Session 2012-2016: University of The Punjab Gujranwala Campus

Session 2012-2016
University of the Punjab Gujranwala Campus

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Supervised By:
Signature:-------------------------------

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MCB TOWER GUJRANWALA

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Start in the name of Allah, the one who controls our destiny. Start in ALLAH name, whose
promise will never fail us. Start with ALLAH guidance, that which will never mislead me. Start
with his help that which will always suffice

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DEDICATION
The project is wholly dedicated to ALLAH Almighty who gave us the strength and wisdom to
complete our task and to beloved Holly Prophet Muhammad (P.B.U.H) who is only ideal
for ever
I would also like to dedicate to my beloved parents and teachers with their support. Whom i
standing at this step in my life. We pray that we can serve our parents and teachers as best as
we can

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ACKNOWLEDGEMENT
Allah is very kind, merciful and compassionate. Its because of all his blessing that we have been
able to fulfill our task.
We express our heartfelt gratitude to our parents and family for their prayers, moral support and
sincere wishes in completion of our work.
We are really thankful to our teachers whose guidance; suggestion encouragement remained
continuous throughout my course of study.

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EXECTIVE SUMMARY
MCB is one of the leading banks of Pakistan incorporated in 1947 MCB bank has made
significant contribution in building and strengthening both corporate and retail banking sector in
Pakistan.
This report is on my six weeks internship in Muslim commercial bank of Pakistan. MCB of
Pakistan possesses an imperative and historical importance in banking sector of Pakistan.
The main purpose of internship is to learn, by working in practical envoirment and to supply the
knowledge acquired during the studies in a real world scenario in order to tackle the problems. In
this detail analysis of the organization has been done.
Along with it, the background analysis, prevailing competition analysis the business process
analysis, internal and external envoirment of the organization have been discussed and
recommendation and suggestions for the improvement have been made wherever required.

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Table of Context
Introduction ……………………………………………………………………8
Vision statement ……………………………………………………………………12
Mission statement ……………………………………………………………………12
Core values ……………………………………………………………………13
Awards&Achivement ……………………………………………………………14
Management System ……………………………………………………………………20
Nature of Organization……………………………………………………………………26
Product and Services ……………………………………………………………………28
Introduction to report ……………………………………………………………………46
Department of MCB ……………………………………………………………………47
Department of Branch ……………………………………………………………………53
Area of Internship ……………………………………………………………………62
Financial analysis ……………………………………………………………………72
SWOT Analysis ……………………………………………………………………81
Recommendations ……………………………………………………………………85
Conclusion ……………………………………………………………………86
Bibliography ……………………………………………………………………87
Glossary ……………………………………………………………………88
Annexure ……………………………………………………………………92

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INTRODUCTION:
Over the year MCB has developed strong relationship 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 initiative bringing banking into a new arena from cash to the convenience
plastic, from branch banking to internet banking and from face to face customers interaction to
online accessibility.
It encourages diversity and treats each of its employees with fairness. It gives constructive
feedback for their continuous development and seeks suggestions from all employees for further
improvement. Its ensure that quality performance is acknowledge and rewarded and exercise
utmost responsibility in decision making with regards to its employee. Integrity of its employee
is the strength of its performance.
MCB believe in achieving their mission and vision by working together as a combine group. it
treats its colleague as its internal customer and ensures that the requirements of internal customer
focus are always met. Equipped with in-depth product knowledge and recognizing the strengths
in each individual, it strive for optimum-results from its co-workers and bringing out peak
performances by working towards common goals and objectives in today’s dynamic banking
environment.
MCB has an edge over other local banks, as it was first privatized bank. The state bank of
Pakistan has restricted the number of branches that can be opened by foreign banks, an
advantage that MCB capitalizes because of its extensive branch network.
Ten years after privatization, MCB is now in a consolidation stage designed to lock in the gains
made in recent years and prepare the groundwork for future growth. The banks has restructured
its asset portfolio and rationalized the cost structured in order to remain a low cost producer.
MCB now focuses on three core businesses namely corporate, commercial and consumer
banking. Corporate clientele includes public sector companies as well as large local and
multinational concerns. MCB is also catering to the growing middle class by providing new asset
and liability products. The banks provides 24 hour banking convenience with the largest ATM
network in Pakistan covering 30 cities with over 225 ATM location . the bank’s rupee traveler
cheques have been leaders for the past six years and have recently launched their gift cheques
scheme.

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MCB Bank limited (formerly Muslim commercial bank limited) has a solid foundation of over
50 years in Pakistan, with a network of over 900 branches, over 750 of which are automated
branches , over 225 MCB ATM in 41 cities nationwide and a network of over 12 banks on the
MNET ATM Switch.
MCB has become the only bank to receive the Euromoney award for the fourth time in the last
five years MCB won the “best bank in Pakistan” in 2005, 2004, 2003, 2001, and in 2000 the
“best domestic in Pakistan” awards. In addition, MCB also has the distinction of winning the
Asia money 2005 & 2004 awards for being “ the best domestic commercial bank in Pakistan”.
MCB offers a wide range of financial products and advice for personal and corporate customers.
You can also apply on-line for many or our online services. Customers can access their accounts
using our simple and convenient MCB virtual internet banking services.

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Historical background –
Before separation of Indi and Pak, the need for more Muslim banks was felt. And Muslims
having strong financial capacity were thinking to invest in this sector as well. This was the Idea,
which paved the way for setting up Muslim Commercial bank Ltd. Know as MCB. This was the
third Muslim bank in the subcontinent.
This bank was incorporated under companies, act 1913 on 9th July 1947 at Calculate. Butt due to
changing scenario of the region, the certificate of incorporation was issued on 17th August 1948
with a delay of almost 1-year; the certificate was issued at Chittagong. The first head office of
the company was established at Dacca and Mr. GM Adamjee was appointed its first chairman. It
was incorporated with an authorized capital of RS. 15 million.
After some time the registered office of the company was shifted to Karachi on August 23rd,
1956 through a special resolution, recently the head office of MCB has been transferred to
Islamabad in July 1999 and head office is termed as principal office.
This institute was nationalized with other on January1st, 1974. At that time it had 506 branches
and deposits amounting to Rs.1 .640 m. although MCB has a reputation of a conservative bank
but nationalized also left its effects on this institute as well and by end of year 1991 in which it
was privatized the total number of branches were 1 ,287 and deposits amounting to as high as Rs
. 35, 029 m.
When privatization policy was announced in 1990, MCB was the first to be privatized upon
recommendations of world bank and IMF. The reason for this choice was the better profitability
condition of the organization and less risky credit portfolio which made” it is a good choice for
investors. On April 8th, 1991, the management control was handed over to National group (the
highest bidders). Initially only 26% of shares were sold to private sector at RS. 56 per share

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Revolutions in MCB-
 Incorporated in Calcutta, India on 9th July 1947
 First chairman – Mr. GM Adamjee
 Head office was shifted to Dhaka in August 1948
 Head office was shifted to Karachi in August 1956
 Nationalized on 1st January 1947
 Privatized on 8th April 1991
 Fist chairman after privatization – Mr. Mian Muhammad Mansha
 Head office transferred to Islamabad 1991.

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VISSION AND MISSION STATEMENT
VISSION STATEMENT
To be a leading financial services provider, partnering with our customers for more prosperous
and secure feature.
MISSION STATEMENT
We are team of a committed professional providing innovative and efficient financial solution to
create and nurture long term relationship with our customer. In doing so, we ensure that our
stakeholder can invest with confidence in us.

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Core Values
Integrity
We are the trustee of public funds and serve our community with integrity. We believe in being
the best at always doing the right things. We deliver on our responsibilities and commitments to
our customers as well as our colleagues.
Innovation
We encourage and reward people who challenge the status quo and think beyond the boundaries
of the conventional. Our teams work together for the smooth and efficient implementation of
ideas and initiative.
Excellence
We take personal responsibility for our role as leader in the pursuit of excellence. We are a
performance driven, result oriented organization where merit is the only criterion for reward.
Customer centricity
Our customers are the heart of everything we do. We thrive on the challenge of understanding
their needs and aspiration, both realized and unrealized. We make every effort to exceed
customer expectation through superior services and solution.
Respect
We respect our customer’s values beliefs culture and history. We value the equality of gender
and diversity of experience and education that our employees bring with them. We create an
envoirment where each individual is enabled to succeed.

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Awards and Accolades
Year 2014
The asset Triple A Best Bank – Pakistan
The Asset Triple A Best Domestic Bank –Pakistan
CFA 11th Excelence Awards Best Bank of of the year 2013-Lare Bank
CFA 11th Excellence Award Most Stable Bank of the year 2013
Asia money Awards Best of the Best Domestic Bank
The Asian Bank (USA) strongest Bank in Pakistan 2014
ICAP and ICMAP 1st – BCR awards 2013 – Banking Sector
SAFA 1st Runner up- BCR 2013 in Banking Sector

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Year 2013
The Asset Triple A Best Domestic Bank –Pakistan
The Asset Triple A Best Islamic Deal
ICAP and ICMAP 1st – BCR Award 2012-Banking Sector
LK Domain Registry Sri Lanka Best Website Award
Lanka Clear Pvt.Ltd T+1 Cheaque Award
Year 2012
The Asset Triple A Best Bank Domestic Bank-Pakistan
Euromony Best Bank in Pakistan
NFEH CSR Business Excellence Award “Best Media Coverage”
ICAP and ICMAP 2nd Best Corporate Award 2012
World Finance Best Commercial Bank-Pakistan
Year 2011
CFA Association Pakistan Most Stable Bank of the Year
CFA Association Pakistan Best Bank of the Year
Euromoney Best Bank in Pakistan
ICAP and ICMAP 1st BCR Award 2010 –Banking Sector
SAFA Joint 2nd Runner-up for BCR 2010

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Year 2010
The Asian Banker Strongest Bank in Pakistan
The Asian Banker Leadership Achievement Award
MMT Best Bank Led MMT Services
ICAP and ICMAP 1st – BCR Award 2009 –Banking sector
SAFA Certificate of Merit Award for BCR 2009
Year 2009
Asia Money Best Domestic Bank in Pakistan
The Asset Best Domestic Bank in Pakistan
Year 2008
Euro money Best Bank Asia
Euro money Best Bank Pakistan
Asia money Best Domestic Bank in Pakistan
Year 2006
Year 2005
Asia Money Best Domestic Commercial Bank in Pakistan

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Year 2004
Asia Money Best Domestic Commercial Bank in Pakistan
Year 2003
Year 2001
Year 2000
Euromoney Best Domestic Bank in Pakistan

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NORMAL OPERATION OF THE BANK
TIMINGS
MCB Bank follows the rules stated by the state bank of the Pakistan.
Bank Timings 9am to 5pm
Public Dealing 9am to 5pm
Friday 9am to 1pm- 3pm to 5pm
Saturday 9am to 1pm
WORKING DAYS
Bank working days are six from Monday to Saturday

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COMPETITORS_
 National Bank of Pakistan

 Bank Al Falah
 United Bank
 Allied Bank of Pakistan
 Citi Bank
 Habib Bank Ltd.
 Faysal Bank
 Prime Commercial Bank
 ABN Amro Bank
 Saudi Pak Commercial Bank
 Indus Bank
 Soneri Bank
 The Bank of Khyber
 Bank of Punjab
 Metropolitan Bank
 Standard Chartered
 Askri Bank

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Board of Director
(As of March 27,2015)
1 Mian Mohammad Mansha Chairman
2 S.M. Muneer Vice Chairman
3 Tariq rafi Director
4 Shahzad Saleem Director
5 Sarmad Amin Director
6 Mian Raza Mansha Director
7 Aftab Ahmad Khan Director
8 Mian Umar Mansha Director
9 Dato’Seri Ismail Shahudin Director
10 Ahmad Alman Aslam Director
11 Muhmmad Ali Zeb Director
12 Mohd Suhail Amar Suresh Director
13 Imran Maqbool President &

CEO
Company Secretary
Fida Ali Mirza

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Board Sub Committees
(As of February 12, 2015)
Audit Committee
 Ahmad Alman Aslam Chairman
 Tariq Rafi Member
 Aftab Ahmad Khan Member
 Dato’Seri Ismail Shahudin Member
Business Strategy & Development Committee

 Mian Muhammad Mansha Chairman
 S. M. Muneer Member
 Mian Raza Mansha Member
 Mian Umar Mansha Member
 Ahmad Alman Aslam Member
 Mohd Sohail Amer Suresh Member
 President & CEO Member
Human Rsource & Remueration Committee

 Mian Raza Mansha Member
Risk Management and Portfolio Review Management

 Mian Umar Mansha Chairman
 Sarmad Amin Member
 Muhammad Ali Zeb Member
 Mohd Sohail Amar Suresh Member

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Committee on physical Planning & Contingency Arrangements
 Sarmad Amin Chairman
 S.M.Muneer Member
 Mian Umar Mansha Member
IT Committee
 Mian Raza Mansha Chairman
Compliance Review & Monitoring Committee

 S.M Muneer Chairman
 Sarmad Amin Member
Write Off & Waiver Committee

 Tariq Rafi Member

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Management Committee
 Imran Maqbool President & CEO
 Laqa Sarwar Group Head-Asset Rehabilitation
 M.Numan Chughtai Group Head-Risk Managemnt
 M. Rizwan Group Head-Treasury & Fix
 Muhtashim Ashai Group Head-Corporate Finance & Banking
 Salman Zafar Siddiqi Chief Financial Officer
 Kamran Rasool Group Head-Security
 Farid Ahmad Group Head-Compliance & Control
 Kamran Zaffar Muggo Group Head-Operation
 Nadeem Afzal Head- Retail Banking South
 Usman Hassan Group Head-Human Resource Management
 Zargham Khan Durrani Head-Retail Banking North
 Imtiaz Mahmood Head-Information Technology
 Syed Mudassar Hassain Naqvi Group Head- Legal Affairs
Group Head Audit & RAR

Agha Saeed Khan

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ORGANIZATION STURUCTURE

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MANAGEMENT HERARCHY
Chief
Manager
Operational Credit
Manager Department
Operation
supervisor
Officer
Cash
Clearing
Department
Teller
Deposit/
Withdrawal

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Nature of Organization
Mcb Bank limited is a banking company incorporated in Pakistan and is engaged in
commercial banking and related services. The bank’s ordinary share are listed on all the
stock exchange in Pakistan where as its Globle Depository Receipts (GDRs) representing
two ordinary share are traded on the international Order Book (IOB) system of London
stock exchange.
MCB Bank Limited is a Pakistan based company. The Bank operates in four business
segments.
 Corporate finance
 Trading and sales
 Retail and consumer banking
 Commercial banking
1. CORPORATE FINANCE
Corporate finance includes underwriting, securitization investment banking, syndications
initial public offerings (IPO) related activites ( excluding investment) and secondary
private placement.

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2. Trading & Sales
Trading and sales segment includes fixed income , equity, foreign exchange commodities
lending’s to financial institutuion and brokerage debt.
3. RETAIL & CONSUMER BANKING
Retail & consumer banking includes retail lending and deposits, banking services, private
lending and deposits, banking services and retail offered to its retail customers and small and
medium enterprises.
4. Commercial banking
Commercial banking segment includes project finance, export finance, trade finance,
leasing, lending, and bills of exchange relating to its corporate customers.
MCB is one of the leading banks of Pakistan . its deposite base of 368 billion and total
assets over Rs.500 billion. 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 of approximately
4 million a nationwide distribution network of over 1,000 branches and over 450 ATMs
in the market.
During the last fifteen years, the banks has concentrated on growth improving service
quality investment in technology and people, utilized its extensive branch network,
developing a large and stable deposit base

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Product & services:
 MCB CORPORATE FINANCING;

MCB corporate financing provides access to diversified
financing option, including working capital loans, term
loans, trade finance services and investment banking .
 Working capital loans
Based on the customer,s specific needs the corporate banks offers

a number of different refinance, pre-shipment and post- shipment
etc. tailor- made solution are developed keeping in view the uniqe
requirements of years business
 Term loans
MCB offers short to medium term finance to meet capital expenditure and short term working
capital requirements of our customers. The loans are structured on the basis ofunderlying project
characteristics and cash flows of the business.

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 Trade finance services
Under corporate banking MCB offers trade finance services that include an entire
range ofimport and export activities including issuing letters of credit (L/Cs)
purchasing export documents providing guarantees and other support services.
 Cash management
Cash management provides a wide range of value added services to large
corporations through its vast network of online branches. Our structured and
customized product enableoue our customers to realize their sales proceeds swiftly
from all over the country, supported by real-time MIS.
The basics products offered by transaction banking division are as under;
 Collection
 Payments
 Channel financing
 Local rupee drawing arrangement
 Home remittances

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MCB RETAIL BANKING
DEPOSITE ACCOUNTS:
o Current account:
MCB banks offers a variety of

current accounts to cater to the
very day transactional needs of
various customers. These accounts
ensure ease and freedom to banks
from any of the 1,100 branches
across the country. The different
accounts includes the basic
accounts includes the basic
accounts that has no minimum
balance; business account offering
free online transactions, demand
drafts, pay orders and lots more to
meet the day to day business requirements; current life account which offers the security of life
insurance free of cost; and for all the other the conventional current account.
o Saving account:
It offers a wide array of saving products

that suit short term growth & production
needs. Our saving accounts offer attractive
profits rates as well as flexibility to
transact. Saving extra is targeted for
customers having Rs.5 million deposit, 365
gold offers profit rate on daily balance
while PLS saving has a lower minimum
balance requirements. In addition a unique
products. Smart saving in an account run to
solely via a debit cart, offering a very
competitive rate to small savers.

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o Foreign currency account:
Enjoy the confidence of operating an international account, locally. MCB foreign currency
account offers the option of earning attractive returns on your foreign currency investment.
o Saving 365 gold:
MCB saving 365 gold account offers you a wide range of attractive profit rates. The MCB saving
365 calculate profits on a daily product basis and gives you the facility of unlimited withdrawals.
o Smart dollar account;
MCB smart dollar account is a sensible way to maintain or grow your US dollar deposit across
USD Current, saving or term deposits.
o Special term deposits;
With a wide range of choices and tenors, you can open one or more term deposit accounts that
best suit your current or long term needs MCB term deposits offer attractive short to mid-term
investment option with flexibility, convenience and security . With various tenor option available
customers can choose one that suits their needs, this is combined with different profit payout
option and the added facility of being able to avail credit facility against their deposits.
o Business accounts:
MCB business account lets you build your business through the accrued saving from discount
transaction fees, and more.
o Saving extra account:
MCB saving extra account offers you a wide range of attractive profit rates. Growth with MCB
extra by saving more and earning greater profit.
o Current life account:
The coverage you need for the life you lead.MCB current life gives you peace of mind of
comprehensive life insurance in a account and right into your lifestyle.
o Mahana khushali bachat.
MCB monthly khushali bachat scheme provides you with a steady every month. Just purchase a
monthly khushali certificate and you will enjoy a steady income of your total deposit every
month . Terms deposit.

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MCB bank assurance
Combining the best of banking and insurance solutions, MCB banc assurance has created a one-
stop shop for all your financial and insurance needs . whether you want to save for your child’s
education or marriage , for the security of dignity after retirements or gaining maximum return
on saving , MCB banc assurance has a plan just for you.
 Flexi life
 Life partner
 Edu care
 Dream wedding
 Capital sure
 Retire easy
 Income max
 Future assure
 Protection plan
MCB’S REMITTANCE;
Fast, secure and easy-to-use, MCB,s remittance services is an efficient way to transfer money
overseas. You can remit fund from any country to Pakistan through swift system. MCB home
remittance provides a seamless inflow of foreign remittances credited in the beneficiary’s
Account within minutes. Cash payment can also be made at our designated branches on behalf of
express money. Samba (speed cash now) and money gram, along with cash payment from other
correspondents all over the world.
MCB LOAN PRODUCTS

 Car 4 U:
MCB Car 4 U not only a car of your own choice but is also affordable with competitors mark-up
flexible conditions easy processing and above all no hidden cost.
 Business Sarmaya:
Good cash flow is the key to any successful business. MCB Business Sarmaya Offers running
finance facility against your house , flat, insuring, a steady cash flow for your business.

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 Pyara Ghar:
MCB Pyara Ghar is an ideal Home Finance from your own Bank that
lets you Purchase Renovate or Construct your home the way you have
always wanted. Having your own home was never so easy.
 Easy Personal Loan:
MCB Easy Personal Loan provide with you the financial advantage to do things you have always
wanted to but never had the sufficient funds for take that much-needed holiday. Buy a car.
Refurnish your house. Purchase a new TV. Finance a better education for your children.
 Instant Finance:
MCB instant Finance get a loan instantly at any MCB branch against liquid Collateral
competitive pricing.
MCB RUPEE TRAVELERS CHEQUE:
It is a safe and secure way to make payments nationwide. MCB Rupee Travelers Cheaque being
the market leader, is the most widely accepted way to pay cash for travel related purpose MCB
Rupee Traveler’s Cheaque were first introduced in 1993 as safe cash for traveling and travel
related purpose.

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MCB ONLINE SERVICES
 ATM:
MCB has one of the nation’s largest

ATM network with over 450 ATM’s
and still growing.
MCB ATM’s give you 24 –Hours

convenience of cash withdrawal mini-
statement utility bill payments, funds
transfer services and much more. With
MCB Mobile ATM not only do we
provide you with world class banking
services but also provide convenience.
Our innovative ensure that you are
given services close to you.
 Call Center:
The State of 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.
There no easier way to bank then the new enhanced 24/7 MCB call center, which blends
innovation and convenience to provide Banking Services that go beyond expectation. With MCB
call centre you can maintain your VISA credit & ATM Debit Card, check your account balances,
conform last 5 transaction, pay utility and mobile phones bills, top-up your mobile, pay MCB
Visa Credit Card bill from you MCB account, Transfer money within your own accounts in
MCB and register complaint.
 Mobile Banking:
At the forefront of technological

excellence, MCB proudly
introduces MCB MOBILE
BANKING. MCB Mobile is a
quickly easy and secure way to
recharge mobile phones transfer
money, pay bills and do much
more. No need to visit a branch
or an ATM anymore, just login to www.mcbmobile.com and using mobile phone and start
transacting.

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 Bill Payments:
MCB easy bill pay offers unmatched convenience to pay your utility and mobile phones 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, Mobilink, Supernet, IESCO, HESCO, and Ufone. So save your
precious time by avoiding long quesues pay your bill through MCB easy Bill pay.
 Online Banking:
MCB has a fast growing of over 1100 online branches in the country providing customers real
time online transaction facilities.

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MCB CARDS
Smart Card:
MCB Smart Card is the key

that enables access to
convenient banking
services. Smart Card allow
you to manage your
account withdraw cash,
transfer funds, pay utility
bills recharge prepaid
connections and register for
mobile and internet banking
services and much more.
The convenience and
flexibility of MCB smart
card will help you live
smarter life, it not only helps you manage your expenses, but also eliminates undue interested
your day to day credit card transaction . Your balance is always within your reach and you spend
accordingly. MCB now bring MCB smart card –a secure and convenient instrument of payment
with unmatched functionalities. It provides 24 –hour direct access to your bank account.
Debit card:
Now MCB bring a secure , convenient and quick payment facility that enables you do purchasing
by using your existing MCB ATM / MCB smart card as a DEBIT CARD.
Visa credit card:
MCB offers a complete suite of classic, gold and platinum visa credit cards focusing on
providing , superior service travel privilege & shopping pleasure . it also offers comprehensive
insurance & installment plan, reward points and SMS alerts that give a different feel to the world
of credit cards. These unique feature include I-revolve, which makes variable mark-up rate to
customers allowing them to repay at affordable rates.

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MCB INVESTMENT BANKING:
Make the most of your wealth with investment opportunities that match your unique financial
aspiration, MCB investment services offers distribution of mutual funds managed by the leading
fund manager of Pakistan. We can suggest the product most suited for your needs, or work with
you to create a personalized solution completely focused on your expectation of the capital
markets.
MCB goal is to provide best financial solution helping them achieving their objectivities and
support economic growth of the country.
The basic services offered by investment banking are as under;
 Project & structured finance:
Involves financing complex project usually in an SPV structure, where the loan is tightly
structured around the cash flows , risk are allocated various stakeholders , and there is limited or
on recourses to the sponsors.
 Syndicated loan and debt capital markets:
it involves structuring/advisory arrangement , underwriting and placement services for

significant financing requirements by large corporate and institutional client to other financial
institutions or through the debt capital markets.
 Quasi equity/hybrid instruments:
It structured and places a category or debt that has some characteristics of equity such as being
unsecured, subordinated or with a potential equity upside.

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 Equity capital rising:
Equity services relate to rising capital for clients by offering common or preferred equity to
public or private investors, through initial public offers , offers for sale , right issues and private
equity placements.
 Advisory services:
Financial and capital raising advisory client with financial advisory services , commercial
structured support and access to capital resources to help companies successfully finance their
business/project.
 Facility administration:
Management of creditor interests in syndication transaction such as facility agent security

trustee, project monitoring bank, book-runner etc.
 Commercial banking:
Complementary products and services such as revolving line of credit , trade services and cash
management that may be bundled with our investment banking products.

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MCB AGRICULTURED PRODUCTS
MCB has been providing finance to the

agriculture sector since 1930. With the
help of our vast branches network,
specialized staff posted in the branches,
multiple and diversified product range, we
farming community spread throughout the
country and facility in achieving increased
productivity.
o Shadabi plan:
Shadabi plan caters the financing need for production activate on the farm which mainly includes
seed, pesticides and fertilizer along with provisions for miscellaneous expenses like payment of
electricity & diesel of tube wells, maintenance expenses for tractors and the like items as per list
of eligible item.
o Khushali scheme:
Under khushali scheme loans/finance are allowed for farm/ non-form credits which include
fixed investment and collateral.
Financing for land leveling/development, heavy equipment, agriculture machinery,
Vehicles/transport for agriculture purpose are covered under this scheme. There may be other
developing projects proposed by the farmers falling within the ambit of agri financing which can
be considered under this scheme.
o Tractor finance scheme:
To boost up the mechanized farming in the country, tractor finance scheme is introduced to offer
specialized services to farmers. Under this scheme, there is no requirement of minimum land
holding because of multipurpose use of tractor for agriculture will be evaluated at the time of
loan processing.

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o Aabiari scheme:
Under the Aabrari scheme, financing facilities for tube well, other wells, irrigation system of all
type including sprinklers are covered. The purpose is to facilitate the farmers in overcoming the
shortage of water for cultivation/plantation since water is essential requirement for crops.
o Grower finance:
Grower finance is a unique way of financing registered (bonafide) grower/farmers of sugarcane,

cotton and rice ( mills) . the special characteristic is that the financing facilities are extended to
farmers against the mill/factory guarantee. Fixed/floating charge may be created on the mill’s
assets and the loan is directly to the growers. This finance is short term in nature but the tenure
may extend to eighteen months in case of growers of sugarcane.
o Dairy & Meat plan:
The plan is aimed at promoting the dairy sector & meat production in the country. The farmer are
extended financing facilities to purchase dairy animals for milk and for the establishment of
animals fattening station to increase meat production on commercial line, thus enabling the
farmer to create more income.
o Murghbani scheme:
Murghbani scheme covers extensively all requirements of the poultry industry with focus on
facilitating the farmer . we offers financing facility of all type of activities in the value chain
starting from establishment of poultry farms infrastructure to all requirements in the process till
the final out put including marketing of the same by the farmers. Value addition process by the
farmer for poultry processing is also covered under the scheme.
o Baghbani:
The scheme aims at facilitating the farmers engaged in horticulture by extending credit facilities
covering the entire range of related activities. The proposals are assessed keeping in view the
market potential and repayment based on the cash flows of the activity.
The farmer are extended all type of credit facilities required to produce fruits & vegetables of
better quality. The repayment of the loan is as per farmer convenience or linked to crop cycle and
timing of cash flows. Facilities like running finance, working capital requirements,
Infrastructure development, machinery & equipment , irrigation etc are all cover under this
scheme . Progressive farmers are especially encouraged.

41
o Mahigeri scheme:
Mahigeri scheme caters to the credit needs of fish farmers covering entire range of activities
including marketing of their produce. The loan are of short, medium and long term depending
upon the purpose. Financing for value addition process by the fish farmers is also covered under
the scheme.

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VIRTUAL BANKING
MCB provides the convenience of banking via internet, whether at home , office or on travel log
on to www .mcb .com .pk and enjoy 24 hour access to all your accounts at MCB for travel log
great number of services such as funds transfer, utility bill payments, mobile top-ups and much
more .
 Detail log account summary of all listed accounts.

 Mini-statements of each of the listed accounts showing recent transaction history for that
account(s).
 Statement-by-period of each of the listed account, based on the period specified.
 Immediate or schedule transfer of funds between your own account , as well as to third-
party account setup as beneficiaries, maintaining account with MCB.
 Scheduling of “one-time’ as well as ‘recurring’ funds transfers.
 Payment of utility bills for register utility companies.
 Immediate or scheduled bills payment. Scheduling of one-time as well as recurring bill
payments. option for full or partial payment based on the payment condition specified by
a particular utility company.
 Bulk funds transfer for any of your listed account.
 Payment/transfer alerts for reminding, in advance, prior to the processing of specified
payments and transfers. accasians.
 Personal alerts for reminding of pre-specified events and accasions.

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ISLAMIC BANKING
With the help of shariah specialists, lawyers and

professional commercial bankers, MCB Islamic
banking provides Riba free and shariah
compliant solution to various customer
segments in a growing number of cities.
 Deposit scheme
For customer who are looking for a deposit opportunity where they can pursue their
funds and reap halal returns on it. MCB offer the following products;
 Al-makhraj saving account
 Al-makhraj ianat account
 Al-makhraj term deposit
 FUND BASED FACILITIES

MCB offers 3 board Islamic fund based facilities;
 Ijarah
 Murabahah
 Diminishing musharika equipment
 Ijarah products:
MCB’s Islamic ijarah to the analogous to the term ‘leasing’ is based on the ‘ijarah was iqtina’
concept which means the sale of the asset to the lessee after the ijarah has matured under this
scheme. MCB will be the owner of the asset and customer (lessee) will be given the asset to use
for a certain period of time in return for monthly rental payment .MCB will give a separate
unilateral under taking that it will offer to sell the asset to customer (lessee) at the maturity of
the ijrah agreement at a price that may be equal to the security deposit amount , hence the term ,
we iqtina
Type of Ijarah
1. Car ijarh
2. Equipment ijrarah

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 Murabahah:
It is a contract between a buyer and a seller under which the later first purchases the goods at the
request of the former i.e. customer and then sells it to same customer after adding profit.
Murabah sale price= cost +expenses incurred + Agreed profit.
 Musharika equipment:
It is a contact through which the bank and its client participate in the joint ownership of a
property. The share of the bank is futher divided into a number of units and its is agreed that the
client will purchase the bank’s share periodically , thus increasing his own share until all units of
the bank are purchased by him so as to make the client the sole owner of the property.
PRIVILEGE BANKING:
A first from a local bank. MCB privilege through its dedicated, world class privilege centers
offers a higher level of personalized services, more rewarding in-branch experience and a wide
array of deposit and investment products that are tailored to meet the financial expectations for
affluent clientele. As members of MCB ‘s privilege, customer experience unparalleled advantage
that put them ahead of others. MCB’s dedicated privilege centers a wait to welcome you in
Karachi , Lahore, Islamabad, and multan, with plans to expand to more location.

45
OTHER SERVICES:
MCB MNET:
MNET is an electronic interbank connectivity platform for online

transaction on ATM another remote banking channels. Its offers
other value assed services that included a portfolio of e banking and
payment system products as well as management and day to day
operations of the same.
MCB SALARY CLUB:

A payroll solution designed to make life easy it simplifies all monthly payroll related banking
needs of employer and opens the door to a world special offers for employees.
MCB LOCKERS:
MCB lockers are the best protection for your valuables. Lockers of different capacities are
available nationwide.
MCB SMS BANKING:

Banking at your fingertips SMS anytime to get information regarding balnce mini statements and
credit card related information once your card linked.
MCB FULL DAY BANKING:

Enjoy the convenience of extended banking hours from 9am to 5pm, including Saturday at MCB
full day banking branches across the country.

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INTRODUCTION ON REPORT
this report is an upshot of my six weeks internship in MCB of Pakistan possesses an imperative
and historical importance in the banking sector of Pakistan. It always remain the center of hustles
in business activities. It always endows with great covenant of rally round in terms of funds and
services at all epochs of its dynamism.
The main purpose of internship is to learn by working in practical envoirment and to apply the
knowledge acquired during the studies in a real world scenario in order to tackle the problems. In
this report the detailed analysis of the organization has been done and all the financial financial,
technical, managerial and strategic aspects have been evaluated to analysis position of the
organization.
During my Six weeks internship program, I mainly worked with the following departments.
 Compliance Department
 Deposit department
 Clearing department
 Credit department

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DEPARTMENTS OF THE MCB
COMERCIAL BANKING GROUP:
The group focuses on revenue growth and profitability while through cross sell and optimization
of branch banking platform. With its large network of branches, commercial banking group
posted robust growth by increasing their deposit volume. The group enhanced their sales model
through the introduction of a direct sales force team and personnel bankers in many branches
while continuing to strengthen their customer services quality. The year witnessed a successful
restructuring of the SME & Mid-market segment with continued optimism of the benefit
accruing in the upcoming times.
CONSUMER BANKING GROUP;
The strategic focus of the group to enhance cross sell, strengthen customer propositions and
improve customer service. Emphasis will be on rapid expansion of the new initiatives such as
MCB Privilege, Banc assurance, investment services and Alternate Distribution Channels in
parallel, the group will remain committed to product development & refinement of processes for
continuous growth of deposits & customer base. The consumer banking group on its path of
expanding the product suite and customer base, MCB mobile, the first of its kind, mobile
payment solution was launched enabling customer to access their accounts and make payment
using their mobile phones. With the launch of MCB privilege,
MCB also become the first local bank in Pakistan to start a dedicated offering for the affluent
segment through three dedicated privilege center in Karachi, Lahore & Islamabad. A specialized
investment services unit was established to develop and distribute specialized investment
products catering to the growth needs of affluent/mass affluent segments. There was increased
focus on enhancing cross sell to deposit customer by expanding the footprint of banc assurance.
Functionality, reach, as well as , penetration of Alternate delivery channels was enhanced. A
signification milestone in 2009 was the transformation of the all center from a service center to a

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transactional phone banking facility. Given the high interest rate environment and tight economic
conditions, 2009 remained a cautious year for the consumer financing business. Only selective
lending was carried out in segments that have performed well historically. With close monitoring
of NPLs, the focus remained on collection & recovery and portfolio management during the
year.
CORPORATE BANKING GROUP:
Corporate banking group’s scope of work was the inclusion of international division and
investment banking, which absorbed to create better control and synergy. The group managed to
maintain the quality of their risk assets and derived comfort from the fact that corporate non-
performing loans constituted only 1% of the total corporate portfolio as compared to industry
percentage of 4% . the group embarks with cautious optimism with strategic thrust being on
building fee based income and trade business by cross selling to the existing customer base.
Information technology led changes in transaction of payment and collection system.
ISLAMIC BANKING GROUP:

MCB Islamic banking managed to maintain its profitability while ensuring quality of its earning
assets despite tough market conditions & deterioration in assets quality of banking industry.
Islamic banking further strengthened its market outreach by increasing its deposit base and
equity. MCB-IB plans to improve its assets & liability product range. Strategic imitative for
further increase in dedicated branches and capitalizing on existing out reach of MCB Bank has
been undertaken for capturing Islamic banking business.
TREASURY AND FOREX GROUP:
Treasury & FX remained focused on its customer orientation and enhanced its converge to a
broader customer base. The portfolio of customer grew not only through the Treasury Marketing
Unit’s own efforts but also as a result of a better cross-sell platform fully supported by the
wholesale, commercial, consumer and financial institution businesses fixed income sales showed
substantial improvement over the past year’s performance and remained an area of focus.
The treasury money market business worked towards gradually enhancing the investment
portfolio’s duration over the course of the year. This effort was granted greater buoyancy by the
stable deposit growth shown by the bank during the year and the portfolio was almost entirely
funded through the bank’s own sources and decreased whatever little dependence there was on
the deposit-taking areas of the bank were able to pay superior rates of return to customers and
was a key support factor n the overall growth of the bank’s balance sheet.
The foreign exchange business continued to grow over the course of the year in spite of
substantial volatility in the inter-bank markets owing to the turbulent economic situation facing

49
the country. Overall the treasury & FX Group turned in a very strong performance and ensured
its continued support for the rest of the bank’s businesses.
The Treasury followed through on the vision o the bank’s management and deployed a Treasury
marketing unit in Lahore, Faisalabad, etc. further efforts in this regard are continuing and in the
coming year Treasury will add at least on more marketing desk in a major city broadening its
converge even further.
ASSETS MANAGEMENT GROUP:
Bank’s special asset recovery outfit (SAMG) role further prominence SAMG, posted cash
recovery in excess of Rs. 1 billion. It is foreseen that the asset remedial management function
would continue to play a visibly pronounced role at least in the medium term scenario.
AUDIT & RAR GROUP:
Audit group has performed consultative role in addition to the assurance services that it is geared
to provide. The group has strengthened itself to cater to the requirements of Bank’s whistle
blowing program. Training & quality assurance department, developed within the group, ensures
that the audit assignments qualify the high standards that have been defined for the group. Audit
group is now equipped both in terms of human resource and methodology, and is committed
towards optimization of its operations.
OPERATIONS GROUP:
Operations group made significant progress through centralization, strengthening of the bank’s
processes through compliance with the COSO based internal control framework, business
continuity management and staff training & development, strong operational support was
provided to the businesses to ensure the launch of new products, channels and services including
banc assurance, privilege banking mobile banking, phone banking, and trade products & cash
management as well as in the migration of core banking application across all branches in
country.
HUMAN RESOURCE GROUP:
The human resources group has worked towards instilling systematic processes to build a
performance-based culture based on internal equity. Alongside aligning the bank with best
practices, this is surely to bring about an efficient and motivated workforce. The Group will be
further developing staff through a focus on career development and training ti truly brand MCB
as an employee focused organization.

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BUSINESS DEVELOPMENT AND NEW INITIATIVES:
The Group in close coordination with the Board and senior management, led the bank-wide
strategic planning exercise to refine and revalidate MCB’s 2012 strategy. Program Alpha, an
initiative tasked with transferring branches into efficient sales and services centers was vary
active. The Group also set up a bank wide Central business Intelligence Unit responsible for
supporting the retail bank in its sales and performance MIS needs BDNI will continue to ramp up
on program Alpha and BU coverage and will work closely with bank groups to ensure strategy
delivery.
INFORMATION TECHNOLOGY GROUP:
The major focus was on the completion of the roll-out of the core Banking System which heralds
a new era for the bank. Apart from the roll-out Group focused on up gradation of network
technology revision of security framework and provision of disaster recovery for critical business
application, deployment of a new payments and collection system moving MCB to the 3rd market
position (from 7th) and launched its mobile banking platform fully integrated with MCB systems.
Information technology governance model has been introduction to ensure quality selection,
monitoring and delivery of all high value projects.
COMPLIANCE GROUP:
Compliance group focus on pro-actively identifying and resolving any regulatory gaps,
particularly related to know your customer (KYC) and anti-money laundering (AML). TO
create awareness across the bank regarding KYC 7 AML regulations, over eighty training
sessions were conducted by the group in 39 cities / regions training approximately 2,600 staff.
Other initiatives were undertaken in the shape of ‘compliance’ news letter’ and ‘regulatory &
legal update’ the bank is now moving towards a solution based monitoring and has already
acquired ‘ name filtering’ solution while an AML solution is an the process of being finalized
for implementation which will better equip the bank in curbing any unscrupulous transaction.
RISK MANAGEMENT GROUP:
Prudent and effective risk management is and has always been a significant success factor in
steering the bank’s march towards strong profitability and market leadership. The bank employs
the function of risk management as an important tool in implementation of its long term vision.
MCB has successfully created a culture based on modern technique that allows risk management
and business units to create more shareholder value through a better understanding of our bank
and our customers. The risk management framework combines core policies, by procedures and
process design with oversight and is supported by risk monitoring across the bank.

51
Element of risk management framework are reviewed and updated in order to align our long-
term strategy in the field with lessons learned through the bank’s own experiences and
international best practices also kept compliant with the local regulations and selected
international best practices, particularly those relating to implementation of basel-11. The group
controls the review and administration of lending solutions offered to our clients through a
dedicated team of experienced professional. Specific functions of the group ensuring particular
risk management are,
 Credit review and credit risk control ensure that lending decisions are in line with the
bank’s strategy, lending is prudently given, and that recoveries are actively monitored.
 Credit risk management identifies target markets through economic research and data
analysis, defines how the bank lends to its customers through detailed polices and procedural
product manuals and coordinates with business units to ensure that targeted lending activity is in
line with the bank’s overall risk appetite and strategy.
 Market risk management ensures that the bank’s exposures in financial markets are
activity managed within reasonable limited.
 Operational risk management helps the banks understand risks that are inherent in almost
all areas of the bank.
 Basel 11 projects monitors the implementation of various projects in the areas of credit,
market and operational risk that have been initiated to allow the bank adhere to, and adopt, the
internationally accepted best practices of Basel 1.
 In addition to the internal compliance unit within the risk management group.
INVESTMENT GROUP:
The principal purpose of an investment group is the underwriting of new securities issued by an
investment bank’s clients. An investment bank may also provide other services such as
professional advice, working with mergers & acquisitions, and private wealth management.

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INTERNAL CONTROL GROUP:
The bank internal control structure comprise of

the Board of Directors, Senior Management, risk
management Group, Compliance & Control
Group, Financial Control Group Self-Assessment
Process within business groups and internal
Audit. The management is responsible for
establishing and maintain a system of adequate
internal controls and procedure for implementing
strategy and polices as approved by the Board of Directors, designed to provide reasonable
assurance as to the integrity and reliability of those controls and reports produced there from
developing process that identify measure monitor and controls risk incurred by the Bank,
maintaining an organizational structure that clear responsible, authority and reporting
relationship ensuring that delegated responsible are effectively carried out.

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DEPARTMENTS OF BRANCHES:
The departments are as under

 General banking department
 Remittance department
 Accounting department
 Foreign department
 Internal control department
CLEARING DEPARTMENT:
Clearing means collection of Cheaque receive from our customers but drawn on other banks.
Receiving the instruments deposited by customer posting the amount of instruments in credit of
customer’s account if Cheaque returns from the concerned bank, the customer account is debited.
Crossing stamp is put on the instrument and slip given to customer on receipt of the instrument.
Clearing stamp and ‘payee account credited’ are put on the instrument and the voucher. Clearing
house has provided this facility. Clearing house facilitates different banks, in one city, to get their
Cheaque drawn upon other banks to be cleared.
Cheaque lodged in clearing constitute in clearing constitute two type of clearing;
 Outward clearing
 Inward clearing
OUTWARD CLEARING:
When Cheaque TC’s and negotiable instruments drawn upon other like NBP;
ABN AMRO of the same city are presented in Muslim Commercial bank to deposit them in the
respective payee’s account, these instruments are lodged in outward clearing (o/w clg) of MCB
bank.
PROCEDURE OF OUTWARD CLEARING

 The name of the branch appears on its face where it is drawn
 It should not stale or post – dated or without date.
 Amount in words and figures does not differ.
 Signature of the drawer appears on the face of the instrument.
 Instruments is not mutilated.

54
 There should be no material alteration, if so, it should be properly authenticated.
 If order instruments suitably indorsed and the last endorsee’s account being credited.
 Endorsement is in accordance with the crossing if any.
 The amount of the instrument is same as mentioned on the paying-in-slip and counterfoil.
 The title of the account on the paying-in-slip is that of payee or endorsee( with the
exception of bearer Cheaque).
Return Outward clearing:
 Over writing
 No stamp of clearing or if it is not clear
 No stamp of crossing or it is not clear
RETURN OUTWARD CLEARING:
Inward clearing means Cheaque drawn on us and presented by other banks. In inward clearing
branch acts as paying banker. After realization of inward clearing, banks deposits are decreased
as bank make payment to other banks from the balance held by the branch.
The realization of inward clearing is also referred to as responding to the clearing. Cheaque and
other negotiable instruments (PO, DD, PS, CDR etc)drawn on Muslim bank sent by other banks,
constitute the inward clearing of MCB.
Procedure of inward clearing
 Instruments with schedule are received from NIFT.

 Amount of each instrument entered is in inward clearing register .
 Instruments are detached and handed over to the deposits and other respective department
for checking and payments.
 In case of any instrument is returned, return memo is prepared stating the reason offer
return.
 Entry is made in Cheaque return register.
 Cheaque return charges are recovered from the party as per charges schedule.

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Checking / return of instruments:
 Over writing
 No stamp of clearing or if it is not clear
 No stamp of crossing or if it is not clear
REMITTANCE DEPARTMEBT:
The remittance department deals with the transfer of money from one place to another.
Funds transfer facility or remittance of funds is one of the key functions of the banks all over the
world. Remittances through banking channels save time, costs less and eliminate the risks
involved in physical transportation of money from one place to another. Muslim
Commercial bank of Pakistan transfers money in the following ways.
 Pay order
 Demand draft
 Mail transfer
 Telegraphic transfer
 Pay slip
 Call deposit recipe
 Letter of credit
 Traveler’s Cheaque
DEMAND DRAFT:
It is used for payment made outside the city. It is writing on the name of head office accounting
entry by drawing branch. When the customer purchases a draft, the drawing branch sends the
advice(a copy ofDD)to the drawer branch and original copy of DD is given to the purchaser. On
the arrival of advice the drawee branch and the debit ho account an credit the DD payable
account. When the customer comes with the original DD to the drawee branch, his account is
credited by debited the DD payable account.
CHARGES:
Commission 50- but if amount increase or decrease then it will also increase or decrease and
FED 8- also increase or decrease.
Pay Order:
Payment order is issued for the money transfer within the city. Pay order is made for local
transfer of money. Pay order is the most convenient, simple and secure way of transfer of money.

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MAIL TRANSFER:
A mail transfer is a form of remittance in which the amount remitted by a customer or a non-
customer is directly credited to the account of the beneficiary with another branch.
Move your money safely and quickly using MCB Mail transfer services. And MCB aksi offer the
most competitive rates in the market. They charge Rs 50%- exchange rate and Rs 75/- postage
charge on issuing mail transfer. When the money is not required immediately the remittances can
also be made by mail transfer (MT). here the selling office of the bank sends instructions in
writing by mail to the paying bank for the payment of a specified amount of money . debiting to
the buyer’s account at the selling office and crediting to the recipient’s account at the paying
bank make the under this transfer.
TELEGRAPHIC TRANSFER:
Telegraphic transfer is a form of remittance, which is advised by telegram, telex or fax machines.
The fundamental principles of such transfer are otherwise identical with the mail transfer. It is
the message, which is sent form one branch to another on the order of payer to payee through
wire, it is one of the quickest means to transfer fund through the use of telex fax internet or
cable.
ACCOUNT DEPARTMENTS:
Opening of account is the most important department of the branch as this is a contract between
the customer and bank. All future transaction operation are carried out as per this contract and
any deviation may jeopardize the bank’s interest. The operating of a new accounts the
establishment of customer banker relationship. By opening an account at a bank a person
becomes a customer of the bank. The customer can open following accounts’
 Current account (CD A/C)

 Profit and loss sharing account (PLS A/C)
 Basic bank account (BBA A/C)
 Fixed deposit (FDR/TDR)
Account Opening.
When a client comes to the bank and makes a request for opening of an A/C . the office says that
first fill up a prescribed application form, if he/she wants to open a PLS A/C then he/she has to
fill a form according to the account.

57
Requirement;
o ID Card of applicant
o ID Card of father, mother, brother, sister, husband or wife
o Student card (if applicant is student)
o Two photos for illiterate person or those who use Urdu signature
Documents Attach with A/C Opening Form:

 A/c opening form
 Specimen signature card
 Zakat from (for non-Muslim)
 Deposit slip
 Requisition form
ISSUANCE OF CHEAQUE BOOK:
After opening an A/c with the bank, the A/C holder once again makes a request in the name of
bank for the issuance of a Cheaque book, the A/C holder mentions title of A/C A/C number, sign
it properly and mentions the no of leaves he requires.
CREDIT DEPARTMENT:
The bank is profit seeking institution. It attracts surplus balance form the customer at low rate of
interest and makes advance at a higher rate of interest to the individuals and business firms.
Credit extensions are the most important activity of all the financial institutions, because it is the
main source of earnings. Advance department is one of the most sensitive and important
department of the bank. The major portion of the profit of the usually earned through this
department.
The job of this department is to make proposals about the loans, the credit management division
of head office directly controls all the advance application the advance department processes it
further. After analyzing and detailed investigation, they decide whether to approve the loan or
not.
Some advances are of the following nature
 Loan against Gold
 Agriculture advance to farmers
 Medium term advance for working capital
 Long term advance for setting industry
 Short term advance to business

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FORIGN EXCHANGE DEPARTMENT:
This department mainly deals with the foreign business. the main functions of these department
are;
 L/C dealing
 Foreign currency accounts dealing
 Foreign remittance dealing
L/C Dealing:
MCB is committed to offering its business customer the widest range of options in the area of
money transfer. If you are a commercial enter prices then our letter of Credit service is just what
you are looking for. With competitive rates, security, and ease of transaction ,
MCB letters of credit are the best way to do your business transactions.
FOREIGN CURRENCY ACCOUNT DEALING’

This department deals with the foreign currency accounts which mainly include dollar account
euro account etc.
INTERNAL CONTROL DEPARTMENT;

Role of branch compliance department is to prescribed frequencies, investigate long pending
reconciliation item, and ensure correct treatment every half-year and clearing system service
branch-in major cities. Internal control is the nitration of the activities, plan, attitudes, polices
and efforts of the people of the bank working together to provider as onabprole assurance that the
organization will achieve its objectives and mission.
FINANCE & ACCOUNTING OPERATIONS

The finance department of a bank takes responsibility for organizing the financial and
accounting affairs including the preparation and presentation of appropriate accounts, and the
provision of financial information for managers. The finance team manages the internal finance
of the firm. They are the banks internal management accountants. The main operations covered
by the financial department include;
 Assessment and appraisal of financial activities.
 Preparation of budgets and financial reports.
 Managing the general ledger.
 Investment of funds and manage associated risks, involve in direct investment activities.
 Implement long term financial plan.

59
 Liaising with external auditors.
 Developing strategies of capital investment, equity, and debt, along with paying
dividends to shareholders.
 Maintain cash management.
 Credit risk management.
 Capital structure and debt financing,
 Managing cost of capital, establish credit-rating criteria.

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MEDIOCRE LEVEL MANGEMENT
The organization chart within a department and in different offices as follows:
Divisional Heads ………..…………………… Head Office

Regional Head (EVP) ………..……………… Regional Office
Zonal Head (VP) ………..…………………… Zonal Office
Branch Manager ………..…………………… Branch (VP, AVP, GRADE 1, 2, 3)
MAIN OFFICES
Registered Office
MCB Building, F-6/G-6, Jinnah Avenue, Islamabad.
Principal Office
MCB 15 Main Gulberg, Lahore.
UAN: (042) 111-000-111
PABX: (042) 36041998-9
Website: www.mcb.com.pk
Email: info@mcb.com.pk
Shares Registrar
M/s. THK Associates (Pvt.) Ltd., State Life Building No.3,
Dr. Ziauddin Ahmed Road, Karachi
Corporate Office
MCB House, Jail Road, Lahore

61
Area of internship
During my six week internship at MCB bank.
I worked as an
 Compliance Department
 Deposit department
Weak one and two:
Compliance Department:
I start my internship in this department. Here I spend my 2 weeks in this department.
Activation of Dormant / near to dormant account:
Head office had already given an assignment to the department for the internees. It was about the
activation of dormant/near to dormant account. Head office provide us with the list of the
customers who had not used their account for more than one year and so their accounts were
going dormant.
My job is was to get in touch with those customers and convenience them to start using their
account again. I was provided with the Performa in which I recorded the customer response
which was sent back to the head office on daily basis. I told them about new services that the
bank has come up with. We used to call 100 plus client par day.
After this when work of near to dormant accounts was finished we start calling to customers
whose account had already turned dormant. Mostly customers would agree to activate their
accounts but there were those customers who would not perform activation due to several reason.
Calling almost 200 customers was hectic but it taught me patience and how to communicate with
people from different background. Some of customers belong to villages could not even
communication in Urdu. So to make them understand and convince was nothing but challenge
itself. And one of our customer also communicate with us in English. This improved my
communication skills to great level. It also taught me the ethics of a corporate world. How
people behave in a corporate culture and different departments work.

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Deal in Expenses:
After calling to dormant account holder I deal in expenses of all the branches of the Gujranwala
region. Recorded of expense on excel sheet in which include Drinking water, Plantation,
Stationery etc. The department receive expense voucher from all the branches then maintain a
record of expenses. I mainly recorded of that expenses and give a appropriate view of expenses.
Weak third and fourth
DEPOSIT DEPARTMENT
Bank deal in money and they are merely mobilizing funds within the economy. They borrow
from one person and lend to another, the difference between the rate of borrowing lending from
their spread or gross profit. Therefore we can rightly state that deposit is the blood of the bank
which causes the body of an institution to get work.
Opening an Account:
For opening an account first of all an account opening form is required. This form is an entry to
the banking system through ones deposits in the form of Cheaque and cash.
Requirement
Two most impotent requirements for opening an account are
 Original and Photocopy of ID card

 Introduction
A person can be introduced by any staff member or by any account holder.
Types of Accounts
 Current Account
 PLS Saving
 Saving
 Term deposit
 Notice deposit
 Call deposit
 Khushali Bachat
 Others

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Some of the most popular types of accounts and their opening procedure are bellow.
Current Account:
In this type of accounts the client is allowed to deposit or withdraw money as and when he likes.
He may thus deposit or withdraw money several time in a day if he likes, there is also no
restrictions of amount despite and withdraw. However there is requirements of minimum
balances maintenance of Rs.10000/-. Usually this type of account opened by businessman. No
profit is paid by the bank and no services charges are deduct by the bank on current deposit
account.
PLS Savings:
This type of account is for those persons who want to make small savings. This type of account
is opened with a minimum cash deposit of Rs.10000/-. Under this scheme deposits can be made
only up to a costing amount and withdrawal are allowed twice a week or 8 times in a month. If a
big amount is required a seven days notice is required before the withdrawal. The profit is paid
on these accounts on the minimum balances during a month for the whole of that month.
Term Deposit Account:
This is the type of term deposit in which a receipts is issued for varying tenors ranging from 1
month to 5 year or more. These are in the form of receipts and profit on these receipts is paid
biannualy. These receipts are en-cashable after expiry of the period for which they are issued.
Different types of rates are applied to different types of TDRs.
Khushali Bachat Account:
This is an advance form of PLS saving a/c in this type of account. The minimum balances
requirement for this type is Rs.2500/-. There is also restriction on the number of withdrawals as
well. i.e. up to 4 times in a calendar month. For maintain this extra balances the customer gets
the benefit of profit calculation on daily product basis and also free services of standing
instructions of paying utility bills. All other rules of saving account applicable.
Basic Banking Account(BBA):
This type is account is opened by those people who are employed on not a favorable salaries, by
students or by housewives. Rs.1000/- is minimum balance requirement for this type of account
with only two deposit and withdrawal per month.

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ACCOUNT OPENING PROCEDUR FOR INDIVIDUAL ACCOUNT-
The following requirements are the requirements to open an individual account,
1) Attested Photocopy of Computerized National Identity Card.
2) In case of salaried person attested copy of his services card or any other acceptable
evidence of services including but not limited to a certificate from the employer.
3) In case the person unable to properly sign two recent passport size photograph of the new
account holder besides taking right and left thumb impression on the specimen signature
card.
ACCOUNT OPENING PROCEDUR FOR PARTNERSHIP ACCOUNT-
The following requirements are the requirements to open Partnership account,
1) Attested Photocopy of Computerized National Identity Card.
2) Attested Photocopy of “Partnership Deed” of Letter of Partnership duly signed of all

partners.
3) Attested Photocopy of Registration certificate from registration of the firm.
4) Authority letter in original in favor of a person, other than the partners who operate the
account of firm.
ACCOUNT OPENING PROCEDUR FOR JOINT STOCK COMPANY ACCOUNT-
The following requirements are the requirements to open Joint Stock Company account,
1) Resolution of Board of Director for opening a account specifying. The person authorized
to operate the company account.
2) Memorandum and article of association
3) Certificate of incorporation.
4) Certificate of Commencement of Business

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5) Attested Photocopy of CNIC of all Directors.
6) List of Directors in Form issued for the Registrar Joint Stock Company.
ACCOUNT OPENING PROCEDUR FOR MINOR-
The following requirements are the requirements to open Minor Account.
1) In case of account being operated in the name of the MINOR the word Minor be added to
the title of account. The particular of the Guardian be provided as required under personal
information in the account application.
2) Attested Photocopy of CNIC of Guardian along with form-B for minor is provided.
Weak Fifth:
CLEARING DEPARTMENT –
Every bank acts both as a plying as well as collecting banker. It is however an important function
of crossed Cheaque. A large part of this work is carried out through the market clearing house.
A clearing house is a place where representative of all banks of the city gets together and settle
the receipt and payment of Cheaque drawn on each other. As the collecting bakers runs certain
risks in receipt of their ownership the law has provided certain protection to the banks.
The negotiable instrument act, 1881 lays down hat drawer or holder that a crossed Cheaque can
only be paid to a banker, who collects it for a customer in good faith and without negligence.
TYPE OF CHEAQUE COLLECTION –
Transfer Cheaque; are those Cheaque, which are collected and paid by the same branch of bank.
TRANSFER DELIVERY CHEAQUE: -
Are those Cheaque, which are collected and paid by two different branches of the same bank,
situation in the same city
CLEARING CHEAQUE:
Are those Cheaque, which are drawn on the branches of the same other bank of the same city or
of the same area, which is covered by a particular clearing house.

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COLLECTION CHEQUE:
Are those Cheaque which are drawn on the branches of either the same bank or of another bank,
but those branches, are not in the same city or they are not the member of clearing house.
FUNCTION OF CLEARING DEPARTMENT –
 to accept transfer, transfer delivery, clearing and collection Cheaque from the customer of
the branch and the arrange for their collection,
 to arrange the payment of Cheaque drawn on the branch and given for collection to any
other branch on MCB or any other members or sub member of the local clearing house.
 To collected amount of Cheaque drawn on member, sub-member of local clearing house,

sent for collection by MCB branches, not represented at the local clearing house.
RECEIVING & SCURITY OF CHEAQUE –
 Receiving and scrutinizing the Cheaque and other deposit instruments, and the pay-in-
slip at the counter.
 Fixing the stamps.
 Scrutiny and receipt by the authorized officer.
 Retiring the counter file to the depositor.
 Certificate and confirmation by the officer in charge of the department.
 Separating the Cheaque into transfer, transfer delivery, and clearing Cheaque.
BANKERSHOULD CHECK THE FOLLOWING
 The instrument should be neither stale/ nor post-dated.

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 If the instrument is crossed not negotiable it can be for the third party an endorsee of an
order Cheaque, or a holder of bearer Cheaque)
 The instrument should be bear any unauthorized alternation
 The instrument should not be mutilated.
 The amount in word and figures should be same.
 The instrument should be drawn on any local branch.
 If Cheaque is ‘crossed account payee’s’ only or ‘payee’s account’, it should only be

accepted for collection for the payees account.
 The Cheaque or draft should not be crossed specially to any other bank.
 A Cheaque payable to a firm should not be accepted for credit to a partner’s account.
 A Cheaque payable to one of the joint account holders should not be collected for the
joint account without the payee’s endorsement, or consent.
 A Cheaque drawn by a customer in the capacity of agent, attorney, or manager of his

company or firm, should not be collected for credit to his personal account.
 Pay orders, although negotiable should not be collected for third parties.
 Do not collect an instrument in the account of an agent or of the servant of the payee or
endorsee of the instrument.
 Not transferable instrument like the telegraphic transfer or mail transfer receipt pay-slips,
and treasury receipts should be collected for a person other payees.
 If an account is new or the balance or creation of the account is not satisfactory, satisfy
yourself about the title of the customers to the instruments before accepting the deposits.

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 Branch agent’s permission should be obtained before accepting a third party Cheaque or
draft for the credit of the member.
 If the is government department, government official, or a trust accounting the instrument
cannot be collection, but for the payees account.
 If they pay an instrument is UBL, it can collected for credit of the drawers account or the
amount of the instrument may be utilized as desired by the drawer in writing.
 Cheaque payable to a trust, account should be collected for credit to a trustee’s account.
 All the endorsement should be regular, and no endorsement should be missing.
Weak six
CREDITS DEPARTMENT –
Advance is the most impartment source of earning for the banks. MCB is also giving full
attention towards this aspect and it is also obvious from the growing portfolio of advance and
from very low delinquency rate. The credit portfolio of this institution is in a very much better
shape than other financial institutions of Pakistan and the credit goes to the management and the
staff who are concerned about the quantity and quality as well.
1) Loans
2) Cash credits
3) Overdraft
LOANS –
Loans are monetary assistance by a financial institution to a business, individual etc, the loans
are granted by the bank in lump sum, so these types called fixed or demand loans. Interest is
charged on the whole amount of a fixed loan.
The borrower withdraws whole the amount of loan. This type of loan is normally granted against
security of gold documents.
In case of demand loans against gold or documents, a demand promissory note note for the
amount of loan is taken from the borrower loans are granted under;

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REQUIREMENT FOR LOANS –
For granting loan to any party or individual, the bank checks following particulars of the client;
 Credibility
 Feasibility report
By credibility, bank judges the credibility of the client by his past bank record, CBI report etc. it
is very important in making decision about giving him loan.
Feasibility report is on the running or proposed business of the client. The report enables the
bank to judge the likely return of the business.
TYPE OF FACILITY –
Basically two types of facilities are available in banks
 Funded facility
 Non funded facility
FUNDED FACILITY –
 Running finance
 Cash finance
 Demand financing
RUNING FINANCE:
 The running finance facility is available for enhancement of business and customer’s
working capital
 In running finance markup is charged only on the amount utilized by customer.
 This facility is given against equitable and registered mortgage

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 The stock is hypothecated by bank.
 The customer can get his limited renewed after an year
 The rate charged by the bank on cash credit in 46 paisa per thousand on daily basis.
CASH FINANCE –
 Cash finance is basically given against the pledge of stock or stock in trade
 The amount is adjusted as the goods are released from go down.
DEMAND FINANCE –
 Demand finance is also given against hypothecated
 This type of loan is advanced in lump sum amount
 The customer repays the loan in monthly equal installments.
FUNDED FACILITY –
 Running finance
 Cash finance
 Demand finance
 Payment against documents
 Finance against imported merchandise
 Finance against trust receipt

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 Export finance
 Foreign finance
 Foreign bill purchased
 Others
NON-FUNDED FACILITY –
 Letter of credit
 Letter of guarantees
 Bid bonds
 Performance bonds
 Other facilities

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MCB BANK LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT DECEMBER 31, 2015
Note 2014 2015
(RUPEES IN THOUSANDS)
ASSETS
Cash and balance with treasury banks 6 61,208,938 46,753,804

Balances with other banks 7 3,681,893 3,015,624
Lending to financial institute 8 5,132,480 1,418,181
Investments-net 9 568,802,508 511,137,192
Advance –net 10 314,124,939 303,559,480
Operating fixed assets 11 32,432,650 31,192,588
Deferred tax assets-net - -
Other assets-net 12 31,246,245 37,554,615
1,016,629,653 934,631,484
LIABILITIES
Bill payable 14 11,975,237 16,627,700

Borrowing 15 118,459,448 59,542,861
Deposit and other accounts 16 708,091,171 688,329,520
Sub-ordinate loan - -
Liabilities against assets subject to finance - -
Deferred tax liabilities-net 17 11,376,589 10,397,100
Other liabilities 18 28,926,802 29,630,241
878,829,247 804,527,422
NET ASSETS 137,800,406 130,104,062
Share capital 19 11,130,307 11,130,307

Reserve 20 51,309,081 48,830,005
Unappropriated profit 50,464,155 46,947,863
112,903,543 106,908,175
Surplus of revaluation of asset-net of tax 21 24,896,863 23,195,887
137,800,406 130,104,062

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Financial Analysis:
Earning asset to total asset
Earning Asset to total asset = (earning asset / total asset)*100
Year Ratios
2015 81.92%
2014 82.17%
It is the activity ratio of the Bank it shows how much Bank put its assets into work, higher
answer shows favorable results and better management of assets, while when we compare it
previous year then this ratio increase in MCB, it means in 2015 bank put its more assets into
work.
Return on earning asset:
Return on earning asset = (Pretax income / earning asset)*100
Year Ratios
2015 4.66%
2014 5.17%
It is the profitability ratio of the bank, it shows returns received against earning asset, it shows
how well management put its asset into work. This is not correct measure to judge the
performance of earning assets because many non operating expenses are deducted from income.
This ratio decreases in 2015 as compare to 2014.
This shows that MCB put its assets less effectively into work.

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Net Margin to Earning asset:
Net margin to earning asset = (Net margin/earning Asset) * 100
Year Ratios
2015 2.76%
2014 3.50%
This is profitability ratio of the Bank it shows how well management control the spread of its
interest expense and interest revenue, Bank’s profitability strongly depends upon its net margin,
results show that Net margin to earning asset increases which is unfavorable condition for MCB.
Loan loss coverage ratio:
Loan loss coverage ratio = (Pre Tax income + provision for NPL)/provision for
NPL+ Net charges off
Year Ratios
2015 23.91%
2014 13.64%
This Ratio shows the protection available to the depositor because increase in Loan loss coverage
ratio shows sufficient amount to cover its Bad debts, MCB loan loss coverage ratio in 2015 is
more satisfactory as compare to 2014. It shows bank can cover its loss easily.

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Deposit Time Capital:
Deposit times capital = Deposit / Capital
Year Ratios
2015 11.22%
2014 11.59%
It is the solvency ratio of the bank it is debt to equity ratio, It is two folded ratio both high and
lower answer have its own reason, in 2015 ratio is less than 2014 which shows that solvency is
better in 2015 while activity, profitability, earning asset and Bank rating decrease.
Loan to Deposit Ratio:
Loan to deposit ratio = Loan / Deposit
2015 16.17%
2014 17.23%
It is called asset over liability ratio, this ratio increase in 2015 as compared to 2014.
Market Ratios:
Investor analysis or market analysis are related to firm market value, as measure by its current
share price to certain accounting values. Investor analysis includes,

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Price Earnings Ratio/Earning per share:
The portion of a company’s profit allocated to each outstanding share of common stock.
Earnings per share serve as an indicator of a company’s profitability.
PER = (net profit after tax – preference dividend)/ no. of shares
Year Ratios
2015 70%
2014 65%
It is important variable to determine the share price. In 2015, PER is more than in 2014 which
means there was an increase in share price of MCB. Bank is in more profit in 2015 and it has
more profits to distribute among its shareholders.
Dividend Payout Ratio:
The dividend payout ratio measures the percentage of a company's net income that is given to
shareholders in the form of dividends.
The formula to calculate it is,
Dividend Payout Ratio= (Dividend per share/Earning per share before nonrecurring) *100
YEAR Ratios
2015 53.01%
2014 49.57%
The ratio tells that what percentage of total earnings is paying to shareholders. High dividend
payout ratio increase the investor’s confidence of the company.

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Dividend Yield Ratios:
The dividend yield indicates the relationship between the dividends per common share market
price per common share.
Dividend Yield = Dividend per common share/Market price per common share
Year Ratios
2015 7.44%
2014 5.75%
Investor is likely to be satisfied from the dividend Yield which is increased from 5.75% to 7.44%
in 2015 as compared to the 2014.
Dividend per share:
The amount of dividend that a stockholder will receive for each share of stock held.
 Dividend per share = total dividend / no. Of shares
YEAR Ratios
2015 5.25%
2014 6.50%
The ratio showed positive trend in 2014 but there is some decline in 2015 due to increase in no.
of shares. Overall, the position is better.

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SWOT Analysis
The overall evolution of accompanies strength

weakness, opportunities, and threats is called SWOT
analysis
Strength:
The main strength of bank lies in its services, the other fact that contributes is approaching to
each segment of society another positive concern that becomes that becomes the strength of the
bank is its innovation some other are as follows.
Bank reputation;
MCB has made a status of a compact economic investment over 60 year it focus on growth
done enlightening service quality investment in technology and people developing its extensive
branch network and evolving a large and stable deposits based.
TECHNICAL MANAGEMENT SKILLS:

Different department of the MCB bank are developed with technical management skills
different issues are technically managed to avoid any disturbance and to run the business
smoothly.
Customer satisfaction:
MCB Bank by the customer satisfaction . It enable the customer through providing them
appropriate services and guiding them in their investment choices. Customer always reliable
and believe MCB. MCB bank believe in building and keeping close relationship built on super
care and devotion itself as an to MCB credit.
Promotion effectiveness:
MCB has developed a very encouraging promotional principle which create great loyalty and
motivation in employees toward the bank.
Team based approach:

MCB is team of loyal determines and faithful expert who keep quality of services done
outstanding performance and presentation. In MCB bank there established a team determination

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and accord among employees project are accomplished through members connectively working
as team.
Continuous improvement:
MCB bank held diverse training programs which enable the member or staff upgrade their
knowledge. MCB has taken initiative to introduced new scheme regarding its product and
services. In this way it continuously made improvement in its employees and services.
Quest for quality:

MCB bank always try to give its customers quality product and services to keep them
permanent client of bank. It always uses different channels to improve the quality.
Employees respect and dignity;
Every employee in the organization is given due respect and owner irrespective of its status and
level. Employees feel proud to be a part of the organization.
Large network of branches:

MCB is function by the great network of 100 plus online branches nationwide MCB determine
constantly to develop and enhanced its branch network day by day to confirm satisfy and
approachability to its customer.
Weakness
Some of weakness is as follow:
Less productivity from staff:

The bank management is unable to utilize optimum productivity from the staff. The matter of
fact is that is skilled and experienced but that are not utilized properly to gain optimal
productivity
Over sitting trend:
Staff of overburdened with unproductivively tasks from the management employee should be
used when and where required to get maximum output from them. Right job should be used.
Late sitting trend:
The most prominent fault in the bank’s management is that late sitting is becoming the trend of
the bank.
Although, overtime or late sitting in necessary for the sake of management deadline but late
sitting without purpose is of no use. in MCB late sitting is now trend. If they utilize their proper
time then they do not need sit late in the evening.

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Lack of organization devotion:
Organization loyalty has deficiency between employees. Employees don’t pay attention to their
tasks as they think their job as permanent.
Attitude of seniors toward to juniors:
Attitude of seniors has to change toward to junior’s some time seniors attitude are not
professional. Some seniors get the advantage of their and they treat the juniors harshly if they do
not perform according to their will.
Lack of leadership qualities:
For the proper performance towards the achievement of organization goals a strong working
environment is necessary and create this environment senior should play the role of leader. They
should understandable the problem of their subordinates and try to solve their problems and build
a strong relationship that results in the achievement of organization goal efficiently and
effectively.
In some areas in the MCB unfortunately there is lack of leadership qualities in the seniors which
produce embarrassment among the junior.
Opportunities
MCB bank may improve its rupee traveler Cheaque (RTCs) sales by through for new market
position. It can familiarize debt card system or may adapt the current ATM cards into a whole
debt card. House financing sector can be target to maximize the profit.
MCB bank enter into contract with other banks to use each other’s ATMs which will result in an
increased accessibility to MCB customers of other banks as well as all around the world
settlements money are strictly observed so as the money paid may not fall on hands of thus
termed exteremists for that all predictable money filtering done HUNDIES have been still there
is an opportunity for MCB to spread its branch network to several countries highlighting mostly
on introducing electronic funds transfer services.
Different banking courses can be offered for improving of banking staff
Management Skills:
Different management skills courses should be introduced to employees in order to make them
familiar management abilities.
Update courses:
Various refreshment courses should be conducted for the staff to keep them abreast.

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Foreign training:
Staff should be sent for some foreign courses in order to known them for global progress in their
respective fields.
IT courses:
For staff it is necessary to have knowledge in this it world various IT courses conducted for the
staff.
Threats
Competitions are increasing day by day:
Due to the increase in the number of conventional commercial banks, there is an increase in
competition. also there is a lot of aggressive marketing by the competitor banks is also a threat
for MCB bank.
Increasing interest rates:
Due to increases in interest rate against loans customer and investor cannot et loan from bank
customer will feel unhappy and they are enable to take much loans which will decrease the
business of bank.
Instability of government policies:
Government policies changing day by day and government stability is not there.
Entrance of foreign banks in local market:
Increasing number of foreign bank is entering day by day in local market Which is increasing
competitive market of banking sector.
Weak economic condition of Pakistan:
Weak economic condition of Pakistan is producing hindrance in the way to progress because
people are not in good financial position to do business themselves or to finance it from the
banks.
Unregistered business concern:
Some institutions are not registered so they are not bound to adopt all the position of STATE
BANK OF PAKISTAN. They can make their loaning and inters policies to attract customers.

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Recommendations
As I have studied an analysis MCB bank Ltd. I have found out this a good bank as its working
management is concerned first of all the reason of this is that there is no directive style in the
management of MCB and which shows that there is decentralization in the bank and every
branch manager can take decision according to the situation.
MCB is providing their customers with wide range of services including online banking virtual
banking and some of their new products in the pipeline include ATM network etc.shows that
MCB bank is taking good care of their customers.
MCB bank made heavy investment towards enhancing its capabilities in the area of automation
and technology. MCB is well positioned to meet client needs with improvement competitive
advantage.
During my stay at bank MCB I have observed that some people are overburdened and some
people used to sit idle for most of their working hours. There should work load analysis for all
employee and work load should be distributed respectively keeping in view the capacities and
capabilities of employee. The bank should improve its online transaction system and internet.
Bank should improve its online transaction system new marketing strategy should developed to
attract customers.
More training and development program should be lunched in order to clear the concept of
employee about new products and banking technique there is need to develop a good relation
among employee and their seniors.
The MCB bank Ltd. doing good job over the year that way the deposit of the organization
increase and the profitability also increase. The recommendation for the improvement is as
follow.
Recommendation as the basis of ratio analysis
 Gross spread ratio of the organization is steady decreasing and need to be improved.
 Non-interest to total income ratio is improving and need to be continued.
 Spread ratio is good but organization must decrease the interest expenses which help in
improving in the interest income which is very good for the organization.
 Debt ratio is decrease over the period of time and its thing need to be continued.
 Return on asset is improving over the year and make sure this is continued.
 Organization takes the necessary step to stabilize the net profit margin.
 Return on asset is increasing and this trend need to be continue.
 Gross profit margin and return on equity is not satisfactory need to be improved.
 And also the earning per share of the organization needed to be improved.

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Conclusion
In this section you are required to suggest solution for all the problems or discrepancies (you
have pointout in critical an SWOT analysis) found in the organization.
In some branches of MCB there is a problem of staff shortage there is only few employees who
are be able and end all of the whole branch resulting in burden of work shortage of staff should
be handled timely.
Most of the bank employee are sticking to one seat only with result that they become master of
one particular job and lose their grip on other banking operation. In my opininion the entire
employee should have regular job experience all outlook toward banking job rotation is must for
making people and asset for the company. Banks should give some incentives to its employee in
order to remove the conflict between lower and higher officers and should try to improve the
working condition of bank.
It is human nature goes beyond reward and incentives while one try avoid from punishment
likewise in commercial institution like bank this system be introduced with full force means
active smart educated skilled, self spoken and well versed personal should be rewarded, while on
the other hand lazy lethargic, rough dealers and ill mannered must be warned penalized and
punished.
The period of internship should be divided into the number of department of MCB the internee
should given time table mentoring the number of days he has to work at different places in the
bank on the 1st 4 days each department internee should be given lecture by the officers of the
department concerned about working of the department.
I experienced that management is hesitate to give internee chance of working in the cash
department because they are not take any risk. Also some branches have not full decorated and in
some branches there is no installation of rotation camera which is not good for the security.
I conclude through the study and preparation of the ratio analysis. I conclude that the Net profit
margin of the company decrease and it is need to be improved and Gross spread ratio also
decrease need to improved, non interest income to total income is relatively increase which is
good sign for organization.
Debt ratio of the company decreased over year . return on asset(ROT) increasing on the year
base its good because the organization uses its asset effectively and there is also need to improve
the return on equity. Price earn ratio is stabilizing over the period of time and the return of equity
has been decreased.
Finally I conclude that by keep the entire thing in mind that organization doing good business
overall but the need to make the polices of the organization is more effective and stabilized
which makes the organization more sound reliable and strong.

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BIBLIOGRAPHY
http;//www.mcb.com.pk/assets/MCB Bank Limited Year end Result –
2014 presentation.pdf
https;//www.mcb.com.pk/about-mcb/core-values
https;//www.mcb.com.pk/about-mcb/management-profiles
https;//www.mcb.com.pk/about-mcb/vision-mission
https;//www.mcb.com.pk/assets/MCB Annual Report 2013.pdf
http;//www.scribed.com/doc/38219647//Swot-Analysis-of-MCB#scribd

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GLOSSARY
Atmosphere; the pervading tone or mood of a place, situation, or creative work
Attributable; the adjective attributable described something that is capable of
Indicating or explaining a cause
Bridge; Connection or tie
Back-end rear part
Bright; successful or glazing
Clients a person or organization using the services of a lawyer or other
Professional person or company
Compliance; agreement or submission
Clerical; accounting or office
Crippling; cause (someone) to become unable to walk or move properly
Chronological; is the science of arranging events in their order of occurrence in time
Comprehension; the ability to understand something.
Condolence; an expression of sympathy, especially on the occasion of the death of a
Person’s relative or close friend.
DFI’s development financial institution
Dupe; trick
Drainage; the action or process of draining something
Deductive; characterized by or based on the inference of particular instances from

88
a general law.
Dexterity; skill in performing tasks, especially with the hands.
Disputed; argue about (something).
Drack; Unattractive.
Dreck; rubbish.
Dignity; self-respect
Ego; attitude;
Emphasis; special important, value, or prominence given to something
Elected; selected by elections.
Expansion; development
Fluency; the quality or condition of being fluent, in particular
Fast; Bright, swift
Forecast; estimate or calculation
GOP govt. of Pakistan
Glaze; shine.
Hiatus; pause or gap
Hub; the effective center of an activity, region, or network
Hierarchy; Grading or Order wise arrangement
HRM; Human Resources Management
Inductive; characterized by the inference of general laws from particular

89
Instance.
Infirmity; physical or mental weakness.
Initial; first.
Impending; upcoming
Jurisdiction; the official power to make legal decisions and judgments.
LLTA Loan liability transfer agreements
Logging the activity or business or felling trees and cutting and preparing the
Timber.
Millennium; a period of thousand years, especially when calculated from the
traditional date of the birth of Christ.
Meritorious; deserving reward or praise.
Misconduct; mismanagement, especially culpable neglect of duties.
Morale; confidence
Norms; something that is usual, typical, or standard.
Negated; make ineffective; nullify
Non-clerical; not doing or involving routine clerical work in an office
Opted; elect or chose
Origin; the reason or place of starting.
Probation; the release of an offender from detention, subject to a period of good

90
Behavior under supervision
PLS; profit and loss account
Procedural; technical or routine
Routes; a way or course taken in getting from a starting point to a destination
Revolutionize ; change (something) radically or fundamentally.
Rehabilitation; ‘again; and habitare meaning make fit
Reaction; something done, felt, or though in response to a situation or event.
Reimbursement; you get a reimbursement for your work-related expenses
Recruitment; the action of enlisting new people in the armed forces
Resignation; an act of resignation from a job or office
Residential; designed for people to live in
Saline; containing or impregnated with salt.
Solicited; ask for or try to obtain (something) from someone
Superannuation pension; regular payment made into a fund by an employee towards

a future
Sanctioning; give official permission or approval for ( an action )
Segment; part or section
Simultaneously; at the same time
Tangible; real or physically existence
Unforeseeable; not able to b anticipated or predicted
Uncomfortable; causing or feeling slight pain or physical discomfort

91
ANNEXTURE
Annexure #1
Annexure # 2

92
Annexure #3
Annexure # 4

93
94

Session 2012-2016: University of The Punjab Gujranwala Campus

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Session 2012-2016

University of the Punjab Gujranwala Campus

University of the Punjab Gujranwala Campus

University of the Punjab Gujranwala Campus

University of the Punjab Gujranwala Campus

University of the Punjab Gujranwala Campus

University of the Punjab Gujranwala Campus

University of the Punjab Gujranwala Campus

Vision statement ……………………………………………………………………12

Mission statement ……………………………………………………………………12

Core values ……………………………………………………………………13

Management System ……………………………………………………………………20

Product and Services ……………………………………………………………………28

Introduction to report ……………………………………………………………………46

Department of MCB ……………………………………………………………………47

Department of Branch ……………………………………………………………………53

Area of Internship ……………………………………………………………………62

Financial analysis ……………………………………………………………………72

SWOT Analysis ……………………………………………………………………81

University of the Punjab Gujranwala Campus

University of the Punjab Gujranwala Campus

University of the Punjab Gujranwala Campus

University of the Punjab Gujranwala Campus

 Incorporated in Calcutta, India on 9th July 1947

 First chairman – Mr. GM Adamjee

 Head office was shifted to Dhaka in August 1948

 Head office was shifted to Karachi in August 1956

 Nationalized on 1st January 1947

 Privatized on 8th April 1991

 Fist chairman after privatization – Mr. Mian Muhammad Mansha

 Head office transferred to Islamabad 1991.

University of the Punjab Gujranwala Campus

University of the Punjab Gujranwala Campus

University of the Punjab Gujranwala Campus

The Asset Triple A Best Domestic Bank –Pakistan

Asia money Awards Best of the Best Domestic Bank

The Asian Bank (USA) strongest Bank in Pakistan 2014

ICAP and ICMAP 1st – BCR awards 2013 – Banking Sector

SAFA 1st Runner up- BCR 2013 in Banking Sector

University of the Punjab Gujranwala Campus

The Asset Triple A Best Islamic Deal

ICAP and ICMAP 1st – BCR Award 2012-Banking Sector

LK Domain Registry Sri Lanka Best Website Award

Lanka Clear Pvt.Ltd T+1 Cheaque Award

Euromony Best Bank in Pakistan

NFEH CSR Business Excellence Award “Best Media Coverage”

ICAP and ICMAP 2nd Best Corporate Award 2012

World Finance Best Commercial Bank-Pakistan

CFA Association Pakistan Best Bank of the Year

Euromoney Best Bank in Pakistan

ICAP and ICMAP 1st BCR Award 2010 –Banking Sector

SAFA Joint 2nd Runner-up for BCR 2010

University of the Punjab Gujranwala Campus

The Asian Banker Leadership Achievement Award

MMT Best Bank Led MMT Services

ICAP and ICMAP 1st – BCR Award 2009 –Banking sector

SAFA Certificate of Merit Award for BCR 2009

The Asset Best Domestic Bank in Pakistan

Euro money Best Bank Pakistan

Asia money Best Domestic Bank in Pakistan

Asia Money Best Domestic Commercial Bank in Pakistan

University of the Punjab Gujranwala Campus

Asia Money Best Domestic Commercial Bank in Pakistan