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The aim of this project was to prepare a stock valuation report for a company and to analyze whether it would be favorable for investors to buy its shares considering the current economic situation in the worlds in general and in Pakistan in particular. The following research has been done on Muslim Commercial Bank Ltd. This report includes a thorough analysis of the banking industry which is currently characterized as being one of the highest growing and best performing sectors of Pakistan. In order to determine whether it would be profitable for investors to buy the stock of MCB, we conducted, in depth Fundamental and Technical analysis. The fundamental analysis includes the trends in various financials of the company such as sales, profits etc. Furthermore this analysis includes a detail ratio analysis which further provides insight into the performance of the bank. Also the intrinsic value of MCB was calculated in order to determine whether its price was over or under stated in the market. The technical analysis includes studying the price trend of MCB over the past few years and with the help of moving averages and Bollinger bands the decision to buy or sell MCB stock was made. After conducting the fundamental and technical analysis, it was concluded that it would be favorable for investors to buy the stock of MCB. The reasons supporting this decision include increasing trends in Profit Margins and Earnings per Share (EPS) of the company. Furthermore MCB’s dividend payout ratio has been on the rise giving another signal to potential investors to buy its share. The intrinsic value calculation also shows that MCB’s price is undervalued in the market and is most likely to rise. Last but not the least the technical analysis charts also gives a buy signal to investors.
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 222 MCB ATMs in 41 cities nationwide and a network of over 12 banks on the MNET ATM Switch.. MCB has been awarded as a Euromoney Award 2008 for the "Best Bank in Asia" The Chairman of MCB is Mian Mohammad Mansha and the President / CEO is Mr. Atif Aslam Bajwa. MCB is one of the leading banks of Pakistan with a deposit base of about Rs. 280 billion and total assets of around Rs.300 billion. Incorporated in 1947, MCB soon earned the reputation of a solid and conservative financial institution managed by expatriate executives. In 1974, MCB was nationalized along with all other private sector banks. The Bank has a customer base of approximately 4 million and a nationwide distribution network of 1,026 branches, including 8 Islamic banking branches, and over 300 ATMs, in a market with a population of 60 million. During the last fifteen years, the Bank has concentrated on growth through improving service quality, investment in technology and people, utilizing its extensive branch network, developing a large and stable deposit base. MCB has become the only bank to receive the Euromoney Award for the fourth time in the last five years. MCB won the “ Best Domestic Bank Of Pakistan” in 2005,2004,2003,2001,2001 and Also in 2008. In addition MCB also has the distinction of winning the Asia money 2005 & 2004 awards for being the “The best domestic commercial bank “ in Pakistan . 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 bank was restricted its asset portfolio and nationalized the cost structure in order to remain a low cost producer. In this report various aspects of the bank including its products, services ,financial services, consumer banking, corporate banking and profitability have been studied.
I have learnt a lot in KOT KHAN MUHAMMAD BRANCH about Opening of Accounts, Clearing and Transferring of Cheques, Issuing the Cheques Books, Demand Drafts other Documents etc. The exposure has given me a lot of knowledge especially about consumer banking operations in branch. Bank was previously working on MIB’s software I went the branch of Muslim Commercial Bank for my internship training . It is a part of our MBA’s training at well established organization. Bank is well suitable for it. This branch is opened in 2008. This branch is situated at Satiana road Faisalabad. Major customers of this branch are businessman, employees of diffirent pulic and privete organizations, salaried and non salaried persons.
INTRODUCTION KOT KHAN MUHAMMAD BRANCH FAISALABAD
I went the branch of Muslim Commercial Bank for my internship training . It is a part of our MBA’s training at well established organization. Bank is well suitable for it. This branch is opened in 2008. This branch is situated at Satiana road Faisalabad. Major customers of this branch are businessman, employees of diffirent pulic and privete organizations, salaried and non salaried person
Majority of accounts are PLS, current and BBA account, enhance saving account and saving extra account. Total worth of accounts opened in this branch = 50000000 This branch has diffirent accounts: 300 BBA Account whose worth = 18138000 269 PLS Account whose worth = 16263740 238 Current account whose worth = 14389480
BENEFITS OF ACCOUNTS:
only. L o w m i n i m u m b a l a n c e CURRENT ACCOUNT 5 .1. No monthly account maintenance charges. BBA ACCOUNT Open a Basic Banking Account with as little as Rs.* Unlimited free withdrawal transactions through MCB 's ATMs. Two free deposits per month (including cash and clearing). Use your MCB Smart Card to shop at thousands of merchant outlets across Pakistan 2.1000/.* Two free withdrawals per month (including cash and clearing). Unlimited transactions through Virtual Banking.
Lockers and other affordable transactional facilities.r e q u i r e m e n t s . Use your MCB SmartCard to shop at thousands of merchants across Pakistan. SAVINGS ACCOUNT Low monthly average balance requirements. P r o f i t p a i d i n 6 . 3. Unlimited cash deposit and withdrawal facility at hundreds of branches nationwide.
Use your MCB SmartCard to shop at thousands of merchants across Pakistan. SERVICES OFFERED BY KOT KHAN MUHAMMAD BRANCH Following are some products of KOT KHAN MUHAMMAD BRANCH that are 7 . Locker facility at economical rates. Unlimited cash deposit and withdrawal facility at hundreds of branches nationwide.t o y o u r a c c o u n t e v e r y s i x m o n t h s .
introduced by Musing Commercial Bank after privatization. 1) MCB RUPEE TRAVELLER CHEQUE: MCB Rupee Travelers Cheques are as good as cash, infact better. Better because with Rupee Travelers Cheques you have the power to purchase and a feeling of security that should you lose them, you will get a refund. MCB Rupee Travelers Cheques are accepted at major shops, travel agents, hotels, business establishments and MCB branches all over Pakistan. You don't have to be an MCB account holder to buy the Rupee Traveler Cheques. Anybody can purchase them. It's a safe and convenient way to conduct everyday business. At a time when thefts and robberies are on the increase, you are better off carrying Travelers Cheques rather than money. 2) MAHNAMA KHUSHALI SCHEME: A 5- year fixed Deposit Scheme, targeted to persons with small savings who would desire a regular monthly return on their investment. SALIENT FEATURE: a) Minimum amount of investment shall be Rs.0.010m and the maximum amount of investment would be Rs. 1.000m. b) Khushali Certificates can be purchased by individuals (singly or jointly) or by the Proprietorship/Partnership concerns or Companies, etc. in their name c) The Khushali Certificate will be of five years maturity. d) The interim rate of profit offered will be minimum 1% per month. If the profit declared by the bank is higher, additional profit will be paid. e) Zakat will be deducted wherever applicable on yearly basis whether you will be receiving your profit or encashing your certificates. f) As per Government Directions, tax on the profit / return is to be deducted by MCB
branches at the time of payment. 3) MCB KHUSHALI BACHAT ACCOUNT: FEATURES: a) 8% rate of return per annum. b) Returns calculated on daily. c) Average balance and paid half yearly. d) Introduced first time in Pakistan. e) The facility of helping account holders pays utility bills (electricity, telephone and gas) through their account. No queues. No delays.
4) PRIME CURRENCY ACCOUNT SCHEME: Launched to attract deposits in foreign currencies. US Dollars, Pound Sterling, Euro and Japanese Yen. FEATURES: a) Owing foreign currency account under the Prime Currency Scheme allows you to earn attractive rates of interest in foreign currency. b) You have a choice between opening this account in your personal name and opening it under joint names. c) Whether you are a resident or a non-resident Pakistan, MCB Prime Currency Scheme invites all to operate a foreign currency account. d) Foreign nationals and foreign companies can also open a foreign currency account under the Prime Currency Scheme. e) Your foreign currency account can be opened in four global currencies: The United States Dollar, the Pound Sterling, the Japanese Yen and the Euro. f) Travellers Cheques and Foreign Currency Notes can also be issued to holders of persona! and Joint accounts.
g) Remittance from abroad, Travellers Cheques, Foreign Currency Notes and Foreign Exchange generated by encashing F.E.B.Cs may be deposited in these accounts. h) Rupee Loan facility will also available against this account. i) You can draw any amount of foreign exchange from your foreign currency account and transfer or remit the amount freely to any part of the world without any restrictions. j) The restrictions imposed by the State of Pakistan for the opening of foreign currency accounts in case of passport; Work-permit and resident Visa have been withdrawn. Your account will be restriction free. k) The Prime Currency Scheme is exempt from al! forms of taxes including Income Tax, Wealth Tax and Zakat deductions. l) MCB Prime Currency Scheme is a world in itself. MCB - committed to working for your convenience - offers the foreign currency account facility at more seventy of its branches all over Pakistan. 5) HAJJ MUBARAK SCHEME A saving scheme, of 2/3 years duration, for the convenience of persons, with a limited income, who desire to perform Hajj was introduced. Under the 2 years scheme, a monthly deposit of Rs.1800 is required, whereas under the 3 years scheme, the required monthly deposit is only Rs.1200. 6) CAPITAL GROWTH CERTIFICATE SCHEME: For long term depositors under which the amount deposited almost doubles at the end of 5 years. For the scheme, the minimum amount of deposits is Rs. 10000 while there is no maximum limit. In case of premature encashment of the certificate, the depositor will profit at the same rates as that of PL Saving Account. 7) FUND MANAGEMENT SCHEME This scheme is offered to corporate and customers and is aimed at providing better rate of
return up to 15% per annum. One of the objectives of the scheme is to develop secondary market for Government Securities. 8) CONSULTANCY SERVICES: In the process of privatization of public sector units, prospective buyers need professional assistance and MCB, with its expertise, offers to them specialized service for valuation of the market value of the industrial unit, preparing bid documents and arranging finance for the purchase of the unit.
9) SELF SUPPORTING SCHEME: For the benefits of genuine worker/borrowers who are poor and needy and for small entrepreneur the bank as evolved a self supporting scheme: maximum amount of loan Rs.25000 and minimum Rs.5000 per individual. Loan will be totally free of mark-up. 10) FAX PRESS This product was first of its kind introduced by using modem technology of The Fax Machine. It facilitates speedy transfer of funds within Pakistan. The service guarantees transfer of from one city to another, within an hour.
11) NIGHT BANKING SERVICE:
view your ministatement and do the following: • • • • • • Recharge Prepaid Mobile Connections Pay Postpaid Mobile Bills Pay Utility Bills Transfer funds instantly (to any MCB account) Pay MCB Credit Card Bills Make Donations and lots more… 12 .For the convenience of the account holder. service has. 1. 12) UTILITY BILLS COLLECTION With the aim of extending this service to wider range of customers. been introduced at busy commercial centers. MCB Mobile 2. Traders and other clients can now make deposit. MCB MOBILE Banking at your fingertips.00PM. with case. especially. MCB Mobile is a brand new way to check your account balance. at such centers up to 8. Dial in anytime to get information regarding balance and mini statements. Islamic Banking Services 13. the number of MCB branches collecting Utility Bills more than 900.
Mini-Statement You can view the last six transactions on your linked bank account at any time of the day or night. (Beneficiary does NOT have to be a registered MCB Mobile user). You can do this by providing the complete 16-digit MCB account number or the 13 digit ATM card number of the beneficiary.Services Balance inquiry You can retrieve your account balance for your linked account. making it easier for you to manage your money. Fund Transfers You can send money to anyone with an MCB Bank account. Purchase Top-ups for Prepaid Connections You can now conveniently purchase prepaid airtime and top-up the credit in your or someone else’s mobile phone for all of following mobile connections: • Mobilink 13 .
Pay your post paid bills through MCB Mobile conveniently at anytime for any of the following mobile companies: • • • Mobilink UFone Zong You will need to pay the bills of the following mobile companies through electronic prepaid voucher/scratch card: • • Warid Telenor Pay your Utility Bills MCB Mobile allows you to make payments for a host of utility companies.• • • • UFone Zong Warid Zem Telenor Pay your Postpaid Mobile bills You can forget about the hassle of paying your post-paid mobile bills through customer service centers. schools and 14 .
Karachi Electricity Supply Company HESCO . Donations to the “Prime Ministers Fund of Internally Displaced Persons” are being accepted.Islamabad Electric Supply Company Make your MCB Visa Credit Card Payments You can now make your MCB Visa Credit Card payments easily through this service.clubs among other recurring payment services.Pakistan Telecom Communications Limited IESCO . Maintain Favorites Registered MCB Mobile users can manage their favorite payees i. The ATM card will automatically be de-activated for a period of 24 hours.Hyderabad Electricity Supply Company SSGC .Sui Northern Gas Pipeline PTCL . add or remove utility companies or individual account holders to whom payments and fund transfers are made frequently. more than minimum or the full amount. PYARA GHAR Flexible and competitive home financing facility with options of home purchase.e. 15 . Currently supported companies are: • • • • • • KESC . Report a Lost ATM card Registered MCB Mobile users can report their card as lost using the service.Sui Southern Gas Company SNGPL . More charities will be added in the near future. 14. You have the option of paying a minimum payment. Make Donations You can make donations to your favorite charities through this service in a matter of seconds.
MCB CAR CASH Car financing and leasing at competitive rates with flexible options Carcash finances both semi-commercial and non-commercial vehicles for personal and business use. Lahore and Islamabad regions are working on SYMBOL software. MCB LOCKERS The best protection for your valuables. technological. 18. 19. Now most of the branches located in Karachi. Ijara and Istasana. 15. SAVING EXTRA 16 .construction and renovation. ISLAMIC BANKING SERVICES Islamic banking services through exclusive units/branches offering a range of liability and asset based Sharia compliant products like Musharika. MCB is the leading entity of the country that has always been at the forefront of economical. 17. financial growth and stability. SYMBOLS In the year 2004 bank introduced new latest software “SYMBOL”. Murabaha. Lockers of different capacities are available nationwide. 16.
20. BANCASURANCE To keep ur loved one secures PRODUCTS: • • • • • • • • FLEXILIFE LIFE PARTNER EDU CARE DREAM WEDDING CAPITAL SURE RETIRE EASY INCOME MAX STEP UP 17 .Grow with MCB Xtra by saving more and earning greater profit.MCB Savings Xtra Account offers you a wide range of attractive profit rates.
The Bank has a customer base of approximately 4 million and a nationwide distribution network of 1. The bank was nationalized in 1974 during 18 .026 branches. VII of 1913 as a limited company. During the last fifteen years. including 8 Islamic banking branches. 1947.ABOUT MCB MCB is one of the leading banks of Pakistan with a deposit base of about Rs. developing a large and stable deposit base. MCB was nationalized along with all other private sector banks. The bank was established with a view to provide banking facilities to the business community of the sub-continent. utilizing its extensive branch network. MCB soon earned the reputation of a solid and conservative financial institution managed by expatriate executives. In 1974. investment in technology and people. the Bank has concentrated on growth through improving service quality.300 billion. Incorporated in 1947. in a market with a population of 60 million. Introduction: MCB Ltd formerly known as Muslim Commercial Bank Limited was incorporated by the Adamjee Group on July 9. 280 billion and total assets of around Rs. and over 300 ATMs. under the Indian Companies Act.
Debit card is 19 . cement and insurance. MCB operates the largest network of 170 ATMs and offers the widest range of transactions to its ATM. in a market with a population of 160 million.the government of Zulfikar Ali Bhutto. Debit cardholders. the Nishat Group owns a majority stake in the bank. The group has strong presence in the most important business sectors of the country such as banking. and the largest by market capitalization having a market capitalization of US$4. Mian Mohammad Mansha is the Chairman of the group (and also MCB) and has played instrumental role in its success. and over 300 ATMs.1 billion. customers franchise and brand equity. Nishat Group is one of the leading and most diversified business groups in Pakistan. The Muslim Commercial Bank Limited (MCB) has been declared the best bank in Pakistan by the prestigious Euro-money Awards for excellence 2003.026 branches. President MCB Muhammad Aftab Manzoor received the award at a grand ceremony for global awards on Saturday at the Natural History Museum London. Leadership in Technology. the Government of Pakistan has conferred him with "Sitara-e-Imtiaz". The Bank has a customer base of approximately 4 million and a nationwide distribution network of 1.7 billion. As of June 2008. Founded in 1948. including 8 Islamic banking branches. Mansha’s contribution. The convenience of using ATM. This was the first bank to privatized in 1991 and the bank was purchased by a consortium of distinguished Pakistani corporate groups led by Nishat Group. initiatives in new products and growth in balance sheet have led to sustained overall improvement in operations with a positive impact on financial strength. one of the most prestigious civil awards of the country. The president of the bank is Mr. Atif Bajwa (previously with Citibank). Neil Osborn Managing Director Euro-money Institutional Investors PLC presented the award. In recognition of Mr. MCB is Pakistan’s fourth largest bank by assets having an asset base of US$6. textile.
250 billion. including 8 Islamic banking branches. MCB Bank Limited is Pakistan’s fourth largest bank by assets having an asset base of US$ 6. 300 billion).available on the growing network of Point of Sale (POS) machines at retail outlets. companies as well as large local and multinational concerns. and over 300 ATMs in 41 cities nationwide with a network of over 12 banks on the MNET ATM switch. Corporate clients includes public sector. recently introduced products in Customer Financing. the management of the bank changed its name from Muslim Commercial Bank Limited to MCB Bank Limited (MCB). 20 . which would help in cost effective products delivery to customers including e-banking. and the largest by market capitalization of US$4.1 billion. MCB now focuses on three core businesses namely Corporate. Besides. MCB Bank has a customer base of approximately 4 million which in turn gives the bank a deposit base of nearly Rs. Commercial and Consumer Banking. MCB has a nationwide distribution network of 1. It is the largest private commercial bank in the country with a network of around 1000 branches of which 750 are automated and 250 online. In 2005.026 branches. Islamic Banking and Cash Management are focused on meeting the needs of the diversified customer base of MCB. The new core banking solutions is also under implementation. Established over fifty years ago MCB.7 billion (approximately Rs. The Bank’s Rupees Travelers Cheques have been market leaders for the past seven years. Mobile Phone Banking is another unique free service being offered by the bank.
In 1956. the bank transferred it Registered office to Karachi where the Head Office is presently located.After the partition of the Indo-Pak subcontinent . Thus the bank inherits a 52 years legacy of trust on its customers and the citizens of Pakistan.08%.1947. The Bank’s asset quality is strong with a gross NPL ratio of 4.4 billion (US$270 million) and generated a return on average equity of 38% and a net interest margin of 8. The bank started corporate life in Calcutta on July 9. 21 .7% and provision coverage of 100%. MCB is not an overseas success story. utilizing its extensive branch network. During the last fifteen years. In 2007.HISTORY OF MUSLIM COMMERCIAL BANK Muslim Commercial Bank Limited unfolds 52 years growth. MCB reported a profit after tax of PKR16. investment in technology and people. the Bank has concentrated on growth through improving service quality. developing a large and stable deposit base and managing its non-performing loans via improved risk management processes.the bank moved from Dhaka from where it commenced business in 1948.
one of Pakistan’s premier financial services groups. advised by Merrill Lynch. and a premium of 12. whereby Maybank will acquire up to 20% of the ordinary shares in MCB from Nishat Group.In 2005. 2008. 22 . the purchase price represents an implied price to book value multiple of 5. The acquisition is in-line with Maybank’s strategy. In 2008 the head office of MCB was shifted to Lahore in a newly constructed building. a price to 2007 earnings multiple of 18. Maybank initially acquired from Nishat Group 94.9% to the average closing share price for MCB over the 30 trading days immediately preceding the date of this announcement.241.4% premium to MCB’s closing share price of PKR 422 on May 2. became the fourth Pakistani company (the other three being Hubco. as Malaysia’s financial services leader in the region. Maybank and MCB sponsors Nishat Group signed an agreement. In May 2008 Malaysian bank. located at Sharea Ghous-ul-Azam (formerly known as Jail Road) from Karachi. MCB. The MCB Tower in Karachi serves as the MCB's headquarters. In July 2008 Maybank exercised its right to increase its stake to 20%. PTCL and Chakwal Cement . to engage Maybank as its exclusive foreign commercial bank strategic partner. the management of the bank changed its name from Muslim Commercial Bank Limited to MCB Bank Limited (MCB). representing a 15% stake in the Bank. to build its presence in key growth markets across the region. Based on MCB’s December 31.527 ordinary shares in MCB. namely MCB House. and is also the tallest building in Pakistan. The purchase price represented a 11. The total consideration paid was approximately US$686 million.they all have been delisted) to list on the London Stock Exchange when it raised US$150 million global depositary receipts. The reason was to explore international markets as they were facing resistance specially from Western Countries to avail license. It also paves the way for MCB.2x. 2007 audited book value.0x and a price to 2008 earnings multiple of 15. for a cash price of PKR470 per share.13x.
One of these Directors was to be appointed immediately and the second Director will be appointed upon completion of the term of the existing Board. Maybank and MCB are also expected to enter into a business cooperation arrangement which will include.The stake in MCB allows Maybank the right to appoint two Directors to represent its interest on the Board of MCB. 2009. NATIOLIZATION: In January 1974. asset management and SME banking. credit cards. As part of the transaction. Islamic banking. Leveraging Maybank’s leadership and experience in these segments coupled with MCB’s brand and broad distribution network. scheduled to be on March 27. Both Maybank and MCB are also expected to benefit from increased business ties and trade flows between Pakistan and Malaysia. Premier bank limited merged with MCB. the government of Pakistan nationalized MCB following the banks act 1947. Privatization: 23 . Maybank and MCB believe that significant revenue synergies can be attained. retail banking. among others.
4 billion in 2000.7 billion from 30.The export business slightly improves to RS 36. strongly and firmly rooted.1 billion in 2000.introducing the need for privatization of state owned bank companies.0 billion as compare to RS 56. Muslim commercial bank today: MCB today a represents a bank that has grown with time.the group. In term of agreement between the government of Pakistan and the National group . which has effected the confidence of Pakistanis working overseas.7 billion the decline in home remittances business was due to freezing of Foreign currency accounts. a group of leading industrialists of the country by selling 26% shares of the bank. The government of Pakistan transferred the management of the bank to National group.A wave of economic reforms swept Pakistan in the late 1990. 24 . making their holding 50% has purchased additional 24 % shares. In April 1991 MCB became Pakistan’s first privatized bank. in scope and in size. Foreign exchange: The bank conducted import business during the year amounting to RS 54.9 billions from 35. A major financial institution. experience and Pakistan. it symbolizes a fully growing tree evergreen. Home remittances decline to 16.
243 online branches. With over 768 branches. MCB continuously innovates new products and services that harness technology for the customer’s benefit. over 151 Atm ’s in 27 cities nationwide and a network of over 16 banks on the MNET ATM switch.Year 2002 compliance MCB’ s strength lies in providing a technological base at the gross root level of the society with a challenge to educate and assimilate some systems across vast cultural and economic backgrounds. 25 .
there are regional. hub and area managers who are managing and guiding the working of diffirent branches of Bank. 26 . regions and areas. Co-chairman is providing supervision to group heads in the hierarchy.It’s a general hierarchy of bank which is showing about the main authorities of MCB who are controlling its management in PAKISTAN. Bank’s management is divided into different groups.
In doing so .we ensure that our shareholders can invest with confidence in us.Vision Statement To be the leading financial services provider . CORE VALUES Trust Customer focus Innovation Team Work Achievement Social Responsibility. providing innovative and efficient financial solutions to create and nurture long term relationships with our customers.partnering with our customers for a more prosperous and secure future Mission Statement We are a team of committed professionals. 27 .
Representing 8% of total banking sector Asset and deposit market shares 28 . Largest bank in Pakistan. 1040 branches 700 ATM’s. Pakistan 1947 125 cities.9179 employees.Business volume: Snapshot Head quarters: Founded Network Karachi.
100 million. financial control & Audit div. Commercial Banking div. Corporate Banking div. 29 . it has been categorized into three segments with different people handling each category. The different operational departments are Consumer Banking & IT div. Usually includes multinational & public sector companies. Operational Management of the bank is being handled by a team of 10 professionals.ORGANIZATIONAL STRUCTURE As MCB is a banking company listed in stock exchange therefore it follows all the legalities which are imposed by concerned statutes Mr. Treasury management & FX Group and lastly Special Assets Management (SAM) Group. This team is also headed by Mr. Muhammad Mansha. The branches which has a credit exposure of less than Rs. These categories are: a) Corporate Banking b) Commercial Banking c) Consumer Banking A) CORPORATE BANKING: These are branches which have an exposure of over Rs. Banking operations div. Financial & Inter branch div. HR & Legal div. 20 million (excluding staff loans) Usually branches in large markets and commercial areas come under this category. Muhammad Mansha is chairman & chief executive of the company with a team of 10 directors and 1 vice chairman to help in the business control and strategy making for the company. B) COMMERCIAL BANKING. Credit management div. 100 million but having a credit portfolio of more than Rs. For effective handling of branches.
Recently the organizational structure was re-designed as follows: Province wise branches Corporate Consumer Commercial 20 branches 637 branches 383 branches NUMBER OF BRANCHES IN DIFFERENT LOCALITIES Punjab 632 Sindh 232 NWFP 123 Blochistan 34 Azad Kashmir 19 Domestic 1040 Overseas 4 EPZ 1 Total 1045 Sri Lanka 3 Bahrain 1 Furthermore. 20 million and these include all the branches which are neither corporate nor commercial branches.C) CONSUMER BANKING These are the branches which have exposure up to Rs. the bank has some proposals under consideration to open more brances in some European countries and as well as in japan & china 30 .
AVP.. And for this 31 ..…………………… Branch (VP.…………………… Zonal Office Branch Manager ……….…………………… Regional Office Zonal Head (VP) ………..MEDIOCRE LEVEL MANAGEMENT The organization chart within a department and in different offices is as follows: Divisional Heads ………. 2.…………………… Head Office Regional Head (EVP) ……….. GRADE 1. 3) FIELDS OF ACTIVITIES OF MCB The purpose of banks is to provide some services to the general public.
trustee or attorney for the customers. The main functions and services which Muslim Commercial Bank Limited provides to different peoples are as follows. ‘Providing safe custody and facilities to keep jewellery. few of those are as under: a) Collecting cheques and bill of exchange for the customers. d) Acting an executor. documents or securities. The Muslim Commercial Bank (MCB) is a commercial bank. in modern time commercial banks play a very important role and their functions are manifold. pensions and other sum due to customers.purpose different banks provide different services to the people in different forms. b) Collecting interest due. f) Accepting bills of exchange on behalf of customers. dividend. i) Furnishing trade information and tendering advice to customers Board of directors 32 . c) Transfer of money from place to place. g) Purchasing shares for the customers. h) Undertaking foreign exchange business. e) Issuing of travelers cheques and letters of credit to give credit facilities to travel. 1) Open Different accounts for different peoples 2) Accepting various types of deposits 3) Accepting various types of deposits 4) Granting loans & advances 5) Undertaking of agency services and also general utility functions.
1. Charted accountants 33 . Mr Raza Mansha 6. Mr Shahzad Saleem 5. Mr S. Mr Muhammad Aftab Manzoor Auditors A. Sheikh Mukhtar Ahmad 3.M. Mian Umar Mansha 8. Muneer Chairman and chief executive Vice chairman Directors Nine directors are 1. Mr Tariq Rafique 2. Some directors are the personnel of MCB and others are successful business person and executives of their major organization. Mr Muhammad Arshad 4. Ten members are included in the board of directors.F Ferguson and Co.Mian Muhammad Mansha 2. Mr Sarmad Amin 7.The board of directors has the authority in guiding bank affairs and in making general policies. Mr Mushtaq Ahmad Malik 9.
1 Chandigarh Road.M Yousaf Adil Saleem and Co. 34 .Karachi Competitors Nationalization of banks in the seventies was a major upset to the domestic banking industry of the country. which changed the whole complexion of the banking industry. !. Charted accountants Legal advisors Mandviwalla & Zafar Advocate and legal consultants Pricipal office Adamjee house 2nd floor.
1. Nationalization of banking industry was accompanied by violent changes in the external value of rupee. They ceased to be a business concern and became big bureaucracies.Public Sector Commercial Banks: 35 . Specialized banking institutions were already working in the public sector. This was accompanied by indiscreet loaning under political pressure. The commercial banks thus lost their asset management equibilirum. initiative and growth momentum. dedicated and industrious workers in the realms of domestic banking industry. Non performing loans Higher intermediation cost Loss of initiative and entrepreneurship The rise to labor unions and officers association made life tough and working conditions ugly to honest. and with this change started the disaster. They suffered from 3 terminal diseases.With irrational decision at the top the commercial banks were made subservient to the political leadership and the bureaucracy. The new accountability paradigm change the business ethics in the banking industry.
Local Private Banks: 36 . The public sector bank which constituted the backbone thus continued to suffer because of their approach. which indulge in doubtful policies to promote the business. Mehran bank is the prime example of that kind of tax banking in the country wsich ultimately merged into NBP i. 2. size and carried over liabilities.National bank of Pakistan First Women Bank Limited The Bank Of Khyber The Bank Of Punjab NBP FWB KB BOP The government of Pakistan permitted small private sector banks to operate.e last resort of domestic banking sector.
My Bank Limited Bank al Falah Bank Al Habib Askari bank Fysal Bank Metropolitan Bank Saudi Pak Bank PICIC Bank Soneri Bank Allied Bank Atlas Bank In the mean while western bank started entering into business. They with the support of ruling elite. This reduced the profitability of the local banks. 37 . leaving the routine business to the local banks. concentrated on big business.
The Bank of Tokyo Mitsubishi 5. Punjab Provincial Corporative Bank.Specialized banks: 1. Al Baraka 3. CITI Bank 6. American Express 4. 4. Habib Bank A. Standard Charted Bank 10. 38 . Rupali Bank. Oman Bank 9. Doha Bank 7.G Zurich 8. Industrial development of Pakistan 3. ABN Amro 2. Zari Taraquati Bank 2.Forign Banks: 1.3.
the Bank pushed the products with full thrust. The Bank has also launched a running finance facility against mortgage of property. 39 .MCB’ s Competitive Strategies To be competitive the Bank has further reinforced its position in the Consumer Banking arena by streamlining and re-launching the consumer financing products and introducing more convenience based solutions. With the re-launch of auto finance and house finance products.
Similarly. which were confined only to current account facility. both individuals and companies. Similarly. those relationships. have grown into stronger business relationships. The Bank plans to further expand its Islamic Banking branch network to other metropolitan areas and also to introduce new sharia compliant banking solutions to a wider range of customers for satisfying their individual and business needs. MCB also had the privilege of being the first Bank in Pakistan to launch the comprehensive bill payment facility through its alternate delivery channels which include Internet Banking. The Bank introduced more IT based products to cater to the changing lifestyles and needs of the customers. The Islamic Banking initiative has been very successful in attracting new customer. The branch network was expanded to Lahore and Multan during the last year and recently been extended to Hyderabad and Faisalabad. Furthermore. 40 . the Bank also took initiatives to increase the usage of debit facility. handling trade transactions of select countries in the Asia-Pacific region. A private company has been formed in Hong Kong (fully owned subsidiary of MCB) in partnership with Standard Chartered Bank. ATMs and MCB Call Centre. feasibility is also being carried out for entering other international markets. currently with six payment partners. MCB has also provided a new look to its website which is user friendly and considerably easy to browse.Technology continued to play an important role in improving and expanding product offerings. To increase its international presence. To provide timely and updated information. It is projected to earn US$ 1 million in its first year of operations. MCB Virtual-Internet Banking was launched with wide ranging banking solutions for the customers ranging from individual to corporate customers and it has become the most preferred Internet banking solution in the country. the Bank will be opening its representative office in Dubai and entering into major strategic alliances with banks in the UAE/ especially for marketing our consumer banking products to nonresident Pakistanis. Some wide-ranging new strategic initiatives were also taken up which will be important for the Bank in years to come.
enhancement of customer service standards. The Bank will also be implementing the full suite of the latest version of SYMBOLS Version 8. retaining and motivating outstanding people.MCB's operations continued to be streamlined with focus on rationalization of expenses. process efficiency and controls. Management of Human Resources has been one of our core focus areas. The Bank introduced 'reward for performance' where high potential officers were identified and rewarded accordingly. MCB Bank will run SYMBOLS eFinance modules to deliver personalized services to its customers over multiple delivery channels. In view of the competitive environment. MCB is also strongly committed to training its staff at all levels. Challenge for MCB is to provide an environment in which employees can better realize their potential.retaining its market leadership as Pakistan's progressive Bank. By implementing SYMBOLS. the Bank is focusing on performance and introducing a more robust performance management system. expertise and reduce delivery cost. while SYMBOLS Enterprise Operations Center will serve as its core banking transaction-processing engine. MCB Bank aims to raise the level of its customer service and its time to market in new product offerings for its three core banking businesses in Corporate. The Bank has taken the lead in introducing the innovative concept of centralizing Trade Services in the country by providing centralized foreign trade services to branches with a view to improve efficiency. re-alignment of back-end processing to increase productivity. MCB is committed towards attracting. Commercial and Consumer Banking . 41 .
" With an ever growing number of ATMs operating across the nation. Anytime in Pakistan and abroad. "It Works. PRODUCTS OFFERED BY MCB 1.Hour Smart Card. the MCB ATM 42 .MCB ATM SERVICES MCB ATM Card Welcome to a world of convenience with the MCB ATM 24.
at home or abroad Card Categories MCB ATM Regular Card The MCB ATM Regular Card allows withdrawal of up to Rs. The convenience of accessing your account balance information and mini statements whenever you want or wherever you may need them. So go ahead! Use your MCB ATM 24. And now the MCB ATM has gone global. 10. with comfort and peace of mind. At the forefront of technological excellence. 25. 24 hours . The cardholder has to make at least two transactions to withdraw the full amount of Rs. 43 . MCB SMS Banking service is available to all MCB ATM cardholders.365 days.Hour Cash Card day or night. Just call our Help Line on 111-000-MCB(622) or any MCB online branch for assistance. 25.Network is the largest and most advanced of its kind in the country.000.000 per day and a maximum of 6 withdrawals per day per card. and is part of MCB's continuing efforts to provide you with convenience that suits your requirements most. MCB proudly introduces MCB SMS BANKING.000 per day and a maximum of 3 withdrawals per day per card. MCB's affiliation with Master Card International brings about added facilities for the MCB traveler abroad with the Cirrus and Maestro networks. MCB ATM Gold Card The MCB ATM Gold Card allows withdrawal up to Rs.
CALL CENTER Our well-abreast and friendly call center team is available 24 x 7. Banking at your Fingertips With MCB SMS Banking you can: Check your balance View the last 4 transactions of your MCB account(s).BILL PAYMENTS 44 . 3 . 365 days a year to ensure that your daily financial obligations are taken care of guaranteeing you a good night’s sleep. including all holidays. All you pay for is the cost of an SMS message if charged by the service provider 2. A Free Service MCB SMS Banking is a free service for MCB account holders who have an ATM card.SMS Banking at a Glance MCB SMS Banking gives you easy and quick access to your account(s) at a time you find convenient.
KESC. Pay as a registered or non-registered user. save your precious time by avoiding long queues and pay your bills through MCB Easy Bill Pay.About MCB Bill Payments MCB easy bill pay offers unmatched convenience to pay your utility and mobile phone bills or re-charge your prepaid mobile phone accounts anywhere. but goes an extra mile Intelligent User Security System 45 . Bill Payments Features Pay your bills 24 hours a day 7 days a week. MCB is the only bank that offers you 3 convenient options of making bill payments to PTCL. HESCO.000 per day. SSGC. Make total payments of up to Rs. MCB VISA MCB Visa is not just another card in your wallet. and Ufone. Mobil ink. IESCO. Mobil ink and Zong as per their fixed slabs. So. It not only provides the conventional credit card services in a manner that is superior in comparison. Carry out up to 10 transactions per day per card. Recharge your pre-paid account for Ufone. Super net. Make either full or partial payments. 20. SNGPL. Full payment is required for PTCL only. Registration will help you avoid the time delay in entering details each time you carry out a transaction. anytime with security and peace of mind.
thus preventing all forms of physical fraud related to your card such as skimming and counterfeiting. You are protected against fraudulent transactions on your card making it a highly secure and effective mode of payment. How can you avail it? This feature is automatically activated in every MCB Visa card. plus gives it the capability of storing large amounts of intelligent encrypted data.Now experience peace of mind of having a credit card free from fraud or misuse! The i-secure feature that all MCB Visa Credit Cards come activated with. An embedded chip makes MCB Visa technologically advanced and efficient. offers you added convenience and absolute safety and security so the next time you shop it is without the fear of credit card scam or misuse. MCB VISA Tired of looking at traditional reward booklets that offer no real value? Not excited about reward programs that first make you wait for it forever and then make you follow a 46 . Your card uses cutting edge encryption methods to operate.
an intelligent reward monitoring and redemption system that not only lets you accumulate party points every Tired of looking at traditional reward booklets that offer no real value? Earn MCB Party Points: Know about your MCB Party Points: Worth of your MCB Party Points: Pay using MCB Party Points: Enjoy Fabulous Discounts & Surprise Gifts: Earn MCB Party Points: You earn 1 party point for every Rs. Looking on the charge slip you get after the transaction at MCB merchant outlets. you can find out about accumulated Party points. by: Doing a Balance Enquiry at all MCB merchant outlets. you accumulate these directly on your card. Looking at your monthly credit card statement. 50 you spent on your MCB Visa. Calling the MCB Call Centre at 111-000-MCB (622). When you spend with your principal or supplementary cards. Worth of your MCB Party Points: 47 . Know about your MCB Party Points: Using the Chip in your MCB Visa.cumbersome process of getting these rewards? MCB Visa brings to you i-party.
Pay using MCB Party Points: You can purchase whatever you want from selected merchant outlets and settle the amount by redeeming your MCB Party points.40) Rs 4000. You can use them to pay for your shopping. You have the option of making full or partial payment using these points at any MCB Party outlet without any difficulty. Convert any retail transaction of PKR 3000 or more in easy equal monthly payments at lower markup rate. The simple process to pay using your MCB party points is as follows: i-plan: Intelligent Installment Plan System Buy now and pay off later in easy and affordable monthly installments! With the i-plan on your MCB Visa Credit Card you can: Convert any retail transaction of PKR 3000 or more in easy equal monthly payments at lower markup rate. So if you have 10.000 party points.000 x 0. their monetary value is (Rs 10.40.These party points are just like cash. 48 . Each party point is worth Rs 0.
You can also choose from a tenure ranging from 12 to 36 months and pay the nominal markup rate of 17. 12. How can you avail it? Contact our 24 hour Call Center at 111-000-MCB (622) to convert that transaction onto iplan. 18. or 1(b) Fill out the Order Form and Drop it any MCB Drop Box Location. How to order your selected product(s)? 1(a) Contact our 24 Hour MCB Call Center at 111-000-MCB (622) to place an order for the product(s) of your choice. Only valid for retail transactions. 2 Book your Product through i-plan and take advantage of 0% markup options for 3 6 & 12* months.(* Where applicable) MCB VISA 49 . 30 or 36 months. 6.93% upto 21.Select payment tenures of 3. 24.28%.
Just dial for it! Using i-dial on your MCB Visa Credit Card you now have an instant personal loan within your reach.12. A cover of up to PKR 40.6. Wallet Protection: Coverage against financial loss due to: • Fraudulent Credit Card Transactions Theft or robbery incurred by transactions done fraudulently on your card. MCB Visa with i-insure gives you the most flexible and comprehensive options to cover your family and yourself against those contingencies. Pay back in easy. equal monthly installments of 3.000 is provided under this option.18. And that too by just paying a very nominal monthly premium for your chosen insurance plan. • Loss of Identification Documents 50 . MCB VISA Life is too precious to be spoilt by unforeseen events and mishaps.You need cash and want to pay back in installments. Travel Inconvenience (Complimentary): Covers you against trouble of waiting for those unending hours while traveling when your flight gets delayed or you lose baggage.24.30 or 36 months. With i-dial feature: Have a pay order delivered within 3 days to your billing address.
railway. Driving License.Government of Pakistan Identification Papers like Passport. Accidental Travel Insurance (Common Carrier) Covers your family in case of your unforeseen accidental death while traveling in a common carrier (commercial airline. illness or death. Personal Accidental Death and Disability: Covers your family in case of unforeseen event of your accidental death or disability. the outstanding balance on your MCB Visa is insured for payment and costs a nominal percentage (as per the schedule of charges) of your outstanding balance You can also avail Wallet Protection as a separate insurance. • Cash Coverage In case of robbery or theft from your home.000. Life Insurance: Covers your family in case of an unfortunate event resulting in your death or disability. Education Insurance: Your children's education cost will be taken care of in case of an unfortunate event resulting in your accidental death or disability. etc. CNIC. Credit Security: In case of an injury. the amount robbed / stolen will be reimbursed up to a maximum of PKR 10. To sign up for the package of your choice jus MCB VISA 51 . water borne or passenger bus).
keeping you informed anywhere and everywhere through your cell phone. 52 ..How about a credit card that acts like hard cash? MCB Visa is just that card! It comes activated with the i-cash feature enabling you to withdraw up to 75% of your credit limit! All you need to have is your MCB Visa credit card and your unique Personal Identification Number (PIN). It’s that easy! MCB VISA Backed with our promise of jaga jaga. as a basic card member will receive SMS Alerts when Any transaction is done using MCB Visa.. You..har jaga MCB introduces i-alert. Insert your card into any ATM across Pakistan or any of the ATM worldwide where the Visa card is accepted and just follow the simple instructions.
Mini statement is generated(once a month).Payment is made for your MCB Visa. i) For Cash payments ii) For transfer(from one account to another account) iii) For Clearing I) FOR CASH PAYMENTS 53 .. New Promotional offers are introduced on MCB Visa & much much more. WORKING METHOD OF MCB PROCEDURE TO HONOUR A CHEQUE During my internship training in the Muslim Commercial Bank Limited. I observed and found Cheques are received for the following purposes.
• Time of giving token to client. 4) Whether Bearer has cancelled. Note: Payment is also made when cheques of same branch account is presented for transfer to other account in same ranch along with cheque for payment. • Signature of token giver. 54 . On stamp which is put for token their details are as follows: • Token number. When all above matters are satisfied then come to the Token register and check: 1) Token number. 3) Signature of Payee. 6) Match the figure and wordily amount of cheque. 5) Whether Payee account duly is there.Cheques which are presented on Bank counter must be checked in the following way: 1) Date. a) Cash Payment (on the face of cheque). If condition 4&5 exist then check the signatures of Drawer. 2) Signature of Drawer. 2) Cheque number. b) Stamp for Token (on the back of cheque). 3) Amount of cheque. Two stamps are put on cheque. 4) Particulars.
a) Crossing Stamp (face). b) Manager Stamp. cheque number. First of all. Then a performa is prepared in which Bank on whom was drawn. 55 . CHEQUES IN COLLECTION: When cheques received in clearing are intra city then these are controlled under CC. Only in MCB branches. CLEARING Following information is entered in clearing register. CHEQUES FOR CLEARING: There are two stamps put on each cheque. these cheques are recorded in day book then allotted number and then serial number. sent for clearing: a) Crossing Stamp. b) Transfer Stamp (face).II) CHEQUE FOR TRANSFER: When cheques are presented to be sent for collection and drawn on bank situated within the city then there are three stamps to be put on face as well as on back of cheque. amount. After completing that performa cheque is posted along with performa. beneficiary name are recorded. c) Bank Manager Stamp (back).
credit vouchers sent for clearing are entered on the sheet's credit side. d) Cheque number. In clearing register future date and day is putted. b) Name of bank on whom drawn. Cheques are sent to NIFT after taking them on calculator. their total amount along with total number of instruments. 56 . e) Amount. Cheques and vouchers are then separated and Cheques are sent for clearing. Such credits are balanced by giving debits to cheques received in clearing from other branches.a) Name of favoring party. Clearing received is more than clearing delivered then Credit voucher. A summary is prepared and sealed after noting the number of seal in summary.Payment Order For TT. Clearing delivered is more than clearing received then Credit voucher On the same day. c) Branch.Demand Draft PO. At the beginning of the day clearing return sheet is received. Telephonic Transfer DD. Clearing credit vouchers are entered on clearing sheet. the account of beneficiary must be there in branch. Clearing is sent after entering in register. Performa is filled by purchasing party along with cheque or cash payment. 2. DD is also prepared and beneficiary can get payment. First of all. Vouchers are made if 1.
When cheque is received it is first posted in computer section in order to check the balance of account. Along with the signature. ISSUANCE OF CHEQUE BOOK During my period of internship in MCB i observed that when a account is opened then a cheque is issued to customer for drawing his money at per rules. Usually only one cheque book is issued at a time. A cheque book contains ten. The cheque book also carries a requisition slip for the issuance of the new cheque book. twenty five. This slip is duly filled and singed by the customer. the first cheque book is given to the customer only when all the required documents are checked. These are paid in cash or otherwise by cheque. fifty or hundred leaves. Following procedure is adopting for the issuance of cheque. he is provided with cheque book for withdrawals from account. After posting the bank officer calculate tax if National Tax number is not there Commission and postage charges are also calculated. person should also write his full name & address. When a customer opens an account with the bank. however big concerns who need a 57 . The signature of the customer is verified by the bank and new cheque book is issued to the customer and serial numbers of the cheque are duly entered in the book of the bank. However.
one to RTC division. on as these on cheque his books. one copy of deal and ID card copy.per cheque and keeps the cheque The officer keeps and maintains the cheque book register Cheque book inventory and cheque books issued are recorded in this register. RUPEE TRAVELLER CHEQUES: RTCS When RTCs are to be issued payment is received in cash or by cheque.50/. RTCs are issued in consecutive number of face value of Specimen signatures of buyer are taken and clearing slip is in four pages. One is sent to Head office.03% is charged id National Tax number is nor available. Payment is made. advice. one for bank record and one for client. RTCs can be endorsed to other party. Payment will be credited to account of paying party 58 . may ask the bank to stock as number of cheque books in their name book and ready to point for the their name customer. If client wants immediate payment of RTCs then he will bring RTCs with two signatures. The account number for which the cheque book is issued and the number of leaves are also recorded in this register when the cheque book issued an entry is passed in the cheque book issue register. Once receiving party will pay the RTCs along with credit vouchers in their relevant account with Bank. tax @0.number of cheque books at a time. Bank debits the client’s account for excise duty of Rs.2.
Directors report: About Economy of MCB: The world economy faced many stresses in 2008. solvency and profitability of the banking system and the decline in consumer spending fueled a recession that was already in the making due to several other developments in the economy. The declining asset values.The crash of housing market in USA adversely effected the liquidity. The weak regulatory framework and sub prime crisis lead to potential melt down of the banking system which could not only be adverted through a massive injection of public sector resources by the major industrialized countries. rising unemployment and shaky business confidence reinforced in the world wide recession which still continues in 59 .
The bank reviewed its governance structures and has further strengthened the roles of the board.abated in spite of the introduction of stimulus programs by the US and many other developed countries. Pakistan was already experiencing economic and financial problems even before the emergence of the world financial crisis and the economic recession . Revenues grew strongly and considerable advancement has been achieved in expanding our asset base. 60 . Banks performance review: During the year 2008. This was a significant mile stone for the bank and re affirms the efforts and vision of the management position MCB at par with the best international banks.Excessive money creation by bulging budget deficits financed through credit creation and excessive consumer lending in the private sector coupled with rising world oil and food prices and electricity storages in the country had led to sharp rise in inflation in Pakistan which in turn placed pressure on the balance of payments leading to a sharp depletion of foreign exchange reserves and depreciation of foreign exchange. A number of strategic actions have been taken to ensure that we are well positioned for the future and are able to excel in the years to come. management and staff to ensure strict compliance to good governance.MCB was given the award as the best bank in Asia by Euro money.the bank continued to make strong progress in spite of all the difficult market conditions. In 2008.
Trade products division was setup in 2008to increase bank’s share of local and international trade and will assist in identifying and developing new businesses. This partnership will further improve and enhance our business processes and will strengthen our footings on domestic and international frontiers. Going forward the group will continue to provide support to the bank in achieving revenue growth and profitability while focusing on retaining strength of credit portfolio. supporting existing relationship. COMMERCIAL BRANCH BANKING GROUP With its large network of branches continued to drive MCB growth in 2008. They enhanced their sales model through the introduction of a direct sales force team and personal bankers in many branches while continuing to strengthen their customer service quality. offer structured trade finance solutions and launching new products. 61 . The year witnessed a successful restructuring of the agriculture division and this lead to considerable portfolio growth . WHOLESALE BANKING GROUP Has posted strong growth in volumes and revenues in 2008. Cash management will focus on getting a larger share of home remittances and efficient collection.supported by the increase in corporate advances by Rs 47 billion (45 %).Another key development for MCB in 2008 was the acquisition of 20 % shareholding in MCB by Malayan banking Bernard the largest financial institution in Malaysia.
INFORMATION TECHNOLOGY GROUP It continued to focus on enhancing stability of our current infrastructure . ISLAMIC BANKING GROUP It has strengthened its outreach through new branches and the development of specialized liability teams. growth was carefully managed on consumer assets and credit quality.Standardization of equipment was introduced to boost productivity and promote savings. 62 . The group remains committed to broaden its reach in new sectors and will offer new products to serve the needs of the customers.CONSUMER BANKING GROUP It took the lead in broadening our product and customer suit in 2008 as evidenced by the launch of Banc assurance and privilege banking business and further strengthening of our alternate distribution channels. Given the high interest environment.
strengthen financial controls. enhance transperancy. BOD continued to take steps to improve governance in the bank. The co ordination between the staff management and board was further enhanced to improve effectiveness of bank operations. promote professionalism increase customer service promote work efficiency and expand bank business. MCB OFFERS ISLAMIC BANKING 63 . utility bills payment through virtual banking were new applications that were introduced as well as rollout of symbols to 663 branches by the end of 2008. HUMAN RESOURCE GROUP This group has remained active in its endeavors to attract new employees and developing existing personal recognizing its people as the true “ competitive advantage” steps have been taken to promote the employee engagement and satisfaction. The board expects to continue to improve governance. The reform and revision in policies initiated in 2007 on the basis of guidelines provided by the State Bank Of Pakistan were carried further and consolidated. OPERATIONS MANAGER These continued to focus on centralization of processes and business continuity.Credit card alerts on mobiles. Internal control division was strengthened and lead the bank wise efforts for compliance to the COSO based internal control frame work.
information technology. Operations. working as Sharia Advisor in our bank since July 2000 is a prominent scholar having Ph. Mission Statement To play a dynamic role in promotion of Islamic Banking and win customers trust by providing sharia compliant financial services. He has attended and addressed several international and local seminars / conferences as guest speaker in Pakistan as well as abroad. Islamic Banking Division and Sharia Advisor. (i.D. Vision Statement To become a leader among Islamic Banks of the country in the coming years capturing major share of the domestic Islamic financial market. Treasury. Finance. Muhammad Zubair Usmani. specialist of Islamic Fiqh and Fatawa).INTRODUCTION Islamic Banking Division was formed with effect from 1st January 2003. Credit & Risk Management.e. has developed sufficient expertise. necessary infrastructure. degree in Islamic Finance as well as Fazil Takhassus from Jamia Darul Uloom Karachi. The objective of this committee is to review the products offered by Islamic Banking Branches. Islamic Banking Management Committee The bank has established an Islamic Banking Management Committee comprising of the senior executives representing various important functions of the bank. such as. 64 . and to improve them not only to make them competitive and practicable but also make them truly Sharia Compliant. and manpower to run Islamic Banking Operation and offer Islamic Banking Products. Dr. which in a short span of time.
Free of cost. 24 hours a day. Muhammad Zubair Usmani and these are further approved and vetted by Dar ul Ifta.Simple . With MCB Virtual Internet Banking you can access any of the banking services. MCB’s Virtual Internet Banking facility is . 7 days a week and throughout the year What do we Offer MCB Virtual Internet Banking offers a wide range of online services which makes your banking accessible anytime and from anywhere 65 .He has also worked as Research Scholar and member of various forums and committees formed for promoting the cause of Islamic Banking in Pakistan and abroad.Secure . where you want to. Majority of the products are signed by Maulana Muhammad Taqi Usman MCB OFFERS VIRTUAL BANKING MCB Virtual Internet Banking offers you the convenience to manage and control your banking and finances – when you want to. Jamia Dar ul Uloom Korangi Karachi.All products are approved by our Sharia Advisor Dr.
Payment/Transfer Alerts for reminding.Detailed Account Summary of all listed accounts. based on the period specified. Immediate or Scheduled Bills Payment. Scheduling of ‘One-Time’ as well as ‘Recurring’ Funds Transfers. as well as to third-party accounts setup as beneficiaries. in advance. Cheque Book Request for any of your listed accounts. who maintain accounts with MCB. Personal Alerts for reminding of pre-specified events and occasions How can you start: Click on the register link on the MCBVirtual Banking page & complete the application form. Bulk Salary Transfer for Corporate Customers. Scheduling of ‘One-Time’ as well as ‘Recurring’ bill payments. Immediate or Scheduled Transfer of Funds between your own accounts. to facilitate them in paying salary to the corporate employees. suggest your MCBVirtual Internet Banking User ID choices and click submit. Payment of utility bills for registered Utility Companies. maintaining accounts with MCB. Statement-by-Period of each of the listed accounts. prior to the processing of specified payments and transfers. Option for ‘Full’ or ‘Partial’ payment based on the payment conditions specified by a particular Utility Company. 66 .
Visit any MCB ATM. Wait a while for the Registration to complete and the appropriate message will be displayed. After verification User ID will be disclosed to you. enabling you to start using the MCB Virtual Internet Banking service. 2. Check your registered email address for the registration confirmation containing your Virtual Internet Banking Password and Customer number. call the MCB Call Centre on (021) 111-000-622 to obtain your User ID. For users living abroad MCB Virtual Banking Registration is a three step process. 67 . Fill out the registration form at our website. With your Customer Number handy. 1. select the option “Service Requests” and on the next screen select Internet Banking Reg. Send in the duly signed AUTHORITY LETTER at the address given below: After we receive your authority letter we will process your application and send you an email containing your password and customer number.
Deposit Department 68 .which in its opinion is suitable as a customer. The process of account opening is very simple and any body like to open the account without any difficulty. 1. The banks reserves the rights to open any account .BASIC FUNTIONS OF MCB GENERAL BANKING The general banking departments performs various functions among them the first and the most important function is account opening.
Clearing Department 8.Advanced Department 7.Credit Administration Department 5. Current account These are non interest bearing account that have a minimum account opening requirement of Rs 10000.No zakat is deducted on the account balance. 69 . Furthermore all current account holders receive a debit card and there are no restriction on the number of withdraws or deposit made to and from the account. RTC Department 1.2.Credit Marketing 4.Deposit Department There are three types of accounts: 1.Trade Finance 6. Remittances 3.
3. however initial deposit must be RS. Saving account cannot be opened by a business corporation . Procedure for opening an account The customer that likes to open an account is required to meet the manager or second officer. This begins with the “ACCOUNT OPENING REGISTER” which can be thought as a customers master file. 5000 and profit is credited on a half yearly basis. a card for specimen signature is also supplied to the customer. Separate color-coded Application form is available for each type of account. the next step is official account opening. But in the case the contract is applicable to both. Maximum 2 withdraws and deposits are allowed by cheque. So that a particular colored form is given to the customer to fill in for opening a related account. BBA (Basic Bachat Account) Bba was introduced by banks on an order by the State Bank Of Pakistan and is current in nature . 1000. The manager records the necessary details into this register details into this register and allot on A/C number form A/C opening register. who will give you the “APPLICATION FORM” specially used for account opening .2. however can be jointly opened by individuals. This register is maintained for each type if account and the a/c no’s are 70 . There are no restrictions on he number of deposits and withdrawal made to and from the account and all account holders receive a debit card as well. There is no minimum balance requirements for BBA. Saving account The account can be opened with the minimum balance requirement of Rs. Manager has very right to reject this contact if he is not satisfied by the details provided by the customers. Along with the form. while there is no restriction on ATM withdrawal.
Current & Saving accounts are opened for: Individual Only one person can operate this account. As I had already mentioned about “Signature Card” .allotted serially. Checking officer is responsible to Tele the manual application form with the computerized A/C opening file. Joint 71 . An individual who can fulfill the requirements of bank can open this account. Bankers uses this card at the time when he receives the cheque. For fixed deposit only that application form is needed that this is prepared manually. he compares customer’s signatures with the signature on the cheque for avoiding fraud. because most of the procedure of deposit is done manually. After opening a saving and current account every applicant’s data is entered into the computer to maintain a safe record and application form is properly filled so that it can available when necessary. This card contains three signatures of an applicant. We can call it a personal and individual account.
Demand draft: These are used to transfer money outside the city. Credit marketing department deals with extending loans to customers before sanction advance SBP. The quality of being credible or trustworthy. A major function of any bank is to “transfer of funds from one place to another” There are 2 main types of instruments that are used to transfer money. Another words we can define credit as trust in one’s integrity in money matters and one’s ability to meet payment when due. Credit Marketing department Credit means belief or trust.In the case of joint a/c applicant mentions that how much person will operate the A/c. 3. 2. 2.REMITTENCES The need of remittance is commonly felt in today’s business. Pay order: These are used to transfer money with city. Instruction are given for joint a/c such that the account shall be operated by the partners. Every 72 . Has prescribed regulations are called “ Prudential regulations”. which are as follows: 1.
Credit Administration Department 73 . i) CREDIT FACILITIES There are 2 types of credit facilities: Funded facilities: These are the facilities in which there is direct involvement of cash funds. 4. If any bank violates the regulations it should be liable for penalties. The facilities where there is no direct involvement of bank funds. There are 2 types of unfunded credit line facility.bank has to follow the regulations. a) Line of Credit b) Letter of Guarantee. Following are the funded facilities: a) Current finance b) Term finance c) Finance against foreign bills d) Finance against packing and credit e) Finance against imported merchandise f) Finance against trust receipt g) Local bills discounted Non funded facilities.
Foriegn Exchange Department/Trade Finance: Trade finance involve import and export activities. in the required manner Trade finance department handles two activities a) Import b) Export 6. The function of this department is to serve as a bridge between the importer and the exporter in order to settle a transaction.For getting the advance the following steps are there a. the management felt a need for setting up of independent CAD in its branches so as to minimize the losses occurring from given credit 5. as he wants to feel secure regarding timely payment of his goods in the required currency on the other hand the company involves his bank in order to get a sense of security regarding timely supply of the required product . Initial Information: Following information is required to be submitted to bank • Nature and structure of borrower business 74 . This department provides protection to the rights of importer and exporter. When trade is taking place between the representatives of two countries the exporter involves his bank in the transactions. Advances Department: MCB provides the facility to the people who need advance money to meet their requirements .Taking cognizance of the sustained progression of the bank business and the inherent risk factors attached to the expansion.
partners or directors Detail of all firms or companies associated with borrower Financial condition of borrower’s business An assessments of his business abilities Accurate and up to date financial statement of two years for comparison A report from credit standing bureau of state bank of Pakistan. c. b. If the credit limit is in his range than he can decide over it otherwise the case is forwarded to seniors. There is a separate form of every annual approval or in case of a new facility. The form contains following information a) Nature and amount of limit 75 . If party is also involved in export or import business than the bank also considers the data of 3 years about import and export. For obtaining credit. Preparation of credit proposals At first a formal application for credit approval is obtained from the party along with complete group position. Sanction advice. When the documents required are completed and there is no ambiguity than the party is advised that their credit or loan is approved and will be available to you soon. If there is any discrepancy than the party is informed of it.• • • • • • Names of proprietors. party has to submit the last two years balance sheet and profit and loss account duly attested by authorized auditors. The party’s credibility report is also taken from the head office of Trade Information Division. After all the necessary documents for applying for advance is fulfilled by the party than the case is sent to the manager for approval.
Clearing department Cheques: There are 2 types of cheques 1.b) Purpose c) Security/collateral d) Margin(%) e) Mark up charges f) Validity. 2. 7.Open cheques Open cheques has the following properties • • • • The word bears is not crossed Crossed stamp is not there Cheque is not of limited companies Self or name should be written on cheque. a) Transfer delivery: 76 .crossed cheque When the cheques does not fulfill the requirement of open cheque then it is known as crossed cheque.
RTC department This department deals in RTC . o Cheque is crossed o Cheque is of the same bank o Cheque is from local branch b) Clearing: In clearing the checques which are: o Crossed o Limited company o Different bank in the same city . cheque collection.When the cheque has following properties than it is proceeded as transfer delivery.it stands for Rupees Traveler Cheques .MCB RTC has the largest share in the total RTC market.5 million satisfied customers have made MCB RTC’s. Over 1. c) cheque collection: When cheque is from another city than it is grouped as 8. These are printed in UK and carry a thread watermark(a feature that prevent Counterfeiting) Important features: o As good as cash 77 .
MCB also offers personal loans. Asia Pacific and the Middle East. working capital loans. Financial Analysis Review Summary MCB Bank Limited (MCB) is principally engaged in commercial banking and related services. 78 . auto loans. term deposits. current accounts. including fixed deposits. The bank along with its subsidiaries is engaged in providing a wide range of banking products and services to retail clients. and term loans. margin accounts and foreign currency accounts.o Denominations o Easily enchased o Easily refundable o Exclusive security features o Valid until used Financial analysis Of MCB MCB Bank Ltd. and small and medium enterprises in Pakistan. It offers various deposit products. savings deposits. Global Market Directs Financial Analysis Review is an essential source for data.
. products and services. including fixed deposits. The hallmark of the report is the detailed strategic analysis of the company.Financial and Strategic Analysis Review is an in-depth business.020 branches. and key suppliers and competitors. . The report provides information regarding key data. The report provides a comprehensive insight into the company. strategic and financial analysis of MCB Bank Ltd. Get an in depth understanding of company’s recent and historical financial performance. margins and returns. including business structure and operations. Asia Pacific and the Middle East. Ratios include profitability. It examines the company business structure and operations. As of December 31. including eight Islamic banking branches in Pakistan and six branches outside Pakistan. Reasons to buy A quick one-stop-shop to understand the company. Support sales activities by understanding your customers businesses better Qualify prospective partners and suppliers. executive biographies and key competitors. and small and medium enterprises in Pakistan. Understand and respond to your competitor’s business structure. margin accounts and foreign currency accounts.. It offers various deposit products. The bank along with its subsidiaries is engaged in providing commercial banking and related services to retail clients. Get the latest metrics on company’s performance. 79 . savings deposits. strategy and prospects. details on key executives and the major locations and subsidiaries of the company. Scope The report includes key company information such as business description. It also provides key financial ratios for the company. It provides detailed financial ratios for the past five years as well as interim ratios for the last four quarters. It is engaged in commercial banking and related services. term deposits. products and services. This highlights its strengths and weaknesses and the opportunities and threats it faces going forward. MCB Bank Limited (MCB) is a banking company based in Pakistan. it operated 1.analysis and insight into MCB Bank Ltd. current accounts. financial position and efficiency ratios. liquidity and leverage. Global Markets Direct’s MCB Bank Ltd. 2007.
Financial. strategic and operational factors are considered. Competitive or technological threats are highlighted. The company’s strengths and weaknesses and areas of development or decline are analyzed.Scope • • Provides key company information for business intelligence needs. The opportunities open to the company are considered and its growth potential assessed. 80 • .
• The report contains critical company information – business structure and operations. • The report provides detailed financial ratios for the past five years as well as interim ratios for the last four quarters. key employees and executive biographies. • 81 . key competitors. financial position and efficiency ratios. margins and returns. major products and services. the company history. liquidity and leverage. different locations and important subsidiaries. Financial ratios include profitability.
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