7/28/2008

MCB
BANK
INTERNSHIP REPORT

MUHAMMAD MUNEEB | 2008

INTERNSHIP REPORT

MUSLIM COMMERCIAL BANK

BRANCH: “CLOCK TOWER SUKKUR”

BY
MUHAMMAD MUNEEB
M Sc. Economics

A REPORT SUBMITED IN FULFILLMENT OF THE INTERNSHIP

 ACKNOWLEGEMENT
No one can say that I am perfect, everyone should admit that without the
help of ALLAH and His people a man can’t get anything so I bow my head before
Almighty Allah with gratitude. I am also very much thankful and presents salute to many
individuals who have helped me in shaping this report .I am also very much thankful to
lot of former fellows and contemporary colleagues who took the time and trouble during
the last few days to speak to me about the way this text could be further improved. I have
no words to express my gratitude to my advisor Mr. Muhammad Khalid Shaikh for his
intellectual guidance without which it could have been rather difficult for me to complete
this report.

I am also very thankful to the staff MCB BANK LTD Clock Tower Sukkur Branch
especially to Mr. Ghulam Shabir Shaikh (Branch Manager) who provided me an
opportunity to work in friendly environment.
 DEDICATION

This Internship repost is dedicated to almighty ALLAH and His beloved Prophet
HAZRAT MOHAMMAD (Peace Be Upon Him) and to my parents and family for their
encouragement and co-operation and all the students who are interested in getting
knowledge and who are trying to explore the world of knowledge and finding new
horizons.
 TABLE OF CONTENTS
– Page No –

Acknowledgment
Dedication
Chapter – 1 INTRODUCTION
1.1 Overview ~ 01 ~
1.2 History of MCB ~ 01 ~
1.3 Mission Statement ~ 02 ~
1.4 Vision Statement ~ 02 ~
1.5 Values of MCB ~ 02 ~
1.6 Objectives ~ 02 ~
Chapter – 2 ORGANIZATIONAL STRUCTURE
2.1 Organizational Structure ~ 04 ~
2.2 Organizational Hierarchy ~ 05 ~
2.3 Branch Structure ~ 06 ~
Chapter – 3 FUNCTIONS OF DEPARTMENTS
3.1 Cash Department ~ 07 ~
3.2 Clearing Department ~ 08 ~
3.3 Remittances ~ 09 ~
3.4 Credit Department ~ 11 ~
Chapter – 4 PROUDUCTS OFFERED BY MCB
4.1 Types of Accounts ~ 13 ~
4.1.1 Current Account ~ 13 ~
4.1.2 Saving Account ~ 13 ~
4.1.3 Business Account ~ 13 ~
4.1.4 Basic Account ~ 13 ~
4.1.5 Saving 365 Gold ~ 14 ~
4.2 Consumer products ~ 14 ~
4.2.1 MCB Smart Card ~ 14 ~
4.2.2 MCB Visa Card ~ 14 ~
4.2.3 MCB Car4u ~ 15 ~
4.2.4 MCB Pyara Ghar ~ 16 ~
4.3 Services ~ 16 ~
Chapter – 5 SWOT ANALYSIS
5.1 Strength ~ 18 ~
5.2 Weakness ~ 18 ~
5.3 Opportunity ~ 19 ~
5.4 Threats ~ 19 ~
Chapter – 6 CONCLUSIONS & SUGGESTION
6.1 Suggestions & Recommendations ~ 20 ~`
Bibliography
 CHAPTER – 1

INTRODUCTION

1.1 OVERVIEW

MCB is one of the leading banks of Pakistan with a deposit base of Rs. 368 Billion and total
assets over Rs.500 Billion. Incorporated in 1947, MCB soon earned the reputation of a solid and
conservative financial institution managed by expatriate executives. In 1974, MCB was nationalized
along with all other private sector banks.

The Bank has a customer base of approximately 4 million, a nationwide distribution network of over
1,000 branches and over 450 ATMs in the market. During the last fifteen years, the Bank has
concentrated on growth through improving service quality, investment in technology and people, utilizing
its extensive branch network, developing a large and stable deposit base.

1.2 History of MCB Bank

MCB Bank (MCB) unfolds 62 years of growth. MCB is not an overnight success story. The bank
started corporate life in Calcutta on July 9, 1947. After the partition of the Indo-Pak Subcontinent, the
bank moved to Dhaka from where it commenced business in August 1948. In 1956, the Bank transferred
its registered office to Karachi, where the Head Office is presently located. Thus, the bank inherits a 62-
year legacy of trust in its customers and the citizens of Pakistan.

- Nationalization
In January 1974, the Government of Pakistan nationalized MCB following the banks
(Nationalization) Act 1947, Premier Bank Limited merged with MCB.

- Privatization
A wave of economic reforms swept Pakistan in the late 1990, introducing the need for privatization of state
owned banks companies. In April 1991, MCB became Pakistan’s first privatized bank. The government of Pakistan
transferred the management of the Bank to National Group, a group of leading industrialists of the country by selling
26% shares of the bank.

In terms of agreement between the Government of Pakistan and the National Group, the group, making their holding
50% has purchased additional 24% shares. Now, 25% is purchased by the Government, which shall be sold in the
near future.

~ 01 ~
1.3 VISION
To be the leading financial services provider, partnering with our customers for a more prosperous and secure
future
1.4 MISSION
We are a team of committed professionals, providing innovative and efficient financial solutions to
create and nurture long-term relationships with our customers. In doing so, we ensure that our
shareholders can invest with confidence in us.

1.5 OUR VALUES

- Integrity

We are the trustees of public funds and serve our community with integrity. We believe in being the
best at always doing the right thing. We deliver on our responsibilities and commitments to our customers
as well as our colleagues

- Respect

We respect our customer’s values, beliefs, culture and history. We value the equality of gender and
diversity of experience and education that our employees bring with them. We create an environment
where each individual is enabled to succeed.

- Excellence
We take personal responsibility for our role as leaders in the pursuit of are a performance driven, result oriented
organization where merit is the only criterion for reward
- Customer Centricity

Our customers are at the heart of everything we do. We thrive on the challenge of understanding their needs
and aspirations, both realized and unrealized. We make every effort to exceed customer expectations through
superior services and solutions

- Innovation

We encourage and reward people who challenge the status quo and think beyond the boundaries of the
conventional. Our teams work together for the smooth and efficient implementation of ideas and initiatives.

1.6 OBJECTIVES

- A Vision of the Future

The modern, urbane architecture and intelligent design of MCB Tower reflect MCB’s pioneering role
in the banking arena, providing cutting edge, innovative banking solution- leading with an edge of
technology.

~ 02 ~
 - Setting Ever-Higher Standards

Towering at 116 meters, with 29 levels and 3 basements, MCB tower is the tallest building in
Pakistan. It is a sound representation of MCB’s leadership position in the banking sector, testified by four
“best bank in Pakistan” Euro money Awards in five years.
- Strong Foundation

MCB tower is a manifestation of MCB’s strong foundation with over 50 years of banking excellence
and represents our commitment to always stay a step ahead.

- Understanding At all levels

From individual customers to corporate and commercial clients, MCB’s flexible solutions reach out
to a diversified audience -reflected in all levels of MCB tower.

~ 03 ~
 CHAPTER – 2

ORGANIZATIONAL STRUCTURE
2.1 ORGANIZATIONAL STRUCTURE
CORPORATE PROFILE (ORGANIZATION)
Board of Directors
Mian Mohammad Mansha Chairman
Mr. S. M. Muneer Vice Chairman
Mr. Tariq Rafi Member
Mr. Shahzad Saleem Member
Mr. Sarmad Amin Member
Dr. Muhammad Yaqub Member
Mian Raza Mansha Member
Dato' Mohammed Hussein Member
Mr. Aftab Ahmad Khan Member
Mr. Abdul Farid Bin Alias Member
Mian Umer Mansha Member
Mr. Muhammad Ali Zeb Member
Mr. M.U.A. Usmani Acting President

Audit Committee
Mr. Tariq Rafi Chairman
Dr. Muhammad Yaqub Member
Dato' Mohammed Hussein Member
Mr. Aftab Ahmad Khan Member
Mr. Muhammad Ali Zeb Member
Mr. Malik Abdul Waheed Member

Human Resources Committee

Mian Mohammad Mansha Chairman
Dr. Muhammad Yaqub Member
Mian Raza Mansha Member
Mr. Shahzad Saleemn Member
Mr. M.U.A. Usmani Member

Risk Management & Portfolio Review Committee

Mr. Shahzad Saleem Chairman
Mr. Tariq Rafi Member
Mr. Sarmad Amin Member
Mian Raza Mansha Member
Mian Umer Mansha Member

Committee on Physical Planning, IT System & Contingency Arrangements

Mr. Sarmad Amin Chairman
Mr. S. M. Muneer Member
Mr. Tariq Rafi Member
Mian Raza Mansha Member
Mr. Abdul Farid Bin Alias Member
Mr. M.U.A. Usmani Member

~ 04 ~
 Business Strategy & Development Committee

Mian Mohammad Mansha Chairman

Mr. S. M. Muneer Member
Mr. Shahzad Saleem Member
Mian Raza Mansha Member
Dr. Muhammad Yaqub Member
Dato' Mohammad Hussein Member
Mian Umer Mansha Member
Mr. M.U.A. Usmani Member

Chief Financial Officer

Mr. Salman Zafar Siddiqi

Principal Office

MCB 15 Main Gulberg, Lahore

Registrar's and Share Registration Office

MCB 15 Main Gulberg, Lahore

M/s. THK Associates (Pvt.) Limited
State Life Building No.3,
Dr. Ziauddin Ahmed Road,
Karachi

- ORGANIZATION
More than 7 Groups of people working together to achieve a common goal of MCB Bank to maintain
integrity.

2.2 ORGANIZATIONAL HIERARCHY

PRESIDENT
and CEO

EXECUTIVE EXECUTIVE
DIRECTOR DIRECTOR

INVESTMEN INSPECTION OPERATION HRD CORPORATE CONSUMER

T

SAMG & GSD CONSUMER CORPORATE

FRAUD BANKING BANKING
FORGERY GENERAL GROUP GROUP
REGIONAL MANAGER
MANAGER

MANAGER CHEIF
MANAGER

~ 05 ~
2.3 BRANCH STRUCTURE (MCB BRANCH: 0101)

MANAGER

OPERATIONAL
MANAGER

ACCOUNTANT

OFFICERS

CASHIER

MESSENGER

GUARD

~ 06 ~
 CHAPTER – 3

FUNCTIONS OF DEPARTMENTS
3.1 CASH DEPARTMENT

Cash Department is very sensitive and risky part of the bank. Very causations and competent
personnel are needed for the Job. HBL has really such a diligent staff with appreciable competencies and
will to do work. Main function of cash department is to deal with cash payment and cash receipts.

- CASH DEPOSIT PROCEDURE

The customer fills the pay slip. The cashier receives the pay slip and cash. He counts the cash and
makes the detail of the notes at the back of the pay slip. Then he compares the detail with amount written
on slip and signs the pay Slip. Then he credits the entries in the computer by serial No, account type,
Account number and amount. Puts the stamp of the “cash Received” on the payment slip. The first
portion is for bank record while other one is given to the customer.

- CASH PAYMENTS PROCEDURE

When a customer comes to withdraw a certain amount from his account, he brings a Cheque along
with him. In this case the following steps are taken.
The cashier receives the cheque and checks it whether it is post dated or predated. Cheque can be cashed
within six months. A predated cheque cannot be cashed. He takes two signatures at the back of the cheque
from the bearer. He gives the cheque for posting at the computer. The computer checks out whether there
is balance in the account or not. Other instructions are also received e.g. blocked, frozen, Etc. the posting
is done in the computer and the cheque is stamped posted with the serial number and date. He gives the
cash to bearer and the respected account is debited.

- ONLINE FUND TRANSFER

Another function of the cash department is of online transfer of funds. Customer has give filled
remittances form with cash or without cash (from account transfer) to the cashier in cash department who
will then credits the beneficiary account.

- BALANCING CASH AT THE END AND TRANSFERRING EXCESS CASH

At the day end cash department is responsible for balancing the cash. Physical cash should be
balanced with the amount in the computer. Jinnah Chowk branch’s limit for cash is 40 million which it
can keep within the branch over the night excess cash is transferred to NBP.

~ 07 ~
3.2 CLEARING DEPARTMENT

- INTRODUCTION
Every bank acts in two way i.e.
i. Paying Bank
ii. Collecting Bank
Here in theory no legal obligation on a banker to collect cheques, drawn up to other banks for a
customer. It is, however, an important function of crossed cheques. A large part of this work is carried out
through the N.I.F.T.

- NIFT- National Institutional Facilitation Technologies (Pvt.) Limited

NIFT is a joint venture between a consortium of six major banks and private sector. It is responsible
for the establishment and management of automated clearinghouse facilities in Pakistan. NIFT is
proactively involved in the modernization of payment systems in Pakistan.

- FUNCTION OF CLEARING DEPARTMENT

The following are the main functions of clearing department.
1. To accept transfer deliveries and clearing cheques from the customer of the branch and to arrange
for their collection.
2. To arrange the payment of cheque drawn on the branch and given for collection to any other
branch of HABIB Bank of Pakistan or any other members, or sub-members of the local clearing
area..
3. To collect amounts of cheques drawn on members, sub-members of the local clearing house, sent
for collection by those HABIB Bank Limited, branches which are not represented a the local
clearing area.

- PROCEDURE OF DEPOSITING CHEQUES IN CLEARING DEPARTMENT

Whenever a customer wants to deposit cheque, etc, he fills a pay in slip and hands it over the counter
along with the instruments he wants to deposit with bank. As far as possible, the customer desire that on
of the staff member fill in a slip for him, he should be obliged promptly. One portion of the perforated pay
in slip is handed over to the depositor and the portion becomes the regular portion of a credit voucher

~ 08 ~
 - TYPES OF CHEQUES COLLECTED BY CLEARING DEPARTMENT
a. Transfer Cheques
Transfer cheques are those cheques, which are collected and paid by the same branch of
bank.
b. Transfer Delivery Cheques
Transfer Deliver cheques are those cheques, which are collected and paid by two
different branches of a bank, situated in the same city.
c. Clearing Cheques
Clearing cheques are those cheques in which the payee (Person who deposit cheques for
collection) and the drawer of a cheque maintain the account with different banks.
These clearing instruments are handed over to NIFT after posting necessary stamps and checking them
for any errors. Then further process of clearing is carried on the behalf of NIFT.

3.3 REMMITANCE DEPARTMENT

REMITTANCE
Transfer of money or equivalent to money from one branch to another branch of the same bank is
called remittance.
IMPORTANT TERMS

- ORIGINATING BRANCH
It is the branch from which money is send to another branch or the point of origin of remittance.
- RESPONDING BRANCH
The branch which receives the instrument or money for remittance is known as Responding Branch.

TYPES OF REMITTANCE
Remittance is classified into following four types:
1. Inward Remittance
2. Outward Remittance
3. Inland Remittance
4. Foreign Remittance
INWARD REMITTANCE
The branch which receives the instrument (T.T, D.D etc) directly from the customer or from the
originating branch and is responsible to pay to party is called inward remittance. For example if
some D.D is drawn on our bank and we have to pay the party (to whom it was send).
OUTWARD REMITTANCE
The branch, which issues or sold the instrument to the responding branch, is called outward
remittance. In this case we are sending remittance to another branch of the same bank in any
location.

~ 09 ~
INLAND REMITTANCE
Transfer of money from one branch to another branch of the same bank within the same country
is called inland remittance. In this case both originating branch and responding branch will be
situated in the same country.
FOREIGN REMITTANCE
Transfer of money from one country to another country is called foreign remittance.

MODES OF PAYMENT
MCB uses following four types of modes of payment
1) DEMAND DRAFT (DD).
2) PAY ORDER (PO0).
3) MAIL TRANSFER (MT).
4) TELEGRAPHIC TRANSFER (TT).
DEMAND DRAFT
Demand Draft is used for the transfer of money outside station.
A draft is an instrument drawn by a bank in favour of any person on a branch of its own bank or
any other bank to pay a certain amount of money which is demanded to the person named on it.
It is not necessary for the demand draft that applicant or recipient account should be open in
originating and responding branches.
It is one of the cheapest methods of transference of money within the country or outside the
country.
Applicant has to fill in the application form for availing the facility of demand draft. After
depositing the amount of draft, remittance officer prepares the cheque of demand draft.
When banker issue draft to the customer, he also records customer particulars in a demand draft
register where record is maintained branch wise.
Responding branch and originating branch debit/credit the head office account and send the daily
statement of transaction to head office.
PAY ORDER
Pay Order is used as instrument for transfer of money within station or city.
Pay order is written order, which is issued and received by the same bank or drawn and payable
on same branch.
For pay order it is not necessary that applicant should be account holder.
It is used for local transference of money from one person to another.
The bank charges excise duty and flat rate from the applicant.
MAIL TRANSFER
The transfer of money from one branch to another branch of the same bank through mail or
courier service is called mail transfer.
The applicant should be the regular customer or the account holder of the responding as well as
originating branch.

~ 10 ~
TELEGRAPHIC TRANSFER
Originating branch send funds to responding branch instantly and immediately through telegram
and fax.
Bank charges commission, telegram/fax charges on telegraphic transfer.

3.4 CREDIT DEPARTMENT

- INTRODUCTION
The function of credit department is to lend money in the form of clean advances, against promissory
notes, as well as secured advances against tangible and marketable securities. The bankers prefer such
securities that do not run the risk of general depreciation due to market fluctuations.
Common Securities for the banker’s advances are as under: -
SECURITIES:
1. GUARANTEES
When an application for advance cannot offer any tangible security, the banker may rely on
personal guarantees to protect himself against loss on advances or overdraft to the applicant.
2. MORTGAGE
A mortgage is the transfer of an interest in specific immovable property for the purpose of
security the payment of money advanced or to be advanced by way of loan, and existing or future
debt, or the performance of an engagement, which may rise to a pecuniary liability. The transfer
is called a mortgagor, the transferee a mortgage.
3. HYPOTHECATION
When property in the shape of goods is charged as security for a loan form the bank the
ownership and possession is left with the borrower, the goods are said to be Hypothecated The
essence of hypothecation is that neither the property in the goods not the possession of them are
possession is left with the borrower, the goods are said to be Hypothecated the essence of
hypothecation is that neither the property in the goods not the possession of them are possessed
by the lender, but the security is granted by means of letter of hypothecation, which usually
provides for a banker’s charge on the hypothecation goods.
4. PLEDGE
In a pledge the ownership remains with pledge, but the pledge has the exclusive possession of
property until the advance is repaid in full. While in case of the default the pledge has the power
of sale after giving due notice.

~ 11 ~
 5. PROMISSORY NOTE
Sometimes promissory note is also accepted as a security, "A promissory note is an instruments
in writing containing an unconditional undertaking signed by the maker, to pay on demand or at a
fixed or determinable future time a certain sum of money only, to or to the order of certain
persons, or to the bearer or the instrument." A promissory note is incomplete until has been
delivered to payee or the bearer.
Moreover, the sum promised in a promissory note may be made by two or more makers who may be
liable there on jointly and severally.
- TYPES OF CREDIT
The advances, which are given by MCB BANK LIMITED, are as under: -
1. DEMAND FINANCE (Ordinary Loan)
Demand Finances are those advances, which are allowed in lump sum for a fixed period and are
repayable lump sum or gradually in instalments.
2. RUNNING FINANCE (Overdraft)
Running finance (old name overdrafts) are advances, which are generally, given to meet
temporary requirements of the customers. A good customer use the banks running finance limit as
a mean of protecting his credit in the market and as a line of security defence to meet his
commitments.

- TYPES OF RUNNING FINANCE

I. UNSECURED
Under such type of overdraft the bank pay upon the personal security of the customer’s
mentioned on the customer’s account.
II. SECURED
Under this type of overdraft the bank allows his customer to withdraw more than his deposits
after giving security against the amount overdrawn.
The securities against which they given are:
i. Share certificate, saving certificate
ii. Deposits
iii. Mortgage of property
iv. Guarantee of person

~ 12 ~
 CHAPTER – 4

PRODUCTS OFFERED BY MCB BANK

4.1 TYPES OF ACCOUNTS

1. Current Account
2. Saving Account
3. Business Account
4. Basic Account
5. Saving 365 Gold

4.1.1 CURRENT ACCOUNT

Low minimum balance requirements.
Unlimited cash deposit and withdrawal facility at hundreds of branches nationwide
Use your MCB Smart Card to shop at thousands of merchants across Pakistan
Lockers and other affordable transactional facilities

4.1.2 SAVING ACCOUNT

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 Smart Card to shop at thousands of merchants across Pakistan.
Locker facility at economical rates.

4.1.3 BUSINESS ACCOUNT

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.
- FREE SERVICES
• When you maintain average monthly balance of Rs.100,000 or above
• Demand Drafts/Pay Orders.
• Cancellation for Demand Drafts/Pay Orders.
• Cheque Book.
• International ATM Gold Card.

4.1.4 BASIC ACCOUNT

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.
- FREE SERVICES
• When you maintain average monthly balance of Rs.100,000 or above
• Demand Drafts/Pay Orders.
• Cancellation for Demand Drafts/Pay Orders.

~ 13 ~
 • Cheque Book.
• International ATM Gold Card.

4.1.5 SAVING 365 GOLD

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.

4.2 CONSUMER PRODUCTS

1. MCB Smart Card

2. MCB Visa Card
3. MCB Car4u
4. MCB Pyara Ghar

4.2.1 MCB SMART CARD

MCB now brings you MCB Smart Card -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 Smart Card 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.

4.2.2 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.

Makes MCB Visa the most affordable MCB VISA offers you a wide range of products
credit card in your wallet. that will cater to your diversified taste perfectly

Buy now and pay later in easy and Saving you from the hassle of making multiple
affordable monthly instalments! payments on your various credit cards.

~ 14 ~
 You need cash and want to pay back Life is too precious to be spoilt by unforeseen
in installments. Just dail 111--000- events and mishaps.
MCB(622).

Now experience peace of mind of

How About a credit card that acts like
having a credit card free from fraud
hard cash
or misuse!

MCB Cards SMS Facility.

Keeping you informed anywhere &
everywhere through your cell phone.

4.2.3 MCB CAR4U

- KAHIN NA KAHIN TAU HAI 1 CAR 4 YOU

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 Hai…1 Car 4 you".

FLEXIBLE
Option for financing or leasing
Financing tenures from 1 to 7 years
Option for new as well as used cars
Options for local as well as imported cars
Financing upto Rs. 25 lacs
Option for early payment
Option for replacement loan
AFFORDABLE
Lower mark up rates
Lower insurance rates
Minimum 20% down payments
SPEED
Fast and hassle free processing of application
Priority delivery on different vehicles

~ 15 ~
 SPECIAL BENEFITS
No processing fee if the case is declined
Pay your down payment after your loan is approved

4.2.4 MCB PYARA GHAR (Apna

Apna Ghar …Pyara Ghar)

Owning your dream home has never been easier. MCB ‘Pyara Ghar’ is the most sensible option
for purchasing, building, or renovating your new/existing home. It offers you a range of financing options
to help you realize your dreams. After all ", Apna Ghar Pyara Ghar".

Purpose HP: Purchase of Ready property.

HC: Construction of house on land owned by borrower/s and should be disbursed

in trenches.
HR: Renovation of existing home with documented end usage and should be
disbursed in trenches.
Purpose HP: Purchase of Ready property.

HC: Construction of house on land owned by borrower/s and should be disbursed

in trenches.

HR: Renovation of existing home with documented end usage and should be
disbursed in trenches.

BTF: Payment to the relevant bank plus a portion paid to the customer for
documented end use other than investments in real estate and capital market.

PC: Purchase of land / plot and construction on it which should be disbursed in

trenches.

BTF: Payment to the relevant bank plus a portion paid to the customer for
documented end use other than investments in real estate and capital market.

PC: Purchase of land / plot and construction on it which should be disbursed in

trenches.

4.4 SERVICES

1. PERSONAL BANKING
Online Services, Accounts,Loans, Cards,Traveler’s Cheque, Branches & ATMs,etc

2. CALL CENTRE
About Call Centre

3. MCB VIRTUAL BANKING

MCB Virtual Internet Banking offers a wide range of online services which makes your banking
accessible anytime and from anywhere.

~ 16 ~
4. TRADE FINANCE
Under Corporate Banking MCB offers trade finance services that include an entire range of
import and export activities

5. CASH MANAGEMENT
Our network of over 900 branches in Pakistan enables us to collect and disburse payments
efficiently with our cash management services

6. ISLAMIC BANKING
MCB now provides its customers with the reliable Islamic Financial Services and support they
require to successfully achieve their business objectives.

7. CUSTOMER CARE
Here you’ll find a range of resources to help you use the MCB web site and its online services.

8. ONLINE SERVICES
MCB ATM Services

~ 17 ~
 CHAPTER – 5

SWOT ANALYSIS
5.1 STRENGTHS

MCB is in its over 50 years of operation. It has a network of over 1,200 branches all over the
country with business establishments in Bangladesh, Sri Lanka and Bahrain. The branch break-up
province wise is Punjab (57%), Sindh (21%), NWFP (19%) and Baluchistan (3%) respectively.
Being the senior bank in Pakistan it is highly recognized all over Pakistan and it is very well
known among its customers
MCB has a huge amount of Branches all over Pakistan where other banks still can not be able to
provide their services and that is a huge bonus point for the bank
The bank has huge amount of assets
The bank is involved in different investing activities where there is a huge amount of output
available for the bank that bank can use for its growth
MCB has a very senior and dedicated work force as well as young and creative staff which is a
very big asset for the bank.
MCB has an edge over other local banks, as it was the first privatized bank. The State Bank of
Pakistan has restricted the number of branches that can be opened by foreign banks, an advantage
that MCB capitalizes because of its extensive branch network.
Eight years after privatization, MCB is now in a consolidation stage designed to lock in the gains
made in recent years and prepare the groundwork for future growth.
MCB looks with confidence at year 2001 and beyond, making strides towards fulfillment of its
mission, "to become the preferred provider of quality financial services in the country with
profitability and responsibility and to be the best place to work".

5.2 WEAKNESSES

With the strengths the Bank has also some weaknesses which are as under
Though Muslim Commercial Bank installed computer yet the system has not totally shifted on
computer. Manual procedure is still there hence computer facility is not fully availed. It should be
fully availed and system should be fully computerized.
A lot of productive time is wasted by the staff in unproductive pursuits and tea and lunch breaks
are got voluntarily extended and the time spent in corridors, courtyards, depends on the staff will.
This tendency of late must be eliminated which reflect adversely on the image of the institution
and has posed a serious problem.
It should not be like that a person who may be a very good worker but possessing lack of
managerial capabilities should be posted as manager. But as second place in command or some
heavy working department wished persons together with managerial qualities and manners in the
same fashion should be posted and placed as manager.
People have to wait for re-cashing their cheques for about 10 to 12 minutes, which is not good for
the reputation of bank.

~ 18 ~
 It is human nature one goes behind reward and incentives while and try to avoid from
punishment. Likewise in commercial institution like bank this system be introduced with full
force means active smart, educated skilled, self spoken and well versed staff personal, should be
reward and appreciates, while on the other hand lazy, lethargic, heard, rough dealers and ill
mannered must be warned penalized and punishes.

5.3 OPPORTUNITIES

The bank has a lot of opportunities which includes

Since the Bank has an extensive networks of branches so if the bank can be able to computerize
all of its branches then it can be able to capture the market more efficiently
The bank has already a huge amount of customers by providing better and better services to their
existing customers, but word of mouth can also be helpful in increasing the number of customers
to have a competitive advantage over its growing number of competitors.
Since the Bank is earning a lot of profit per annum so by increasing the employee’s salaries and
providing incentives the Bank can produce more loyal employees that can increase the
productivity.

5.4 THREATS

With opportunities the Bank has also some threats which includes
Due to increasing number of foreign banks in Pakistan which offer a very attractive package for
their employees the very key employees of the bank are more likely to resign which is a very
major threat.
Not all branches are computerized neither providing ATM services and no online banking and the
customers demand for these services is increasing day by day so Bank should computerize all its
branches.
At some places, the Muslim Commercial Bank Limited is over-employed. which is causing over
expenditure

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 CHAPTER – 6

SUGGESTIONS AND RECOMMENDATIONS

6.1 SUGGESTIONS FOR THE IMPROVEMENT OF BRANCH

SHORTAGE OF STAFF:

Almost in all branches of Muslim Commercial the problem of Shortage Of Staff is very common.
There are only few employees who are the be all and end all of the whole branch resulting in burden of
work. Basically the main idea behind it is that whenever there is shortage of staff in any organization it
always result in lot of work and also boots up the destructiveness as well because people working over
there feel like that they can do whatever they feel like so are least bothered about the rules and regulations
as implemented by the head office and mostly it results in corruption.

This problem result in more corruption because there are less number of people to keep check and
balance and more work load so when they got to do lot of work they wont be creative and imaginative
enough to take part in the evolution of new products and wont be satisfied with their job as well.

STAFF IS NOT ADEQUATELY TRAINED:

Staff in almost all branches of Muslim Commercial bank is not adequately trained with the
contemporary era. Basically Muslim Commercial Bank is from the very beginning, is pioneer of new
products including ATMs, Mobile Banking and Online banking as well but as they developed the new
systems and products in order to satisfy the customers want they didn’t get their staff trained in relation
with those innovations. Muslim commercial bank having two staff colleges one in Lahore and One in
Karachi but both make you aware of the systems and procedures but are not training or can say
emphasizing on these innovated products. This problem seems to be quiet minor but result in major
destruction because it takes a lot of time to make employees aware of these systems and when they don’t
know about these systems they wont be able to help their customer out and when they wont be able to do
so means they are no more going through their mission.

ONLINE BANKING

This problem is related to the previous problem as well because when the staff is not adequately
trained then how can they satisfy their customer’s needs, which is the basic theme or mission of Muslim
Commercial Bank. When Muslim Commercial bank started their online banking, there were only one or
two banks (foreign Banks) doing this practice because of having a larger network as compared to all other
domestic banks Muslim Commercial Bank started doing this practice but not successful in it because of
the above two problems.

~ 20 ~
OTHERS
A lot of productive time is wasted by the staff in unproductive pursuits and tea and launch breaks
are got voluntarily extended and the time spent in corridors, depends on the staff will. This tendency of
late must be eliminated which reflect adversely on the image of the institution and has posed a serious
problem.

No proper allocation of duties, suitable person for suitable job. Distribution of work is not on
equity basis, work has not been allocated properly some workers have to work hard in late hours without
any extra reward. So I suggest that steps should be taken to allocate the work properly. No periodic
increase on salaries of employees.

OVERALL SUGGESTIONS FOR IMPROVEMENT (GENERAL)

From the quantum of the profit and its financial data it can easily judged that after privatization
Muslim Commercial Bank is performing well. Its deposits are growing day-by-day and so is profitability.
The controlling body is responsible for the productive performance of the bank.

Following are my observation and suggestion to improve the efficiency for the development of
the economy.

- Introduce Various Profitable Investment Schemes

A big portion of the home remittance is sent by Pakistan working capital through Muslim
Commercial Bank Limited. As we know a big portion of this amount is wasted purchasing of luxuries.
The people motivated to save money by offering the deposit through various investment schemes. The
rate of profit should increase 1% or 2% than the other banks and it would be profitable step for bank.

- Training Staff

Staff turnover particularly of trained staff result in financial and other losses. The amount spent
by the bank on employment, induction and training of an outgoing officer constitutes to beat till another
officer should ready prove his work. The exodus of bank officer in the past has worsened the situation.

- Change The Nature Of Work

Most of the bank employees are sticking to one seat only with the result that they become master of
one particular job and loose their grip on other banking operation. In my opinion all the employees should
have regular job experience all out-look towards banking. The promotion policy should be adjusted.
- Refresher Courses

Refresher courses for the staff are most important in any international organization. All the employees
should have these courses according to their requirement. Foreign experts can also be called for this
purpose.

~ 21 ~
 - Special Training In Abroad

Every year some of the employees should be sent for training to other countries and employees
from other branches should be brought here. Some more reading material should be provided the purpose
should be to educate the employees with the advance studies in their field. The employees should be
provided the opportunities to attend and participate in seminars and lectures on banking.

- Incentive To Employees

Bank should give some more incentive to its employees in order to remove the conflict between
lower and higher officers and should try to improve the working condition of the bank. Such system
should be designed that every employee who has some problems with his officers can communicate it to
the higher management and some steps must be taken to improve that.

- Computer System

Though Muslim Commercial Bank installed computer yet the system has not totally shifted on
computer. Manual procedure is still there hence computer facility is not fully availed. It should be fully
availed and system should be fully computerized.

- Others

The period of internship should be divided into the number of department of the Muslim
Commercial Bank Ltd. The internee should be given timetable mentioning the number of days he has to
work at different places in the bank. On the 1st 4 day in each department internee should be given a
lecture by the officer of the department concerned about working of the department.

A lot of productive time is wasted by the staff in unproductive pursuits and tea and lunch breaks are got
voluntarily extended and the time spent in corridors, courtyards, depends on the staff will. This tendency
of late must be eliminated which reflect adversely on the image of the institution and has posed a serious
problem.

Distribution of work is not on equity basis, work has not been allocated properly some workers
have to work hard and have to work in late hours without any extra reward. So I suggest that steps should
be taken to allocate the work properly.

- Reward and Punishment

It is human nature one goes behind reward and incentives while and try to avoid from
punishment. Likewise in commercial institution like bank this system be introduced with full force means
active smart, educated skilled, self spoken and well versed staff personal, should be reward and
appreciates, while on the other hand lazy, lethargic, heared, rough dealers and ill mannered must be
warned penalized and punished. But this all should be on merit and considering the policy of honesty is
the best policy and mot due to some personal liking, disliking prejudice and patrimonial. It is therefore

~ 22 ~
suggest certain schemes and checks may be introduced in banks to increase efficiency through reward and
punishment system.

- Survival Of The Fittest

It is not nearly a sentence or idiom right man for the right job according to his qualification to his
qualification, profession skills and experience with the job specification must be considered while posting
and placing the employees.

It should not be like that a person who may be a very good worker but possessing lack of
managerial capabilities should be posted as manager. But as second place in command or some heavy
working department wished persons together with managerial qualities and manners in the same fashion
should be posted and placed as manager.

- Over Employed

At some places, the Muslim Commercial Bank Limited is over-employed, which is causing in
expenditure. I think that the best way out for this problem is to open new branches in remote areas and
encourages the employees to work for creating the habit of saving in the people.

- Customer Problems

People have to wait for re-cashing their cheques for about 10 to 12 minutes, which is not good for the
reputation of bank. This delay is due to manual work. Therefore I suggest that computers and other
electronic machine should be installed in the bank so that time could be saved.

BIBLOGRAPHY
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

www.mcb.com.pk

Discussions with employees of MCB Bank.

General Observation.

Discussions with Customers of MCB Bank.
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ABOUT INTERNEE
INTERNEE:
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
MUHAMMAD MUNEEB KHOSO
M Sc ECONOMICS (2006-2008)
QUAID
QUAID-E-AZAM UNIVERSITY ISLAMABAD
CELL# 0334
0334-2900211
MAIL:msc_muneeb@yahoo.com
E-MAIL:
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