Defence Degree College For Women, Lahore

Affiliation with University of Education

Internship Report
Muslim Commercial Bank Limited

Zeenat Sharif
Roll no.BSF2006180
BBA (HONS)
Session 2020-2024
INTERNSHIP REPORT

Defense Degree College For Women, Lahore

Affiliation with University of Education
Department Of Economics and Business Administration

Muslim Commercial bank Limited

A REPORT SUBMITTED TO THE DEPARTMENT OF ECONOMICS AND BUSINESS

ADMINISTRATION, UNIVERSITY OF EDUCATION, LOWER MALL CAMPUS,
LAHORE IN THE PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE
DEGREE OF BACHELOR OF BUSINESS ADMINISTRATION (HONS)

Submitted By: Zeenat Sharif

Roll No: BSF2006180
Session:2020-2024
Submission Date: 2nd January 2024

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Defense Degree College For Women, Lahore

Affiliation with University of Education
Department Of Economics and Business Administration

LETTER OF UNDERTAKING

This internship report was submitted by Zeenat Sharif D/o Muhammad Sharif
Khan Roll no BSF2006180 the partial fulfillment of the requirement of the degree

BBA (HONS)
Session (2020-2024)

With specialization in

Marketing

and is hereby accepted by the evaluation committee.

Internship Supervisor ______________________________

HOD/Coordinator ______________________________

Principal ______________________________

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DEDICATION:

Firstly, I would like to dedicate all my efforts to Allah Almighty who is the Most Merciful and
the Most Beneficent. After that I would dedicate this task to my parents without them. I could
have not completed this project. Last but not the least my all respected teachers who guided me
at every phase without their support and assistance it was unable to be done.

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ACKNOWLEDGEMENT:

In the name of Allah Almighty, the Most Gracious, Most Merciful and Most Compassionate,
who enabled me to complete this internship report work successfully I would also like to thank
Branch Manager, and the branch staff who helped me and guided me throughout my learning
period.

Secondly, I would also like to thank my parents who helped me a lot in finalizing this project
within the limited timeframe.

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EXECUTIVE SUMMARY:
Internship is an important part of BBA(HONS) program and provides opportunity to all students
to learn about the partial working of organization and improves their personal skills, business
problems are becoming more complex with the passage of time due to the achievements in
world. Students really get many benefits through this practical knowledge during studies. This
internship is not only helpful for making this report but this education gives a general knowledge
about the business, decisions and policies. In this way, I personally feel that your mind starts
thinking innovatively, broadly and dynamically facing challenges of day-to-day life is not
difficult task to handle for individual. Internship at MCB BANK is aimed at providing the
students a major unique opportunity to learn what bank is all about. I try my level best to
produce a most comprehensive internship to MCB BANK by compiling all practical learning in a
systematic way, hence making report unique. All information this effort and my interest in
internship can evaluate me in true prospective. This report is composed of the MCB Bank
history, MCB Bank introduction, Organizational structure, my work as an intern it’s different
analysis such as critical analysis SWOT analysis and recommendation etc.

MCB Bank Limited is Pakistan’s fourth largest bank by assets having an asset base of US$ 6.7
billion (approximately Rs. 300 billion), and the largest by market capitalization of US$4.1
billion. MCB Bank has a customer base of approximately 4 million which in turn gives the bank
a deposit base of nearly Rs. 250 billion.

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Table Of Contents
Dedication 4
Acknowledgment 5
Executive Summary 6
Introduction of banking sector In Pakistan 9
Overview of the Organization 10
Brief History 10
Vision 10
Mission 10
Introduction of the MCB BANK LIMITED 11
Corporate Objectives 11
Policy of the Organization 12
Competitors 12
Business Volume 13
Product Line 13
Organizational Structure 15
Organizational Hierarchy Chart 15
Number of Employees 16
Main Offices 16
Introduction of all Departments 16
Account Opening Department 16
Opening of New Accounts 17
Individual Account 18
Joint Account 18
Sole proprietor Account 18
Company 19
Departments of MCB BANK 20
Remittance Department 20
Clearing Department 20
Accounts Department 21
Accounts Opening Department 21
Cash Department 21
Clearing Department 22
Inward Department 22
Outward Department 22
Plan of Internship 23
Brief History of Department 23
Starting and Ending Dates of Internship 23
Structure of Specialization Department
Divisions of commercial bank
Finance Division

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Audit 27
Operations Division 27
Sales Division 28
IT Divisions 28
Marketing Functions 29
Products 29
Deposit Product 29
MCB Account 29
PLS Saving Account 29
Current Account 29
Partnership Account 29
MCB Asaan Account 30
Consumer Products 30
Ask for Car 30
Personal Finance 30
Mortgage Finance 30
MCB Credit Card Type 30
DIGITAL banking 30
Internet Banking 31
Mobile Banking 31
SMS Banking 31
Islamic Banking Services 32
Pricing Strategies 32
Distribution Channels 32
Types of Distribution Channels 32
Promotion 33
SWOT Analysis 34
Strengths 34
Weakness 35
Opportunities 35
Threats 35
PESTEL Analysis of MCB BANK 36
Financial Analysis 39
Ratio Analysis 42
Conclusion 45
Recommendation 46
References and Sources 47
Annexes

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BANKING IN PAKISTAN:
Pakistan got independence in 1947 and the Quaid-e-Azam Muhammad Ali Jinnah, in his speech
on the occasion of inauguration of State Bank of Pakistan on 1st July 1948, aspired to build the
economic and financial system of country in line with injunctions of Islam. Our financial sector
evolved very differently from banks in the developed world. For nearly a year after partition,
Pakistan had no central bank. Habib Bank – established in 1941 – filled this gap initially, until
the State Bank of Pakistan (SBP) was set up in 1948 under quasi-government ownership. The
role of domestic banks was particularly limited at the time, accounting for only 25 of the total
195 bank branches in the country. Therefore, the SBP was initially mandated to develop
commercial banking channels, and maintain monetary stability so trade and commerce could
flourish in the newly-created state. Subsequently, Habib Bank, Allied Bank and National Bank
were amongst the first to start operations with strong support from the central bank. Commercial
banking grew favorably in Pakistan until 1974. Under the nationalization policy implemented by
Zulfikar Ali Bhutto’s government, thirteen banks were brought under full government control,
and consolidated into six nationalized banks. The Pakistan Banking Council was set up to
monitor nationalized banks, marginalizing the SBP’s role as a regulator. These measures were
meant to improve lending to prioritized industries. However, while directed lending was viewed
favorably at the time, little can be said of the long-term gains that have been achieved. Over
time, the financial sector grew to serve primarily large corporate business, politicians and the
government. Board of Directors and CEOs were not independently appointed. Lending decisions
were not always commercially motivated, and many billions of rupees were unsurprisingly
funneled out of the financial system as “bad loans”. Banks were essentially not in control of their
destinies during this period. While Pakistan took great strides in deregulating the banking sector
in the early 1990s, Government loss of control coupled with lack of credit discipline especially in
the State-owned banking sector have aggravated structural problems, as evidenced by a rising
level of NPLs and increasing disintermediation. Worsening macroeconomic imbalances led to a
growing dependence on foreign currency deposits and increasing market intervention to contain
the cost of financing a large fiscal deficit. Consequently, the insolvency of the banking sector
rose, two large NCBs and the older DFIs experienced liquidity problems, foreign exchange
reserves were boosted by potentially volatile and expensive foreign currency deposits, and access
to credit by the private sector was increasingly curtailed. Despite liberalization, the financial
markets continue to be segmented, principally into private and public sectors due to continuing
controls on interest rates paid on government debt.

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OVERVIEW OF THE ORGANIZATION

a. BRIEF HISTORY:

Muslim commercial bank is one of the leading banks in Pakistan having experience of more than
60 year. It was established on 9 july 1947 in Calcutta under Indian companies act, VII of 1913 as
a Limited company. After Indo-Pak separation its Head office of bank was transferred to
Karachi, its presently location. The bank started working 30 million shares which are divided
into 3 million ordinary shares of Rs. 10 for each. MUSLIM COMMERCIAL BANK was
privatized in 199 and purchased by a Pakistani corporate group led by Nishat Group. In June
2008 the Nishat Group owned majority of bank’s stake.

MISSION:
We are a team of committed professionals ,providing innovative and efficient financial
solutions to create and nurture long-term relationships with our customers. In doing so, we
ensure that our shareholders can invest with confidence in us. To be the leading private sector
bank in Pakistan with an international presence, delivering quality service through innovative
technology and effective human resource management in a modern and progressive
organizational culture of meritocracy, maintaining high ethical and professional standards, while
providing enhanced value to all our stakeholders, and contributing to society.”

VISION:
To be the leading financial services provider ,partnering with our customers for a more
prosperous and secure future.

b. INTRODUCTION OF THE MCB BANK LIMITED:

MCB Bank Limited (‫ )ایم سی بی بینک لمیٹڈ‬is a Pakistani multinational commercial bank which is
based in Lahore, Punjab, Pakistan. The majority of shares are owned by Pakistani
conglomerate Nishat Group and Malaysian bank Maybank. The bank has a network of 1,600
branches in Pakistan.
It was incorporated by the Adamjee Group on July 9, 1947. The bank was established to provide
banking facilities to the business community of South Asia. The bank was nationalized in 1974
during the government of Zulfikar Ali Bhutto. This was the first bank to be privatized in 1991
and the bank was purchased by a consortium of Pakistani corporate groups led by Nishat Group.
As of June 2008, the Nishat Group owns a majority stake in the bank. The current President/CEO
of the bank is Shoaib Mumtaz.

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The group has a presence in the business sectors of the country such as banking, textile, cement,
and insurance. Mian Muhammad Mansha is chairman of both the group and MCB. The bank has
established an Islamic Banking unit to offer Shariah-compliant products and services, with
dedicated Islamic banking branches in six cities
In 2005, the management of the bank abbreviated its name from Muslim Commercial Bank
Limited to MCB Bank Limited to explore international markets; they were facing resistance due
to the word Muslim especially from Western Countries to avail license. In 2008 the head office
of MCB was shifted from MCB Tower, Karachi to Lahore in a newly constructed building,
namely MCB House located at Sharea Ghous-ul-Azam, commonly known as Jail Road.
MCB, advised by Merrill Lynch, became the fourth Pakistani company (the other three being
Hubco, PTCL, and Chakwal cement; they all have been delisted) to list on the London Stock
Exchange when it raised US$150 million global depositary receipts.

CORPORATE OBJECTIVES:
MCB Islamic Bank's corporate strategy has three pillars, which will be pursued concurrently and
focused in chronological order:
 Build market leadership within Pakistan
 Grow network
 Financial Inclusion
 Product Development
 Customer Satisfaction
 Technological Innovation
Create a Shari'ah compliant integrated financial services group Create a model that offers
customers access to a diversified Shari'ah compliant financial services.
Pursue international growth opportunities With the growing acceptance of Islamic Banking
worldwide, MCBIBL will turn its attention to replicating its business model through systemic
geographic expansion.

c. POLICY OF THE ORGANIZATION:

1. Ensure that CSR initiatives embody a vision of harmonious and sustainable development
in Pakistani communities. Broadly speaking, the pillars of CSR activities undertaken by
the Bank ensure:
2. Compliance with relevant laws and regulations both in letter and spirit
3. Business operations with honesty and integrity
4. Engagement in social welfare activities that help strengthen communities and contribute
towards the uplift of society
5. Support and promote financial inclusion and literacy
6. To build and maintain sound relationships with customers and other stakeholders through
open and fair communication in order to contribute towards sustainable image-building
7. Respect for culture, customs, history and laws as the Bank constantly searches for safer,
cleaner and better practices that meet the growing needs of society

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8. Minimize environmental footprint to coexist harmoniously whilst encouraging minimum

wastage of resources.

d. COMPETITORS:
The top competitors of MCB Bank include HBL, Scotiabank, Bank Alfalah, JS Bank and Soneri
Bank. MCB Bank has 19 active competitors.
Here is a list of the top 10 competitors of MCB Bank, ranked by Tracxn score:

1. HBL - Karachi based, 1940 founded, Late Stage company.

2. Scotiabank - Toronto based, 1832 founded, Public company.
3. Bank Alfalah - Karachi based, 1997 founded, Series C company.
4. JS Bank - Karachi based, 2007 founded, Unfunded company.
5. Soneri Bank - Lahore based, 1991 founded, Unfunded company.
6. Muslim commercial bank - Islamabad based, 1991 founded, Funding Raised company.
7. Silkbank - Karachi based, 2001 founded, Acquired company.
8. Bank AL Habib - Karachi based, 1991 founded, Unfunded company.
9. State Bank of Pakistan - Karachi based, 1956 founded, Unfunded company.
10. Bank Islami - Karachi based, 2006 founded, Funding Raised company.

e. BUSSINESS VOLUME:
According to the annual fiscal year Report 2020 the business volume of MCB BANK LIMITED
is :

Total Assets Rs.2,251 billion

Total Investments Rs.1,123 billion
Total deposits Rs.1,522 billion

f. PRODUCT LINES:

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 Deposit Products:

1. Value Plus Current Account:

 As always Muslim commercial bank always add value to their customer and their first

priority is always their customer.

 This account has amazing benefits and free facilities that customers meet their financial

needs.

2. MCB Account:

 Muslim commercial bank introduce this account for the people whose age is above 55 or 55

 High rate of return.

 Free debit card and cheque book.

3. PLS saving Account:

Offers 5% interest rate after 6 months.

4. Current Account:

 No interest rate.

 Provide Free cheque book.

 Giving the opportunity of free online banking.

5. Partnership Account:

It also offers Partnership account.

6. MCB Asaan Account:

 It has salient features like no minimum balance requirement.

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 Free Issuance of Visa debit Card.

 Consumer Products:

 Ask for Car:

Muslim commercial bank offers car financing to the people whose minimum salary starts from

50000, it varies according to their job type.

 Personal Finance:

It offers another category of financing with affordable installment and payback period.

 Mortgage Finance:

Customer easily avail this finance to buy a home, buy a plot and construction, Renovation etc.

 MCB Credit Card Types:

 Muslim commercial bank offers this card in three categories

 Classic.

 Gold.

 Platinum.

ORGANIZATIONAL STRUCTURES

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ORAGANIZATIONAL HIERARCHY CHART:

NUMBER OF EMPLOYEES:

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MCB Bank is one of the largest employers in Pakistan with a strength of about
18,000 employees. The institution promotes talent which helps in healthy growth and employee
satisfaction as well.

MAIN OFFICES:
Head Offices and Main Branches of MCB BANK are:

1. Islamabad region
2. Lahore region
3. Gujranwala region
4. Rawalpindi region
5. Quetta region
6. Karachi region

DEPARTMENTS:
This is one of the major departments of MCB BANK LIMITED. It consists of following sub
departments:

1. Accounts Opening Departments

2. Accounts Department
3. Clearing Department
4. Cash Department
5. Deposit Department
6. Customer service Department
7. Remittance Department

ACCOUNTS OPENING DEPARTMENT:

Accounts are assumed to hold immense importance in the basic banking operations of all the
commercial banks. The reason being of this significance importance is that it serves as a first
step in establishing customer bank relationship the main objectives of any bank is to attract as
many accounts and deposits as possible .In regard of generating new accounts and attracting
huge deposits for the bank the branch development officers play a vital role as well. The basic
function of this department is to understand the basic customer requirements and guide them
accordingly.

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OPENING OF NEW ACCOUNTS:

Account opening is a deal between bank and customer. In this contract the bank plays the role of
agent for its customer. Opening of a new accounts is formal procedure that starts off from
application form and completes with allotments of an account number to the customer. The
requirements or particulars needed for opening a new account varies on the basis of nature of
accounts i.e

1. INDIVIDUALS ACCOUNT:
 Application from customer on specialized printed form obtained from MCB
 Person should be major i.e he/she obtained the age of 18 years
 National Identity card
 He/ She must be able to sign otherwise three passport sized photographs of the
individual are required
 Minimum opening balance limit is 500 or 1000

2. JOINTACCOUNT:
 Application from customer on specialized printed form obtained from MCB (the
request must be made by individuals who have a blood relation i.e. brother-
sister ,father-son etc .)
 National Identity card of all members
 Operating instructions are signed

3. SOLE PROPRIETOR ACCOUNT:

 Written application on letter head of business
 Stamp of business
 Date of start of business
 Office or locality of business
 National Identity Card
 National Taxation Number issued by federal board of revenue (FBR)

4. COMPANY:
Written requests to branch manager on letter head of company (with signatures of all the
directors
 National Taxation Number(NTN)
 Memorandum of Association
 List of Directors
 Board resolution
 Seal/Stamp of company

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Departments of Muslim commercial bank:

The MCB department consists of:

Remittance Department:

The main function of bank is to transfer money from one place to another place, from this movement of

money bank earns through charges.

Following instrument are used for transfer money in Muslim commercial bank:

o Banker cheque:

• Banker cheque is used when customer wants to transfer money within the city, this is most easy

and convenient form to transfer money.

• Secured ways to transfer money.

• They are used for local money transfer

o CDR:

• CDR stands for call deposit report.

• It is another secured way to transfer money.

• Instrument is “Banker’s cheque”.

 Accounts Department:

• When transaction occurs, account department is responsible to record all these transactions of

different department and then make credit and debit voucher arranged and save for the record purpose.

Account Department performs different functions are as following:

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• Cash positions on daily basis.

• All accounts of different departments are maintained here.

• Recording accounts.

• Manages salary distribution of staff.

• Check daily basis transactions activities.

 Account Opening Department:

The Account opening department offers a wide range of accounts. MCB BANK offers a variety

of accounts to their customer in which the customer opens their account according their choice

and account criteria, in which customer can easily open their account by the complete guidance

of the supervisor.

 Types of Accounts offered by MCB BANK:

• Value Plus Current Account

• MCB Account

• PLS saving Account

• Current Account

• Partnership Account

• MCB Asaan Account.

o Functions:

• Main Functions perform account opening department are as follows,

• Issue and cancel of cheque books.

• Deal with cancellation of ZAKAT.

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• Handling and maintenance of account like current account, PLS saving account, etc. is

maintained by account opening department.

• Closure of account.

• If a customer not deposit any amount is the bank for the period of one year it become dormant so

account opening department sorting out these accounts.

o Rules of Account Opening Department:

• Customer can receive cheque book after receiving message from the bank.

• The customer will also avail the I-net banking, and easily do transactions through internet.

• If the customer mailing address is changed and he/she want to change their mailing address, can

change by filling the Address changing Form.

 IT Room:

IT department does not have any visible role but it acts as a backbone of the company. The concept of

information technology is increased day by day, IT plays an important role in development of any

organization, Muslim commercial bank at airport road has no proper or well-established IT department,

consist of IT room which is centralized. It offers several services,

• Online Banking.

• Internet banking.

• Auto-Teller Machine (ATM).

 Cash Department:

This department deals with cash, it performs both activity of cash deposit and cash withdrawal by using

cheque and any other negotiable instrument. Cash department system works on by providing receipt and

payments to the customer.

Cashier check the following terms:

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• Signature of the customer.

• Date of the cheque.

• Cross cutting

• Check two signatures at the back of the cheque.

• Amount in words and figures

• Account no. and account title

 Clearing Department:

It is the clearing of cheque and transfer of money between banks. Two type of clearing

performed in this department. Clearing department means the specified department of the

Exchange, which is responsible for settling trading accounts, clearing trades, collecting and

maintaining margin monies from Members and also responsible for reporting data.

o Inward Clearing:

• It means bank receives the cheque of another bank it decreases the total bank deposit.

• Amount transfer from one party to another party, so the third-party account is credited.

• The main procedure includes, our branch cheque received by another bank.

• They send to NIFT for clearing.

• Then NIFT send this clearing cheques to us (mentioned branch), to cheque whether there is

sufficient balance in their account.

• After all the checking procedure then send to NIFT.

o Outward Clearing:

• In outward clearing bank receives the cheque of other bank it increases the bank deposits.

• The amount transferred from third party to bank account holder.

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• The Procedure of outward clearing are as follows:

• Bank receives the cheque of another bank.

• The posting date of this cheque is the next day.

• Bank send the cheque to the NIFT for clearing.

• Then Bank send the cheque to that branch.

 PLAN OF INTERNSHIP:

Brief history of the branch :

I did my internship for 6 weeks in Muslim Commercial Bank, DHA Z block, Lahore. The branch
is well recognized and fully equipped with networking system and provides a wide range of
banking facility to its customers. During my internship , I gained the experience , new valuable
skills and worked in different departments of bank to enhance my knowledge. The staff of the
branch is very cooperative, well educated and experienced that’s why the performance of the
branch is remarkable. Branch Timings starts from 9:00am to 5:30pm (Monday to Friday). After
the bank timings, the staff must complete the daily vouchers, transaction and make entries on the
net system and then count cash, after making physical and system balance put the cash in safe.
The banking staff Should finish their work on daily basis. The employees have 15 days leave
annually along with the allowances so that the staff enjoys the holidays without any stress. I
worked in different departments like account opening, clearing, remittance departments etc. The
promotion of the employees depends upon their performance. The promotion system in MCB is
based upon the Grade system and also on experiences. The salary structure depends upon the
experience, knowledge and most importantly on the basis of employee's performance.

Starting and Ending dates of Internship

I have completed my six weeks of internship from 20th September 2023 till 31st October 2023 at MCB, Z

block, DHA Phase3, Lahore.

Week 1:

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In the first week of my internship I worked in accounts department under the supervision of Sir Fahad

who guided me about account opening.

In this week I know about

 account opening form

 Different Products

o Value Plus Current Account

o MCB Account

o PLS saving Account

o Current Account

o Partnership Account

o MCB Asaan Account.

 documents for account opening

o CNIC

o Biometric

o proof of profession or letter head

 account opening process

 scanning

 Scanning of account opening form

 CNIC

 Linkage report

 SS cards

 Conditions and terms

 Key fact statement

 System Generated Kyc

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 Facta constant foam

 Biometric

 Account opening foam

 Deposit slip

 Bill of electricity

 Vernacular

 Case review or hot scan

 Proof of profession

Week 2

I worked under Sir Ghulam abbas at account department in which know about

• Cash positions on daily basis.

• Cheque books

• ATM

• All accounts of different departments are maintained here.

• Recording accounts.

• Manages salary distribution of staff.

• Check daily basis transactions activities.

Week 3:

I worked under Mr. Ibrahim CSO in which I learned about

 Bank statement

 Biometrics

 Photocopy

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 How to behave with customers

 How to deal with aggressive customers with patience.

Week 4

I worked under Mr.Mohsin in cash department in which I learned about

 Deposit slips

 Clearing cheques

 Cheques as

 Clearing

 Types of clearing

Week 5

I worked under Ms.Sajal in with I earned about

 Credit cards
 Loan
 And other services

Week 6

In the last week of my internship program I completed the project “strengths and weaknesses of MCB”
that was assigned to me by the head office.

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STRUCTURE OF SPECIALIZATION DEPARTMENT

 Divisions of Muslim commercial bank

Muslim commercial bank divisions are:

 Finance Division.

 Sales Division.

 IT Division.

 Operations Division.

This Divisions of Muslim commercial bank is briefly discussing one by one in detail.

 Finance Division:

 Finance plays an important role in any organization; we can say that finance division is the hub of

all the financial information of the bank

 In this division it includes maintaining of accounting records according to international standards

and policies.

 Audit:

 Internal Audit, in this Branch of MCB there was no internal auditor, Internal auditing is done by

the auditor of another MCB branch.

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 External Audit, in external auditing an independent entity, to check all the financial records of the

organization.

 Internal editing is done throughout the year.

 Operations Division:

 Basically, operation division is act as a ‘Engine room’ in any organization.

 In MCB operation department or operational manager make sure that all the employees under

him perform their task effectively and efficiently.

 Operation division in bank include:

 Cash Department.

 Remittance.

 Account Opening

 Sales Division:

 The main purpose is to sale the product and services of the bank to the potential customer.

 Selling of credit cards.

Division of sale involves:

 Product and services.

 Lending (loans).

 IT Division:

 IT plays an important role in every organization, because it provides product and service in the

secure manner to the customer.

 In this Branch there is no as such proper IT department like other branches or banks, just IT room

that is centralized to perform its function.

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MARKETING FUNCTIONS

PRODUCTS

o Deposit Products:

 Value Plus Current Account:

 As always Muslim commercial bank always add value to their customer and their first

priority is always their customer.

 This account has amazing benefits and free facilities that customers meet their financial

needs.

 MCB Account:

 Muslim commercial bank introduce this account for the people whose age is above 55 or 55

 High rate of return.

 Free debit card and cheque book.

 PLS saving Account:

Offers 5% interest rate after 6 months

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INTERNSHIP REPORT

 Current Account:

 No interest rate.

 Provide Free cheque book.

 Giving the opportunity of free online banking.

 Partnership Account:

It also offers Partnership account.

 MCB Asaan Account:

 It has salient features like no minimum balance requirement.

 Free Issuance of Visa debit Card.

 Consumer Products:

 Ask for Car:

Muslim commercial bank offers car financing to the people whose minimum salary starts from 50000, it

varies according to their job type.

 Personal Finance:

It offers another category of financing with affordable installment and payback period.

 Mortgage Finance:

Customer easily avail this finance to buy a home, buy a plot and construction, Renovation etc.

 MCB Credit Card Types:

 Muslim commercial bank offers this card in three categories

 Classic.

 Gold.

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 Platinum.

 SERVICES:

 Digital Banking

1. Internet Banking

Muslim commercial bank offers the facility of the modern service to their valued and precious customer.

Muslim commercial bank is the first bank that offer internet banking to their customer that is absolutely

free.

• So, the customers easily make transactions through internet.

• Muslim commercial bank add value in the internet baking through different amazing features.

• Value added features include loans details, cheque Management, Book tickets.

• The new feature will automatically available to the existing users.

2. Mobile Banking:

• Muslim commercial bank also provide mobile banking to their customers with full security to

perform day to day transactions

• Muslim commercial bank also add new security features to secure customer transaction like Access

code, Biometric, login alerts, Brand Protection.

3. SMS Banking:

• Muslim commercial bank also provide SMS services so the customer can easily know about their

every transactions and other activity.

o Online Payment Through Digital Channels:

Customer can easily do digital transactions through internet and digital channels.

o Customer Visit Management (CVM) Pilot launch:

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Muslim commercial bank Offers two type of Visa card to their customers Classic and Gold.

• Classic Debit card withdrawal limit is up to 25,000 and Gold has withdrawal limit up to

100,000.

o ATM:

Muslim commercial bank has almost 500+ ATMs across Pakistan.

o E-Statement:

Muslim commercial bank offer this facility so the customer can easily overview their transactions by

receiving electronic statement Through Email.

 Islamic Banking Service:

MCB Islamic bank offers Islamic banking services to their customer and established 6 branches

in the major cities and trying to improve their capabilities for offering product and services

according to sharia principals.

 Other Link:

Specific Branches open on Saturday.

 Personal:

It includes Deposit products and consumer products.

 PRICING STRATEGIES

is a tool used to fix the price of a particular product or service by considering various factors like the
consumption of resources, Market conditions, the ability of customers, demand and supply, need of the
product like regular item or occasional, etc

DISTRIBUTION CHANNELS:
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A distribution channel is the network of banking or intermediaries it passes until it

reaches the final buyer or the end consumer. Distribution channels can
include wholesalers, retailers, distributors, and even the internet

Types of Distribution Channels

 Direct distribution channels

 Indirect distribution channels
 One-level channel

 Three-level channel

 PROMOTION
Promotion in MCB is purely on the basis of superiority, so the new young person having high
qualification remains behind for quite a lot of time. Thus a better and neutral policy of promotion
needs to be followed.
The bank can attract and retain its customer through:

 Sales Promotion
 Advertisement
 Direct Marketing
 Public Relations
The most prominent and important way to attract a large number of customers is the
advertisement of bank and its products/services. MCB bank has adopted different approaches for
the accomplishment of this purpose.

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SWOT Analysis

An overall evaluation of company’s strength (s), weakness (W), opportunities (O) and threats (T) is called
SWOT Analysis.Strength and weaknesses are internal factors whereas opportunities and threats are
external factors.

STRENGTHS
The different strengths that MCB Bank Limited are:

 First Muslim Bank of the World

MCB Bank is the first ,which is owned and managed by its own employees.
This is the biggest strength f the Bank. A feeling of ownership is present in every employ.
Which not only helps in increasing the productivity of employs but also creates sincerity with
the Bank in them.

 High Level of Motivation of Employees

The employees of MCB bank Limited are highly motivated because they know that what so ever they
do, it will be for their own benefit.. Also they are of the view that the will earn will be distributed among
them. Hence they work with high motivation and concentration.

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 Customers Treated as Assets of Bank

MCB regards its customers as the most venerable asset of the bank. Hence the bank has
formulated strict rules and regulations regarding customer's complaints. The bank offers a
secure, warm and friendly environment to its customers.

• Wide Network throughout Pakistan

MCB Bank Limited has one of the largest networks within the country with over 900 branches,
connected to an online network. The bank is also instaled approximately 1000 ATM's at various
locations within the country.

WEAKNESSES:
Some of the weaknesses of MCB Bank Limited are:
• Employees' Attitude
It observed that they that employees mostly have sluggish and hard attitude towards the
customers. There is a high part of favoritism, ,and mostly employees are hired on the basis of
nepotism and references. . There is a lack of commitment and professionalism on part of the
employees.

Opportunities:

• MCB extends its networks in other countries.

• By using new technologies, they can enhance its profitability.

• They should develop specialized HR department.

• They should keep on looking the new opportunity in the market because it come first and first

served situation.

• They should focus on different marketing and promotion strategies to attract customer.

• Open their branches in the rural areas it is the golden business opportunity.

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Threats:

• Political instability.

• Poor Economic cycle so Pakistan faces economic crisis.

• Competitors like Faysal bank, Alfalah Bank, Habib Bank etc.

• MCB bank has large number of competitors so it is a huge threat that other banks come up with a

new product and service and more focused on marketing.

• Main threat is this pandemic situation (Corona).

• Change in government policies has affected the banking sector.

• PESTEL Analysis of MCB Bank

 Political:

• Almost the past 10 years Pakistan continually faces the political in stability it leads to the

interference of America and corruption. So due to this MCB faces major challenges:

• These political factors affect the MCB activity and it also affects the consumer decisions while

going to incest.

• Weak government.

• High level of corruption.

• High tax rates.

• Continuously rise in prices.

• Due to the current situation, it adversely affects the MCB business and People especially

foreigners offend frightened to deposit in and keep their deposit in Pakistan.

 Economics:

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• As we all know that Pakistan is a developing country so their economic cycle is very weak so

it creates an opportunity for MCB because many people demand loan.

• As in Pakistan the economic condition described below:

• High rate of inflation

• Income gap between different classes.

• Rate of interest is high.

• High cost of living.

Inflation rate is high, there is continuously increase in prices, cost of living also increases that

few people is able to save and have been driven from the saving culture it is a challenge for

MCB to fulfill to need and the requirement of all customer. Depreciation in the currency value

forced MCB to increase the price of the service charges.

 Social:

• Social activity is very much important and social circle affects the banking sector

like .

• People adopt traditional method is not and saving society.

• High rate of poverty and not aware that much.

• People in Pakistan not supporting the banking sector.

• Lack of accountability so the creditor easily cheats on it and ratio of bad debt increase day by

day.

• Socio-cultural factors have an excellent impact on the banking industry. The Changing

preferences and choices of the people would make banks to vary their planning and brand

strategies.

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• If we see the attitude and behavior of the people during a certain demographic, then you'd see

that it's changed tons in recent times. As an example, people from the 80s and 90s tend to use

debit/credit cards for transactions. Their businesses would like to contact for financial

assistance and guidance.

• Many things have changed and transformed within the 21st century. just like the

MCB BANK prefer convenience and customer service. That’s why you’d see that banks offer

a spread of packages and offers to their customers. That’s how the entire picture of the

banking sector is modified within the 21st century, where customer satisfaction and orientation

became a serious focus.

 Technology:

• Due to technology People live in internet world and everything is just away from one touch.

• MCB invest huge amount in the in-information technology, as to gain competitive advantage

against large banks.

• MCB Bank offers credit card / debit card and online banking facility to their customer because

use internet increases day by day and people depend on it so MCB BANK provide their

customer online payment opportunity.

 Environmental:

• People mostly prefer green products so they mainly prefer those organizations who is taking in

part of it and involved in more CSR activity.

• MCB Bank starts different campaigns and awareness program like green day.

• When flood hits many parts of Pakistan, MCB step forward to help those victim or people

who are affected

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 Legal:

• Legal factor affects the financial reporting of MCB, it faces major challenges due to change in

the government policies regarding taxation, security concerns and legal papers regarding trade

legalities.

• Increase in minimum wages and give right to the minority of Pakistan it affects the MCB

operations.

 Financial analysis

 Liquidity ratios:

• Current ratio

• Quick ratio

 Profitability ratios:

• Gross profit margin

• Return on asset

• Net profit margin

• Operating profit

• Return on equity

 Solvency ratio

• Debt to equity ratio:

 Efficiency

• Assets turnover ratio

 Liquidity ratio

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o Current ratio

Current ratio of company shows whether the company will be able to pay their short-term liabilities or

not. Current ratio is calculated by dividing the current assets to the current liabilities

Current ratio = current assets / current liabilities

Quick ratio = current asset – inventory / current liability

 Profitability ratio:

o Gross profit margin:

Gross profit ratio is the relationship between the gross profit and the sales of the company.it is calculated

by dividing gross profit to net sales.

Gross profit ratio = gross profit / net sales

o Return asset

Return on assets shows how much profit accompany is generating due to its assets.

Return on assets = net income/ average total assets

o Net profit margin

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Net profit ratio is a profitability ratio which is expressed as a percentage hence it is multiplied by 100.

Net sales include both Cash and Credit Sales, on the other hand, net profit is the net operating profit i.e.

the net profit before interest and taxes.

Net profit margin = (net income / sale) 100

o Operating profit

A profit from business operations (gross profit minus operating expenses) before deduction of interest and

taxes.

o Return on equity

Return on equity shows how much profit a company is generating due to its shareholder’s equity.

Return on equity = net income / total shareholder equity

 Solvency ratio:

o Debt to equity ratio

The debt to equity ratio is basically being used to mainly evaluate a company’s financial leverage. It

is mainly calculated by just dividing a company’s total loan liabilities by its own shareholder equity.

Debt to equity ratio = total loan liabilities / shareholders’ equity

 Efficiency ratio

o Asset turnover ratio;

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Asset turnover is how much efficiently a company is using assets to generate its revenue.

Asset turnover ratio = revenue / assets

Ratio Analysis:

Ratio analysis an excellent method for determining the overall financial condition of an

organization. The analysis of financial statement can provide reasonable insight into a form state

of affairs .Following are some ratios of MCB BANK LIMITED for the first half year of 2023.

Current Assets 2023

Cash and balances with treasury banks 96,369

Balances with others banks 24,872

Lending to financial institutions 50,416

Investments 978,731

Advances 753,400

Fixed assets 79,918

Intangible assets 801

Deferred tax assets 7,547

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Other assets 93,3012

Total Asset 2,085,355

Liabilities

Bills payable 39,137

Borrowings 340,237

Deposits and other accounts 1,378,717

Other liabilities 137,770

Total Liabilities 1,895,861

 Current ratio:
Current Assets/Current Liabilities

= 2,085,355/1,895,861

=1.099

Interpretation:

The current ratio indicates the ability of the organization on to satisfy the current liabilities with
the current assets.

 Acid test ratio:/Quick Ratio/ Liquid Ratio:

= Current Assets –Advance/current liabilities

=2,085,355- 753,400 /1,895,861

= 0.70255

Interpretation:

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This ratio shows the validity of the organization that, how an organization can meet his short
term debt without selling his stock and other securities.

 Debt ratio:
= Total Current Assets/ total Current Liabilities

= 2,085,355/1,895,861

= 1.09000

Interpretation:

This ratio calculates the capital structure of the organization which contains debts and equity of
the firm.

 Working Capital:

= Total Current Assets- total Current Liabilities

= 2,085,355-1,895,861

= 189,494

Interpretation:

This indicates company liquid assets ( After meeting short term liabilities ) relative to its need
for liquidity.

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Conclusion:

During the tenure of my internship program of six weeks, I become more confident and it made
be able to face general public with patience, and how to deal with problematic customers with
patience. It has helped me a lot to flourish my communication skills, management skills, etc. I
faced so many challenges while doing internship, this made me more confident to overcome
these challenges effectively and enhances my interpersonal skills.

While working at this branch it makes me more responsible, like how to work with
responsibility. Six-week experience at different department it helps me a lot to know about the
baking sector, I came to know that particle life is very much difficult than academic life. This
internship program taught me to adjust in different working environment like in friendly and
stressful environment.

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Recommendations:

 They should build strong marketing strategy.

 Improve their operations and improve provide staff training.

 They should develop proper departments.

 They should come up with new product and services and also launch an eye-catching advertisement

that attract and forced the customer to avail that opportunity so it led to overcome the financial crisis.

 Hire right person that fits for that job.

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REFERENCES:

o Tehreem Iqbal(BM)

o Sir Fahad (RM)

o Ghulam Abbas (operational manager)

Websites

http://www.mcb.com.pk/

https://www.mcbislamicbank.com/

https://pk.linkedin.com/company/mcbbankpk

https://www.mcb.com.pk/investor-relations/annual-reports

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ANNEXES:

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