 billion in June 2004 to Rs 3.039 billion in Dec 2004. Net advances grew by 19. Total assets grew by 8. 3 billion – highest ever profit in the history of MCB.714 billion in Dec 2004. The banks also managed to maintain a healthy credit portfolio.listed banks is also increasing.5 percent from Rs 2. 4. Commercial banks in the private sector had performed well since their inception.2 billion for the same period in 2004.3 percent from Rs 1. This translates into earning per shares of Rs. as the bank has achieved pre tax profits of Rs. MCB’s Performance Overview The first half of 2005 was very promising for MCB.2 billion. there was also an increase of Rs 277 billion in the net advances of the scheduled banks. During the first six months of the ongoing fiscal year.437 billion in June 2004 to Rs 1. registering overall growth in the deposit base and profits. despite having only 15 percent of deposits and 16 percent of advances. 2.

Increase in equity would improve the lending limit and would provide the opportunity for significant growth of the bank‟s balance sheet. Bank‟s equity (capital and reserves) increased by 41% during the half year. Asia Money has also declared MCB as “The Best Domestic Commercial Bank in Pakistan” for the year 2005. In addition. MCB has once again received the Euromoney Award 2005 for the “Best Bank in Pakistan”. 300 billion marks. CHAPTER#2 Page 11 . which will be effective from 2007. 156 billion and Rs. which was due to the issue of right shares and retained earnings. Additionally the bank‟s assets expanded by 16% during the half year ended 2005 and crossed Rs.Advance and deposit increased to Rs. 241 billion reflecting a growth of 14% and 10% respectively. MCB has become the only bank to receive the Euromoney Award for Excellence for the fifth time in last six years. This would also help to meet the capital requirement under Basel Accord II. Based on continuing growth and consistently outstanding performance.

In addition. MCB has become the only bank to receive the Euromoney award for the fourth time in the last five years. 2001. MCB won the "Best Bank in Pakistan" in 2005. making strides towards fulfillment of its mission. Commercial and Consumer Banking. The bank has restructured its asset portfolio and rationalized the cost structure in order to remain a low cost producer. Corporate clientele includes public sector companies as well as large local and multi national concerns. with a network of over 900 branches. MCB looks with confidence at year 2005 and beyond. Ten years after privatization.History of MCB MCBBank Limited (Formerly Muslim Commercial Bank Limited) has a solid foundation of over 50 years in Pakistan. which as a combination is considered to be the core competence of MCB. 2004. over 750 of which are Automated Branches. MCB now focuses on three core businesses namely Corporate. Page 12 . MCB also has the distinction of winning the Asia Money 2005 & 2004 awards for being "The Best Domestic Commercial Bank in Pakistan". 2003. over 222 MCB ATMs in 41 cities nationwide and a network of over 12 banks on the MNET ATM Switch. MCB is now in a consolidation stage designed to lock in the gains made in recent years and prepare the groundwork for future growth. and in 2000 the "Best Domestic Bank in Pakistan" awards. "to become the preferred provider of quality financial services in the country with profitability and responsibility and to be the best place to work". MCB is also catering to the growing middle class by providing new asset and liability products.

Our qualified and experienced workforce must work closely with our customers to continually enhance their confidence and trust in us. We continue to offer services that expand their access to excellent and affordable technologies.We will draw from the respect we have earned as Trusted Third Party Processor and will become a distinctive organization known for innovative use of technology to continually improve products and services for the benefit of our customers and their customers and keep them abreast with times to compete in the global society. We focus on our customers as an active component in growth process. Page 13 .

Euromoney Awards Best Bank Award 2008 Best Bank Award 2006 Best Bank Award 2005 Best Bank Award 2004 Best Bank Award 2003 Best Bank Award 2001 Best Domestic Bank Award 2000 Asia Money Award Best Domestic Commercial Bank Award 2005 Best Domestic Commercial Bank Award 2004 Page 14 .

Best Bank In Pakistan Award 2005 MCB has again received the esteemed Euromoney Award for the “Best bank in Pakistan”.Euromoney Awards Best Bank In Asia Award 2008 MCB has been awarded as a Euromoney Award 2008 for the " Best Bank in Asia". Page 15 . It 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 2006 MCB has yet again received the esteemed Euromoney Award for the “Best Bank in Pakistan”. for being the "Best Bank in Pakistan" for the fourth time in the last five years. It is the only bank to receive the Euromoney Award for Excellence for the sixth time in the past seven years. Best Bank In Pakistan Award 2004 In a continuous winning streak. MCB once again takes pride in being conferred with Euromoney's prestigious award of excellence.

Asia Money Awards The Best Domestic Commercial Bank Award 2005 MCB Continues to shine as once again Asia Money declares MCB as "The Best Domestic Commercial Bank in Pakistan" for the year 2005.Best Bank In Pakistan Award 2003 MCB believes in you. striving to achieve collective success by understanding changing trends and assimilating into diverse cultures. The Best Domestic Commercial Bank Award 2004 Page 16 . Best Bank In Pakistan Award 2001 Your trust and our commitment is always an award wining combination MCB was awarded as a Euromoney Award 2001 for the " Best Bank in Pakistan". Best Domestic Bank Award 2000 MCB was awarded as a Euromoney Award 2000 for the " Best Domestic Bank in Pakistan". integrity and dedication. Together we work with quality. Your trust in our ability and our commitment to deliver has again won us the Euromoney Award 2003 for the "Best Bank in Pakistan".

Credit Cards.753 Billion (2009)[1] Revenue Net income Page 17 .782 Billion (2009)[1] PKR 26. Type (KSE:[2])Public Industry Banking Capital Markets Founded 1947 Headquarters Registered Office: Islamabad. Principal Office: Karachi Pakistan Key people (Chairman)Mian Mohammad Mansha Products Loans. PKR 35. Consumer Banking etc. Savings.MCB has a distinction of winning the Asia Money 2004 award for being "The Best Domestic Commercial Bank in Pakistan" Business volume: MCB Bank Ltd.

Total assets USD 6. Pak Rupee Savings Account Page 18 . Mahana Khushali Bachat MCB Monthly Khushali Scheme provides you with a steady income every month.com.mcb.02 Billion Website www. Just purchase a Monthly Khushali Certificate and you will enjoy a steady income of your total deposit every month. the account can be opened by people from all walks of life and still avail the facility of daily product profit calculation. a Rupee savings account is one of MCB Bank‟s most popular products.pk Deposit Accounts Khushali Bachat Account Khushali Bachat Account. Due to the low initial deposit.

e. There is no limit on the number of transactions you make in a day plus you can avail finance facility up to 75% of the total deposit. The facility also provides you with unlimited daily transactions with a limit on maximum withdrawal amount through the ATM machines. you have access to a countrywide ATM network convenient cash accessibility 24 hours a day. access to your funds whenever you want without any notice. 1 year. The facility also provides you with unlimited daily transactions with a limit on maximum withdrawal amount through the ATM machines. 3 months. 3 years. Foreign Currency Savings Account Page 19 .MCB‟s Pak Rupee Savings Account offers you attractive returns on your Pak Rupee investment. Saving 365 The MCB Saving 365 calculates profits on a daily product basis and gives you the facility of unlimited withdrawals. In addition. Pak Rupee Term Deposit MCB Pak Rupee Term Deposit gives a higher rate of return. you have access to a countrywide ATM network convenient cash accessibility 24 hours a day. 4 years and 5 year term deposits. In addition. It gives you choice of 1 month. Pak Rupee Current Account MCB‟s Pak Rupee Current Account offers you the convenience of unlimited withdrawals i. 6 months. 2 years.

3 months. you can open a Dollar Khushali Account at over 200 branches in Pakistan.MCB‟s Foreign Currency Savings Account offers you attractive returns on your Foreign Currency investment.e. There is no limit on the number of transactions you make in a day. access to your funds whenever you want without any notice. 4 years and 5 year term deposits. 1 year. Dollar. Loan Products MCB Business Sarmaya Page 20 . MCB Foreign Currency Term Deposit MCB Foreign Currency Term Deposit gives a higher rate of return. Dollar Khushali Account The Dollar Khushali Account. Today. 2 years. 6 months. 3 years. a Dollar based account was introduced in 1993 at selected MCB Bank branches. It gives the choice of 1 month. UK Pound Sterling. Japanese Yen or Euro and withholding tax Foreign Currency Current Account MCB‟s Foreign Currency Current Account offers you the convenience of unlimited withdrawals i.

avail lucrative opportunities and expand your business. Take that much-needed holiday. easy processing and above all. Renovate or Construct your home the way you have always wanted. Buy a car. you make a power move. Like waiting for a home of your own. MCB Master Card Page 21 .MCB CAR4U Auto Finance is the power move that assists you in more ways than you ever imagined. Finance a better education for your children. no hidden costs. flexible conditions. MCB Pyara Ghar is an ideal Home Finance from your own bank that lets you Purchase. But with MCB Pyara Ghar it is now easy to step into your home and start living a real life. So act today and get MCB Business Sarmaya and thus improve your business. But when you really want to improve your life. with lowest mark up. MCB Car4u Life is like a chess board. Purchase a new TV. Having your own home was never so easy Easy Personal Loan MCB Easy Personal Loan provides you with the financial advantage to do things you've always wanted to but never had the sufficient funds for. with absolute satisfaction of cash flows. MCB Pyara Ghar Some destinations require a long wait. You plan your career options.“MCB Business Sarmaya” is the best Running Finance facility against your residential property which empowers you to manage your business dealings better. It is affordable. Refurnish your house. You analyze your business moves.

Since the beginning of time. people have tried to find more convenient ways to pay.shipment etc.made solutions are developed keeping in view the unique requirements of your business. time zones. with the Internet. and. inevitably will replace cash and cheques as the money of the future. The product has been extremely popular and is preferred over cash by customers while traveling and in all walks of life. Export Refinance. from gold to paper money and cheques. Pre-shipment and Post. Cash Finance. Plastic or "virtual" money. the Corporate Bank offers a number of different working capital financing facilities including Running Finance. MCB Rupee Traveler's Cheques MCB Rupee Traveler's Cheques were first introduced in 1993 as safe cash for traveling and travel related purposes. credit. This also enables it to offer you a choice of paper based or electronic fund transfer solutions including collection amounts. even physical space. MCB Rupee Traveler's Cheques. Term Loans Page 22 . Working Capital Loans Based on the customer‟s specific needs.line transactions etc. Tailor. debit. cross branch on. Today. money is moving away from distinct hard currencies and towards universal payment products that transcend national borders. and electronic cash products.The safest way to Carry Cash Corporate Banking Cash Management Services MCB‟s network of over 900 branches in Pakistan enables it to collect and disburse payments efficiently with its cash management services.

The loans are structured on the basis of underlying project characteristics and cash flows of the business. constantly striving to raise the level of performance. providing guarantees and other support services. Just dial our Call Centre from the Page 23 . MCB proudly introduces MCB MOBILE BANKING. MCB Mobile Banking At the forefront of technological excellence. 269 online branches. Online Services MCB ATM Services With a solid foundation of over 50 years in Pakistan. MCB is positioned at the forefront of the banking industry in Pakistan. This success has been possible because of a never-ending drive to achieve higher levels of excellence. 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). with more than 750 automated branches. where phone service is at your fingertips. over 222 MCB ATMs in 41 cities nationwide and a network of over 12 banks on the MNET ATM switch. The convenience of accessing your account balance information and mini statements whenever you want or wherever you may need them. purchasing export documents. MCB Call Center Keeping up with banking services can be tedious but not with MCB Bank. with comfort and peace of mind.MCB offers Short to Medium Term Finance to meet capital expenditure and short term working capital requirements of our customers.

It offers basic banking services for your convenience. eliminating the need for you to make unwanted trips to your branch.comfort of your home or office or wherever you happen to be. Your balance is always within your reach and you spend accordingly. MCB Debit Card Now MCB brings a secure. It not only helps you manage your expenses. The convenience and flexibility of MCB SmartCard will help you live a smarter life. Deposit Schemes For customers who are looking for a deposit opportunity where they can purse their funds and reap halal returns on it. MCB Smart Card MCB now brings you MCB SmartCard -a secure and convenient instrument of payment with unmatched functionalities. It provides 24-hour direct access to your bank account. we offer the following products: -Makhraj Saving Account -Makhraj Ianat Account -Makhraj Term Deposit Fund Based Facilities Ijarah Products Page 24 . convenient and quick payment facility that enables you to do purchasing by using your existing MCB ATM / MCB Smart Card as a DEBIT CARD. but also eliminates undue interest on your day to day credit card transactions.

The Bank introduced more IT based products to cater to the changing lifestyles and needs of the customers. and the customer (lessee) will be given the asset to use for a certain period of time in return for monthly rental payments. With the relaunch of auto finance and house finance products. MCB will be the owner of the asset. hence the term „Wa Iqtina‟. Technology continued to play an important role in improving and expanding product offerings. analogous to the English term 'leasing‟. Under this scheme. MCB will give a separate unilateral undertaking that it will offer to sell the asset to the customer (lessee) at the maturity of the Ijarah agreement at a price that may be equal to the security deposit amount. is based on the „Ijarah wa Iqtina‟ concept which means the sale of the asset to the lessee after the Ijarah has matured. MCB Virtual-Internet Banking was launched with wide ranging banking solutions for the customers ranging from individual to corporate customers and it has become the most preferred Internet banking solution in the country. the Bank pushed the products with full thrust. Types of Ijarah Car Ijarah Equipment Ijarah MCB’s Competitive Strategies To be competitive the Bank has further reinforced its position in the Consumer Banking arena by streamlining and re-launching the consumer financing products and introducing more convenience based solutions. Page 25 . The Bank has also launched a running finance facility against mortgage of property.MCB‟s Islamic Ijarah.

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. Some wide-ranging new strategic initiatives were also taken upwhich will be important for the Bank in years to come. both individuals and companies. those relationships. enhancement of customer service standards. To increase its international presence. To provide timely and updated information. A private company has been formed in Hong Kong (fully owned subsidiary of MCB) in partnership with Standard Chartered Bank. The Bank plans to further expand its Islamic Banking branch network to other metropolitan areas and also to introduce new sharia compliant banking solutions to a wider range of customers for satisfying their individual and business needs. have grown into stronger business relationships. Similarly. currently with six payment partners. It is projected to earn US$ 1 million in its first year of operations. process efficiency and controls. Furthermore.MCB also had the privilege of being the first Bank in Pakistan to launch the comprehensive bill payment facility through its alternate delivery channels which include Internet Banking. the Bank also took initiatives to increase the usage of debit facility. re-alignment of back-end processing to increase productivity. MCB's operations continued to be streamlined with focus on rationalization of expenses. feasibility is also being carried out for entering other international markets. which were confined only to current account facility. The Bank has taken the lead in introducing the innovative concept of centralizing Trade Services in the country by providing centralized foreign Page 26 . The branch network was expanded to Lahore and Multan during the last year and recently been extended to Hyderabad and Faisalabad. the Bank will be opening its representative office in Dubai and entering into major strategic alliances with banks in the UAE/ especially for marketing our consumer banking products to non-resident Pakistanis. Similarly. handling trade transactions of select countries in the AsiaPacific region. ATMs and MCB Call Centre.

The Bank will also be implementing the full suite of the latest version of SYMBOLS Version 8.30 in FY07 as compared to profit after tax of Rs12.9b from Rs21.33 in FY06.trade services to branches with a view to improve efficiency. The Bank introduced 'reward for performance' where high potential officers were identified and rewarded accordingly.0% in FY07. In view of the competitive environment. Net interest income increased by 13% to Rs23. The major contribution came from a 148% Page 27 . MCB Bank aims to raise the level of its customer service and its time to market in new product offerings for its three core banking businesses in Corporate. The gross interest income grew by 23%. while the interest expense grew by 74%.2b in FY06. The non-mark-up income increased by 20% to Rs 6 billion. MCB posted an after tax profit of Rs15. expertise and reduce delivery cost. depicting an increase in the cost of raising funds. depicting a significant growth of 26.26b with earnings per share of Rs 24. the Bank is focusing on performance and introducing a more robust performance management system. Challenge for MCB is to provide an environment in which employees can better realize their potential. Commercial and Consumer Banking . MCB is committed towards attracting.retaining its market leadership as Pakistan's progressive Bank. By implementing SYMBOLS. Management of Human Resources has been one of our core focus areas. while SYMBOLS Enterprise Operations Center will serve as its core banking transaction-processing engine. retaining and motivating outstanding people. MCB is also strongly committed to training its staff at all levels. MCB Bank will run SYMBOLS eFinance modules to deliver personalized services to its customers over multiple delivery channels.14b with earnings per share of Rs 19.

Net interest income of the bank grew by just 2.1 billion as compared to Rs 6. § Political interference regarding policies is expected to increase as current government is in race of power gain. § Due to lack of confidence on government investor is reluctant so mobilization of funds is going to decrease.5% during the period to Rs 6. while the investments increased by 78% to Rs 113 billion.0 billion in the corresponding period of last year.7 billion with an earnings per share of Rs 5. Associations are being allowed to work effectively which can affect the performance of the company both positively or negatively.increase from the capital gained on sale of securities.Deposits showed a steady increase of 13% to bring the figure to Rs 292 billion as compared to Rs 257.4 billion in FY06. Political § Employment practices are expected to change. The asset base increased by 20% from 342 billion to 420 billion in 2007 as compared to 2006. Recent Results: MCB Bank Limited posted profit after tax of Rs4. depicting a growth of 10. § Unions.55 in 1Q'08 vis-a-vis of Rs 3.1b with an earnings per share of Rs 6.93 in 1Q'07. Page 28 . High cost of deposits was the main reason behind.3% during the period despite dismal performance of banking sector during 1Q'08. Advances increased by 10% to Rs218b.

lack of training. § Cultural strain to savings is the reason due to which investment remains low . § Staff cost is increasing as basic wage rate has increased and inflation has compelled to will compel to increase salaries. MCB will have to follow it. Same situation is hoped to prevail. § Inadequate Accountability . Technical § MCB has computerized its most of the branches but still some are manual there is need to computerized otherwise customers will get bad image. § Declining work ethics is also our problem which is mainly due to poverty. But MCB will have to improve its computerized technology as some fake transactions occur by ATM. Page 29 . § Employees of each organization need IT training and organization has this trend.lack of good governance and lack of good infrastructure helps creditor to cheat and heavy bad debts occur. § Operating costs are increasing due to inflation. Social And Cultural § Lack of experts is in our country regarding management hence innovative activities are slow and conventional methods are adopted. § Shortage of electricity is a big problem.Economic § Inflation is very high which will decrease the demand as purchasing power is decreasing. § Now a days computerized system is used by banks whis is very effective. § Interest rate is increasing so loan taking has decrerased. § Inadequate Empowerment is also a usual problem in our organization as every person want to get more power hence there is less delegation of authority and decision making. § Value of rupee is decreasing which is pressurizing the economy.

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Chapter#4 Organizational Structure of the MCB Branch Page 31 .

These categories are: a) Corporate Banking b) Commercial Banking c) Consumer Banking A) CORPORATE BANKING: These are branches which have an exposure of over Rs. Treasury management & FX Group and lastly Special Assets Management (SAM) Group. Operational Management of the bank is being handled by a team of 10 professionals. C) CONSUMER BANKING These are the branches which have exposure up to Rs. For effective handling of branches. it has been categorized into three segments with different people handling each category. Financial & Inter branch div.ORGANIZATIONAL STRUCTURE 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. financial control & Audit div. The different operational departments are Consumer Banking & IT div. Corporate Banking div. The branches which has a credit exposure of less than Rs. This team is also headed by Mr. HR & Legal div. Credit management div. Commercial Banking div. Banking operations div. 100 million. Recently the organizational structure was re-designed as follows: Province wise branches Page 32 . 20 million (excluding staff loans) Usually branches in large markets and commercial areas come under this category. Usually includes multinational & public sector companies. B) COMMERCIAL BANKING. 100 million but having a credit portfolio of more than Rs. 20 million and these include all the branches which are neither corporate nor commercial branches. 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.

Corporate Consumer Commercial 20 branches 637 branches 383 branches NUMBER OF EMPLOYEES: MCB is the largest bank of the country. Page 33 . It serves its customers well. It has the highly skilled and qualified employees to serve their customers. Total number of employees of MCB is 9704.

ground floor Modern Motors Houses Beaumont road Karachi Page 34 . Chandigarh Road. F6/G6 Jinnah Avenue. Islamabad PRINCIPAL OFFICE: MCB TOWER I. Karachi REGISTRAR AND SHARE REGISTRATION OFFICE: THK Associates (pvt) Ltd.I. Shares Department.MAIN OFFICE REGISTERED OFFICE: MCB BUILDING.

..…………………… Zonal Office Branch Manager ………. 2. GRADE 1. And for this purpose different banks provide different services to the people in different forms.. the bank has some proposals under consideration to open more brances in some European countries and as well as in japan & china MEDIOCRE LEVEL MANAGEMENT The organization chart within a department and in different offices is as follows: Divisional Heads ………. Page 35 .sehu ur f rebemuN Punjab 632 Sindh 232 NWFP 123 Blochistan 34 Azad Kashmir 19 Domestic 1040 Overseas 4 EPZ 1 Total 1045 Sri Lanka 3 Bahrain 1 Furthermore..…………………… Regional Office Zonal Head (VP) ………. 3) The purpose of banks is to provide some services to the general public. AVP.…………………… Branch (VP.…………………… Head Office Regional Head (EVP) ……….

documents or securities. c) Transfer of money from place to place. e) Issuing of travelers cheques and letters of credit to give credit facilities to travel. For proper functioning of branches and the over all bank has been divided in different departments. 1) Open Different accounts for different peoples 2) Accepting various types of deposits 3) Accepting various types of deposits 4) Granting loans & advances 5) Undertaking of agency services and also general utility functions. f) Accepting bills of exchange on behalf of customers. dividend. i) Furnishing trade information and tendering advice to customers. The general division in a branch is as follows: 1) Cash department 2) Deposit department 3) Advances & credit department 4) Foreign exchange department Technology department (new addition in order to cop with the growing needs of day to day technology requirements) Page 36 . 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. trustee or attorney for the customers. g) Purchasing shares for the customers. d) Acting an executor. h) Undertaking foreign exchange business. in modern time commercial banks play a very important role and their functions are manifold. „Providing safe custody and facilities to keep jewellery. pensions and other sum due to customers. few of those are as under: a) Collecting cheques and bill of exchange for the customers. The main functions and services which Muslim Commercial Bank Limited provides to different peoples are as follows. b) Collecting interest due.The Muslim Commercial Bank (MCB) is a commercial bank.

extra care is taken in this department and nobody is allowed to enter or leave the area freely. therefore. DEPOSIT DEPARTMENT Bank deals in money and they are merely mobilizing funds within the economy. They borrow from one person and lend to another. it is entered in the token book and token is issued to the customer. The consolidated figure of receipt and payment of cash is entered in the cash balance book and drawn closing balance of cash. these are balanced with each other. Mostly. cash area is grilled and its door is under supervision of the head of that department. When the cheque or any negotiable instrument is presented at counter for payment. Token Book 4. This is very important department because cash is the most liquid asset and mostly frauds are made in this department. Cash Balance Book When cash is received in counter. Receiving Cash Book 2. Scroll Book 5. At the close of day. At the close of the day. the Token Book and Paying Cashier Book are balanced. The token clerk and the Cashier make entries in the paying book and payment is made to payee.Payments = closing Balance. These deposits are liability of the bank so from point of view of bank we can Page 37 .CASH DEPARTMENT The following books are maintained in the Cash Department: 1. Therefore we can rightly state that deposits are the blood of the bank which causes the body of an institution to get to work. it is entered in the Scroll Book and Receiving Cashier Book. Opening Balance + Receipts . the difference between the rate of borrowing lending forms their spread or gross profit. Paying Cash Book 3. All the books maintained in this department are checked by an officer.

1) Time deposits / liabilities 2) Demand deposits / liabilities And on the basis of the cost to acquire these funds. basis for calculation of profit.e. No profit is paid by the bank and no service charges are deducted by the bank on current deposits account. deposits or withdraws money several times in a day if he likes. one is the duration in which there funds are expected to be with the bank and second is the cost of getting these funds. In the similar fashion. Low Cost No Cost. PLS SAVING BANK A/C (SA): This type of account is for those persons who want to make small savings'. Banks has different kinds of deposit schemes in order to induce deposits. additional benefits. mode of transaction. High Cost Medium Cost. So divide deposits in two classes according to duration of deposits i. Usually this type of account is opened by the businessmen.refer to them as liabilities. He may. 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. thus. 1000/-. These schemes are a mixture of the above mentioned two types of deposits with an addition of different services & requirements such as minimum balance' requirement. there is requirement of minimum balance maintenance of Rs. These types of deposits are also exempt from compulsory deduction of Zakat. TYPES OF DEPOSITS Deposits can be segregated on two bases. This type Page 38 . bank has progressed in both aspects. There is also no restriction of amount to be deposited or withdrawn. deductions. The increase in deposits is also a cause of increase on total number of accounts. eligibility for different groups. a deposit can be classified as any one of following four. However. MCB has a large variety of deposit schemes and some of them are as follows: CURRENT A/C (CD): In this type of accounts the client is allowed to deposit or withdraw money as and when he likes.

NOTE: PLS Saving. KUSHALI BACHAT A/C (KBA): This is an advance form of PLS saving a/c. 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. i. up to 4 times in a calendar month. The profit is paid on these accounts on the minimum balance during a month for the whole of that month. 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.e.and in turn he gets the benefits of daily profit calculations and also there is no restriction on the maximum number of withdrawals as was there in the case of KBA. in this type of account. now bank discourages the opening of foreign currency accounts because no forward cover risk is provided by State Bank of Pakistan (SBP) and all the loss in case of devaluation or depreciation in local currency has to be born by bank himself. There is also restriction on the number of withdrawals as well.of account is opened with a minimum deposit of Rs.000. However. Kushali Bachat & PLS 365 saving accounts can be opened in foreign currency also. Page 39 . Before nuclear tests of 1998 these accounts were opened in four major currencies but now these are only opened in USD ($). therefore. The minimum balance requirement for this type is Rs. All other rules of saving account are applicable. This increase in cost has left foreign currency account of no use. if balance falls below the minimum limit then all the products for that month are ignored on in other words no profit is paid for that month. There is also another advantage of this scheme that if balance on a particular day falls below the minimum balance then only the product of that day is ignored whereas in KBA. 1000/-. 2500/-. Zakat & other withholding taxes are deducted as per rules of the government. PLS 365 SAVING A/C: This is a special type of saving account in which customer maintains a minimum balance of Rs. 300. now bank prefers to accept deposits in local currency rather in foreign exchange. If a big amount is required a seven days notice is required before the withdrawal.

Zakat & withholding tax are deducted at the time of payment. HAJJ MUBARIK SCHEME: This is also very closely related with Khanum Bachat scheme. In this deposit schemes. Zakat & withholding tax are calculated as per rules laid down by the government.are made by the account holder in this account for a minimum of 10 years. Zakat and withholding taxes are deducted as per rules only at the time of maturity while making payment to the customer. the bank has guaranteed minimum rate of 1% per month but usually this rate is more than 1% per month. This product was actually introduced to promote saving habits in the people. After the expiry of term. During this time he keeps on depositing monthly deposits and his account is charged with the accumulated profits calculated on 6 monthly basis. Under this scheme. he receives his funds along with profit for the tenor. PLS TERM DEPOSIT RECEIPTS (TDR‟S) This is a type of term deposit in which a receipt is issued for varying tenors ranging Page 40 . in this type of deposit an account is deposited and monthly payments of Rs.KHANUM BACHAT SCHEME: This is a type of term deposit. 2 or 3 years agreement is entered with a customer. Then profit is also calculated on that amount of profit which is credited to the customer's account. The distinctive feature of this product is that profit is calculated on monthly basis and charged to account on end of each half /ear. This was designed to help the persons who are willing to offer Hajj but are unable to save required funds. This ends in getting a heavy return for the depositor at the end of tenor for his small savings. So we can say that in this type of account there is a concept of accumulated profits on profit. the person gets a monthly profit on his deposits. MONTHLY KUSHALI SCHEME: This scheme is similar to CGC in the sense that an initial deposit is made in this case also but instead of lump sum payment at the end of the tenor. 1000/. The scheme is so designed that total amount to be received at the end of this scheme comes equal to the anticipated cost of offering Hajj at the end of tenor.

free of cost. These receipts are encashable after expiry of the period for which they were issued. and issues the cheque book. Different profit rates are applied to different type of TDRs. the manager can open the account by his own introduction. therefore the nature of relation between a banker and customer is of a contractual one and all the conditions applicable to this contract act are also applicable. profit payment and accounting of all types of deposit schemes. a deposit is received from the depositor under the condition that he will intimate the bank before a certain period in case of withdrawals. makes the first deposit.from 1 month to 5 years or more. Page 41 . it will obtain the full signature of the customer. An introducer can be any person known to the bank but preferably it should be a customer of the bank. FUNCTIONS This was a brief review of different types of deposit schemes. who wants to open any kind of account. The Deposit Department handles the account opening. If the manager is satisfied. they are 7 days and 30 days notice deposits.on the form and specimen signature card. Separate account opening forms are used for different types of accounts. Bank usually requires that new depositor must be introduced by some one. However. These are in the form of receipts and profit on these receipts is paid biannually. has to fill in a printed form which is provided by the bank. PROCEDURE FOR OPENING: Procedure for opening of account is as follows: A person. There are two types of SNDs. ACCOUNT OPENING: Account opening is an agreement in which customer offers his funds and bank accepts these funds. The profit is paid on these deposits but it is nearly equivalent to saving account rate. SPECIAL NOTICE DEPOSITS (SND): Under this deposit scheme.

Then the sum total of these products is multiplied with the respective profit rates which are issued by the Head Office at the end of each half yearly closing. It enables a customer to make withdrawal from this account or make payment of various parties by issue of cheque. certificates for commencement of business. Profit payment & calculation is done in accordance with the rules of each type of deposit scheme-by the deposit department. the pay-in-slip is to be filled up. 3) Accounts of Trusts. Executors & Administrators can also be opened but with the prior approval of the Head Office. The profit provisions for each type of deposits are also calculated on monthly basis by the same department in order to calculate the net profit or loss position of the branch. to be deposited in the bank. However. certificate of incorporation. NOTE: 1) In case of partnership account partnership deed should be attached. Page 42 . in small and medium size branches.The following are given to the customers: Pay-in-slip is the proof of deposit. For every payment which is. Pass Book is a copy of the customers account as appears in the books of the bank. Cheque Book contains a number of cheques. Accounting entries are also made in the respective books of account by this department. the accountant performs the book keeping duties for all kinds of ledgers. A large part of this work is carried out through the bankers clearing house. It is however an important function of crossed cheques. list of directors and board resolution for opening of account is also obtained from the customer. The object of this book is to provide the customer with the bank's acknowledgment for receipt of money to be credited this account. The products for each deposit scheme are calculated separately and added till the end of 6 month period. Balance is recorded in this book by the Clerk. 2) In case of companies memorandum and article of association. CLEARING DEPARTMENT Every banker acts both as a paying as well as a collecting banker.

TYPES OF CHEQUES COLLECTED Transfer cheques: are those cheques. To accept Transfer. which are collected and paid by the same branch of bank. It further lies down that a crossed cheque can only be paid to a banker. which is covered by a particular clearing house. As the collecting banker runs certain risks in receipt of their ownership the law has provided certain protections to the banks. 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. not represented at the local clearing house. 2.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. and the payPage 43 . lays down hat drawer or holder of a cheque or draft may cross the instrument generally or specially. Clearing cheques: are those cheques. sub-member of local clearing house. which are drawn on the branches of some other bank of the same city or of the same area. which are drawn on the branches of either the same bank or of another bank. sent for collection by MCB Branches. FUNCTIONS OF CLEARING SDEPARTMENT: 1. are not in the same city or they are not the members of clearing house. which are collected and paid by two different branches of the same bank situated in the same city. 3. Collection cheques: are those cheques. but those branches. Transfer delivery cheques: are those cheques. who collects it for a customer in good faith and without negligence. clearing and collection cheques from the customers of the branch and to arrange for their collection. Transfer delivery. To collect amount of cheques drawn on members. COMMON PROCEDURE FOR ALL CHEQUES: i) Receiving and scrutinizing the cheques and other deposit instruments. 1881. The Negotiable Instrument Act.

e) The amount in words and figures should be same. f) The instrument should be drawn on any local branch. i) A cheque payable to a firm should not be accepted for credit to a partner's account. or consent. or a holder of bearer cheque). and clearing cheques. vi) Separating the cheque into transfer. iv) Returning the counter file to the depositor. o) If an account is new or the balance or operation of the account is not satisfactory. l) Pay orders. SCRUTINY OF CHEQUES a) The instrument should be neither stale/ nor post-dated. j) A cheque payable to one of the joint account holders should not be collected for the joint account without the payee's endorsement. g) If cheque is "crossed Account Payee's" only or "Payee's Account". satisfy your self about the title of the customers to the instruments before accepting the deposits. d) The instrument should not be mutilated. should not be collected for credit to his personal account. or Manager of his company or firm. b) If the instrument is crossed not negotiable it can be for the third party (an endorsee of an order cheque.in-slip at the counter. k) A cheque drawn by a customer in the capacity of agent. h) The cheques or drafts should not be crossed specially to any other bank. transfer delivery. p) Branch agent's permission should be obtained before accepting a third party cheque Page 44 . it should only be accepted for collection for the payee's account. n) “Not transferable" instruments. iii) Scrutiny and receipt by the authorized officer. Pay-slips. c) The Instrument should not bear any unauthorized alternation. or Mail Transfer Receipt. Attorney. like Telegraphic Transfer. m) Do not collect an instrument in the account of an agent or of the servant of the payee or endorsee of the instrument. v) Certificate and confirmation by the officer in charge of the department. although negotiable should not be collected for third parties. . should be collected for a person other payee. and Treasury Receipts. ii) Fixing the stamps.

s) Cheque payable to a trust. Current Ledgers 3. Call deposit register 7. but for the payee's account.D. in computerized branches all these ledgers are no more there but only day books are maintained. Note: No charges are charged by the bank for this purpose. and no endorsement should be missing. LEDGERS OF DEPOSIT DEPARTMENT: The following types of ledgers are concerned with deposit departments: 1. S. Fix Deposit Register 5. Cumulative deposit certificate register 8. Profit & Loss Sharing Ledgers 4. ADVANCES DEPARTMENT Advances are the most important source of earning for the banks. MCB is also giving Page 45 .or draft for the credit of the member.T. Officer spaceman signature book 11. t) All the endorsement should be regular. Government Official. Saving Ledgers 2. r) If the payee of an instrument is UBL. q) If the payee is a Government Department. Cash book 9. account should not be collected for credit to a trustee's account. Register 6. Daily profit and loss summary book 10. or a trust account the instrument cannot be collected. The rest of the work is done on computers. it can be collected for credit of the drawers account.N. or the amount of the instrument may be utilized as desired by the drawer in writing. Voucher register However.

This type of loan is normally granted against security of gold documents. This receipts states that he ornaments returned are complete and in order. In case of demand loans against gold or documents. the following precautions are dept in the Page 46 . A) LOAN AGAINST GOLD: Under this type of loan.full attention towards this aspect and it is also obvious from the growing portfolio of advances and from very low delinquency rate. Part delivery of ornaments is given against part payment of a loan but care is taken that the ornaments still in banks possession fully covers the balance of the loan outstanding. which is granted to the borrower the Head Cashier estimates the value of Gold or Gold ornaments through an agent (Gold smith) and keeps a margin of 40 to 50 percent. The loans are granted by the bank in lump sum. Interest is charged on the whole amount of a fixed loan. the gold or ornaments held as security for it. a demand promissory note for the amount of loan is taken from the borrower loans are granted under. which is a bank receipt. After the opening the gold loan account a token is given to the borrower. The interest gold loan is to be applied with quarterly. individual etc. 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. The borrower withdraws whole the amount of loan. On repayment of loan. together with the demand promissory note duly discharged is returned to the borrower and his receipt for the gold ornament taken in the demand loan ledger. B) LOAN AGAINST PLEDGED OF STOCK: In case of advancing such types of loans. so these types called fixed or demand loans. 1) Loans 2) Cash Credits 3) Overdraft 1) LOANS: Loans are monetary assistance by a financial institution to a business.

from the certain products or stock. The credit is usually given against the securities of goods or merchandize as follows: 1.mind: i) Stock pledged must be readily saleable ii) Products should be readily saleable iii) Advance should be within the borrows means REQUIREMENT FOR LOAN: For granting loan to any party or individual. Customer is granted a loan up to a certain limit. In order to avoid the danger of idle fund. the bank checks following particulars of the client: 1) Credibility 2) Feasibility Report By Credibility. The rate charged by the bank on cash credit in 46 paisa per thousand on daily basis. 2) CASH CREDIT Cinder such cash account is opened in the name of the customer who borrows from the bank. the bank charges a certain rate of interest. cash credit form is taken. ADVANCES AGAINST PLEDGE STOCK IN TRADE OR PRODUCTS When a cash is granted against the pledge of stock or product. CBI report etc. The report enables the bank to judge the likely return of the business. bank Judges the credibility of the client by his past bank record. even if the customer does not withdraw any amount. sanctioned by the head office. HYPOTHECATION OF STOCK ON FINISHED PRODUCTS: The difference between pledge and hypothecation is that under a pledge the Page 47 . but the actual pledge is created when the stock or finished product are placed under the bank's lock or the document of title are duly endorsed to the bank by the borrower. it is very important in making decision about giving him loan. 2. from which he can draw when he requires and interest is charged on the amount actually utilized by the customer. Feasibility report is on the running or proposed business of the client.

Even though the documents empower the bank to take possession of the goods hypothecated. 3. under a hypothecation. MODES OF CREDIT FACILITIES There are two types of facilities A FUNDED FACILITY 1) Running finance 2) Cash finance 3) Demand finance 4) Payment against documents 5) Finance against imported merchandise 6) Finance against trust receipt 7) Export finance 8) Foreign bill purchased 9) Others NON FUNDED FACILITY 1) Letter of credit 2) Letter of guarantees 3) Bid bonds 4) Performance bonds 5) Other facilities Page 48 . MORTGAGES OF PROPERTY: Title deeds of immovable property are accepted by the bank only as collateral security or alternatively as unauthorized security.borrower's goods are placed in the bank's possession under own lock. whereas. they remain in the possession of the borrower or guarantor and are merely charged to the bank under documents signed by them. but it is possible that the borrower may actually resist any attempt.

A There should be branch where payment is to be made. 5) Thumb expression is not accepted on DD 6) The following are the parties. 3) Legal provisions are same as that of cheque. SCRUTINY OF APPLICATION The DD application must be scrutinized by the counter clerk in respect of following points.REMITTANCES DEMAND DRAFT 1) Demand draft is a written order drawn by a branch of a bank upon the branch of same or any other bank to pay certain sum of money to or to the order of specified person 2) Demand draft is a negotiable instrument. B full name of payer should be mentioned C amount in words and figures must be same D application to be signed by the purchaser TELEGRAPHIC TRANSFER ■ Transfer of funds from one branch to another branch of the same bank or upon other bank under special arrangements. a) purchaser b) issuing branch c) drawee branch d) payee A demand draft may be issued against the written request of the customer before issuing it must be seen that the demand draft is in order. 4) It is to be ensured that purchaser can at least sign. ■ Telegraphic transfer is not negotiable Page 49 .

■ The funds are not payable to bearer ■ Minor cannot avail this facility PARTIES Following are the parties involved ■ Applicant ■ Drawing branch ■ Drawee branch ■ Beneficiary Full name of the beneficiary or account number should be mentioned in the application form. ■ All the remittance must be controlled through number. ■ Mail transfer is not negotiable ■ The procedure is same as for DD ■ All precautions must be observed PAY ORDERS ■ Pay order is meant for bank own payment but in practice they are also issued to customers. ■ Instruction regarding mode of payment should be obtained. ■ A record in the remittance outward register should be maintained. The following are the parties A purchaser B issuing branch Page 50 . ■ A pay order is written authorization for payment made in a receipt form issued and payable by the bank. MAIL TRANSFER ■ Transfer of funds from one branch to another branch of the same bank with in or out side the city is called mail transfer. To the person named and address.

confirming balances and requesting statements / cheque books. There are more than 1045 branches of MCB all over Pakistan and out of these more than 300 branches are fully computerized Almost all . This machine is used to transact in one's account without intervention of humans. ATM NETWORK: ATM stands for Automatic Teller Machine. This network covers more than the 27 cities of Pakistan including the provincial capitals and large commercial cities of the country. the need for a technology department at each branch is growing. MCB has the largest ATM network in the country at the moment with almost one ATM at each online branch and also ATM terminals at International Airports. Now customers do not have to wait long for their transactions and can operate their account through all the online branches. ■ A record of all issued and paid should be maintained. Now a day.the branches of big cities are computerized. therefore.C payee ■ Charges must be recovered at prescribed rate. Page 51 . MCB has also introduced the now concept of online banking. ■ Pay order should be prepared like demand draft. ■ Credit voucher should be prepared TECHNOLOGY DEPARTMENT Technological advancements are also affecting the banking industry. There are now more than 250 branches linked through this system and they can transact with each other directly using computer systems at their own branches. The foreign banks have a competitive edge over all local banks in their technologies' advancements and automated systems. a computer division is working in each city to provide service to ad the branches of that area. Local banks have also realized the gravity oil this situation and are striving to add computerized systems to their branches MCB is ahead of all other local banks in this field and now it is in a position to even compete with foreign banks. These machines are basically used for taking cash.

This system identifies the card holder and his PIN Number. Now MCB has also entered into a contract with Cirrus which is a subsidiary of MasterCard.only. A person can withdraw from any machine across Pakistan with having an account in only one branch of MCB. This contract will enable an ATM card holder to use his account even when he is out of country at all the ATMs where Cirrus logo is displayed. 25000/. 500000/. International Cards are issued in collaboration with Cirrus and are useable all over the world with maximum withdrawal facility according to the standards of Cirrus. The annual fee for this card is Rs.as their average balance. Green Cards are ordinary cards with a maximum withdrawal facility of Rs. These cards are issued to the persons having more than Rs.000/in a day. In this system all the machines are linked to central banking host at IRM division Karachi through either satellite or telephone controller.ATMs are operated through a card issued to the valued customers and by application of Personal Identification Number (PIN number). 300/. Gold Cards are special cars with maximum withdrawal limit of Rs. Page 52 . This was only possible with the help of online system. 10.in a day.

I really enjoyed working with the staff of Kutchery Chowk Gujrat (1297)and having a wish to be employee of MCB. I feel highly indebted to work in this Branch on the request of the manager of that branch because I learnt a lot in that branch. and Pakistan Telecommunication Corporation Limited by putting the Page 53 . Branch Code Address Contact Numbers 1297 Kutchery Chowk. It was almost impossible to work in all the departments within that limited time. GUJRAT 053-3524692 In the Muslim Commercial Bank Ltd. Following is the brief introduction of the branch.Chapter#5 Internship Program INTRODUCTION: I had done my internship in MCB bank limited. Sui Gas Companies. During my internship training in the MCB as I early mentioned that I have worked in different departments & seats and learnt the followings UTILITY BILLS COLLECTION Muslim Commercial Bank Ltd. G. collects utility bills on behalf of WAPDA. But on my request.T Road GUJRAT. the staff of the branch provided me the opportunity to work in the different departments for the sake of practical knowledge.

Date of payment. The bank charge commission on the bills. 4. Further I am going to express the basic requirements and steps involved in the opening of an account. HOW TO OPEN AN ACCOUNT (IN GENERAL) Before opening an account in MCB I observed that the following points must be considered in this regard. 5. 3. The Bank reserves to itself the right to refuse to open and account without assigning any reason. One copy of the scroll is with the bank for evidence whereas the original copy with the receipt of the bills is sent to the billing department of the respective corporation. The account holder should sign the account opening form in the presence of bank officer and the signature is duly verified. Against submission of the Bank‟s prescribed application form. Basically I think that the opening of an account is the establishment of a contractual relationship between the banker and the customer. 1. OPENING NEW ACCOUNT BASICS During the span of mine internship in MCB I learned and observed a lot of about the opening of an account. as may be required and account may be opened. Minimum amount to open an account is required regarding the nature of account. 2. PROCEDURE TO OPEN AN ACCOUNT Page 54 .stamp on the utility bills “Paid”. Another account holder of the bank should properly introduce the new customer. By opening an account at a bank a person becomes a „customer‟ of a bank. 6. After receiving utility bills a list is made on the form which is called Bills scroll form. A copy of identity Card is required by Bank. Each account shall be allotted a distinct number that is to be quoted in all correspondence with the bank relation to the account. Signature of the officer receiving the utility bills. duly introduced in the manner provided and on supplying such document.

Address 5. I observed and found Cheques are received for the following purposes. 2) Signature of Drawer. Full Name of Applicant 3. Page 55 . which is necessary to be known by the bank. Nature of Business 8. All information. Address & Signatures 9. are requirements of the application form. Introducer‟s Name. Title of Account 2. Special instruction regarding the account 10. i) For Cash payments ii) For transfer(from one account to another account) iii) For Clearing I) FOR CASH PAYMENTS Cheques which are presented on Bank counter must be checked in the following way: 1) Date. 3) Signature of Payee. 4) Whether Bearer has cancelled. Currency of account 7. Signature of the applicant PROCEDURE TO HONOUR A CHEQUE During my internship training in the Muslim Commercial Bank Limited. 6. Form also requires the essential documents to be attached by the customer. the bank officer gives him an application form.According to my practice in MCB. Telephone No. Basically following information is required to open an account with MCB 1. Initial Amount of the Deposit 11. Occupation 4. when a customer wants to open an account.

II) CHEQUE FOR TRANSFER: When cheques are presented to be sent for collection and drawn on bank situated within the city then there are three stamps to be put on face as well as on back of cheque.5) Whether Payee account duly is there. c) Bank Manager Stamp (back). b) Stamp for Token (on the back of cheque). Only in MCB branches. 6) Match the figure and wordily amount of cheque. Two stamps are put on cheque. If condition 4&5 exist then check the signatures of Drawer. 4) Particulars. Page 56 . Note: Payment is also made when cheques of same branch account is presented for transfer to other account in same ranch along with cheque for payment. 3) Amount of cheque. When all above matters are satisfied then come to the Token register and check: 1) Token number. • Signature of token giver. On stamp which is put for token their details are as follows: • Token number. a) Cash Payment (on the face of cheque). b) Transfer Stamp (face). 2) Cheque number. a) Crossing Stamp (face). • Time of giving token to client.

Clearing credit vouchers are entered on clearing sheet. CHEQUES IN COLLECTION: When cheques received in clearing are intra city then these are controlled under CC. b) Name of bank on whom drawn. 2. After completing that performa cheque is posted along with performa. In clearing register future date and day is putted. c) Branch. Then a performa is prepared in which Bank on whom was drawn.CHEQUES FOR CLEARING: There are two stamps put on each cheque. At the beginning of the day clearing return sheet is received. Such credits are balanced by giving debits to cheques received in clearing from other branches. Clearing received is more than clearing delivered then Credit voucher. sent for clearing: a) Crossing Stamp. Cheques and vouchers are then separated and Cheques are sent for clearing. A summary is prepared and sealed after noting the Page 57 . CLEARING Following information is entered in clearing register. Clearing delivered is more than clearing received then Credit voucher. b) Manager Stamp. credit vouchers sent for clearing are entered on the sheet's credit side. Vouchers are made if 1. these cheques are recorded in day book then allotted number and then serial number. beneficiary name are recorded. amount. their total amount along with total number of instruments. Clearing is sent after entering in register. Cheques are sent to NIFT after taking them on calculator. e) Amount. a) Name of favoring party. On the same day. First of all. cheque number. d) Cheque number.

Bank debits the client‟s account for excise duty of Rs. Page 58 .number of seal in summary. Usually only one cheque book is issued at a time. Telephonic Transfer DD. After posting the bank officer calculate tax if National Tax number is not there. the first cheque book is given to the customer only when all the required documents are checked. First of all. When cheque is received it is first posted in computer section in order to check the balance of account.50/. These are paid in cash or otherwise by cheque. the account of beneficiary must be there in branch. i.4% Commission and postage charges are also calculated.Demand Draft PO. The signature of the customer is verified by the bank and new cheque book is issued to the customer and serial numbers of the cheque are duly entered in the book of the bank.100000 @0. may ask the bank to stock as number of cheque books in their name and to point their name on these cheque books.40000 @0. Along with the signature. This slip is duly filled and singed by the customer. The cheque book also carries a requisition slip for the issuance of the new cheque book.per cheque and keeps the cheque book ready for the customer. ISSUANCE OF CHEQUE BOOK During my period of internship in MCB i observed that when a account is opened then a cheque is issued to thecustomer for drawing his money at per rules. When a customer opens an account with the bank.2. he is provided with cheque book for withdrawals from account. DD is also prepared and beneficiary can get payment. however big concerns who need a number of cheque books at a time. fifty or hundred leaves. Following procedure is adopting for the issuance of cheque. person should also write his full name & address. Rs. as on his advice. However. 1% More than Rs.e. A cheque book contains ten.Payment Order For TT. Performa is filled by purchasing party along with cheque or cash payment. twenty five.

Once receiving party will pay the RTCs along with credit vouchers in their relevant account with Bank. It was a great experience for me to work with such a well-known and reputed bank.1000 v Rs.03% is charged id National Tax number is nor available. Payment will be credited to account of paying party. since its privatization and during this period. RUPEE TRAVELLER CHEQUES: RTCS When RTCs are to be issued payment is received in cash or by cheque. The account number for which the cheque book is issued and the number of leaves are also recorded in this register when the cheque book issued an entry is passed in the cheque book issue register. MCB has performed well and has sustained growth.5000 v Rs. Learning summary: I did my internship at MCB G.100000 Specimen signatures of buyer are taken and clearing slip is in four pages.10000 v Rs. one to RTC division.The officer keeps and maintains the cheque book register Cheque book inventory and cheque books issued are recorded in this register. The bank has completed more than 18 years. Payment is made.T road Branch. one copy of deal and ID card copy. One is sent to Head office. RTCs can be endorsed to other party. RTCs are issued in consecutive number of face value of v Rs. one of the leading banks of Pakistan. The internship proves very valuable for me as it not only enhances my skills and qualifications but also gives me experience and brings clarity in my Page 59 . one for bank record and one for client. If client wants immediate payment of RTCs then he will bring RTCs with two signatures.50000 v Rs. tax @0.

but after internship all doubts are vanished. I gained a number of skills that will be beneficial for me in my future career some of these are            Enhanced my confidence level Strengthen my interpersonal and communication skills Developed work ethics in me Helped to improve team work and leadership skills It gave me a lot of confidence and manners to behave in the working environment Improved time management skills and made me punctual It helps me to understand how to behave in different situations professionally It made me think critically in difficult situations and act accordingly Improved my decision making capability After doing internship I acquired good work habits It provided in depth knowledge of the formal functions of the banking sector. I am always interested to get a job in banking sector but there were some doubts in my mind about the banking environment. Page 60 . bank timings etc. Planning about the career is always difficult as there are many doubts regarding different possible opportunities and it is really difficult for the students to select the best possible place for their future job because they do not have enough knowledge about different work settings. Internship provides opportunities to experiment and purse careers that match academic and personal interest. they do not have the experience that can provide help to them in attaining the best possible job alternative.future plans. Six weeks internship program helped me to critically analyze the banking sector as a whole and I can openly say that banking sector provides conducive environment for career growth. I have personally experienced the banking environment and concluded that it is very good and safe for females.

The profits of MCB have grown considerably during the last few years and this trend is expected to continue into the future. marketing. SBP‟s prudential regulation requirements and its SROs and international banking requirement as well as to its own set policies Ø Strong and its attractive products Ø Better focus on customer services and customization Page 61 . innovation in products and services is performing well in financial market. ambitious and diligent condition for the bank.It is evident from this report and the financial statements of MCB that it is making progress by leaps and bounds. Ø Has established a good reputation in the banking market Ø Strict adherence with the banking procedures requirements. we conclude that MCB has a very prosperous present and future. And then bank will be really in such a situation and position to compete its competitors in the country as well as on international level. Strength: The strengths of MCB are as: Ø MCB is the first Pakistani privatized bank and because of its quality management. And with the above mentioned sentences I think there is too fault of the customers and in order to make the proper working of the bank the customers should also cooperate with the bank which will be really a good. development and integrity. Therefore. Side by side of it I think that if bank would be able to cover and control on the above mentioned recommendations then it would be in such a situation that will really lead it towards the road of prosperity. which assures the shareholders of wealth maximization.

Ø In MCB there is lack of specialized skill because of job rotation policy of human resource department. Ø Adoption of information technology will improve the customer services.Ø Flexibility with the changing environment Ø Induction of the highly qualified professionals to change overall set up Weaknesses: Ø The noted weaknesses of MCB are as: Ø The majority of people are not well aware about the products of MCB. remittances and forex department through effective promotional and liberal policies. The bank employees should try to accommodate behaviorally all type of customers. Ø Process of development is bit slow due to its conservative approach Ø Never prefer to be a leader and prefer to be a follower of others Ø Slow improvement and acceptance of technological changes Ø More emphasis on deposit accumulation and less on their mobilization Opportunities Ø Greater potential and opportunities for Credit Division if Liberal Policies being adopted. the bank official time of closing is 5:30pm but due mismanaging of time allocation and work the staff is normally on their seats till 7:00 or 8:00 clock. Ø Therefore it should advertise extensively especially RTC and Master Cards. Ø Can grab more market share for its RTCs. rich and educated people and the poor looking customers feel some bit strange in the environment of the bank. Ø A behavior has been noted that bank tries to feel at ease with good looking. Ø Mismanagement of time is another big mistake in MCB branches. Ø More mobilization of accumulated deposit is possible through innovative financing Page 62 . Ø Inclusion of highly qualified professional can change the whole scenario and position of the bank if they have given the due liberty in performing their duties. The bank should concentrate upon increasing its abilities on individual service basis.

Page 63 .to · Agro Based Sector · Leasing · Personalized Financing Threats Ø Change in government policies has affected the banking business. Ø Introduction of credit marketing by local and foreign banks is badly affecting the mobilization of the MCB‟s deposits due to the non presence of such department in it. Ø The decrease purchasing power of consumer in the current economic situation of the country affecting the business activity speed too much and the result is the low investment from the investors in new projects can create problem for the bank because it is working a lot in trade. Otherwise he will be out the market. Ø Employees unions have been allowed if not managed properly can affect performance. Ø The Competition has become severe by the entrants of so many banks. So to exist one will have to prove himself in its services through excellent management and will have to satisfy its shareholders. The freezing of foreign currency accounts is a vital example of letting people not to trust on banks. Ø Introduction and adoption of information technology as well as promotion of the computer culture by the local as well as foreign banks will definitely affect the services and business of the MCB. Still banks have to wait to get permission of state bank.

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A big portion of the home remittance is sent by Pakistan working capital through Muslim Commercial Bank Limited. And I think this will shake the confidence and working habit of the employees. Alt the employees should have these courses according to their requirement. As we know a big portion of this amount is wasted purchasing of luxuries. In my opinion all the employees should have regular job experience all out-look towards banking. The controlling body is responsible for the productive performance of the Bank. Its deposits are growing day by day and so its profitability. Foreign experts can also be called for this purpose. Following are my observation and suggestion to improve the efficiency for the development of the economy. Refresher Courses for the staff are most important in any international organization. Staff turnover particularly of trained staff result in financial and other losses. The amount spent by the bank on employment. are sticking to one seat only with the result that they become master of one particular job and loose their grip on other banking operation. There is a criticism on the banking management that the salaries of the employees are decreasing in every succeeding year. which might not be a good sign for the bank from future prosperity point of view. MUSLIM COMMERCIAL BANK is performing well. The rate of profit should increase 1% or 2% than other banks and it would be profitable step for bank.From the Quantum of the profit and its financial data it can be easily judged that after privatization. There is another recommendation about the bank that there is no proper timing of the bank and there is made an unnecessary delay in the banking transactions. induction and training of outgoing officers constitutes to beat till another officer should ready prove this work. Most of the bank employees. The people motivated to save money by offering the deposit through various investment schemes. The promotion policy should be adjusted. Every year some of the employees should be sent for training to other countries and Page 65 . The exodus of bank officer in the past has worsened the situation.

Old and lazy staff should be replaced by young. qualified and energetic staff. Some more reading material should be provided. Recruitments should be strictly on merit basis and induction should be after proper and extensive training. Foreign branches should be opened in order to capture the international market and to earn international repute for the bank. As such system should be designed that every employee who has some problems with his officers can communicate it to the higher management and some steps must be taken to improve that. The employee should be provided the opportunities to attend and participate in seminars and lectures on banking. Bank should give some more incentive to its employees in order to remove the conflict between lower and higher officers and should try to improve the working condition of the bank. equipment.employees from other branches should be brought here. Working environment. The purpose should be to educate the employees with the advance studies in their field. furniture and staff dressing should be according to the modern banking style. Bank should adopt the global organizational banking structure to meet the international standards of banking sector Page 66 . Proper attention should be paid to upgrade customer services.

com.org/journal/index.com.com/essays/Pakistans-Banking-Sector-Industry Analysis/181995           http://en.asp Page 67 .php/ijbm/article/view/1179/1127 http://www.mcb.blurtit.wikipedia.com/q501915.oppapers.asp\ http://www.org/wiki/Muslim_Commercial_Bank http://www.pk/psc/loans/easy_personal_loan.REFERENCE:  http://www.pk/psc/online_services/pay_bills.ccsenet.asp Annual Report2008 http://www.wikipedia.mcb.mcb.pk/psc/cards/mcb_visa.org/wiki/Economy_of_Pakistan http://en.html MCB Brochures Manuals Annual Report2005 http://www.com.

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