CHAPTER-1 INTRODUCTION

This is an essential academic requirement, to complete an internship program of eight weeks, in an organization of repute. The internship is followed by, report writing, which is an integral part, in fulfilment of requirements, for the degree of MBA. A report encompasses the experience of the internee, his learning, and analysis in light of which recommendations are made. The report is then submitted, to Department of Management Sciences Comsats University Abbottabad. This internship report has been written on MCB Ayub Branch Abbottabad.

1.1 BACKGROUND OF STUDY In present day world, economy has started dominating every sphere of life and for the socio-economic growth of any country, monitory institutions are critical. In this context, banking sector plays a sheer ankle role. Banking sector is the backbone of the industrial sector, trade and commerce of the country, hence providing stimulus to overall development of the economy. The role of banks in the development of a country has greatly increased with the advent of modern tools and techniques in banking operations. Moreover intense competition among banks, the privatization of the financial institution and financial liberalization in general are gradually and continuously making the banking sector efficient and effective. In this era of ever going change and knowledge explosion, manifested by modern technology, banks are also adopting themselves to cope this change. For Pakistan, being a developing country of third world banks are crucial to Pakistans economy, and especially in the case of KPK, where a huge amount of remittances came from abroad by

population residing there. This makes a significant contribution to the economy of Pakistan in general and KPK in particular.

1.2 PURPOSE OF THE STUDY

To fulfill the requirements for the degree of Bachelor of Business Administration with major in finance at CIIT Abbottabad. To compare the theory and application of the management knowledge in real life situation & to improve personal skills i.e. human relations and communication skills that is to interview them, Along with the above purposes the main and the basic purpose of this study is the critical analysis of the strength and weaknesses of the finance section of an organization (MCB). To make possible recommendations in light of the analysis & to get better long report writing skills. The report also aims to inculcate amongst the students the method of collecting relevant
material and shaping it in the form of formal report writing.

1.3. SCOPE OF WORK

During this study, I was able to observe the operations and identify various problems which the MCB management has to face. Therefore in this report MCB has been analyzed from their financial and operations points of view. However the Financial and SWOT analysis have been carried out is the main focus of this research.

1.4 LIMITATION OF THE STUDY

No matter how efficiently a study is conducted, it cannot be perfect in all respects. This study was conducted in accordance with the objectives of the study. The study may not include broad explanations of facts and figures due to the nature of the study. Secondly, the limitation which affects the study is the restriction on mentioning every fact of the bank due to the problem of secrecy of the bank. Also the availability of required data was a problem as all the documents and files are kept strictly under lock and key due to their confidential nature. Thirdly, the problem of short time period also makes the analysis restricted as one cannot properly understand and thus analyze all the operations of a bank just in six to eight weeks.

1.5

MERITS OF THE STUDY

The study done will benefit the finance students in particular and banking students in general because the financial analysis section of this report comprehensively encompasses all respects of financial analysis.. I had with the strong belief that this report will guide and facilitate the readers to understand the functioning of banking system and more importantly have good knowledge about Muslim Commercial bank. My utmost efforts to elaborate this report with material read, listened and observed. Furthermore, MCB Ayub branch Abbottabad may also benefit from the recommendations made at the end of the report.

1.6

METHODOLOGY OF RESEARCH
The data collected for analysis and review includes both primary and secondary data. Every nerve was strained to collect the quality information. The methods used for collecting primary and secondary data are as follows.

1.6.1 PRIMARY DATA

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The data which is collected for the first time and exists in the raw form is called the primary data. The information, such as perceptions & attitudes of employees are the best obtained by talking to them by observing events peoples & objects or by administering questionnaires to the individuals such data gathered for research from the actual site of occurrence of events are primary data. The examples of primary data are and it was done through; Personal observation. Sitting with staff members. Interviews with staff members.

1.6.2 SECONDARY DATA The data gathered from existing resources are called secondary data. The information such as the background details of the company can be obtained from available published records. The web site of the company, its achieves & other sources, different type of written information such as company policies, procedures & rule can be obtained from organizations records & documents. Data gathered through such existing source are secondary data. The examples of secondary data, done with the help of; Annual reports of the MCB. Brochures. News papers. Manual of the banks. Internet. Any research on bank conducted.