INTERNSHIP REPORT ON

MCB

BY

Wasim …..
Roll # FC…..
M.Com
Submitted in Partial Fulfillment of the
Requirements for the Degree of Master of Commerce

Department of Management Sciences

NATIONAL UNIVERSITY OF MODERN LANGUAGES,

ISLAMABAD, PAKISTAN.

1
 FACULTY OF MANAGEMENT SCIENCES

It is hereby certified that the report has been thoroughly and carefully read recommended to the
Faculty of Management Sciences for acceptance of Final Internship Report by WASIM Roll No
-------- .Session (201x- 201x) Morning in partial fulfillment of the requirements for the degree of
Master of Business Administration of National University of Modern Languages, Islamabad.
(Faisalabad Campus).

Date:

Supervisor Name:

Supervisor Signature:

Panel Member Name:

Penal Member Signature

Head of Department:
 CHAPTER # 01

INTRODUCTION/BACKGROUND
 CHAPTER # 02

ORGANIZATION STRUCTURE/HIERARCHY

2.1 Organization Business Sector

MCB have one of the best banking networks in Pakistan. In current Scenario the organization or
the business sector of MCB is to provide commercial loans. MCB bank make known that they
complete a highlight deal transaction that helps to improve the Textile industry in Pakistan, the
sector that account for more than 60 percent of the country industrial activity. The bank has
determined on growth through improving quality service, utilizing its wide branch network and
large deposit support and management its non-performing loan improved risk management
processes.

MCB have strategy is to provides modified financial solution to the major section of its customer
base. The bank focuses on trading and middle market sector primarily for building risk assets and
trade related business. Leasing business is one which would not only provide more financing
options to the customers but is also expected to expand the asset base of the branches. MCB
caters to their needs of financing foreign and local trade, funds transfer and other seasonal
requirements. In array to meet the growing needs of its retail customers the Bank has recently
started full day banking in almost 400 branches covering more than 100 cities. MCB is break
new ground in introducing ATM facility in the country and currently the Bank has the largest
ATM network and ATM cardholder base. The MCB bank is fastest growing bank towards
becoming the leading bank in textile industry.
The main business sector of the MCB is to made commercial or industrial loans and provide best
quality services to their customers. In simple words MCB best domestic bank in Pakistan.
Fig. 2.1
Overall Organization Hierarchy Chart

Chain of
command
Chairman
President

Executive director Executive director

INT Inspection team Operation GSD

DIV

Consumer banking group Corporate banking group HRD

General Manager

Regional manager

Chief Manager

Manager
2.2 HEAD OFFICE

I. I. CHUNDRIGAR Road of Karachi has same importance in Pakistan’s economy as of the Wall
Street in world economy. The following part working under MCB Head office is given below.
 Administration
 Human Resource
 Corporate Planning & Budgeting
 Credit Management
 Investment Banking
 Human Resource
 Information Technology
 Corporate Planning & Budgeting
 Finance & Treasury
 Law Division
 International Division
 check & Audit

2.3 Circle Office

This is also called mini head office. The circle office is to control and regulate the functions of
branches which are under in its control. The purposes of circle office are to mobilize the deposits
and receive reports from branches. Circle office is divided in the following divisions.
 Marketing & Development
 Credit Management
 Audit & Inspection
 Human Resource
2.4 Business Volume
Muslim Commercial Bank is the fourth largest bank of Pakistan. MCB is by an asset based of Rs
568 billion and the market capitalization of USA $ 1.8 billion. The bank has a customer base of
approximately 4.6 million and a nationwide distribution network of 1150 branches, including 11
Islamic banking branches, and over 600 ATMs, in a with a population of over 160.5 millions.
MCB has 1150 branches (as of 31st December, 2014) including local branches, and business
establishment in SriLanka and Bahrain including newly established Rep. Office in Dubai, USE.
The bank has also formed a private company in Hong Kong (fully owned subsidiary of MCB) in
partnership with Standard Chartered Bank, handling trade transactions of select countries in the
Asia- Pacific region.
In 2010, MCB reported a profit after tax of PKR 16,873 millions and generated a return on
average equity of 25.91% and At 30 September 2014, MCBIM managed a total of Rs 8.9 billion
for a diverse portfolio of clients.
The bank’s assets equity is strong with a gross NPL ratio. During the last fifteen years, the bank
has concentrated on growth through improving service quality, investment in technology and
people. The bank has also formed a private company in Hong Kong in partnership with Standard
Chartered Bank, handling trade transactions of select countries in the Asia- Pacific region.
Table 2.2
MCB bank limited key data
Ticker: MCB Country Pakistan
Exchanges: Karachi Major industry Financial
Sub industry Commercial banks
2009 sales 61167614000(year Employees 9704
ending 2013)
Currency : Pakistan rupees Market cap 177510197830
Fiscal year end: December Shares outstanding: 760214980
Share type : Ordinary Closely held shares: 57409965
 CHAPTER # 03

PRODUCTS/COMMODITIES AND SERVICES

3.1 Virtual OR Internet Banking

Whether at office, home or traveling MCB provides the ease of banking on the internet on to
www.MCB.com.pk and enjoy 24 hour access to all your account at MCB for the largest array of
services such as inter bank funds transfer, utility bill payment.

3.2 ATM Network

MCB provides a world class banking service for customer convenience. MCB new classy mobile
ATMs ensure that you are given a service closer to you.

3.3 Islamic Banking

MCB Islamic banking provides Riba free and Shariah compliant solution to various segments in
a growing number of cities. With the help of shariah specialists, lawyers and professional
commercial bankers, we have the best solutions to cater to your needs in Islamic way.
3.4 Car 4U

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 and above all, no hidden
costs.

3.5 Personal Loan

MCB personal Loan is simply cash facility extended for personal use. It offers a fixed
installment loan that provides you access to cash instantly without any collateral. Financing
available is up to 5 years.

3.6 MCB Call Center 111-000-MCB (622)

Phone service is at your fingertips. Just dial our Call Centre from the comfort of your home or
office or wherever you happen to be. It offers basic banking services for your convenience,
eliminating the need for you to make unnecessary trips to your branch.

3.7 Home Loan

MCB pyara Ghar is a home finance product that lets you purchase, repair or construct your home
the way you have always wanted. Financing available is up to 20 years fro amount up to Rs. 20
million.
3.8 Smart Card

MCB now brings you MCB Smartcard a secure and convenient instrument of payment with
unmatched functionalities. It provides 24-hour direct access to your bank account. The
convenience and flexibility of MCB Smartcards will help you live a smarter life.

3.9 Agriculture Financing

Agriculture financing scheme for farmers that offers two financing plans, MCB shadabi plan for
short-term financing needs and MCB Khushali plan for long-term financial needs.

3.10 MCB Mobile Banking

MCB proudly introduces MCB MOBILE BANKING. Now SMS anytime to get information
about balance and mini statements.

3.11 MCB Business Sarmaya

MCB is a running finance facility against your residential property. It offers running finance up
to 20 million with low mark up and BTF facility at competitive rate
3.12 Online

There are big networks of over 1100 + online branches in the country and growing. Providing
customers with 24/7 real time online transaction facilities.

3.13 Competitors of MCB

MCB is also strongly keen to training its staff at all levels Human Resources Management has
been one of our core focus areas. MCB is committed towards attracting, retaining and motivating
outstanding people. Challenge for MCB is to provide an environment in which employees can
better realize their potential. MCB Bank aims to raise the level of its customer service and offer
new product for its three cores banking businesses in, Commercial, Corporate and Consumer
Banking. The following banks are major competitor of MCB.
a) Bank Al-Habib Limited
b) Bank Al-Falah Limited.
c) Habib Bank Limited
d) United Bank Limited
e) National bank of Pakistan
f) Allied Bank Limited
g) Standard Chartered Bank Limited
h) The Bank of Punjab
i) Askari Commercial Bank Limited
j) Soneri Bank Limited
k) Faysal bank limited
l) Saudi Pak Commercial bank limited.
m) PICIC Commercial bank limited
 CHAPTER # 05

FINANCIAL STATEMENT ANALYSIS

Ratio Analysis

5.1 Net Profit Margin

(Net Profit after Taxation / Net Sales)*100

Table 5.1

Particulars 2014 2013 2012

(Net Profit after Taxation 16,872,126 / 54,829,365 15,665,403 / 15,323,227 /
/ Net Sales)*100 51,621,911 * 100
* 100 40,049,505 * 100
=30.772% =38.260%
=30.346%

Working For 2014:

Net profit after tax = 16,872,126
Net Sales = 54,829,365
Net profit margin = 16,872,126 / 54,829,365 * 100
Net profit margin = 30.772%

Working For 2013:

Profit after tax = 15,665,403
Net Sales = 51,621,911
Net profit margin = 15,665,403 / 51,621,911 * 100
Net profit margin = 30.346%

Working For 2012:

Profit after tax = 15,323,227
Net Sales = 40,049,505
Net profit margin = 15,323,227 / 40,049,505 * 100
Net profit margin = 38.260%
Fig. 5.1

40
35
30
25
20
15
10
5
0
2012 2013 2014

Net profit margin is an indicator of how efficient a company is and how well it controls its costs.
The higher the margin is the more effective the company is in converting revenue into actual
profit. According the graph in 2013 the company is more effective as compare to 2011 and 2012.

5.2 Gross Spread Ratio=

(Net interest margin / Interest Income) * 100
Working For 2014:
Interest earned = 54,821,296
Interest expensed = 17,987,767
Net Interest Margin = 54,821,296 - 17,987,767*100
Net Interest Margin = 67.18%
Working For 2013:
Interest earned = 51,616,007
Interest expensed = 15,837,322
Net Interest Margin = 51,616,007- 15,837,322
Net Interest Margin = 69.37%

Working For 2012:

Interest earned = 40,043,824
Interest expensed = 11,560,740
Net Interest Margin = 40,043,824 - 11,560,740
Net Interest Margin = 63.63%
Table 5.2

70

68

66

64

62

60
2012 2013 2014

Gross Spread Ratio is an indicator of how efficient a company is and how well it controls its costs.
The higher the gross profit is the more effective the company is in converting revenue into actual
profit. According the graph in 2012 the company is higher as compare to 2011 and 2013.

5.3 Non Interest Income to Total Income Ratio=

Total Non Interest Income / Total Income *100

Table 5.3

Particulars 2014 2013 2012

Total Non Interest 6,265,306 / 61086602 5,642,885 / 5,791,440 /
57258892*100 45835264*100
Income/Total Income *100
=10.25% = 9.85% = 12.63%
*100

Working for 2014:

Total Income = Non Interest Income + interest Income
*100 Total Income = 6,265,306 + 54,821,296 *100
Total Income = 10.25%

Working for 2013:

Total Income = NON Interest Income + interest
Income*100 Total Income = 5,642,885 + 51,616,007 *100
Total Income = 9.85%

Working for 2012:

Total Income = NON Interest Income + interest Income *100
 Total Income = 5,791,440 + 40,043,824* 100
Total Income = 12.63%

Fig. 5.3
14
12
10
8
6
4
2
0
2012 2013 2014

Shows that total income of the company. The higher the total income is the more effective the
company is in converting revenue into actual profit. According the graph in 2011 the company is
higher as compare to 2012 and 2013.

5.4 Spread Ratio=

Spread ratio = Interest Earned / Interest Expense

Table 5.4

PartiCUars 2014 2013 2012

Spread ratio = Interest 54,821,296 / 17,987,767 51,616,007 / 40,043,824 /
15,837,322 11,560,740
Earned / Interest =3.04 Times
= 3.25 Times =3.46 Times
Expense

Working for 2014:

Spread ratio = Interest Earned / Interest Expense
Spread ratio = 54,821,296 / 17,987,767
Spread ratio = 3.04 Times
Working for 2013:
Spread ratio = Interest Earned / Interest Expense
Spread ratio = 51,616,007 / 15,837,322
 Spread ratio = 3.25 Times
Working for 2012:
Spread ratio = Interest Earned / Interest Expense
Spread ratio = 40,043,824 / 11,560,740
Spread ratio = 3.46 Times

Fig. 5.4
3.5
3.4
3.3
3.2
3.1
3
2.9
2.8
2012 2013 2014

Spread ratio shows that the interest earned and expenses happening during the financial year.
According the graph in 2011 the company is higher as compare to 2012 and 2013.

5.5 Return on Assets=

(EBIT / Total Assets) x 100
Table 5.5

Particulars 2014 2013 2012

(EBIT / Total Assets) x 44,537,008/ 39,188,868 / 33,479,662/
570,481,863 * 100 511,741,878 * 100 445,285,758* 100
100 = 0.078069104* 100 = 0.076579365* 100 = 0.075186914* 100
= 7.65%
= 7.80% = 7.51%

Working for 2014:

Net income = 44,537,008
Total assets = 570,481,863
Return on assets = 44,537,008/ 570,481,863 * 100
Return on assets = 7.80%
Working for 2013:
Net income = 39,188,868
Total assets = 511,741,878
Return on assets = 39,188,868 / 511,741,878 * 100
Return on assets = 7.65%
Working for 2012:
Net income = 33,479,662
Total assets = 445,285,758
Return on assets = 33,479,662/ 445,285,758* 100
Return on assets = 7.51%

Fig. 5.5
7.8

7.7

7.6

7.5

7.4

7.3
2012 2013 2014

Indicates that the company earnings are low for the amount of assets. Return asset ratio measures
how efficiently profits are being generated from the assets employed. The graph in 2013 this
ratio is greater than but in 2011 and in 2012 this ratio is going to be low indicating that
inefficient use of business assets.

5.6 Du Pont Return on Assets Ratio=

(Net Income / Sales) x (Sales / Total Assets) * 100

Table 5.6

Particulars 2014 2013 2012

(Net Income / Sales) x (Sales / 0.307720616 x 0.303464221 x 0.382607151 x
Total Assets) * 100 0.096110619 * 100 0.1008749 * 100 0.089941132 * 100
= 0.029575219 * 100 = 0.030611923 * 100 = 0.03441212* 100
= 3.06%
= 2.95% = 3.44%

Working for 2014:

Net income = 16,872,126
 Sales = 54,829,365
Total assets = 570,481,863
DuPont Return on Assets = 16,872,126 / 54,829,365 x 54,829,365 / 570,481,863 * 100
DuPont Return on Assets = 2.95%

Working for 2013:

Net income = 15,665,403

Sales = 51,621,911
Total assets = 511,741,878
DuPont Return on Assets = 15,665,403/ 51,621,911 x 51,621,911/ 511,741,878 * 100
DuPont Return on Assets = 3.06%

Working for 2012:

Net income = 15,323,227

Sales = 40,049,505
Total Assets = 445,285,758
DuPont Return on Assets = 15,323,227 / 40,049,505 x 40,049,505 / 445,285,758 * 100
DuPont Return on Assets = 3.44%

Fig. 5.6
3.5
3.4
3.3
3.2
3.1
3
2.9
2.8
2.7
2012 2013 2014

Indicates that the company earnings are low for the amount of assets. Return asset ratio measures
how well profits are being generated from the assets employed. The graph in 2011 this ratio is
greater than but in 2012 and in 2013 this ratio is going to be low indicating that efficient use of
business assets.

5.7 Return on Total Equity (ROE) =

(Net Profit after Taxation / Total Equity) x 100
Table 5.7

Particulars 2014 2013 2012

(Net Profit after Taxation / Total 16,872,126 / 71,225,105 15,665,403 / 15,323,227/
* 100 63,120,371 * 100 54,120,812* 100
Equity) x 100
= 0.236884537* 100 = 0.248182999* 100 = 0.283130028* 100
= 24.81%
= 23.68% = 28.31%

Working for 2014:

Net Income = 16,872,126
Total Equity = Share capital + Reserves + Inappropriate profit
Total Equity = 71,225,105
Return on Total Equity = 16,872,126 / 71,225,105 * 100
Return on Total Equity = 0.236884537* 100
Return on Total Equity = 23.68%
Working for 2013:
Net Income = 15,665,403
Total Equity = Share capital + Reserves + Inappropriate profit
Total Equity = 63,120,371
Return on Total Equity = 15,665,403 / 63,120,371 * 100
Return on Total Equity = 0.248182999* 100
Return on Total Equity = 24.81%
Working for 2012:
Net Income = 15,323,227
Total Equity = Share capital + Reserves + Inappropriate profit

Total Equity = 54,120,812

Return on Total Equity = 15,323,227/ 54,120,812* 100

Return on Total Equity = 0.283130028* 100

Return on Total Equity = 28.31%
Fig. 5.7
29
28
27
26
25
24
23
22
21
2012 2013 2014

Indicates that the company total equity is low for the amount of assets. Return on total equity
measures how well capital is being generated. The graph in 2011 this ratio is greater than but in
2012 and in 2013 this ratio is going to be low indicating that inefficient use of business assets.

5.8 Debt Ratio=

Total Liabilities / Total Assets

Table 4.8

Particulars 2014 2013 2012

Total Liabilities / Total Assets 488,482,736 / 439,428,598 / 385,153,625 /
570,481,863 511,741,878 445,285,758
= .8562 Times = .8586 Times = .8649 Times

Working for 2014:

Total Liabilities = 488,482,736
Total Assets = 570,481,863
Debt Ratio = 488,482,736 / 570,481,863
Debt Ratio = .8562 Times

Working for 2013:

Total Liabilities = 439,428,598
Total Assets = 511,741,878
Debt Ratio = 439,428,598 / 511,741,878
Debt Ratio = .8586 Times
Working for 2012:
Total Liabilities = 385,153,625
Total Assets = 445,285,758
Debt Ratio = 385,153,625 / 445,285,758
 Debt Ratio = .8649 Times

Fig. 5.8
0.866
0.864
0.862
0.86
0.858
0.856
0.854
0.852
0.85
2012 2013 2014

A debt ratio of greater than 1 indicates that a company has more debt than assets. But in 2011,
2012 and 2013 this ratio is less than one indicates that a company has more assets than debt.

5.9 Times Interest Earned:

=Earning before Income Tax (EBIT) / Interest Expense

Table 4.9

Particulars 2014 2013 2012

Earning before Income 44,537,008 / 18,027,372 39,188,868 / 33,479,662 /
15,839,722 11,592,922
Tax (EBIT) / Interest = 2.47
= 2.47 = 2.88
Expense
Working 2014:
EBIT = 26509636 + 18027372
EBIT = 44537008
EBIT / Interest Expense = 44537008 / 18027372
EBIT / Interest Expense = 2.47
Working 2013:
EBIT = 23,349,146 + 15,839,722
EBIT = 39,188,868
(EBIT) / Interest Expense = 39,188,868 / 15,839,722
(EBIT) / Interest Expense = 2.47
Working 2012:
EBIT = 21,886,740 + 11,592,922
EBIT = 33,479,662
(EBIT) / Interest Expense = 33,479,662 / 11,592,922
(EBIT) / Interest Expense = 2.88

Fig. 5.9
2.9
2.8
2.7
2.6
2.5
2.4
2.3
2.2
2012 2013 2014

Indicates the amount of which earnings are available to meet interest payments A lower times
interest earned ratio as in 2013 means less earnings are available to meet interest payments and
that the business is more at risk to increases in interest rates

5.10 Debt/Equity Ratio

Total Liabilities / Total Shareholder Equity

Table 5.10
Particulars 2014 2013 2012
Total Liabilities / Total 488,482,736 439,428,598 385,153,625
Shareholder /71225105 /63120371 /54120812

Debt/Equity Ratio 6.85 Times 6.96 Times 7.11 Times

Working for 2014:

Total Liabilities = 488,482,736
Total Shareholder Equity = 71,225,105
Debt / Equity Ratio = 488,482,736 /71225105
Debt / Equity Ratio = 6.85 Times
Working for 2013:
Total Liabilities = 439,428,598
Total Shareholder Equity = 63,120,371
Debt / Equity Ratio = 439,428,598 /63120371
Debt / Equity Ratio = 6.96 Times
Working for 2012:
Total Liabilities
Total Shareholder Equity
Debt / Equity Ratio
Debt / Equity Ratio
= 385,153,625
= 54120812
= 385,153,625 /54120812
= 7.11 Times

Fig. 5.10
7.15
7.1
7.05
7
6.95
6.9
6.85
6.8
6.75
6.7
2012 2013 2014

Indicates the extent to which the business relies on debt financing. A high leverage indicates
possible difficulty in paying interest and principle while obtaining more funding. But according
to diagram the company maintains the fixed level in this ratio.

5.11 Advances / Deposits Ratio=

Total Advances / Total Deposits

Table 5.11

Particulars 2014 2013 2012

Total Advances / Total Deposits 254,551,589 / 253,249,407 / 262,135,470 /
431,371,937 367,604,711 330,181,624

= .59 Times = .68 Times = .79 Times

Working for 2014:

Total Advances = 254,551,589
Total Deposits = 431,371,937
Deposits Ratio = .59 Times

Working for 2013:

Total Advances = 253,249,407
Total Deposits = 367,604,711
Deposits Ratio = .68 Times
Working for 2012:

Total Advances = 262,135,470

Total Deposits = 330,181,624
Deposits Ratio = .79 Times

Fig. 5.11
0.8
0.7
0.6
0.5
0.4
0.3
0.2
0.1
0
2012 2013 2014

This ratio that if a bank went above it, the bank will be in bad situation and if the bank is below it
will be in a good situation. According to the graph 2013 means the bank running in good position
as compare to 2013 and 2012.

5.12 Operating Cash Flow Ratio=

Total Cash Flow from Operation / Current Liabilities

Table 5.12

Particulars 2014 2013 2012

Total Cash Flow From 58,701,161 / 78,148,082 / 2,031,538 /
473,676,156 425,160,902 372,208,358
Operation / Current Liabilities
= .12 Times = .18 Times =.0054

Working for 2014:

Current Liabilities = Bills payable + Borrowings + Deposits and other accounts + Other
Liabilities
Current Liabilities = 10,265,537 + 426,400,470 + 24,601,822 + 12,408,327
Current Liabilities = 473,676,156

Operating Cash Flow Ratio =Total Cash Flow from Operation / Current Liabilities
Operating Cash Flow Ratio = 58,701,161 / 473,676,156
Operating Cash Flow Ratio = .12 Times
Working for 2013:
Current Liabilities = Bills payable + Borrowings + Deposits and other accounts + Other
Liabilities
Current Liabilities = 8,201,090 + 361,671,877 + 43,612,813 + 11,675,122

Current Liabilities = 425,160,902

Operating Cash Flow Ratio =Total Cash Flow from Operation / Current Liabilities
Operating Cash Flow Ratio = 78,148,082 / 425,160,902
Operating Cash Flow Ratio = .18 Times

Working for 2012:

Current Liabilities = Bills payable + Borrowings + Deposits and other accounts + Other
Liabilities
Current Liabilities =10,551,468 + 322,693,100 + 216, 134, 65 + 17,350,325

Current Liabilities = 372,208,358

Operating Cash Flow Ratio =Total Cash Flow from Operation / Current Liabilities
Operating Cash Flow Ratio = 2,031,538 / 372,208,358
Operating Cash Flow Ratio = =.0054

Fig. 5.12
0.2

0.15

0.1

0.05

0
2013 2013 2014

It shows company’s liquidity in short term. If the operating cash flow ratio is less than one, it
means that the company has generated less cash over the year than it needs to pay off short term
liabilities as at the year end.
5.13 Dividend per Share
Total Dividend / No of outstanding shares

Table 5.13

Particulars 2014 2013 2012

Total Dividend / No of 8,567,547 / 760,215 6,735,510/ 691104.5 9,834,181/ 628276.8
outstanding shares
= 9.74 Rs = 15.65Rs.
= 11.26Rs.
Working for 2014:
Dividend Paid = 8,567,547

No of outstanding shares = 7,602,150 /10 = 760,215

Dividend per Share = 8,567,547 / 760,215

Dividend per Share = 11.26Rs.

Working for 2013:

Dividend Paid = 6,735,510
No of outstanding shares = 6,911,045 /10 = 691104.5
Dividend per Share = 6,735,510/ 691104.5
Dividend per Share = 9.74 Rs
Working for 2012:
Dividend Paid = 9,834,181
No of outstanding shares = 6,282,768 /10 = 628276.8
Dividend per Share = 9,834,181/ 628276.8
Dividend per Share = 15.65Rs.

Fig. 5.13
16
14
12
10
8
6
4
2
0
2012 2013 2014

It shows the profit distribution to the shareholders. It is maximum in 2012 as compared to

2013and 2014. Having a growing dividend per share can be a sign that the company's
management believes that the growth can be constant.
5.14 Earning per Share=
Net Income / Number of Share Outstanding

Table 4.14
Working for 2014:
Particulars 2014
Net Income / Number of Share 16,872,126 / 760,215
Outstanding
= 22.19 Rs
Net Income
No of outstanding shares =
Earning per Share
Earning per Share
Working for 2013:
Net Income
No of outstanding shares =
Earning per Share
Earning per Share
Working for 2012:
Net Income
No of outstanding shares =
Earning per Share
Earning per Share
2013 2012
15,665,403 / 15,323,227/ 628276.8
691104.5 = 24.38 Rs
= 22.66Rs
= 6,872,126
7,602,150 /10 = 760,215
= 6,872,126 / 760,215
= 22.19 Rs
= 15,665,403
6,911,045 /10 = 691104.5
= 15,665,403 / 691104.5
= 22.66Rs
= 15,323,227
6,282,768 /10 = 628276.8
= 15,323,227/ 628276.8
= 24.38 Rs

Fig. 5.14
24.5
24
23.5
23
22.5
22
21.5
21
2012 2013 2014

EPS is important measures of a firm’s strength. Higher the ratio means that the more money the
firm is making. According to the graph in 2014 the EPS ratio is very low but
In 2013 and 2014 this ratio is going to be high due to the enhanced performance of the company.
5.15 Price/Earning Ratio=
Market Value per Share / Earning per Share

Table 5.15

Particulars 2014 2013 2012

Market Value per Share / 228.54 / 22.19388726 219.68 / 22.66719867 125.81 / 24.38929306
Earning per Share
= 10.29 Rs = 9.69 Rs = 5.15 Rs

Working for 2014:

Market value per share = 228.54
Price/Earning Ratio =228.54 /16,872,126 / 760,215
Price/Earning Ratio =228.54 / 22.19388726
Price/Earning Ratio =10.29Rs
Working for 2013:
Market value per share = 219.68
Price/Earning Ratio = 219.68 / 15,665,403 / 691104.5
Price/Earning Ratio =219.68 / 22.66719867 Rs
Price/Earning Ratio =9.69Rs
Working for 2012:
Market value per share = 125.81
Price/Earning Ratio = 125.81 / 15,323,227/ 628276.8
Price/Earning Ratio = 125.81 / 24.38929306 Rs
Price/Earning Ratio = 5.15 Rs

Fig. 5.15
12

10

0
2012 2013 2014

Most widely used it compares the current price with earnings to see if a stock is over or under
valued. Generally a high ratio means that investors are anticipating higher growth in the future as
like in 2014.
 CHAPTER # 07

CONCLUSION

After privatization of the profitability and performance of the MCB bank has increased. The ratio
analysis of last three years and financial statements of MCB banks stated that it making progress
by leaps and bounds. The profit of MCB has grown considerably during the last three years and
this trend is expected to continue into the future.

Hence, we conclude MCB has a very successful present and future, and which give surety to the
investor of wealth maximization. In my experienced I got some negative feeling about banking
workforce is always looking for more deposits rather than improving banking client’s services.
Other experienced about is that there is shortage of staff and also observed that mostly staff
member have limited knowledge and experience that leads to performing only routine task.
Basically MCB is always looking for to create better relationship with their customer but here
the some employees not follow that guide lines. MCB is searching for something new services or
something extra for customer but, still ATM facilities not available in most of the branches.
 CHAPTER # 08

SUGGESTIONS AND RECOMMENDATIONS

MCB is performing well. Because its profitability and deposits rising constantly. However, the
following suggestion will help to improve the banking business.

 Bank can increase its profit ratio by reducing extra expenditures and enhance the volume
of advanced especially retail loans
 Payment of salaries and pensions should be made separately to accommodate the valued
customers and depositors
 Attracting and Retaining the old customer by making investment in new technology like
ATMs, mobile banking facilities, which made services easier, quicker and cheaper more
flexible.
 Staff turnover should reduce especially the trained staff because that leads to financial
losses
 During the rush days Extra counters should be established in order to facilitate the
customer
 Foreign braches should opened in order to confine the international market
 All the departments should be established separately.
 I suggest that the banking sector should give some incentive to tier employee that leads to
improve working condition of the bank.
 I suggested that the management should hire qualified that increase the staff strength.
 It is recommended that proper training be providing to the staff members
 . The process of a transaction should be short in order in save times for both customers
and the bank.
 Bank should established separate counters for the senior citizens
 Refresher course should be given to employees that can leads to adjust according to
current environments
 The bank should improve environment and atmosphere to attract the customers.
 The bank should increase profit rate on deposits