MCB is one of the leading banks of Pakistan with a deposit base of about Rs. 280 billion and total assets of around Rs.300 billion. Incorporated in 1947, MCB soon earned the reputation of a solid and conservative financial institution managed by expatriate executives. In 1974, MCB was nationalized along with all other private sector banks following the Bank Nationalization Act 1947. The Bank has a customer base of approximately 4 million and a nationwide distribution network of 1,700 branches, including Islamic banking branches, and ATM’s. During the last fifteen years, the Bank has concentrated on growth through improving service quality, investment in technology and people, utilizing its extensive branch network, developing a large and stable deposit base.

MCB Bank Limited (Formerly Muslim Commercial Bank Limited) has a solid foundation of over 50 years in Pakistan, with a network of over 1700 branches. Eighteen years after privatization, MCB is now in a consolidation stage designed to lock in the gains made in recent years and prepare the groundwork for future growth. The bank has restructured its asset



portfolio and rationalized the cost structure in order to remain a low cost producer. MCB now focuses on three core businesses namely Corporate, Commercial and Consumer Banking. Corporate clientele includes public sector companies as well as large local and multinational concerns. MCB is also catering to the growing middle class by providing new asset and liability products. MCB looks with confidence at year 2005 and beyond, making strides towards fulfillment of its mission, "to become the preferred provider of quality financial services in the country with profitability and responsibility and to be the best place to work".

Awards of MCB

MCB has become the only bank to receive the “Euromoney ” award for the fourth time in the last five years for being the “Best Bank in Pakistan”.  Best Bank award 2008  Best Bank award 2006  Best Bank award 2005  Best Bank award 2004  Best Bank award 2003 MCB also won the  Best Domestic Bank in Pakistan awards 2000



In addition, MCB also has the distinction of winning the “Asia Money” awards for being "The Best Domestic Commercial Bank in Pakistan".  Best Domestic Commercial Bank award 2005  Best Domestic Commercial Bank award 2004

Mission: “To become the preferred provider of quality financial services in the country with profitability and responsibility and to be the best place to work.” Mission Statement: “We are a team of committed professionals, providing innovative and efficient financial solutions to create and nurture long-term relationships with our customers. In doing so, we ensure that our shareholders can invest with confidence in us.” Vision Statement: “To be the leading financial services provider, partnering with our customers for a more prosperous and secure future.”

Customer Focus:



Over the years MCB has developed strong relationships with its customers by understanding their needs and treating them with respect, dignity and importance. The driving force behind its commitment and services is its focus on customers, ensuring that it not only meets, but exceeds their expectations. Quest for Quality: MCB strives to achieve excellence by ensuring that every moment of our time is spent in adding value, making sure that we do things right, first time, and every time. With this quest for quality, MCB has always taken initiatives in bringing banking into a new arena; from cash to the convenience of plastic; from branch banking to internet banking and from face-to-face customer interaction to online accessibility. Employees Respect: MCB encourages diversity and treat each of our employees with fairness. MCB gives constructive feedback for their continuous development and seek suggestions from all employees for further improvement. The bank ensures that quality performance is acknowledged and rewarded and exercise utmost responsibility in decision-making with regards to our employees. Team Based Approach: MCB believes in achieving its Mission and Vision by working together as a combined group. MCB treats its employees as its internal customers and ensure that the requirements of internal customer focus are always met. Equipped with in-depth product knowledge, and recognizing the strengths in each individual, the bank strives for optimum-results from



our co-workers and bringing out peak performances by working towards common goals and objectives in today's dynamic banking environment. Good Corporate Citizenship: MCB seeks to continuously improve the quality of life in our communities. The bank realizes that it has a responsibility to the society in which it operates and it seeks ways of playing a positive role for the betterment of the community at large for a progressive environment, better living and a brighter future.

Commercial Banking

Deposit Accounts: Basic Banking Account:
A simple account to produce the habit of saving for beginners like students. The account can be opened with only Rs. 1000, no minimum balance required, no any monthly or annual charges applicable on this account, two deposits and two withdrawals can be made in a month. Also you can avail the facility of MCB ATM card and MCB smart card. Pak Rupee Current Account: MCB’s Pak Rupee Current Account offers you the convenience of unlimited withdrawals i.e. access to your funds whenever you want



without any notice. There is no limit on the number of transactions you make in a day plus you can avail finance facility up to 75% of the total deposit. In addition, you have access to a countrywide ATM network convenient cash accessibility 24 hours a day. The facility also provides you with unlimited daily transactions with a limit on maximum withdrawal amount through the ATM machines Pak Rupee Savings Account: MCB’s Pak Rupee Savings Account offers you attractive returns on your Pak Rupee investment with a minimum balance of Rs. 10,000. In addition, you have access to a countrywide ATM network convenient cash accessibility 24 hours a day. The facility also provides you with unlimited daily transactions with a limit on maximum withdrawal amount through the ATM machines. You can also use MCB Smart card and Locker Facility at economical charges. Pak Rupee Term Deposit: MCB Pak Rupee Term Deposit gives a higher rate of return. It gives you choice of 1 month, 3 months, 6 months, 1 year, 2 years, 3 years, 4 years and 5 year term deposits. Saving 365 The MCB Saving 365 calculates profits on a daily product basis and gives you the facility of unlimited withdrawals. Foreign Currency Savings Account: MCB’s Foreign Currency Savings Account offers you attractive returns on your Foreign Currency investment. You can invest in any of the four currencies i.e. US Dollar, UK Pound Sterling, Japanor Euro Your foreign currency account is exempted from Zakat and withholding tax.



Foreign Currency Current Account: MCB’s Foreign Currency Current Account offers you the convenience of unlimited withdrawals i.e. access to your funds whenever you want without any notice. There is no limit on the number of transactions you make in a day. MCB Foreign Currency Term Deposit: MCB Foreign Currency Term Deposit gives a higher rate of return. It gives the choice of 1 month, 3 months, 6 months, 1 year, 2 years, 3 years, 4 years and 5 year term deposits. Smart Dollar Account: The Dollar Khushali Account, a Dollar based account was introduced in 1993 at selected MCB Bank branches. Today, you can open a Smart Dollar Account at over 200 branches in Pakistan with a minimum amount of USD 10,000.

Business Account With MCB Business Account you can avail higher number of free transactions with higher balance. The account can be opened with Rs. 50,000. You can make free Deposits and Withdrawals from all nationwide branches.

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. So act today and get MCB Business Sarmaya and thus improve your business, avail lucrative opportunities and expand your business, with absolute satisfaction of cash flows. MCB Car4u: Life is like a chess board. You plan your career options. You analyze your business moves. But when you really want to improve your life, you make a power move. MCB CAR4U Auto Finance is the power move that assists you in more ways than you ever imagined. It is affordable, with lowest mark up 16%, flexible conditions, easy processing and above all, no hidden costs. MCB Pyara Ghar: Some destinations require a long wait. Like waiting for a home of your own. But with MCB Pyara Ghar it is now easy to step into your home and start living a real life. MCB Pyara Ghar is an ideal Home Finance from your own bank that lets you Purchase, Renovate or Construct your home the way you have always wanted. 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. Take that much-needed holiday. Buy a car. Refurnish your house. Purchase a new TV. Finance a better education for your children. MCB Master Card:



Since the beginning of time, people have tried to find more convenient ways to pay, from gold to paper money and checks. Today, money is moving away from distinct hard currencies and towards universal payment products that transcend national borders, time zones, and, with the Internet, even physical space. Plastic or "virtual" money, credit, debit, and electronic cash products, inevitably will replace cash and checks as the money of the future. MCB Rupee Traveler's Checks: MCB Rupee Traveler's Checks were first introduced in 1993 as safe cash for traveling and travel related purposes. The product has been extremely popular and is preferred over cash by customers while traveling and in all walks of life. MCB Rupee Traveler's Checks- The safest way to carry Cash.

Corporate Banking:
Cash Management Services: MCB’s network of over 1700 branches in Pakistan enables it to collect and disburse payments efficiently with its cash management services. This also enables it to offer you a choice of paper based or electronic fund transfer solutions including collection amounts, cross branch online transactions etc. Working Capital Loans: Based on the customer’s specific needs, the Corporate Bank offers a number of different working capital financing facilities including Running Finance, Cash Finance, Export Refinance, Pre-shipment and Post- shipment etc. Tailor- made solutions are developed keeping in view the unique requirements of your business.


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Term Loans: MCB offers Short to Medium Term Finance to meet capital expenditure and short term working capital requirements of our customers. The loans are structured on the basis of underlying project characteristics and cash flows of the business. Trade Finance Services: Under Corporate Banking MCB offers trade finance services that include an entire range of import and export activities including issuing Letters of Credit (L/Cs), purchasing export documents, providing guarantees and other support services.

Online Services:
MCB ATM Services With a solid foundation of over 50 years in Pakistan, with more than 750 automated branches, 269 online branches, over 222 MCB ATMs in 41 cities nationwide and a network of over 12 banks on the MNET ATM switch, MCB is positioned at the forefront of the banking industry in Pakistan. This success has been possible because of a never-ending drive to achieve higher levels of excellence, constantly striving to raise the level of performance.

MCB Mobile Banking: At the forefront of technological excellence, MCB proudly introduces MCB MOBILE BANKING. The convenience of accessing your account


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balance information and mini statements whenever you want or wherever you may need them, with comfort and peace of mind. MCB Call Center: Keeping up with banking services can be tedious but not with MCB Bank, where phone service is at your fingertips. Just dial our Call Centre from the comfort of your home or office or wherever you happen to be. It offers basic banking services for your convenience, eliminating the need for you to make unwanted trips to your branch. MCB Smart Card: MCB now brings you MCB SmartCard -a secure and convenient instrument of payment with unmatched functionalities. It provides 24hour direct access to your bank account. The convenience and flexibility of MCB SmartCard will help you live a smarter life. It not only helps you manage your expenses, but also eliminates undue interest on your day to day credit card transactions. Your balance is always within your reach and you spend accordingly. MCB Debit Card: Now MCB brings a secure, convenient and quick payment facility that enables you to do purchasing by using your existing MCB ATM / MCB Smart Card as a DEBIT CARD.  

Virtual Banking:
MCB Virtual Internet Banking offers you the convenience to manage and control your banking and finances – when you want to, where you want to. MCB’s Virtual Internet


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Banking facility is simple and secure. And it is free of cost. With MCB Virtual Internet Banking you can access any of the banking services, 24 hours a day, 7 days a week and throughout the year. MCB Virtual Internet Banking offers a wide range of online services which makes your banking accessible anytime and from anywhere.  Detailed Account Summary of all listed accounts.  Mini-statements of each of the listed accounts showing recent transaction history for that account(s).  Statement-by-Period of each of the listed accounts, based on the period specified.  Immediate or Scheduled Transfer of Funds between your own accounts, as well as to third-party accounts setup as beneficiaries, maintaining accounts with MCB.  Scheduling of ‘One-Time’ as well as ‘Recurring’ Funds Transfers.  Payment of utility bills for registered Utility Companies.  Immediate or Scheduled Bills Payment. Scheduling of ‘One-Time’ as well as ‘Recurring’ bill payments. Option for ‘Full’ or ‘Partial’ payment based on the payment conditions specified by a particular Utility Company.  Bulk Salary Transfer for Corporate Customers, to facilitate them in paying salary to the corporate employees, who maintain accounts with MCB.  Bulk Funds Transfer for Corporate Customers.  Check Book Request for any of your listed accounts.  Payment/Transfer Alerts for reminding, in advance, prior to the processing of specified payments and transfers.  Personal Alerts for reminding of pre-specified events and occasions.


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Islamic Banking:
Deposit Schemes : For customers who are looking for a deposit opportunity where they can purse their funds and reap halal returns on it, we offer the following products:  Al-Makhraj Saving Account  Al-Makhraj Ianat Account  Al-Makhraj Term Deposit  Fund Based Facilities  Ijarah Products MCB’s Islamic Ijarah, analogous to the English term 'leasing’, is based on the ‘Ijarah wa Iqtina’ concept which means the sale of the asset to the lessee after the Ijarah has matured. Under this scheme, MCB will be the owner of the asset, and the customer (lessee) will be given the asset to use for a certain period of time in return for monthly rental payments. 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, hence the term ‘Wa Iqtina’. Types of Ijarah: 1. Car Ijarah 2. Equipment Ijarah


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Organizational Hierarchy President
Senior executive vice president Executive vice president Senior Vice president Vice president Assistant Vice President Grade 1 Grade 11 Grade 111 Assistant Clerical Staff
1) Cashier 2) Technical Staff

Non-Clerical Staff
1) Messenger 2) Dispatch Rider

The Organizational chart within deptt. & in different offices. Head Office
Divisional head (SEVP)

Regional Office
Regional Head (EVP)

Zonal Office
Zonal Head (VP)

Branch Manager (VP, AVP)


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Board of Directors:
Mian Mohammad Mansha Mr. S. M. Muneer Mr. Tariq Rafi Mr. Shahzad Saleem Mr. Sarmad Amin Dr. Muhammad Yaqub Mian Raza Mansha Dato' Mohammed Hussein Chairman Vice Chairman Member Member Member Member Member Member

Mr. Aftab Ahmad Khan Member Mr. Abdul Farid Bin Alias Mian Umer Mansha Member Member

Mr. Muhammad Ali Zeb Member Mr. Atif Bajwa President / CEO

Audit Committee


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Mr. Tariq Rafi


Dr. Muhammad Yaqub Member Dato' Mohammed Hussein


Mr. Aftab Ahmad Khan Member Mr. Muhammad Ali Zeb Member Mr. Malik Abdul Waheed


Human Resources Committee Mian Mohammad Mansha Dr. Muhammad Yaqub Mian Raza Mansha Mr. Shahzad Saleemn Mr. Atif Bajwa

Chairman Member Member Member Member

Risk Management & Portfolio Review Committee
Mr. Shahzad Saleem Mr. Tariq Rafi Mr. Sarmad Amin Chairman Member Member


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Mian Raza Mansha Mian Umer Mansha

Member Member

Committee on Physical Planning, IT System & Contingency Arrangements
Mr. Sarmad Amin Mr. S. M. Muneer Mr. Tariq Rafi Mian Raza Mansha Mr. Abdul Farid Bin Alias Mr. Atif Bajwa Chairman Member Member Member Member Member

Business Strategy & Development Committee
Mian Mohammad Mansha Mr. S. M. Muneer Mr. Shahzad Saleem Mian Raza Mansha Chairman Member Member Member

Dr. Muhammad Yaqub Member Dato' Mohammad Hussein Mian Umer Mansha Mr. Atif Bajwa Member Member Member


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Chief Financial Officer
Mr.Salman Zafar Siddiqi

MCB has the following Entity Ratings from the Pakistan Credit Rating Agency Limited (PACRA): Short Term Long Term A1+ AA

Definitions by PACRA: “A1+” (A one plus) These ratings are applicable to senior unsecured creditors (depositors) of the bank. A plus (+) appended to a rating denotes relative status within major rating categories. “AA” (Double A) These ratings denote a very low expectation of credit risk emanating from a very strong capacity for timely payment of financial commitments.

4. 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. With the re-launch of auto finance and house finance


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products, the Bank pushed the products with full thrust. The Bank has also launched a running finance facility against mortgage of property. Technology continued to play an important role in improving and expanding product offerings. The Bank introduced more IT based products to cater to the changing lifestyles and needs of the customers. MCB Virtual-Internet Banking was launched with wide ranging banking solutions for the customers ranging from individual to corporate customers and it has become the most preferred Internet banking solution in the country. MCB also had the privilege of being the first Bank in Pakistan to launch the comprehensive bill payment facility through its alternate delivery channels which include Internet Banking, ATMs and MCB Call Centre, currently with six payment partners. Similarly, the Bank also took initiatives to increase the usage of debit facility. To provide timely and updated information, MCB has also provided a new look to its website which is user friendly and considerably easy to browse. The Islamic Banking initiative has been very successful in attracting new customer, both individuals and companies. Similarly, those relationships, which were confined only to current account facility, have grown into stronger business relationships. The branch network was expanded to Lahore and Multan during the last year and recently been extended to Hyderabad and Faisalabad. The Bank plans to further expand its Islamic Banking branch network to other metropolitan areas and also to introduce new sharia compliant banking solutions to a wider range of customers for satisfying their individual and business needs. Some wide-ranging new strategic initiatives were also taken up which will be important for the Bank in years to come. A private company has been formed in Hong Kong (fully owned subsidiary of MCB) in


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partnership with Standard Chartered Bank, handling trade transactions of select countries in the Asia-Pacific region. It is projected to earn US$ 1 million in its first year of operations. To increase its international presence, the Bank 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. Furthermore, feasibility is also being carried out for entering other international markets. MCB's operations continued to be streamlined with focus on rationalization of expenses, re-alignment of back-end processing to increase productivity, enhancement of customer service standards, process efficiency and controls. The Bank has taken the lead in introducing the innovative concept of centralizing Trade Services in the country by providing centralized foreign trade services to branches with a view to improve efficiency, expertise and reduce delivery cost. Management of Human Resources has been one of our core focus areas. MCB is committed towards attracting, retaining and motivating outstanding people. Challenge for MCB is to provide an environment in which employees can better realize their potential. The Bank introduced 'reward for performance' where high potential officers were identified and rewarded accordingly. In view of the competitive environment, the Bank is focusing on performance and introducing a more robust performance management system. MCB is also strongly committed to training its staff at all levels. The Bank will also be implementing the full suite of the latest version of SYMBOLS Version 8. MCB Bank will run SYMBOLS E-Finance modules to deliver personalized services to its customers over multiple delivery channels, while SYMBOLS Enterprise Operations Center will serve as its


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core banking transaction-processing engine. By implementing SYMBOLS, MCB Bank aims to raise the level of its customer service and its time to market in new product offerings for its three core banking businesses in Corporate, Commercial and Consumer Banking - retaining its market leadership as Pakistan's progressive Bank.


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The following activities have been done during the time period of internship. The activities given below are on the weekly basis. Mainly during the internship I worked in all the departments and learned the working and procedures that are necessary for the processes. First week: (06 July 2009 to 11 July 2009) • • • • • • • • Observed basic business process Observed movement of customers and Employees inside the Branch Learned basics of Account Opening Opened Accounts of GOVT employed persons Opened PLS saving Accounts Opened BBA accounts Opened Student account Worked as CSO(Customer Service Officer) because CSO was on leave and performed the following activities: o Attended phone calls o Attended customer inquiries o Received ATM forms o Received and entered daily DAK o Filled cheaque book requisition slips In first week I observed the basic business process. At the end of each day I totaled the electricity, water, telephone and check amounts. Mostly the total was correct. But sometimes when the total does not match with the sheet of the PRINTING I had to do it two or even three times. Process:


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Account opening is the basic procedure to create a relationship between a customer and a banker. When a customer opens his/her account it increases the business of the bank. The following steps are taken while a new customer enters in a bank for opening his/her account. These steps are; • When a customer wants to open an account the authorized officer gives him/her an account opening form. This form is known as “RELATIONSHIP CONTRACT FORM”. This form is filled out with the hands of the customers. • All the required fields that are mandatory for account opening should be filled compulsory. These are the fields like title name of the customer, occupation, address of the customer, phone no’s, correspondence address, e-mail address, etc. (a) requirements for opening an account for the

individual; In case of employed person • • • • • • • • • Copy of CNIC Salary slip A letter from employer Initial deposit of Rs.100 to 1000. Photo copy of utility bill Copy of CNIC A letter from Dist. Nazam Initial deposit of Rs.100 to 1000. Photo copy of utility bill.

In case of non employed person


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requirements for opening an account for the • • • • • • • Copy of CNIC Copy of CNIC of all the partners Request letter of account opening Company letter head Copy of registered certificate (if registered) Signature specimen duly attested Initial deposit may be from Rs.100 to 1000


In both cases there is some amount which is fixed for opening current and saving account that is; ►For opening current account Rs.10, 000 is required. ►For saving account Rs.5000 is the limit. • After all these requirements, the authorized officer attaches two signature specimen forms called SSC and one requisition form. On which the authorized officer put his/her signature and pasted signature admitted and verified and bank stamp on it. • • Along with this form the copy of CNIC and a Verisys form and form known as (KYC) is attached with it. At the last a separate file is maintained for each of the customer for bank’s record. Second week: (13 July 2009 to 18 July 2009) In the second week of my internship I learned about Cheaque book, Debit card and Alico products. Some details are as follows: • Learned About the Requisition request of Check for new Account


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• • • • • • • •

Learned about the issuance of new cheaque book. Filled the ATM request forms Learned how to issue the ATM cards Learned how to issue the ATM Pins Got basic information about Bank Assurance offered by Alico Learned about various offers of Alico Learned about the installments of assurance account Learned about the Terms and conditions of Alico.

(A) Process of getting the new Check Book. After opening an account, a letter of thanks is sent to the customers from the Circle Office after 2 or 3 days. After receiving that letter a customer can obtain his/her check book from the bank. But while customer is coming to the bank for receiving his/her check book this letter of thanks should be with him. These are the following steps that are used for gaining check book: • The customer brings the letter of thanks and give to the authorized person. The person fills the check book requisition slip for the customer and takes his signatures. Then the authorized person saves that slip in his record and fills another slip and fwd to Karachi via NIFT and customer is asked to come after 5 days. • After 5 days cheaque book is given to customer after taking his signature in a separate register But in case if ; (a) Customer is new than after taking letter of thanks check books would be hand over to him/her.


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(b) But in other case if customer is not new he is a regular customer than at the end of each check book a requisition slip is attached. So whenever a new check book would be needed the customer will put his/her signature on it and submit it to the authorized officer. (B) Process of getting an ATM/DEBIT card The following steps are taken while issuing an ATM/DEBIT card. When an ATM or Debit Cards issue, the following steps are needed: • • A copy of CNIC A minimum Rs.550 should be in respective account.

After filling up all the required documents for ATM card these documents are given to the authorized person who pasted a verification stamp on these documents and signing on it. And at the end, after 5 days the person is called again to hand over ATM card after taking his Signatures. (c) Process of getting an ATM/DEBIT card Pin When the customer is given ATM card he goes to another Person to get his/her secrete Pin code. The person take the signatures and give it to customer. Then Customer goes to CSO and activates his CARD. Alico Products: Alico offers various products for persons belonging to different age groups. The purpose is to provide the insurance side by side with savings. Some of them are given below:  Income Max  Current Life Account


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 Capital Sure  Flexi Life  Har Pal Mehfooz  Life Partner  Dream Weddindg  Retire Easy  Edu Care

Third week: (20 July 2009 to 25 July 2009) The main objective is to know about the different functions of cash department. Cash handling etc.. Although internees were not allowed in cash department because of sensitivity of matter, they provide me maximum possible knowledge, and I spent few time in cash.  Learned basic things about Cash department  Learned how to write Cash book  Signature verification  Cash Deposit slips Processing  Intercity Cheaque Processing  Arranged an event to give Customers awareness about Alico  Made a list of Valued customers  Made invitation letters for customers  Arranged necessary items for the Event  Filled Cash deposit slips  Filled some cheaques for aged persons


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 Filled cash deposit slips for online Deposit Process: • In Cash department customer after filling up the checks, bonds etc give it to the authorized office. The following information are required for further preceding of the check; ›Name of the customer ›Exact amount in words and figures ›Code of currency ›Date of the check ›and signature of the Customer • • • • • After providing all the above mandatory places check is hand over to the relevant person. The authorized person after receiving Checks or bonds puts bank stamp on it Checks the balance of the customer account. Verify the signatures of customer Then gives the cash to the customer.

Some important things that must keep in mind while filling up a check: a. The check should be enchased on that date which has to be written on the check b. No cutting/overwriting is allowed c. Signature should be matched with the ID card signature d. On the back of the check there should be the sign of the issuer


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I learned that how to accomplish different tasks like deposit, credit cards slips, and as well as bonds. I also learned that how original Checks are identified.

Some important things that must keep in mind while filling deposit slips: a. No cutting/overwriting is allowed in amount b. Amount should be same in words and figures c. For online deposit a copy of CNIC of depositor is necessary

Fourth Week: (27 July 2009 to 01 August 2009)
Fourth week I spent in Remittance Department and learned following things: • • • • • • • • • Learned basic operations of remittance department (PO, DD) Learned how to make entries and vouchers of incoming TT Made vouchers and entries for Incoming TT Learned the difference between DD and PO Observed other operations e.g. PO (Pay Order), DD (Demand Draft) Learned bank charges for PO, DD, TT & MT (Mail Transfer) Learned how to make entries and vouchers for Outgoing TT(Telegraphic Transfer) Made few Outgoing TT Learned & Made Inter-Branch Credit Advices against the checks received from outer city branches


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Learned how to make entries and vouchers for Outgoing TT(Telegraphic Transfer)

With these activities, also observed the other activities. The remittance officer also has to pass the entry that is entered by the cashier. The cashier enters the amount of check and the check number. Then the remittance officer enters the password and passes the entry. If the remittance officer is present on the seat then the operation manager has the authority to pass the entry. It is actually based on the amount of the transaction. When the amount of check exceeds a specific amount of Rs. 200000 the remittance officer has to pass that. And when the amount increases to Rs. 500000 the operation manager has to pass that entry. To open the customers account and to keep information of each of the customer separately so that when information is needed can be obtained easily. Learned basic operations of remittance department. Remittance department deals with the foreign remittances. First of all the remittances are received in the post. Normally two types of remittances come. One is credited to the accounts in our branch and the other is to be given in cash to the holder of the XPIN. One advice is normally made for all the advices that are to be credited to the accounts. Then the relevant advices are made. In the advices, originating branch is Dharampura Branch. PNSC Branch is written in the responding branch. The code for the originating branch is 0992 and for the responding branch code is 0069. Current date is written in the date field. The amount is written in the relevant fields in figures and in words. In the favoring, we write the name, account numbers, DD numbers and the amount in front of every beneficiary. Three copies are


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prepared for each advice. One advice goes to CSO for record. One goes for cashier and one goes to the clearing department for entry in the computer.

Fifth Week: (03 Aug 2009 to 08 Aug 2009)
• • • • • • • • • • • • • • Learned how to Issue the CDR Made vouchers and entries for CDR Made few CDR Learned how to manage CDR register Learned payment against CDR Balanced the CDR Head of GL for 31 July, 2009. Learned how to issue a PO Made Debit vouchers against the PO & DD charges Made Credit vouchers (contra) against the PO & DD charges Learned how to make DD and PO Made outgoing Clearing Made local clearing Made intercity clearing Made return clearing

The Fifth week is from 3rd July, 2009 to 8th July, 2009. The main objective of this is to know about the demand draft (DD), pay order (PO), and cash deposit receipt (CDR). To know about these entire why all these documents are used. And how much charges have to be paid for making all these. (a) Procedure of making Demand Draft (DD) and Pay Order (PO):


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Out of the city DD is used, DD is made through Check and Cash. Rs.50 is charged on cash slip and in case of check slip Rs.220 is charged. PO is made within a city. It is also in the form of Cash and Check. Rs.50 is charged on cash and Rs.220 is charged on check slip. • If a regular customer wants to make DD or PO then in this case he/she has to fill up a form. This form is known as “FUNDS TRANSFER FROM”; on making this DD/PO Rs.50 is charged for making this in case of account holder but for non account holder Rs.220 is charged. • In the form all the mandatory places are compulsory to fulfill. Like, currency of instrument, type of remittance, beneficiary details, particular of applicant, applicant signature etc. these are such requirements that must be fill up. • And at the last the authorized officer puts his/her signature on DD/PO form and three stamps are pasted on it; a. Transfer stamp b. Signature verified stamp c. Crossing check stamp ( in case if half payment is made through cash form, then a check is fill up for this and attached with the DD/PO form) • And at the last the operational manager puts supervision on this and all the records are transferred into computer for bank records. (b) Procedure of making of Cash Deposit Receipt (CDR): CDR is used locally. It is also in from of Cash AND Check. CDR has no charges. • A request form is filled by the hands of the customer for making CDR. This form is known as “CREDIT DEPOSIT FORM”.


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In this form some requirements are compulsory which has to be full up these are check no, the person name to whom it is going to be transferred, signature specimen, date etc.

• • •

After all these the verification stamp, check transfer stamp, and signature verified stamp is pasted on it. And at the final stage, all the transactions are recorded in a register for keeping banks records. I learned that how DD’s, CDR’s and PO’s are made. And how many charges are applied on it.

In this week I was a bit for remittances that are to be paid in cash, one advice is made for each of the remittance. The person comes in the bank with the XPIN. He gives it to us. With XPIN he gives the photocopy of the CNIC. One advice is made for him. Three copies are prepared for each advice. One advice goes to CSO for record. One goes for cashier and one goes to the clearing department for entry in the computer. Procedure for outgoing clearing I also made out going clearing, for outgoing clearing a list I made an excel sheet of all bills having depositing account number, amount and cheaque number then separated bills from slips then posted various stemps on bills and slips as follows  Clearing stamp of next date on front of bill  Accounts credited stamp on back of bill  Clearing stamp on front of deposit slip

Procedure for intercity Clearing


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I also made intercity clearing. For Intercity Clearing a stamp of intercity posted on face of bill, then amount, acct number and city name is entered in a separate register and deposit slip is attached in a specific file. And a stamp is posted on back of bill. A separate slip is filled for every city given by NIFT. In the specified envelope is used for every city given by NIFT with printed name of city.

Sixth week: (10 Aug 2009 to 15 Aug 2009)
(FINANCE,PUBIC DEALING, TDR) • • • • • • • • • • • Learned about dormant account. Learned about the activation of dormant account Learned about TDR Learned how to make TDR Learned basic types of financing Studied a Running Finance Case Learned about instant finance Learned about the different documents required for Credit Investigation Studied Financial statements of a client company Learned about the documents required for Running Finance Learned the Concepts of Demand and Cash Finance

To become familiar that how a customer account change into dormant account. Process: • An account is closed when a customer does not make any transaction in his/her account till 90 days.


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A letter is send to customer to inform him/her, and in case if bank does not receive any response from customer’s side then the account of customer becomes “DORMANT”, after that a customer cannot make any DR or Cr transaction in his/her account.

But in case if a customer draws a check in dormant account then it is returned back from the clearing department with a stamp of “dormant account”.

After that customer cannot make any type of transaction in his/her account.

Procedure for activation of a dormant account: a. The customer has to given a written request for activation of the account. b. Copy of CNIC. c. And a Debit transaction on the same day is made. After working in this area I learned that what things are compulsory to running an account and how we can avoid the dormant account.

TDR (Term deposit receipt):
Procedure: TDR may be issued for 2 months or 3 months but calculation is made on daily basis. ›A term deposit receipt has to be filled for TDR on which the following mandatory places have to be fulfilled: • • • Received form Amount Deposit period


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• •

Amount in figures And account number

›After the whole information is recorded into the computer system. ›And prepare TDR is given to the customer. Seventh Week: • • • • Made GL (general Ledger) analysis Analyze different heads of Assets, Liabilities, Income, and Expenses. Made Annual Expanses increase Analysis Filled ‘Credit Proposal’ cum Sanction Advice MCB Instant Financing, BBFS (Borrower Basic Fact Sheet) and Application for Finance for renewal of 3 cases of CF. • • • Studied credit proposals. Studied Credit Scoring and Risk Rating for the clients Studied classification of customers in the categories  Substandard  Doubtful  Loss In the last week of my Internship Manager offered me to learn something of managerial level which I accepted happily. So manager gave me data and asked to analyze the difference of expenses of July 2008 and July 2009 because there was a major increase in Expanse account. So I analyze different sub account and separate 6 accounts showing major increase, I also separated 6 accounts which were showing major decrease.

Online transactions and Lockers
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Objective: The objective is to learn about the money grams how they make? And to know about the lockers and as well as to get knowledge that how online transactions are done. (a)ONLINE TRANSACTIONS Procedure: In on line transaction the process is so simple in this the client receives a request form from the customer for online transactions. In such case customer presence is not compulsory. In this the following requirements are necessary to keep in mind. These are:  Sender name,  Customer account number,  Bank and branch name,  Check no,  Beneficiary branch no,  Total deposit and date. An online check is received form customer along with the print out of a voucher is attached with the check. And three stamps are pasted on it, these are;  Clearing Stamp  Intercity stamp  Transfer Stamp  And then in the last entry of an online check is recorded in the register for maintaining bank records. (b) LOCKERS Procedure:


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●whenever a new customer wants to operate locker he/she signs on a SSC card. And a separate register is maintained for this purpose. ●and after that whenever customer wants to operate the locker than the authorized person takes the customer signature on the maintained register. And these signatures are matched with the SSC card signatures. ●only relevant customer is allowed to operate. Learning: After working in this area I learned what money gram is and why it is used for? And as well as I also learned about the online transactions and the procedure used for lockers.


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Summary and recommendations Overall summary
In a nut shell it can be concluded that the overall performance of the bank is quite satisfactory. MCB's total assets, investments, deposits and equity has increased but profitability has decreased by a soaring percentage of 58.23%. The reasons which I have traced out of my analysis and studies are as follows; • • • Increased financial costs of funds for which expected investment revenues did not open up. Return on lending has been reduces Bank has increased its classified advances by 35% to fulfill the requirements of Prudential Regulations. The fresh increase is mainly 51% in the other assets especially mentioned

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classification. According to the prudential regulations requirements, accrued markup cannot be credited to income but to suspense A/C. • During the year 2008, the economy of the country remained in sluggish. In spite of various policy measure initiated by the government for confidence building of the domestic and foreign investors and steps taken such as: o Creation of small and medium entries development authority (SMEDA). o Financing under prime minister's self employment scheme. o Launching of Mera Ghar scheme etc. o For revival of economy, the expected investment environment could not be created and economy did not pick up. • The large number of non-commercial banking institutions (DFI's and NBFI's) also competed for limited resources and investment avenues- thus further narrowing the spread of banking industry. • Although, economic sanctions imposed as a result of nuclear blast and the country's level of foreign debt and directly impending economic growth, but the debt rescheduling at the Paris Club and large financial commitments by the multilateral agencies will improve country's external position and provide a sound footing for medium term planning. In this improved and stable economic environment, the bank will get opportunities and by making sincere efforts can increase its profitability and equity. Previous year is expected to pose a tough market environment. Shortage of rains and electricity can seriously impact overall GDP growth. The tight monetary policy is impacting the country's exports


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with a ripple effect on the manufacturing sector. The documentation drive, which is good for the country over a long period of time, is being expectantly viewed with concern by certain segments. The combined impact of these factors may cause a slowdown of economic activity in certain pockets of the economy. On the positive side, the resolution of issues in political and pragmatic handling of the documentation deive by the government and continuous efforts to normalize international relations should bring positive results. MCB is and will positioned and flexible enough to operate effectively in the changing scenario. We will continue to broaden our customer base, harnessing the growing strength of the MCB brand and expand the platform to provide value based propositions to our customers.

Specific requirements for the organization 1. Banking today has entered into a new era of computer technology. With introduction to intern on line banking, the distance between branches has reduced in such a way that a customer maintains his account thousands of kilometers away. Branches avail full facilities from other branches. This facility is very common in foreign banks. My suggestion is that like many other sectors of banking MCB should also take a lead in this


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sector. 2. As discussed above, this is an age of computer technology and the banks having skilled working (in computer technology) will certainly be able to attain a faster growth rate. My suggestion is that MCB should stress upon its employees to learn computer technology and following incentives should be given to them for this purpose. 3. Special training programs at staff colleges or computer training institutions should be arranged. 4. Interest free loans to employees for purchase of personal computer may be extended. 5. Special allowances for computer training will also help in achieving desired goals. 6. It is a fact which cannot be denied at any stage that both ladies and gentlemen are facing great problems which they deposit utility bills no proper counter is available. People have to stand outside the bank peeping in the window. The collector sitting inside the bank does not care anything and doing the job at his will/desire. This must be improved providing adequate facilities to customers. 7. Loan advances to bank employees are free from interest that is why huge amount is taken as loan. This is not good as they are availing other benefits from bank like bounces etc. Restriction must be imposed up to specific limit. 8. After privatization is seen that attitude and mal-treatment of staff towards people has considerably changed ethic has promoted the business a lot, further improvements also depends upon more good behavior. 9. Now a days a large number of books / documents / registers are


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being prepared on computerized system. It saves time. All other books may be computerized if possible to avoid error and mistakes. 10. New recruitment should be made on merit basis so that efficient, honest, hardworking, reliable and dependable persons may be at hand to run the bank easily on sound profit. 11. Bank should make a plan to gear up its recovery efforts on war footings and re-organize the recovery function on global basis. 12. Bank should tighten up a control on expenditure. At the end I wish for a rapid and successful growth and prosperity of MCB bank limited which is already known as a progressive bank.


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Specific recommendations for IBIT to improve its curricula and methods of teaching to MBIT students
As the students of MBIT I learned a lot from respected teachers who always found cooperative, helpful, and kind the know which I gained from them is treasure for my whole life belongingness and affiliation with teachers and the department that is why when I rewind the last two and a half year. I was unable to find out any weakness in any of them. Following recommendations are only places for the improvement and betterment. These are only the step which I think should be taken to achievement.

Degree of business education need recognition there should be effective advertising for awareness of people. Faculty of MBIT department is not sufficient to satisfy the educational need of students. Department lack experienced, skilled and professional permanent faculty so new teachers should be appointed. Case study should be major part of the studies because it creates more confidence in the students. So they could be able to adjust in multicultural organization. It courses teachers only instruct it thorough books or slides while practive in terms of concrete work in labs is lacking. That is why the students of IBIT remain always confused what he knows in it in real sense. The market demands us much in the field which we normally failed to provide them. Favoritism of teachers towards some specific students not only give that student credit through unfair means but also upset and


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dampen the spirits of others. The students who spend more and more time in the office of teachers get good grades more easily. So there should be proper check and balanced on this issue.

At the end MBIT burden should be reduced. Stress should be given on practical and field work instead of bookish knowledge. The specialization must also be offered in more areas like HRM.


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Specific recommendations for institute for the next internship in this organization
Department should provide proper guide line to the students during learning about their practical application in the field of business so that students becomes familiar with business environment. Our department must have developed close relations with reputed organizations adequate help for management of internship can provided to the students. The department should try to promote IBIT as a prestigious institute for clearing and pay attention toward its promotion and advertisement in business sector. The department should maintain a record of all its old students working in various fields and present them as a source of motivation inspiration for the present students in the department. 1. Practical field is quite different from theoretical knowledge. So an internee should adopt himself / herself to know situation. He / she should be able to get firsthand knowledge. 2. Have the quality of confidence. 3. Have a good communication. 4. Should be able to judge the situation. 5. Should have effort to doing best. 6. Have flexibility in opinion making. 7. It is golden rule for relaxation, satisfaction and success.


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MCB bank limited is an attractive and suitable corporation for the internees as it provides excellent learning opportunities to the students. Its culture is so inspiring and working structure is so impressing that it motivates to work. All staff members are very cooperative and helpful in providing guidance during internship. It is good place of learning for future job.


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REFERENCES MCB Brochures Manuals


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