21439291 Internship Report on MCB (Repaired)

8/13/2019 21439291 Internship Report on MCB (Repaired)

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INTERNSHIP REPORT ON

MCB BANK Limited

Internship Report submitted to the Faculty of Commerce &Accountancy in Partial

Fulfillment of the Requirements for the Degree of Mater in commerce

By:

Name of Student:Sana javaid

Roll Number: 12052054-045

Date of Submission:15 september 2013

UNIVERSITY OF GUJRAT

Name of program coordinator-----------------------------

Signature of program coordinator--------------------------
http://www.uog.edu.pk/index.http://www.uog.edu.pk/index.


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2.ACKNOWLEGEMENT

All the praises are for the almighty Allah, the creator of universe, the most gracious &

merciful, and the source of all knowledge, wisdom within and beyond my comprehension.

Allah is the only, who can help us in every field of life. I bow my head before him who

enabled me to work on this report and helped me to complete this report successfully.

All praises after almighty Allah are due to holy prophet Hazrat Muhammad (Peace be

upon him), the most perfect exalted among, who & us is forever a torch of guidance and

knowledge for humanity as a whole.

Afterward, I am greatly indebted to my Parents and the instructor for providing me

excellent guidance to successfully complete my Internship report of National Bank of

Pakistan. I here by provided a golden opportunity to perform working activities at NBP for

a period of 6 weeks. The aforesaid occupancy bestow me precious moments to make

learning and get experience of the practice life with a successful approach. Soon after, I

am heartily grateful to Mr. Abdul baqi ,Branch Manager of the National Bank of Pakistan,

who confer me possibility to enhance my understanding and knowledge about the working

systems of NBP, which would ultimately useful for my future career and whose

cooperation enables me to compile this comprehensive report.


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S.NO TITLE

2 Acknowledgement

4 Executive summary

Chapter#1 Introduction

5.1.2 Histroy of MCB

5.1.3 Award of MCB

5.1.4 Business Volume5.1.5 Mission

5.1.6 Vision

5.1.7 General profile

5.1.8 Product &Services

5.1.9 Loan Product

5.2 Corporate Banking

5.2.1 Online Service

5.2.2 Virtual Banking

5.2.3 Islamic Banking

5.2.4 Pest Anaylisic

Chapter#2 Organization structure

6.1.1 Branch Network

6.1.2 Hierarchay of organization

6.1.3 Competitor of M.C.B


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4. EXECUTIVE SUMMARYThe banking structure in Pakistan comprises of the following types, State Bank of

Pakistan, Commercial Bank of Pakistan; Exchange Banks, Saving banks, Cooperative

banks, specialized credit institutions. The state bank of Pakistan is the Central bank of the

country and was established on July 01, 1948. The network of bank branches now covers a

very large segment of national economy. The State Bank of Pakistan issues the shares of

these periodically. Bank employees and other common peoples can also purchase these

shares and earn profit. MCB was incorporated under companies act 1913 on 9th

July;

1947.The bank transferred its registered office to Karachi, where the Head Office is

presently located.

In April 1991, MCB became Pakistans first privatized bank. The bank has corporate

branch at Shah rah-e-Faisal Karachi (SFK). The bank is using SWIFT for transfer of

information about imports and exports. MCB SFK branch has Currently Following three

Departments General Banking Department, Advances Department & Foreign Exchange


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Department. To open an account the customer has to meet the general banking manager

with an introducer. The procedure begins with the punching of account opening form to

the customer file i.e. customers master file. Before closing any account, bank send letter

to the account holder for informing him that his account is going to be closed.

In remittance department like any other bank MCB also have instruments for transferring

of money, Telegraphic Transfer, Mail Transfer. In cash department both deposits and

withdrawals go side by side. This department works under the accounts department and

deals with cash deposits and payments. This department maintains the following sheets,

books, and ledger of account cash received voucher sheet Cash paid voucher sheet,

Paying-in-slip, Cheque Book, Cash balance book. The clearing in Karachi at MCB or

other banks is being done through NIFT (National Institute of Facilitation Technology).

5


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5.1.1 INTRODUCTION

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

following the Bank Nationalization Act 1947.

The Bank has a customer base of approximately 4 million and a nationwide distribution

network of 1,700 branches, including Islamic banking branches, and ATMs.

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.

5.1.2.HISTORY AND BACKGROUNG

MCB Bank Limited (Formerly Muslim Commercial Bank Limited) has a solid foundation

of over 50 years in Pakistan, with a network of over 1700 branches.

Eighteen 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

has restructured its asset portfolio and rationalized the cost structure in order to remain a

low cost producer.

MCB now focuses on three core businesses namely Corporate, Commercial and

Consumer Banking.Corporate clientele includes public sector companies as well as large

local and multinational concerns. MCB is also catering to the growing middle class by

providing new asset and liability products. MCB looks with confidence at year 2005 and

beyond, making strides towards fulfillment of its mission, "to become the preferred


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provider of quality financial services in the country with profitability and responsibility

and to be the best place to work".

5.1.3

MCB has become the only bank to receive the Euro money award for the seventh time and

Asia money award for fifth time in the last ten years .MCB won Best Banking Asia

award in 2008. MCB also won the "Best Bank in Pakistan" award in 2008, 2006, 2005,

2004, 2003, 2001, 2000. In addition, MCB also has the distinction of winning the Asia

Money award in 2009, 2008, 2006, 2005 & 2004 for being "The Best Domestic

Commercial Bank in Pakistan".

2010 The Asian Banker: Strongest Bank in Pakistan

2010 The Asian Banker: Leadership Achievement Award

2010 MMT: Best Bank Led MMT Service

2010 ICAP / ICMAP: BCR Award 2009-Banking Sector

2010 SAFA: Certificate of Merit Award

2009 Asia money: Best Domestic Bank in Pakistan

2009 The Asset: Best Domestic Bank in Pakistan

2008 Euro money: Best Bank in Asia

2008 Euro money: Best Bank in Pakistan

2008 Asia money: Best Domestic Bank in Pa


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Year 2010 2009 2008 2007 2006

Total Assets 1,035,025 944,583 817,758 762,194 635,133

Deposits 832,152 727,465 624,939 591,907 501,872

Advances 477,507 475,243 412,987 340,319 316,110

Investments 301,324 217,643 170,822 211,146 139,947

Share holders 'equity 103,762 94,142 81,367 69,271 53,045

Pre-tax Profit 24,415 21,300 23,001 28,061 26,311

After-Tax Profit 17,563 17,562 15,459 19,034 17,022

Earnings per Share Rs. 13.05 13.05 11.49 14.15 12.65

Number of Branches 1289 1,287 1,276 1,261 1,250

Number of employees 16457 16,248 15,441 14,079 14,019

(5.1.5)Mission:

To become the preferred provider of quality financial services in the country with

profitability and responsibility and to be the best place to work.

Mission Statement:

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.

(5.1.6)Vision Statement:

To be the leading financial services provider, partnering with our customers for a more

prosperous and secure future.


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5.1.7GENERAL PROFILE

PRINCIPLES OF PERFORMANE

Customer Focus:

Over the years MCB has developed strong relationships with its customers by

understanding their needs and treating them with respect, dignity and importance.

The driving force behind its commitment and services is its focus on customers,

ensuring that it not only meets, but exceeds their expectations.

Quest for Quality:

MCB strives to achieve excellence by ensuring that every moment of our time is spent

in adding value, making sure that we do things right, first time, and every time. With

this quest for quality, MCB has always taken initiatives in bringing banking into a new

arena; from cash to the convenience of plastic; from branch banking to internet

banking and from face-to-face customer interaction to online accessibility.

Employees Respect:

MCB encourages diversity and treat each of our employees with fairness. MCB

gives constructive feedback for their continuous development and seek suggestions

from all employees for further improvement. The bank ensures that quality

performance is acknowledged and rewarded and exercise utmost responsibility in

decision-making with regards to our employees.

Team Based Approach:

MCB believes in achieving its Mission and Vision by working together as a

combined group. MCB treats its employees as its internal customers and ensure

that the requirements of internal customer focus are always met. Equipped with in-


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depth product knowledge, and recognizing the strengths in each individual, the

bank strives for optimum-results from our co-workers and bringing out peak

performances by working towards common goals and objectives in today's

dynamic banking environment.

Good Corporate Citizenship:

MCB seeks to continuously improve the quality of life in our communities. The

bank realizes that it has a responsibility to the society in which it operates and it

seeks ways of playing a positive role for the betterment of the community at large

for a progressive environment, better living and a brighter future.

( 5.1.8)PRODUCTS AND SERVIES

Commercial Banking

Deposit Accounts:

Basic Banking Account:

A simple account to produce the habit of saving for beginners like students. The

account can be opened with only Rs. 1000, no minimum balance required, no any

monthly or annual charges applicable on this account, two deposits and two

withdrawals can be made in a month. Also you can avail the facility of MCB ATM

card and MCB smart card.

Pak Rupee Current Account:

MCBs Pak Rupee Current Account offers you the convenience of unlimited

withdrawals i.e. access to your funds whenever you want without any notice. There

is no limit on the number of transactions you make in a day plus you can avail

finance facility up to 75% of the total deposit. In addition, you have access to a

countrywide ATM network convenient cash accessibility 24 hours a day. The


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facility also provides you with unlimited daily transactions with a limit on

maximum withdrawal amount through the ATM machines

Pak Rupee Savings Account:

MCBs Pak Rupee Savings Account offers you attractive returns on your Pak

Rupee investment with a minimum balance of Rs. 10,000.

In addition, you have access to a countrywide ATM network convenient cash

accessibility 24 hours a day. The facility also provides you with unlimited daily

transactions with a limit on maximum withdrawal amount through the ATM

machines. You can also use MCB Smart card and Locker Facility at economical

charges.

Pak Rupee Term Deposit:

MCB Pak Rupee Term Deposit gives a higher rate of return. It gives you choice of

1 month, 3 months, 6 months, 1 year, 2 years, 3 years, 4 years and 5 year term

deposits.Saving 365 The MCB Saving 365 calculates profits on a daily product

basis and gives you the facility of unlimited withdrawals.

Foreign Currency Savings Account:

MCBs Foreign Currency Savings Account offers you attractive returns on your

Foreign Currency investment. You can invest in any of the four currencies i.e. US

Dollar, UK Pound Sterling, Japanor Euro Your foreign currency account is

exempted from Zakat and withholding tax.

Foreign Currency Current Account:

MCBs Foreign Currency Current Account offers you the convenience of

unlimited withdrawals i.e. access to your funds whenever you want without any

notice. There is no limit on the number of transactions you make in a day.

MCB Foreign Currency Term Deposit:


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MCB Foreign Currency Term Deposit gives a higher rate of return. It gives the

choice of 1 month, 3 months, 6 months, 1 year, 2 years, 3 years, 4 years and 5 year

term deposits.

Smart Dollar Account:

The Dollar Khushali Account, a Dollar based account was introduced in 1993 at

selected MCB Bank branches. Today, you can open a Smart Dollar Account at

over 200 branches in Pakistan with a minimum amount of USD 10,000.

Business Account

With MCB Business Account you can avail higher number of free transactions

with higher balance. The account can be opened with Rs. 50,000. You can make

free Deposits and Withdrawals from all nation-wide branches.

(5.19)Loan Products:

MCB Business Sarmaya:

MCB Business Sarmaya is the best Running Finance facility against your

residential property which empowers you to manage your business dealings better.

So act today and get MCB Business Sarmaya and thus improve your business,

avail lucrative opportunities and expand your business, with absolute satisfaction

of cash flows.

MCB Car4u:Life is like a chess board. You plan your career options. You analyze your business

moves. But when you really want to improve your life, you make a power move.

MCB CAR4U Auto Finance is the power move that assists you in more ways than

you ever imagined. It is affordable, with lowest mark up 16%, flexible conditions,

easy processing and above all, no hidden costs.


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MCB Pyara Ghar:

Some destinations require a long wait. Like waiting for a home of your own. But

with MCB Pyara Ghar it is now easy to step into your home and start living a real

life.

MCB Pyara Ghar is an ideal Home Finance from your own bank that lets you

Purchase, Renovate or Construct your home the way you have always wanted.

Having your own home was never so easy.

Easy Personal Loan:

MCB Easy Personal Loan provides you with the financial advantage to do things

you've always wanted to but never had the sufficient funds for. Take that much-

needed holiday. Buy a car. Refurnish your house. Purchase a new TV. Finance a

better education for your children.

MCB Master Card:

Since the beginning of time, people have tried to find more convenient ways to

pay, from gold to paper money and checks. Today, money is moving away from

distinct hard currencies and towards universal payment products that transcend

national borders, time zones, and, with the Internet, even physical space. Plastic or

"virtual" money, credit, debit, and electronic cash products, inevitably will replace

cash and checks as the money of the future.

MCB Rupee Traveler's Checks:

MCB Rupee Traveler's Checks were first introduced in 1993 as safe cash for

traveling and travel related purposes. The product has been extremely popular and

is preferred over cash by customers while traveling and in all walks of life.

MCB Rupee Traveler's Checks- The safest way to carry Cash.


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5.2

Cash Management Services:

MCBs network of over 1700 branches in Pakistan enables it to collect and

disburse payments efficiently with its cash management services. This also enables

it to offer you a choice of paper based or electronic fund transfer solutions

including collection amounts, cross branch on-line transactions etc.

Working Capital Loans:

Based on the customers specific needs, the Corporate Bank offers a number of

different working capital financing facilities including Running Finance, Cash

Finance, Export Refinance, Pre-shipment and Post- shipment etc. Tailor- made

solutions are developed keeping in view the unique requirements of your business.

Term Loans:MCB offers Short to Medium Term Finance to meet capital expenditure and short

term working capital requirements of our customers. The loans are structured on

the basis of underlying project characteristics and cash flows of the business.

Trade Finance Services:

Under Corporate Banking MCB offers trade finance services that include an entire

range of import and export activities including issuing Letters of Credit (L/Cs),

purchasing export documents, providing guarantees and other support services.

5.2.1Online Services:

MCB ATM Services


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With a solid foundation of over 50 years in Pakistan, with more than 750

automated branches, 269 online branches, over 222 MCB ATMs in 41 cities

nationwide and a network of over 12 banks on the MNET ATM switch, MCB is

positioned at the forefront of the banking industry in Pakistan. This success has

been possible because of a never-ending drive to achieve higher levels of

excellence, constantly striving to raise the level of performance.

MCB Mobile Banking:

At the forefront of technological excellence, MCB proudly introduces MCB

MOBILE BANKING. The convenience of accessing your account balance

information and mini statements whenever you want or wherever you may need

them, with comfort and peace of mind.

MCB Call Center:

Keeping up with banking services can be tedious but not with MCB Bank, where

phone service is at your fingertips. Just dial our Call Centre from the comfort of

your home or office or wherever you happen to be. It offers basic banking services

for your convenience, eliminating the need for you to make unwanted trips to your

branch.

MCB Smart Card:

MCB now brings you MCB SmartCard -a secure and convenient instrument of

payment with unmatched functionalities. It provides 24-hour direct access to your

bank account.

The convenience and flexibility of MCB SmartCard will help you live a smarter

life. It not only helps you manage your expenses, but also eliminates undue interest

on your day to day credit card transactions. Your balance is always within your

reach and you spend accordingly.

MCB Debit Card:


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Now MCB brings a secure, convenient and quick payment facility that enables you

to do purchasing by using your existing MCB ATM / MCB Smart Card as a

DEBIT CARD.

5.2.2Virtual Banking:

MCB Virtual Internet Banking offers you the convenience to manage and control your

banking and financeswhen you want to, where you want to. MCBs Virtual Internet

Banking facility is simple and secure. And it is free of cost. With MCB Virtual Internet

Banking you can access any of the banking services, 24 hours a day, 7 days a week and

throughout the year.

MCB Virtual Internet Banking offers a wide range of online services which makes your

banking accessible anytime and from anywhere.

Detailed Account Summary of all listed accounts.

Mini-statements of each of the listed accounts showing recent transaction history

for that account(s).

Statement-by-Period of each of the listed accounts, based on the period specified.

Immediate or Scheduled Transfer of Funds between your own accounts, as well asto third-party accounts setup as beneficiaries, maintaining accounts with MCB.

Scheduling of One-Time as well as Recurring Funds Transfers.

Payment of utility bills for registered Utility Companies.

Immediate or Scheduled Bills Payment. Scheduling of One-Time as well as

Recurring bill payments. Option for Full or Partial payment based on the

payment conditions specified by a particular Utility Company.

Bulk Salary Transfer for Corporate Customers, to facilitate them in paying salary

to the corporate employees, who maintain accounts with MCB.

Bulk Funds Transfer for Corporate Customers.

Check Book Request for any of your listed accounts.

Payment/Transfer Alerts for reminding, in advance, prior to the processing of

specified payments and transfers.


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Personal Alerts for reminding of pre-specified events and occasions.

5.2.3Islamic Banking:

Deposit Schemes :

For customers who are looking for a deposit opportunity where they can purse their funds

and reap halal returns on it, we offer the following products:

Al-Makhraj Saving Account

Al-Makhraj Ianat Account

Al-Makhraj Term Deposit

Fund Based Facilities

Ijarah Products

MCBs Islamic Ijarah, analogous to the English term 'leasing, is based on the Ijarah wa

Iqtina concept which means the sale of the asset to the lessee after the Ijarah has matured.

Under this scheme, MCB will be the owner of the asset, and the customer (lessee) will be

given the asset to use for a certain period of time in return for monthly rental payments.

MCB will give a separate unilateral undertaking that it will offer to sell the asset to the

customer (lessee) at the maturity of the Ijarah agreement at a price that may be equal to thesecurity deposit amount, hence the term Wa Iqtina.

Types of Ijarah:

1. Car Ijarah

2. Equipment Ijarah

(5.2.4)

A broad view of market is important when management is interested in introducing better

services for customers. Rapid technological change, global competition and the diversity

of buyers preferences in many markets require the constant attention of the market


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vouchers to identify promises business opportunities, see the shifting requirements of the

buyers, evaluate changes in competitors positioning and guide the choice of which buyers

to target and classify them according to respective segments. Identification of external

and macro factors that influence buyers and thus change the size and composition of

market overtime involves initially building customer profiles. These influences include:

Political and legal environment

Economic trends

Socio cultural environment

Technological factors

POLI TICAL AND LEGAL ENVIRONMENT:Banks are strongly affected by the political and legal considerations. This environment is

composed of regulatory agencies and government law that influence and limit various

organizations and individuals. Mostly these laws create new opportunities for business.

Business legislation has following main purposes

o To protect banking companies from unfair competition.

o To protect consumers from unfair business practices adopted by banking

companies

o To protect the interest of the society from unbridled business behavior.

ECONOMIC TRENDS:A banking market requires better consumer market in volume along with higher borrowing

power. The available borrowing power depends on:

o Consumer income

o Saving rates

o Consumption patronso Rates of interest

o Budget deficit

o Exchange rates

o Cost of living

o Inflation


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SOCIO-CULTURAL ENVIRONMENT:A society is shaped by beliefs, norms and values. People in a society consciously and

unconsciously interact with:

Themselves

Others

Organization

Society

TECHNOLOGICAL FACTORS:

Forces of technological advancement have played the most dramatic role in shaping the

lives of people. The rate of change of technology has greatly affected the rate of growth of

economy. New technology is creating deep rooted affects which could be observed in long

run. The improvement techniques involved in on line banking. In brief PEST analysis

affects the overall banking companies and provides us the information about the external

macro condition.

Chapter#6

ORGANIZATIONAL STRUCTURE

Board of Directors

Mian Mohammad Mansha Chairman

Mr. S. M. Muneer Vice Chairman

Mr. Tariq Rafi Member

Mr. Shahzad Saleem Member


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Mr. Sarmad Amin Member

Dr. Muhammad Yaqub Member

Mian Raza Mansha Member

Dato' Mohammed Hussein Member

Mr. Aftab Ahmad Khan Member

Mr. Abdul Farid Bin Alias Member

Mian Umer Mansha Member

Mr. Muhammad Ali Zeb Member

Mr. Atif Bajwa President / CEO

6.1.1

Commercial Banking 971

Lahore East 61

Lahore West 72

Faisalabad 58

Gujranwala 83


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Islamabad 83

Sargodha 82

Peshawar 64

Abbottabad 82

Karachi East 51

Karachi West 42

Karachi Central 17

Hyderabad 58

Sukkur 52

Quetta 34

Bahawalpur 54

Multan 78

(6.1.2)Organizational H ierarchy

President

Senior executive vice president

Executive vice president

Senior Vice p resident

Vice president

Assistant Vice President

Grade 1

Grade 11


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Grade 111

Assistant

Clerical Staff Non-Clerical Staff1) Cashier 1) Messenger2) Technical Staff 2) Dispatch Rider

The Organizational chart within deptt. & in different offices.

Head Office Regional Office Zonal Office Branch

Divisional head Regional Head Zonal Head Branch Manager(SEVP) (EVP) (VP) (VP, AVP)

(6.1.3)MCBs 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, the Bank pushed the products with full thrust. The Bank has also launched a

running finance facility against mortgage of property.

Technology continued to play an important role in improving and expanding product

offerings.

The Bank introduced more IT based products to cater to the changing lifestyles and needs

of the customers.

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.


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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, ATMs and MCB Call Centre, currently with six payment partners.

Similarly, the Bank also took initiatives to increase the usage of debit facility. To provide

timely and updated information, MCB has also provided a new look to its website which is

user friendly and considerably easy to browse.

The Islamic Banking initiative has been very successful in attracting new customer, both

individuals and companies. Similarly, those relationships, which were confined only to

current account facility, have grown into stronger business relationships. The branch

network was expanded to Lahore and Multan during the last year and recently been

extended to Hyderabad and Faisalabad. 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.

Some wide-ranging new strategic initiatives were also taken up which will be important

for the Bank in years to come. A private company has been formed in Hong Kong (fully

owned subsidiary of MCB) in partnership with Standard Chartered Bank, handling trade

transactions of select countries in the Asia-Pacific region. It is projected to earn US$ 1

million in its first year of operations. To increase its international presence, 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 non-

resident Pakistanis.

Furthermore, feasibility is also being carried out for entering other international markets.

MCB's operations continued to be streamlined with focus on rationalization of expenses,

re-alignment of back-end processing to increase productivity, enhancement of customer

service standards, process efficiency and controls. 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,

expertise and reduce delivery cost.


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Management of Human Resources has been one of our core focus areas. MCB is

committed towards attracting, retaining and motivating outstanding people. Challenge for

MCB is to provide an environment in which employees can better realize their potential.

The Bank introduced 'reward for performance' where high potential officers were

identified and rewarded accordingly. In view of the competitive environment, the Bank is

focusing on performance and introducing a more robust performance management system.

MCB is also strongly committed to training its staff at all levels.

6


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The following activities have been done during the time period of internship. The

activities given below are on the weekly basis. Mainly during the internship I worked in

all the departments and learned the working and procedures that are necessary for the

processes.

(6.1)First week:

Observed basic business process

Observed movement of customers and Employees inside the Branch

Learned basics of Account Opening

Opened Accounts of GOVT employed persons

Opened PLS saving Accounts

Opened BBA accounts

Opened Student account

Worked as CSO(Customer Service Officer) because CSO was on leave and

performed the following activities:

o Attended phone calls

o Attended customer inquiries

o Received ATM forms

o Received and entered daily DAK

o Filled cheaque book requisition slips

In first week I observed the basic business process. At the end of each day I totaled the

electricity, water, telephone and check amounts. Mostly the total was correct. But

sometimes when the total does not match with the sheet of the PRINTING I had to do it

two or even three times.


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Process:

Account opening is the basic procedure to create a relationship between a customer and a

banker. When a customer opens his/her account it increases the business of the bank. The

following steps are taken while a new customer enters in a bank for opening his/her

account. These steps are;

When a customer wants to open an account the authorized officer gives him/her an

account opening form. This form is known as RELATIONSHIP CONTRACT FORM.

This form is filled out with the hands of the customers.

All the required fields that are mandatory for account opening should be filled

compulsory. These are the fields like title name of the customer, occupation, address of the

customer, phone nos, correspondence address, e-mail address, etc.

(a)requirements for opening an account for the individual;

In case of employed person

Copy of CNIC

Salary slip

A letter from employer Initial deposit of Rs.100 to 1000.

Photo copy of utility bill

In case of non employed person

Copy of CNIC

A letter from Dist. Nazam

Initial deposit of Rs.100 to 1000.

Photo copy of utility bill.

(b)requirements for opening an account for the partnership;

Copy of CNIC

Copy of CNIC of all the partners

Request letter of account opening

Company letter head


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Copy of registered certificate (if registered)

Signature specimen duly attested

Initial deposit may be from Rs.100 to 1000

In both cases there is some amount which is fixed for opening current and saving account

that is;

For opening current accountRs.10, 000 is required.

For saving accountRs.5000 is the limit.

After all these requirements, the authorized officer attaches two signature specimen

forms called SSC and one requisition form. On which the authorized officer put his/her

signature and pasted signature admitted and verified and bank stampon it.

Along with this form the copy of CNIC and a Verisys form and form known as (KYC)

is attached with it.

At the last a separate file is maintained for each of the customer for banks record.

Second week:In the second week of my internship I learned about Cheaque book, Debit card and Alico

products. Some details are as follows:

Learned About the Requisition request of Check for new Account

Learned about the issuance of new cheaque book.

Filled the ATM request forms

Learned how to issue the ATM cards

Learned how to issue the ATM Pins

Got basic information about Bank Assurance offered by Alico

Learned about various offers of Alico

Learned about the installments of assurance account

Learned about the Terms and conditions of Alico.


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(A) Process of getting the new Check Book.

After opening an account, a letter of thanksis sent to the customers

from the Circle Office after 2 or 3 days. After receiving that letter a

customer can obtain his/her check book from the bank. But while customer is coming to

the bank for receiving his/her check book this letter of thanks should be with him.

These are the following steps that are used for gaining check book:

The customer brings the letter of thanks and give to the authorized person. The person

fills the check book requisition slip for the customer and takes his signatures. Then the

authorized person saves that slip in his record and fills another slip and fwd to Karachi

via NIFT and customer is asked to come after 5 days.

After 5 days cheaque book is given to customer after taking his signature in a separate

register But in case if ;

(a)Customer is new than after taking letter of thanks check books would be hand

over to him/her.

(b)But in other case if customer is not new he is a regular customer than at the end

of each check book a requisition slip is attached. So whenever a new check

book would be needed the customer will put his/her signature on it and submit

it to the authorized officer.

(B) Process of getting an ATM/DEBIT card

The following steps are taken while issuing an ATM/DEBIT card. When an ATM or Debit

Cards issue, the following steps are needed:

A copy of CNIC

A minimum Rs.550 should be in respective account.

After filling up all the required documents for ATM card these documents are given to the

authorized person who pasted a verification stamp on these documents and signing on it.


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And at the end, after 5 days the person is called again to hand over ATM card after taking

his Signatures.

(c) Process of getting an ATM/DEBIT card Pin

When the customer is given ATM card he goes to another Person to get his/her secrete Pin

code. The person take the signatures and give it to customer. Then Customer goes to CSO

and activates his CARD.

Alico Products:

Alico offers various products for persons belonging to different age groups. The purpose is

to provide the insurance side by side with savings. Some of them are given below:

Income Max

Current Life Account

Capital Sure

Flexi Life

Har Pal Mehfooz

Life Partner

Dream Weddindg

Retire Easy

Edu Care

Third week:

The main objective is to know about the different functions of cash department. Cash

handling etc.. Although internees were not allowed in cash department because ofsensitivity of matter, they provide me maximum possible knowledge, and I spent few time

in cash.

Learned basic things about Cash department

Learned how to write Cash book

Signature verification


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Cash Deposit slips Processing

Intercity Cheaque Processing

Arranged an event to give Customers awareness about Alico

Made a list of Valued customers

Made invitation letters for customers

Arranged necessary items for the Event

Filled Cash deposit slips

Filled some cheaques for aged persons

Filled cash deposit slips for online Deposit

Process:

In Cash department customer after filling up the checks, bonds etc give it to the

authorized office. The following information are required for further preceding of the

check;

Name of the customer

Exact amount in words and figures

Code of currency

Date of the check

and signature of the Customer

After providing all the above mandatory places check is hand over to the relevant

person.

The authorized person after receiving Checks or bonds puts bank stamp on it

Checks the balance of the customer account.

Verify the signatures of customer

Then gives the cash to the customer.

Some impor tant things that must keep in mind whi le fi ll ing up a check:

a. The check should be enchased on that date which has to be written on the

check


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b. No cutting/overwriting is allowed

c. Signature should be matched with the ID card signature

d. On the back of the check there should be the sign of the issuer

I learned that how to accomplish different tasks like deposit, credit cards slips, and as well

as bonds. I also learned that how original Checks are identified.

Some impor tant things that must keep in mi nd whi le fi ll ing deposit slips:

a. No cutting/overwriting is allowed in amount

b. Amount should be same in words and figures

c. For online deposit a copy of CNIC of depositor is necessary

Fourth Week: Fourth week I spent in Remittance Department and learned following

things:

Learned basic operations of remittance department (PO, DD)

Learned how to make entries and vouchers of incoming TT

Made vouchers and entries for Incoming TT

Learned the difference between DD and PO

Observed other operations e.g. PO (Pay Order), DD (Demand Draft)

Learned bank charges for PO, DD, TT & MT (Mail Transfer)

Learned how to make entries and vouchers for Outgoing TT(Telegraphic Transfer)

Made few Outgoing TT

Learned & Made Inter-Branch Credit Advices against the checks received from

outer city branches

Learned how to make entries and vouchers for Outgoing TT(Telegraphic Transfer)

With these activities, also observed the other activities. The remittance officer also has to

pass the entry that is entered by the cashier. The cashier enters the amount of check and


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the check number. Then the remittance officer enters the password and passes the entry. If

the remittance officer is present on the seat then the operation manager has the authority to

pass the entry. It is actually based on the amount of the transaction. When the amount of

check exceeds a specific amount of Rs. 200000 the remittance officer has to pass that. And

when the amount increases to Rs. 500000 the operation manager has to pass that entry. To

open the customers account and to keep information of each of the customer separately so

that when information is needed can be obtained easily.

Learned basic operations of remittance department. Remittance department deals with the

foreign remittances. First of all the remittances are received in the post. Normally two

types of remittances come. One is credited to the accounts in our branch and the other is to

be given in cash to the holder of the XPIN. One advice is normally made for all the

advices that are to be credited to the accounts.

Then the relevant advices are made. In the advices, originating branch is Dharampura

Branch. PNSC Branch is written in the responding branch. The code for the originating

branch is 0992 and for the responding branch code is 0069. Current date is written in the

date field. The amount is written in the relevant fields in figures and in words. In the

favoring, we write the name, account numbers, DD numbers and the amount in front of

every beneficiary. Three copies are prepared for each advice. One advice goes to CSO for

record. One goes for cashier and one goes to the clearing department for entry in the

computer.

Fifth Week:

Learned how to Issue the CDR

Made vouchers and entries for CDR

Made few CDR

Learned how to manage CDR register

Learned payment against CDR

Balanced the CDR Head of GL for 31 July, 2009.


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Learned how to issue a PO

Made Debit vouchers against the PO & DD charges

Made Credit vouchers (contra) against the PO & DD charges

Learned how to make DD and PO

Made outgoing Clearing

Made local clearing

Made intercity clearing

Made return clearing

The Fifth week is from 3rdJuly, 2009 to 8thJuly, 2009. The main objective of this is to

know about the demand draft (DD), pay order (PO), and cash deposit receipt (CDR). To

know about these entire why all these documents are used. And how much charges have to

be paid for making all these.

(a) Procedure of making Demand Draft (DD) and Pay Order (PO):

Out of the city DDis used, DD is made through Check and Cash. Rs.50 is charged on cash

slip and in case of check slip Rs.220 is charged.POismade within a city. It is also in the

form of Cash and Check. Rs.50 is charged on cashand Rs.220 is charged on check slip.

If a regular customer wants to make DD or PO then in this case he/she has to fill

up a form. This form is known as FUNDS TRANSFER FROM;on making this

DD/PO Rs.50 is charged for making this in case of account holder but for non

account holder Rs.220 is charged.

In the form all the mandatory places are compulsory to fulfill. Like, currency of

instrument, type of remittance, beneficiary details, particular of applicant, applicant

signature etc. these are such requirements that must be fill up.

And at the last the authorized officer puts his/her signature on DD/PO form and

three stamps are pasted on it;

a. Transfer stamp

b. Signature verified stamp


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c. Crossing check stamp ( in case if half payment is made through cash form,

then a check is fill up for this and attached with the DD/PO form)

And at the last the operational manager puts supervision on this and all the records are

transferred into computer for bank records.

(b) Procedure of making of Cash Deposit Receipt (CDR):

CDRis used locally. It is also in from of Cash AND Check. CDR has no charges.

A request form is filled by the hands of the customer for making CDR. This form

is known as CREDIT DEPOSIT FORM.

In this form some requirements are compulsory which has to be full up these are

check no, the person name to whom it is going to be transferred, signature

specimen, date etc.

After all these the verification stamp, check transfer stamp, and signature verified

stamp is pasted on it.

And at the final stage, all the transactions are recorded in a register for keeping

banks records.

I learned that how DDs, CDRs and POs are made. And how many charges areapplied on it.

In this week I was a bit for remittances that are to be paid in cash, one advice is made for

each of the remittance. The person comes in the bank with the XPIN. He gives it to us.

With XPIN he gives the photocopy of the CNIC. One advice is made for him. Three

copies are prepared for each advice. One advice goes to CSO for record. One goes for

cashier and one goes to the clearing department for entry in the computer.

Procedure for outgoing clearing

I also madeout going clearing, for outgoing clearing a list I made an excel sheet of all bills

having depositing account number, amount and cheaque number then separated bills from

slips then posted various stemps on bills and slips as follows


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Clearing stamp of next date on front of bill

Accounts credited stamp on back of bill

Clearing stamp on front of deposit slip

Procedure for intercity Clearing

I also made intercity clearing. For Intercity Clearing a stamp of intercity posted on face of

bill, then amount, acct number and city name is entered in a separate register and deposit

slip is attached in a specific file. And a stamp is posted on back of bill. A separate slip is

filled for every city given by NIFT. In the specified envelope is used for every city given

by NIFT with printed name of city.

Sixth week:

(FINANCE,PUBIC DEALING, TDR)

Learned about dormant account.

Learned about the activation of dormant account

Learned about TDR Learned how to make TDR

Learned basic types of financing

Studied a Running Finance Case

Learned about instant finance

Learned about the different documents required for Credit Investigation

Studied Financial statements of a client company

Learned about the documents required for Running Finance Learned the Concepts of Demand and Cash Finance

To become familiar that how a customer account change into dormant account.

Process:


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An account is closed when a customer does not make any transaction in his/her account

till 90 days.

A letter is send to customer to inform him/her, and in case if bank does not receive any

response from customers side then the account of customer becomesDORMANT,

after that a customer cannot make any DR or Cr transaction in his/her account.

But in case if a customer draws a check in dormant account then it is returned back from

the clearing department with a stamp of dormant account.

After that customer cannot make any type of transaction in his/her account.

Procedure for activation of a dormant account:

a. The customer has to given a written request for activation of the account.

b. Copy of CNIC.

c. And a Debit transaction on the same day is made.

After working in this area I learned that what things are compulsory to running an account

and how we can avoid the dormant account.

TDR (Term deposit receipt):

Procedure:

TDR may be issued for 2 months or 3 months but calculation is made on daily basis.

A term deposit receipt has to be filled for TDR on which the following mandatoryplaces

have to be fulfilled:

Received form

Amount

Deposit period Amount in figures

And account number

After the whole information is recorded into the computer system.

And prepare TDR is given to the customer.


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Seventh Week:

Made GL(general Ledger)analysis

Analyze different heads of Assets, Liabilities, Income, and Expenses.

Made Annual Expanses increase Analysis

Filled Credit Proposalcum Sanction Advice MCB Instant Financing, BBFS

(Borrower Basic Fact Sheet) and Application for Finance for renewal of 3 cases of

CF.

Studied credit proposals.

Studied Credit Scoring and Risk Rating for the clients

Studied classification of customers in the categories

Substandard

Doubtful

Loss

In the last week of my Internship Manager offered me to learn something of managerial

level which I accepted happily. So manager gave me data and asked to analyze the

difference of expenses of July 2008 and July 2009 because there was a major increase inExpanse account. So I analyze different sub account and separate 6 accounts showing

major increase, I also separated 6 accounts which were showing major decrease.

Onl ine transactions and Lockers

Objective:

The objective is to learn about the money grams how they make? And to know about the

lockers and as well as to get knowledge that how online transactions are done.

(a)ONLINE TRANSACTIONS

Procedure:


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In on line transaction the process is so simple in this the client receives a request form

from the customer for online transactions. In such case customer presence is not

compulsory. In this the following requirements are necessary to keep in mind. These are:

Sender name,

Customer account number,

Bank and branch name,

Check no,

Beneficiary branch no,

Total deposit and date.

An online check is received form customer along with the print out of a voucher is

attached with the check. And three stamps are pasted on it, these are;

Clearing Stamp

Intercity stamp

Transfer Stamp

And then in the last entry of an online check is recorded in the register for

maintaining bank records.

(b) LOCKERS

Procedure:

whenever a new customer wants to operate locker he/she signs on a SSC card. And a

separate register is maintained for thispurpose.

and after that whenever customer wants to operate the locker than the authorized person

takes the customer signature on the maintained register. And these signatures are matched

with the SSC card signatures.

only relevant customer is allowed to operate.

Learning:

After working in this area I learned what money gram is and why it is used for? And as

well as I also learned about the online transactions and the procedure used for lockers.


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MCB Limited is one of the most thriving commercial banks at present in Pakistan. The

organization is in the process of building itself into a force to consider. The bank is doing

all sorts of new things in order to accumulate a set of distincti ve competenciesthat could

later on be transformed into a competitive advantage of considerable value. In this process

of developing, striving, facing minor set backs and striving with even more zeal, the bankenjoys some strengths, needs to improve upon some weaknesses, can exploit some

opportunities and is hampered by few threats.

This SWOT analysis of MCB Limited takes into consideration the external as well as the

internal environmental structure of the bank.

Strengths:The predominant strengths of MCB Limited are

Humble Management

Strength And Commitment Of Sponsors Efficiency

Phenomenal Growth

Vastly Experienced Management

Highly Professional Human Resource Department

Crucial Location Of Branches

Good reputation

Strong branch network

Trained, Skilled & cooperative employees

Faster banking services

Reasonable service charges Personnel of MCB are well trained and highly skilled. Majority of employees has

many years of experience in banking sector and are an asset for the bank

MCB has a wide network of branches at the ideal locations, catering the financial

needs of its clients

Foreign Trade is the focus of bank. It has become an ideal bank for the importers

and exporters


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Strong Security System

Weaknesses: The chief weaknesses are

Small Size

Less Efficient Computer And I. T. System

Disproportionate Presence Of Old Staff In The Upper Management Hierarchy

Skill Set Of Employees Is Not Up to The Mark As There Is No Job Rotation

Foreign Banks Still Are A Little More Prestigious

MCB Limited Does Not Possess Foreign Network

No Advertising In Electronic Media

Behavior towards customer

Insufficient advertisement Inefficient HR policies

Mismanagement of time

Overloading of work on employees

Outdated software

It is a step behind in using new technology as compared to other banks

Most of the employees are overloaded with work. There is uneven distribution of

work and promotions are not very timely

It is slow in the introduction of new services

High cost of production

Opportunities:

The opportunities on which MCB can capitalize upon are

Extension of local branch network

Establishing foreign branch network

Capitalizing on information technology

Effect of Privatization

Emphasis on information technology

Branch network To be in the list of top banks

Marketing

Unexplored market of multinational corporations

Growth in textile sector

Adopt E-banking


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Thearts:

The predominant threats MCB is facing at the moment are discussed in the following

lines.

Private sector banks

Government policies

Increased competition in banking market

Unstable economic situation

Network expansion by foreign banks

If Pakistani banks (especially state owned banks), backed by huge networkimprove the service they give and their employee skill set

Terrorist image of the country

Inconsistency in government policies

Ratio Analysis of the MCB:An index that relates two accounting numbers and is obtained by dividing one

number by otherRatio Analysis is an important and age-old technique of financial

analysis. It simplifies the comprehension of financial statements. Ratios tell the whole

story of changes in the financial condition of business. It provides data fro inter firm

comparison. They also reveal strong firms and weak firms, over- valued and undervalued

firms. Ratio analysis also makes possible comparison of the performance of different

divisions of the firm. The ratios are helpful in decision about their efficiency of otherwise

in the past and likely performance in future. Ratios also help in Investment decisions in

the investors and lending decisions in the case of bankersetc.Following are the main types

of ratios that I am going to calculate in this report to compare and highlight the financial

performance of MCB in 2009 with 2008.


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FINANCIAL RATIOS 2009 2008

Profit before tax ratio

(PBT/ total income)

55.91% 63.80%

Gross Spread (NIM/Int

Income)

69.31% 71.13%

Income/ expense ratio Times 3.84 4.10

Return on average

equity (ROE)

27.35% 31.49%

Return on average assets

(ROA)

3.25% 3.60%

Return on Capital

Employed (ROCE)

27.35% 31.49%

Earnings per share (EPS

before tax)

Rs. 33.50 31.64

Earnings per share (EPS

after tax)

Rs. 22.42 22.25

Advances/ deposits ratio

(Gross)

73.37% 82.64%

Advances/ deposits ratio

(Net)

68.89% 79.39%

Breakup value per share Rs. 88.37 75.60

Breakup value per share

(including surplus)

Rs. 100.91 84.55

Earning assets to total

assets ratio

87.23% 85.70%

Capital Adequacy Ratio 19.07% 16.28%


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RecommendationsIn the light of above given SWOT analysis, in the following lines I shall put forth some ofthe measures MCB Limited should necessarily take in the near future. The followingrecommendations include short term as well as long-term issues.

MCB Limited should continue to expand its business, by increasing its deposit portfolio

through aggressive market penetration strategies.

MCB Limited needs to use more marketing channels to make the public aware of its

products and services. In the presence of intense competition MCB Limited has to realize

the importance of marketing.

MCB Limited should immediately improve its Information Technology System. The soft

wares currently in use should be made error free.

Management should distribute work equally among different employees. Some of theemployees are overburdened while some sections are overstaffed.

There are a disproportionate number of seasoned bankers in the top management who

have the responsibility of making strategic decisions. They should also include a

reasonable proportion of young bankers whose mindsets teem with new creative ideas,

which might prove to be invaluable for MCB Limited.

One of the most pressing needs of the time is to advertise MCB Limited in the electronic

media. MCB Limited has not, till date, employed advertisement in electronic media as a

full fledge marketing tool. I think it is high time that BAL does this.

MCB Limited needs to improve its website. More information relating to financial

performance of the bank should be available on the website.

MCB Limited should evolve a very serious management policy to attract multinational

corporations as its clients. This action, if actualized, would not only prove to be highly

profit generating, but it would also contribute a lot towards MCB Limiteds image

building.

The number of women hired by MCB Limited is very less. MCB Limited should employ

more women. Moreover it should also recruit women for working in Credits

Presently, like most of the commercial banks working in Pakistan, a high percentage of

Bank MCB credit client hail from two or three industrial sectors.

MCB should make makes work teams in Credits like other banks such as ABN AMRO

and City Bank. It will have a positive impact on the morale of employees. Their

performance will improve as a result of distribution of work and responsibility. And it

will also enable the bank to hire talented women in the Credits as well.


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Conclusion:

Practical Training Program, spanning across twelve weeks, does a world of good

for the students, as it enables them to have a glance into the organization, which they plan

to join in the near future as managers. At this point it certainly is significant to write a

word of gratitude for the institutes administration, which makes it sure, that all the

students get an exposure to practical life in relatively well-reputed organizations.I must

underscore the fact that writing this internship report was an evenly memorable experience

as actually doing the internship. I honestly tried my level best to come up with an

original piece of writing that could serve as a vivid proof of the fact that students at UOG

are certainly no mug at what they do. I truly hope that this report also certifies the fact that

all of my worthy teachers performed their duties of academic guidance and moral

mentoring with utmost efficiency and effectiveness. It is evident from this report

and the financial statements of MCB that it is making progress by leaps and bounds. The

profits of MCB have grown considerably during the last few years and this trend is

expected to continue into the future. Therefore, we conclude that MCB has a very

prosperous present and future, which assures the shareholders of wealth

maximization.Side by side of it I think that if bank would be able to cover and control on

the above mentioned recommendations then it would be in such a situation that will really

lead it towards the road of prosperity, development and integrity. And with the above

mentioned sentences I think there is also a fault of the customers and in order to make the

proper working of the bank the customers should also cooperate with the bank which will

be really a good, ambitious and diligent condition for the bank. And then bank will be

really in such a situation and position to compete its competitors in the country as well as

on international level.I hope that this report enables me to keep a memory of those days at

the Bank when after a few years I read this report.


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References

Introduction: http://mcb.com.pk/mcb/about_mcb.asp

Vision / Mission:http://mcb.com.pk/mcb/mission_vision.asp

Corporate information: http://mcb.com.pk/mcb/corporate_information.as

Internship Activities:

PBO (Mr., Sajid)BOM (Mr. Yasir)CSO (Miss sane)

Remittance (Miss Amana)

Financial Statement: Google.com.pk

Ratios: Analysis of Financial Statement by Charles. P. Jones
http://mcb.com.pk/mcb/about_mcb.asphttp://mcb.com.pk/mcb/mission_vision.asphttp://mcb.com.pk/mcb/mission_vision.asphttp://mcb.com.pk/mcb/about_mcb.asp


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