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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1 3.4 2.2 2.4 1.S.3 2.2 1.3 1.NO 1 2 3 Chapter#1 1.5 2.8 Chapter#3 3.6 Chapter#2 2.2 3.1 2.7 2.3 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 .5 1.6 2.1 1.

2 4.1 4.1 Capter#6 My internship work Introduction of branch Internee work Learning Summary Conclusion SOWT analysis Recommendations Chapter#7 References Page 5 .Chapter#4 4.3 Chapter#5 5.

over 222 MCB ATMs in 41 cities nationwide and a network of over 12 banks on the MNET ATM Switch. enhancement of customer service standards. with a network of over 900 branches. Foreign Exchange and Customer Service Office department and I successfully completed all the task/duties that were assigned to me. I learned about documentation requirements and record keeping for different activities and processes. 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. 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. Advances. over 750 of which are Automated Branches. especially the documentation requirement for different kinds of financing facilities. Advances. Foreign Exchange and Customer Service Office department and bank as a whole. MCB's operations continued to be streamlined with focus on rationalization of expenses. During my internship in MCB I worked in Remittances.MCBBank Limited (Formerly Muslim Commercial Bank Limited) has a solid foundation of over 50 years in Pakistan. Page 6 . expertise and reduce delivery cost. I also learned bank‟s correspondence with their customers and within branches.

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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housing finance and enhanced lending to the agriculture sector. During the first six months of the ongoing fiscal year. despite having only 15 percent of deposits and 16 percent of advances. earnings are also expected to improve due to ventures into consumer finance. registering overall growth in the deposit base and profits.039 billion in Dec 2004. as the bank has achieved pre tax profits of Rs. Commercial banks in the private sector had performed well since their inception. 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. Page 10 . Total assets grew by 8. there was also an increase of Rs 277 billion in the net advances of the scheduled banks. The banks also managed to maintain a healthy credit portfolio. While the income from core banking activity has increasing due to higher business volume. This translates into earning per shares of Rs. Profit after tax has more than doubled compared to the corresponding period for 2004 and exceeds Rs.437 billion in June 2004 to Rs 1.listed banks is also increasing. Net advances grew by 19.43. 7.2 billion for the same period in 2004.800 billion in June 2004 to Rs 3. Foreign banks have a strong presence in all major cities and are targeting high net worth individuals and blue chip companies. 3 billion – highest ever profit in the history of MCB. 2. total assets of all the scheduled banks increased by Rs 239 billion.5 percent from Rs 2. 4.2 billion. During the first six months of 2004-05. MCB’s Performance Overview The first half of 2005 was very promising for MCB.3 percent from Rs 1.714 billion in Dec 2004. compared with Rs. Their strategy is quite successful as they account for about 34 percent of total sector profits.

MCB has become the only bank to receive the Euromoney Award for Excellence for the fifth time in last six years.Advance and deposit increased to Rs. which will be effective from 2007. In addition.com/essays/Pakistans-Banking-SectorIndustry Analysis/181995 CHAPTER#2 Page 11 . MCB has once again received the Euromoney Award 2005 for the “Best Bank in Pakistan”. which was due to the issue of right shares and retained earnings. 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.oppapers.  http://www. 300 billion marks. Asia Money has also declared MCB as “The Best Domestic Commercial Bank in Pakistan” for the year 2005. This would also help to meet the capital requirement under Basel Accord II. 156 billion and Rs. Based on continuing growth and consistently outstanding performance. Additionally the bank‟s assets expanded by 16% during the half year ended 2005 and crossed Rs. 241 billion reflecting a growth of 14% and 10% respectively.

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

We focus on our customers as an active component in growth process. We continue to offer services that expand their access to excellent and affordable technologies. Our qualified and experienced workforce must work closely with our customers to continually enhance their confidence and trust in us. http://en.wikipedia.org/wiki/Economy_of_Pakistan Page 13 .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.

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 Page 14 .

Best Bank In Pakistan Award 2004 Page 15 . Best Bank In Pakistan Award 2005 MCB has again received the esteemed Euromoney Award for the “Best bank in Pakistan”. Best Bank In Pakistan Award 2006 MCB has yet again received the esteemed Euromoney Award for the “Best Bank in Pakistan”. It is the only bank to receive the Euromoney Award for Excellence for the sixth time in the past seven years.Best Domestic Commercial Bank Award 2005 Best Domestic Commercial Bank Award 2004 Euromoney Awards Best Bank In Asia Award 2008 MCB has been awarded as a Euromoney Award 2008 for the " Best Bank in Asia". It is the only bank to receive the Euromoney Award for Excellence for the fifth time in the last six years.

In a continuous winning streak. Together we work with quality. MCB once again takes pride in being conferred with Euromoney's prestigious award of excellence. Your trust in our ability and our commitment to deliver has again won us the Euromoney Award 2003 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". for being the "Best Bank in Pakistan" for the fourth time in the last five years. 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". integrity and dedication. striving to achieve collective success by understanding changing trends and assimilating into diverse cultures. Best Bank In Pakistan Award 2003 MCB believes in you. Asia Money Awards The Best Domestic Commercial Bank Award 2005 Page 16 .

The Best Domestic Commercial Bank Award 2004 MCB has a distinction of winning the Asia Money 2004 award for being "The Best Domestic Commercial Bank in Pakistan"  MCB Brochures Manuals Business volume: MCB Bank Ltd. Type (KSE:[2])Public Industry Banking Capital Markets Founded 1947 Headquarters Registered Office: Islamabad.MCB Continues to shine as once again Asia Money declares MCB as "The Best Domestic Commercial Bank in Pakistan" for the year 2005. Principal Office: Karachi Pakistan Page 17 .

782 Billion (2009)[1] PKR 26. PKR 35. Consumer Banking etc.02 Billion Website www. Credit Cards. Page 18 . Due to the low initial deposit.com. the account can be opened by people from all walks of life and still avail the facility of daily product profit calculation.753 Billion (2009)[1] Revenue Net income Total assets USD 6. Savings. a Rupee savings account is one of MCB Bank‟s most popular products.mcb.pk  Annual Report2008 Deposit Accounts Khushali Bachat Account Khushali Bachat Account.Key people (Chairman)Mian Mohammad Mansha Products Loans.

Pak Rupee Term Deposit Page 19 . you have access to a countrywide ATM network convenient cash accessibility 24 hours a day. Just purchase a Monthly Khushali Certificate and you will enjoy a steady income of your total deposit every month. The facility also provides you with unlimited daily transactions with a limit on maximum withdrawal amount through the ATM machines. 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. Pak Rupee Current Account MCB‟s Pak Rupee Current Account offers you the convenience of unlimited withdrawals i. Pak Rupee Savings Account MCB‟s Pak Rupee Savings Account offers you attractive returns on your Pak Rupee investment. In addition. you have access to a countrywide ATM network convenient cash accessibility 24 hours a day. In addition.e.Mahana Khushali Bachat MCB Monthly Khushali Scheme provides you with a steady income every month. The facility also provides you with unlimited daily transactions with a limit on maximum withdrawal amount through the ATM machines. access to your funds whenever you want without any notice.

MCB Foreign Currency Term Deposit MCB Foreign Currency Term Deposit gives a higher rate of return. 6 months. 2 years. 3 months. There is no limit on the number of transactions you make in a day. access to your funds whenever you want without any notice. 1 year. It gives the choice of 1 month. It gives you choice of 1 month. 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. 4 years and 5 year term deposits. 3 months.MCB Pak Rupee Term Deposit gives a higher rate of return. Saving 365 The MCB Saving 365 calculates profits on a daily product basis and gives you the facility of unlimited withdrawals. Foreign Currency Savings Account MCB‟s Foreign Currency Savings Account offers you attractive returns on your Foreign Currency investment. 1 year.e. UK Pound Sterling. 6 months. 3 years. Dollar. Dollar Khushali Account Page 20 . 3 years. 2 years. 4 years and 5 year term deposits.

you make a power move.blurtit. But with MCB Pyara Ghar it is now easy to step into your home and start living a real life. MCB Car4u Life is like a chess board. Like waiting for a home of your own.MCB CAR4U Auto Finance is the power move that assists you in more ways than you ever imagined. You plan your career options. with absolute satisfaction of cash flows. Today. you can open a Dollar Khushali Account at over 200 branches in Pakistan http://www.html Loan Products MCB Business Sarmaya “MCB Business Sarmaya” is the best Running Finance facility against your residential property which empowers you to manage your business dealings better. It is affordable.com/q501915. avail lucrative opportunities and expand your business.The Dollar Khushali Account. So act today and get MCB Business Sarmaya and thus improve your business. You analyze your business moves. a Dollar based account was introduced in 1993 at selected MCB Bank branches. Page 21 . no hidden costs. easy processing and above all. with lowest mark up. flexible conditions. MCB Pyara Ghar Some destinations require a long wait. But when you really want to improve your life.

inevitably will replace cash and cheques as the money of the future. Renovate or Construct your home the way you have always wanted. from gold to paper money and cheques.mcb. debit.asp\ Corporate Banking Cash Management Services Page 22 .MCB Pyara Ghar is an ideal Home Finance from your own bank that lets you Purchase. MCB Rupee Traveler's Cheques.pk/psc/loans/easy_personal_loan. and electronic cash products.com. people have tried to find more convenient ways to pay. and. Buy a car. Plastic or "virtual" money. MCB Master Card Since the beginning of time. with the Internet. The product has been extremely popular and is preferred over cash by customers while traveling and in all walks of life. Today.The safest way to Carry Cash http://www. money is moving away from distinct hard currencies and towards universal payment products that transcend national borders. credit. Purchase a new TV. MCB Rupee Traveler's Cheques MCB Rupee Traveler's Cheques were first introduced in 1993 as safe cash for traveling and travel related purposes. Take that much-needed holiday. time zones. Finance a better education for your children. even physical space. 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. Refurnish your house.

shipment etc. over 222 MCB ATMs in 41 cities nationwide and a network of over 12 banks on the MNET ATM switch. Working Capital Loans Based on the customer‟s specific needs. 269 online branches. Tailor.made solutions are developed keeping in view the unique requirements of your business. with more than 750 automated branches. Export Refinance. MCB is Page 23 . This also enables it to offer you a choice of paper based or electronic fund transfer solutions including collection amounts. Pre-shipment and Post. purchasing export documents. Term Loans MCB offers Short to Medium Term Finance to meet capital expenditure and short term working capital requirements of our customers. the Corporate Bank offers a num ber of different working capital financing facilities including Running Finance. 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). providing guarantees and other support services. The loans are structured on the basis of underlying project characteristics and cash flows of the business. Cash Finance. Online Services MCB ATM Services With a solid foundation of over 50 years in Pakistan.line transactions etc. cross branch on.MCB‟s network of over 900 branches in Pakistan enables it to collect and disburse payments efficiently with its cash management services.

MCB proudly introduces MCB MOBILE BANKING. but also eliminates undue interest on your day to day credit card transactions. Page 24 . MCB Call Center Keeping up with banking services can be tedious but not with MCB Bank. with comfort and peace of mind. This success has been possible because of a never-ending drive to achieve higher levels of excellence. It offers basic banking services for your convenience.positioned at the forefront of the banking industry in Pakistan. It provides 24-hour direct access to your bank account. MCB Debit Card Now MCB brings a secure. eliminating the need for you to make unwanted trips to your branch. convenient and quick payment facility that enables you to do purchasing by using your existing MCB ATM / MCB Smart Card as a DEBIT CARD. MCB Smart Card MCB now brings you MCB SmartCard -a secure and convenient instrument of payment with unmatched functionalities. constantly striving to raise the level of performance. Your balance is always within your reach and you spend accordingly. MCB Mobile Banking At the forefront of technological excellence. where phone service is at your fingertips. The convenience and flexibility of MCB SmartCard will help you live a smarter life. Just dial our Call Centre from the comfort of your home or office or wherever you happen to be. It not only helps you manage your expenses. The convenience of accessing your account balance information and mini statements whenever you want or wherever you may need them.

we offer the following products: -Makhraj Saving Account -Makhraj Ianat Account -Makhraj Term Deposit Fund Based Facilities Ijarah Products MCB‟s Islamic Ijarah. MCB will be the owner of the asset.mcb. Under this scheme.pk/psc/online_services/pay_bills. hence the term „Wa Iqtina‟. 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. Types of Ijarah Car Ijarah Equipment Ijarah http://www.com. analogous to the English term 'leasing‟.Deposit Schemes For customers who are looking for a deposit opportunity where they can purse their funds and reap halal returns on it. and the customer (lessee) will be given the asset to use for a certain period of time in return for monthly rental payments. is based on the „Ijarah wa Iqtina‟ concept which means the sale of the asset to the lessee after the Ijarah has matured.asp Page 25 .

Page 26 . MCB has also provided a new look to its website which is user friendly and considerably easy to browse. currently with six payment partners. Similarly. both individuals and companies. 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. ATMs and MCB Call Centre. 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. To provide timely and updated information. The Bank has also launched a running finance facility against mortgage of property. Similarly. the Bank also took initiatives to increase the usage of debit facility. The branch network was expanded to Lahore and Multan during the last year and recently been extended to Hyderabad and Faisalabad. which were confined only to current account facility. The Islamic Banking initiative has been very successful in attracting new customer. have grown into stronger business relationships. The Bank introduced more IT based products to cater to the changing lifestyles and needs of the customers. MCB Virtual-Internet Banking was launched with wide ranging banking solutions for the customers ranging from individual to corporate customers and it has become the most preferred Internet banking solution in the country. Technology continued to play an important role in improving and expanding product offerings. With the relaunch of auto finance and house finance products. those relationships.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. the Bank pushed the products with full thrust.

feasibility is also being carried out for entering other international markets. the Bank is focusing on performance and introducing a more robust performance management system. Management of Human Resources has been one of our core focus areas. enhancement of customer service standards. expertise and reduce delivery cost. re-alignment of back-end processing to increase productivity. while SYMBOLS Enterprise Operations Center will serve as its core banking transaction-processing engine. MCB Bank will run SYMBOLS eFinance modules to deliver personalized services to its customers over multiple delivery channels. The Bank introduced 'reward for performance' where high potential officers were identified and rewarded accordingly.Some wide-ranging new strategic initiatives were also taken upwhich will be important for the Bank in years to come. Furthermore. 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. 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. process efficiency and controls. To increase its international presence. MCB's operations continued to be streamlined with focus on rationalization of expenses. handling trade transactions of select countries in the AsiaPacific region. The Bank will also be implementing the full suite of the latest version of SYMBOLS Version 8. Challenge for MCB is to provide an environment in which employees can better realize their potential. In view of the competitive environment. A private company has been formed in Hong Kong (fully owned subsidiary of MCB) in partnership with Standard Chartered Bank. MCB Bank aims to raise the level of its customer service and its time to market in new product Page 27 . MCB is committed towards attracting. It is projected to earn US$ 1 million in its first year of operations. By implementing SYMBOLS. retaining and motivating outstanding people. MCB is also strongly committed to training its staff at all levels.

Deposits showed a steady increase of 13% to bring the figure to Rs 292 billion as compared to Rs 257.2b in FY06.1b with an earnings per share of Rs 6.55 in 1Q'08 vis-a-vis of Rs 3.4 billion in FY06.offerings for its three core banking businesses in Corporate. The asset base increased by 20% from 342 billion to 420 billion in 2007 as compared to 2006.org/wiki/Muslim_Commercial_Bank MCB posted an after tax profit of Rs15.93 in 1Q'07. http://en. while the investments increased by 78% to Rs 113 billion. The non-mark-up income increased by 20% to Rs 6 billion.30 in FY07 as compared to profit after tax of Rs12. depicting a growth of 10.7 billion with an earnings per share of Rs 5. Advances increased by 10% to Rs218b. depicting an increase in the cost of raising funds. The gross interest income grew by 23%.1 Page 28 .26b with earnings per share of Rs 24.9b from Rs21. Net interest income increased by 13% to Rs23.14b with earnings per share of Rs 19. while the interest expense grew by 74%. Commercial and Consumer Banking . Recent Results: MCB Bank Limited posted profit after tax of Rs4.0% in FY07. Net interest income of the bank grew by just 2.retaining its market leadership as Pakistan's progressive Bank.5% during the period to Rs 6. The major contribution came from a 148% increase from the capital gained on sale of securities. depicting a significant growth of 26.wikipedia.3% during the period despite dismal performance of banking sector during 1Q'08.33 in FY06.

§ Interest rate is increasing so loan taking has decrerased.pk/psc/loans/easy_personal_loan. Social And Cultural § Lack of experts is in our country regarding management hence innovative activities are slow and conventional methods are adopted.asp\ Political § Employment practices are expected to change. § Due to lack of confidence on government investor is reluctant so mobilization of funds is going to decrease. § Political interference regarding policies is expected to increase as current government is in race of power gain. § Staff cost is increasing as basic wage rate has increased and inflation has compelled to will compel to increase salaries. Economic § Inflation is very high which will decrease the demand as purchasing power is decreasing. http://www.0 billion in the corresponding period of last year.com.mcb. High cost of deposits was the main reason behind. Page 29 . § Value of rupee is decreasing which is pressurizing the economy. Associations are being allowed to work effectively which can affect the performance of the company both positively or negatively. § Operating costs are increasing due to inflation.billion as compared to Rs 6. § Unions.

lack of training. 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. MCB will have to follow it. But MCB will have to improve its computerized technology as some fake transactions occur by ATM. § Declining work ethics is also our problem which is mainly due to poverty.§ Cultural strain to savings is the reason due to which investment remains low . § 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. Page 30 . § Employees of each organization need IT training and organization has this trend. § Now a days computerized system is used by banks whis is very effective.lack of good governance and lack of good infrastructure helps creditor to cheat and heavy bad debts occur. Same situation is hoped to prevail. § Shortage of electricity is a big problem. § Inadequate Accountability .

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

Treasury management & FX Group and lastly Special Assets Management (SAM) Group. Usually includes multinational & public sector companies. C) CONSUMER BANKING These are the branches which have exposure up to Rs. 20 million (excluding staff loans) Usually branches in large markets and commercial areas come under this category. The different operational departments are Consumer Banking & IT 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. Corporate Banking div. Financial & Inter branch div. 100 million but having a credit portfolio of more than Rs. 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. For effective handling of branches. The branches which has a credit exposure of less than Rs. Operational Management of the bank is being handled by a team of 10 professionals. 100 million. Banking operations div. Muhammad Mansha. 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. HR & Legal div. financial control & Audit div. Credit management div. 20 million and these include all Page 32 . it has been categorized into three segments with different people handling each category. B) COMMERCIAL BANKING. Commercial Banking div. This team is also headed by Mr.

Recently the organizational structure was re-designed as follows: Province wise branches Corporate Consumer Commercial 20 branches 637 branches 383 branches NUMBER OF EMPLOYEES: MCB is the largest bank of the country.the branches which are neither corporate nor commercial branches. Page 33 . It has the highly skilled and qualified employees to serve their customers. It serves its customers well. Total number of employees of MCB is 9704.

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

. 3) http://en.…………………… Zonal Office Branch Manager ……….…………………… Regional Office Zonal Head (VP) ………. 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 ………..org/wiki/Muslim_Commercial_Bank The purpose of banks is to provide some services to the general public. And for this Page 35 . 2.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.wikipedia..…………………… Branch (VP.. AVP.…………………… Head Office Regional Head (EVP) ………. GRADE 1.

The main functions and services which Muslim Commercial Bank Limited provides to different peoples are as follows. i) Furnishing trade information and tendering advice to customers. in modern time commercial banks play a very important role and their functions are manifold. g) Purchasing shares for the customers. f) Accepting bills of exchange on behalf of customers.purpose different banks provide different services to the people in different forms. h) Undertaking foreign exchange business. e) Issuing of travelers cheques and letters of credit to give credit facilities to travel. b) Collecting interest due. 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. 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. pensions and other sum due to customers. „Providing safe custody and facilities to keep jewellery. The Muslim Commercial Bank (MCB) is a commercial bank. documents or securities. dividend. For proper functioning of branches and the over all bank has been divided in different departments. d) Acting an executor. trustee or attorney for the customers. c) Transfer of money from place to place. 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 Page 36 . few of those are as under: a) Collecting cheques and bill of exchange for the customers.

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

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

This increase in cost has left foreign currency account of no use. therefore. i. 1000/-. The profit is paid on these accounts on the minimum balance during a month for the whole of that month. NOTE: PLS Saving. PLS 365 SAVING A/C: This is a special type of saving account in which customer maintains a minimum balance of Rs.This type of account is for those persons who want to make small savings'. There is also restriction on the number of withdrawals as well.000. This type of account is opened with a minimum deposit of Rs. KUSHALI BACHAT A/C (KBA): This is an advance form of PLS saving a/c. 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. Zakat & other withholding taxes are deducted as per rules of the government. Before nuclear tests of 1998 these accounts were opened in four major currencies but now these are only opened in USD ($). up to 4 times in a calendar month. 300. 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. in this type of account. The minimum balance requirement for this type is Rs. 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.e. 2500/-. now bank prefers to accept Page 39 . All other rules of saving account are applicable. 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. However.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. Kushali Bachat & PLS 365 saving accounts can be opened in foreign currency also. If a big amount is required a seven days notice is required before the withdrawal. 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.

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

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

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

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

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

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

B) LOAN AGAINST PLEDGED OF STOCK: Page 46 . Interest is charged on the whole amount of a fixed loan. In case of demand loans against gold or documents. This type of loan is normally granted against security of gold documents. 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.Advances are the most important source of earning for the banks. which is a bank receipt. On repayment of loan. 1) Loans 2) Cash Credits 3) Overdraft 1) LOANS: Loans are monetary assistance by a financial institution to a business. This receipts states that he ornaments returned are complete and in order. After the opening the gold loan account a token is given to the borrower. 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. 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. The loans are granted by the bank in lump sum. a demand promissory note for the amount of loan is taken from the borrower loans are granted under. MCB is also giving full attention towards this aspect and it is also obvious from the growing portfolio of advances and from very low delinquency rate. The borrower withdraws whole the amount 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. the gold or ornaments held as security for it. so these types called fixed or demand loans. A) LOAN AGAINST GOLD: Under this type of loan. The interest gold loan is to be applied with quarterly.

sanctioned by the head office.In case of advancing such types of loans. The report enables the bank to judge the likely return of the business. the bank checks following particulars of the client: 1) Credibility 2) Feasibility Report By Credibility. cash credit form is taken. bank Judges the credibility of the client by his past bank record. the following precautions are dept in the 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. even if the customer does not withdraw any amount. ADVANCES AGAINST PLEDGE STOCK IN TRADE OR PRODUCTS When a cash is granted against the pledge of stock or product. The rate charged by the bank on cash credit in 46 paisa per thousand on daily basis. 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. CBI report etc. Customer is granted a loan up to a certain limit. Feasibility report is on the running or proposed business of the client. HYPOTHECATION OF STOCK ON FINISHED PRODUCTS: Page 47 . from the certain products or stock. In order to avoid the danger of idle fund. 2. the bank charges a certain rate of interest. The credit is usually given against the securities of goods or merchandize as follows: 1. 2) CASH CREDIT Cinder such cash account is opened in the name of the customer who borrows from the bank. from which he can draw when he requires and interest is charged on the amount actually utilized by the customer.

but it is possible that the borrower may actually resist any attempt. 3. whereas. MORTGAGES OF PROPERTY: Title deeds of immovable property are accepted by the bank only as collateral security or alternatively as unauthorized security. 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 . they remain in the possession of the borrower or guarantor and are merely charged to the bank under documents signed by them.The difference between pledge and hypothecation is that under a pledge the borrower's goods are placed in the bank's possession under own lock. Even though the documents empower the bank to take possession of the goods hypothecated. under a hypothecation.

5) Thumb expression is not accepted on DD 6) The following are the parties. 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.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 There should be branch where payment is to be made. 4) It is to be ensured that purchaser can at least sign. 3) Legal provisions are same as that of cheque. ■ Telegraphic transfer is not negotiable Page 49 . SCRUTINY OF APPLICATION The DD application must be scrutinized by the counter clerk in respect of following points.

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. ■ 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. The following are the parties A purchaser B issuing branch Page 50 .■ 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. ■ A pay order is written authorization for payment made in a receipt form issued and payable by the bank. ■ A record in the remittance outward register should be maintained. ■ All the remittance must be controlled through number. ■ Instruction regarding mode of payment should be obtained. To the person named and address.

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.C payee ■ Charges must be recovered at prescribed rate. Page 51 . ATM NETWORK: ATM stands for Automatic Teller Machine. therefore. These machines are basically used for taking cash. Now customers do not have to wait long for their transactions and can operate their account through all the online branches. This network covers more than the 27 cities of Pakistan including the provincial capitals and large commercial cities of the country. Now a day. 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. a computer division is working in each city to provide service to ad the branches of that area. The foreign banks have a competitive edge over all local banks in their technologies' advancements and automated systems. the need for a technology department at each branch is growing. ■ A record of all issued and paid should be maintained. 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.the branches of big cities are computerized. ■ Pay order should be prepared like demand draft. MCB has also introduced the now concept of online banking. 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. ■ Credit voucher should be prepared TECHNOLOGY DEPARTMENT Technological advancements are also affecting the banking industry. confirming balances and requesting statements / cheque books.

oppapers. Green Cards are ordinary cards with a maximum withdrawal facility of Rs.php/ijbm/article/view/1179/11 27  http://www.in a day.ccsenet. 10.only.org/journal/index.com/essays/Pakistans-Banking-SectorIndustry Analysis/181995 Page 52 .as their average balance.ATMs are operated through a card issued to the valued customers and by application of Personal Identification Number (PIN number). This system identifies the card holder and his PIN Number. This was only possible with the help of online system.000/in a day. A person can withdraw from any machine across Pakistan with having an account in only one branch of MCB. Gold Cards are special cars with maximum withdrawal limit of Rs. These cards are issued to the persons having more than Rs. 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. In this system all the machines are linked to central banking host at IRM division Karachi through either satellite or telephone controller. Now MCB has also entered into a contract with Cirrus which is a subsidiary of MasterCard. 300/. 500000/.  http://www. 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. The annual fee for this card is Rs. 25000/.

the staff of the branch provided me the opportunity to work in the different departments for the sake of practical knowledge. GUJRAT 053-3524692 In the Muslim Commercial Bank Ltd. Page 53 . I really enjoyed working with the staff of Kutchery Chowk Gujrat (1297)and having a wish to be employee of MCB. But on my request. Branch Code Address Contact Numbers 1297 Kutchery Chowk. G.Chapter#5 Internship Program INTRODUCTION: I had done my internship in MCB bank limited. It was almost impossible to work in all the departments within that limited time. 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.T Road GUJRAT. Following is the brief introduction of the branch.

duly introduced in the manner provided and on supplying such document.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. Sui Gas Companies. The bank charge commission on the bills. 2. collects utility bills on behalf of WAPDA. The Bank reserves to itself the right to refuse to open and account without assigning any reason. Further I am going to express the basic requirements and steps involved in the opening of an account. A copy of identity Card is required by Bank. 3. 5. 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. Another account holder of the bank should properly introduce the new customer. After receiving utility bills a list is made on the form which is called Bills scroll form. 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. By opening an account at a bank a person becomes a „customer‟ of a bank. Each account shall be allotted a distinct number that is to be quoted in all Page 54 . The account holder should sign the account opening form in the presence of bank officer and the signature is duly verified. 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. Date of payment. as may be required and account may be opened. 1. Signature of the officer receiving the utility bills. 4. and Pakistan Telecommunication Corporation Limited by putting the stamp on the utility bills “Paid”. 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.

Nature of Business 8. are requirements of the application form. Address 5. Signature of the applicant PROCEDURE TO HONOUR A CHEQUE During my internship training in the Muslim Commercial Bank Limited. Address & Signatures 9. Title of Account 2. Minimum amount to open an account is required regarding the nature of account. 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: Page 55 . 6. the bank officer gives him an application form. I observed and found Cheques are received for the following purposes. Initial Amount of the Deposit 11. PROCEDURE TO OPEN AN ACCOUNT According to my practice in MCB. Telephone No. Basically following information is required to open an account with MCB 1. Special instruction regarding the account 10.correspondence with the bank relation to the account. All information. Currency of account 7. Occupation 4. which is necessary to be known by the bank. Full Name of Applicant 3. when a customer wants to open an account. Form also requires the essential documents to be attached by the customer. 6. Introducer‟s Name.

On stamp which is put for token their details are as follows: • Token number. 4) Whether Bearer has cancelled. • Time of giving token to client. • Signature of token giver. 2) Signature of Drawer. a) Cash Payment (on the face of cheque). When all above matters are satisfied then come to the Token register and check: 1) Token number. 4) Particulars. 6) Match the figure and wordily amount of cheque. b) Stamp for Token (on the back of cheque).1) Date. 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. 2) Cheque number. Page 56 . 3) Signature of Payee. Two stamps are put on cheque. 5) Whether Payee account duly is there. 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. If condition 4&5 exist then check the signatures of Drawer. 3) Amount of cheque.

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

he is provided with cheque book for withdrawals from account. Performa is filled by purchasing party along with cheque or cash payment.e. credit vouchers sent for clearing are entered on the sheet's credit side. Telephonic Transfer DD. i.On the same day. The cheque book also carries a requisition slip for the issuance of the new cheque book.Demand Draft PO. Cheques are sent to NIFT after taking them on calculator. A summary is prepared and sealed after noting the number of seal in summary. First of all. Usually only one cheque book is issued at a time.Payment Order For TT. twenty five.4% Commission and postage charges are also calculated. This slip is duly filled and singed by the customer. When a customer opens an account with the bank. the first cheque book is given to the customer only when all the required documents are checked. Following procedure is adopting for the issuance of cheque. person should also write his full name & address. When cheque is received it is first posted in computer section in order to check the balance of account. the account of beneficiary must be there in branch. Rs. 1% More than Rs. However. DD is also prepared and beneficiary can get payment.40000 @0.100000 @0. their total amount along with total number of instruments. 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. After posting the bank officer calculate tax if National Tax number is not there. fifty or hundred leaves. A cheque book contains ten. These are paid in cash or otherwise by cheque. however big concerns who need a Page 58 . 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. Along with the signature.

number of cheque books at a time. may ask the bank to stock as number of cheque books in their name and to point their name on these cheque books. MCB has performed well and has sustained growth. one for bank record and one for client. RUPEE TRAVELLER CHEQUES: RTCS When RTCs are to be issued payment is received in cash or by cheque. If client wants immediate payment of RTCs then he will bring RTCs with two signatures. RTCs are issued in consecutive number of face value of v Rs. one of the leading banks of Pakistan. Bank debits the client‟s account for excise duty of Rs. 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.per cheque and keeps the cheque book ready for the customer. Payment will be credited to account of paying party.03% is charged id National Tax number is nor available. one to RTC division. Once receiving party will pay the RTCs along with credit vouchers in their relevant account with Bank.1000 v Rs. The bank has completed more than 18 years. Payment is made.2. One is sent to Head office. The officer keeps and maintains the cheque book register Cheque book inventory and cheque books issued are recorded in this register. one copy of deal and ID card copy.50/. as on his advice. Page 59 .10000 v Rs. since its privatization and during this period.100000 Specimen signatures of buyer are taken and clearing slip is in four pages.50000 v Rs. work done by me Learning summary: I did my internship at MCB G.5000 v Rs. tax @0. RTCs can be endorsed to other party.T road Branch.

It was a great experience for me to work with such a well-known and reputed bank. 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 future plans. 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. 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. but after internship all doubts are vanished. they do not have the experience that can provide help to them in attaining the best possible job alternative. I have personally experienced the banking environment and concluded that it is very good and safe for females. bank timings etc. Internship provides opportunities to experiment and purse careers that match academic and personal interest. Six weeks internship program helped me to critically analyze the Page 60 . I am always interested to get a job in banking sector but there were some doubts in my mind about the banking environment.

development and integrity. which assures the shareholders of wealth maximization. Work done by me Strength: The strengths of MCB are as: Ø MCB is the first Pakistani privatized bank and because of its quality management. we conclude that MCB has a very prosperous present and future. Side by side of it I think that if bank would be able to cover and control on the above mentioned recommendations then it would be in such a situation that will really lead it towards the road of prosperity.banking sector as a whole and I can openly say that banking sector provides conducive environment for career growth. Therefore. innovation in products and services is performing well in financial market. SBP‟s prudential Page 61 . It is evident from this report and the financial statements of MCB that it is making progress by leaps and bounds. 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. The profits of MCB have grown considerably during the last few years and this trend is expected to continue into the future. marketing. ambitious and diligent condition for the bank. 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 . Ø Has established a good reputation in the banking market Ø Strict adherence with the banking procedures requirements.

Ø A behavior has been noted that bank tries to feel at ease with good looking. rich and educated people and the poor looking customers feel some bit strange in the environment of the bank. remittances and forex department through effective promotional and liberal policies. 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. Ø Therefore it should advertise extensively especially RTC and Master Cards. The bank should concentrate upon increasing its abilities on individual service basis. Ø In MCB there is lack of specialized skill because of job rotation policy of human resource department. Ø Can grab more market share for its RTCs. Page 62 . Ø Mismanagement of time is another big mistake in MCB branches. the bank official time of closing is 5:30pm but due mismanaging of time allocation and work the staff is normally on their seats till 7:00 or 8:00 clock. The bank employees should try to accommodate behaviorally all type of customers.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 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.

 http://www.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. Still banks have to wait to get permission of state bank. 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.pk/psc/cards/mcb_visa. Ø Employees unions have been allowed if not managed properly can affect performance.asp Page 63 . Ø The Competition has become severe by the entrants of so many banks.mcb. So to exist one will have to prove himself in its services through excellent management and will have to satisfy its shareholders. 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 Adoption of information technology will improve the customer services. The freezing of foreign currency accounts is a vital example of letting people not to trust on banks.com. 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. Ø More mobilization of accumulated deposit is possible through innovative financing to · Agro Based Sector · Leasing · Personalized Financing Threats Ø Change in government policies has affected the banking business. Otherwise he will be out the market.

Page 64 .

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. A big portion of the home remittance is sent by Pakistan working capital through Muslim Commercial Bank Limited. Staff turnover particularly of trained staff result in financial and other losses. The rate of profit should increase 1% or 2% than other banks and it would be profitable step for bank. The controlling body is responsible for the productive performance of the Bank. And I think this will shake the confidence and working habit of the employees.From the Quantum of the profit and its financial data it can be easily judged that after privatization. MUSLIM COMMERCIAL BANK is performing well. 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. Every year some of the employees should be sent for training to other countries and Page 65 . The amount spent by the bank on employment. The promotion policy should be adjusted. induction and training of outgoing officers constitutes to beat till another officer should ready prove this work. 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. As we know a big portion of this amount is wasted purchasing of luxuries. Alt the employees should have these courses according to their requirement. There is a criticism on the banking management that the salaries of the employees are decreasing in every succeeding year. The people motivated to save money by offering the deposit through various investment schemes. Most of the bank employees. The exodus of bank officer in the past has worsened the situation. which might not be a good sign for the bank from future prosperity point of view. Its deposits are growing day by day and so its profitability. In my opinion all the employees should have regular job experience all out-look towards banking.

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. qualified and energetic staff. Working environment. Recruitments should be strictly on merit basis and induction should be after proper and extensive training.employees from other branches should be brought here. Old and lazy staff should be replaced by young. Proper attention should be paid to upgrade customer services. Bank should adopt the global organizational banking structure to meet the international standards of banking sector Page 66 . The employee should be provided the opportunities to attend and participate in seminars and lectures on banking. equipment. The purpose should be to educate the employees with the advance studies in their field. Foreign branches should be opened in order to capture the international market and to earn international repute for the bank. 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. Some more reading material should be provided. furniture and staff dressing should be according to the modern banking style.

Annual Report2005 7.wikipedia. MCB Brochures Manuals 6. http://www.mcb. Annual Report2008 10.ccsenet. http://www.org/journal/index.REFERENCE: 1.pk/psc/online_services/pay_bills. http://en.mcb.asp\ 11.pk/psc/cards/mcb_visa.com.pk/psc/loans/easy_personal_loan.html 5.com.wikipedia. http://www.org/wiki/Economy_of_Pakistan 3.com. http://www.oppapers. http://www.mcb.org/wiki/Muslim_Commercial_Bank 4. http://www.php/ijbm/article/view/1179/1127 8.asp Page 67 .blurtit.asp 9.com/essays/Pakistans-Banking-Sector-Industry Analysis/181995 2.com/q501915. http://en.

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