Internship Report at MCB Bank Limited

INTERNSHIP REPORT ON MCB BANK LIMITED
PRESENTED TO: PROF. DR. EHSAN MALIK
PRESENTED BY: SHEHZAD WAHEED (MC09124)
UNIVERISITY OF PUNJAB GUJRANWALA CAMPUS
SUPERVISED BY: MR. HAFIZ IMRAN AKRAM SIGNATURE: _____________
PRESENTED BY: SHEHZAD WAHEED (MC09124)
EXECUTIVE SUMMARY
As a compulsory part of degree of master of commerce, I did my 6 weeks internship in a branch of MCB Bank Limited, located at Bank Square Gujranwala.
MCB Bank Limited (formally known as Muslim Commercial Bank) is one of the oldest and biggest banking company of Pakistan with a domestic network of over 1,130 branches and 600 ATMs across Pakistan with a customer base of 4.5 million (approximately). It was incorporated on July 09, 1947 under Indian Company Act 1913 and was nationalized in 1974 as part of Government of Pakistan's economic reform movement and was later privatized to Nishat Group in 1991. MCB Bank has won various Euro money and Asia Money awards as best bank in Asia and Pakistan. Since the privatization of the bank, MCB has implement different policies to make it one of the best banks of Pakistan, which included introducing new products and services and increase its operations by opening new branches in Pakistan.
During the period of my internship at MCB, I did not find any problem in my learning process. Although there were some limitations but they were manageable. I learned the processes of remittances, account opening, ATM Card, dealing with information seeking customers, sending and receiving confirmation mail and different types of letters. I mainly worked in clearing and posting department most of the period of my internship. I also commented on daily high value transactions of the branch and prepared KYC forms and different debit and credit vouchers. Financial analysis and SWOT analysis of MCB are also included in this report. As a whole, it was quite a good and exciting learning and practical experience because it was my first time to having opportunity of learning in real business world and other than class rooms.
ACKNOWLEDGEMENT
First of all I am really thankful to almighty ALLAH, who gave me the strength to complete degree and internship in time and without problems.
I am grateful to all my teachers who gave me knowledge and enabled me to use that knowledge into practical field during my internship.
I am also thankful to staff at MCB, Bank Square branch for being a help in matching my class room knowledge with practical working processes. Especially the branch manager Khawaja Salman and Chowdary Afzal. They were really a useful help during my internship period.
My Loving Parents and Honourable Teachers
Table of Contents
Content Title Page Inner Page Executive Summary Acknowledgment Dedication Table of Contents 1.0: INTRODUCTION TO REPORT 1.1: Introduction 1.2: Purpose 1.3: Sources and Methods of Collecting Information 1.4: Limitations of Information Gathering 1.5: Explanation of Accounting & Business Techniques and Limitations 2.0: ORGANIZATIONAL PROFILE 2.1: About MCB 2.2: History of MCB 2.1.1: Nationalization 2.1.2: Privatization 2.2.3: Board of Directors 2.2.4: Other Information 2.3: VISION STATEMENT 2.4: MISSION STATEMENT 2.5: Values at MCB 2.6: Awards & Accolades 2.6.1: Euro Money Awards 2.6.2: Asia Money Awards 2.7: Organizational Setup 2.8: Management Structure 2.9: MANAGEMENT HIRARCHY 2.10: Policy Formation 2.11: Managerial Policies 2.12: Products & Services: 2.12.1: Personal Banking 2.11.2: Corporate Banking 2.11.3: Islamic Banking Page# i ii iii iv v vi 8 9 9 9 10 10 13 14 15 15 15 16 16 17 17 18 19 19 20 21 22 23 24 24 25 25 54 58
2.11.4: Agriculture Division 2.11.5: Other Services 3.0: DEPARTMENTS 3.1: Departments at Main Office 3.2: Departments at Branch 3.2.1: General Banking 3.2.2: Foreign Exchange Department 3.2.3: Credit Department 4.0: AREA OF INTERNSHIP 4.1: Work Done by Me 4.1.1: First Week 4.1.2: Second Week 4.1.3: Third Week 4.1.4: Fourth Week 4.1.5: Fifth Week 4.1.6: Sixth Week 5.0: FINANCIAL ANALYSIS 5.1: Financial Statements 5.2: Results 5.3: Explanation of Results 6.0: SWOT ANALYSIS 6.1: Internal Analysis 6.1.1: Strengths 6.1.2: Weaknesses 6.2: External Analysis 6.2.1: Opportunities 6.2.2: Threats 7.0: RECOMMENDATIONS 8.0: CONCLUSION 9.0: BIBLIOGRAPHY & REFRENCES 10.0: GLOSSARY 11.0: ANNEXURE
61 67 69 70 70 71 75 76 77 78 78 81 81 83 84 85 86 87 89 93 96 97 97 98 99 99 100 101 104 106 108 114
INTRODUCTION TO REPORT
INTERNSHIP REPORT
1.1: Introduction:
In this section a brief explanation of purpose of this report, sources and methods of information gathering, accounting and business techniques used in this report and limitation of information gathering and accounting and business techniques will be given.
1.2: Purpose:
This report is prepared in the result of internship done at a branch of MCB Bank Limited located at Bank Square Gujranwala. After completing four semesters of M.COM, a six weeks internship is a necessary part of the degree at any manufacturing or service organization.
Internship is indeed a first step into practical field and to work in real business settings. It gives opportunity to use and match the class room knowledge with practical skills and let the student do the research work himself while observing and understanding accounting, finance and management system of the organization. One of the useful objectives of the internship is to work with business professionals.
1.3: Sources and Methods of Collecting Information:
To make this report various sources of information are used. The most important sources of information is staff of branch and self collected data during the course of internship. Financial statements of MCB, website of MCB, different economic reports, press releases, articles, business record and different books of the course are some other names of sources of information used for making this internship report. Financial statements of MCB are collected from the website of MCB and different press releases and news reports are taken into consideration in order to have an understanding of situation of MCB
UNIVERSITY OF PUNJAB, GUJRANWALA CAMPUS
INTERNSHIP REPORT
in banking sector of Pakistan. Annual reports of three previous years of MCB are collected from the financial performance portion of the website of MCB and for the financial and ratio analysis business finance books and different business and information websites and a special lecture given by Sir Hafiz Imran Akram helped me to have a better understanding of analytical methods and to perform the report work in a better way.
1.4: Limitations of Information Gathering:
In large companies like MCB, the access to primary information is a point where different facts do matter like economical and social position of internee. Secrecy policies of bank, non-availability of information in a manner required for analysis are some of the limitations and due to work load on staff of the bank they have very small amount of time to proper assist. The availability of high speed internet connection is also necessary otherwise it seems near to very hard to complete this project in time.
1.5: Explanation of Accounting & Business Techniques and Limitations:

SWOT analysis and financial analysis are explained below:
1.5.1: SWOT Analysis:
SWOT analysis is a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieve that objective. SWOT analysis groups the information into two main categories, internal analysis and external analysis.
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The internal analysis is a comprehensive evaluation of the internal environment's potential strengths and weaknesses. Factors should be evaluated across the organization in areas such as company culture, company image, key staff, access to natural resources, operational efficiency, operational capacity, brand awareness, market share, financial resources, patents and trade secrets etc.
External analysis covers the study of opportunities and threats in particular organization. Changes in the external environment may be related to customers, competitors, market trends, suppliers, partners, social changes, new technology, economic environment, political and regulatory environment etc.
1.5.2: Ratio Analysis:
Ratio Analysis enables the stakeholder to spot trends in a business and to compare its performance and condition with the average performance of similar businesses in the same industry. Ratio analysis may provide the all-important early warning indications that allow you to solve your business problems before your business is destroyed by them. Financial ratios are calculated from the annual financial reports of the particular company.
Financial ratio analysis groups the ratios into categories (solvency ratios, activity ratios, liquidity ratios, profitability ratios) which tell us about different facets of a company's finances and operations. Financial institutions such as banks, financial service companies, insurance companies, securities firms and credit unions have very different ways of reporting financial information, i.e. they use some specialized ratios like earning assets to total assets ratio, net margin to earning asset ratio, deposits times capital etc. Here earning assets are those assets which give markup.
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1.5.3: Trend Analysis:
In trend analysis there are two types of analysis are done which are:
1.5.3.1: Horizontal Analysis:
Horizontal analysis is a form of trend analysis. It uses the figures from a prior years income statement as the basis for calculating percentage increases and decreases over time. It is conducted by setting consecutive balance sheet, income statement or statement of cash flow side-by-side and reviewing changes in individual categories on a year-toyear or multiyear basis. A comparison of statements over several years reveals direction, speed and extent of a trend(s). The horizontal financial statements analysis is done by restating amount of each item or group of items as a percentage.
1.5.3.2: Vertical Analysis:
Vertical analysis examines relationships within a given year. To do this with the income statement, divide each line by the first item, net sales. Net sales are a summary measure of a firms total activities, so evaluating each income statement item relative to net sales makes sense. The result yields common-size income statements in percentage terms.
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ORGANIZATIONAL PROFILE
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2.1: About MCB:

MCB Bank Limited, with more than 60 years of experience as one of the leading banks in Pakistan, was incorporated on July 9 in 1947. The bank has journeyed remarkable tenure of more than half a century of competitively edged and well positioned heights of success by deploying quality banking, heads on technological developments, professionally leading management and prudent and ethical work methodologies. MCB was nationalized along with other private banks in 1974 as part of Government of Pakistan's economic reform movement and was later privatized to Nishat Group lead consortium in 1991.
Since privatization, MCB's growth has been phenomenal. Today, MCB in one of the largest foreign banks in Sri Lanka, the first bank in Pakistan to launch Global Depository Receipts (GDR) in 2006, has strategic foreign partnership with Maybank of Malaysia which holds 20% shares in MCB through its wholly owned subsidiary Mayban International Trust (Labuan) Berhad since 2008, has international indirect regional presence in Dubai (UAE), Bahrain, Azerbaijan, Hong Kong and Sri Lanka and serving through a domestic network of over 1,130 branches and 600 ATMs across Pakistan with a customer base of 4.5 million (approx.)
MCB is reputed as one of the soundest financial institution and as one of the leading banks in Pakistan with a deposit base of PKR. 462 billions (approx.) and total assets of PKR 605 billions (approx.). The bank is versed as one of the oldest and most responsible banks in Pakistan and has played pivotal role in representing the country on global platforms while being one of the few institutions that are recognized and traded in the international market.
The bank has also been acknowledged though prestigious recognition and awards by Euro Money, MMT, Asia Money, SAFA (SAARC), The Asset and The Asian Banker.
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2.2: History of MCB:

This bank was incorporated under companies act 1913 on 9th July, 1947 (just before partition) at Calcutta. But due to changing scenario of the region, the certificate of incorporation was issued on 17th August, 1948 with a delay of almost 1 year; the certificate was issued at Chittagong. The first Head office of the company was established at Dacca and Mr. G.M. Adamjee was appointed its first chairman. It was incorporated with an authorized capital of Rs. 15 million. After some time the registered office of the company was shifted to Karachi on August 23rd, 1956 through a special resolution, now recently the Head office of MCB has been transferred to Islamabad in July, 1999 and now Head office is termed as Principle Office.
2.2.1: Nationalization:
In January 1974, the Government of Pakistan nationalized MCB following the Banks (Nationalization) Act 1974. MCB was the only bank which was nationalized solely as neither it nor any other bank being merged with it due to its consistent and firm policies and its sound position.
2.2.2: Privatization:
A wave of economic reforms swept Pakistan in the lattes introducing the Need for privatization of state owned banks and companies. 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. Nishat Group is one of the leading and most diversified business groups in Pakistan. The group has strong presence in the most important business sectors of the country such as banking, textile, cement and insurance.
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2.2.3: Board of Directors:
Mian Mohammad Mansha Mr. S. M. Muneer Mr. Tariq Rafi Mr. Shahzad Saleem Mr. Sarmad Amin Dr. Muhammad Yaqub Dato' Mohammed Hussein Mian Raza Mansha Mr. Aftab Ahmad Khan Mian Umer Mansha Dato' Seri Ismail Shahudin Mr. Manzar Mushtaq Mr. M.U.A. Usmani
Chairman Vice Chairman Director Director Director Director Director Director Director Director Director Director President / CEO
2.2.4: Other Information:
Total Branches Islamic Branches Staff Strength Overseas Branches Total ATMs Islamic Branches Total Deposits Total Assets Principle Office
1130 8 10488 7 600 8 431 Billions 567 Billions MCB Tower, I.I. Chundrigar Road, Karachi.
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VISION STATEMENT
To be the leading financial services provider, partnering with our customers for a more prosperous and secure future.
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.
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2.5: Values at MCB:

MCB have some values which are as follow:
Integrity:
MCB is the trustees of public funds and serve the community with integrity. It believes in being the best at always doing the right thing. It delivers on its responsibilities and commitments to its customers as well as its colleagues.
Respect:
MCB respects its customers values, beliefs, culture and history. It values the equality of gender and diversity of experience and education that its employees bring with them. It creates an environment where each individual is enabled to succeed.
Excellence:
MCB takes personal responsibility for its role as leaders in the pursuit of excellence. It is a performance driven, result oriented organization where merit is the only criterion for reward.
Customer Centricity:
MCBs customers are at the heart of everything it does. It thrives on the challenge of understanding their needs and aspirations, both realized and unrealized. It makes every effort to exceed customer expectations through superior services and solutions.
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2.6: Awards & Accolades:

MCB has won some awards in recent years which are as follow:
2.6.1: Euro Money Awards:
Best Bank in Asia Award 2008:
MCB has been awarded as a Euro Money Award 2008 for the Best Bank in Asia".
Best Bank in Pakistan Award 2006:
MCB has yet again received the esteemed Euro Money Award for the Best Bank in Pakistan. It is the only bank to receive the Euro Money Award for Excellence for the sixth time in the past seven years.
Best Bank Award 2005:
MCB has again received the esteemed Euro Money Award for the Best bank in Pakistan. It is the only bank to receive the Euro Money Award for Excellence for the fifth time in the last six years.
In a continuous winning streak, MCB once again takes pride in being conferred with Euro Money's prestigious award of excellence, for being the "Best Bank in Pakistan" for the fourth time in the last five years.
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MCB believes in you. Together we work with quality, integrity and dedication, striving to achieve collective success by understanding changing trends and assimilating into diverse cultures. Your trust in our ability and our commitment to deliver has again won us the Euro Money Award 2003 for the "Best Bank in Pakistan".
Your trust and our commitment is always an award wining combination MCB was awarded as a Euro Money Award 2001 for the Best Bank in Pakistan".
Best Domestic Bank Award 2000:
MCB was awarded as a Euro Money Award 2000 for the Best Domestic Bank in Pakistan".
2.6.2: Asia Money Awards:
Best Domestic Commercial Bank Award 2005:
MCB has been awarded as a Euro Money Award 2008 for the Best Bank in Asia".
Best Domestic Commercial Bank Award 2004:
MCB has a distinction of winning the Asia Money 2004 award for being "The Best Domestic Commercial Bank in Pakistan".
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2.7: Organizational Setup:
HEAD QUARTER
KARACHI
PROVINCIAL HEAD QUARTERS
PUNJAB
LAHORE
SINDH
KARACHI
BALOCHISTAN
PESHAWAR
KPK & AZAD KASHMIR
QUETTA
CIRCLE OFFICES
BRANCH OFFICES
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2.8: Management Structure:
President
Executive Vice President
Vice President
Assistant vice President
Officers Grade 1, 2, 3
Assistants/Clerks
Peon/Guards
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2.9: Management Hierarchy (Branch):
Manager
Operations Manager
Credit Department
Supervisor
Clearing
Remittance Assistant
Cashier
Teller
Teller
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2.10: Policy Formation:
At MCB Bank all policies are formulated at the Head Office at Karachi and are then distributed among the vast network of more than 1130 branches of MCB.
One of the policies they implement is that the Commercial Office East or West, keeps in view new opportunity for a suitable and profitable location for its new branch. But as all policies are done by the HO no suitable information could be gathered.
2.11: Managerial Policies:
Managers handle their staff at branch level. The duties assigned to them are to keep the monthly deposit up to the mark; opening of new accounts has to be either stable or increasing.
They are responsible for assigning leaves to their staff on yearly basis and even handle emergency absence. MCB has a rule of working 9 to 5 daily but, internally their staff has alternate off on Saturdays. The manager has to develop a leave program so as this routine does not disturbs any customer.
They have to handle the problems of disappointed or angry customers and convince them about the best service MCB provides.
They receive specific targets which they have o achieve within the given time period which results in bonuses distributed among the staff and the manager released by the HO.
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2.12: Products & Services:
2.12.1: Personal Banking:
2.12.1.1: Online Services:
MCB provides very excellent online services which are as follow:
2.12.1.1.1: ATM Services:
MCB ATM Smart Card is accepted at over 4,500 ATMs nationwide. MCB ATM Smart Card enables you to access fast cash, inquire account balance, transfer funds and pay utility and mobile bills/mobile top-ups from any of over 550 MCB ATMs in the country.
With an ever growing number of ATMs operating across the nation, the MCB ATM Network is the largest and most advanced of its kind in the country, and is part of MCB's continuing efforts to provide you with convenience that suits your requirements most. And now the MCB ATM has gone global. MCB's affiliation with Master Card International brings about added facilities for the MCB traveler abroad with the Cirrus and Maestro networks.
o MCB ATM Regular Card: MCB ATM Classic Card allows withdrawal of up to Rs.15,000 per day and a maximum of 3 withdrawals per day per card.
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o MCB ATM Regular Card: The MCB ATM Gold Card allows withdrawal up to Rs. 25,000 per day and a maximum of 6 withdrawals per day per card. The cardholder has to make at least two transactions to withdraw the full amount of Rs. 25,000.
ATM Usage within Pakistan:
MCB Bank has the largest ATM Network in the country with over 400 ATMs and over 700 online branches. The MCB ATM Card can be used in over 70 cities in Pakistan. Whether you want to withdraw cash or ask for a mini-account statement, or even use it as a debit card at Maestro POS terminals, the MCB ATM Card gives you instant access to your bank account, anytime, anywhere.
o Additional Convenience: MCB's revolutionary M-Net Switch enables you to access your MCB Account from any member bank's ATM Machine. Mobile Banking helps you use your GSM Phone to access miniaccount statements and balance information from anywhere. Funds Transfer Facility enables you to transfer funds from one registered.
ATM Usage outside Pakistan:
Your MCB ATM Card can be used to access your MCB account from anywhere around the globe. MCB ATM is accepted at 634,700 locations where there are Master Card or Cirrus ATMs allowing you a daily withdrawal limit of US$ 200 (or equivalent in other currencies) on availability of funds in your account plus the convenience of shopping through over 5 million Maestro POS (Point of Sales) terminals globally.
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ATMs Additional Information:
o Pin Change: PIN change option is now given so that customers can have added security with their card. For added security, it is advisable to customers to change their PIN as soon as they receive the card. It is also advisable to keep on changing PIN on a regular basis. If customers feel that their PIN has been disclosed to others, be sure to change the number as soon as possible.
o Pin Forgotten: Customers are advised to memorize their PIN and are asked to never write their PIN down on anything in their wallet, or on the card itself. In case if customers forget their PIN, a new card will have to be made, which can be done by returning the old card to the MCB online branch and submitting an application for a new card. The new card can be received by MCB users within 72 hours to 5 days.
o Damaged Card: If card breaks in two or gets distorted, please return the card to MCB Online branch. Customers can receive new MCB ATM card from MCB Online branch within a few days.
o Card Loss: In case of card loss, customers are advised to visit MCB Online branch or call 24-hour MCB Call Centre number at (021) 111-000-622. Customers can receive MCB ATM card from MCB Online branch within a few days. If card is not returned from the ATM, contact the branch where the card is lost.
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Customers will have to complete a form and will then receive their card from MCB Online branch. o Incorrect Payment: If by any chance the ATM does not dispense the correct amount of money or does not dispense the money at all, customers can contact the branch where the ATM was used or their home branch and inform them immediately. They will have to complete a form and the amount will then be credited to their bank account.
o ATM Receipts: Customers are advised to keep their ATM receipts after every transaction. It is a good way to guard against fraud and make record-keeping easier.
2.12.1.1.2: MCB Mobile:
At the forefront of technological excellence, MCB has proudly introduced MCB MOBILE. MCB Mobile is a quick, easy and secure way to top up mobile phone balances, transfer money, pay bills and do so much more. MCBs globally recognized and award nominated mobile payments service allows existing account holders at MCB to conduct both non financial and financial transactions such as:
o Check account balances o View Mini Statements (last 6 transactions) o Transfer funds to any MCB account o Pay Utility Bill o Pay MCB Visa Credit Card Bills o Recharge MCB Visa Prepaid cards o Pay mobile post paid bills o Top up prepaid mobile phones
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o Make donations to charities o Block their ATM Card for the day
Who is Eligible?
o MCB Account Holders All you need is an active MCB ATM card. Please visit your nearest MCB ATM and register to enjoy the service. If you do not have an ATM card, please visit your branch or call us at 111-000-622 to request for one.
Charges:
o Charges: An annual fee of Rs. 300 + FED is applicable for MCB Mobile customers. All customers get a Three (3) Month Free trial period from date of activation. does not charge a transaction fee. All transactions (financial & non financial) are FREE of cost.
o Transaction Limits: Overall Daily financial transaction Limit of Rs. 100,000. Prepaid Mobile Top-up limit of Rs. 10,000 per day. Number of financial transactions limited to 10 per day. Credit Card Bill Payment is as per your actual outstanding balance. It does not fall under the Overall Daily limit.
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2.12.1.1.3: MCB Call Center:
The state of the art MCB call center is the right choice to keep you in step with your ever hectic schedule by providing you services relating to your account and Smart card at any point in time.
MCBs well-abreast and friendly call center team is available 24 x 7, 365 days a year to ensure that your daily financial obligations are taken care of guaranteeing you a good nights sleep.
Services Offered at Call Center:
o General Inquires: ATM locations Account opening procedures MCB Bank charges All MCB Product related information CB merchant locations
o Financial Services: Account Balance inquiry Funds transfer request Debit card Transactions details
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Last five transactions details All credit card related requests 24 Hour ATM card blocking Bill Payments (PTCL, SSGC, SNGPL, KESC, HESCO, IESCO, Mobilink, UFONE, Zong, TELENOR) Purchase Vouchers
(Mobilink, Ufone, Zong, Warid Telenor).
o Non Financial Services: Credit Card Address Change request Virtual Banking activation 24 Hour complaint registration Mobile Banking activation
2.12.1.1.4: Bills Payment:
MCB easy bill pay offers unmatched convenience to pay your utility and mobile phone bills or re-charge your prepaid mobile phone accounts anywhere, anytime with security and peace of mind.
MCB is the only bank that offers you 3 convenient options of making bill payments to PTCL, SSGC, SNGPL, KESC, Mobilink, IESCO, HESCO, and Ufone. So, save your precious time by avoiding long queues and pay your bills through MCB Easy Bill Pay.
MCB Smart Card or MCB ATM Card Holder can easily pay their bills or re-charge their prepaid mobile phone account through the following convenient options of MCB easy bill pay. o Features: Pay your bills 24 hours a day 7 days a week. Make either full or partial payments. Full payment is required for PTCL only.
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Recharge your pre-paid account for Ufone, Mobilink and Zong as per their fixed slabs. Pay as a registered or non-registered user. Registration will help you avoid the time delay in entering details each time you carry out a transaction.
2.12.1.1.4: Virtual Banking:
MCB Virtual Internet Banking offers you the convenience to manage and control your banking and finances; when you want and where you want. MCBs Virtual Internet Banking facility is:
o Simple o Secure o Free of cost.
MCB Virtual Internet Banking allows you to access banking services, 24 hours a day, 7 days a week and throughout the year.
o Offers: Detailed Account Summary of all listed accounts. Mini-statements of each of the listed accounts showing recent transaction history for those 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 as to third-party accounts maintaining accounts with MCB. Scheduling of One-Time as well as Recurring Funds Transfers. Payment of utility bills for registered Utility Companies. setup as beneficiaries,
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Immediate or Scheduled Bill Payments. 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, with MCB. Cheque Book Request for any of your listed accounts. Payment/Transfer Alerts for reminding, in advance, prior to the processing of specified payments and transfers. Personal Alerts for reminding of pre-specified events and occasions. Mobile Recharge facility for all Telcos! who maintain accounts
2.12.1.2: Accounts:
MCB offers various types of accounts which are as follow:
2.12.1.2.1: Basic Account:
Its as simple as ABC to start banking with MCB. Looks after your money the simple way, with MCB Basic Banking Account.
o Key Points: Open a Basic Banking Account with as little as Rs.1000/- only. No minimum balance maintenance requirement. No monthly account maintenance charges. Two free deposits per month (including cash and clearing). Two free withdrawals per month (including cash and clearing). Unlimited free withdrawal transactions through MCB's ATMs.
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Unlimited transactions through Virtual Banking. Use your MCB Smartcard to shop at thousands of merchant outlets across Pakistan.
2.12.1.2.2: Current Account:
Discover the quick, easy, and convenient way to manage and use your money with an MCB Current Account.
o Key Points: Low minimum balance requirements. Unlimited cash deposit and withdrawal facility at hundreds of branches nationwide. Use your MCB Smartcard to shop at thousands of merchants across Pakistan. Lockers and other affordable transactional facilities.
2.12.1.2.3: Savings Account:
MCB Savings Account offers you one of the most suitable ways to manage your hardearned money. So start saving and earning profit today. o Key Points: Low monthly average balance requirements. Profit paid into your account every six months. Unlimited cash deposit and withdrawal facility at hundreds of branches nationwide. Use your MCB Smartcard to shop at thousands of merchants across Pakistan.
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Locker facility at economical rates.
2.12.1.2.4: Foreign Currency:
MCB Foreign Currency Account offers you the option of earning attractive returns on your Foreign Currency Investment.
o Key Points: Open your account in US Dollar, UK Pound Sterling, or Euro. Open for as little as US$ 500 or equivalent. Unlimited transactions at your branch. Free Foreign Currency cash deposit and withdrawal facility. Rate of Return directly linked with international market. Profit paid into your account every six months. Foreign Remittances facility available. Countrywide network of Foreign Currency Branches. Cash withdrawal in PKR equivalent.
2.12.1.2.5: Smart Dollar Account:
MCB Smart Dollar Account is a sensible way to maintain or grow your US Dollar deposit across USD Current, Savings or Term Deposits.
o Key Points: USD Current, Savings and Term Deposit accounts. Competitive profit rates.
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Attractive incentives being offered, if you maintain the minimum amount of USD 10,000/- or above.
2.11.1.2.6: Saving 365 Gold:
MCB Savings 365 Gold Account offers you a wide range of attractive profit rates. The higher you save, the higher you go.
o Key Points: The higher your balance, the higher your rate. Profit calculated on daily basis. Profit paid into your account every month. Open your account with Rs. 500,000/- only. Cash deposit and withdrawal facility at hundreds of branches nationwide.
2.12.1.2.7: Special Rupee Term:
With a wide range of choices and tenors, you can open one or more term deposit accounts that best suit your current or long term needs.
o Key Points: Highly attractive profit rates. Multiple tenors from one month onwards. Option of premature encashment. Option for ATM debit card to access profit earned. Option for automatic renewal of term deposits.
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2.12.1.2.8: Business Account:
MCB Business Account lets you build your business through the accrued savings from discounted transaction fees, and more.
o Key Points: Higher the balance, the higher the number of free transactions.* Open a Business Account with Rs.50,000 only. Unlimited free cash deposit and withdrawal facility at hundreds of branches nationwide. Option for automatic
2.12.1.2.9: Saving XTRA Account:
MCB Business Account lets you build your business through the accrued savings from discounted transaction fees, and more. o Key Points: Higher the balance, the higher the number of free transactions. Open a Business Account with Rs.50,000 only. Unlimited free cash deposit and withdrawal facility at hundreds of branches nationwide.
o Free Services: Demand Drafts/Pay Orders. Cancellation for Demand Drafts/Pay Orders. Cheque Book. International ATM Gold Card.
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2.12.1.2.10: Current Life Account:
MCB Current Life gives you the peace of mind of comprehensive life insurance in a current account and fits right into your lifestyle.
o Key Points: Open a Current Life Account with just Rs.1,000. Free comprehensive life insurance coverage. No joining fees on Debit/ATM Card. 50% discount of Debit Card Annual Fee at the time of renewal. Low monthly average balance requirement. Unlimited free cash deposits/withdrawals across hundreds of branches
2.12.1.3: Loans:
MCB offers personal loan for car purchasing.
2.12.1.3.1: CAR4u:
Life in the fast lane can be really slow without a car. MCB Car 4 U makes it a breeze to finance/lease your new/used car. So get up to speed, because Kahin Na Kahin Tau Hai1 Car 4 You".
o Flexible: Option for financing or leasing Financing tenures from 1 to 7 years Option for new as well as used cars
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Options for local as well as imported cars Financing up to Rs. 25 lacs Option for early payment Option for replacement loan
o Affordable: Lower mark up rates Lower insurance rates Minimum 20% down payments
o Speed: Fast and hassle free processing of application Priority delivery on different vehicles
o Special Benefits: No processing fee if the case is declined Pay your down payment after your loan is approved
o Availability: Currently available in the following cities: Karachi, Lahore, Faisalabad, Rawalpindi, Islamabad, Sialkot, Gujranwala, Hyderabad.
2.12.1.3.2: MCB Pyara Ghar:
MCB offers three home financing options for Pyara Ghar. MCB Pyara Ghar provides flexible and competitive home financing facility with options of home purchase,
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construction and renovation. With the MCB Pyara Ghar Scheme customers can obtain the financing to purchase a house/apartment, construct own house or renovate existing house immediately. Nothing could be more convenient than owning a house and paying easy installments that takes a step closer to becoming the owner of their house. It is better than paying a monthly house rent which takes no where other than increasing your expenses. Pyara Ghar is definitely the most feasible and direct route to a dream house.
MCB gives its customers their dream home at the best possible mark-up rates. They can choose either one of their two mark-up rate options- fixed or variable. They also have an option to club spouses income to avail higher financing amount.
Early repayment option is tailor-made to allow making partial prepayments at dates that suit Pyara Ghar Clients.
o Benefits: Option to Purchase, Renovate or Construct. Competitive financing rates. Financing tenure from 2-20 years. Financing up to Rs. 20 Million. BTF-hassle free process to transfer your facility from another institution. Pre-approved for Auto Finance. Service at your doorstep.
o Eligibility: Applicant(s) must be Pakistani National. Salaried, Self employed businessmen (SEB) and Self employed professionals (SEP) are eligible for application. Satisfactory verifications.
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Satisfactory bureau checks. Satisfactory income estimation, property valuation and legal opinion.
o Processing: Customers are advised to carefully read and fill out the MCB Pyara Ghar application and the Letter of Understanding (LOU), which will be provided at their doorstep by MCB sales staff. Submit it along with the related documents. On the approval of application, customers will get a Sanction letter.
In case of Home Purchase the property will be transferred through relevant Housing Authority / Registrar office / Society in your presence along with Banks authorized officer, lawyer and seller of the property. Whereas for others, MCB will disburse the sanctioned amount in your presence and banks authorized officer.
2.12.1.4: Cards:
MCB offers Smartcard, MCB VISA Platinum Card and MCB VISA Card.
2.12.1.4.1: 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.
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o Features: Purchasing Bill Payment Funds Transfer 24 Hours Cash Withdrawals Balance Inquiry Mini Statement MCB Mobile Banking
2.12.1.4.2: MCB Visa Platinum Credit Card:
MCB Visa Platinum Credit Card - a world full of surprises waiting to be explored. With our perfect combination of premier features and superior service, the enclosed rewards and recognition offer you the prestige and luxury of a lifestyle you can uniquely call your own. MCB Visa Platinum Credit Card is the most reliable, competitive and gratifying Credit Card offering a tantalizing mix of luxurious shopping, dining and traveling opportunities which will undoubtedly be a treat for you and your family.
It is accepted at nearly 29 million locations in more than 150 countries around the globe and over 30,000 establishments in Pakistan. So make the most of a powerful card and expect what you deserve, a liberating experience that redefines the way you spend. Enjoy the influence of your card as you become platinum.
o Features: Access to over 600 airport VIP lounges in over 100 countries and over 300 cities so you can treat yourself like a VIP no matter where you travel, or which airline and class you fly.
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Peace and quiet relax and unwind away from the chaos of the airport, and enjoy a range of complimentary refreshments. Full business facilities most lounges offer phone, fax, email and internet facilities, some even have conference rooms. Excellent value for money three membership plans designed to offer you VIP airport lounge access at competitive rates no matter how frequently you travel.
2.12.1.4.3: MCB Visa Card:
MCB Visa is not just another card in your wallet. It not only provides the conventional credit card services in a manner that is superior in comparison, but goes an extra mile.
o Features: Makes MCB Visa the most affordable credit card in your wallet. MCB VISA offers you a wide range of products that will cater to your diversified taste perfectly. Buy now and pay later in easy and affordable monthly installments! Saving you from the hassle of making multiple payments on your various credit cards. You need cash and want to pay back in installments. Just dial 111000-MCB (622). Life is too precious to be spoilt by unforeseen events and mishaps. Hard Cash Now experience peace of mind of having a credit card free from fraud or misuse! CB Cards SMS Facility.
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2.12.1.5: Traveler's Cheque:
MCB offers Rupee Traveler's Cheque.
2.12.1.5.1: Rupee Traveler's Cheque:
MCB Bank has been at the forefront of providing its customers with new and innovative products and financial instruments that are safe, secure and profitable.
MCB Rupee Traveler's Cheques 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.
o Features: Easily available: Buy them from any of the designated branches in Pakistan. As good as cash: MCB RTCs are safe to carry and can be used without any inconvenience specially by Travelers. Easily encased: At any designated MCB branch. Easily refunded: in case of loss or theft, you can get the full amount back. Exclusive security features: Due to special printing and safety precautions, Cheques cannot be duplicated. Denominations: Available in denominations of Rs 1000, Rs 5000, Rs 10,000. Validity: 10 years from the date of purchase. Customer Service Facility: (021) 111-000-123. More than 900 MCB Authorized branches are selling and purchasing Cheques all over Pakistan.
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2.12.1.6: Remittance:
MCB also provides remittance facility in Pakistan.
2.12.1.6.1: Home Remittance:
o MCB brings FAST and FREE Home Remittance service to beneficiaries in Pakistan. With our large network of over 1100 branches, MCB can deliver your remittances to every part of Pakistan.
o MCB Pak Cash enables you, the Non Resident Pakistanis, to send money to your loved ones in Pakistan quickly, easily and conveniently. MCB Home Remittance Service is FREE and available at all MCB correspondents (Banks/ Money Transfer Cos) Worldwide. For details please see our list available at Remitter Locator.
o MCB Remittance Service offers you two ways of sending money to your loved ones: MCB Fast Transfer (Account to Account Transfer): Same day credit to MCB Account holders Fast, prompt and hassle free funds transfer Free of charge SMS alert for beneficiary (subject to provision of mobile number) For Non MCB Account holders, funds are transferred online or via bank draft to any other bank
MCB Pak Cash: Receiver's account in MCB is not required
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Instant cash payment of up to Rs. 500,000/- over the counter can be made to the beneficiary at any MCB branch
Fast, dependable and hassle-free funds transfer SMS alert for beneficiary (subject to provision of mobile number)
2.12.1.6.2: Money Gram:
Money Gram is a global leader in worldwide money transfer services, working closely with specially chosen agents in 176,000 locations across 190 countries and territories, offering a customer-to-customer money transfer service which is fast, convenient and trusted. They provide a secure way to send and receive money to and from your loved ones worldwide and make sure that your money gets to where its needed quickly.
o Features: Any one can receive money through 100 designated MCB branches displaying the Money Gram logo across Pakistan. Receive Money in as little as 10-15 Minutes. No Bank Account needed. Fast, Secure and Easy. Compliant with State Bank of Pakistan regulations.
2.12.1.6.3: MCB Motherland Account:
o Features: Overseas Pakistanis can open PKR accounts whilst abroad. Free first cheque book + ATM card. Free PO/DD and Online Transfers.
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Account access via Internet Banking, Mobile Banking and Call Centre.
2.12.1.7: Bancassurance:
The Bank Insurance Model ('BIM'), also sometimes known as 'Bancassurance', is the term used to describe the partnership or relationship between a bank and an insurance company whereby the insurance company uses the bank sales channel in order to sell insurance products. MCB also provide bancassurance services.
2.12.1.7.1: FlexiLife:
Your family is your joy, your pride and your world. And you strive to give them a life full of cheerful and happy moments. However, life has its uncertainties and risks. For this, you would require an investment plan that is flexible enough to keep up with the changing circumstances of life. Flexilife is a unit-linked plan to help you secure your familys future with a wide range of benefits and options to meet a variety of different financial needs and make your Har Pal Mehfooz.
o Benefits: Family Income Benefit Critical Illness Benefit Permanent Total Disability Partial Withdrawal Complete Surrender Protection Benefit Flexibility of Choice Inflation Protection Additional Top-Ups (Ad-hoc Feature)
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o Free Look Period: The plan offers you a free-look period of 14 days, in which you can cancel your policy by contacting NJI Life, and have your premium refunded. However, as per law, NJI Life reserves the right to deduct the expenses incurred on medical examination(s) of the Life Assured in connection with the issuance of this Policy.
2.12.1.7.2: Life Partner:
Some things in life are too important to be left unplanned. Whether it is your life companion or your business partner, you have responsibilities to ensure the financial security of your dependants and business. Life Partner is a plan that will help you provide financial protection for both partners under a single plan. We can help you keep your loved ones or your business financially secure, given you may not always be there to help. Let us be there to make your Har Pal Mehfooz.
o Benefits: Accidental Death Accidental Death or Dismemberment Waiver of Premium Hospitalization Cash Reimbursement Partial Withdrawal Complete Surrender Protection Benefit Flexibility of Choice Inflation Protection Additional Top-Ups (Ad-hoc Feature) Free-Look Period
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2.12.1.7.3: EDU CARE:
You may not imagine a future for your children without college, but before you prepare them for that, you may have to prepare yourself - financially. Your childs college education could be one of the largest expenditures you ever make. EduCare is a long term saving plan which provides disciplined approach to save for your child's higher education. It will help you to accumulate a lump sum fund over a period, which can be used to pay for your child's higher education, making your Har Pal Mehfooz.
o Benefits: Education Continuation Benefit Choices of Life Benefit Education Support Benefit Accidental Death and Disability Benefit Fund Acceleration Premium Inflation Protection Partial Withdrawal Complete Surrender Plan Maturity Benefit Income Benefit Waiver of Premium Additional Term Assurance Free-Look Period
2.12.1.7.4: Dream Wedding:
Nowadays, a DreamWedding for your children requires a substantial investment. MCB DreamWedding helps you accumulate a lump sum fund over a period for your childrens marriage expenses, in a disciplined manner. The plan provides high-value savings,
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guaranteed level of life assurance protection and flexible options to customize the benefits according to your needs making your Har Pal Mehfooz.
o Benefits: Marriage Continuation Benefit Choice of life Benefit Engagement Support Benefit Accidental Death and Disability Benefit Fund Acceleration Premium (Ad-hoc Feature) Inflation Protection Access to Your Savings Partial Withdrawal Complete Surrender Plan Maturity Benefit Income Benefit Waiver of Premium Additional Term Assurance Free-Look Period
2.12.1.7.5: Capital Sure:
A risk-free savings plan, if you prefer to play it safe with your investments, for a secure future. With this plan your premiums are guaranteed, as a lump sum amount, to be paid at the end of your policy term. It is designed to give you complete security and peace of mind making your Har Pal Mehfooz.
o Benefits: Partial Withdrawal Guaranteed Maturity
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Protection Benefit Complete Surrender Loan Premium Escalation Level Term Insurance Rider (LTR) Accident Care Benefit (ACB) Family Protection Rider (FPR) Free-Look Period
2.12.1.7.6: Retire Easy:
RetireEasy has been designed to give you a respectable and secure retirement life. You can choose to receive a life long monthly income after retirement or a lump sum amount to invest on your own. Continue to support yourself and your family while enjoying the pleasure of a secure retirement, making your Har Pal Mehfooz.
o Benefits: Guaranteed Loyalty Bonus Guaranteed Benefit In case of death Partial Withdrawal Complete Surrender
2.12.1.7.7: Income Max:
Gain maximum returns on your savings, with a great mix of investment choices. You can make limited withdrawals at any time for short or mid-term purchases e.g. buying a house and enjoy flexibility to meet any other unexpected financial requirement. At the end of policy term you receive your accumulated investments as a lump sum amount, so you can make your Har Pal Mehfooz.
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o Benefits: Flexibility of Choice Guaranteed Loyalty Bonus Account Value Acceleration Premiums Guaranteed Death Benefit Partial Withdrawal Complete Surrender Maturity Benefit Premium Escalation Additional Benefits: Level Term Insurance Rider (LTR) Family Protection Rider (FPR) Accident Care Benefit (ACB) Free-Look Period
2.12.1.7.8: Future Assure:
FutureAssure is a risk-free savings plan that gives you capital protection and control over returns with flexibility and a peace of mind that your family will be secure in case of any unfortunate events. The policy will cover risks for your loved ones, secure savings for your childrens higher education or marriage expenses and ensure a healthy future. With FutureAssure, be secured and Har Pal Mehfooz.
o Benefits: Guaranteed Maturity Protection benefit Partial Withdrawal Complete Surrender Loan
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Inflation protection Continuation Bonus Level Term Insurance Rider (LTR) Family Protection Rider (FPR) Accidental Death and Accidental Disability Benefit (AD&ADB) Monthly Income Benefit Free-Look Period
2.12.1.7.9: Protection Plan:
MCB Bancassurance brings you broad access to finding financial solutions even if you dont have formal banking relationships. All you need is your mobile phone and you can get yourself a complete comprehensive protection plan and insurance coverage with just a few easy steps. You dont even have to get any medical endorsements to get this protection plan. Register to MCB Mobile Banking and get yourself instantly insured in a quick and easy way at a very nominal cost with the MCB Protection Plan and get your Har Pal Mehfooz.
o Benefits: Natural Death Benefit Payment of lump sum amount (Sum Assured) to your family in the event of death within the policy term. Accidental Death Benefit If the insured person dies due to accident, a sum, double the Natural death benefit will be paid to the beneficiary. Customer has the option to take 50% of the accidental death benefit as lump sum immediately upon Accidental death and remaining 50% can be taken in the form of 120 equal
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monthly installments of 1 % of the Accidental death Sum Assured. Accidental Disability Benefit The Natural death benefit will be paid even if the customer becomes permanently disabled due to accidental causes. Customer has the option to take Accidental Disability Benefit as in the form of 120 equal monthly installments of 1% of the basic death benefit.
2.12.2: Corporate Banking:
2.12.2.1: Loans
MCB provides business loan as term loans and working capital loans.
2.11.2.1.1: Term Loans:
You as an individual can gain and benefit the most through MCB Consumer Banking. In MCB you get friendly, efficient and attentive personalized banking services - a unique banking relationship experienced by each MCB client.
2.12.2.2.2: Working Capital Loans:
Based on the customer's 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.
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2.12.2.2: Financing
MCB also offers its services as trade financer.
2.12.2.2.1: Trade Financing
MCB offers trade finance services that comprise of an entire range of import and export activities including issuing Letters of Credit (L/Cs), purchasing export documents, providing guarantees and other support services. o Trade Products: Import Services
Below is a list of few services MCB provides to help any business having importing needs: Import Documentary Credits (LCs) both Inland and Foreign o Sight o Usance o Mix Payment Back to back Documentary Credits (LCs) Standby Documentary Credits (LCs) Documentary Collections Shipping Guarantees Import Contract Registration Open Account Transactions
Export Services
MCB can help your export business through any one or combination of following products being offered through wide network of our branches and Trade Services Centers (TSCs). Documentary Credit (LC) Advising
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Documentary Bills Drawn Against LCs Standby Documentary Credits (LCs) Documentary Collections Documentary Credit (LC) Confirmation Trade & Credit Information
Trade Financing
The range of financing options for the trade business is as follows: Bill Purchase /Negotiation Foreign Currency Bill Discounting Foreign Currency Export Finance Finance Against Packing Credit Finance Against Foreign Bills SBP Export Refinance (Part-1 and Part-11) Finance Against Imported Merchandise Finance Against Trust Receipt Foreign Currency Import Finance
2.12.2.3: Investment Banking
Our Investment Banking arm has played a dynamic role in the local market space in Pakistan through innovative structured solutions for its customers and is regarded as one of the leading investment banking house in the country. Our IB team has strong origination and distribution capabilities and a successful track record for efficient execution. In 2007, a USD 53 million listed bond issue led by MCB was awarded The Banker's Deal of the Year for Pakistan, by Financial Times, UK. During the last three years, we have led or participated in deals over USD 5bn, of which 65% are in the energy sector, 14% in fertilizer and chemicals, 11% in telecom and 10% in other industries.
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Our goal is to provide best financial solutions to our client helping them achieving their objectives and support economic growth of the Country.
o Products: Project & Structured Finance
Involves financing complex projects, usually in an SPV structure, where the loan is tightly structured around the cash flows, risks are allocated amongst various stakeholders, and there is limited or no recourse to the sponsors.
Syndicated Loans & Debts Capital Market
Involves structuring/advisory arrangement, underwriting and placement services for significant financing requirements by large and medium sized corporate and institutional clients. Our wide array of activities also includes financial restructuring of corporate, issuance of commercial paper, placement of syndicated loans and bonds.
Hybrid Instruments
Structuring and placement of a category of debt that has some characteristics of equity such as being unsecured or subordinated or with a potential equity upside.
Equity Capital Raising
Services include due diligence and valuation, private placements, underwriting and management of public offers.
Advisory Services
Varied services such as financial advisory, commercial structuring support and M&A advisory.
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Facility Administration
Management of creditor interests in syndicated transactions in capacities such as facility agent, security trustee, project monitoring bank, bookrunner etc.
Commercial Banking
Complementary products and services such as revolving lines of credit, trade services and cash management that may be bundled with our Investment Banking Products.
2.12.3: Islamic Banking:
Islamic Banking Division was formed with effect from 1st January 2003, which in a short span of time, has developed sufficient expertise, necessary infrastructure, information technology, and manpower to run Islamic Banking Operations and offer Islamic Banking Products.
2.12.3.1: Mission Statement:
To play a dynamic role in promotion of Islamic Banking and win customers trust by providing sharia compliant financial services.
2.12.3.2: Vision Statement:
To become a leader among Islamic Banks of the country in the coming years capturing major share of the domestic Islamic financial market.
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2.12.3.3: Deposit Schemes
If you are looking for a deposit opportunity where you can purse your funds and reap HALAL returns, we offer following products:
o Al Makhraj Saving Account: The minimum deposit requirement for Al-Makhraj Saving Account is only Rs. 5,000 and profits can be earned semi annually.
o IANAT Account: If you are looking for a chequing account that gives you the ease of doing unrestricted number of transactions, we offer Al-Makhraj Ianat Account. Ianat Account may be opened with a minimum of only Rs. 10,000. With all the features and facilities that this product offers, it is highly recommended for management of business funds.
o Al Makhraj Term Deposit: If you are looking for a chequing account that gives you the ease of doing unrestricted.
2.12.3.4: Funds Based Facilities:
MCB offers 3 broad Islamic fund based facilities:
o Ijarah: 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
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(customer) after the Ijarah has matured. Under this scheme, MCB will be the owner of the asset, and you (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 you (lessee) at the maturity of the Ijarah agreement at a price that may be equal to the security deposit amount, hence the term Wa Iqtina. MCB currently offers 2 types Ijarah Products: Car Ijarah Equipment Ijarah
o Murabahah: It is a contract between a buyer and a seller under which the later first purchases the goods at the request of the former i.e., customer and then sells it to same customer after adding profit.
o Diminishing Musharika Equipment: It is a contract through which the bank and its client participate in the joint ownership of a property. The share of the Bank is further divided into a number of units and it is agreed that the client will purchase the banks share periodically, thus increasing his own share until all the units of the bank are purchased by him so as to make the client the sole owner of the property.
2.12.3.5: Upcoming Products:
o Diminishing Musharika Housing o Guarantee o Istisna cum Murabahah
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o Istisna Post Shipment
2.12.4: Agriculture Division:
MCB also offers agriculture products which are as follow:
2.12.4.1: Shadabi Plan:
Shadabi Plan caters the financing needs for production activities on the farm which mainly include seed, pesticides and fertilizers along with provisions for miscellaneous expenses like payment of electricity & diesel bills of tube wells, maintenance expenses for tractors and the like items as per list of Eligible items.
o Features: Financing requirement is ascertained for a period of three years Limit is sanctioned for three years on revolving basis with one time documentation subject to annual clean up along with markup. Mark up is charged on the limit amount utilized by the farmer There is no prepayment penalty There is no hidden cost involved Forms & documents are provided free of cost.
2.12.4.2: Khushali Scheme:
Under Khushali Scheme loans/finances are allowed for farm/non farm credits which include fixed investments/working capital requirements. Amount of finances sanctioned depend upon the credit requirement and collateral.
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Financing for land leveling/development, heavy equipments, agriculture machinery, vehicles/transport for agri purpose are covered under this scheme. There may be other development projects proposed by the farmers falling with in the ambit of agri financing, which can be considered under this scheme.
o Features: Short, medium and long term financing facilities are extended The repayment is scheduled on the basis of farmers convenience on annual/ biannual basis.
2.12.4.3: Tractor Financing:
To boost up the mechanized farming in the country, Tractor Finance Scheme is introduced to offer specialized services to farmers. Under this scheme, there is no requirement of minimum land holding because of multipurpose use of tractor for agriculture cum commercial. However, the repayment capacity and potential use of tractor will be evaluated at the time of loan processing.
o Features: All types & makes of tractors either locally manufactured or imported can be financed Tractor is financed for a period of five years or earlier as per farmers choice Installment is on biannual basis. Comprehensive insurance is required to be intact during the tenure of finance Tractor will be jointly registered in the name of the borrower and the bank.
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Tractor will remain hypothecated in banks favor till the loan is repaid in full Security/collateral will be required as per bank policy.
2.12.4.4: Aabiari Scheme:
Under the Aabiari scheme, financing facilities for tube well, other wells, irrigation systems of all types including sprinklers are covered. The purpose is to facilitate the farmers in overcoming the shortage of water for cultivation/plantation since water is essential requirement for crops.
o Features: The requirements may differ from farmer to farmer. Evaluation/assessment of finance will be made on case to case basis. The finance will be for a period to be determined on the basis of assessment Repayment of the loan will be on biannual basis or linked with crop cycle Three quotations will be required in case of machinery to be installed.
2.12.4.5: Growers Finance:
Grower Finance is a unique way of financing registered/(bonafide) growers/farmers of sugarcane, cotton and rice(mills). The special characteristic is that the financing facilities are extended to farmers against the Mill/Factory guarantee. Fixed/floating charge may be created on the Mill's assets and the loan is disbursed directly to the growers. This finance is short term in nature but the tenure may extend to eighteen months in case of growers of sugarcane.
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o Features: The grower should have his account opened in MCB Branch The BOD of the Mill should pass a resolution for financing request addressed to MCB The charge over the assets of the company is created KYC requirements are complete Growers crop is hypothecated Repayment of the loan is linked with crop harvesting
2.12.4.6: Dairy & Meat Plan:
The plan is aimed at promoting the Dairy sector & meat production in the country. The farmers are extended financing facilities to purchase dairy animals for milk and for the establishment of animal fattening stations to increase meat production on commercial line, thus enabling the farmer to create more income.
o Features: The amount of loan is assessed on the basis of the purpose for which loan is required The repayment of loan may be scheduled in installments on monthly, quarterly and half yearly basis The cash flows to be routed through MCB account The animals are comprehensively insured till the repayment of the loan The animals financed are hypothecated in banks' favor Nestls identified borrowers are also accommodated under this plan Farmers supplying milk to Milk processing units are covered under this plan.
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2.12.4.7: Muraghbani Scheme:
Muraghbani Scheme covers extensively all requirements of the poultry industry with focus on facilitating the farmers. We offer financing facilities of all types of activities in the value chain starting from establishment of poultry farms infrastructure to all requirements in the process till the final out put including marketing of the same by the farmers. Value addition process by the farmers for poultry processing is also covered under the scheme.
o Features: All farmers engaged in non farm activity of poultry financing are encouraged to avail financing facilities. The loan requirement & tenure of finance depends upon the purpose and life of the project Comprehensive insurance has to be arranged by the borrower where possible The intending borrower should be able to offer adequate security acceptable to the bank along with Hypothecation of stock.
2.12.4.8: Baghbani Scheme:
The scheme aims at facilitating the farmers engaged in horticulture by extending credit facilities covering the entire range of related activities. The proposals are assessed keeping in view the market potential and repayment capacity based on the cash flows of the activity. The farmers are extended all type of credit facilities required to produce fruits & vegetables of better quality. The repayment of the loan is as per farmer convenience or linked to crop cycle and timings of cash flows. Facilities like running finance, working capital requirements, infrastructure development, machinery &
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equipment, irrigation etc are all covered under this scheme. Progressive farmers are especially encouraged.
o Features: The farmer/applicant should be having an account with our branch. The purpose/project should be viable. Should meet all documentation formalities. Should be experienced to handle the project. The loan requirement & tenure of finance depends upon the purpose and life of the project. The intending borrower should be able to offer adequate security acceptable to the bank. Comprehensive insurance has to be arranged by the borrower where possible.
2.12.4.9: Mahigeri Scheme:
Mahigeri Scheme caters to the credit needs of fish farmers covering entire range of activities including marketing of their produce. The loans are of short, medium and long term depending upon the purpose. Financing for value addition process by the fish farmers is also covered under the scheme.
o Features: All farmers/Fishermen engaged in non farm activity related to fisheries are encouraged to avail financing facilities The loan requirement & tenure of finance depends upon the purpose and life of the project The intending borrower should be able to offer adequate security acceptable to the bank
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Comprehensive insurance has to be arranged by the borrower where possible
2.12.5: Other Services:
MCB also some other services to attract the customers:
2.12.5.1: Locker:
Basically it is a facility which is provided by the bank to its customers in order to secure there money gold important property documents etc. before this locker concept people are very much worried about the lose of there money, gold and important documents so now the people are very much relax because now they use this facility quite frequently. 2.12.5.2: Discounting Bill of Exchange:
The bank utilizes their surplus funds in another important way. They discount the bills of exchange at their market worth, i.e., the pay to the holders of the bill an amount equal to their face value after deducting interest at the current market rate for the period the bill has to mature. The bills of exchange are a very liquid asset for a bank to hold. These bills are usually drawn for three months and are used for financing internal as well as external trade.
2.12.5.3: Collection of Bill of Exchange:
The bank provides a very useful service in the collection of dividends or interest earned on stocks and shares held by his customers. The customer is simply to inform the issuer of the securities that the interest on the securities is to be credited to his account in the bank.
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2.12.5.4: Sale Purchase of Securities:
MCB is authorized by the customer, purchase or sale securities on his behalf and thus adds other benefits to his portfolio.
2.12.5.5: Collection of Dividends:
The bank provides a very useful service in the collection of dividends or interest earned on stocks and shares held by his customers. The customer is simply to inform the issuer of the securities that the interest on the securities is to be credited to his account in the bank.
2.12.5.6: Transfer of Funds:
MCB also transfer funds of the customers from one bank to another bank. If the transfer is at one station, they dont charge any commission and even if they charge, they charge on reduce rate.
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DEPARTMENTS
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3.1: Departments at Main Office:
The head office is operationally in charge of central affairs including the delegation of powers and authority to the regional head quarters throughout the country. All the senior management team works in the Head office of MCB bank is situated in Karachi. And its all branches, regional offices, corporate branches and overseas branches and online branches and representative offices work according to rules and regulation set by the head office.
Following are the departments that are working at head office:
Administration Credit Management Investment Banking Human Resource Information Technology Corporate Planning & Budgeting Finance & Treasury International Division Inspection & Audit Law Division Marketing & Development Trustee Division
3.2: Departments at Branch:
There are three main departments in any branch of MCB
General Banking
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Foreign Exchange Advance/Credit
3.2.1: General Banking:
General banking deals with following services:
3.2.1.1: Cash Department:
The following books are maintained in the Cash Department:
o Receiving Cash Book o Paying Cash Book o Token Book o Scroll Book o Cash Balance Book
When cash is received in counter, it is entered in the Scroll Book and Receiving Cashier Book. At the close of the day, these are balanced with each other.
When the cheque or any negotiable instrument is presented at counter for payment, it is entered in the token book and token is issued to the customer. The token clerk and the Cashier make entries in the paying book and payment is made to payee. At the close of day, the Token Book and Paying Cashier Book are balanced.
The consolidated figure of receipt and payment of cash is entered in the cash balance book and drawn closing balance of cash.
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3.2.1.2: Deposit Department:
Bank deals in money and they are merely mobilizing funds within the economy. They borrow from one person and lend to another, the difference between the rate of borrowing lending forms their spread or gross profit. Therefore we can rightly state that deposits are the blood of the bank which causes the body of an institution to get to work. These deposits are liability of the bank so from point of view of bank we can refer to them as liabilities.
The total deposits of MCB are growing since its inauguration but after privatization there is a sharp incline in over all deposits of the bank. The increase in deposits is also a cause of increase on total number of accounts; bank has progressed in both aspects.
o Functions of Deposit Department:
Account Opening:
Account opening is an agreement in which customer offers his funds and bank accepts these funds, therefore the nature of relation between a banker and customer is of a contractual one and all the conditions applicable to this contract act are also applicable.
Profit Payment & Calculation:
Profit payment & calculation is done in accordance with the rules of each type of deposit scheme-by the deposit department. The products for each deposit scheme are calculated separately and added till the end of 6 month period. Then the sum total of these products is multiplied with the respective profit rates which are issued by the Head Office at the end of each half yearly closing. The profit provisions for each type of deposits
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INTERNSHIP REPORT
are also calculated on monthly basis by the same department in order to calculate the net profit or loss position of the branch.
Accounting Entries:
Accounting entries are also made in the respective books of account by this department. However, in small and medium size branches, the accountant performs the book keeping duties for all kinds of ledgers.
3.2.1.3: Remittance Department:
It is transfer of funds. Funds can be transferred in shape of pay orders, demand draft, mail telegram and telegraph transfer. Payments of fees of different organizations, fulfillment of tenders, and collection of funds are the main functions of remittance. Maximum part of general banking depends on this department.
Issuance of different kinds of remittance:
o Pay Order: Pay order is the property of person/company that has to take the benefit of the amount being pay ordered by the concerned person. Pay orders are made for the payment of fees, tender or issued for the payments of dealings. These are required for the proof of payments made between the bank and the customer in the favor of beneficiary. These are noted in printed block letters and yearly serial numbers are issued from computerized system.
o Demand Draft: Demand drafts are made for the beneficiary for payments, funds etc, these are made for outstation branches of the concerned banks. An advice is also made for the confirmation of the draft send. These are also approved and safe way of sending amount to the beneficiary.
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These are also noted by computerized system and a serial number is issued from the computer system.
o Mail Transfer: Mail Transfer is made with in the city for transfer of amount. An advice is also made for the confirmation of the draft send. These are also approved and safe way of sending amount to the beneficiary. These are also noted by computerized system and a serial number is issued from the computer system.
o Telegraphic Transfer: Telegraph Transfer is telegram message for transferring the amount from one branch to other branch. A message advice and a confirmation advice both are made with TT numbers that are issued for TEST. TEST depends on two steps: First TEST is on Day, Date and Code Number of branch. Second TEST is on Currency, whether Pak rupees or foreign currency, amount and TT number issued from manual registers and confirmed from computerized system.
o Payment of Pay Order & Demand Draft: Pay-Order and Demand Draft both could be paid in shape of physical payment of cash and in case transfer of amounts; the amount could be transferred in the beneficiary account. In case of physical payment authorized signature of beneficiary are taken for the proof of amount being paid to him and in case of transferring of amount authorized signature of the beneficiary are checked and verified for reducing risks.
o Cancellation of Pay Order & Demand Draft: Any type of pay order/demand is cancelled by the permission and instructions made by the beneficiary. The customer could only cancel the pay order/demand draft as the verified signatures of beneficiary are present on the advice.
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3.2.1.4: Clearing Department:
Every banker acts both as a paying as well as a collecting banker, It is however an important function of crossed cheques. A large part of this work is carried out through the bankers clearing house.
A clearing house is a place where representative of all banks of the city get together and settle the receipts and payment of cheques drawn on each other. As the collecting banker runs certain risks in receipt of their ownership the law has provided certain protections to the banks.
The Negotiable Instrument Act, 1881, lays down hat drawer or holder of a cheque or draft may cross the instrument generally or specially. It further lies down that a crossed cheque can only be paid to a banker, who collects it for a customer in good faith and without negligence.
3.2.2: Foreign Exchange Department:
Foreign Exchange deals with following services:
3.2.2.1: LCs Establishment:
Any company can provide its documents containing e-form, bill of lading, short shipment notice in case of short shipment, packaging list etc. the information provided from the documents is recorded in the LC establishment portion or section in the computer.
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3.2.2.2: Payment or Retirement:
When the transactions have been completed then approved documents from the concerned bank are sent to the home bank for the payment or retirement of the LC. These transactions have recorded in the payment or retirement section of the computer.
3.2.2.3: Foreign Currency Deposits:
The Foreign Currency Deposit relates with the foreign currency accounts, cash deposit or credit and foreign remittances.
3.2.3: Credit Department:
This department deals with the approval of different kinds of loans to different business entities. The loans, which are being approved by the department, are kept with some securities such as bonds, properties and any other type of asset, which is equally valuable or more than this as a guarantee. Every branch has its own limit, if the amount of loans is with in the limit of the branch then it is being approved by the branch but if the amount of loan is exceeding the limit then it has to make it approved by the head office. In this case the branch stored all the required papers and sent them to the head office for necessary action. If the head office approved the loan then mostly the period contains a year. And if the party requires more loan than after a year the loan has been re-approved required that they should have the limit. In case if the head office do not approve the loans then the return letter came back with the reasons of not approval of loan and if the reasons have been made approved by the concerned party then it could be sent again for approval. This whole process is recorded in the back remain with the bank until the party has not refunded all the amount of loan and bank has the authority to liquidate those assets for preventing it from loss.
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AREA OF INTERNSHIP
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INTERNSHIP REPORT
4.1: Work Done by Me:

Week wise work done by me is as follow:
4.1.1: First Week:
In joining week of my internship at MCB Bank Limited, Bank Square Gujranwala, I worked first 2 days under branch manager
He told me about high value transaction and how to comment on it. Explanation of high value transaction is as follow:
o High Value Transactions: All those transactions which are of 1 million or above 1 million are considered as high value transactions. According to the instructions of SBP, the record of daily high value transactions is kept separately and then bundled by months and years.
The branch manager has to comment on these transactions. The comment consists on following 3 parts:
Business of the customer Nature of the transaction Know your customer (KYC)
For example if there is a transaction that Bilal Velvet (a trader in Daal Bazaar) has deposited or withdrawn cash of 1 million the comment will be:
Trader of Velvet
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Sale/Purchase of Velvet Within Parameter
Similarly, if there is a transaction that Madina Traders (a sugar trader in Daal Bazaar) has deposited or withdrawn cash of 2 millions the comment will be:
Trader of Sugar Sale/Purchase of Sugar Within Parameter
Branch manager uses within parameter rather than writing KYC because he takes the responsibility to the extent of the dealing of the customer with bank.
He gave me the undone work of previous 6 months which I completed in 3 weeks.
In remaining days of the week I sat with the clearing person Mr. Afzal. He told me some basics about clearing procedure which is as follow:
o Clearing at MCB: MCB collects the cheques of its customers on behalf of them. If you have an account in MCB and your customer has given you cheque of another bank then you can give this cheque to MCB and MCB will collect it for you.
MCB divided cheques into three categories:
Intra City/Local Cheques Inter City Cheques Same Day Cheques
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Local cheques are those which are within city or with region. These cheques take usually 2 days in clearing process.
Inter city cheques are those which are of other cities or other regions. These cheques are sent to their particular cities.
Same day cheques are those which are of within city but these cheques are stamped as same day and these are passed on same day on which they are presented.
Some banks like Standard Chartered Bank, NIB Bank, Habib Metropolitan Bank passed inter city locally. Charges for inter city cheques are 250 rupees and local cheques are free. Cheque return charges are 300.
All cheques are sent via NIFT (National Institutional Facilitation Technologies). It performs the role of middle man between banks and state bank. It collects all the cheques from the banks and then sorts them and makes a list of it and forwards it t SB. After these cheques have been processed in SB, NIFTs agent takes it their head office and from where these cheques are sent to particular destination.
Every Morning Mr. Afzal posts the information of the slips of last days cheques which are handed over to the NIFTs agent on MCBs own developed software Branch Teller. At the closing time of bank when NIFTs agent come with the passed cheques and information and dishonored cheques, Mr. Afzal make of reversal of that posted slip.
Cheques which are of MCB and online fund transfer applications are also stamped at this seat and handed over to the posting person. A daily sheet of record of local cheques (account number, cheque number, bank name of cheque and amount) is made on excel sheet. Inter city and same day cheques are recorded in separate register.
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4.1.2: Second Week:
During whole period of internship, mainly I sat on clearing seat and I indeed worked on that seat rather than just learning.
My tasks on that seat in second week were as follow:
Receiving and stamping cheques Sorting them as local and inter city Making local cheques record in excel Making inter city record on register Verification of the working of the day Printing
One of the works of the my daily routine was commenting on high value, as I had commented undone work of previous months in last week so now I was enable to do this work easily because now I know the businesses of the customers.
4.1.3: Third Week:
In third week there were some more tasks added to my clearing work. Now the total tasks which I was doing at clearing seat were:
Receiving and stamping cheques Sorting them as local and inter city Making local cheques record excel Making inter city record on register Separating cheques and deposits slips Putting different necessary stamps on cheques (explained below)
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Preparing covers for inter city cheques (city wise) Preparing cover for local cheques Receiving passed cheques information and dishonored cheques from NIFTs agent Attaching slips of dishonored cheques with them Informing related parties to dishonored cheques Giving dishonored cheques to related parties
Names of Various Stamps which are stamped on cheques are as follow:
Crossing Stamp (on every cheque) Date Stamp (on every cheque) Payees A/C will be credited on Realization (on every cheque) Previous Clearing Stamps Cancelled (on dishonored cheques which are to be send again)
Inter city clearing (on inter city cheques) All our stamps cancelled (for canceling stamps) Posted (on deposit slips after posting)
Crossing stamp is stamped on every received cheque in order to confirm receiving. Next day date stamp is stamped on every cheque because cheques will be presented at next day to particular branches. Payees A/C will be credited is also necessary to mention that the amount of the cheque will be credited to payees account when cheque would be passed.
There is a float of two days in available balance and ledger balance. There for if any cheque is dishonored then a reversal is made.
If any customer wants to resend dishonored cheque in clearing, then previous clearing stamp is stamped on those cheques on back side. If any customer wants to take back his cheque before sending of clearing then crossing stamp is cancelled by canceling stamp.
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INTERNSHIP REPORT
In third week I also made KYC forms for customers. These forms are made once to twice in the year and different things are mentioned on that form like their debit and credit turnover, nature of their business, their dealing with bank and comment on future business with the bank.
4.1.4: Fourth Week:
In fourth week time I started giving time to some other functions in bank along with my clearing work like:
Account opening Using branch teller to check the balances of the customers Issue the bank statement of account Sending letters to dormant or inactive account holders Scanning cheques and e-mailing them to particular branch Filling deposit slips and online fund transfer applications.
To open an account, a form is available which is called account opening form. Its a form on which different fields are given which is to be filled by customer by the help of banker. Some common fields are:
Branch Name & Code (bank square branch code is 0190) Type of Account (current, business, profit and loss etc) Currency of Account (local or foreign) Contact Information Category of Account (individual, joint, partnership etc) Occupation (business of the customer) Operational Instructions (any other able to operate this account) Reference Know Information Next
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Specimen Signature Card Nadra Verisys Form
On this seat I spent couple of days. And my other daily routines were same as previous weeks i.e. doing clearing work, commenting on high value transactions, calling customers for reminders.
4.1.5: Fifth Week:
In fifth week I did some additional works which are as follow:
Learned Procedures of Demand Drafts & Pay Orders Making Debit & Credit Vouchers For Remittance Filling ATM Forms
Demand drafts and pay orders are prepared by clearing person MCB, Bank Square Branch. Information is entered into branch teller and printed on DD stationary. Demand drafts are made against cash or amount is debited from account. Rupees 100 are charged as charges against issue of DD by MCB if amount is up to 100000. For non account holder it is 200 Rupees. For amount of more than 100000, charges are 0.1% of the amount and for non account holders it is 0.2% of the amount. For pay order charges are charges are 100.
Debit & Credit vouchers are also filled at clearing seat. Instruments are issued by Global Transaction Banking Branch, Karachi under home remittance scheme or speed or any other scheme. And it is mentioned on instrument that amount is payable at which branch. A credit voucher is sent to GTB, Karachi and a debit voucher is prepared for branch it self.
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I filled some forms for request of ATM issue and called those customers whose cards were ready but they did not collect. MCB charges 250 Rupees as issues fee and 250 as annual renewal.
4.1.6: Sixth Week:
In sixth week I started sitting with posting person who was responsible for posting the checques of MCB from one account to another account. All those cheques which are of MCB are transferred online by Mr. Noman. Online fund transfer applications are also posted by this person. Both cheques and applications are stamped at clearing seat and handed over to Mr. Noman. Difference between online fund transfer applications and cheques with deposit slips is that cheques are of other branches which are to be transferred in MCB, Bank Square branch accounts and online fund transfer applications are used to transfer money to account of another branch from the MCB, Bank Square.
He first checks the balance in account of cheque and then he makes verification about signatures, account number and account title from the branch teller software. If the payee party is trusted then he makes the transfer other wise he sends the cheques in clearing or sends fax or mail to particular branch of cheque. He gave me opportunity to post a couple of cheques under his care.
On the other hand I was doing my tasks at clearing seat. I went to head office of MCB with manager a couple of times where he took import forms. Sometimes I went with him to different customers for telling bank services and motivating them to open accounts and make deposits. I commented on high value transactions this week make some other debit voucher for expense.
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FINANCIAL ANALYSIS
86
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INTERNSHIP REPORT
In this section, statements, results and explanation of results will be presented respectively.
5.1: Financial Statements:
Balance Sheet:
2007 Assets Cash and balances with treasury banks Balances with other banks Lendings to financial institutions Investments Net Advances Net Operating fixed assets Deferred tax assets net Other assets Net
Amounts 2008 2009 (RS. In 000)
2010
39,683,883 39,631,172 38,774,871 45,407,183 3,867,591 4,043,100 6,009,993 1,478,569 1,051,372 4,100,079 3,000,000 4,401,781 115,358,590 96,631,874 167,134,465 213,060,882 218,959,786 262,135,470 253,249,407 254,551,589 16,082,781 17,263,733 18,014,896 20,947,540 0 0 0 0 17,896,838 19,810,476 23,040,095 27,705,069 412,900,841 443,615,904 509,223,727 567,552,613
Liabilities Bills payable Borrowings Deposits and other accounts Subordinated loan Liabilities against assets subject to finance lease Deferred tax liabilities net Other liabilities
10,479,058 10,551,468 8,201,090 10,265,537 39,406,831 22,663,840 44,662,088 25,684,593 292,088,347 330,181,624 367,604,711 431,371,937 479,232 0 0 0 0 0 0 0 1,183,586 437,137 3,196,743 4,934,018 11,716,465 21,345,781 15,819,082 16,092,319 355,353,519 385,179,850 439,483,714 488,348,404 57,547,322 58,436,054 69,740,013 79,204,209
Net Assets Owner's Equity Share capital Reserves Unappropriated profit Surplus on revaluation of assets Net of tax Total Equity
6,282,768 34,000,927 7,054,472 47,338,167 10,209,155 57,547,322
6,282,768 36,768,765 9,193,332 52,244,865 6,191,189 58,436,054
6,911,045 38,385,760 15,779,127 61,075,932 8,664,081 69,740,013
7,602,150 40,162,906 21,414,955 69,180,011 10,024,198 79,204,209
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INTERNSHIP REPORT
Income Statement:
Amount 2008 2009 2010 (RS. In 000) 31,791,754 40,043,824 51,616,007 54,821,296 7,858,819 11,560,740 15,837,322 17,987,767 23,932,935 28,483,084 35,778,685 36,833,529 105,269 2,959,583 199 3,065,051 2,683,994 1,335,127 0 4,019,121 1,484,218 5,796,527 41,576 7,322,321 444,476 3,100,594 52,047 3,597,117 2007
Markup / return / interest earned Markup / return / interest expensed Net markup / interest income Provision for diminution in the value of investments Net Provision against loans and advances Net Bad debts written off directly
Net markup / interest income after provisions Nonmarkup / interest income Fee, commission and brokerage income Dividend income Income from dealing in foreign currencies Gain on sale of securities Net Unrealized gain on revaluation of investments Other income
20,867,884 24,463,963
28,456,364 33,236,412
2,772,615 535,813 693,408 1,507,610 (3,329) 1,002,160 6,508,277
2,953,394 617,554 727,564 740,429 (103,198) 855,697 5,791,440
3,331,856 459,741 341,402 773,768 0 736,118 5,642,885
4,129,540 543,906 632,346 411,834 0 547,680 6,265,306
Total nonmarkup / interest income Nonmarkup / interest expenses Administrative expenses Other provision Net Other charges Total nonmarkup / interest expenses Extra ordinary / unusual item Profit before taxation Taxation Current year Prior years Deferred
27,376,161 30,255,403
34,099,249 39,501,718
5,440,305 7,546,878 10,111,330 12,173,942 (3,743) 23,135 142,824 88,261 642,780 817,824 690,150 986,440 6,079,342 8,387,837 10,944,304 13,248,643 0 0 0 0 21,296,819 21,867,566 23,154,945 26,253,075 6,463,560 7,341,257 7,703,305 8,027,433 (1,294,586) (864,824) (2,232,226) 0 899,898 16,533 2,188,569 1,352,467 6,068,872 6,492,966 7,659,648 9,379,900 15,227,947 15,374,600 6,278,593 11,860 6,290,453 5,130,750 21,319 5,152,069 15,495,297 16,873,175 9,193,332 15,779,127 22,324 21,792 9,215,656 15,800,919
Profit after taxation Unappropriated profit brought forward Transfer from surplus on revaluation of fixed assets
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Profit available for appropriation
21,518,400 20,526,669
24,710,953 32,674,094
5.2: Results:
Horizontal Analysis (Balance Sheet):
Horizontal Analysis 2008 2009 2010 % % % Assets Cash and balances with treasury banks Balances with other banks Lendings to financial institutions Investments Net Advances Net Operating fixed assets Deferred tax assets net Other assets Net Total Assets Liabilities Bills payable Borrowings Deposits and other accounts Subordinated loan Liabilities against assets subject to finance lease Deferred tax liabilities net Other liabilities Total Liabilities Net Assets Owner's Equity Share capital Reserves Unappropriated profit Surplus on revaluation of assets Net of tax Total Equtiy (0.13) 4.54 289.97 (16.23) 19.72 7.34 10.69 7.44 (2.29) 55.39 185.34 44.88 15.66 12.01 28.74 23.33 14.42 (61.77) 318.67 84.69 16.25 30.25 54.80 37.45
Speed %
4.00 (0.61) 264.66 37.78 17.21 16.53 31.41 22.74
Direction
Favorable
Upward Downward Upward Upward Upward Upward Upward Upward
Fav Unfav Fav Fav Fav Fav Fav Fav
0.69 (42.49) 13.04 0.00 0.00 (63.07) 82.19 8.39 1.54
(21.74) 13.34 25.85 0.00 0.00 170.09 35.02 23.68 21.19
(2.04) (34.82) 47.69 0.00 0.00 316.87 37.35 37.43 37.63
(7.69) (21.32) 28.86
Downward Fav Downward Fav Upward Fav
141.30 51.52 23.16 20.12
Upward Upward Upward Upward
Unfav Unfav Unfav Fav
0.00 8.14 30.32 10.37 (39.36) 1.54
10.00 12.90 123.68 29.02 (15.13) 21.19
21.00 18.12 203.57 46.14 (1.81) 37.63
10.33 13.05 119.19 28.51 (18.77) 20.12
Upward Upward Upward Upward Downward Upward
Fav Fav Fav Fav Unfav Fav
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INTERNSHIP REPORT
Horizontal Analysis (Income Statement):
Markup / return / interest earned Markup / return / interest expensed Net markup / interest income Provision for diminution in the value of investments Provision against loans and advances Net Bad debts written off directly
Horizontal Analysis 2008 2009 2010 % % % 25.96 62.36 72.44 47.11 101.52 128.89 19.01 49.50 53.90 2449.65 (54.89) 0.00 31.13 17.23 1309.93 95.86 20792.46 138.90 36.36 322.23 4.76 26054.27 17.36 59.27
Speed % 53.58 92.50 40.80 1360.60 15.24 15615.58 62.46 37.62
Direction
Nature
Upward Upward Upward Upward Downward Upward Downward Upward
Fav Unfav Fav Unfav Fav Unfav Fav Fav
6.52 15.26 4.93 -50.89 2999.97 (14.61) (11.01) 10.52
20.17 (14.20) (50.76) (48.68) 0.00 (26.55) (13.30) 24.56
48.94 1.51 (8.81) (72.68) 0.00 (45.35) (3.73) 44.29
25.21 0.86 (18.21) (57.42) 999.99 (28.84) (9.35) 26.46
Upward Upward Downward Downward Downward Downward Downward Upward
Fav Fav Unfav Unfav Unfav Unfav Unfav Fav
38.72 (718.09) 27.23 37.97 2.68 13.58 (33.20) (98.16) 6.99 0.96 (18.28) 79.76 (18.10)
85.86 (3915.76) 7.37 80.02 8.72 19.18 72.43 143.20 26.21 1.76 46.42 88.23 46.50
123.77 (2458.03) 53.46 117.93 23.27 24.20 0.00 50.29 54.56 10.80 151.32 83.74 151.19
82.78 (2363.96) 29.36 78.64 11.56 18.98 13.08 31.78 29.25 4.51 59.82 83.91 59.86
Upward Downward Upward Upward Upward Upward Downward Downward Upward Upward Upward Downward Upward
Unfav Fav Unfav Unfav Fav Unfav Fav Fav Unfav Fav Fav Unfav Fav
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INTERNSHIP REPORT
(4.61)
14.84
51.84
20.69
Upward
Fav
Vertical Analysis (Balance Sheet):
2007 % Assets Cash and balances with treasury banks Balances with other banks Lendings to financial institutions Investments Net Advances Net Operating fixed assets Deferred tax assets net Other assets Net 9.61 0.94 0.25 27.94 53.03 3.90 4.33 100.00
Vertical Analysis 2008 2009 % % 8.93 0.91 0.92 21.78 59.09 3.89 4.47 100.00 7.61 1.18 0.59 32.82 49.73 3.54 4.52 100.00
2010 % 8.00 0.26 0.78 37.54 44.85 3.69 4.88 100.00
Liabilities Bills payable Borrowings Deposits and other accounts Subordinated loan Liabilities against assets subject to finance lease Deferred tax liabilities net Other liabilities
2.54 9.54 70.74
2.38 5.11 74.43
1.61 8.77 72.19
1.81 4.53 76.01
0.29 2.84 86.06 13.94
0.10 4.81 86.83 13.17
0.63 3.11 86.30 13.70
0.87 2.84 86.04 13.96
Net Assets Owner's Equity Share capital Reserves Unappropriated profit Surplus on revaluation of assets Net of tax Total Equity
1.52 8.23 1.71 11.46 2.47 13.94
1.42 8.29 2.07 11.78 1.40 13.17
1.36 7.54 3.10 11.99 1.70 13.70
1.34 7.08 3.77 12.19 1.77 13.96
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INTERNSHIP REPORT
Vertical Analysis (Income Statement):
2007 % Markup / return / interest earned Markup / return / interest expensed Net markup / interest income Provision for diminution in the value of investments Net Provision against loans and advances Net Bad debts written off directly 72.44 128.89 53.90 322.23 4.76 26054.27 17.36 59.27
Amount 2008 2009 2010 % % % 100.00 100.00 100.00 24.72 28.87 30.68 75.28 71.13 69.32 0.33 9.31 0.00 9.64 65.64 6.70 3.33 0.00 10.04 61.09 2.88 11.23 0.08 14.19 55.13
48.94 1.51 (8.81) (72.68) 0.00 (45.35) (3.73) 44.29
8.72 1.69 2.18 4.74 (0.01) 3.15 20.47 86.11
7.38 1.54 1.82 1.85 (0.26) 2.14 14.46 75.56
6.46 0.89 0.66 1.50 0.00 1.43 10.93 66.06
123.77 (2458.03) 53.46 117.93 23.27 24.20 0.00 50.29 54.56 10.80 151.32 83.74 151.19
17.11 (0.01) 2.02 19.12 66.99 20.33 (4.07) 2.83 19.09 47.90 19.75 0.04 19.79
18.85 0.06 2.04 20.95 54.61 18.33 (2.16) 0.04 16.21 38.39 12.81 0.05 12.87
19.59 0.28 1.34 21.20 44.86 14.92 (4.32) 4.24 14.84 30.02 17.81 0.04 17.85
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INTERNSHIP REPORT
51.84
67.69
51.26
47.87
Ratio Analysis:
Ratios Specialized Ratios Earning Assets to Total Assets% Return on Earning Assets Net Margin to Earning Asset% Loan Loss Coverage Ratios Deposits Times Capital Loans to Deposits% Earning assets to deposits Solvency Ratios Debt to Total Assets Debt to Equity Equity Capital to Total Assets Profitability ratios Net Profit Marin% Return on Assets% Return on Equity% Marketability Ratios Earning per Share Dividend per Share Price Earning Ratio Market to Book Value ratio Dividend Payout Ratio% Dividend Yield Ratio%
2008
91.65 0.05 7.01
2009
92.11 0.05 7.63
2010
90.26 0.05 7.19
Overall
Favorable Favorable Favorable
17.38 6.32 81.86

1.23
4.96 6.02 71.34

1.28
9.31 Favorable 6.24 Favorable 60.37 Favorable

1.19 Favorable
0.87 7.37 0.13 38.39 3.47 29.43 20.22 11.50 6.22 1.51 56.87 9.14
0.86 7.20 0.14 30.02 3.04 25.37 20.38 11.00 10.78 2.49 53.97 5.01
0.86 Unfavorable 7.06 Unfavorable 0.14 Unfavorable 30.78 Favorable 2.97 Favorable 24.39 Favorable 22.20 11.50 10.29 2.51 51.80 5.03 Favorable Favorable Favorable Favorable Favorable Favorable
5.3: Explanation of Results:
If we see towards the specialized ratios of MCB, then we come to know that MCB has very good earning assets to total assets ratios in recent years. It shows the efficiency of its management that it is putting its assets to work and making earnings. The efficiency of the banking firm is measured by its ability to utilize its assets in a manner that they could be profitable for the firm. Lendings, advances, investments are increasing every year.
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There is decrease in balance with other banks and that for there is a little decrease in the ratio in year 2010.
Return on earning asset is not quite good for MCB in recent years. Net profit is almost same in year 2007 to 2009 and there is a little increase in net profit due to higher markup and non markup interest income in 2010 and there for ratio is a point better than 2009. This ratio shows real profitability position of business and MCB has some good ratios.
Net margin to earning assets ratio shows the managements ability to control the spread between interest income and interest expense. There is mix trend in this ratio in recent years for MCB. In year 2008, MCB has some good earning assets but interest earned was not ideal due to slump period. In year 2009 ratio had increased in quite good way but in year 2010, ratio is little less than last year due to high interest expense but there is a good amount of interest earned so ratio is up to the mark.
Loan loss coverage ratio helps in determining the asset quality and the level of protection of loans. This Ratio is unfavorable for MCB in recent year because of increasing trend in bad debts. MCB has to reconsider its policies in order to correct this situation.
Deposit times capital ratio to some extent, is a type of debt/equity ratio, indicating a banks debt position. More capital greater margin of safety and more deposits more money available for investment. There is increasing trend in deposits every year which shows the trust of public in MCB. And there is almost same increasing trend in equity thus MCB is maintaining this ratio.
Loan to deposit ratio shows the assets available against deposited demand. MCB has good ratios but there is decreasing trend in recent year in this ratio. Because there is increasing trend in deposits and decreasing trend in loans (balance with other banks and lendings to financial institutes).
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Solvancy analysis gives not much favorable picture. Equity to total assets ratio measures the extent of equity ownership in the bank. MCB should increase this ratio for the wealth of shareholders. On the other hand debt ratios are also not favorable. Debts have been and investing in a company having higher debt ratios may be risky due to high amount of interest paying especially when interest rate is high.
MCB has good profitability ratios overall but as compare to 2009, these ratios are unfavorable having decreasing trend because of higher amount of bad debts and mark up and non markup interest expense.
MCB offers good opportunities for investors having good earning per share and dividend per share. Price to earning ratio is good which shows the good reputation of MCB in market. There is increasing trend market to book value ratio which shows that value of MCB in market is greater than value of MCB in its books which is favorable for MCB and it will motivate investors to invest in MCB. Dividend payout ratio is almost stable which shoes the solid dividend policy of MCB. The Dividend Yield ratio can be helpful when looking for income producing stocks, ratio has decreased in 2009 and 2010 as compare to 2008 but still it is useful for wealth of shareholders.
Horizontal analysis of balance sheet and income statement shows that MCB has increasing trends in incomes, profits and earning assets. Equity has also increasing trend which shows that MCB thinks for wealth of its shareholders and improving its policies every year. Vertical analysis shows the stability of MCB policies that it is marinating equity and assets position, and improving its net income every year with reference to markup interest.
95
SWOT ANALYSIS
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INTERNSHIP REPORT
6.1: Internal Analysis:
6.1.1: Strengths:
Long & Strong Establishment:
MCB has a lot of experience than other private banks plus it has strong financial background by national group. Now it has a strong brand name for people to trust.
Network of branches:
MCB has a wide network of branches in all over the country plus location of branches is very good. MCB tries to establish branch at those location where deposits are highly expected. Branches like MCB, Bank Square Gujranwala, and Lahore are examples of this.
Products & Services:
MCB is providing almost all possible banking products and services from insurance to financing, from agriculture to house schemes, from individual loans to agency services, from full day banking to online banking even mobile banking and foreign exchange.
Increasing Trends:
MCB has very good investor and marketability ratios there are increasing trends in equity, assets, deposits and incomes.
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6.1.2: Weaknesses:
Employees Dissatisfaction:
Most of the employees in MCB are dissatisfied due to low salaries as compared to same positions in other banks plus they are not satisfied with incentives given by MCB to them. They also complain about overload of work Thats why turn over rate at MCB is high.
Effect of Nationalization:
A large number of MCB employees are of that period when MCB was a nationalized bank. They are now unwilling to present like employees in other private banks. Their attitude is not much motivating for customers.
Lack of Training & Skills:
There is lack of training and skills in employees. MCB is not paying much attention to improve the abilities and skills of its employees according to modern banking requirements.
Lack of Advertisement:
MCB is one of most powerful banks of Pakistan and it can create more customers by advertising regularly about its products and services on proper media channels but due to lack of services MCB is missing this opportunity.
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6.2: External Analysis:
6.2.1: Opportunities:
Motivation:
MCB can motivate its customers by spreading information about social and cultural benefits of adopting its product and services and depositing their money in a bank like MCB.
Islamic Banking:
Islamic Banking is a growing concept and MCB can overcome this field by offering more attractive Islamic banking products and opening new Islamic banking branches.
Need of Every Business:
Banking sector is most growing sector of Pakistan. It is now need of every business. Its opportunity for MCB to offer products and services to every business according to their need. Even it can offer to overseas customers.
Modernization:
MCB can follow the modernization in banking business. It can avail more modern IT technology, it can offer micro financing to make low income people into customers, and it can apply more modern training programs for skills improvement.
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6.2.2: Threats:
Huge Competition:
Banking sector is growing but actually pretty much grown sector in Pakistan. This attracts businessmen to enter into banking business in Pakistan. Many private banks have come into establishment in recent years and many foreign banks have started their branches in Pakistan. They are equipped with latest banking knowledge and skills as well as modern technology. So MCB has to compete them with more and more effort.
Current Situation of Pakistan:
o Recent years were not good for Pakistan, because law and order situation left huge impacts on all businesses.
o Shortage of energy also indirectly affect banking sector because other businesses rely on it.
o Pakistan is an Islamic country and people here think that bank business is not halal so most of the time they avoid it.
Govt. Policies:
Government of Pakistan is making is huge borrowings from state bank as well as from commercial banks. This cause many banks to bankrupt when they have no actual money to give back to its depositors. Banks are merging into one another to keep their neck up in water.
100
RECOMMENDATIONS
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Motivation & Training Programs:
MCB should apply some serious motivation programs to its employees. Its employees seem to be dissatisfied from their jobs. They think that they are overloaded with work and pay is not up to the mark. MCB has to remove the gap between management and nonmanagement. Proper meetings should be arranged for this purpose, this will reduce their frustration.
It seem that MCB employees are hunted by lack of training, even they dont know properly about major running software called symbols branch teller. MCB should train them as all rounder bankers that they could perform more and more banking tasks. MCB should train them with modern banking policies and attitudes and enable them to run with modern concept of customer relationship. Employees should also be enable to work on modern machinery and remaining manual procedures should be converted to computerized systems as early as possible to increase efficiency, following survival of the fittest. They should be taught the concepts of team work and job rotation.
Using Proper Channels:
MCB should advertise its products and services using all popular and proper channels like TV and print media. Mere having a website is not enough plus MCB should consider on advertising its products in easily understandable way, because pure banking terms are not understand by common people. People even dont properly understand English so it is recommended that spreading should also be in popular languages. It will make ease to build relations in bank and general public.
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Islamic Banking:
In Islamic countries, a huge number of people avoid banking systems because they think that banking is totally based on interest system which is haram. So, now a days concept of Islamic banking is growing in muslim countries and capturing market. MCB should understand the future market of Islamic banking and should make policies for it.
Rewards & Promotions:
MCB should reconsider its rewards and promotion policies because their pay is not up to the mark in comparison of other banks. They should adopt performance based reward system along with seniority based reward system. This should encourage hard workers. Good salaries will help in reducing turnover and it will also attract trained professionals.
Customer Relationship Management:
MCB has weak customer relationship management policies. It is running on its brand name and old establishment. There is lack of innovation in MCB. So, MCB should think about it. It should think that how to secure future and how to retain and gain customers. In this age of huge competition customer now are enable to compare the services and products of one bank with another. Availability of information is also high so there is a strong need for MCB to improve its customer relationship policies that will help it to secure its future.
103
CONCLUSION
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INTERNSHIP REPORT
At the end of this concluding this report Im feeling joy that with blessings of Allah, I finally completed by internship successfully and now I have made a report on it.
Internship at MCB Bank Limited, Bank Square was a pleasant experience. Most of the staff there was cooperative and they helped me in my leanings. I notice working at MCB that most of the MCB branches at those places where deposits come in huge amount and MCB has advantage of trust of people that its deposits are increasing every year.
MCB bank has a history as old as Pakistan and it is one of most powerful and largest banks of Pakistan. Huge number of branches in all over the Pakistan and largest ATM network plus strong financial and market position and a good brand name are some of the strengths of MCB. MCB has good financial ratios and increasing trends in profits, incomes, assets and equity, which shows the ever improving policies of MCB and thinking about wealth of its stakeholder.
MCB has good future in commercial banking with variety of products and services and it just need to improve its customer relationship management and it has to think seriously about Islamic banking plus MCB is facing some serious issues like high employee turn over because employees at MCB are less satisfied with their jobs and pays. So MCB has to apply some measures to overcome these problems as described in recommendation section that modern training and motivations programs should be applied at MCB.
I think I honestly did all my tasks during internship period which resulted in a very useful increase in my knowledge, experience and skills. I hope it will help me in future.
105
BIBLIOGRAPHY & REFRENCES
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INTERNSHIP REPORT
Managerial Finance By Lawrence J. Gitman Principles of Marketing By Philip Kotler http://www.mcb.com.pk/
References:
Altman, E.I. (1968), Financial ratios, Discriminant analysis and the prediction of corporate bankruptcy, Journal of Finance, September, pp. 189-209.
LAWRENCE J. GITMAN (2005) - Principle of Managerial Finance (Eleventh Edition). Addison-Wesley. ISBN: 9780321267610.
MCB BANK LIMITED (2011) Company Profile [online]. Retrieved from: http://www.mcb.com.pk/mcb/about_mcb.asp [Accessed: July 18, 2011].
MCB BANK LIMITED (2011) Annual Reports [online]. Retrieved from: http://www.mcb.com.pk/ir/fin_data_rep.asp [Accessed: July 25, 2011].
WEIHRICH, H. (1982) The TOWS Matrix A tool for situational analysis. Journal of Long Range Planning, 15.
SALMAN AMIN, Branch Manager at MCB Bank Square Branch, Information about high value transactions.
Chowdary Afzal, Officer at MCB Bank Square Branch, Information about clearing process, demand draft, pay order, posting.
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Glossary
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INTERNSHIP REPORT
BASIC Banking Account:
This type of account is for the student and low income group having no account maintenance charges.
Business Account:
Special account for the business group having large transaction limit and free fund transfer facility.
Credit Card:
A plastic card issued by a bank authorizing payment for purchases. Interest is charged on the outstanding balance.
Current Account:
It is a type of account that allows the account holder to maintain the money more conveniently
Clearing:
Clearing is the facility in which cheaques relating to other branch and other bank is transferred to the account holder account.
Credit:
Credit is defined as direct or indirect lending enabling a person to take possession of goods for future payment.
Cheques:
It is a written order of the depositor upon a bank to pay to or to the order of designated party or to a bearer, a specified sum of money on demand.
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Demand Draft:
It is a written order, drawn by one office (branch) of a bank upon another office (branch) of the same bank, to pay a certain sum of money to or to the order of a specified person.
Euro Money:
It is the international magazine which gives awards in its magazines.
Foreign Remittance:
Transfer of money from one country to another country is called foreign remittance
High Value Transaction:
The transactions above of the amount of 1 million or above is known as high value transactions.
KYC
It is a special type of form which banker has to fill as instructed by SPB. It stands for Know Your Customer.
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Letter of Credit:
A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. In the event that the buyer is unable to make payment on the purchase, the bank will be required to cover the full or remaining amount of the purchase.
Mail Transfer
The transfer of funds from one banks branch to some bank other branch either inside or outside the city is known as mail transfer.
bank.
Mark Up
It is the extra amount charged by the bank on the principle amount, it is actually the profit of the
Musharakah:
It is an agreement under which the Islamic bank provides funds which are mingled with the funds of the business enterprise and others. The profit is distributed among the partners in pre-determined ratios, while the loss is distributed by each partner in proportion to his contribution.
Mudarabah:
Sale on profit; Cost plus profit, sale at stated cost price and mark-up, sale at a specified profit margin.
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Next of Kin:
The person who is legally entitled to handle the account in case of death of account holder.
National Group:
The consortium which called itself the National Group comprised the following leading industrial groups and families:
o o o o o o o o o o o o
Mohammad Abdullah S.M.Muneer S.S.Saleem Mian Mohammad Haji Bashir Ahmad Tariq Rafi Mohammad Naseem Mohammad Arshad Sheikh Mukhtar Ahmad Saqib Elahi Bashir Jan Mohammad Khawaja Mohammad Javed
Saphire Din Universal Leather and Footwear Mansha Nishat Sitara Sadiqsons (United) Shafi Tanneries Arshad Textiles Ibrahim Be Be Jan Pakistan (Pvt) Ltd. F and B Bulk Storage (Pvt) Ltd. Chakwal
Pay-in-Slip:
It is a slip used by the customer to deposit a amount in its account.
Pay Order:
It is a written order, drawn by one office (branch) of a bank upon itself, to pay a certain sum of money to or to the order of a specified person.
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Remittance:
A remittance is a transfer of money by a foreign worker to his or her home country.
Signature Card:
It is a card which is annexed to the account opening form having two signatures of the applicant.
Telegraphic transfer
Transfer of funds from one branch to another branch of the same bank or upon other bank under special arrangements.
Term deposit certificate
It is the certificate of deposit which is issued for a specified future time period
Transfer cheaque
These are those cheques which are collected and paid by the same branch of bank.
Verisys
Bank confirms the computerized national identity cards are confirmed by this system through NADRA.
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Annexure
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INTERNSHIP REPORT
Internship Certificate Deposit Slips Debit & Credit Voucher ATM Application Form Cheque Book Requisition Slip Accounting Opening Form Specimen Signature Card Fund Transfer Application ATM Transaction Dispute Form
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Knowledge is Light, which enlightens our lives. And I believe that my honorable teacher is like shining moon and I am like a little star which absorbs this light of the Moon.

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INTERNSHIP REPORT ON MCB BANK LIMITED

PRESENTED TO: PROF. DR. EHSAN MALIK

PRESENTED BY: SHEHZAD WAHEED (MC09124)

UNIVERISITY OF PUNJAB GUJRANWALA CAMPUS

SUPERVISED BY: MR. HAFIZ IMRAN AKRAM SIGNATURE: _____________

PRESENTED BY: SHEHZAD WAHEED (MC09124)

My Loving Parents and Honourable Teachers

61 67 69 70 70 71 75 76 77 78 78 81 81 83 84 85 86 87 89 93 96 97 97 98 99 99 100 101 104 106 108 114

1.3: Sources and Methods of Collecting Information:

UNIVERSITY OF PUNJAB, GUJRANWALA CAMPUS

1.4: Limitations of Information Gathering:

1.5: Explanation of Accounting & Business Techniques and Limitations:

1.5.1: SWOT Analysis:

UNIVERSITY OF PUNJAB, GUJRANWALA CAMPUS

1.5.2: Ratio Analysis:

UNIVERSITY OF PUNJAB, GUJRANWALA CAMPUS

1.5.3: Trend Analysis:

1.5.3.1: Horizontal Analysis:

1.5.3.2: Vertical Analysis:

UNIVERSITY OF PUNJAB, GUJRANWALA CAMPUS

2.1: About MCB:

UNIVERSITY OF PUNJAB, GUJRANWALA CAMPUS

2.2: History of MCB:

UNIVERSITY OF PUNJAB, GUJRANWALA CAMPUS

2.2.3: Board of Directors:

2.2.4: Other Information:

UNIVERSITY OF PUNJAB, GUJRANWALA CAMPUS

2.5: Values at MCB:

UNIVERSITY OF PUNJAB, GUJRANWALA CAMPUS

2.6: Awards & Accolades:

2.6.1: Euro Money Awards:

Best Bank in Asia Award 2008:

Best Bank in Pakistan Award 2006:

Best Bank Award 2005:

Best Bank Award 2004:

UNIVERSITY OF PUNJAB, GUJRANWALA CAMPUS

Best Bank Award 2003:

Best Bank Award 2001:

Best Domestic Bank Award 2000:

2.6.2: Asia Money Awards:

Best Domestic Commercial Bank Award 2005:

Best Domestic Commercial Bank Award 2004:

UNIVERSITY OF PUNJAB, GUJRANWALA CAMPUS

2.7: Organizational Setup:

PROVINCIAL HEAD QUARTERS

KPK & AZAD KASHMIR

UNIVERSITY OF PUNJAB, GUJRANWALA CAMPUS

2.8: Management Structure:

Executive Vice President

Assistant vice President

UNIVERSITY OF PUNJAB, GUJRANWALA CAMPUS

2.9: Management Hierarchy (Branch):

UNIVERSITY OF PUNJAB, GUJRANWALA CAMPUS

2.10: Policy Formation:

2.11: Managerial Policies:

UNIVERSITY OF PUNJAB, GUJRANWALA CAMPUS

2.12: Products & Services:

2.12.1: Personal Banking:

2.12.1.1: Online Services:

MCB provides very excellent online services which are as follow: