MCB Internship Report Summary

INTERNSHIP REPORT
ON
MUSLIM COMMERCIAL BANK

Ltd.
ABDUL AHAD
MBD-10-45
MBA (Finance)
Session-2010-2013
Department of Business Administration

Bahauddin Zakariya University
PREFACE
Internship Report on MCB Ltd.
It is the requirement of the MBA course Bahauddin Zakariya University, Multan,

Sub-Campus D.G.Khan that all students of MBA have to spend six or eight weeks in any
organization to get practical exposure and to get familiarized with the ways to live in the
organizational environment which is dramatically different from the educational
environment. That two months period called Internship Period , if spent properly and
sincerely, enables the students to be more confident, more knowledgeable, more responsible
and, above all, more committed to its work in the practical field. I have also been assigned to
do internship of six weeks period in MCB Gulshan Market Branch, Multan.
It has enabled me to understand the practical scenario and sharpen our
decision making power and utilizing the resources in an effective manner, so that our
resources generate maximum profit.
In preparing this report, I have put all of my best efforts and tried my level best to
give maximum knowledge. Despite of my all the coherent efforts, I do believe that there will
always be a room for improvement in the efforts of learner like me.
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DEDICATION
I would like to dedicate this accomplishment offline to my beloved and caring
parents and to my teachers with the support of whom I am standing at this step
of my life stairs.
ACKNOWLEDGEMENT
Page III
In the name of ALLAH, the most kind and most merciful.

First of all Im grateful to ALLAH ALMIGHTY, who bestowed me with health, abilities and
guidance to complete the project in a successful manner, and without HIS help I was unable
to perform this task.
I would also like to thank Mr. Muhammad Zubair (Branch Manager of MCB) and Mr.
Khuram Qadeer (Operations Manager) for providing me the opportunity to have an excellent
learning experience during my internship. Their critical comments on my work have certainly
made me think of new ideas and techniques.
TABLE OF CONTENTS
Executive Summary
1 Overview of the MCB Bank LTD
Page IV
1.1 Objective of Studying the MCB
2 Brief History
2.1 Brief history of MCB Bank LTD
2.2 Mission Statement
2.3 Vision Statement
2.4 Values
2.5 About MCB
3 Organizational Structure
11
3.1 Board of Directors
11
3.2 Organizational Structure of MCB Bank
12
3.3 Organizational Structure of MCB Branch
13
3.4 Departments in MCB
14
3.5 Circle Office

4 Products & Services offered by MCB
16
16
4.1 Islamic Banking
16
4.2 Remit Express
16
4.3 MCB Lockers
17
4.4 Online Banking
17
4.5 MCB Full Day Banking
17
5 Different Operations of MCB Bank Ltd
19
5.1 MCB enhanced saving account
19
5.2 Basic Account
19
5.3 Bill Payments
19
5.4 Current Account
19
5.5 Saving Account
19
6 Different Departments operated in MCB Branch Banking
21
6.1 General Banking Department
21
6.2 Account Department
21
6.3 Current Department
21
6.4 Clearing Department
22
6.5 RTC Department
22
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7 Different Types of Accounts with Target Market
27
7.1 Importance of Deposits for Bank
27
7.2 Types of Accounts in MCB
28
7.3 Current Deposit or Demand Deposit
28
7.4 Saving Account
29
7.5 Khanam Bachat Scheme
31
8 Structure of Marketing Department
35
8.1 Marketing Operations of MCB
36
8.2 Functions of the Marketing Department of MCB
37
8.3 Marketing Strategy of MCB Bank
38
8.4 Marketing MIX
39
8.5 Success & Failure of the different products in the market with reasons
45
8.6 Failure Products of the MCB Bank
45
8.7 Major competitors of the organization
46
8.8 Future Prospects of the organization
46
8.9 Short-falls/Weaknesses & critical analysis of the Marketing Department
48
8.10 Customer services department
49
9 Critical Analysis
50
9.1 SWOT Analysis
50
9.2 Strengths
50
9.3 Weaknesses
51
9.4 Opportunities
52
9.5 Threats
52
10 Conclusion & Recommendations
53
11 References
55
12 Annexes
56
12.1 Annexure I
57
12.2 Annexure II
58
12.3 Annexure III
59
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EXECUTIVE SUMMARY
This report consists of objectives to studying the organization, overview of the organization
which tells about the Consumer and commercial banking in Pakistan to find out the
challenges & opportunities faced by banking industry. In this report comparison of consumer
financing products of local and foreign banks have also been done and the problems faced by
borrowers and lenders have als. Consumer finance was backed by the SBP to give boost to
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economic.
The banking structure in Pakistan comprises of the following types
State Bank of Pakistan
Commercial Bank of Pakistan
Exchange Banks
Saving banks
Cooperative banks
Specialized credit institutions.
The state bank of Pakistan is the Central bank of the country and was established on July 01,
1948. The network of bank branches now covers a very large segment of national economy.
The State Bank of Pakistan issues the shares of these periodically. Bank employees and other
common people can also purchase these shares and earn profit.
To conclude, it may be said that MCB Bank is a good service bank with wide nation wide
network. It addresses future challenges and progress towards the achievement of its vision of
being providing the complete range of financial products to all segments under one roof. Yet
efforts are being made to achieve new levels of excellence. MCB Bank has a distinct edge
over the others, which allows it to cater to the needs of large corporate as well as smaller
businesses and individuals.
1. Overview of the MCB Bank Ltd.

MCB, having a large network over 1100 branches, is proudly operating all over the nation.
Not just this, along with more than 1100 branches, we are constantly expanding and
improving our wide branches network day by day in current era. MCB is one of the leading
banks of Pakistan with a deposit-base of about Rs. 290 billion and total assets of around Rs.
400 billion. MCB has earned the reputation of a solid financial institution over the 60 years
of success and development. We always concentrate on growth through improving service
quality, investment in technology and people, utilizing our extensive branch network and
developing a large and stable deposit-base.
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We make every effort to exceed customers expectations through superior and wide array of
financial services and solutions. We thrive on the challenge of understanding their needs and
aspirations, both realizes and unrealized, so that we can satisfy them with surety and security.
Leadership is the ability to affect human behavior for achieving a designated goal. Immense
desire and strong will power make affect leaders. MCB is the leading entity of the country
that has always been at the forefront economical, technological, financial growth and
stability.
Since our inception till now, MCB has portrayed such persons of a leader on which we are
proud. In the past years, our skills, our commitment and our dedication not only helped us
succeed, but also gave sustainability to our personality; we are the players in the field of
economy and always try to excel and achieve our goals efficiently and effectively.
MCB has marked a trail of success in which there are many astounding accolades that makes
your trust and our commitment, a winning combination. Our valuable customer-base of over
4 million has always trusted and believed in us. Thanks to our combined vision, we have
been able to maintain the previous accounts and also the customer-base over the years. We
also believe in forging and maintaining the relationships with our customer. MCB engaged in
the business of wholesale, commercial & SME, Consumer, Islamic banking, investment
banking and treasury & Capital Markets.
The bank also offers Asset Management and insurance Services to its customers
through its subsidiary and affiliated companies.
The bank operates through more than 1100 branches including 8 Islamic banking branches.
The bank has one of the largest ATM Network in Pakistan covering 49 major cities with over
300 ATM locations.
Strong management team under the leadership of Mr. MUA Usmani who have over 25 years
of banking experience.
Only bank in Pakistan that has been awarded 7 Euromoney awards for Best Bank in Pakistan.
Recipient of five consecutive Asia Money Awards for best Domestic Commercial Bank.
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The Bank currently has over 17000 employees, including 10210 permanent staff.
1.1 Objective of Studying the MCB Bank Ltd.
As a part of academic requirement for completing BBA (Hons), the students are required to
under go six to eight weeks internship with in the relevant organization.
The inspiration of studying the Banking industry especially MCB BAK LTD Pakistan is
because of different factors, as it is a good example of change management to analyze the
present of solution delivery department in the MCB Bank, basically to find out the
effectiveness of current system.
The basic purpose to get an application of knowledge course work to serve the purpose of
acquainting with practical knowledge of the discipline of banking administration.
Strong and broad consumer vision is the best example of the study the undeniable fact that
MCB Bank is just around the corner is not a testament to convenience, but inspiration. The
fact that MCB Bank have more than 1100 branches, stretching form the smallest towns, and
villages to the countrys largest cities, is proof of ever-expanding loyalty.
MCB Bank stability has stood the test of time as the bed rock of vast variety of product lines
for million of customers. A state of being so, well-empowered, well-equipped to accept
challenges of life with good spirit to invest in new products and services in order to achieve
satisfied relationship with million of customers.
To understand the marketing activities of the country, MCB Bank provide communicative
and friendly environment for their customers and stakeholders as MCB Bank is the largest
Bank of Pakistan and suitable example of banking management.
2 - Brief History
2.1 Brief history of MCB BANK LTD.
MCB was founded by ISFHANI and ADAMJEE families in Calcutta on July 9, 1947. MCB
is not an overnight success story rather good track of services are responsible for the leaps
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and bounds progress. After the partition of the Indo-Pak Subcontinent, the bank moved to
Dhaka from where it commenced business in August 1948. In 1956, the Bank transferred its
registered office to Karachi, where the Head Office was located. Thus, the bank inherits a
52-year legacy of trust in its customers and the citizens of Pakistan.
2.1.1 Nationalization
In January 1974, the Government of Pakistan nationalized MCB following the banks
(Nationalization) Act 1947, Premier Bank Limited merged with MCB.
2.1.2 Change of Ownership
The performance of MCB was badly affected by bureaucrat government. In January 1974,
MCB was nationalized by Bhutto Government following the bank act 1974 subsequently in
June 1974 Premier Bank Limited merged with MCB.
2.1.3
Privatization
In the late 1990 after long period of time newly established Democratic Government of
Pakistan have decided to sell nationalized assets of country for better utilization. In April
1991, MCB became Pakistans first privatized bank. The government of Pakistan transferred
the management of the Bank to National Group, a group of leading industrialists of the
country by selling 26% shares of the bank.
In terms of agreement between the Government of Pakistan and the National Group, the
group, making their holding 50% has purchased additional 24% shares. Now, 25% is
purchased by the Government, which shall be sold in the near future.
A wave of economic reforms swept Pakistan in the late 1990, introducing the need for
privatization of state owned banks companies. In April 1991, MCB became Pakistans first
privatized bank. The government of Pakistan transferred the management of the Bank to
National Group, a group of leading industrialists of the country by selling 26% shares of the
bank.
In terms of agreement between the Government of Pakistan and the National Group, the
group, making their holding 50% has purchased additional 24% shares. Now, 25% is
purchased by the Government, which shall be sold in the near future.
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2.1.3.1
New Millennium
MCB besides being money financial organization have rendered invaluable services in the
economics and social developments of our country. MCB today, represents a bank that has
grown with time, experience and Pakistan. A major financial institution, in scope and size, it
symbolizes a fully-grown tree. Evergreen, Strong, and firmly rooted.
2.1.3.2
Philosophy
MCB relies on strong, lasting relationship with its customers and on its reputation for
stability and security for its continued process. Its philosophy has been to adopt steady
course. It has pursued small, less risky loans to consumers and business, and shied away from
risky loans. MCB extends its philosophy to its technology strategy but not perusing
technology for technologys sake. However, MCB learns from the mistakes of others
especially in consumer banking. We let others get in first, take the hit, and find out the
flows. Said MCB officials - and has installed efficient and effective system for processing
and delivering information.
The board of directors has the authority in guiding Bank affairs and in making general
policies. Some directors are the personnel of the MCB Bank and others are successful
businessperson and executives of other major organization. Nineteen members are included
in board of directors.
2.1.4
Mission statement
MCB; Banks team of committed professionals is devoted to maintaining long term Customer
relationships through outstanding service, easy transactions and convenience.
2.1.5
Vision statement
Challenging and Changing the Way you Bank.

2.1.6
Values
Trust: We are the trustees of public finds, and serve with integrity & commitment.
Ethical behavior is of critical importance to us. We adopt full compliance with internal
and external policies and procedures, operating within the legal framework.
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Customer Focus: We continuously seek to exceed our customers expectations, forging

and maintaining long term relationships
Innovation: We strive to be the market leaders in innovative products and services
offering customized financial solutions with flawless execution
Teamwork: The diversity of our people is our strength. We inspire and challenge each
other - working together to achieve synergy
Achievement: Our people are our most valuable asset. We are committed to a result
oriented culture. Our goals are clear and merit is the only criterion for reward
Social Responsibility: As responsible citizens we contribute to the social welfare of the
community
2.1.7
About MCB:
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
also exceeds their expectation.
They strive to achieve excellence by ensuring that every moment of their time is spent in
adding value, making sure that they do things right, first time, and every time. With the quest
of quality MCB has always taken initiatives 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.
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
multi national concerns. MCB is also catering to the growing middle class by providing new
asset and liability products. MCB Bank Limited (Formerly Muslim Commercial Bank
Limited) has a solid foundation of over 63 years in Pakistan, the Bank provides 24 hour
banking convenience with a network of over 1000 branches, the largest ATM network in
Pakistan over 450 ATM locations in the market.
2.1.8
MCB Today
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MCB is one of the leading banks of Pakistan with a deposit base of Rs. 368 Billion and total
assets over Rs.500 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.
The Bank has a customer base
Over the years Muslim Commercial bank fostered strong bonds with its customers. MCB
understands them; their needs. They feel comfortable with MCB its their bank it responds to
them; listens to them; partners with them; grows with them. That is why it is one of the
leading commercial banks of the country, providing a wide range of modem banking
services. At present, the banking network consists of over 1000 branches along with
controlling offices known as Area Head offices and Regional Head offices. These controlling
offices are responsible for the smooth operation of the bank on National & international
levels. The entire financial and operational objectives are achieved with the Human
Resources strength over 12000 employees. The bank is known as the major credit provider,
best place of working and paymaster in the financial (money market) of the country. Over the
past few years, MCB's profits have been hit by the need to increase provisions coverage and
restructuring costs associated with the downsizing of the workforce and branch network,
whilst there is some need to boost provisions, these charges (necessary to bring the bank back
into shape) are largely over. It has also slowly received permission from the SBP to shut
down a number of unprofitable branches.
2.1.9
MCBs 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
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.
Page XIV
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 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, realignment of back-end processing to increase productivity, enhancement of customer service
Page XV
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 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.
2.1.10Branches network
Page XVI
Page XVII
MCB Annual Report 2011, MCB Building I.I Chundrigar Road, Karachi.
MCB Internal Portal website, http://home.mcb.com.pk
3 - Organizational Structure
3.1
Board of Directors
The board of directors has the authority in guiding Bank affairs and in making general
policies. Some directors are the personnel of the MCB Bank and others are successful
businessperson and executives of other major organization. Ten members are included in
board of directors, see in a list.
Mian Muhammad Mansha
Chairman and chief Executive.
Mr. Tariq Rafi
Vice Chairman
Directors:
Ten directors are:
1)
Mr. S. M. Muneer.
2)
Sh. Mukhtar Ahmed
3)
Mr. Muhammad Arshad
4)
Mr. Shahzad Saleem
5)
Mr. Raza Mansha
6)
Mr. Sarmad Amin
7)
Mr. Umar Mansha
8)
Dr. Aleem Mehmood
9)
Mr. Tanveer Ali Agha
10)
Dr. Najeeb Samie
Page XVIII
ORGANIZATIONAL STURCTURE OF MCB.
Board of
Directors
President of Executive Board
(Executive Chief)
Secretar
y
Divisional Chiefs / SEVP
Total wings = 12
Business Heads
Total wings = 04
General Manager
Total wings = 16
Regional Operations
Manager
Regional Head
Total wings = 42
Total wings = 42
Branch Manager
Branch Operational
Manager
Deposi
t Dept
Clearing
Dept
Remittan
ce Dept
Bills
Dept
Advance
s Dept
Financ
es Dept
Foreign
Exchan
ge Dept
3.3ORGANIZATIONAL STURCTURE OF MCB Branch.

Page XIX
Store Room
Branch
Remittances
Dept.
Manager
Operati
on
Manage
r
Imports
FCY
Accounts
Customer
Service Desk
Clearing
Dept.
Accountant
General
Ledger
Foreign Trade
Exports
Utility
Dept
Lockers
Dept.
Advances
Strong Room
Payments
Computer
Operator
Receipts
Others
Cash Counters
Office
Boy
Page XX
3.4
Departments in MCB
Brief functions and responsibilities of departments at MCB are as follows.

3.4.1
Human Resources and legal group:
Recruitment.
Training.
Transfer & posting.
Promotions.
Disputes.
Staff loans.
3.4.2
Banks operations group:
Policy.
Premises.
Capital & operating expenses processing.
Return & consolidation.
Reconciliation.
Product sales.
Relationship co-ordination.
Service standards.
Customer complaints.
3.4.3
Financial Institution & overseas group:
Inter-bank exposure.
Forex licensing.
3.4.4
Financial control & Audit group:
Audit & internal control.

Budgeting & planning.
Monitoring of expenses.
Page XXI
Financial reports.
3.4.5
Credit & risk management group:
Credit proposal evaluation & analysis.

Project financing.
Monitoring of credit portfolio of bank.
3.4.6
Corporate banking group:
Placement of all multi-national & public sector companies.

3.4.7
Consumer banking group:
Penetration in high net-worth customers.

Earning increase.
Customer retention.
3.4.8
Commercial banking group:
Conduction of normal retail operations.

3.4.9
Treasury & FX group:
Funds management.
Investment management.
3.4.10 Assets management group/ Fraud control group:
Classified portfolio looks after.
Special assets management.
Restructuring / Rescheduling.
Out of court settlements
3.4.11 Information technology group:
ATM / CIRRUS facilities.
I.T. related franchise management.
SWIFT system.
On-line branches network look after.
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Hardware / software support.

Under the President an Executive Committee and a Credit Committee works. All the matter
of the bank join to the board of director are presented to the executive committee which is
responsible for daily operation of the bank .The request for credit exceeding the Business
Head power is approved by the Credit Committee. Under the Business Head is the General
Manager who is the incharge of the Circle Office. The General Manager leads the team of
Regional Heads and Regional Operation Managers and then the Branch Manager. At present,
there are 9 circles, 47 regions and 1100+ branches. Before privatization there were provincial
chiefs for all the four provinces. But this management now has abolished the provincial
officers and improved the efficiency of the bank.
3.5 Circle Office

The working of circle office is to control and regulate the functions of branches which are
under in its control. The functions of circle office are to mobilize the deposits and receive
reports from branches. Circle office is like a mini head office. Agents and correspondents of
MCB are in all commercial cities of the world. Circle office is divided in the following
division:
Credit Management
Audit & Inspection
Human Resource
Marketing & Development
4- Products & Services offered by MCB

4.1.1
Islamic banking
MCB Islamic banking provides Riba free and Shariah compliant solution to various segments
in a growing number of cities. With the help of shariah specialists, lawyers and professional
commercial bankers, we have the best solutions to cater to your needs in Islamic way.
4.2 Remit express
International remittances with a two-way messaging facility delivered at your door-step
within 24 to 72 hours.
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4.3 MCB Lockers

MCB providing the facility of lockers in the different capacities, that are available in
nationwide.
4.4 Online Banking
There are large networks of over 1100 online branches in the country and growing. Providing
customers with 24/7 real time online transaction facilities.
4.5 MCB FULL day banking
MCB is providing the convenience of extended banking hours from 9 to 5, even on Saturday.
To satisfy your banking needs at all at all full day banking branches across the country. Now
MCB serve their customer a wide range of services thought the day.
4.6 Virtual banking
MCB provides the convenience of banking on the internet. Whether at office, home or
traveling on to www.mcb.com.pk and enjoy 24 hour access to all your account at MCB for
the largest array of services such as inter bank funds transfer, utility bill payment, mobile top
ups and many more.
4.7 MCB call center 111-000-MCB (622)
There is not easier way to bank than the new enhanced MCB call center, which blends
innovation and convenience to provide that go beyond your expectations. MCB make sure
your banking needs are met 24/7 from the comfort of your very home are just a call away.
4.8 Personal Loan
MCB personal Loan is simply cash facility extended for personal use. It offers a fixed
installment loan that provides you access to cash instantly without any collateral. Financing
available is up to 5 years for amount up to Rs. 1 million
4.9 MCB mobile banking
Banking at your finger tips, now SMS anytime to get information regarding balance and mini
statements.(www.mcbmobile.com)
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4.10
MCB ATMs on wheel
Now not only do you get a world class banking service but we make sure of your
convenience. Our new classy mobile ATMs ensure that you are given a service closer to you
4.11
M NET
MNET is an electronic hub for ATM sharing plus other touch points. Members include 11
local foreign financial institutions enjoying ATM sharing and bureau services.
4.12
MCB Smart card
A secure instrument of payment is providing cash-free convenience. It is more than just an

ordinary debit card, offering customers the peace of mind through unmatched and convenient
services including easy bill payment, funds transfer, 24-hour cash withdrawal, balance
inquiry and unlimited shopping pleasure.
4.13
MCB Business Sarmaya
MCB business sarmaya is a running finance facility against your residential property. It
offers running finance up to 20 million with low mark up and BTF facility at competitive
rate.
4.14
Easy bill pay
Easy bill pay a solution to pay your utility and mobile phone bills. MCB ATM card or MCB
smartcard holders can easily pay their bills through MCB ATMs, MCB virtual banking and
MCB call center with security and peace of mind.
4.15
Credit Cards
A suite of classic and gold credit cards focusing primarily on providing convenience safety,
shopping pleasure and security giving a different fell to the world of credit cards through
innovative features. These unique features include i-revolve which makes the variable markup rate available to you upon revolving and is the first of its kind in Pakistan. Other ad-ons
include comprehensive insurance plans, installment plans, reward points, upfront loyalties
and much more.
4.16 Home Loan
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MCB pyara Ghar is an ideal home finance product that lets you purchase, repair or construct
your home the way you have always wanted. Financing available is up to 20 years fro
amount up to Rs. 20 million.
4.17 Car Loan
MCB car4U get you not only a car your own choice but leads you to the best in life. It is
affordable competitive mark-up, flexible conditions, easy processing and above all, no
hidden cost.
5. Different Operations of MCB Bank Ltd

5.1 MCB enhanced saving account.
MCB enhanced saving account is mean for small-savers who are looking for higher returns
on their savings. With the benefit of unlimited accessibility, it helps them to make their
savings grow.
5.2 Basic Account
Its as simple as ABC to start banking with MCB. Look after your money the simple way,
with MCB Basic Account.
5.3 Bill Payments
MCB easy bill pay offers unmatched convenience to pay your utility and mobile phone
bills.
5.4 Current Account
Discover the quick, easy, and convenient way to manage and use your money with an MCB
Current Account.
5.5 Savings Account
Start saving and discover a habit thats worth getting into.
MCB Savings Account offers you one of the most suitable ways to manage your hard-earned
money. So start saving and earning profit today.
5.6 Foreign Currency Account
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Enjoy the confidence of operating an international account, locally.

MCB Foreign Currency Account offers you the option of earning attractive returns on your
Foreign Currency Investment
5.7 Smart Dollar Account
Discover a sensible solution that helps make more of your dollar savings.
MCB Smart Dollar Account is a sensible way to maintain or grow your US Dollar deposit
across USD Current, Savings or Term Deposits
5.8 Corporate Financing
Providing access to diversified financing options, including working capital loans, term loan,
trade finance services and investment banking.
5.9 MCB Special Rupee Term Deposits
MCB special rupee term deposits offer a very attractive long-term option ease and
convenience. Tenure options are available for 3 months, 6 months, 1 year and 5 years. You
can avail a credit facility up to 75% of your deposit facility.
5.10
Business account:
An upwardly mobile way is to bring down costs on your way up.

MCB Business Account lets you build your business through the accrued savings from
discounted transaction fees, and more.
5.11
SAVINGS XTRA
Grow with MCB Xtra by saving more and earning greater profit.
MCB Savings Xtra Account offers you a wide range of attractive profit rates.
5.12
Current Life Account
The coverage you need for the life you lead.
Page XXVII
MCB Current Life gives you the peace of mind of comprehensive life insurance in a current
account and fits right into your lifestyle.
6. Different Departments Operated in MCB Branch Banking.

6.1 General Banking Department
Accounts Department
Current Department
Remittance Department
Clearing Department
Cash Department
6.2 Accounts Department
Preparation of Financial Statements for different time span
Maintain all accounts of different departments
Calculation of profit on different schemes
Calculation of markup on different advances
Preparation Different types of reports for State Bank
Daily position of cash & every account.
Matching daily summaries of all departments with ledger
6.3 Current Department
Current account
Saving account
Term /call deposits
Call deposits
Accounts Types
Single
Page XXVIII
Joint
Partnership
Private Limited
Public Limited
6.4 Clearing Department
Inward Clearing
Outward Clearing
6.5 RTC Department
6.6 Remittance
Demand Drafts (DD)
Pay Order (PO)
Telegraphic Transfer (TT)
Mail Transfer (MT)
6.7 Cash Department
Cash received voucher sheet.
Cash paid voucher sheet.
Paying-in-slip
Cheque Book
Cash balance book
6.8 Advances Department
6.9 Foreign Exchange Department
Foreign Currency Accounts
Foreign Remittances
Foreign Bills for Collection
Selling of Government Certificates
Page XXIX
Imports & Exports

6.10 Lockers Department
Basically it is a facility which is provided by the bank to its customers in order to secure
there money gold important property documents etc. before this locker concept people are
very much worried about the lose of there money, gold and important documents so now the
people are very much relax because now they use this facility quite frequently.
6.10.1 Issuance of License
It is not an easy task to get the licence of opening the locker facility in the branch for every
bank, for this purpose the bank should get permission from State Bank of Pakistan who is the
bankers bank; with out his permission no body can provide this facility to the customers.
The branch who wants to get licence he must sent a written request letter to State Bank than
the state bank officer visit this branch and see that is there enough place to provide the
licence of lockers to this branch or not? If they are satisfy they charge the licence fee from
this branch.
6.10.2 Types of Lockers
Small Size
(Rent RS 1400 per Annum) 16% FED Rs.224

(Key Security Rs.2000)
Medium Size

Large Size

6.10.3 Insurance of Lockers
Page XXX
Bank will also pay the insurance on behalf of this lockers so in case of any bank misshape
then the insurance company will accept the certain claim but it depends open the size of the
lockers
Small Size Locker Claim up to RS 500,000/Medium Size Locker Claim up to RS 10, 00,000/Large Size Locker Claim up to RS 15, 00,000/6.10.4 Renewal / Expiry of Lockers
Usually the time period of this facility is one year, at the end of the time period the bank will
ask to the client that weather he will continue this facility or not if the customer says yes then
he will pay the charges again in order to use this facility which is provided by the bank.
6.10.5 Procedure of Use of Lockers
One key is given to the customer and the other key is handed over to any bank person who is
the authorized person, and the locker is opened with both keys.
The authorized person who keeps keys He/She note following things
6
Customer name
Signatures of customers
Time of lockers operating
Account number
10 Leaving time
Customers can use this locker during the banking hour that is 9: Am to 5: PM.
6.11 Deposit Department

6.11.1 Account Opening
Page XXXI
The general banking performs various functions among them the first and most important
function is A/C opening. The process of opening an account is very simple and any body who
would like to open his account could do it easily without any difficulty.
6.11.2 Procedure for Account Opening
A) Application Form
The customer would like to open his account is required to meet with the manager or second
officer, who will give him an APPLICATION FORM specifically used for account
opening. Separate color-coded Application Form is available for each type of account. So
that a particular colored form is given to the customer to fill in for opening a related account.
B) Specimen Card
As I have already mentioned about SIGNATURE SPECIMEN CARD. This card contains
two signatures of an applicant, applicant A/c no, A/c type, branch code, title of A/c, it will be
attached with an application form. Banker uses this card at the time when he receives the
cheque; he compares customers signature with the signature on the cheque for avoiding
fraud.
Manager has every right not to accept this contract if he is not satisfied by the details
provided by the customer.
C) Account Opening Register
The manager records the necessary details into this register and allots an a/c number from
this a/c opening register. This register is maintained for each type of account and the a/c
numbers are allotted serially. After opening a saving and current account every applicants
data is entered into the computer to maintain a safe record and application form is properly
filled so that it can be available when necessary. For fixed deposit only that application form
is needed this is prepared manually, because most of the procedure of fixed deposit is done
manually.
D) Cheque Book
Cheque book is issued to the customer when the bank accepts the A/C opening application
form.
Page XXXII
E) Types of Customers
1) Individual
Only one person can operate this a/c. We can call it a personnel or individual a/c.
2) Joint
In case of joint A/c, applicant mentions that how much person will operate the A/c.
Instruction are given for joint A/c such that the account shall be operated by
a) Any one of us or survivor.
In first case if one of the a/c holders died then the other can operate the a/c individually.
b) Any two/All of us jointly.
In second case if one of the a/c holders died then the other partner cant operate this a/c
individually without having permission from the court.
3) Partnership A/C
For partnership a/c is along with the application form signature card. Other documents are
also needed such as
Registration Certificate
Agreement among partners
Commencement of business
Note
In case of addition or withdrawal of any partner a new agreement will be required.
4) Company Account
For company accounts following documents are required: Private registration
Resolution of board of directors
Commencement of business
Memorandum and Articles of Association
Page XXXIII
Balance sheet
6.12 Letter of Thanks
Bank prepares two LETTER OF THANKS one for the new customer and the other for his
introducer. This act promotes good will among the customer and the introducer.
6.13 Closing of an Account
There is no. of reasons of closing an account. Some are listed below:
If customer desires to close his account
In case of death of one account holder.
Bankruptcy of the account holder.
If an account contain nil balance or not up to the requirement of rules.
Before closing any account, bank send letter to the account hold for informing him that his
account is going to be closed. There is need an approval form higher authority to close any
account.
7 - Different Type of Accounts with Target Market

7.1 Importance of Deposits for Bank
The primary economic function of the commercial bank is to receive surplus income of
individuals, firms, public houses, institutions, companies and to honor cheque drawn upon it.
Deposits are to bank as a backbone is to the body of a man. It is the lifeblood of a bank. The
deposits of a bank are useful in many ways.
The banks borrows money from the general public by accepting deposits by offering suitable
rates of interest to them or simply promise to repay on demand.
7.2 Types of Accounts in MCB
The fund deposited in the MCB bank can be classified under the main heads:
Current or demand deposits
Saving deposits
Page XXXIV
Fixed or term deposits

Call deposits
7.3 Current Deposits (Or) Demand Deposits
Current deposits are those which are payable to bank whenever demanded by the
customer.
Bank does not pay any profit on current deposits.
There are of different scheme of saving deposits, which are classified under different
duration purpose and rate of interest.
Rules for Current Account
Current a/c holder opens Current Accounts on proper introduction only.
However,
introduction of a PLS Saving Account holder of repute may be accepted at the discretion of
the manager.
A) Minimum Balance
A sum is not less then RS. 1,000/- in cash as initial deposit is required for opening a current
account and the same may be maintained as minimum average running credit balance.
B) Profit
No profit will be paid on credit balances held in current accounts.
The bank reserves the right to allow opening of current a/c at its description.
All deposits and withdrawal from a current a/c will take place only at the branch where
the account is being maintained.
Current a/c cannot be overdrawn, except by prior agreed agreements with the bank.
The correspondence relating to current A/Cs should be addressed to manager of the
branch where the account is being maintained.
Page XXXV
A distinctive number will be allotted to each current account and shall be quoted on all
correspondence relating to the respective account and at the time of making deposits and
withdraws
C) Issuance of Cheque Book
The Cheque book is issued against the valid requisition slip signed by the account holder as
per signature provided by the bank. The account holder can draw sums from his account by
means of cheque supplied to him by the bank for that particular account.
In drawing
cheques the amount in words and figures should be written distinctively and the cheque
should be drawn in such a way as to prevent the insertion of any other word or figure.
Account holder should take well care of the cheque books issued to them. The account
holder will pay excise duty of Rs.4 per leaf to the government.
7.4 Saving Account
Saving accounts are opened on proper introduction with sums of credit balance within certain
limit for individual (single, joint) institutions, companies, educational institutions etc.
MCB has introduced various schemes under saving a/c,
PLS ACCOUNT
CAPITAL GROWTH SCHEME
MAHANA KHUSHALI SCHEME
KHANM BACHAT SCHEME
KHUSHALI BACHAT ACCOUNT
MALA MAAL SCHEME
SAVING 365 ACCOUNT
Profit and Loss Sharing Account
Page XXXVI
PLS saving is account having a running minimum credit balance of RS. 1,000/- would be
eligible for sharing profit/loss of the bank. The bank would be within its rights to make
investment of credit balances in the PLS saving accounts in any manner at its sole discretion
and to make use of the fund to the best of its judgment in the banking business under the PLS
system.
Withdrawals
Withdrawals from PLS saving account are allowed not more than 8 times in a calendar month
and for a total amount not exceeding RS. 15000/- is without the approval of bank manager.
For withdrawal of larger amount, 7 days notice in writing is required to be given.
Profit/Loss
The profit/loss will be credited/debited on the basis of its net working results at the end of
each half-year. Calculation of products on PLS saving A/c will be made for each calendar
month on the lowest credit balance of an account between the close of business on the 6th
day and the last day of the month. If the balance is less than Rs.100/- the product will be nil.
Rules for PLS

Account holder can only withdraw sums from his account by means of cheques supplied
to him by the bank for that particular account.
Post dated and stale cheques shall not be paid.
The bank reserve to itself the rights to close any account without previous notice any
account which has not satisfactory account credit balance.
If the account holder withdrawals the money under 7 day notice, the profit loss earning
products will be computed on the monthly minimum balance. Zakat is deducted every
year on non-exempted accounts.
7.5 Khanam Bachat Scheme
Page XXXVII
Target Market
Individuals planning to save funds for education & marriages of their young sons
/daughters.
Individuals interested in long term deposits.
Individuals in low class middle group.
Individuals showing confidence in Banks long term schemes than schemes of similar
maturities offered by others.
The loving parents that want best for their children.
Deposit Amount
We will have to deposit Rs 1000 on monthly basis t the time birth of your baby or at later
stage. It will continue for up to 10 years without making any withdrawal.
Conditions
The account can be opened singly or jointly.
Account in the name of miner can be operated by mother, father or jointly as guardian.
No advance can be extended against a minor account.
If anybody withdraws prematurely then profit will be calculated on prevailing PLS
account.
The bank reserves the right to refuse any depositor in the scheme without giving any
reason.
This account can be opened in any MCB branch.
Interest
The interest is given on yearly basis.
Tax & Zakat will be deducted according to rule at the time of maturity and payment.
Page XXXVIII
7.6 Mahana Khush-hali Scheme
Target Market
Individual interested investing for five years saving schemes.
Individuals who want monthly return on investment.
Middle class income group.
For the persons residing abroad and family in Pakistan.
For retired persons who want regular monthly return on investment.
Conditions
Minimum amount required is Rs. 25000 and Maximum is Rs 1 million.
This scheme can be adopted by individuals (Single or Joint) in their names.
This certificate will mature after 5 years.
Interest
The bank will give profit on monthly basis.
Zakat is deducted on payments and profit according to government rules.
Services
We 7 our nominee can collect cross pay order.
Profit amount can be send to you by postal money order & demand draft.
Profit will be paid from that branch where you have opened Khush-hali Account.
If a customer has a saving or current account in this bank then profit can be deposited in
that account.
Page XXXIX
The following table gives the monthly returns on various amounts, based method of
calculation.
AMOUNT (Rupees)
MONTHLY PROFIT Rs.
1,000,000
10,830
500,000
5,416
100,000
1,083
50,000
541
25,000
270
(Source: MCB Internal Portal website, http://home.mcb.com.pk)
In Case of Premature Encashment

The following rates of profit will apply:
If the certificate is held for less then 90 days
No profit
If the Certificate is held for 3 months but less than 6 months
PLS rate
If the Certificate is held for 6 months but less than 1 year
PLS rate
If the Certificate is held for 1 year but less than 2 year
PLS rate
PLS rate
PLS rate
PLS rate
7.7 Khush-hali Bachat Account

Individuals who want to pay dues of insurance, HBFC& installment.
Individuals living abroad but their families are in Pakistan.
Busy individuals who dont have time to pay their dues monthly.
Special Incentives
Page XL
Return is calculated on daily average balance.

Profit is paid half yearly.
It can be operated at mostly all the branches of MCB.
7.8 Capital Growth Certificate
MCB has a risk-free return scheme by which your capital can grow to nearly double the
amount in just a few year time. All that is required is a minimum amount of deposit. At the
end of the stipulated period, the bank returns close to twice as much.
Target Market
Individuals interested in medium term saving schemes.
Individuals of middle income class group.
Individuals keeping excessive balance in current accounts.
Individuals interested to save fund for lump sum, education & marriages.
Individuals seeking protection against increasing inflation rate.
Conditions
Minimum deposit will be Rs 10,000 with no limit for maximum.
Time span is minimum five years can be expanded to 5 years.
Interest
Initial Deposit
Payment up to maturity (approx.)
(Rupees)
(Rupees)
10,000/-
20,000/-
50,000/-
100,000/-
100,000/-
200,000/-
1,000,000/-
2,000,000/-

In case of premature encashment of certificates, the depositor will be given PLS Saving
Accounts profit rates declared by the bank for that particular period.
Depositors will be required to fill in Account Opening Forms.
Page XLI
7.9 Fixed deposits

Fixed deposits are those deposits which are by the bank under the conditions that they
will not be payable on demand but will be payable under fixed or determinable future
time date.
8 - Structure of Marketing Department of MCB Bank Ltd.
Business Head
(EVP)
National Marketing
Head
(SVP)
Regional Head
Marketing
(AVP)
Marketing
Managers
Marketing
Officers

The marketing department of MCB bank is very integrated. It is well structured as shown
in the hierarchical chart. The marketing department is based in head office. It is consisted
of highly professional people .it is mix of those people who got promotion from the sales
and some are inducted from the professional market of banking.
8.1 Marketing Operations of MCB
Page XLII
MCB marketing operations are very successful the reason is that, MCB has adapted an
aggressive marketing growth. MCB having different Marketing activities for different
segments of the market.
MCB marketing department is always ready for creative and innovative promotional
activities. It includes building an identity for the organization and brand, managing
advertising campaigns, event sponsorships, media relations (newspaper coverage, press
releases, press conference before launching etc), point of sale material preparation
(brochures, tariffs, flyers etc), website management. The media used are as follows
8.1.1 TV Ads
MCB television commercials have received a lot of appreciation from both their valued
customers and advertising industry professionals in Pakistan. The ads are vibrant and
colorful, conveying a sense of excitement and empowerment. MCB has always tried to
deliver truthful and attracting advertising to its target audience.
8.1.2 Internet
MCB use to promote its products through its own websites and also rent space on other
popular websites like Yahoo & Google.
8.1.3 Outdoor
MCB spends a big budget on its outdoor advertisement it includes billboards, banners and
streamers campaigns. Especially on the occasion of new city or cluster launch stall and float
activities are arranged.
8.1.4 Sponsorships
MCB continuously get involve in event sponsorship of local, national and international
scope. Popular sponsorships are of cricket matches of international scope.
8.1.5 Press releases
MCB is also continuously informing the masses about their latest developments and projects
through press releases.
Page XLIII
8.1.6 POS Materials

MCB has designed attractive brochures, flyers, vinyl and other POS material for their
customers. These brochures contain all the necessary information about their package deals
and tariffs. Hence making it easier for the people to know about the general prices and
services offered.
8.2 Functions of the Marketing Department of MCB

There are different functions of marketing department, which are involved for the best
marketing growth of the MCB, in Pakistan. Policies are consistent and persistent due to
unstable political Government and military interventions. Every one or second year, new or
amended policies are in place. In such a highly unstable and unpredictable financial
environment, the role and responsibility of marketing team become very important.
These functions are as follows;
Every year, there is a corporate objective of MCB bank. It is both strategically as well as
financial. As per the objectives set the marketing team develops or design marketing
strategies to meet these commercial and strategic objectives.
The research conducted is analyzed and used to develop products
If there is a new situation as per the new need in financial sector the marketing team adds
new line extension in the product or launches new products

Working is done to identify the brands, images, value, brand contract and position
New strategies are made increase the market share of consumer finance as well as
commercial finance.
New campaign on media, net and on branch are designed
New broachers are designed printed and circulated in the branches
As per the new situation due to the increasing interest rate, MCB has also increased
interest rate and its offerings on the saving accounts.
Develop & execute regular promotions
Brand Management
Ensure successful new city/product campaign launches
Page XLIV
Public Relations
International Roaming
Value Added Services
Strategic Planning & Pricing
Monitor competitor pricing and other activity and report back
Market Research
Sales Analysis
8.3 Marketing Strategy of MCB Bank

The quality and aggressiveness of the advertising campaigns indicates the level of effort to
preserve market share. For this purpose the target market for MCB is persuaded through
promotion campaigns.
Youth (offered by Student Accounts)
Business users (to expand their business offered by Business Account)
First-time MCB introduces online banking in remote and rural areas through satellite dish
system even there is no telephone exchange available in those areas. People of those areas
are being facilitated with online transaction anywhere in Pakistan.
8.4 Marketing MIX:

MCB Marketing activities of firms begin with determination of the market that they offer
their services or goods. Bank can call following factors which may affect banks market as
technological developments, legal arrangements and competition.
Product
Price
Promotion
Place
Page XLV
8.4.1 Product
Recently, MCB bank is in a period that they earn money in servicing beyond selling money.
The prestige is get as they offer their services to the masses.
Like other services, banking services are also intangible. Banking services are about the
money in different types and attributes like lending, depositing and transferring procedures.
These intangible services are shaped in contracts. The structure of banking services affects
the success of institution in long term. Besides the basic attributes like speed, security and
ease in banking services, the rights like consultancy for services to be compounded are also
preferred. Following are the few products of MCB with respect to marketing mix.
Credit Card
Visa Debit Card
MCB Car 4 u
Bancassurance
8.4.1.1 Market Penetration Strategy of MCB
Currently MCB has been adopted Market Penetration (Existing Products/Services in Existing
Markets) Businesses that find themselves in a situation that involves neither new market nor
new products are forced to grow through a market penetration strategy, a strategy that is
designed to give the business a greater percentage of market shares. This type of strategy
usually seeks to gain a competitive edge based upon one or more of the 4 Ps of marketing
product, price, place and promotion. MCB do not have the lowest price strategy in the
marketplace because its better to differentiate in another way. (Points of difference; unique
features, higher level of customer service, product warranties, performance, etc.
Current customers have already made the ultimate gesture of approval and paid money to buy
your products. A bit more persuasion and they may buy more.
The advantages of penetration pricing strategy to the MCB Bank are
Page XLVI
It can result in fast diffusion and adoption. This can achieve high market penetration rates
quickly. This can take the competition by surprise, not giving them time to react.
It can create goodwill among the early adopters segment. This can create more trade
through word of mouth.
It creates cost control and cost reduction pressures from the start, leading to greater
efficiency.
It discourages the entry of competitors. Low prices act as a barrier to entry (see: porter 5
forces analysis).
It can create high stock turnover throughout the distribution channel. This can create
critically important enthusiasm and support in the channel.
It can be based on marginal cost pricing, which is economically efficient.
The most recent product introduced in MCB by using market penetration policy.
MCB VISA Pre-paid Card
MCB Mobile Banking
MCB Credit Card
MCB Car 4 u.
MCB Bacassurance
8.4.2 Pricing Strategy

MCB adopted the skimming policy in the past. They were the market leader in past and they
introduces the new products i.e. Rupee travelers cheaque was one of the product of MCB
which later on were introduced by other competitors Banks, as well as now they want to
capture the potential customer.
The interesting thing that they have utilized the cream of market and now there is little left.
By now MCB also want to capture this market that has low purchase power and they have
defined the strategy as blend of differentiation and low cost strategy. The strategy for future
will low cost with high quality products and services.
Page XLVII
MCB should be very careful in determining their prices and price policies. Because mistakes
in pricing cause customers shift toward the rivals offering likewise services.
8.4.3 Promotion
One of the most important element of marketing mix of services is promotion which is
consist of personal selling, advertising, public relations, and selling promotional tools.
Promotion is used to provide information for the users in buying decision process. The MCB
promotions strategy is very interesting & successive. Organization uses such terminology to
assist the target population in differencing their products and to persuade potential buyers, so
that company remains as market leader
. The following objectives are achieved by promotional activities:
Awareness with the product or services.
Providing knowledge to the potential buyers.
Increasing the customers preference and response towards the product.
To make the customer ensured about the features of the product.
To judge the market feelings about the product.
8.4.3.1 Promotional Instruments Used by MCB

Television
Radio
News Papers, magazines and journals
Wall Chalking, Pamphlets
Bill Boards, sign boards and hording
Internet
8.4.4 Promotional Mix
Advertisement
Personal selling
Page XLVIII
Publicity
Sales promotion
8.4.4.1 Advertisement
Advertising is any paid form of non personal presentation and promotion of ideas, goods or
services by an identified sponsor. MCB run strong campaign on TV and radio. MCB use TV
advertising more because Pakistani people spend more time on watching TV than any other
activity. New and attractive commercials are always coming More than 70% of promotional
budget spend on TV ads and telemarketing. MCB also uses radio station like FM 101,
FM103, and PBC to reach million of people. News paper is another source of advertisement.
Famous newspaper like Jang, News, Dawn, Nation and widely circulated newspapers like
Khabrain is its target of daily promotional campaign. MCB Official website is also good
source of promotion as it offers to login their customer with their accounts and perform their
business activities at their home or office by making the transactions.
8.4.4.2 Personal Selling
Due to the characteristics of banking services, personal selling is the way that MCB prefer in
expanding selling and use of them. Personal selling occurs in two ways. First occurs in a way
that customer and banker perform interaction face to face at branch office. In this case, whole
personnel, bank employees, chief and office manager, takes part in selling as more than 1100
branches of MCB Bank are working in all over the Pakistan. Second occurs in a way that
customer representatives go to customers place. Customer representatives are specialist in
banks services to be offered and they shape the relationship between bank and customer.
8.4.4.3 Publicity
It is a non paid activity and it include;
Articles
Conferences etc.
MCB often held conferences, seminar and exhibition. A large exhibition is held in Karachi
recently where different programs were held. Articles on emergence of new technologies i.e.
mobile banking has been launched in Pakistan.
Page XLIX
8.4.4.4 Sales Promotion

It includes short time incentives either to customers or trade channels for immediate sale:
Free online charges.
Interest free loans
8.4.4 Place
The complexity of banking services is resulted from different kinds of them. The most
important feature of banking is the persuasion of customers benefiting from services.
MCB services are complex in attribute and when this feature joins the intangibility
characteristics, offerings take also mental intangibility in addition to physical intangibility.
On the other hand, value of service and benefits taken from it mostly depend on knowledge,
capability and participation of customers besides features of offerings. This is resulted from
the fact that production and consumption have non separable characteristics in those services.
Due to this reason, like preceding applications in recent years, branch offices use traditional
method in distribution of banking services. As more than 1100 branches network of MCB
Bank working in all over the Pakistan to provide the end point of sales to their customers.
8.4.4.1 Distribution Channels in MCB

MCB distribution channels have been designed to enable service delivery to fit the
customers profiles. These include physical branch and outlet structures, electronic channels
and the ATM network.
MCB propositions include general and specialist delivery channels which reflect the
understanding of customers needs in geographic distribution, pricing and accessibility.
MCB have developed a range of distribution channels to enable customers to interact with
the bank in a way that is most appropriate to their individual needs
Page L
Some of the distribution channels currently used includes:
MCB Online banking offering
MCB growing network of automated telling machines (ATMs)
MCB Telephone banking, which can be conducted through both fixed lines and mobile
systems
MCB branches and customer suites that offer comprehensive service offerings and
specialized suites for Private Banking, Priority and Commercial customers.
MCB continue to focus on new opportunities to attract teenagers and young adults as
customers. In this regard, they strive to bring accessible, affordable and simple-to-use
financial solutions to students on the campuses of academic institutions. Furthermore, it
offers a fully integrated, comprehensive banking offering with a single authentication process
providing
access
to
Domestic
Banking,
Domestic
Treasury,
E-filing,
Custody
Communications; International Banking; Foreign exchange trading; and Third Party Fund
Administrators.
Business Online facilitates approximately 10 million online transactions per month to the
value of about R300 billion for domestic banking alone.
8.5 Success & Failure of the different products of the company in the market with
reasons
The MCB is very success & market Leader organization in banking sector in Pakistan.
But it is the part of the business that some time products get maximum success in the market
& some time the product has to face the failure in the market or in other words the product
does not get success in the market, as the other products already exist.
8.5.1 Success Products of the MCB Bank
The name of different products of the company, which got success in the market, are as
follows;
MCB Credit Card
Page LI
MCB VISA Debit Card

MCB Car Loan
MCB Bancassuarrance
Rupee Traveler Cheque
8.5.2Reason of success of these products in the market
There are some good reason of the products, thats why the company got success in the
market & got maximum business in the telecom sector.
Proper Product development
The Bank market repute in the country
The best target Marketing
Good Marketing Mix
Decent Sales Management
8.6 Failure Products of the MCB Bank

The name of different products of the company, which did not get success in the market, are
as follows;
MCB PAYARA GHAR
8.6.1 Reason of failure of this product in the market
There are different main reasons of this product, thats why the company did not get success
in the market & did not get maximum business in the banking sector.
Product development was not good, as the other products of the company have.
The main reason is that, Pakistan economy condition is not so good, thats why this
product could not perform well in the market.
8.7 Major competitors of the organization
Page LII
Since the initiation of the governments privatization process in 1991, four commercial banks
have been privatized wherein MCB, United Bank, Habib Bank and Allied Bank. For the
major part of their corporate lives, these banks have remained government owned. Apart
from MCB (privatized in 1991), the three remaining banks have only been privatized in the
last three years. These four banks together accounted for 38% of the banking sector assets as
of December-2009. These banks have common advantages low cost deposit base, extensive
branch networks with deep penetration in rural and urban areas, comfortably placed in terms
of paid up capital requirement, and as a consequence higher per individual borrower capacity.
However, these benefits have come at the expense of high operational cost, with some loss
making branches maintained. MCB has had a decade lead time over other banks to improve
its operations, with most of the other banks now concentrating the efforts on improving their
branch networks and enhancing operational efficiencies.
8.8 Future Prospects of the organization
With the agenda for financial sector reforms completed, there are greater opportunities
available for diversification of corporate business. The current persistent macroeconomic imbalances have adverse impact on our major line of business- project
financing; relatively high mark-up financing rates impede identification of low-risk and
high return projects. To a certain extent, the problem of loan default is related to rather
rapid trade liberalization measures undertaken in recent years. These twin problems call
forth for greater policy co-ordination between the Government and banking institutions
to restore profitability. In this scenario, attempts to improve internal functioning of
banking institutions can only yield marginal impact on financial institutions,
profitability.
Nevertheless, existing operations of the corporation are being re-aligned to meet emerging
challenges in the banking sector. The major focus of attention will be to vigorously
implement a number of measures, which leads to an improvement in the resource position of
the corporation. A number of competitive deposit schemes, targeted to attract retail clientele,
will be soon launched. The management plans to respond to changing financial sector
dynamics by further diversifying into off balance sheet and fee-bases activities and business.
Page LIII
The current emphasis on loan recovery efforts will contribute to enlargement of resource
position of the corporation. A scheme has been recently introduced which links award of a
specified percentage from the loan amount recovered against classified advances and
promotion of officers/executives who undertook special loan recovery efforts. The
management focus on loan recovery efforts has already started to yield results. The initial
results have given impetus to intensify loan recovery measures and have also heightened
expectations for better operating performance during 2011.
The corporate commercial operations are planned for expansion by way of establishing new
sister concerns/joint ventures like a Utility Bank, Asset Management Corporation for
discounting of loans, and an Insurance company. The corporation also plans to establish a
management company, which will act as an investment advisor for floatation and
management of closed-end and open-end mutual funds.
Efforts have been instituted to further improve management information system to closely
monitor critical areas of activities. It will be very useful for bank. With complex factors
impinging on our operations, the quality of human resources has assumed even greater
significance. The corporate personnel will be equipped with necessary skills to help the
corporation excel in performance and to regain its position in the financial sectors.
A high degree of professionalism and sincerity of purpose was exhibited by both officers and
staff. MCB Bank is the first bank in Pakistan to cross Rs. 21.252 million mark in deposits to
become the largest financial institution of the country. Total deposits of the bank rose to
Rs.257.461 billion from Rs.229.341 billion in last year, showing a growth of 12.26 %.
According to my thinking, deposits will further increase in future. Loan of longer tenure
especially in the area of project finance received attention due emerging opportunities due to
liberalization of economy and privatization of commercial banks.
In the management of resources of the bank there was a qualitative and quantitative
improvement. In line with the new strategic objectives the bank has started to emphases its
role in area of investment banking and corporate sector. As a result of this, Muslim
Commercial Bank of Pakistan has initiated an ambitious and for sighted Corporate Culture
Change Program. This program has given the recommendations for establishment of
Page LIV
corporate branches in all over Pakistan, establishing Discount Services Ltd launching
credit cards and restructuring the bank structure. By doing so MCB has become highly
activated and has felt the environment of fast competition in banking sector due to
privatization and establishment of new banks in private sector. It is quite encouraging that the
bank is well informed by economic changes in the country and made himself well armed to
cope with the tough competition. But from my point of view bank should keep on adopting
innovative changes in perpetual way. For MCB Bank of Pakistan, in my opinion it should
also launch Corporate Bonds to generate the funds as many banks are doing so in the
world. Investors are attracted by MCB which is the most reputed bank in Pakistan.
8.9 Short-falls/Weaknesses & critical analysis of the Marketing Department
The critical analysis of the theoretical concepts related to practical experiences in marketing
department are not too much, because MCB is one of the major in Pakistan, that is the main
reason, MCB marketing policies are very effective for the customer growth in the country.
Yet there are some critical concepts which are analysed, these concepts are as follows;
The concept of third party contract is not effective for the employees as well as for the
organizations benefits.
The number of employees in the marketing department is very short and they face lot of
burden in their respective work, due to short numbers.
MCB is costlier to customers as compared to other new private Banks providing the
services to the ultimate customers.
Network problems and over loaded lines in rush hours which results in poor connectivity
due to that MCB branches use to go offline sometimes, thats why the marketing
department face the problem in advertising & marketing campaign.
MCB has continuously become the victim of SBP penalties. It has been fined many times
and that had great impact on good will of company.
Policies of MCB in recent are driven by competitors, MCB has adopted policies of wait
and watch.
8.10 Customer services department
Page LV
Needs of customers, in the past very few banks with monopolistic attitude were operating.
The saver/depositor was keep standing for hours to deposit his or her savings. Today the
customers are more demanding and the banks have also become more customers centric.
Now the banks have designed customer service department.
Its job is to ensure the provision of banks services as per its SOPs. Considering the
Importance of this department, MCB bank has also has instituted a customer service
department. Now there is customer service officer or manager in each branch. He keeps an
eye on the whole staff observes that how the services are being executed the branch online
services to win the customers satisfaction.
Welcome to a world of convenience with the MCB ATM 24- Hour Smart Card. It Works.
Anytime in Pakistan and abroad With an ever growing number of ATMs operating across
the nation, the MCB ATM Network is the largest and most advanced of its kind in the
country, and is part of MCBs continuing efforts to provide you with convenience that suits
your requirements most. And now the MCB ATM has gone at the forefront of technological
excellence, MCB proudly introduces MCB, MOBILE BANKING. The convenience of
accessing your account balance information and mini statements whenever you want or
wherever you may need them, with comfort and peace of mind.
MCB Mobile Banking service is available to all MCB ATM cardholders, 24 hours 365 days.
Just call our Help Line on 111-000-MCB (622) or any MCB online branch for assistance
The state of the art MCB call center is the right choice to keep you in step with your
ever
hectic schedule by providing you services relating to your account and Smart card at any
point in time.
Our well-abreast and friendly call center team is available 24 x 7, 365 days a year to ensure
that your daily financial obligations are taken care of guaranteeing you a good nights sleep.
General Inquires
Financial Services
Non Financial Services
Page LVI
MCB easy bill pay offers unmatched convenience to pay your utility and mobile phone bills
or re-charge your prepaid mobile phone accounts anywhere, anytime with security and peace
of mind. MCB is the only bank that offers you 3 convenient options of making bill payments
to PTCL, SSGC, SNGPL, KESC, Interphones, Mobilink, Paktel and U-fone. So, save your
precious time by avoiding long queues and pay your bills through MCB Easy Bill Pay. MCB
Smart Card or MCB ATM Card Holder can easily pay their bills or re-charge their prepaid
mobile phone account through the following convenient
9- Critical Analysis
9.1 SWOT Analysis
9.2 Strengths
MCB is the first Pakistani privatized bank and because of its quality management,
marketing, innovation in products and services. MCB is Successive and Market oriented.
Every year, there is a corporate objective of MCB bank. It is both strategically as well as
financial. As per the objectives set the marketing team develops or design marketing
strategies to meet these commercial and strategic objectives.
To capture the Market MCB have advantage that they have 100% online branches
network in Pan Pakistan wise.
One of the major product which helps MCB to capture the Market that they has
introduced i.e. online banking system SYMBOLS, which is an ERP of current era to
provide real time working environment.
MCB investing huge sums on Marketing development and training.
Customer default rate is lower as compared to other banks.
MCB has great advantage that they have largest ATM network in the country.
Marketing team launching new products to Meeting the challenges of latest Technology
by introducing Smart card remit express, mobile banking etc.
MCB has advantage that they have strong distribution channel as more than 1000
branches networking working in Pakistan, which cover almost every part of Pakistan.
Page LVII
MCB has captured majority of potential customers in Pakista
9.3 Weaknesses
As mentioned earlier the bank is one of the biggest banks of Pakistan. Due to the increase
in the number of branches and the volume of the business the Marketing staff is really
short.
Currently Low motivational level; non-aggressive marketing as they are approaching

penetration strategy.
Employees dissatisfaction due to ill treatment and improper reward system.
Favoritism and Nepotism in recruitment.
Interest rate is very meager.
Decision making process is very slow as proactive approach always helps to capture the
market.
MCB faces some challenges to capture the international customers because they dont
have greater number of branches abroad.
To capture the market, ATM network of MCB is the largest in Pakistan, but still some
potential areas dont have the ATM.
MCBs unique product RTC (Rupee Traveler Cheque) is useable only in Pakistan.
The bank staff has been found as less satisfied with bank policies and the recent
retrenchment in the bank has created unrest and panic.
Bank is lacking to capture the international Market to linkages for its clearances. It is
bound to use other media to facilitate its clientage.
9.4 Opportunities:
Leasing sector is growing in Pakistan for the last two to three years which provides
opportunity to MCB to go ahead in this area as well.
MCB is providing Consumer Finances at comparatively lower rates which paves a way to
grab more customers
Financing to small/medium cottage industries will definitely increase its advances and
profitability as well.
Page LVIII
Islamic Trading Based Banking can enhance the business of the bank.
Launch the more effective and modern banking online system.
The need of privatization has made people to switch to banks to satisfy their needs of
lending and borrowing. This not only increases the deposits but also the credit business.
9.5 Threats
Other private commercial bank with sound profitability is also a threat to MCB e.g. UBL,
Alfalah, HBL etc.
For the last of many years, Pakistan is facing economic and political instability which is a
big threat.
Afghan war and Iraq war has a deep effect on the economy of Pakistan, which may affect
MCB.
Foreign banks are flourishing in field of consumer financing.
People dont prefer banking culture. They mostly prefer cash transactions
Changes in government policies have affected the banking business. Still banks have to
wait to get permission of state bank. The freezing of foreign currency accounts is a vital
example of letting people not to trust on banks.
The decrease purchasing power of consumer in the current economic situation of the
country affecting the business activity speed too much and the result is the low
investment from the investors in new projects can create problem for the bank because it
is working a lot in trade.
10 - Conclusion & Recommendations.

10.1 Conclusions
MCB is a good organization for a person for his long term career workings. Overall working
and environment of the bank is very comfortable and the staff is very helpful and respectful
of each other and it still maintains a professional environment. Management of the bank is
very strong.
Page LIX
Furthermore, MCB is a leading commercial bank, a service industry. Customers and

Employees are the two arms of service industry. Satisfied employee will satisfy customers, so
the management of MCB Bank must take such initiatives to retain its employees for
maintaining & improving its goodwill through satisfied customers. (Because one satisfied
customer brings ten more customers).
Apart from the above shortfalls, the finance department is working very well. MCB growth
rate is good and it is providing excellent services in modern banking. The standard of
services & facilities is up to the mark and it is building its repute at national level. The
management of the bank is in safe hand. The bank has adopted a good strategy. The
management of the bank has given a new slogan to their employees & to the general public
as well, as Your bank for the New Millennium.
MCB is the 3rd largest commercial bank in Pakistan on most measures, offering a suite of
wholesale and retail banking products and services though its distribution network. The bank
should take benefits from its customers for the betterment of its service. The customers may
be given some rewards for their valuable ideas.
Overall performance of the bank is quite good and is working quite effectively and efficiently
but commitment, responsibility of job and hardworking always give positive results.
10.2
Recommendations
Due to the increase in the business of bank and increase workload the bank should hire
the competitive youngsters. The selection process should be more transparent.
MCB should emphasize on low cost debt financing.
MCB should minimize the rate of risk on their advances by issuing secure loans to people
/ industry, so that they can improve their credit rating as well.
The management of MCB should review the advances policy & should avoid extending
the advances.
MCB should build up international linkage & should proceed to provide services of
clearinghouse and help in clientage in their multinational trades.
Page LX
Although the bank is providing best-computerized services to the clients but the
management should also watch the internal Electronic Data Processing system. Manual
work should be minimized
The bank should introduce incentive program for their employees, which will increase
their efficiency.
MCB needs to give special attention to its non-performing loans. Because this amount
has to be written of from profit and loss accounts. Banks normally introduce new
defaulter schemes to get back at least their principal amount. The MCB authorities need
to formulate attractive remission policies in order to induce the defaulters to pay back
their dues.
The bank should provide new modernize services for attracting the customers & in return
more fee can be earned
In order to get their staff familiar with the latest banking trends all over the world, MCB
should introduce training programs, new computer oriented courses, banking seminars,
etc. This would help a lot in improving their skills up to the latest worldly standards.
To make the SYMBOL system more efficient and make sure its connectivity all the time
in order to provides more convenience to customers.
ATM machine must be maintained properly to make it more convenient for the customers
and to decrease the load of work to the employees of the bank especially in the salary
days.
11 - References
MCBs Annual Report 2011, MCB Building I.I Chundrigar Road, Karachi
MCB Orientation Booklet 2011, 2012.
Page LXI
MCB weekly business news letter, Aug 05, 2013.
MCB Online web link, http://www.mcb.com.pk
MCB Internal Portal website, http://hrms.mcb.com.pk
State Bank of Pakistan web link, http://www.sbp.org.pk
Journal of Institute of Bankers of Pakistan (IBP), Volume 78, issue 04, Oct Dec 2012.
Mr. Majid Mukhtar (AVP), Business Analyst, MCB Bank Ltd Business Head Office
Multan.
Mr. Qasim Zia (OG-II), Operations Analyst, MCB Bank Ltd Business Head Office
Multan.
12 Annexes
The structure of organogram of the branch is based on the reporting lines of the with respect
to the authorities and responsibilities.
Branch Manager, reports to Regional Head
The MCB Bank operates with the large banking system; many of these functions are
supervised by the Branch Manager of its office. Branch Manager also leads each branch
efforts to attract new accounts, calling on business firms and households in the local area. He
also helps customers as well as employees of the branch.
Branch Operation Manager reports to Branch Manager & Regional Operation Manager to all
the operational matters.
Operation Manager is responsible to monitor and execute all the operations in the branch, as
processing checks, clearing and other cash items on the behalf of customers, for handing
Page LXII
customer problems on account opening and other bank services, remittance, staff matters,
foreign exchange, loan disbursement, administration and maintenance of security system.
Credit Officer reports to Regional credit management chief and Branch Manager.
Credit officer basically helps as a backup for the processing of loans and making the detailed
proposals of each loan applicant and advises the banks management to grant any loan or not.
Chief Cashier reports to Operation Manger and Branch Manager.
Chief cashier is basically works as a cash incharge and make sure the adequate quantity of
amount should remain in the hand of branch to deal with the routine operations, to the other
branches and all the proper documentation is made to perform these functions.
Bills & Remittances officer reports to Operation Manager and Branch Manager
The key person helps to deals with inward, outward payments of the branch, and make sure
that all the instruments are working properly in the best interest of customers.
Annexure I
Organizational Structure of MCB Branch.
Page LXIII
Store Room
Utility
Dept
Lockers
Dept.
Advances
Branch
Manager
Strong Room
Remittances
Dept.
Clearing
Dept.
Accountant
General
Ledger
Foreign Trade
Exports
Imports
FCY
Accounts
Customer
Service Desk
Payments
Computer
Operator
Receipts
Others
Cash Counters
Office
Boy
Source: MCBs Annual Report 2012, MCB Building I.I Chundrigar Road, Karachi
Annexure II
Page LXIV
Annexure III
Page LXV
Branch Network
Source: MCBs Annual Report 2011, MCB Building I.I Chundrigar
Road, Karachi
Page LXVI

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INTERNSHIP REPORT

MUSLIM COMMERCIAL BANK

Department of Business Administration

It is the requirement of the MBA course Bahauddin Zakariya University, Multan,

Internship Report on MCB Ltd.

Internship Report on MCB Ltd.

In the name of ALLAH, the most kind and most merciful.

1 Overview of the MCB Bank LTD

Internship Report on MCB Ltd.

1.1 Objective of Studying the MCB

2.1 Brief history of MCB Bank LTD

2.2 Mission Statement

2.3 Vision Statement

2.5 About MCB

3.1 Board of Directors

3.2 Organizational Structure of MCB Bank

3.3 Organizational Structure of MCB Branch

3.4 Departments in MCB

3.5 Circle Office

4.1 Islamic Banking

4.2 Remit Express

4.3 MCB Lockers

4.4 Online Banking

4.5 MCB Full Day Banking

5 Different Operations of MCB Bank Ltd

5.1 MCB enhanced saving account

5.2 Basic Account

5.3 Bill Payments

5.4 Current Account

5.5 Saving Account

6 Different Departments operated in MCB Branch Banking

6.1 General Banking Department

6.2 Account Department

6.3 Current Department

6.4 Clearing Department

6.5 RTC Department

Internship Report on MCB Ltd.

7 Different Types of Accounts with Target Market

7.1 Importance of Deposits for Bank

7.2 Types of Accounts in MCB

7.3 Current Deposit or Demand Deposit

7.4 Saving Account

7.5 Khanam Bachat Scheme

8 Structure of Marketing Department

8.1 Marketing Operations of MCB

8.2 Functions of the Marketing Department of MCB

8.3 Marketing Strategy of MCB Bank

8.4 Marketing MIX

8.6 Failure Products of the MCB Bank

8.7 Major competitors of the organization

8.8 Future Prospects of the organization

8.9 Short-falls/Weaknesses & critical analysis of the Marketing Department

8.10 Customer services department

9.1 SWOT Analysis

10 Conclusion & Recommendations

12.3 Annexure III

Internship Report on MCB Ltd.

Internship Report on MCB Ltd.

State Bank of Pakistan

Commercial Bank of Pakistan

Specialized credit institutions.

1. Overview of the MCB Bank Ltd.