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INTERNSHIP REPORT

MUSLIM COMMERCIAL
BANK
SUBMITTED TO
Honorable
Sir. Adnan Rashid
Lecturer, Unierst! O" Sar#odha
$Sub Ca%&us Mian'ali(
SUBMITTED BY
)ain Mehdi
ROLL*+,
Student I-$MCO./0ME1+,(
M.COM $.INANCE(
SESSION $01/0201/+(
E%ail3)ain4aura5#%ail.co%
Unierst! O" Sar#odha
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$Sub Ca%&us Mian'ali(
Table of Content
Sr.
No.
Details. Page. No.
1 Title Page --
2 Scanned Copy of Internship Certificate 3
3 Preface 4
4 Dedication
!c"no#ledge$ent %
% &'ec(ti)e S($$ary *
* Introd(ction of +an"ing ,
, I$portance of the +an"ing -
- .)er /ie# of the .rgani0ation -
-- a. Brief History 11
-- b.Board of Directors 12
-- c. Product line 13
-- d. Busniess Volume 14
-- e. product and services 1
-- f. Compatotrs 22
-- g. Vision & Mission Statments 23
11 Depart$ent 2ierarchy 2
11 Introd(ction of all Depart$ents 2%
12 Plan .f 3y Internship Progra$ 3,
13 4inancial !nalysis 4%
14 5atio !nalysis 2
1 S#ot !nalysis *
1% 5eference and So(rce (sed ,2
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1* 6losry .f Ter$s ,3
Scanned Copy of Internship Certificate
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PREFACE
+eing a#are of the i$portance of practical training7 the
8ni)ersty .f Sargodha s(b ca$p(s 3ian#ali7 re9(ires
e)ery 3.C.3 st(dent to go thro(gh training for
practical p(rpose as trainee.
The internship progra$ is to broaden the )ision of
practical e'periences #ith theoretical "no#ledge as it
increases one:s capabilities to handle proble$s at )ario(s
stages and the ability of decision.
I tried $y best to collect the )al(able infor$ation and its
rele)ant facts.
This report is the res(lt of $y internship #ith 3(sli$
Co$$ercial +an" ;3C+<


Zain Mehdi
3.C.3 ;4IN!NC&<


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Dedication
3y report is dedicated to $y parents7 teachers and $y
c(te friends #ho are al#ays #ith $e in &)ery 2ardships
of life and has #aited for $e to be here at 4inal stage.
3ay= !llah 6i)e the$ >ong >ife ;!3&&N<
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!ll the praise for !l$ighty !llah7 #ho enabled $e7 to
carry a s(ccessf(l effort7 to prepare a report on 3(sli$
Co$$ercial +an";3C+<in the best possible #ay.
It:s also a great honor for $e to present this effort to
honorable Professor !dnan 5ashid7 >ect(rer 8ni)ersty of
Sargodha s(b ca$p(s 3ian#ali.
Specially than"s to Sir. Prof.3(ha$$ad 3ansoor +aig
#ho ga)e $e s(bstantial s(pport in co$piling $y #or".
3ay this effort pro)e to be beneficial for all7 #ho go
tho(gh it and hope that it #ill $eet the e'a$iner:s
appro)al


Zain Mehdi
3.C.3 ;4IN!NC&<
Universty of sargodha (Sub campus ian!a"i#
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E$ecutive Summary
&'e ban(ing structure in Pa(istan comprises of t'e follo)ing types* State Ban( of
Pa(istan* Commercial Ban( of Pa(istan+ ,-c'ange Ban(s* Saving ban(s*
Cooperative ban(s* speciali.ed credit institutions. &'e state ban( of Pa(istan is
t'e Central ban( of t'e country and )as establis'ed on /uly 01* 11"2. &'e
net)or( of ban( branc'es no) covers a very large segment of national economy.
&'e State Ban( of Pa(istan issues t'e s'ares of t'ese periodically. Ban(
employees and ot'er common people can also purc'ase t'ese s'ares and earn
profit. 3n 11#$* MCB transferred its registered office to 4arac'i* )'ere t'e Head
5ffice is presently located. 3n 6pril 1111* MCB became Pa(istan s first
privati.ed ban(.
My duration of interns'ip at MCB 74'us'ab Branc'8 )as stated from 1.0$.01"
and ended on 0#. 02. 01".
3t )as an 'onor to learn precious s(ills from 'ig'ly motivated and professional
individuals from different departments of t'e company . "# Days time )as even
not enoug' to (no) everyt'ing about suc' large organi.ation but mangers )as
co 9operated me in suc' a )ay t'at it )as so easy to understand )'at t'is
organi.ation is all about.
During my interns'ip 3 )or(ed in remittances* advances foreign e-c'ange and t'e
customer service office department and 3 successfully complete all t'e tas(s t'at
)ere assign to me.
During t'e course of interns'ip 3 learned about different function performed in t'e
ban( and 3 )or( at all t'e department of t'e ban( 3 learned 'o) to maintained t'e
record and t'e document of t'e ban( and all t'e activity.
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INTRODUCTION TO BANKING
&'ere are many definitions of t'e )ord :Ban(; even t'e standard encyclopedia
and la) boo(s find it difficult to state e-actly )'at a Ban( is.
&'ere 'ave been many attempts by different )riters to e-plain t'e e-act
significance of t'e term :Ban(;. Here some of t'e definitions are <uoted as
follo)s.
According to the Banking Companies Ordinance
1962
Section 5 (b) defines
%&an'er means a person transacting the business of accepting( for the
purpose of "ending or investment( of deposits from the pub"ic( and
!ithdra!a" by che)ues( drafts( order of other!ise( and inc"ude any post
office saving ban's*
According to Crother
*&an' is a dea"er of debt( his o!n and of other peop"e+*
According to !i"bert
%, ban' is a dea"er in capita" or dea"er in money+ He is an intermediary
party bet!een the borro!ers and "enders+*
According to Sam#"e"son
%-ommercia" ban's provide certain services for customers and in return
receive payments from them+*
According to $o"de
%The modern ban'er is primari"y a dea"er in credit+*
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IMPORTANCE OF BANKING
=e can ta(e ban( >ust li(e a 'eart in t'e economic structure and
capital provided by it is li(e blood in it
Ban(s play very important role in t'e economic life of a nation.
&'e gro)t' of t'e economy is dependent upon t'e soundness of
its ban(ing system. 6lt'oug' ban(s do not create ne) )ealt' but
borro)* e-c'ange and consume. &'ese ma(e generation of
)ealt'. 3n t'is )ay t'ey become most effective partners in t'e development of
t'at country.
&o encourage t'e 'abit of saving and to mobili.e t'ese savings is its basic
purpose. Ban(s deposit surplus from t'e public and t'en advances t'ese surpluses
in t'e form of loans to t'e industrialists* agriculturists* businessmen and
unemployed people under different sc'emes so t'at t'ey set up t'eir o)n
business. &'us ban(s 'elp in capital formation.
3f t'ere are no ban(s* t'en t'ere )ould be concentration of )ealt' in fe) 'ands
and great portion of )ealt' of a country )ould be idle. 3n t'e fe)er developing
countries rate of saving is very lo) and due to t'is* rate of investment and rate of
gro)t' is also very lo). =e can ta(e ban( >ust li(e a 'eart in t'e economic
structure and capital provided by it is li(e blood in it. 6s long as t'e blood is in
circulation* t'e organs )ill remain sound and 'ealt'y. 3f t'e blood is not provided
is not provided to any organ t'en t'e organ )ould become useless. So if t'e
finance is not provided to agriculture sector or to industrial sector* it )ill be
destroyed.
?oan facility provided by ban( )or(s as an incentive to t'e producer to increase
production. Ban(s provide transfer of payment facility* )'ic' is c'eaper* <uic(er
and safe. Many difficulties in t'e international payment 'ave been overcome and
volume of transactions 'as been increased. &'ese facilities are very muc' 'elpful
for t'e development of trade and commerce.
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BANKING IN PAKISTAN
Ban(ing in Pa(istan first formally started in Pa(istan during t'e period of Britis'
colonialism in t'e Sout' 6sia 6fter independence from Britis' @a> in 11"%* and
t'e emergence of Pa(istan as a country in t'e globe* t'e scope of ban(ing in
Pa(istan 'as been increasing and e-panding continuously. Pa(istanAs oldest ban(
is t'e State Ban( of Pa(istan* )'ic' is also t'e central ban( of t'e nation. Before
independence on 6ugust 1"* 11"%* t'e @eserve Ban( of 3ndia )as t'e central ban(
of )'at is no) Pa(istan. 6fter independence* Mu'ammad 6li /inna' too( actions
to establis' a central ban( in Pa(istan )'ic' resulted in t'e ne) founding of t'e
State ban( of Pa(istan* )it' its 'ead<uarters to be based in 4arac'i.
2IST.5? .4 T2& 3C+ +!N@ >I3IT&D
2istory
Muslim Commercial Ban( ?td. Bnfolds # yearsC gro)t'. MCB is not an
overnig't success story. &'e ban( started corporate life in Calcutta on /uly 1*
11"%. 6fter t'e partition of t'e 3ndoDPa( Subcontinent* t'e ban( moved to D'a(a
from )'ere it commenced business in 6ugust 11"2. 3n 11#$* t'e Ban(
transferred it @egistered office to 4arac'i* )'ere t'e Head 5ffice is presently
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located. &'us* t'e ban( in'erits a #Dyears legacy of trust in its customers and t'e
citi.ens of Pa(istan.
N!TI.N!>IA!TI.N
3n /anuary 11%"* t'e government of Pa(istan nationali.ed MCB follo)ing t'e
ban(s 6ct 11"%+ Premier ban( ?imited merged )it' MCB.
PRIVATIZATION
6 )ave of economic reforms s)ept Pa(istan in t'e late 1110* introducing t'e need
for privati.ation of state o)ned ban(s companies. 3n 6pril 1111* MCB became
Pa(istanCs first privati.ed ban(. &'e government of Pa(istan transferred t'e
management of t'e Ban( to Eational Froup* a group of leading industrialists of
t'e country by selling $G s'ares of t'e ban(. 3n term of agreement bet)een t'e
government of Pa(istan and t'e Eational group* t'e Froup* ma(ing t'eir 'olding
#0G 'as purc'ased additional "G s'ares.

38S>I3 C.33&5CI!> +!N@ T.D!?
MCB today* a represents a ban( t'at 'as gro)n )it' time* e-perience and
Pa(istan. 6 ma>or financial institution* in scope and si.e* it symboli.es a fully
gro)ing tree evergreen* strong* and firmly rooted
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?&!5 2111 C.3P>I!NC&
MCBCs strengt' lies in providing a tec'nological base at t'e gross root level of t'e
society )it' a c'allenge to educate and assimilate suc' systems across vast
cultural and economic bac(grounds&'e ban( 'as a customer base of
appro-imately " million and a nation)ide distribution net)or( of 1*110 branc'es
including 3slamic ban(ing branc'es 7December !1* 0118 )it'in Pa(istan and
eig't branc'es outside t'e country 7December !1* 011 including t'e 4arac'i
,-port Processing Hone Branc'8* and over $#0 6&Ms in 110 cities* in a mar(et
)it' a population of over 110 million.MCB continuously innovates ne) products
and services t'at 'arness tec'nology for t'e customerCs benefits..
BOARD OF DIRECTORS
&'e board of directors 'as t'e aut'ority in guiding Ban( affairs and in ma(ing
general policies. Some directors are t'e personnel of t'e MCB and ot'ers are
successful businessperson and e-ecutives of ot'er ma>or organi.ation.
1. 3ian 3(ha$$ad 3ansha Chair$an
2. 3r. S. 3. 3(neer /ice Chair$an
DI5&CT.5S
Nine Directors areB
1 3r. Tari9 5afi
2 Shah0ad Salee$
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3 3r. 5a0a 3ansha
4 3r. Sar$ed !$in
3ian 8$er 3ansha
% 3r. 3(shta9 !h$ed 3ali"
* !h$ad !l$an !sla$
, 3(ha$$ad !li Aeb
- I$ran 3a9bool
Product .ine
MCB ban( of Pa(istan deals in all t'e sc'emes and t'e services of a ban( in a
current scenario t'ere are many sets of financial infrastructure )it' )'ic' t'e
MCB ban( is leading in providing t'e services to its customers
Cons($er ban"ing
&'e consumer portfolio* comprising t'e debit card* credit cards* auto loans*
personal loans and mortgages )ill be establis'ed p'ase by p'ase. Ho)ever* )e
are confident t'at our strengt's* toget'er )it' our largest net)or( of online
branc'es* a superior tec'nology platform* a big customer base and t'e Consumer
Personal Ban(ing Froup 7CPBF8* )ill ta(e t'e Ban(Cs profitability to ne)
'eig'ts.
Co$$ercial ban"ing
&'e MCB is also doing t'e commercial ban(ing and itCs leading in t'is
department
MCB offers retail product to its consumers. &'e MCB main focus to introduce t'e
various financing and investing products to its valuable clients* and contributes
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t'e steady gro)t' to t'e financial industry. &'e commercial and t'e retail ban(ing
offers t'e verity of asset and liability 9based.
Business volume
Three year b(siness )ol($e of 3C+ +an" >i$ited
/etai"s 0122 0120 0123
Total !ssets %3233223 770,282,
541
821,278,
304
Deposits 4-11,,*11 544,988,
091
632,309,
094
!d)ances-net 22,112- 239,788,
511
248,521,
792
In)est$ents-
net
31%%1%13 405,601,
313
453,808,
345
Shareholder:s
&9(ity
,3%23% 9,198,60
1
10,118,4
61
Profit before
Ta'ation
314,31*- 32,476,4
87
32,932,0
70
Profit after
Ta'ation
1-424-1% 21,235,2
35
21,950,1
41
&arning per
Share ;5s.<
23.23 23.00 21.62
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Product and Services:

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Cash Pl(s
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3C+ loc"ers
b(siness sar$aya
easy bill pay
3C+ car 4(
Payara ghar
3C+ )irt(al;internet ban"ing<
3C+ cash card
3C+ tra)eller che9(es
s$art card
instant financing
re$it e'press
3C+ $obile ban"ing
3C+ call center
"hs(hali bachat acco(nt
3C+ !T3
3N&T
.nline
C(rrent life acco(nt
Sa)ing acco(nt
3C+ salary cl(b
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Sa)ing $a'i$i
Cash pl(s
MCBCs net)or( of 100 branc'es in Pa(istan enables us to collect and disburse
payments efficiently )it' our cas' management services .t'is also enables us to
offer you a c'oice of paper based or electronics fund transfer solutions including
collection amounts* cross branc' online transactions etc.
3C+ !T3 24 ho(rs cash
=it' an ever gro)ing numbers of 6&Ms operating across t'e nation *t'e mcb
6&M net)or( is t'e largest and most advanced od its (ind in t'e country *and is
part of MCB*s continuing efforts to provide )it' convenience t'at suits your
re<uirements most. 6nd no) t'e MCB 6&M 'as gone global .MCB*s affiliation
)it' master card international brings about added facilities for t'e MCB travels
abroad )it' t'e cirrus and maestro net)or(s
3 net
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MCBCs revolutionary mDnet s)itc' enables customers to access t'eir MCB
account from any member ban(s 6&M mac'ine
.nline
=it' a solid foundation of over #0 years in Pa(istan* )it' more t'an %#0
automated net)or( of over 1$ ban(s on t'e ME,& 6&M s)itc'* MCB is
positioned at t'e forefront branc'es* $1 online branc'es* over 110 MCB 6&MCs
in !" cities nation)ide and a of t'e ban(ing industry in Pa(istan .t'is success 'as
been possible because of never 9ending drive to ac'ieve 'ig'er levels of
e-cellence* constantly striving to raise t'e level of performance.
3C+ $obile ban"ing
6t t'e fore front of tec'nological e-cellence* MCB 'as proudly introduced MCB
mobile ban(ing .MCB M5B3?, ban(ing provides t'e convenience of accessing
account balance information and mini statements )'enever t'e customer is
available.
MCB mobile ban(ing services is available to all MCB 6&M card'olders*" 'oursD
!$# days .t'ey >ust 'ave to call MCB 'elp line on7018 111D000D%%% or any MCB
online branc' for assistance.
MCB mobile ban(ing gives customer easy and <uic( access to t'eir account 7s8at
any time including 'olidays .)it' MCB mobile ban(ing customer can
C'ec( your balance
Vie) t'e last " transaction of your MCB accountMCB mobile ban(ing is free
service for MCB account 'olders )'o 'ave 6&M card .all t'ey 'ave to pay for is
t'e cost of an sms message if c'arged by t'e services provider
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3C+ r(pee tra)eler7 s che9(e
MCB rupee travelerCs c'e<ues )ere first introduced in 111! as safe cas' for
traveling and travel related purposes .t'e product 'as been e-tremely popular and
is preferred over cas' by customers )'ile traveling and in all )al(s of life .MCB
rupee travellers c'e<uesD t'e safest )ay to vary cas' t'e most )idely accepted
)ay to pay cas' for travel related purposes .@&C is a safe and secure )ay to ma(e
payments nation)ide. MCB ban( 'as been at t'e forefront of providing its
customers )it' ne) and innovative product and financial instruments t'at are
safe* secure and profitable.
3C+ C!S2 C!5D
&'e )ide spread acceptability and fre<uent use of MCB 6&M cards 'as prompted
t'e ban( to add more value to t'e cards )'ic' cater to customers
evolving cas' needs enabling t'em to go a'ead )it' ease and convenience .t'is
reinforce MCB commitment to provide to its customers safe and secured mode of
cas' substitute.
MCB cas' card is useful means of cas' for MCB customers and nonDcustomers
ali(eI
&ravelers
Businessman
Feneral public
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Payara ghar
MCB offers t'ree 'ome financing options for Payara g'ar .MCB payra g'ar
provides fle-ible and competitive 'ome financing facility )it' option of 'ome
purc'ase* construction and renovation. =it' MCB sc'emes customers can obtain
t'e financing to purc'ase a 'ouse Japartment *construct o)n 'ouse or renovate
e-isting 'ouse immediate .not'ing could be more convenient t'an o)ning a 'ouse
and paying easy installments t'at ta(es a step closer to becoming t'e o)ner a
'ouse and paying easy installment t'at ta(es a step closer to becoming t'e o)ner
of t'eir 'ouse .it is better t'an paying a mont'ly 'ouse rent )'ic' ta(es no)'ere
ot'er t'an increasing your e-penses .Payara g'ar is definitely t'e most feasible
and direct route to a dream 'ouse .
3C+ car 4 (
Car financing and leasing at competitive rates )it' fle-ible option. Car "u
finances bot' semiDcommercial and noncommercial ve'icles for personal and
business use.
+(siness sar$ayaB
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MCB business sarmaya is t'e best running finances facility against residential
property )'ic' empo)ers to manage business dealings better.so customers can
get MCB business sarmaya and t'us improve t'eir business *avail lucrative
opportunities and e-pand t'eir business *)it' absolute satisfaction of cas' flo)s.
@h(shali bachat acco(ntB
4'su'ali bac'at account is one of t'e most popular deposits accounts offered by
MCB .3tCs a special type of account )'ic' provides t'e account 'older additional
facilities for payment of utility and HBKC.

Co$petitors
&'e ban(ing sector in Pa(istan ma(ing very fast gro)t' and t'ere is many close
competitor of MCB ban( of Pa(istan.
Top -ompetitors4
8nited +an" >td.
NI+ +an" >td.
2+> +an" >td.
!+> +an" >td.
Soneri +an" >td.
+an" Isla$i
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+an" !l-4alah >td.
4aysal +an" >td.
Standard Charted +an"
3ee0an +an" >td.
@!S+ +an" >td.
+an" of P(nCab
/ision State$ent
To be the leading financial ser)ices pro)ider7 partnering #ith o(r c(sto$ers
for a $ore prospero(s and sec(re f(t(re.
3ission State$ent
De are a tea$ of co$$itted professionals7 pro)iding inno)ati)e and efficient
financial sol(tions to create and n(rt(re long-ter$ relationships #ith o(r
c(sto$ers. In doing so7 #e ens(re that o(r shareholders can in)est #ith
confidence in (s.
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.(r Core /al(es
C8ST.3&5 4.C8S
=e treat eac' of our customer e<uality & as t'e most important person )'ile )e
interact )it' 'imJ'er. =e must ensure t'at )e do everyt'ing to meet and e-ceed
t'e customers e-pectations )it' perfect to times* accuracy & <uality services.
&3P>.?&& 5&SP&CT E DI6NIT?
=e treat eac' of our employees )it' fairness* )'ic' includes giving constructive
feedbac( for t'eir development. =e celebrate diversity and see( suggestions from
all employees for improvement. =e ensure t'at responsibility & fairness in all our
decisionDma(ing.
T&!3 +!S&D !PP5.!C2
=e )or( to)ards ac'ievement of our vision & mission as a combines group. =e
encourage inter & intraDdepartmental communications. =e treat our colleagues as
our internal customers & ensure t'at t'e re<uirements of internal customer focus
are al)ays met.
F8&ST 4.5 F8!>IT?
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=e ensure t'at eac' moment of our time is spent on value adding activity. =e
al)ays see( )ays for e-ceeding e-pectations of customers & colleagues. =e also
ensure t'at )e do t'ings rig't* first time every time.
6..D C.5P.5!T& CITIA&NS2IP
=e ensure t'at )e contribute our due s'are to t'e Fovt. )e reali.e t'at )e 'ave a
responsibility to t'e society in )'ic' )e operate & )e see( )ays of playing a
positive role for t'e betterment of t'e community at large.
MCB Department hierarchy
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President
Senior e$ecutive
president
E$ecutive vice
president
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Number of employee
MCB 'as 1"1# number of employees
Ma! off"e
1I registered office+ MCB building* fD$JgD$ /inna' 6venue* 3slamabad
I principle officeI MCB to)er 1.1. C'undrigar road* 4arac'i.
!I registrars and s'ares registration office. &H4 6SS53C36& 7PV&.8?&D.
S'ares department ground floor*
Modern motors 'ouse
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Senior vice
president
5ice president
6ssistant vice
president
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Beaumont road* 4arac'i.
6l F'ouse main >ail road ?a'ore
I!#ro$u"#o! of all $epar#me!#%
!(dit 5!5 gro(p
+an"ing operation gro(p
+(siness de)elop$ent Ene# initiati)e
Cons($er ban"ing gro(p
Co$$ercial branch ban"ing gro(p
Co$pliance Econtrol gro(p
4inancial control gro(p
2($an reso(rce $anage$ent gro(p
Infor$ation technology gro(p
Isla$ic ban"ing gro(p
ProCect $anage$ent gro(p
5is" $anage$ent gro(p
Strategic planning Ein)est$ent gro(p
Special assets $anage$ent gro(p
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Treas(ry and 4G ban"ing gro(p
Dholesale ban"ing gro(p
!(dit E5!5 gro(pB
Code of corporate governance in Pa(istan mandates establis'ment of internal
audit and function for every listed company .internal audit is an independent*
ob>ective assurance and consulting activity designed to evaluate and improve an
organi.ationCs by bringing a systematic* disciplined approac' to evaluate and
improve t'e effectiveness of ris( management* control and governance process*
t'e function 3s performed by competent professionals called t'e internal auditors.
3n MCB* t'is function is operated by audit & @6@ group.
3n line )it' global best practices t'e group follo)s ris( based audit met'odology.
&'e group comprises of t'e follo)ing teams.
5perational audit 9 for carrying out t'e audit 7and ot'er ancillary
revie)sJassignments8 of branc'es and management offices )it'in t'e ban(.
3tJis auditDfor carrying out t'e audit of it systems* .applications and
infrastructure.
Basel compliance departmentD for carrying out audits of various
pro>ectsJreporting under basel accord.
Monitoring &)'istleblo)ing department9for follo)ing up on resolution
of audit observation and implementation of mcb* s )'istleblo)ing program.
&raining <uality assurance department 9for ensuring <uality of
auditJrevie) reports as per set standards .moreover t'is department ensures
professional development of auditors.
+an"ing operation gro(pB
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&'is group is a support to all transactions and financial functions of t'e ban(.
6ll bac(Dend processing and dealings are routed to different areas of t'is
mammot' group. &'e group provides 'elp to commercial ban(ing and consumer
ban(ing by 'andling cas' and cas' transactions* issuing various instruments li(e
pay orders and demand drafts .t'ey also support treasury by boo(Jrecord (eeping
and processing of all trade and finance operations .in additions to t'is *t'ey also
provide general services* facility management of t'e ban(s e-pense lines and
procurement.
&'e operations group .due to its si.e* 'as introduced units li(e internal control
reconciliation unit and process reDengineering unit to maintain an efficient and
ris( free )or( flo).
6 complete list of different function in operation is provided belo)I
Centrali0ed operations
Treas(ry bac" office
Trade ser)ices
Process re-engineering
+ranch ban"ing operations
Central processing (nit
Central acco(nt di)ision
6eneral ser)ices di)ision
Internal control
5econciliation
+(siness de)elop$ent Ene# initiati)esB
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,very day * organi.ations comes up )it' ne) and invigorating product Jservices
to attract customers .in order to compete )it' suc' rapid c'anges *fast gro)ing
mar(et and stiff contenders *)e 'ave dedicated an entire unit )'ose >ob is to
monitor suc' transformations and develop ne) business strategies in order to
(eep our business up to mar( .
&'is group basically is t'e t'in( tan( of t'e organi.ation t'ey deal in long term
strategies and provide appropriate situation to deal )it' business issues. &'is
function )or(s closely )it' ot'er groups and 'e president in order to identify
organi.ation and tactical goals .t'e entire study is based on statistical data and
researc' carried out from time to time.
Cons($er ban"ing gro(pB
&'is group primarily meets t'e needs of individual customers .it deals )it' selling
mar(eting and managing consumer products and providing various services to its
customers.
&'e consumer ban(ing group targets t'e consumer mar(et t'eir sales and product
development is completely managed by specific teams t'at are )'olly dedicated
to t'e specific product. ,ac' team 'as t'e responsibility of ma(ing t'eir
respective product efficient .competitive and user friendly .t'e product being
offered by mcb ban(
8nsec(red assetsB
MCB visa 7credit card8
MCB personal loans 7loan facility)
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Sec(red assetsB
Car "u 7car finance facility8
Pyara g'ar 7'ouse loan facility8
Business sarmya 7business establis'ment facility8
6side from secured and unsecured assets* consumer ban(ing also includes all
liability products* Banc assurance* MCB privilege & investment services.
&'e support function to t'ese products suc' as managing t'e ris( factors*
operational processing* customer facilitation* media Jadvertisement and <uality
control are also included in t'e consumer ban(ing group. &'ese include credit ris(
and initiation* call center* mar(eting services* services &<uality assurance.
Co$$ercial branch ban"ing gro(pB
&'is is t'e largest business group e-isting in t'e ban( .t'erefore due to its s'eer
si.e+ it 'as been divided into four portfolios* nort'* sout' central and east.
&'e )'ole group comprises of over 1000 online branc'es* about 0D!0 branc'es
7depending on t'e area8 form a region and furt'er D! region from a circle .every
circle office is managed by a general manger. Currently t'ere are 1" circle offices
present in our e-isting net)or(.
&'e ma>or function of t'is group is to manage assets and liability based retail
product .more t'an 10G of t'e ban( *deposit base is managed by t'is group .funds
generated by t'ese branc'es via deposits are utili.ed by various business groups
to give advances to customers. ,-cess funds are placed by treasury in t'e money
mar(et as )ell to earn 'ig'er spreads .t'e funds generated by t'e ban( in s'ape of
deposits are used to meet financing needs of our customers
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&'e commercial branc' ban(ing group is in continuous pursuit of en'ancing
ban(s brand image by main ting 'ig' services standards* building <uality assets
&optimal liability boo(.
5t'er t'an t'ese products* t'e commercial branc' ban(ing group facilities
incoming customers at branc' and e-tends t'e follo)ing
>iability prod(cts
S$art card
5(pee tra)eler che9(e
/irt(al ban"ing
.nline ban"ing
3obile ban"ing
&asy bill pay
>oc"ers s$e E$id-$ar"et
8tility bills
2aC ser)ices
Trade ser)ices re$ittance
5e$ittance
Cross-sell-;banc ass(rance car 4 credit7 in)est$ent
ser)ices<
Co$pliance E control gro(pB
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@egulatory compliance refers to systems or departments in t'e organi.ation t'at
ensure t'at personal are a)are of and ta(e steps to comply )it' relevant la)s and
regulations.
Ban( compliance strategically supports and reinforces t'e organi.ationCs goals
and ob>ectives .broadly spea(ing* compliance means ad'erence to local la)s and
regulations including ban(ing companiesC ordinance 11$ and SBP prudential
regulation and internal policies and rules of t'e ban( and specific operational
procedures.
Moreover* compliance is not only a function of complying )it' t'e la)* but a
broader integration )it' t'e organi.ationCs corporate responsibility.
5verall compliance group provides advice and guidance to t'e business to t'e
business groups to conduct t'eir )or( )it'in t'e re<uirement of t'e regulatory
environment and also provides regular a)areness training to t'e ban( staff in
order to promote a 'ealt'y regulatory climate.
4inancial control gro(pB
&'e financial control group 7KCF8 mangers ris( by implementing financial controls
t'at t'e assets and liabilities of t'e firm are properly controlled *and providing accurate
and timely financial information to senior management as )ell as to statutory and
regulatory bodies.
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&'e group provides profitability analyses* business plans* and budgets supporting
current and future business initiatives. Currently our financial control group is
divided into seven sub groups.
4inancial reporting (nit
State ban" reporting (nit
+ranch licensing (nit
Ta'ation (nit
+(dgeting and $anage$ent reporting (nit
Properly $anage$ent (nit
C3IS (nit
2($an reso(rce $anage$ent gro(p
Human resources is term )'ic' many organi.ations describe as t'e combination
of traditionally administrative personnel function )it' performance
management *employee relation and resources planning .t'e field dra)s upon
concepts developed in industrial organi.ational psyc'ology.
&'e ob>ective of 'uman resources is to ma-imi.e t'e return on investment from
t'e organi.ation* s 'uman capital and minimi.e financial ris( .it is t'e
responsibility of 'uman resource managers to conduct t'ese activities in an t'e
'uman resources management group at MCB is divided into t'e follo)ing areasI
.rgani0ational de)elop$ent
2r strategy
Co$pensation Etraining
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2r ad$inistration
2r financial ser)ices Ede)elop$ent
co$pensation Etraining.
Infor$ation technology gro(p
&oday* t'e term information tec'nology 'as ballooned to encompass many aspects
of computing and tec'nology* and t'e term is more recogni.able t'an ever
before .t'e information tec'nology umbrella can be <uite large* covering many
field .it professionals perform a variety of duties t'at range from installing
application to designing comple- computer net)or(s and information
databases .a fe) of t'e duties t'at it professionals perform include data
management* net)or(ing *engineering computer 'ard)are *database and soft)are
design as )ell as t'e management and administration of entire systems. ='en
computer and communication tec'nologies are combined* t'e result is information
tec'nology or :info tec';
Isla$ic ban"ing gro(p
=it' t'e emergence of different 3slamic ban(s in t'e local mar(et a lot of leading
and establis'ed conventional ban( are coming up )it' branc'es for t'e sole
purpose of 3slamic financing
MCB 3slamic ban(ing group operates t'roug' a net)or( of 11 branc'es across
Pa(istan and Pa(istan and offers s'aria complaint alternatives to conventional
ban(ing products currently+ our 3slamic branc'es offer t'e MCB alDma('ra>
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innate account 7current account8 as )ell as t'e alD ma('ra> saving account and t'e
al 9ma('ra> term deposits.
3n addition* 3slamic ban(ing offers auto and e<uipment financing based on t'e
principles of l>ara' muaraba'a and diming mus'ri(a.
ProCect $anage$ent
Pro>ect management MCB 'as embar(ed on t'e symbols pro>ect .symbols is an
integrated solution provided by system access for re<uirements of ban(s. System
access provides universal ban(ing solution t'at 'elp ban( deliver a broad range of
ban(ing products and services for retail and )'olesale ban(ing system access
provides solutions for bac( 9 office transaction processing *front office multiD
c'annel delivery card management and payments .system access solution provide
straig't 9t'oroug' transaction processing *front 9office multi 9c'annel delivery
*card management and payment system access solution provide straig't 9t'roug'
transaction processing centrali.ed common services .)or( flo) driven business
process and an enterprise 9)ide customer information repository.
MCB Pa(istan 9)as t'e first Pa(istani ban( to offer internet ban(ing after t'e
symbols MSc solution )as successfully deploy )it'in four mont's .symbols cbs
solution also provide its scalability in supporting large si.ed by being deployed as
t'e core ban(ing solution to po)er MCB*s net)or( of over 100 branc'es.
5is" $anage$ent
@MF plays a pivotal role in monitoring t'e ris(s associated )it' all t'e activities
of t'e ban( .t'e role of t'e group is to act as a strategic partner to t'e business
units advising t'em on ris( issues and best )ays to identify and manage t'ese
issues as )ell as a ris( controlee setting parameters for roes activities and
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revie)ing compliance )it' t'ese parameter in order to ensure t'at t'e ban( does
not incurred any undue ris( )it'out satisfactory tenure
&'e group is split into follo)ing sub function
Credit re)ie#
Credit ris" control credit ris"
3ar"et ris" $anage$ent
+asel2 proCect Hoperational ris"
536 co$pliance
Strategic planning Ein)est$ent gro(p
Strategic planning &investment group 7spic8 of t'e follo)ing four divisionsI
?egal affairs division
Corporate affairs division
Capital mar(et
Strategic planning division
Special assets $anage$ent gro(p
SM6F as it is called *deals )it' t'ose advances Jaccount )'ic' 'ave been
classified as nonDfunctioning accounts .t'is group searc'es or ade<uate means for
obtaining closure on t'ese accounts t'is can be a result of e-tensive negotiation
)it' t'e client *action of selling goods t'at )ere mortgaged see(ing appropriate
means of investment or imposing legal suits. &'e group is also re<uired to report
t'ese matters to regulatory aut'orities on timely bases.
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&'e advances are currently limited t'ose boo(ed under t'e corporate or
commercial umbrella t'ese accounts )'en not performing of !$0 days are placed
under t'e loft category and are reported to SM6F
&'is group t'en underta(es t'e all necessary actions to recover Jminimi.e t'e
)riteDof factor.
Treas(ry Ef' ban"ing gro(p
&'is group deals )it' investing t'e ban(Cs deposits into productive and lucrative
mar(ets )it' an intention of driving profits treasury deals )it' s'ort term
investment )it' in t'e money mar(et or ot'er products it is also responsible to
maintain service levels )it' t'eir clients and to provide t'em )it' effective
trading rates .in order to retainJgenerate business
3tCs furt'er classified into follo)ing sub function
3oney $ar"et des"
4oreign e'change des"
Treas(ry $ar"eting (nit
Deri)ati)es des"
Dhole sale ban"ing
='ole sale ban(ing provides ban(ing services to large local and multinational
corporates client s and financial institution t'e group also manages t'e transaction
ban(ing plate forum 7bot' trade and cas' management8and international division
t'e ban(
&'e )'olesale ban(ing group at MCB ban( limited comprises of follo)ing
businessI
Corporate ban"ing di)ision
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International di)ision
Transaction ban"ing di)ision
In)est$ent ban"ing di)ision
4inancial instit(tion:
Trade prod(ct di)ision
Co$$ents on organi0ation str(ct(re
Structure of t'e organi.ation is )ell developed it is designed according to t'e
re<uirements of t'e ban( due to its stable structure it gives re<uired results to
organi.ation.it meets t'e 'uman resource re<uirement of t'e origination
en'ancing t'eir abilities and capabilities to perform t'e assign tas(s effectively
and efficiently.


Plan of $y Internship Progra$
a. ! brief introd(ction of the branch #here I did $y
internship
&'an( fully 3 did my interns'ip from MCB ban( 7?td8 Main @oad
4'us'ab branc'. &'is Branc' is online branc' so 3 leaned t'at t'e )or(ing of t'e
management is very smoot' and t'e efficient.
3n t'is branc' 3 observed t'at t'is branc' doing a great business and t'e
management and t'e staff of t'e branc' is efficient and t'e professional and t'e
manage 'andle all t'e )or(ing of t'e branc' and t'is branc' 'ave t'e very good
contact and t'e relation )it' t'e s'ops business entities and t'e ot'er sound
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parties as )ell to increase t'e deposit of t'e branc' and maintain t'e efficiency of
t'e )or( and en'ance t'e organi.ation.
&'e manager guided to t'e different functions operating )it' in t'e
organi.ation and t'e sub manager ma(es sure and ta(es t'e responsibility t'at
staff doing )or( efficiently in t'e entire department.
6nd also t'e branc' is )ell maintained and decorated and t'e entire
department 'ave separate place )it' in t'e organi.ation to doing t'ere assign
duties and t'e environment of t'e organi.ation attract t'e customer as )ell )'ic'
is good for t'e organi.ation.
b. Starting and the ending dates of $y internship
Starting and t'e ending dates of my interns'ip program in t'e MCB ban(
7?td8 in a Main @oad 70!""8 4'us'ab isI
Starting Date 1t' /une 01"
,nding Date #
t'
6ugust 01"
c. Na$es of the depart$ents in #hich I got training
and the d(ration of $y training
During my interns'ip 3 )or( almost in t'e all department and my interns'ip
duration is $ )ee( 3 learnt t'e )or(ing of t'e follo)ing department
!cco(nt opening depart$ent
Cash depart$ent
Credit depart$ent
Clearing depart$ent
5e$ittances depart$ent
Detailed description of t'e tas(s assigned to me during t'e interns'ip program
Duration of my interns'ip si- )ee( in a MCB ban( 7?td8 Main @oad 4'us'ab
branc' )'ere 3 learned t'e detail )or( of t'e different department 3 )or( in t'e
various department but 3 e-plain t'ose department in )'ic' 3 got full command
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during my learning process . &'e detail of t'e function )'ic' 3 perform is
mention as under
a. !cco(nt opening depart$ent
3n my first t)o )ee(s 3Cll )or( in t'e account opening departments. 3t is
important department of t'e ban( because all t'e )or(ing of t'e ban( base on
account and t'e ban( account s'o)s t'e deposit of t'e ban( if any person )or(ing
)it' t'e ban( or t'e organi.ation t'en first step is t'e account opening and my
)or( is in t'e department is to open t'e ne) account for a valuable customer and
3 learned t'at t'ere is fe) many document )'ic' is use in t'e opening of ne)
account. &'ere are many type of accounts t'e MCB ban( 7?td8 is offered to its
customer in )'ic' include Current account* Saving account* 7P?S8 Profit and loss
account* BB6 7Basic Ban(ing 6ccount8* 4B674'us'ali Bac'at 6ccount8 t'ese
'ave different specification of t'e customer )'ic' )ill gave benefit of 'im. Kor
account opening t'e minimum amount re<uired is 1000 @s.
&'e document )'ic' is used in t'e opening a ne) account is as underI
1. !cco(nt opening for$
2. The na$e of person #ho re9(est for opening the
ne# acco(nt
3. The type of the acco(nt
4. Co$p(teri0ed Copy of national identification card
. Chec" the e'piry date
%. 4illed the opening for$
*. Signat(re of the person
,. SS Card ;Speci$en Signat(re Card<
-. 3other na$e
11. 4ather na$e
11. Present address
12. Per$anent address
13.@?C 4oa$ ;@no# yo(r C(sto$er<
14.CNIC 5e9(ired for @IN
&'e most important in account opening is SS Card signature because )e grudge it
may )'ic' customer )it'dra) t'e money is original customer or not* and ot'er
step is 4LC Korm in t'is form )e collect all secret information li(e client Kat'er
and mot'er name* income of t'e business* 'is email address* postal address* and
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content number. &'e last one is CE3C re<uired of 43E for t'ose person )'o 'ave
a blood relation of client li(e fat'er* mot'er* brot'er* sister* in t'is t'ere is no
re<uired for friend or ot'er person E3C only for t'ose )'o 'ave a blood relation
of t'e client.
b. Cash depart$ent
During my interns'ip 3 spent my !
rd
)ee( in t'e cas' department and cas'
department is totally deals )it' t'e cas' )'et'er t'e cas' comes in t'e ban( or
out from t'e ban( during t'e learning in t'e cas' department 3 learn t'e all t'e
activities )'ic' is perform in t'e cas' department .in t'e cas' department t'ere is
various sub department according to t'e categories )'ic' are performing by t'e
different persons in t'e department in t'e cas' department t'ere are fore to five
counters in )'ic' include
1. The iss(ance the to"en
2. 5eceipt co(nter or the cash deposit co(nter
3. Pay$ent of cash and chec"s
4. /erification and clearance the chec" and acco(nt
co(nter
. +ill and fee recei)e co(nter
During my learning process 3 learned t'at first of all issue t'e to(en to t'e
customer and t'en in t'e receipt counter receive t'e cas' and maintained t'e
account and t'en if a customer 'ave a c'ec( t'en t'e c'e<ue is verifies by t'e
verification person and t'en t'e cas'er ma(es t'e payment against t'e c'e<ue and
also transfer t'e money online and maintained t'e all activities )'ic' is cas'er
duties i.e. give t'e cas' to t'e valuable customer and t'e bill and t'e fees receive
counter receive t'e bill payment and t'e fees and maintain all t'e activities related
to bill and fees collection.
&'e activities of t'e cas' department of MCB ban( 7?td8 is as under
1. So(rce of cash
2. 3anage$ent of cash
3. Deposits
4. De$and draft and the online $aintains
. Treat$ent of s(rpl(s cash
%. Treat$ent of the cash deficit
*. Cash transit
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,. Iss(ance of cash
-. Sec(rity arrange$ents
11. /erification of che9(e
11. 5ecei)e the bill and the fees collection
&'is is t'e most important department of t'e ban( 3 leaned )'ile )or(ing in t'is
department t'at t'ere is all about maintains of t'e cas' in t'is department in t'e
staff )or( very carefully ma(e sure t'ere is no mista(e and in t'e closing at
evening bot' t'e sides of t'e cas' account is balanced or e<ual t'en t'e ban(s
ma(es t'e profit.
c. Credit depart$ent
My "
t'
)ee( during my interns'ip in t'e credit department t'e credit department
is t'e one of t'e most important department of t'e ban(. &'e credit department is
)or(s )it' maintain t'e loan and credit and also issue t'e credit after necessary
verification and t'e security and t'e guarantee to t'e desire limit and t'ere is t'e
rule and t'e regulation to issue t'e credit and loan to t'e customers.
Credit department of MCB ban( 7?td8 deals )it' different type of running finance
and t'e type of loan is as under
Cash finance
De$and finance
Ter$ finance
Short ter$ and loan ter$ loan
&tc.
3 learned in t'is department t'at t'e basic information t'at 3 entered for t'e
issuance of credit or loan is as under
1. Na$e of the c(sto$er
2. Copy of CINC
3. &'piry date of the CNIC
4. Date of birth
. Co$plete address
%. Inco$e of the c(sto$er
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3f t'e individual )ants to ta(e t'e loan from t'e ban( t'en t'ere is t'e limits of t'e
loan )'ic' provided by t'e ban( to any person or t'e organi.ation. 3 leaned t'at
for t'e purpose of loan giving by t'e ban( t'ere is fe) many document and t'e
guarantee re<uired by t'e ban( according to t'e loan type t'e re<uirements is as
under
1. !cco(nt n($ber of the borro#er and the acco(nt
type
2. Nat(re of the b(siness and the $ain prod(cts
3. Na$e of the borro#er
4. P(rpose of the loan #hether it is for partnership or
proprietor b(siness
. Type of the b(siness
%. Details in case of fir$ and co$panies associated
#ith the loan
*. !nd the c(rrent financial position of the b(siness
,. !nd the acc(rate financial state$ent of the b(siness
last t#o years or $ore
-. !nd the detail of the borro#ers ban" acco(nt #ith
other ban"s
&'e purpose of t'e credit is for t'e starting t'e ne) business or t'e e-pansion of
t'e e-isting business or t'e purc'ase of t'e stoc(
d. Cleaning depart$ent
My #
t'
)ee( is all about t'e clearing department. 3 learned t'e )or( and t'e
function )'ic' is performed in t'e clearing department. &'is department t'e
important department of t'e ban(
3 learn t'at clearing is t'e process in )'ic' ban(ers settle t'ere mutual accounts
by t'e claming t'e arising account of various instruments presented by one ban(
dra)n on t'e ot'er ban(s in a same city or t'e out side t'e city t'roug' E3K&
7Eational 3nstitutional Kacilitation &ec'nologies8. E3K& is t'e department of
collection of clearing c'e<ues of eac' branc'* t'ese plays middlemen of t'e ban(
and client.
&'ere are t)o types of clearing going in t'e ban( 3n)ard clearing and t'e
5ut)ard clearing .)e can say t'at t'e clearing is clear t'ose c'e<ue )'ic' cannot
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be cas' at t'e cas' counter of t'e ban( . t'e representative of t'e respective ban(
collect all t'e c'e<ue and t'e instrument )'ic' dra)n on t'ere and settle t'e
account and doing t'e clearing function t'is assembly of t'e representative of t'e
ban( is called Clearing 'ouse E3K& perform t'e clearing on t'e be'alf of t'e
commercial ban(s in all t'e cities t'roug' out t'e country.
&'e type of t'e clearing is as under
3n)ard clearingJ ?ocal clearing
5ut)ard clearingJ 3ntercity clearing
In#ard clearing
t'e instrument and t'e settlement or t'e claim by t'e ot'er ban(s or t'e ot'er
branc'es of MCB on our branc' of MCB ban( in )'ic' include t'e c'e<ue draft
and etc* are dra)n by t'e ot'er ban( customer or by t'e MCB ban( branc'es in
clearing in t'e in)ard clearing process t'ere is fe) t'ing include )'ic' is
mentioned as underI
1. Cross sta$p on the face
2. Clearing sta$p on the front and the bac"
3. The clearing sta$p bearing the date of the ne't
#or"ing day
4. Payees acco(nt is credited and the sta$p on the
che9(e and signat(re of the operational $anager
. !nd before entering the che9(e into the co$p(ter
the sta$p and the signat(re is to be )erified and the
che9(e is posted and drafted.
.(t#ard clearing
3 leant about out)ard clearing in MCB ban( clearing department. out )ard
clearing is t'at t'e settle of claims of our branc' of MCB ban( or t'e ot'er
branc'es of MCB ban( dra)n of ot'er ban(s or ot'er branc'es of MCB ban(
deposited by our customer in our branc'es of t'e ban( * presented by our branc'
of MCB ban( in out )ard clearing .
='en t'e c'e<ues of out)ard clearing is received t'en it is entered into t'e
clearing registered
Kollo)ing detail are entered is in t'e bot' registered is as follo)
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1. Serial No.
2. !cco(nt no. of the depositor
3. Depositor na$e
4. Dra#er
. Dra#ee
%. Che9(e No.
*. !$o(nt of the che9(e
,. Cross sta$p on the face of the che9(e
-. !nd the clearing sta$p
11. !nd the sta$p on the bac" of the chec" payee
acco(nt #ill be credited
&'e local clearing* a bundle cover is arranged manner t'e branc' code stamp*
total amount and number of instruments. &'is amount s'ould matc' t'e one t'at is
(ept in t'e Clearing @egister. &'e c'e<ues or t'e instrument )it' bundle cover
and outline are pac(ed in E3K& bag. Before putting t'ese items in t'e bag* a
plastic seal number is re<uired and s'ould be )ritten on t'e bundle cover and t'e
same seal s'ould be used to close t'e E3K& bag. &'is is to ensure additional safety
as )'en t'e seal is opened* it is nonDreplaceable. 3f t'e seal number on t'e bag
and on t'e bundle cover does not matc'* it is a suggestion t'at t'e bag 'as been
tamper )it'. Strict action can be ta(en by E3K& and t'e Ban( conse<uently.
3n clearing process t'ere s also include intercity clearness
e. 5e$ittances Depart$ent
My last )ee( is about )or(ing in t'e remittances department. 3t is very important
department in t'e current scenario in t'is department t'e ban( deals )it' transfer
money and different type of fund and also receive fund from abroad form t'e
Pa(istani community and ot'ers as )ell )'ic' is called remittances
&'e MCB ban( transfer different type of fund t'roug' t'e different services in
)'ic' t'e some is mentioned belo)
3 learnt t'at t'e money transfer and remittances 'ave follo)ing features
1. F(ic" and hassle free transfer
2. There is little charges of transfer
3. !nd sa$e day de)ilry to 3C+ acco(nt holder
4. S3S alert facility
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. !nd for non acco(nt holders the f(nds transfers
online or )ia ban" draft.
6nd also )'en t'e nonresident person sends t'e fund to t'ere family t'e ban( is
ta(es t'e follo)ing steps+
1. !lert #ith a phone call or S3S to c(sto$er
2. No charges or no ded(ction to the recipient.
3. 5ecei)ed the , digit PIN fro$ recei)er and then
chec" it #hether the re$ittance is recei)ed and fill the
for$
4. Then chec" the copy original national ID card
. !nd then recei)ed the CNIC copy fro$ the person
%. Then the )erification Seal or sta$p placed on the
for$
*. !nd the last step is that the person recei)ed the cash
fro$ the casher
Destern 8nion
During my )or( in t'is department 3 deals )it' t'e customer )'ic' transfer t'ere
money t'roug' t'e )estern union. &'roug' t'e use of t'e )estern union one can
get money from all cities in t'e Pa(istan from )estern union branc'es or any ban(
or post office or t'e money c'anger. ='en person sent t'e money* t'e concerned
company or ban( give t'e P3E number to t'e person against t'e name of t'e
person and t'e cell number )'o received t'e money t'roug' )estern union. ='en
t'e receiver go to ban( for receive of money t'e ban( ta(es t'e P3E number and
t'e original CE3C copy from t'e receive and give 'im money
Telegraphic transfer ;TT<
&elegrap'ic transfer is t'at after filling t'e application form t'e concerned officer
fills t'e telegrap'ic transfer form after t'at it is sent to t'e re<uired ban( and t'en
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t'e concerned ban( ma(es t'e payment immediately to t'e customer and after t'at
t'e vouc'er sent to t'e ban( by t'e mail.
De$and draft ;DD<
Demand draft is li(e an instrument as issue on t'e )ill of t'e customer because
avoid t'e e-tra burden of t'e currency and it is payable on t'e demand )'en t'e
customer )ant it its issue by t'e one branc' of t'e ban( a payable by anot'er
branc' of t'e same ban(.
6IN,N-I,. ,N,.7SIS
86inancia" statement ana"ysis is the process of identifying of financia"
strengths and !ea'nesses of the firm by proper"y estab"ishing re"ationship
bet!een the items of the ba"ance sheet and the profit 9"oss account(8 and it is
done through ratio ana"ysis+
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Si- LearsC Vertical 6nalysis
Statement of Kinancial Position J Profit & ?oss
2113 2112 2111 2111 211- 211,
@s Mil G @s Mil G @s Mil G @s Mil G @s Mil G @s Mil G
State$ent of 4inancial Position
!ssets
Profit and >oss !cco(nts
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Si- LearsC Hori.ontal 6nalysis
Statement of Kinancial Position J Profit & ?oss
2113 2112 2111 2111 211- 211,
@s Mil G @s Mil G @s Mil G @s Mil G @s Mil G @s Mil G
State$ent of 4inancial Position
6ssets
Profit and >oss !cco(nt
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2ori0ontal !nalysis
6sset base of t'e ban( 'as increased considerably over t'e past $ years+ 'ig'est
increase )as observed in 01 )'ere assets 'ave increased by 1%G* mainly
contributed by investments in terms of volume. 5n an annuali.ed basis* t'e asset
base 'as recorded an increase of 1!G over t'e last si- years )it' ma>or
contributions coming from investments. Hig'est increase in investments )as
posted in 001 summing up to %!G* follo)ed by "1G increase reported for 011.
&'e deposit base of t'e Ban( 'as increased considerably over t'e years gro)ing
from @s. !!0 billion in 002 to @s. $! billion in 01! translating into an annual
gro)t' of 1"G over past $ years. ,<uity of t'e ban( 'as also posted 'ealt'y
increase due to 'ig'er profitability in past $ years* translating into 1"G average
gro)t' over $ year period.
Moving on to Profit and ?oss side* gross mar(up earned 'as posted an average
increase of 10G over a span of si- years. Corresponding to t'e s'ift in asset mi-*
contribution from income on investments 'as increased over years. &'e increase
in mar(up e-pense on deposits is on account of regulatory revisions enacted by
t'e Central Ban( and increased deposit base. 3n 002* minimum deposit rate
7MD@8 )as set at #G by t'e Central Ban(. 3n 01* t'e MD@ )as revised to $G
on all local currency saving and fi-ed deposit products. 3n 01!* t)o regulatory
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revisions )ere enacted+ computation of interest on average balance basis and
pegging of MD@ )it' t'e floor rate of t'e repo corridor.
Eon Mar(up income 'ave s'o)n steady gro)t' of 1"G average over $ years
)'ile PB& and P6& 'ave s'o)n 2G and %G average gro)t' in past $ years. Eon
mar(up e-pense 'as s'o)n 11G average gro)t' over past $ years )'ic' is inDline
)it' t'e operational gro)t' and inflationary surge over t'e past fe) years.
Provision against advances and investments 'as been on t'e decreasing trend )it'
reversal to t'e tune of @s. .2 billion recorded for 01!.
/ertical !nalysis
Vertical analysis 'ig'lig't over t'e last si- years signifies 'ig'er concentration
levels of investments and advances in t'e asset base of t'e Ban(. &'e advances
base of t'e Ban( 'as posted moderate gro)t' over t'e last fe) years due to t'e
lac( of credit opportunities and intense competition impacting earning potential.
@esultantly* t'e significant increase in deposit base 'as been invested in &DBills
and P3Bs over years )it' a substantial increase in t'e concentration levels from
G in 002 to ##G in 01!.
Corresponding to t'e infrastructural and operational gro)t' registered by t'e
Ban(* t'e deposit base 'as increased considerably over t'e period of si- years.
3mproved <uality service levels and tailored products 'as earned t'e loyalty of our
customers. &'e fact can be substantiated )it' t'e fact t'at t'e C6S6 base of t'e
ban( 'as been above 20G over t'e last many years.
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?ear:s 5atio !nalysis
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SD.T !nalysis
&'e overall evaluation of a company* s strengt'* )ea(ness* opportunities* and
t'reats is called S=5& analysis.
strengt's and )ea(nesses are internal to t'e organi.ation and represent its culture
)'ile opportunities and t'reats correspond to t'e environment outside t'e
organi.ation. Strengt's are t'ose <ualities )'ic' distinguis' or give an edge to t'e
organi.ation over ot'er organi.ations.
StrengthB
&'e main strengt' of t'e ban( lies in its services. &'e ot'er fact t'at contributes is
approac'ing to eac' segment of society .anot'er positive concern t'at becomes
t'e strengt' of t'e ban( is its innovation some ot'ers are as follo)s
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+an" rep(tationB
MCB 'as made a status of a compact economic institutions over $0 years it focus
on gro)t' done enlig'tening services <uality investment in tec'nology and people
developing its e-tensive branc' net)or( and evolving a large and stable deposits
based .
Technical $anage$ent s"illsB
Different department of t'e MCB ban( are developed )it' tec'nical management
s(ills different issues are tec'nically managed to avoid any disturbance and to run
t'e business smoot'ly.
C(sto$er satisfactionI
MCB ban( by t'e customer satisfaction.it enables t'e customer t'oroug'
providing t'em appropriate services and guiding t'em in t'eir investment c'oices.
customer al)ays reliable and believe MCB.MCB ban( believes in building and
(eeping close relations'ip built on supreme care and devotion itself as an
compliment to MCB credit.
Pro$otion effecti)enessI
MCB 'as developed a very encouraging promotional principle )'ic' create great
loyalty and motivations in employees to)ards t'e ban(
MCB 'as developed a very encouraging promotional principle )'ic' create great
loyalty and motivations in employees to)ards t'e ban(
Tea$ based approachB
MCB is team of loyal determined and fait'ful e-perts )'o (eep <uality of
services done outstanding performance and presentation. 3n MCB ban( t'ere
establis'ed a team determination and accord among employees pro>ects are
accomplis'ed t'roug' members connectively )or(ing as team
Contin(o(s i$pro)e$entB
MCB ban( 'eld diverse training programs )'ic' enables t'e members or staff
upgrade t'eir (no)ledge .MCB 'as ta(en initiative to introduced ne) sc'emes
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regarding its product and services .in t'is )ay it continuously made improvement
in its employees and services.
F(est for 9(alityB
MCB ban( al)ays try to give its customers <uality product and services to (eep
t'em permanent client of ban(.it al)ays uses different c'annels to improve t'e
<uality.
&$ployee respect and dignityB
,very employee in t'e organi.ation is given due respect and o)ner irrespective of
its status and level .employee feel proud to be a part of t'e organi.ation.
>arge net#or" of branchesB
MCB is function by t'e great net )or( of 100 plus online branc'es nation)ide
MCB determined constantly to develop and en'anced its branc' net)or( day by
day to confirm satisfy and approac'ability to its customer.
Dea"nessB
Some of )ea(nesses are as follo)I
>ess prod(cti)ity fro$ staff
&'e ban( management is unable to utili.e optimum productivity from t'e staff.
&'e matter of fact is t'at staff is s(illed and e-perienced but t'at are not utili.ed
properly to gain optimal productivity
.)erb(rdened staff
Staff is overburdened )it' unproductivity tas(s from t'e management .employee
s'ould be used )'en and )'ere re<uired to get ma-imum output from t'em.
@ig't man for rig't >ob s'ould be used.
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>ate sitting trend
&'e most prominent fault in t'e ban(Cs management is t'at late sitting is
becoming t'e trend of t'e ban(. 6lt'oug'* overtime or late sitting in necessary for
t'e sa(e of meeting deadlines .but late sitting )it'out purpose is of no use.in
MCB late sitting is no) trend. 3f t'ey utili.e t'eir proper time t'en t'ey do not
need sit late in t'e evening.
>ac" of organi0ation de)otion
5rgani.ation loyalty 'as deficiency bet)een employees. ,mployees donCt pay
attention to t'eir tas(s as t'ey t'in( t'eir >ob as permanent.
!ttit(de of seniors to#ards to C(niors
6ttitude of seniors 'as to c'ange to)ard to >uniorCs .some time seniors attitude are
not professional. Some seniors get t'e advantage of t'eir seniority and t'ey treat
t'e >uniors 'ars'ly if t'ey do not perform according to t'eir )ill.
>ac" of leadership 9(alities
Kor t'e proper performance to)ards t'e ac'ievement of organi.ation goals a
strong )or(ing environment is necessary and to create t'is environment senior
s'ould play t'e role of leader. &'ey s'ould understand t'e problems of t'eir
subordinates and try to solve t'eir problems and build a strong relations'ip t'at
results in t'e ac'ievement of organi.ation goals efficiently and effectively.
3n some areas in t'e MCB unfortunately t'ere is lac( of leaders'ip <ualities in t'e
seniors )'ic' produce embarrassment among t'e >uniors
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.pport(nitiesB
MCB ban( may improve its rupee traveller c'e<ues 7@&Cs8 sales by t'roug' for
ne) mar(et positions.it can familiari.e debt card system or may adapt t'e current
6&M cards into a )'ole debt card. House financing sector can be targeted to
ma-imi.e t'e profit.
MCB ban( enter into contract )it' ot'er ban(s to use eac' ot'er *s 6&Ms )'ic'
)ill result in an increased accessibility to MCB customers and customers of ot'er
ban(s as )ell as all around t'e )orld settlements money are strictly observed so
as t'e money paid may not fall in 'ands of t'us termed e-tremists for t'at all
predictable money filtering done HBED3,S 'ave been still t'ere is an
opportunity for MCB to spread its branc' net)or( to several countries
'ig'lig'ting mostly on introducing electronic fund transfer services.
Different ban(ing courses can be offered for improving of ban(ing staff
3anage$ent s"ills
Different management s(ills courses s'ould be introduced to employees in order
to ma(e t'em familiar management abilities.
8pdate co(rsesB
Various refres'er courses s'ould be conducted for t'e staff to (eep t'em abreast.
4oreign trainingB
Staff s'ould be sent for some foreign courses in order to (no)n t'em for global
progress in t'eir respective fields.
IT co(rsesB
Kor staff it is necessary to 'ave (no)ledge in t'is it )orld various 3& courses
conducted for t'e staff.
ThreatsB
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Co$petitions are increasing day by dayB
Due to t'e increase in t'e number of conventional commercial ban(s* t'ere is an
increase in competition. 6lso t'ere is a lot of aggressive mar(eting by t'e
competitor ban(s .t'is is also a t'reat for MCB ban(.
Increasing interest ratesB
Due to increases in interest rate against loans customer and investors cannot get
loan from ban( .customer )ill feel un'appy and t'ey are enable to ta(e muc'
loans )'ic' )ill decreases t'e business of ban(.
Instability of go)ern$ent policies B
Fovernment policies c'anging day by day and government stability is not t'ere.
&ntrance of foreign ban"s in local $ar"et B
3ncreasing number of foreign ban( is entering day by day in local mar(et .)'ic'
is increasing competitive mar(et of ban(ing sector.
Dea" econo$ic condition of Pa"istan
=ea( economic condition of Pa(istan is producing 'indrance in t'e )ay to
progress because people are not in good financial position to do business
t'emselves or to finance it from t'e ban(s.
8nregistered b(siness concernB
Some institutions are not registered so t'ey are not bound to adapt all t'e policies
of S&6&, B6E4 5K P643S6&6E. &'ey can ma(e t'eir loaning and inters
policies to attract customers .
Concl(sion
6s 3 'ave studied and analy.ed MCB ban( ltd .i found out t'is a good ban( as its
)or(ing* management is concerned.
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Kirst of all t'e reason of t'is is t'at t'ere is no directive style in t'e management
of MCB and )'ic' s'o)s t'at t'ere is decentrali.ation in t'e ban( and every
branc' manager can ta(e decision according to t'e situation.
MCB is providing t'eir customers )it' )ide range of services including online
ban(ing. Virtual ban(ing and some of t'eir ne) products in t'e pipeline* include
6&M net)or( etc. s'o)s t'at MCB ban( is ta(ing good care of t'eir customers.
MCB ban( made 'eavy investments* to)ards en'ancing its capabilities in t'e area
of automation and tec'nology .MCB is )ell positioned to meet client needs* )it'
improved competitive advantage.
During my stay at ban( MCB 3 'ave observed t'at some people are overburdened
and some people used to sit idle for most of t'eir )or(ing 'ours. &'ere s'ould to
)or( load analysis for all employee and )or( load s'ould be distributed
respectively (eeping in vie)s t'e capacities and capabilities of employees. &'e
ban( s'ould improve its online transaction system and intranet. Ban( s'ould
improve its online transaction system .ne) mar(eting strategies s'ould developed
to attract customers.
More training and developments programs s'ould be lunc'ed in order to clear t'e
concepts of employees about ne) products and ban(ing tec'ni<ues t'ere is need
to develop a good relations'ip among employees and t'eir seniors.
5eco$$endations
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3n some branc'es of MCB t'ere is a problem of staff s'ortage .t'ere are only fe)
employees )'o are t'e be all and end all of t'e )'ole branc' resulting in burden
of )or( s'ortage of staff s'ould be 'andled timely.
Most of t'e ban( employee are stic(ing to one seat only )it' t'e result t'at t'ey
become master of one particular >ob and lose t'eir grip on ot'er ban(ing
operation. 3n my opinion t'e entire employee s'ould 'ave regular >ob e-perience
all outloo( to)ards ban(ing >ob rotation is must for ma(ing people and assets fir
t'e company
Ban(s s'ould give some incentives to its employees in order to remove t'e
conflict bet)een lo)er and 'ig'er officers and s'ould try to improve t'e )or(ing
condition of ban(.
it is 'uman nature goes be'ind re)ard and incentivesC )'ile one try avoid from
punis'ment .li(e)ise in commercial institution li(e ban( t'is system be
introduced )it' full force means active smart* educated s(illed *selfDspo(en and
)ell versed staff personal *s'ould be re)arded* )'ile on t'e ot'er 'and la.y
*let'argic *roug' dealers and illDmannered must be )arned penali.ed and
punis'ed.
&'e period of interns'ip s'ould be divided into t'e number of department of t'e
MCB t'e internee s'ould be given time table mentoring t'e number of days 'e
'as to )or( at different places in t'e ban( on t'e 1st " days eac' department
internee s'ould be given lectures by t'e officers of t'e department concerned
about )or(ing of t'e department.
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5eference E So(rces
Debsite So(rcesB
70118. Human resource management system. =i(ipedia. @etrieved
from
'ttpIJJen.)i(ipedia.orgJ)i(iJHumanMresourceMmanagementMsystem
70118. History of MCB. MCB Bank Limited. @etrieved from
'ttpIJJ'ttpIJJ))).mcb.com.p(JmcbJaboutMmcb.asp
70118. Vision and Mission Statement of MCB. MCB Bank Limited.
@etrieved from 'ttpIJJ))).mcb.com.p(JmcbJmissionMvision.asp
70118. Product and Services of MCB. MCB Bank Limited. @etrieved
from 'ttpIJJ))).mcb.com.p(JpscJpersonalJdefault.asp
70118. Kinancial Data and @eports of MCB. MCB Bank Limited.
@etrieved from 'ttpIJJ))).mcb.com.p(JirJfinMdataMrep.asp
+oo"sB
Marc ,ffron* @obert Fandossy* & Mars'all Foldsmit' 700!8.
"Human Resources in the 21st Century". Ee) Lor(I /o'n =iley &
Sons.
70118Virtual Bniversity MF& #01 D Human resources management.
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&'tra So(rceB
Colleag(es
.perational $anager
+ranch 3anager
2ead of Depart$ent
Different 2and boo"s
Ne#spapers
!o""a#$ o% &e#'"
+rea"(p /al(e per share
@epresents t'e total )ort' 7e<uity8 of t'e business per s'are*
calculated as s'are'oldersC e<uity or Eet 6ssets e-cluding
t'e impact of revaluation on fi-ed assets* divided by t'e total
number of s'are outstanding at year end.
()D
Ban6in# Sureillance -e&art%ent
Ca*ita! Ade+,ac$ Ratio -CAR.
7he relationshi& bet'een ca&ital and ris6 'ei#hted assets
as de8ned in the "ra%e'or6 deelo&ed b! the State Ban6
o" 9a6istan.
Ca"h Re"e#/e Ratio -CRR.
Cash Resere Ratio is the a%ount o" "unds that the ban6s
hae to 6ee& 'ith SB9.
Ca"h E+,i/a!ent"
Short2ter% hi#hl! li:uid inest%ents that are readil!
conertible to 6no'n a%ounts o" cash and 'hich are
sub4ect to an insi#ni8cant ris6 o" chan#es in alue.
Co"t to 0nco'e Ratio
7he &ro&ortion o" total o&eratin# costs e;cludin# total
&roisions and 'rite2o<s, to total inco%e, re&resented as
co%bination o" net interest inco%e and non interest inco%e.
C#edit Ri"1 )*#ead
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7he credit s&read is the !ield s&read bet'een securities
'ith the sa%e cou&on rate and %aturit! structure but 'ith
di<erent associated credit ris6s, 'ith the !ield s&read risin#
as the credit ratin# 'orsens. It is the &re%iu% oer the
bench%ar6 or ris62"ree rate re:uired b! the %ar6et to ta6e
on a lo'er credit :ualit!.
Di/idend Pa$o,t Ratio
-iidends $cash diidend &lus bonus shares( &aid &er share
as a "raction o" earnin#s &er share $E9S(.
Di/idend 2ie!d Ratio
-iidend &er share diided b! the %ar6et alue o" share.
Fo#ced )a!e 3a!,e -F)3.
.orced Sale =alue %eans the alue 'hich "ull! re>ects the
&ossibilit! o" &rice >uctuations and can currentl! be obtained
b! sellin# the %ort#a#ed ? &led#ed assets in a "orced ?
distressed sale conditions.
o/e#n'ent )ec,#itie"
@oern%ent Securities shall include such t!&es o" 9a6.
Ru&ee obli#ations o" the .ederal @oern%ent or a 9roincial
@oern%ent or o" a Cor&oration 'holl! o'ned or
controlled, directl! or indirectl!, b! the .ederal @oern%ent
or a 9roincial @oern%ent and #uaranteed b! the .ederal
@oern%ent as the .ederal @oern%ent %a!, b! noti8cation
in the OAcial @aBette, declare, to the e;tent deter%ined
"ro% ti%e to ti%e, to be @oern%ent Securities.
0'*ai#'ent a!!o4ance"
A &roision held on the balance sheet as a result o" the
raisin# o" a char#e a#ainst &ro8t "or the incurred loss inherent
in the lendin# boo6. An i%&air%ent allo'ance %a! either be
identi8ed or unidenti8ed and indiidual or collectie.
Fo#ei5n E6chan5e 7*tion"-F8 7*tion".
Contracts that #ie the bu!er the ri#ht, but not the
obli#ation, to bu! or sell one currenc! a#ainst the other, at a
&redeter%ined &rice and on or be"ore a &redeter%ined date.
7he bu!er o" a call?&ut .C o&tion has the ri#ht to bu!?sell a
currenc! a#ainst another at a s&eci8ed rate.
Universty of sargodha (Sub campus ian!a"i#
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INTERNSHIP REPORT
Fo#4a#d P,#cha"e Cont#act
.or'ard &urchase contract is one in 'hich the e;&orter
enters into the "or'ard boo6in# contract to &rotect hi%sel"
"ro% the e;chan#e rate >uctuation at the ti%e o" receiin#
&a!%ent.
Fo#4a#d )a!e Cont#act
In a "or'ard sale contract the i%&orter enters into a
transaction to bu! "orei#n currenc! "ro% the Ban6 at the
&redeter%ined rate to &rotect hi%sel" "ro% the e;chan#e
>uctuation at the date the &a!%ent.
0A)
International Accountin# Standards
0FR)
International .inancial Re&ortin# Standards
0FR0C
International .inancial Re&ortin# Inter&retation Co%%ittee
9oan !o""e" and *#o/i"ion"
A%ount set aside a#ainst identi8ed and &ossible losses on
loans, adances and other credit "acilities as a result o" their
beco%in# &art! or 'holl! uncollectible.
Ma#1et Ca*ita!i"ation
Nu%ber o" ordinar! shares in issue %ulti&lied b! the %ar6et
alue o" share as at the !ear end.
:et 0nte#e"t 0nco'e -:00.
Net interest inco%e is the di<erence bet'een the interest
earned on assets and interest e;&ensed on liabilities.
:P9" to #o"" Ad/ance";9oan"
Re&resents the in"ected &ort"olio o" the ban6 and is
calculated b! diidin# the total non2&er"or%in# loans b!
#ross adances.
:on Pe#%o#'in5 9oan<),="tanda#d Cate5o#$
Dhere %ar6u&?interest or &rinci&al is oerdue b! E1 da!s or
%ore "ro% the due date.
Universty of sargodha (Sub campus ian!a"i#
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:on Pe#%o#'in5 9oan<Do,=t%,! Cate5o#$
Dhere %ar6u&?interest or &rinci&al is oerdue b! /,1 da!s
or %ore "ro% the due date.
:on Pe#%o#'in5 9oan<9o"" Cate5o#$
Dhere %ar62u&?interest or &rinci&al is oerdue b! one !ear
or %ore "ro% the due date and 7rade Bill $I%&ort? E;&ort
or Inland Bills( are not &aid?ad4usted 'ithin /,1 da!s o" the
due date
.
Re*o ; Re/e#"e Re*o
A re&urchase a#ree%ent, or re&o, is a short ter% "undin#
a#ree%ents 'hich allo' a borro'er to sell a 8nancial asset,
such as ABS or #oern%ent bonds as collateral "or cash. As
&art o" the a#ree%ent the borro'er a#rees to re&urchase
the securit! at so%e later date, usuall! less than F1 da!s,
re&a!in# the &roceeds o" the loan. .or the &art! on the other
end o" the transaction $bu!in# the securit! and a#reein# to
sell in the "uture( it is a reerse re&urchase a#ree%ent or
reerse re&o
.
Ret,#n on E+,it$ -R7E.
Re&resents the ratio o" the current !earGs &ro8t aailable "or
distribution to the 'ei#hted aera#e shareholders e:uit!
oer the &eriod under reie', calculated b! diidin# the net
&ro8t $&ro8t a"ter ta;( to the aera#e e:uit! $be"ore sur&lus(
"or the &eriod.
Ret,#n on A""et" -R7A.
Indicator o" &ro8tabilit! o" the business relatie to the alue o" its
assets, calculated b! diidin# the net &ro8t $&ro8t a"ter ta;( to
the aera#e total assets "or the &eriod.
)R7
Statutor! Re#ulator! Order
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INTERNSHIP REPORT
>0(7R
Karachi Interban6 O<er Rate
3aR
=alue at Ris6 is an esti%ate o" the &otential loss 'hich
%i#ht arise "ro% %ar6et %oe%ents under nor%al
%ar6et conditions, i" the current &ositions 'ere to be held
unchan#ed "or one business da!, %easured to a con8dence
leel o" EH.I &er cent.
?ei5hted A/e#a5e Co"t o% De*o"it"
9ercenta#e o" the total interest e;&ense on aera#e de&osit
of t'e ban( for t'e period.
6nne-es
Universty of sargodha (Sub campus ian!a"i#
$2
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Universty of sargodha (Sub campus ian!a"i#
$1
INTERNSHIP REPORT
Universty of sargodha (Sub campus ian!a"i#
%0
INTERNSHIP REPORT
Universty of sargodha (Sub campus ian!a"i#
%1
INTERNSHIP REPORT
Universty of sargodha (Sub campus ian!a"i#
%
INTERNSHIP REPORT
Universty of sargodha (Sub campus ian!a"i#
%!

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