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Ahsan Khan MCB Report 2013 PDF
Ahsan Khan MCB Report 2013 PDF
Submitted to:
Sir Jhanzeb Butt
Department of Commerce
Submitted by:
Name: Ahsan Khan
Roll #: 97
DEPARTMENT OF COMMERCE
1 Department of Commerce
2 Department of Commerce
Acknowledgments
First of all I thank my almighty ALLAH. Who give me knowledge and strength and
able me to do my bs commerce (Accounting )
First of all I shall be very thankful of my parents because all the time they encourage
me throughout the course and giving me hope and faintness.
After that I shall be very thankful of the manager of MCB (Ltd). And all the staff of
MCB Bank (Ltd). Branch they help me throughout the internship course.
Regards,
Ahsan Khan
3 Department of Commerce
List of Contents
Sr. # Topics Page No.
Internship Placement- Commerce Graduates 03
Certificate of Achievement 04
Acknowledgements 05
c). Introduction 12
Board of Directors 13
Auditor 14
Audit Committee 14
Legal Advisor 14
4 Department of Commerce
Registrar’s and Share Registration Office 14
c). Objectives 15
Product Line 21
● Consumer Banking
21
● Commercial Banking
21
● Islamic Banking
22
● Mobile Banking
22
● MCB Virtual Banking
22
● Call Center
23
● Smart Card
23
5 Department of Commerce
● MNET Switch
23
● MCB Pyara Ghar
24
● MCB Car4u
24
● Remitt Express
24
● MCB Master Card 24
● IANAT Account
25
● Al-Makhraj TDR
25
Deposit Product 26
● Saving 365 Gold
26
● Saving Extra
26
● Smart Dollar Account
26
● Saving Account
26
● Current Account
26
● Current Life Account
27
● Foreign Currency Account
27
Lockers 27
● Documentation
27
● Key Deposit
28
● Use of Locker
28
6 Department of Commerce
Investment Products 28
● Dynamic Cash Account
28
● Dynamic Allocation Fund
28
● Gift Cheque
29
● Dynamic Stock Fund
29
Loans 30
● Auto Loan
30
Competitor 31
Overview of Department 32
7 Department of Commerce
e). Dispatch Department 34
8 Department of Commerce
e). Remittance Department 46
● Western Union
47
● Telegraphic Transfer (TT)
47
Ratio Analysis 49
● Vertical Analysis
49
● Horizontal Analysis
49
Balance Sheet 51
Income Statement 53
Income Statement 55
Swot Analysis 56
● Strenghs
56
9 Department of Commerce
● Weaknesses
57
● Opportunities
57
● Threats
57
● Proper Reception
61
● Token System
61
References
10 Department of Commerce
Objectives of Studying MCB Bank Limited
My objective of study MCB Bank Limited was to get some know how that how
professionals work in their environment, so that the experience I get from here will help me
in future.
According to our internship program, I completed my six (06) weeks internship at MCB
Bank Limited Chubara Road Layyah. MCB Bank Limited has three important
departments.
Bank is derived from Bancus or Banque or Back. History of banking is traced to 2000 B.C. in
Greece. Priests and goldsmiths acted as financial agents by keeping money and valuables of
people in temples in strong safes. Thus the first stage in the development of modern banking
was accepting of deposits cash from those who had surplus money with them.
The goldsmiths issued receipts for the money deposited with them, which began to
pass from hand to hand in settlement of transactions as people had confidence in the integrity
11 Department of Commerce
and solvency of goldsmiths. The receipts were drawn in a way that it entitled the holder to
claim the specified amount of money from goldsmiths. These receipts were the earlier bank
notes. Thus the second stage in the development of banking was the issue of bank notes. The
goldsmiths discovered all the people who had deposited money did not come to withdraw
their funds in cash. Only a few people presented the receipts for encashment during a given
period of time and they also found that most of the money deposited with them was lying
idle. They also found they were being constantly requested for loans on good security. They
thus thought it profitable to lend at least some of the money to the needy persons. This proved
profitable for them. Instead of charging interest from depositors, they began to give interest
Through experience, banks came to know that they could keep a small proportion of
total deposits for meeting demands of customers for cash and could easily lend the rest.
They allowed depositors to draw over and above than the money standing to their
credit. They thus allowed the overdraft facilities to their depositors and this was the fourth
Every bank issued receipts and most allowed overdraft facilities and this caused too
much confusion in the system. In order to earn profits, banks not keep adequate reserves to
meet demands of customers’ demands for cash. This failure on the part of bankers to return
12 Department of Commerce
In order to create confidence among people, steps were taken to regulate the banking
organization. A conference was held in Nuremberg in 1548 where it was decided that a bank
should be set up by the state, which would streamline the banking organization. The first
central bank was thus formed in Geneva in 1694. The responsibility of issuing notes is now
With the passage of time, activities of commercial banks increased. They dealt with
large number of issues such as obtaining funds, advancing loans to businesses, farmers,
banks are now multi-service organizations and play a very important role in financial
markets.
Muslim commercial Bank Ltd. was established on July 9, 1947 at Calcutta on the
express wishes of the founder of Pakistan Qauid-e-Azam M.A. Jinnah who was deeply
concerned with the plight of banking among the Muslim community in India. Muslims in
general were at that time not favorably inclined towards joining the banking profession. This
Muslim Commercial Bank first shifted its head office to Chittagong on August 17,
1947, immediately after independence and finally to Karachi on July 15, 1954, which was the
federal capital at that time. With the independence of the country, whatever scarce human
13 Department of Commerce
resources available were utilized in the banking sector. However, as the branch network was
expanding, so was the trained manpower to man the newly setup branches as well as the
controlling offices. In the period 1947 till 1965, young university graduates were recruited
and trained for a year by the training department of SBP and then assigned to the commercial
banks.
Pakistan under Pakistan Banks Act 1974. By January 1991, MCB was privatized. The bank
intermediate party between the borrower and the lender. It borrows from one party and lends
to another and the difference between the terms on which it borrows and those on which it
c). Introduction
The bank has now completed more than 16 YEARS, since its privatization and it is,
indeed, gratifying to note that during this period, MCB Bank Limited has performed well and
has sustained its growth in all the major sectors. The well deserved credit, for this good
14 Department of Commerce
performance and progress, must surely go to the Bank’s Management, its Directors and, in no
small measure, to the entire MCB Bank Limited team for its dedication, concerted efforts and
MCB Bank Limited has been a pioneer among the banks in Pakistan, particularly in
introduction a number of innovative banking products and services. For the first time in the
history of Pakistan, these multifarious products mostly in the shape of saving schemes have
been introduced by MCB Bank Limited with brand names. This has set the trend and many
other banks, both local and foreign, have since followed in MCB Bank Limited’s footsteps,
The board of directors has the authority in guiding Bank affairs and in making general
policies. Some directors are the personnel of the MCB Bank Limited and others are
successful businessperson and executives of other major organization. There are Board of
Board of Directors
Tariq Rafi
15 Department of Commerce
Shahzad Saleem
Sarmad Amin
Manzar Mushtaq
Imran Maqbool
Company Secretary
Abdus S. Sami
Auditor
M/s A.F Ferguson & Co. Chartered Accountants
Audit Committee
Tariq Rafi (Chairman)
16 Department of Commerce
Legal Advisors
M/s Khalid Anwar & Co.
17 Department of Commerce
➢ Nature of MCB Bank Limited
c). Objectives
18 Department of Commerce
● Cash Management
19 Department of Commerce
e). Business Volume
Investments-n
96,631,874 167,134,465 213,060,882 316,651,821 402,069,641
et
Shareholder’s
52,244,865 61,075,932 69,179,921 78,914,681 88,156,651
Equity
Profit before
21,867,566 23,154,945 26,253,075 31,842,754 32,053,854
Taxation
Profit after
15,374,600 15,495,297 16,873,175 19,425,680 20,941,640
Taxation
20 Department of Commerce
Earnings per
16.71 16.85 18.34 21.12 22.77
Share (Rs.)
21 Department of Commerce
22 Department of Commerce
25 Department of Commerce
h). Branch Structure
➢ VICE PRESIDENT
26 Department of Commerce
➢ ASSISTANT VICE PRESIDENT
➢ OFFICER GRADE I
➢ OFFICER GRADE II
➢ CLERICAL STAFF
➢ PEONS
27 Department of Commerce
Product Line
MCB Bank Limited of Pakistan deals in all the schemes and the services of a bank in
a current scenario there are many sets of financial infrastructure with which the MCB Bank
● Consumer banking
The consumer portfolio, comprising the debit card, credit cards, auto loans, personal
loans and mortgages will be established phase by phase. However, we are confident that our
strengths, together with our largest network of online branches, a superior technology
platform, a big customer base and the Consumer Personal Banking Group (CPBG), will take
● Commercial banking
The MCB Bank Limited is also doing the commercial banking and it’s leading in this
department
MCB Bank Limited offers retail product to its consumers. The MCB Bank Limited
main focus to introduce the various financing and investing products to its valuable clients,
28 Department of Commerce
and contributes the steady growth to the financial industry. The commercial and the retail
The MCB Bank Limited introduce different type of product and instruments which is
29 Department of Commerce
● Islamic Banking
Islamic banking division was formed with the effect from 1st January 2003, which in a
short span of time, has developed sufficient expertise necessary infrastructure, information
technology, and manpower to run Islamic banking operations and offer Islamic banking
products.
● Mobile Banking
BANKING. The convenience of accessing your account balance information and mini
statements whenever you want or wherever you may need them, with comfort and peace of
mind.
MCB Mobile Banking service is available to all MCB ATM cardholders, 24 hours - 365
days.
Just call our Help Line on (021) 111-000-777 or any MCB online branch for assistance.
MCB Mobile Banking gives you easy and quick access to your account(s) at a time you find
With MCB Mobile Banking you can check your balance. And you can view the last 4
30 Department of Commerce
MCB Virtual Internet Banking offers you the convenience to manage and control your
banking and finances – when you want to, where you want to. Convenient, simple, secure and
● Call center
Keeping up with banking services can be tedious but not with Muslim Commercial
Bank, where phone service is at your fingertips. Just dial our Call Center from the comfort of
your home or office or wherever you happen to be. It offers basic banking services for your
convenience, eliminating the need for you to make unwanted trips to your branches
MCB Call Centre offers basic banking services for your convenience like Balance Inquiry,
Foreign Exchange Rates, Account Statement, Cheque Book Requests and lots of other state
● Smart card
MCB now brings MCB Smart Card – a secure and convenient instrument of payment
with unmatched functionalities. It provides 24 hours direct access to your bank account. It not
only helps you manage your expenses, but also eliminates undue interest on your day to day
credit card transactions. Your balance is always in your reach. MCB is the only bank to
31 Department of Commerce
introduce a debit card that gives the option to choose from domestic and international cards
● MNET Switch
MNET enables all the member banks to share their electronic networks. This means
customers of all member banks can use each other's ATMs. ATM machines of MNET
member banks accept cards issued by Muslim Commercial Bank, Citibank, Standard
Chartered, HSBC, Bolan Bank, Credit Agricole, Bank of Punjab, Prime Commercial Bank,
Saudi Pak Bank Limited, Habib Bank AG Zurich, Metropolitan Bank, Bank of Khyber and
American Express. MNET customers can use over 600,000 ATMs worldwide that carry the
logo and shop at over 5 million outlets that carry the logo.
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
● MCB Car4u
32 Department of Commerce
MCB CAR4U Auto Finance is the power move that assists you in more ways than
you ever imagined. It is affordable, with lowest mark up, flexible conditions, easy processing
● Remitt Express
The fastest way of getting your money across to Pakistan. Remit Express offers low
cost remittance from U.A.E. and Saudi Arabia. Your relatives, friends or business associates
receive drafts within 72 hours. MCB Remit Express has been specifically designed to meet
the needs of the expatriate Pakistani community residing in the Gulf countries.
People have tried to find more convenient ways to pay, from gold to paper money and
now checks. Today, money is moving away from distinct hard currencies and towards
universal payment products that transcend national borders, time zones, and, with the
MasterCard International has expanded globally in more locations in the world than any other
card. The card was introduced by Muslim Commercial Bank Limited in 1995 and now offers
♦ Photo security- the first bank in Pakistan to introduce the enhanced feature of photograph
33 Department of Commerce
♦ Welcomed at over 3,000 outlets in Pakistan.
The minimum deposit required for Al-Makhraj saving account in only Rs. 5000 and
● IANAT Account
The IANAT account give you ease of doing unrestricted number of the transaction.
IANAT account may be opened with minimum of only Rs.10, 000. With all the feature and
facilities that this product offers, it is highly recommended for management of the business
funds.
● Al-Makhraj TDR
A minimum of only rs.25, 000 is needed to invest money in Al-Makhraj tem deposit.
Choice of tenors can be made from a list of options namely 3 months to 2 years.
Deposit Product
34 Department of Commerce
● Saving 365 gold
The higher you save, the higher you go. MCB Bank Limited Savings 365 offers you a
● Saving Extra
Grow with MCB Savings Xtra by saving more and earning greater profit. MCB Bank
Limited Savings Xtra offers you a wide range of attractive profit rates.
Discover a suitable solution that helps make more of your dollar savings. MCB Smart
Dollar Account is a sensible way to maintain or grow your US Dollar deposit across USD
● Saving account
If you’re living large and don’t wish to lock your funds for lengthy periods, yet still
want to reap the profits from your success, your can have the best of both world’s with an
Current account
35 Department of Commerce
● Network of over a thousand branches, and hundreds of online branches, at convenient
locations.
● On maintaining your Privilege relationship, all demand drafts, pay orders, cheque
LOCKERS
36 Department of Commerce
MCB Bank Ltd. offers safe Deposit lockers facility to its customers. These lockers are
installed in the Strong Room of the branch to ensure maximum security. Each locker has a
separate number and is fitted with double key lock which can not be opened.
● Documentation
Lockers facility is available only for account holder of bank. Before issuing a license for the
● Key Deposit
Apart from fee a certain amount is also payable as Key Deposit. This amount is refundable on
● Use of Locker
Locker can’t be used for any purpose other than the deposit of documents, jewellary or other
valuable etc. Normally operation of locker is restricted to twice a day; however, this
37 Department of Commerce
Investment Products
MCB Bank Limited Dynamic Cash Fund (MCB Bank Limited DCF) is an open-end
money market fund managed by MCB Bank Limited Asset Management Company. The
objective of the fund is to provide attractive returns to short term investors with a very low
appetite for risk while taking into account capital security and quality considerations
MCB Bank limited Dynamic Allocation Fund (MCB Bank Limited DAF) is an
open-end asset allocation fund managed by MCB Bank Limited AMC which allows 0-100%
exposures into debt or equity as per market conditions and discretion of the fund manager.
The aim of the fund is to provide investors with a high absolute return.
● Gift Cheque
MCB Gift Cheques eliminates guesswork in trying to find out the perfect Gift for any
38 Department of Commerce
Gift Cheques is beautifully packed in a Gold / Silver envelop with a personalized Gift
Card designated to suit all occasions. They are safer than cash, because they can be replaced
if lost or stolen. They are also available at all TCS Express Centers round the clock.
MCB Bank Limited Dynamic Stock Fund (MCB Bank Limited DSF) is an open-end stock
market fund managed by MCB Bank Limited AMC. The objective of the fund is to provide
long term capital appreciation to investors. From time to time, MCB Bank Limited DSF may
invest in short term fixed income. Opportunities when it has a bearish view on equity/stock
markets
39 Department of Commerce
.
Loans
● Auto loan
Life in the fast lane can be really slow without a car. MCB makes it a breeze to
● Credit Cards
40 Department of Commerce
Accepted at over 24 million establishments worldwide in 210 countries including
10,000 in Pakistan displaying the Credit Cards logo, you can rest assured of real value-added
Pakistan’s 1st chip based debit card. It allows the customers to enjoy unmatched
It is with great pleasure that we welcome you to experience the exciting world of
MCB Bank Limited Visa Platinum Credit Card is the most reliable, competitive and
gratifying Credit Card offering a tantalizing mix of luxurious shopping, dining and traveling
MCB Bank Limited Visa is not just another card in your wallet. Visa is the most
secure, affordable and rewarding credit card turning you’re shopping into a much more
exciting experience. MCB Bank Limited Visa is accepted at all ATMs across Pakistan as well
41 Department of Commerce
● Instant issuance.
Competitor
The banking sector in Pakistan making very fast growth and there is many close
● Bank Islami
42 Department of Commerce
● Faysal Bank Ltd.
● Bank of Punjab
OVERVIEW OF DEPARTMENT
There is brief introduction of all the departments of the MCB Bank Limited
The business department promotes or selling the product to the customers, products like
ATM account opening forms etc .this department work as set the target strategies according
the current circumstances this department work with the three strategic objectives.
● customer satisfaction
● employee satisfaction
● Business results.
43 Department of Commerce
in this department the teller are the casher person receive the deposited and the give
the cash to the account holder on their demand and also maintained the online etc. in cash
● Token issuance
● Cash receipt
● Cash payments
● Etc.
The account opening department is the department which deals with the account
opening open of new account or the verifying the account this department is necessary as par
the order of the state bank of Pakistan in this department I come to know how to open the
account by filling the account opening form and also attached the NIC card copy and it is
d. Credit Department
In this department the bank granted the loan to the customer and there are the
different type of the credit which is provided to its customer during my internship I learned
that if some individual request for the loan then bank granted him a loan according to limit
and some requirement for different kind of loan for example if the organization request for
44 Department of Commerce
the loan then bank granted the loan according to some requirement and limits which apply on
the organization.
e. Dispatch Department
Dispatch department is the very important sector in the bank because all inward and
outward mails in which ordinary and sensitive as well, routed or transfer to this department as
the mail in the branches consists of documents covering title to goods, cheques, inter branch
Dr. Cr. Advices, letter of credit in international banking apart from other routine letters. So it
is important to handle dispatch carefully and make sure there is not wrong devilry
f. Clearing Department
There are two type of clearing in the bank and during my internship me doing both
● Inward clearing
● Outward clearing
This is important department in which the account are maintained and also the
voucher and the books and the all the expenses or expenditure of the bank are maintained so
45 Department of Commerce
it is the most important department of the bank maintain all the account of the bank is the
h. Finance Department
ways like advancing the loan and make the profit as a excess amount in the way of interest
the MCB finance in such a way giving the loan to the customer and also buy the share of the
private organization also finance in the agriculture sector and the private sector as well
In my first two weeks I’ll work in the account opening departments. It is important
department of the bank because all the working of the bank base on account and the bank
account shows the deposit of the bank if any person working with the bank or the
organization then first step is the account opening and my work is in the department is to
open the new account for a valuable customer and I learned that there is few many document
which is use in the opening of new account. There are many type of accounts the MCB bank
(Ltd) is offered to its customer in which include Current account, Saving account, (PLS)
Profit and loss account, BBA (Basic Banking Account), KBA(Khushali Bachat Account)
these have different specification of the customer which will gave benefit of him. For account
46 Department of Commerce
The document which is used in the opening a new account is as under
2. The name of person who request for opening the new account
9. Mother name
The most important in account opening is SS Card signature because we grudge it may
which customer withdraw the money is original customer or not, and other step is KYC Form
in this form we collect all secret information like client Father and mother name, income of
the business, his email address, postal address, and content number. The last one is CNIC
required of KIN for those person who have a blood relation of client like father, mother,
47 Department of Commerce
brother, sister, in this there is no required for friend or other person NIC only for those who
holder. Account holder. When the account holder deposit the amount. The account
department credits the account the account holder. Or when he draws the amount the
department credits make the transaction in his account. It may be due to outside payments to
account holder. Or he makes payment to out side’s parties to make his personal business
transactions. If sometime the chequebook is lost from the customers the bank charges Rs.100
for new chequebook issuance. But at the time of account opening there are no charges for
new chequebook.
48 Department of Commerce
● Closing of Account
It is also the responsibility of account opening department. For this purpose the
account holder for closing of account gives an application. Then the department closed the
accounts and gives the entire deposit amount to the holder. The bank collects the chequebook
accounts of the branch, the expenditure and revenue of the branch is controlled and
monitored in this department. This department is responsible for preparing the financial
statements of the branch. Preparation of these statements is done daily and all transactions
which have taken place in the other departments are posted in this department to counter
check that the whole banks working for the day is balanced. It is also the job of this
department to prepare Pay orders as these are computerized in this particular branch and
The banker may close the account of the customer due to following reasons.
i. Notice by a Customer
ii. Death of a Customer
iii. Customer’s Insolvency
iv. Customer’s Insanity
v. By the order of court
The explanation of each is as under:
49 Department of Commerce
1. Notice by a Customer
The banker closes the account of the customer on the application customer for the
50 Department of Commerce
2. Death of Customer
On death of his customer, the bank must stop payment of cheques drawn on him by
the decreased customer because the death revokes his authority to pay such cheques. The
heirs or the executors of the deceased customer are not authorized to operate on the account,
but can act only in accordance with the provisions mentioned in the letter of probate issued
by a competent court.
3. Customer’s Insanity
If the customer becomes insane or mentally ill this terminates the banker’s authority to act
as his customs agent. Since the banker-authority relationship comes to its end, in such
situation, it is usually considered that the banker’s authority to pay his customer’s cheques is
revoked by notice of insanity. However, the bankers treat their customer as it unless a fairly
4. Order of Court
A court of law may serve a banker with an order in garnishee proceed in execution of decree
During my internship I spent my 3rd week in the cash department and cash department is
totally deals with the cash whether the cash comes in the bank or out from the bank during
the learning in the cash department I learn the all the activities which is perform in the cash
51 Department of Commerce
department .in the cash department there is various sub department according to the
categories which are performing by the different persons in the department in the cash
During my learning process I learned that first of all issue the token to the customer and
then in the receipt counter receive the cash and maintained the account and then if a customer
have a check then the cheque is verifies by the verification person and then the casher makes
the payment against the cheque and also transfer the money online and maintained the all
activities which is casher duties i.e. give the cash to the valuable customer and the bill and the
fees receive counter receive the bill payment and the fees and maintain all the activities
1. Source of cash
2. Management of cash
3. Deposits
52 Department of Commerce
4. Demand draft and the online maintains
7. Cash transit
8. Issuance of cash
9. Security arrangements
This is the most important department of the bank I leaned while working in this
department that there is all about maintains of the cash in this department in the staff work
very carefully make sure there is no mistake and in the closing at evening both the sides of
the cash account is balanced or equal then the banks makes the profit.
c. Credit Department
My 4th week during my internship in the credit department the credit department is the
one of the most important department of the bank. The credit department is works with
maintain the loan and credit and also issue the credit after necessary verification and the
security and the guarantee to the desire limit and there is the rule and the regulation to issue
53 Department of Commerce
Credit department of MCB Bank (Ltd) deals with different type of running finance and
● Cash finance
● Demand finance
● Term finance
● Etc.
I learned in this department that the basic information that I entered for the issuance of
2. Copy of CINC
4. Date of birth
5. Complete address
If the individual wants to take the loan from the bank then there is the limits of the loan
which provided by the bank to any person or the organization. I leaned that for the purpose of
loan giving by the bank there is few many document and the guarantee required by the bank
54 Department of Commerce
1. Account number of the borrower and the account type
8. And the accurate financial statement of the business last two years or more
9. And the detail of the borrowers bank account with other banks
The purpose of the credit is for the starting the new business or the expansion of the
d. Clearing Department
My 5th week is all about the clearing department. I learned the work and the function
which is performed in the clearing department. This department the important department of
the bank
I learn that clearing is the process in which bankers settle their mutual accounts by the
claiming the arising account of various instruments presented by one bank drawn on the other
banks in a same city or the outside the city through NIFT (National Institutional Facilitation
55 Department of Commerce
Technologies). NIFT is the department of collection of clearing cheques of each branch, these
There are two types of clearing going in the bank Inward clearing and the Outward
clearing .we can say that the clearing is clear those cheque which cannot be cash at the cash
counter of the bank . the representative of the respective bank collect all the cheque and the
instrument which drawn on there and settle the account and doing the clearing function this
assembly of the representative of the bank is called Clearing house NIFT perform the clearing
on the behalf of the commercial banks in all the cities throughout the country.
➢ Inward clearing
the instrument and the settlement or the claim by the other banks or the other branches of
MCB on our branch of MCB bank in which include the cheque draft and etc, are drawn by
the other bank customer or by the MCB bank branches in clearing in the inward clearing
56 Department of Commerce
3. The clearing stamp bearing the date of the next working day
4. Payees account is credited and the stamp on the cheque and signature of the
operational manager
5. And before entering the cheque into the computer the stamp and the signature is to be
57 Department of Commerce
➢ Outward clearing
I leant about outward clearing in MCB Bank clearing department. out ward clearing is
that the settle of claims of our branch of MCB Bank or the other branches of MCB Bank
drawn of other banks or other branches of MCB Bank deposited by our customer in our
branches of the bank , presented by our branch of MCB Bank in out ward clearing.
When the cheques of outward clearing are received then it is entered into the clearing
registered.
1. Serial No.
3. Depositor name
4. Drawer
5. Drawee
6. Cheque No.
10. And the stamp on the back of the check payee account will be credited
58 Department of Commerce
The local clearing, a bundle cover is arranged manner the branch code stamp, total
amount and number of instruments. This amount should match the one that is kept in the
Clearing Register. The cheques or the instrument with bundle cover and outline are packed
in NIFT bag. Before putting these items in the bag, a plastic seal number is required and
should be written on the bundle cover and the same seal should be used to close the NIFT
bag. This is to ensure additional safety as when the seal is opened, it is non-replaceable. If the
seal number on the bag and on the bundle cover does not match, it is a suggestion that the bag
has been tamper with. Strict action can be taken by NIFT and the Bank consequently.
e. Remittances Department
department in the current scenario in this department the bank deals with transfer money and
different type of fund and also receive fund from abroad form the Pakistani community and
The MCB bank transfer different type of fund through the different services in which
I learnt that the money transfer and remittances have following features
59 Department of Commerce
2. There is little charges of transfer
5. And for non account holders the funds transfers online or via bank draft.
And also when the nonresident person sends the fund to their family the bank is takes the
following steps;
3. Received the 8 digit PIN from receiver and then check it whether the remittance is
7. And the last step is that the person received the cash from the casher
● Western Union
During my work in this department I deal with the customer which transfers their
money through the western union. Through the use of the western union one can get money
from all cities in the Pakistan from western union branches or any bank or post office or the
money changer. When person sent the money, the concerned company or bank give the PIN
number to the person against the name of the person and the cell number who received the
60 Department of Commerce
money through western union. When the receiver go to bank for receive of money the bank
takes the PIN number and the original CNIC copy from the receive and give him money
Telegraphic transfer is that after filling the application form the concerned officer fills
the telegraphic transfer form after that it is sent to the required bank and then the concerned
bank makes the payment immediately to the customer and after that the voucher sent to the
Demand draft is like an instrument as issue on the will of the customer because avoid
the extra burden of the currency and it is payable on the demand when the customer want it
its issue by the one branch of the bank a payable by another branch of the same bank.
61 Department of Commerce
FINANCIAL ANALYSIS
Dec 31
Balance Sheet
PKR’Million
ASSETS
Cash and balance with treasury and 129, 315 110602 87104 67878 58567
other banks
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Provision against non-performing ( 4625 ) ( 50959 ( 34712 ( 28425 ( 19542
advances ) ) ) )
investment
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TOTAL LIABILITIES & ASSETS 89439 778060 699818 620053 605539
Income statement
Fee, commission, brokerage and exchange income 10025 9027 7992 7139
Donations ( 35 ) ( 54 ) ( 84 ) ( 56 )
64 Department of Commerce
Profit before taxation 27029 24223 17742 14035
Ratio Analysis
Interest margin to avrg Interest margin/ avrg 4.72 % 4.21 % 3.80 % 3.42 %
earning assets earning asset
Loan loss coverage Pretax income + provision 5.99 7.74 6.34 5.71
ratio for loan losses/ net charge
off
Deposits times capital Average deposit/ Average 8.85 8.89 9.27 9.36
stockholders
Loan to deposit ratio Average total loans / 59.05% 63.16% 138.8% 77.45%
Average deposits
65 Department of Commerce
Five Years Financial Summary 2008-12
Income Statement
54,82 40,04
Mark-up/return earned Rs. Min 68,356 68,147 51,616
1 4
17,98 11,56
Mark-up/return expensed 27,500 28,620 15,837
8 1
36,83 28,48
Fund Based Income 40,856 44,526 35,779
4 3
Fee, Commission, FX and other Income 7,131 6,373 5,310 4,409 4,537
Dividend Income & Capital Gains 2,022 1,739 956 1,234 1,255
43,09 34,27
Total Income 50,009 52,639 41,422
9 5
13,16
Operating expenses 17,665 16,987 10,801 8,365
0
26,25 21,86
Profit before tax 32,054 31,483 23,155
3 8
16,87 15,37
Profit after tax 20,491 19,425 15,495
3 5
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67 Department of Commerce
Balance Sheet
68 Department of Commerce
Borrowings 87,951 39,101 25,685 44,662 22,664
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Six Years Vertical Analysis
Statement of Financial Position/Profit & Loss
Other Assets 5% 5% 5% 5% 4%
Borrowings 10% 6% 5% 9% 5%
Sub-ordinated loan - - - - -
Other Liabilities 3% 3% 3% 3% 5%
70 Department of Commerce
Reserves 6% 6% 7% 8% 8%
Unappropriated Profit 5% 4% 4% 3% 2%
Surplus on revaluation of assets-net of
2% 2% 2% 2% 1%
tax
Total 13% 14% 14% 14% 13%
Income Statement
71 Department of Commerce
Taxation -14% -16% -15% -13% -14%
72 Department of Commerce
Six Years Horizontal Analysis
Statement of Financial Position/Profit & Loss
2012 2011 2010 2009 2008
Balance Sheet
vs 11 vs 10 vs 09 vs 08 vs 07
ASSETS
Cash & Balances with Treasury Banks 8% 17% 17% -2% 0%
Reserves 5% 5% 5% 4% 8%
73 Department of Commerce
Surplus on Revaluation of Assets-net of
37% -1% 16% 40% -36%
tax
Income Statement
74 Department of Commerce
Profit after Taxation 8% 15% 9% 1% 1%
75 Department of Commerce
SWOT ANALYSIS
When I go for the internal analysis of the MCB Bank Limited it indicates many areas
where it posses strength and a competitive edge over others as well as there are some
Strengths:
● Over 900 branches network enables of the MCB Bank limited to serve the maximum
areas of economy.
● MCB’s Master Card and ATM Card are becoming more popular among peoples are
● Most of the MCB’s branches are computerized, high investment are being made in
technology, using SWIFT and other fastest sources delivering the message.
● MCB is the pioneer in introducing the RTC in the country are widely used in business
transactions.
● MCB Credit Cards are used all over the world as well as in Pakistan.
● The most industries & organization have their accounts in MCB Bank Limited.
● Having large scale of deposits, MCB Bank Limited is providing an efficient service to
● MCB has a qualified management in their knowledge and experience and bank takes
76 Department of Commerce
● MCB Mobile Banking is a free service for MCB Bank Ltd account holders who have
an ATM card. MCB Bank Mobile Banking gives easy and quick access to account
● MCB Bank Ltd. Call Centre offers basic banking services like Balance Inquiry,
Foreign Exchange Rates, Account Statement, Cheque Book Requests and lots of other
● MCB Bank Ltd. the leader in banking technology, now provides the convenience of
banking on Internet.
Weaknesses
● Most of the staff member knowledge is limited. They only know their routine duties.
● MCB Bank Ltd. RTC is Market leading, but is usable in Pakistan only.
● Customers having accounts with small amount are not given the same services and
Opportunities
● MCB Bank Ltd. has the opportunity to install the ATMs in all over the country.
● Customer feedback on different products & accounts can really improved the bank
77 Department of Commerce
● MCB Bank Ltd. can increase the ATM Cards withdrawal limit in a day.
● MCB has the opportunity to provide the on-line facility to its more branches.
Threats
● Defaulters and bad loan are threats for MCB Bank Ltd.
78 Department of Commerce
.
References:
● www.mcb.pk.com
● MCB Manager adnan naeem(bobby plaza,bund road Branch, Lahore
● www.wikipedia.org
79 Department of Commerce