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Muslim Commercial Bank Ltd Pakistan (GT Road Gujrat)

Prepared by
Anam Sajjad
ID No:12109009
Email: 12109009@gmail.com
Department of Business Administration
(GBS) MSc Accounting and Finance
GIFT University Gujranwala Pakistan







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Submitted to
Sir Naveed Mughal
Department of Business Administration
GIFT University Gujranwala Pakistan






August 24, 2014




PAKISTAN








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TABLE OF CONTENT

SERIAL
NO
TOPIC PAGE NO

TITLE PAGE
1,2
ACKNOWEDGEMENT 3
1 INTRODUCTION OF ORGANIZATION 4
1.1 Privatization Phase Development Phase 4,5
1.2 Nationalization Phase 5
1.3 Privatization Phase 6
1.4 Mission Statement 6
1.5 Core Value 6
2 OVERVEIW OF THE ORGANIZATION 7
3 NATURE OF ORGANIZATION 13
4 BUSINESS VOLUME 15
5 NO OF EMPLOYESS 16
6 PRODUCT LINE 18
6.1 MCB ATM card
6.2 Mobile Banking
6.3 Call Center
6.4 Bill Payment
6.5 Maal-a-Maal Scheme
6.6 Profit and Loss acoount
6.7 Saving 365 account
6.8 Capital growth Certificate scheme
6.9 Fund management
6.10 Khuskhali bachat
6.11 Khanum Bachat Scheme
6.12 `Term deposite
6.13 Call Deposits
6.14 Loans
6.15 MCB piyara Ghar
6.16 MCB car 4 u
6.17 RTC
6.18 Consultancy Service
6. 19 self Support
6.20 Night Banking Scheme
6.21 Bill Payment
6.22 Fax Press
6.23 MCB Lockers
7 ORGANIZATIONAL STRUCTURE 31
8 STRUCTURE OF MCB 32

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9 BUSINESS STRATEGY 34
10 COMPETITORS 35
11 HRM POLICIES 36
12 FUTURE PROSPECT 37
13 BRANCH INFORMATION 38
14 WEAKNESS OF BRANCHES 39
15 FUNCTIONS AND OPERATIONS 40
16 DUTIES AS INTERNEE 54
17 CRITICAL ANALYSIS 62
18 PROBLEM ENCOUNTER 63
19 IMPACT OF INTERNSHIP ON CREER 64
20 CONCLUSION AND RECOMMENDATION

68
21 ORIGIN OF REPORT 72
21.1 Sources of data
21.2 Objective of report
21.3 Methodology
21.4 Limitation of study














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ACKNOWEDGEMENT
At the very beginning, I would like to express my deepest gratitude to the Almighty Allah for
giving me the ability and the strength to finish the task successfully within the scheduled time.
This report Corporate internship at Muslim Commercial Bank Limited, Pakistan has
been prepared to fulfill the requirement of MSc Accounting and finance degree. I am very much
fortunate that I have received sincere guidance, supervision and co-operation from various
persons.
I would like to express my heartiest gratitude to my supervisor, Mr. Naveed Mughal , Professor
at GIFT University , Department of Business Administration, for his continuous guidance,
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encouragement, and patience, and for giving me the opportunity to do this work. His valuable
suggestions and strict guidance made it possible to prepare a well-organized report.
I am also indebted to Mr. BM Adnan , Mr. OM Arsalan, Mr.Atif Khan, Miss Shakeela and
Mr.Qasir and all staff of MCB( Limited) who kindly spared for me much of their precious time
in giving me support and information. During the internship I was treated so cordially by the
MCB( Limited) officials and staffs that I feel the office like my second home.
Finally, my deepest gratitude and love to my parents for their support, encouragement, and
endless love.
Anam Sajjad
12109009




1-Introduction of the organization
MCB Bank is one of the leading banks of Pakistan with a deposit base of about Rs. 280 billion
and total assets of around Rs.300 billion. Incorporated in 1947, MCB soon earned the reputation
of a solid and conventional financial institution managed by expatriate executives. In 1974, MCB
was nationalized along with all other private sector banks. This led to deterioration in the quality
of the Banks loan portfolio and service quality. Eventually, MCB was privatized 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
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2006, has strategic foreign partnership with May bank of Malaysia which holds 20% shares in
MCB through its wholly owned subsidiary May bank 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 1,150 branches and over
690 ATMs across Pakistan with a customer base of 4.96 million (approximately) 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 and managing its non-performing loans via improved risk management
processes.
1.1 Privatization Phase Development Phase
MCB Bank Limited was incorporated by the Adamjee Group on July 9, 1947, under the Indian
Companies Act, VII of 1913 as a limited company. The bank was established with a view to
provide banking facilities to the business community of the South Asia. After the partition of the
Indo-Pak subcontinent, the bank moved to Dhaka (then the capital of former East Pakistan) 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 64 years legacy
of trust of its customers and the citizens of Pakistan. MCB Bank is not an overnight success
story. It started with a share capital of Rs 30 million which is divided into 3 million ordinary
shares of Rs 10 each.
1.2 Nationalization Phase
The 1960s decade is stated as the golden era in Pakistans economic and financial development.
The banking sector also registered noticeable growth during that period and lent a strong helping
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hand to the government to achieve rapid economic growth of the country. But in early 1970s this
scenario changed altogether.
The separation of East Pakistan (now Bangladesh) and instruction of the government led by
Zulfiqar Ali Bhutto were the most significant events of early 70s having far reaching effects on
the banking system. In the wake of rapidly changing conditions of the country, the government
decided to nationalize all the commercial banks so that the nation as a whole can benefit from a
better use of resources. Consequently, the Muslim Commercial Bank was nationalized under the
Banks (Nationalization) Act, 1974 promulgated on January 1, 1974. In the wake of rapidly
changing conditions of the country, the government decided to nationalize all the commercial
banks so that the nation as a whole can benefit from a better use of resources. Consequently, the
MCB Bank was nationalized under the Banks (Nationalization) Act, 1974 promulgated on
January 1, 1974. In the banking sector, the then government decided to retain only five major
banks by merging all the smaller banks with the large ones. As a result of this policy, the Premier
Bank was merged into Muslim Commercial Bank in 1974.
1.3 Privatization Phase
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. The banks after nationalization came under
political and bureaucratic control and deviated from normal banking practices. Some of their
senior executives were tempted to take care of a culture of obliging big businessmen, feudal and
political influential. They sacrificed their personal integrity and interest of banking sector for
gaining promotion and accumulating personal wealth. That is how banking sector started losing
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its upright and professional institutional image from mid-80s and its downward slide started
which touched new low during 1990s.
1.4 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 in us with confidence.
1.5 Core Values
These are the standards and principles which determine our behavior and how we interact with
our customers and each other:
a-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.
b- Respect
We respect our customers 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.
c-Excellence
We take personal responsibility for our role as leaders in the pursuit of excellence. We are a
performance driven, result oriented organization where merit is the only criterion for reward.
d-Customer Centricity
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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.
e- 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.
2-OVERVIEW OF THE ORGANIZATION
2.1History of MCB
MCB Bank Limited formerly known as Muslim Commercial Bank Limited was incorporated
by the Adamjee Group on July 9, 1947, under the Indian Companies Act, VII of 1913 as a
limited company. The bank was established with a view to provide banking facilities to the
business community of the South Asia. The bank was nationalized in 1974 during the
government of Zulfikar Ali Bhutto. This was the first bank to be privatized in 1991 and the bank
was purchased by a consortium of Pakistani corporate groups led by Nishat Group. As of June
2008, the Nishat Group owns a majority stake in the bank. The president of the bank is Mr. Atif
Bajwa (previously with Citi Bank).
Founded in 1948, 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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Mian Mohammad Mansha is the Chairman of the group (and also MCB) and has played
instrumental role in its success. In recognition of Mr. Manshas contribution, the Government of
Pakistan has conferred him with "Sitara-e-Imtiaz", one of the most prestigious civil awards of the
country.
a-Profitability
MCB is Pakistans fourth largest bank by assets having an asset base of US$ 5.9 billion, and the
largest by market capitalization having a market capitalization of US$ 1.8 billion. The Bank has
a customer base of approximately 4 million and a nationwide distribution network of 1,081
branches, including 8 Islamic banking branches, and over 300 ATMs, in a market with a
population of over160 million.
In 2009, MCB reported a profit after tax of PKR 15.5 billion (appx.US$183 million) and
generated a return on average equity of 27.35% and a return on assets of 3.25%. The Banks
asset quality is strong with a gross NPL ratio of 8.62%.
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 and managing its non-performing loans via improved risk
management processes.
MCB has 1081 branches (as of 31st December, 2009) including local branches, and business
establishments in SriLanka and Bahrain including newly established Rep.Office in Dubai, UAE.
The Bank has also formed a private company in Hong Kong (fully owned subsidiary of MCB) in
partnership with Standard Chartered Bank, handling trade transactions of select countries in the
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Asia-Pacific region. MCB has been successful in turning around its operations since its
privatization and is moving forward to set high performance standards with the continuous
support of its customers and leadership in banking technology. To further strengthen its financial
services base, MCB has also incorporated an Asset Management Company in the year 2005
known as MCB Asset Management Company. MCB has also incorporated a leasing company in
Azerbaijan in 2009.
Fully Owned Subsidiaries of MCB are: Muslim Commercial Financial Services (Private)
Limited MNET Services (Private) Limited MCB Trade Services Limited MCB Asset
Management Company Limited MCB leasing (Closed Joint Stock Company) The Bank has
achieved this success, especially in the last few years, through consolidating corporate banking
operations, strengthening retail banking, launching diversified and innovative products, giving
more focus to consumer financing and investing in IT.
b-Business Strategy
The business strategy of MCB is to provide financial solutions to major segments of its customer
base, namely retail and corporate. Separate business groups have been set up to ensure a more
focused approach in satisfying the diversified customer segments. The Bank has also established
an Islamic Banking unit to offer Shariah compliant products and services, with dedicated Islamic
banking branches in six cities. The plan for future is to further realize the capacity of Islamic
Financial Systems and to bring Shariah compliant network parallel to current retail network of
traditional banking.
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Wholesale Banking Group caters to the top tier local and multinational companies. As a result of
organizational restructuring, including reinvigorating Investment Banking and beefing up
relationship teams, the Group is in line with the industrys best practices. MCB has closed some
large deals and is currently working on a number of large transactions including advisory
business. It is a strong competitor in cash management and structured financing activities.
Retail Banking Group focuses on trading and middle market segment primarily for building risk
assets and trade related business. MCB caters to their needs of financing foreign and local trade,
funds transfer and other seasonal requirements. The Bank has renovated a large number of
branches and staff has been trained for meeting the requirements of SMEs and other retail
customers. A separate SME Financing Division has been set up to provide customized financing
solutions to this very important segment of the economy. The Group also focuses on the
development of innovative consumer asset products for satisfying the personal needs of the
customers. MCB has a significant share of consumer financing business with its House and Car
Financing schemes. The recently launched running financing facility against the mortgage of
property is also expected to go a long way in increasing the quality consumer credit portfolio of
the bank. With the experience gained in the past few years, the Bank is fast progressing towards
becoming the leading bank in consumer business.
c-Recognition at Home & Abroad
MCB at home is recognized as a successful model of privatization. It has completed almost
nineteen successful years of privatization in 2010 and its growth and stability is a case study for
prospective government institutions waiting to be privatized.
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The consistency in growth and the resilience MCB has shown during the past few years,
especially at uncertain economic times is by all means outstanding. The acknowledgements do
not end at home. MCB Bank Limited received Euromoney Award for Excellence seven times in
the last eight years, which include Best Bank in Asia in 2008; four times The Best Bank in
Pakistan award and one time The Best Domestic Bank award besides being declared the The
Best Domestic Bank in Pakistan by Asia Money for the last two years. MCB Bank also received
the The Strongest Bank 2010 award by The Asian Banker for being Pakistans best-performing
financial institution in 2010. President and CEO MCB Bank, Atif Bajwa, has been awarded The
Qatar Financial Centre Asian Banker Leadership Achievement Award 2010.
d-MCB & Maybank
In 2005, the management of the bank abbreviated its name from Muslim Commercial Bank
Limited to MCB Bank Limited to explore international markets; they were facing resistance due
to the word Muslim especially from Western Countries to avail license. In 2008 the head office
of MCB was shifted from Karachi to Lahore in a newly constructed building, namely MCB
House located at Sharea Ghous-ul-Azam, commonly known as Jail Road.
The MCB Tower in Karachi serves as the MCB's headquarters, and is also the tallest building in
Pakistan. MCB, advised by Merrill Lynch, became the fourth Pakistani Company (the other three
being Hubco, PTCL and Chakwal cement - they all have been delisted) to list on the London
Stock Exchange when it raised US$150 million global depositary receipts.
In May 2008 Malaysian bank, Maybank and MCB signed an agreement, whereby Maybank
acquired 20% of the ordinary shares in MCB from Nishat Group. The acquisition is in-line with
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Maybanks strategy, as Malaysias financial services leader in the region, to build its presence in
key growth markets across the region. It also paves the way for MCB, one of Pakistans premier
financial services groups, to engage Maybank as its exclusive foreign commercial bank strategic
partner.
Maybank initially acquired from Nishat Group 94,241,527 ordinary shares in MCB, representing
a 15% stake in the Bank, for a cash price of PKR470 per share. The total consideration paid was
approximately US$686 million. The purchase price represented an 11.4% premium to MCBs
closing share price of PKR 422 on May 2, 2008, and a premium of 12.9% to the average closing
share price for MCB over the 30 trading days immediately preceding the date of this
announcement.
Based on MCBs December 31, 2007 audited book value, the purchase price represents an
implied price to book value multiple of 5.13x, a price to 2007 earnings multiple of 18.0x and a
price to 2008 earnings multiple of 15.2x. In July 2008 Maybank exercised its right to increase its
stake to 20%.
The stake in MCB allows Maybank the right to appoint two Directors to represent its interest on
the Board of MCB. One of these Directors was to be appointed immediately and the second
Director will be appointed upon completion of the term of the existing Board, scheduled to be on
March 27, 2009.
As part of the transaction, Maybank and MCB are also expected to enter into a business
cooperation arrangement which will include, among others, Islamic banking, retail banking,
credit cards, asset management and SME banking. Leveraging Maybanks leadership and
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experience in these segments coupled with MCBs brand and broad distribution network,
Maybank and MCB believe that significant revenue synergies can be attained. Both Maybank
and MCB are also expected to benefit from increased business ties and trade flows between
Pakistan and Malaysia
3-NATURE OF THE ORGANIZATION
MCB where I completed my internship comes in banking sector. Bank is an institution
which deals in money and credit. Banks accepts deposits from the common man and
grants loans and advances to those who are in requirement of those finances for various
purposes. Banking and finance activities are thought as the life blood of the national
economy.
Banks and Scope of Banking
A bank is and intermediate party who takes the funds from those who have it and
give it to those who need it and earn its own profit.
Types of Banks
In a broad view bank has got two basic categories.
Commercial Bank
Central Bank
Commercial Bank
Usually the term bank is used for commercial banks. But, the word bank can also be used to refer
to savings institutions, savings and loan associations, and building and loan associations. A
commercial bank has the authority to receive demand deposits (payable on order) and time
deposits (payable on a specific date), lend money, provide services for fiduciary funds, issue
letters of credit, and accept and pay drafts. These banks not only serves their depositors by
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providing various services but also offers different types of loans such as installment loans,
commercial long-term loans, and credit cards.
Central Bank
The function of central bank is to manage all the commercial banks in the country and it struggle
for the economic development. The issuance of notes is one major responsibility of central bank.
Activities of central bank are not aimed at earning profit.
The Importance of Banking
Banking sector has now become an essential part of our economic system as modern trade and
commerce would almost be impossible without the availability of suitable banking services.
Banking promotes saving habits among people. All manner of people, from the ordinary laborers
and workers to the rich land owners and businessmen, can keep their money safely in banks.
Banking promotes investment activities. Banks easily invest the money they receive from people
in industry, agriculture and trade. A bank has two options for investment, first is to invest it
directly or advances loans to other investors.
Foreign trade is mostly carried on through banks. Whether we export or import, it is bank that
transfers money from one country to another. Bills of exchange and letters of credit are the
regular ways that the banks use to transfer money.
Although banks create no new wealth but they borrow, exchange and consume wealth efficiently
and safely, in this way playing a very useful role in the utilization of the resources of the country.
The basic role of the banks is to encourage the habit of savings among the people and to mobilize
these savings for the investment purpose. If there are no banks, then there would be
concentration of wealth in few hands and the great portion of capital of the country would remain
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idle. In the fewer developing countries rate of saving is very low and due to this, rate of
investment and rate of economic growth remains very much low.

4-Business Volume

MCB Bank Ltd.
Type Public
Traded as KSE: MCB, LSE, ISE
Industry Banking Capital Markets
Founded 1947
Headquarters Registered Office: Islamabad, Principal Office: Karachi Pakistan
Key people Mian Mohammad Mansha(Chairman)
Products Loans, credit cards, savings, consumer
banking etc.
Revenue PKR 35.782 Billion (2009)
Net income PKR 26.753 Billion (2009)
Total assets USD 6.02 Billion
Website www.mcb.com.pk
5-NO OF EMPLOYEES
ORGANIZATIONAL HERIARCHY
President
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BOARD OF DIRECTORS
Vice President
Executive Vice President
Senior vice president
Vice president
Assistant vice president
Officers grade 1,2,3
Assistants
Cashier


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Chairman Mian Muhammad Mansha
Vice-Chairman S.M.Munir
President & Chief Executive Imran Maqbool

Directors
1 Tariq Rafi
2 Shahzad Saleem
3 Sarmad Amin
4 Mian Raza Mansha
5 Aftab Ahmad Khan
6 Mian Umer Mansha
7 Dato' Seri Ismail Shahudin
8 Ahmad Alman Aslam
9 Muhammad Ali Zeb
10 Mohd Suhail Amar Suresh Bin Abdullah

Chief Financial Officer Salman Zafar Siddiqi
LEGAL ADVISORS Syed Mudassar Hussain Naqvi (Group Head Legal Affairs)



6-PRODUCT LINE
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A group of related products manufactured by a single company. For example, a cosmetic
company's makeup product line might include foundation, concealer, powder, blush, eyeliner,
eyeshadow, mascara and lipstick products that are all closely related. The same company might
also offer more than one product line. The cosmetic company might have a special product line
geared toward teenagers and another line geared toward women older than 60, in addition to its
regular product line, that can be used by women of any age.
PRODUCTS AND SERVICES
Online services
Accounts
Loans
Cards
Traveler Cheque and many more
Online Services
6.1MCB ATM Card
MCB ATM Smart Card is accepted at over 4,000 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 450 MCB ATMs in the country. MCB
offers the following two types of ATM cards
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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.
- MCB ATM Gold 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.
6.2-Mobile Banking
At the forehead technological excellence, MCB proudly introduces MCB mobile banking.
This service is available to all MCB ATM cardholders, 24 hours- 365 days.
6.3-Call Centers
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 the account and the smart card at
any point in time.
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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 the account and the smart card at any point
in time.

6.4-Bill Payments
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, Supernet, IESCO, HESCO,and Ufone.

Accounts
MCB offers following types of accounts to its customers:
SAVING ACCOUNT
Saving accounts are opened on proper introduction with sums of credit balance within certain
limit for individual (single, joint) institutions, companies, educational institutions etc. MCB has
introduced various schemes under saving a/c are following:

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Mala Maal Scheme
PLS Account
Saving 365 Account
Capital growth certificate scheme
Fund Management Scheme
Khanm Bachat Scheme
Khushali Bachat Account
Term/ Fixed Deposits


6.5-MAAL-A-MAAL SCHEME
This scheme is recently launched by the MCB after severe financial crisis of year 1998 created as
result of atomic bomb explosion, to mobilize the deposits. It is the most profitable scheme of the
bank and MCB has got Rs. 20 billion deposits through this scheme and the certificate is for Rs.
25000/-
Procedure
The procedure of Maal-a-Maal certificate is very simple. The applicant has to fill the slip of
certificate where he have to write Branch code, Applicants name, ID Card Number, Address,
Phone #, Date and tenure etc. For different tenure different profit percentages are declared as
show below:

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Tenure (Months) Rate of Return (%)
Two 06
Four 07
Eight 08
Twelve 10

These certificates are automatically renewable after maturity. Copy of ID card is attached with
certificate. Profit is calculated at the time of drawing. At register, the officer writes reference or
serial #, name of applicant, certificate #, date of issue and date of maturity. At Maal-a-Maal
certificate, the officer write date of issue, maturity date, reference #, and name of the applicant.

6.6-PROFIT & LOSS SHARING (PLS) ACCOUNT
This account was started in 1980s after the issuing of banking ordinance in 1980 by Zia
Government to develop Islamic banking in Pakistan. In this case customer would be responsible
for bearing profit as well as loss. The bank would be within its rights to make investment of
credit balances in the PLS saving accounts in any manner at its sole discretion and to make use
of the fund to the best of its judgment in the banking business under the PLS system. For
withdrawal of larger amount, 7 days notice in writing is required to be given:

Minimum balance is Rs.500/=
Below minimum balance charges will be debited
Not more than eight withdrawals in a year allowed
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More than Rs.15000/= are not allowed to draw
Seven day notice is required for withdrawal
Profit calculated on monthly basis
Profit paid on annually basis
Profit paid on lowest balance at the end
10% Withholding Tax on minimum balance
Zakat deducted on @ 2.5%



6.7-SAVING 365 ACCOUNTS
This account is newly developed of MCB and it provides flexibility of saving account to
business people. Profit on deposits will be payable on daily product basis on balance of RS.
500,000/- and above. However, if balance in the account falls below RS. 500,000/- on any day,
the product will be ignored. There will be no restriction on withdrawal from the account. Zakat
and withholding Tax is also applicable on the account opened under this scheme.

Minimum balance is Rs.500,000/=
Below minimum balance, profit calculation ignored
Profit calculated on daily basis
Profit paid on annually basis
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10% Withholding Tax on minimum balance
Zakat deducted on @ 2.5%

6.8-CAPITAL GROWTH CERTIFICATE SCHEME
Long term deposit
Profit rate as that of PLS Saving Account
Minimum amount of deposit is Rs. 10,000/=
Amount deposited double in of 5 years
No maximum limit of Deposits
10% Withholding Tax on minimum balance
Zakat deducted on @ 2.5%

6.9-FUND MANAGEMENT SCHEME

Rate of return upto 15% per annum
Offered to corporate and business community
Development of secondary market for Government Securities
10% Withholding Tax on minimum balance
No maximum limit of deposits
Zakat deducted on @ 2.5%
6.10-KHUSHALI BACHAT ACCOUNT
Saving type account
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Rate of return is 8% per annum
Profit calculated on daily basis
Profit paid on half yearly basis
Utility bills can be debited through this a/c
No charges will be debited for utility payments

6.11-KHANUM BACHAT SCHEME
Designed to support small savings of people
Depositing money for 10 years
No return until 10 year
Payments are made on monthly basis
No limit for monthly payments
After 10 year return will be on fixed rates

6.12-TERM DEPOSITS
Term deposits are fixation of certain amount of money for a specific span of time. These can be
of majorly two types i.e. short term notice deposits and long term notice deposits. Different rates
are charged for different period of times like as shown by following table. If presented before
maturity then previous period rate would be charged.

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Duration Rate Of Interest
01 month 08.1%
02 month 10.1%
03 month 11.0%
06 month 11.5%
01 year 12.5%
02 year 13.3%
03 year 14.5%
05 year 16.4%

The instrument term deposit is like a slip containing issuing bank name, a/c # to operate on
computer, deal #, customer name, reference #, date of issue, amount, rate maturity date etc.
6.13-CALL DEPOSITS
These call deposits are presented in the bidding process as guarantee or security from the bank
that this much money is deposited in the bank. These are made in the favor the party offering
contract or any other person. The bank offer no interest rate on it because these can be called at
any time. For encashment the applicant must have to cancelled the call deposit instrument from
its beneficiary. For collection the beneficiary usually send the authority letter for paying in the
shape of Demand Draft or pay order. The call deposit instrument containing the information
regarding applicant and beneficiary name, joint name a/c opened, signature cards for
encashment, reference #, amount, date of issue, authorized signature etc.
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6.14-Loans
Personal loans
The more you praise and celebrate your life, the more there is in life to celebrate. MCB
personal loan shortens the distance between your dreams and your celebration. It is fast,
flexible and affordable.

6.15-MCB Payara Ghar






MCB offers flexible and competitive home financing facility with options of home purchase,
construction and renovation.
6.16-MCB Car Cash


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Car financing and leasing at competitive rates with flexible options Car cash finances both
semi-commercial and non-commercial vehicles for personal and business use
6.17-RTC Department

This department deals in RTC. It stands for Rupees Travellers Cheques. MCB RTC has the largest share
of the total RTC Market. Over 1.5 Million satisfied customers have made MCB RTCs. These are printed
in the UK and carry a thread watermark- a feature that prevent counterfeiting.(fake)


As good as cash
The most convenient substitute for cash for all kinds of transactions(property, trade, personal
etc).
Denominations
Cheques are available in the denomination of Rs 1,000 Rs 10,000 Rs 50,000.
Easily Encashed
They can be encashed at any MCB branch.
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Easily refundable
In case of Loss Or Theft we can get the full amount back.
Exclusive Security Features
MCB RTCs cant be duplicated. Various security features both in design and materials make
counterfeiting or fraudulent alteration extremely difficult.
Valid Until Used
Validity of Cheque is indefinite. We can use them for a week, a year or more after the date of
purchase.
Tele verification System
It enables us to check the validity of cheque 24 hours a day .
Procedure
First of all RTC-10 is given to customer. It is filled and then cash is deposited to cash department
. One copy is for office and one copy is given to the customer and RTC are issued at that time.
When RTCs are sold then H.O A/C is credited by using form no RTC-20.
It has five copies:
34

A,B,C,D,E.
A= H.O(head office) copy, B= RTC Dept, C& D= Branch.
When RTCs are returned or purchased by the MCB then H.O is debited by that amount by using
form RTC-30. Summary of all RTC purchased by branch is made on form RTC-40.

6.18-Consultancy Services
In the process of privatization of public sector units, prospective buyers need professional
assistance and MCB, with its expertise, offers to them specialized service for valuation of the
market value of the industrial unit, preparing bid documents and arranging finance for the
purchase of the unit.
6.19-Self Supporting Scheme
For the benefits of genuine worker/borrowers who are poor and needy and for small entrepreneur
the bank as evolved a self supporting scheme: maximum amount of loan Rs.25000 and minimum
Rs.5000 per individual. Loan will be totally free of mark-up. Fax Press .This product was first of
its kind introduced by using modem technology of The Fax Machine. It facilitates speedy
transfer of funds within Pakistan. The service guarantees transfer of from one city to another,
within an hour.

6.20- Night Banking Service
For the convenience of the account holder, service has, especially, been introduced at busy
commercial centers. Traders and other clients can now make deposit, with case, at such centers up
to 8.00PM.
6.21-Bill Payments
35

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, Super net, IESCO,HESCO, and Ufone. So, save your
precious time by avoiding long queues and pay your bills through MCB Easy Bill Pay.
6.22-Fax Press
This product was first of its kind introduced by using modem technology of The Fax
Machine. It facilitates speedy transfer of funds within Pakistan. The service guarantees
transfer of from one city to another, within an hour.
.
6.23-MCB Lockers

The best protection for your valuables. Lockers of different capacities are available
nationwide.

7-ORGANIZATION STRUCTURE
MAIN OFFICES
REGISTERED OFFICE:
36

MCB BUILDING, F6/G6
Jinnah Avenue, Islamabad
PRINCIPAL OFFICE:
MCB TOWER
I.I. Chundrigar Road, Karachi
REGISTRAR AND SHARE REGISTRATION OFFICE:
THK Associates (pvt) Ltd.
Shares Department, ground floor Modern Motors House
Beaumont road Karachi

8-ORGANIZATIONAL STRUCTURE OF MCB
As MCB is a banking company listed in stock exchange therefore it follows all the legalities,
which are imposed by concerned statutes. Mr. Muhammad Mansha is chairman & chief
executive of the company with a team of 10 directors and 1 vice chairman to help in the business
control and strategy making for the company. A team of 10 professionals is handling operational
management of the bank. Mr.Muhammad Mansha is also the member of this team.
Recently the organizational structure was re-designed as follows:






Chairman
Mian Muhammad Mansha
37













Segments of MCB
For effective handling of branches, it has been categorized into three segments with
different people handling each category. These categories are:
Corporate Banking
Commercial Banking
Consumer Banking
Corporate Banking
These are branches which have an exposure of over Rs. 100 million. Usually includes
multinational & public sector companies.
Commercial Banking
The branches which has a credit exposure of less than Rs. 100 million but having accredit
portfolio of more than Rs. 20 million (excluding staff loans). Usually branches in large
President

Consumer Banking
Group Head

Commercial Banking
Group Head
Corporate Banking
Group Head
38

markets and commercial areas come under this category.
Consumer Banking
These are the branches which have exposure up to Rs. 20 million and these include all the
branches which are neither corporate nor commercial branches.
9-BUSINESS STRATEGY
The business strategy of MCB is to provide financial solutions to major segments of its customer
base, namely retail and corporate. Separate business groups have been set up to ensure a more
focused approach in satisfying the diversified customer segments. The Bank has also established
an Islamic Banking unit to offer Shariah compliant products and services, with dedicated Islamic
banking branches in six cities. The plan for future is to further realize the capacity of Islamic
Financial Systems and to bring Shariah compliant network parallel to current retail network of
traditional banking.
Wholesale Banking Group caters to the top tier local and multinational companies. As a result of
organizational restructuring, including reinvigorating Investment Banking and beefing up
relationship teams, the Group is in line with the industrys best practices. MCB has closed some
large deals and is currently working on a number of large transactions including advisory
business. It is a strong competitor in cash management and structured financing activities.
Retail Banking Group focuses on trading and middle market segment primarily for building risk
assets and trade related business. MCB caters to their needs of financing foreign and local trade,
funds transfer and other seasonal requirements. The Bank has renovated a large number of
branches and staff has been trained for meeting the requirements of SMEs and other retail
customers. A separate SME Financing Division has been set up to provide customized financing
39

solutions to this very important segment of the economy. The Group also focuses on the
development of innovative consumer asset products for satisfying the personal needs of the
customers. MCB has a significant share of consumer financing business with its House and Car
Financing schemes. The recently launched running financing facility against the mortgage of
property is also expected to go a long way in increasing the quality consumer credit portfolio of
the bank. With the experience gained in the past few years, the Bank is fast progressing towards
becoming the leading bank in consumer business.
10-COMPETITORS
Local private bank:
Bank al Habib limited
Bank Al_Falah limited
Askari bank
Faysal bank
Soneri bank limited
Allied bank limited
Atlas bank limited
Bolan bank limited
Indus bank limited
Union bank limited

11-HRM POLICIES
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The Human Resource Management Group of MCB is totally responsible for the overall functions
of the HR for the entire network of branches throughout the country. The group performs all the
necessary functions of from a strategic point of view and aspires to use its human potential in the
best possible way that can lead the organization towards a competitive advantage.
Role play by senior managers
Senior management is generally a team of individuals at the highest level of organizational
management who have the day-to-day responsibilities of managing a corporation. They have
higher levels of responsibility, such as a board of directors and those who own the company
shares, but they focus on managing the senior management instead of the day-to-day activities of
the business. They are sometimes referred to, within corporations, as top management, upper
management, or simply seniors .The first thing which senior management must realize from the
outset is that Total quality management is a long-term business strategy. The senior management
should start TQM implementation because they are the primary internal change agent for quality
improvement. In this situation, the senior management has two major roles; they are shaping
organizational values and establishing a managerial infrastructure to actually bring about change.
They have to prepare themselves with knowledge about the criteria of quality and put in their
mind the TQM agenda.Total quality management is the management process used to make
continuous improvement to all
Functions in organizations, the ideal continuous improvement process are the ones that begin
with and have genuine senior management involvement. On the other hand, TQM
implementation needs commitment to quality and continuously improving from all levels of
staff.
41

Process of change in Muslim Commercial bank :Muslim commercial bank after being a private
limited focus on the improvement of the services and product of the organization that Muslim
commercial bank is offering to its customer and has bought a change in the following areas.
1: Technological Change.
2: Training program.
3: Motivation of employees.
4: Benefits for employees.
5: Compensation system.
6: Appraisal system.
7: Structural change.
8:Technological change
All the MCB branches are 100% computerized and more than 19 cities in Pakistan are connected
with online service. Two well-known advancement in technology of MCB are the introduction of
MCB mobile banking and MCB ATM 24-hours cash card.MCB mobile banking is providing the
convenience of accessing account balance information and mini statement whenever want.

12-FUTURE PROSPECT OF THE FIRM
To be the leading financial services provider, partnering with our customers for a more
prosperous and secure future
42

MCB bank is a leading commercial bank of Pakistan. The year 2011 is expected to pose a more
challenging environmental than a 2010. MCB is fully geared to not only maintain its growth
pattern but would also increase its share in the industry through the introduction of a series of
electronic based products, introduction of Consumer Financing to increase volumes and risk
diversification.
MCB bank is in procedure of lunching more innovative product which will help in MCB bank
growing more. As the size of mcb is very large and it comes under the five largest banks there
are lot probabilities of growth for MCB du to its strength.
Now MCB bank open new branches
Expand there business more and more
Introduce more electronic based products
MCB focus on outstanding services
13-BRANCH INFORMATION
I did my internship in MCB Bank Limited G. T Road Branch, Gujrat some important
information about my branch is as follows:
Branch Code 1410
Branch Name G. T Road Gujrat
Address G. T Road
Contact Numbers 053-3513311
Management of the Branch
Position Name
Branch Manager Mr. Muhammad Adnan
43

Operation Manager Mr. Syed Arslan
Regional Head Mr. Shahid Raffiqe
Remittance Supervisor Mr. Atif Rubbani
Remittance Officer Ms. Kubra
Remittance Officer Ms. Sadaf
Cash Supervisor Mr. Shahzad Butt
Chief Cashier Mr. Asjad Raffiqe
Credit Officer Mr. Arfan Khalid
Office Boy Mr. Saqib
Guard Mr. Muhammad Tufail, Mr. Muhammad
Alam
SUPERVISORS
During my internship at MCB I worked under the kind supervision of the whole branch
staff including the Branch manager, Operation Manager and other bank officers.
PERIOD OF INTERNSHIP
I completed six weeks internship at MCB G. T Road Branch Gujrat.
14-WEAKNESSES OF BRANCH
1. Majority of the people are not well aware off its products.
2. All the customers are not equally treated.
3. Lack of specialized skills due to job rotation policy of the bank.
4. Mismanagement of time is another weak point the staff is normally on their seats
still 7:00PM or 8:00.
5. Political instability in country
44

6. Internal political issues




15-FUNCTIONS AND OPERATIONS

DESCRIPTION OF THE ACTIVITIES OF THE DEPARTMENTS
One main and basic purpose of banks is to provide services to the general public. Now-adays
commercial banks play a vital role in the overall development of the country and the
functions performed by these banks are changed and enhanced. MCB where I did my
internship is a Commercial bank; main activities performed by different departments of
MCB are as follows
Open Different accounts for different people
MCB offers different kind of Accounts for its customers according to their needs and
requirements and these are:
Current account
Saving account
Term account
Opening of individual account
There are a number of rules and regulations that are followed in banking , and
requirements checked before opening an account for people similarly MCB like all other
45

banks in Pakistan make sure whether the person who is going to open the account in the
bank is a desirable customer or not. After that MCB determines the integrity,
respectability, occupation and the nature of business of the perspective customers
through the introductory references which is provided at the time of account opening.
This initial investigation of the people asking for account is important to conduct carefully
because if it is not properly done may result serious consequences not only for the banker
concerned but also for other bankers and general public.
Procedure to open an account:
When a person desired to open an account in MCB, bank required some basic
information.
Following information is needed by MCB before opening an account
1. Title of Account
2. Full Name of Applicant
3. Occupation
4. Address
5. Mothers Name
6. Telephone No.
7. Currency of account
8. Nature of Business
9. Introducers Name, Address & Signatures
10. Special instruction regarding the account
11. Initial Amount of the Deposit
12. Signature of the applicant
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Issuance of cheque book
When a customer opens an account with the bank, a cheque book is provided to him for
withdrawals from account. However, the first cheque book is given to the customer after
checking all the required documents. A requisition slip is also attached with the cheque
book issued for the first time; this requisition slip is a request for the issuance of new
cheque book. This slip is completely filled and signed by the customer at the time of reissue,
the signature of the customer is verified by the bank for security purposes and new
cheque book is issued to the customer and serial numbers of the cheque are entered in
the book of the bank. Along with the signature the person is required to write his full
name and address.
Normally only one cheque book is issued at a time but customers, who need a number of
cheque books at a time can request the bank to stock as number of cheque books in their
name and to point their name on these cheque books.
The cheque books register keeps and maintained by the officer that hold the record of
cheque book inventory and cheque book issued. The account number against which the
cheque book issued to the customer and the number of leaves that the book contained
also recorded in this register. Cheque book issue registers keeps the record of the cheque
books issued to the customers.
CLEARI NG DEPARTMENT

Clearing means collection of cheques receive from our customers but drawn on other
banks.Receiving the instruments deposited by customers Posting the amount of instruments in
credit of customers account If cheque returns from the concerned bank, the customer account is
47

debited. Crossing stamp is put on the instrument and slip given to customer on receipt of the
instrument. Clearing stamp and payee account credited are put on the instrument and the
voucher. Clearing House has provided this facility. Clearing house facilitates different banks, in
one city, to get their cheques drawn upon other banks to be cleared.
Outward Clearing
When cheques, TCs and other negotiable instruments drawn upon other banks like NBP,
ABN AMRO of the same city (as Lahore) are presented in Muslim Commercial bank to
deposit them in the respective payees accounts, these instruments are lodged in outward
clearing (o/w clg) of MCB bank.
Procedure of Outward Clearing
The name of the branch appears on its face where it is drawn
It should not stale or post - dated or without date.
Amount in words and figures does not differ.
Signature of the drawer appears on the face of the instrument.
Instrument is not mutilated.
There should be no material alteration, if so, it should be properly authenticated.
If order instrument suitably indorsed and the last endorsees account being credited.
Endorsement is in accordance with the crossing if any.
The amount of the instrument is same as mentioned on the paying-in-slip and
48

counterfoil.
The title of the account on the paying-in-slip is that of payee or endorsee (with the
exception of bearer cheque).
If an instrument received other than MCB of Pakistan then special crossing stamp is
affixed across the face of the instrument. Clearing stamp is affixed on the face of the
instruments, paying-in-slip and counterfoil (The stamp is affixed in such a manner
that half appears on counterfoil and paying-in-slip). The instrument is suitably
discharged, where a bearer cheque does not require any discharge and also an
instrument in favor a bank not need be discharged.
Return Outward Clearing

Over writing

No stamp of clearing or if it is not clear

No stamp of crossing or if it is not clear
I nward Clearing

Inward clearing means cheques drawn on us and presented by other banks. In inward
clearing Branch acts as paying banker. After realization of inward clearing, banks deposits
49

are decreased as bank makes payment to other banks from the balances held by the branch.
This realization of inward clearing is also referred to as responding to the clearing. Cheques
and other negotiable instruments instruments (PO, DD, PS, CDR etc.) drawn on Muslim
bank, sent by other banks, constitute the inward clearing of MCB.
Procedure of I nward Clearing

Instruments with schedules are received from NIFT.
Amount of each instrument entered is in inward clearing register.
Instruments are detached and handed over to the deposits and other respective
department for checking and payment.
In case of any instrument is returned, return memo is prepared stating the reason of
the return.
Entry is made in cheques Return register.
Cheques return charges are recovered from the party as per charges schedule.
Checking / Return of I nstruments

Over writing
No stamp of clearing or if it is not clear
No stamp of crossing or if it is not clear
Granting loans & advances
The bank offer clean advances against promissory notes etc and the secured advances
against different types of tangible and marketable securities. The advances department
50

lends money against different securities for the commercial and personal purposes.
1. Commercial Loans
2. Personal Loans
Commercial
These loans are for business purposes. Consumer loans can be categorizes as
Running finance
It is usually given to meet the temporary requirements of the customer. This is
of two types which are as under.
Secured: In this type of commercial loans the banks permits the customer to
withdraw more than his deposits present at bank after giving the security
against the amount withdrawn.
Unsecured: Here the bank pays upon the personal security of the customer
mentioned on the customer account.
Project Finance
The advances that are provided to finance a project. A lump sum is given and repaid in
installments.
Demand finance
They are often termed as packing credit. They are given to the exporters of handicrafts,
surgical instruments at concessional rate of interest.
Agriculture finance
Advances are given to the farmers to meet the short, medium and long term production
requirements such as agricultural inputs, tube wells, livestock farming, poultry farming
51

etc. they are also given against different types of securities.
Industrial Loans
These Loans are given to industrial sector for purchase of machinery and other capital
nature goods.
Cash Finances (Commercial Loans Inward)
These types of loans are given against following:
Against locally manufactured goods.
Cash finance against Rice and Paddy
Against pledge
Against commodities
Against Trust Receipts
Procedure for Granting Commercial Loans
The commercial loans are usually given against property. The detailed procedure for
granting loans is as under.
Re-payment capacity (customer valuation)
Account turnover
Balance sheet of company (weather going good or not)
Market reputation
Credit history through SBP
Loan requirements
Then the bank has to think about security, security may be in the form of
Fixed asset
Liquid asset
52

Mostly commercial loans are given against fixed asset
Request from party
Bank take request from customer for loan, party write any amount for loan but we have
seen the repayment capacity and then give the loans.
Documentation
Then documentation starts.
.
Property Valuation
Then legal documentation started. First of all we do the property verifications.
Property verification
Property documents will show ownership of property. They are also called as title
documents.
Title deed (may not had by every property because of inheritance)
Fard outside committee limits
PT1: inside committee limits (excise and taxation issue it)
PTD(permanent transfer deed)
For places, housing schemes etc where title deed does not exist.Property which the party
wants to be mortgaged in valuates.
Legal documentation
Documents are sent to lawyer and he will send legal opinion. Lawyer will verify property
in revenue record and approve that documents are legally good. (Then processing starts)
Proposal by RHQ
Then the proposal is prepared by RHQ, it is called as Sanction advice. In this bank propose
53

customer that we can give up to this amount.
Told to party
Then the credit officer will tell the party that the bank can give up to this extent. This is
compulsory that we should tell and discuss with the party that whether it is acceptable or
Mortgage deed
Mortgage deed is a contract between the bank and the party that the property is
mortgaged with the bank against credit.
Registered mortgaged: registered with sub-registrar so that it can come to
know that properties mortgaged with bank
Equitable mortgaged: because registered mortgaged expenses are high so
remaining is equitable but in MCB in place of equitable mortgaged MODTD
(Memorandum of Deposit of Title Deed)
Implementation
On property documents it is written that property is mortgaged. Mortgaged
deed is given to the party and he will take it to the sub-registrar.
The party will then bring
Mutated fard or mutated PT1
Encumbrance certificate (EC) mortgaged deed number; date must be
mentioned otherwise it will not be valid.
Indemnity bonds (IBS)
IBs are the contracts between the bank and the party on which duty is paid to the
government. They may be of following different forms.
54

Demand promissory note: Customer agrees to buy back with mark up i.e. he
will pay the credit with return.
Letter of continuity: Party will continue it for 1 year
Letter of hypothecation: Inventory in hypothecate as security
MODTD: Memo of Deposit of Title Deed
Letter of guarantee (personal guarantee): Guarantee is given that (Principal +
markup + 210 days default markup) will be repaid.
Inventory insurance
Inventory insurance is also done, which is hypothecated to banks.
CAD (Credit Administration Department)
Then all these documents are sent to the CAD. CAD will check it and give the authority to
disburse the loans. This department exists at RHQ level
Consumer loans
These loans are offered to individual persons usually. They are also called as the Personal
Loans.
1. Here bank risk is high
2. Mark up rate is high
3. Insecure loans usually
4. Security is there but may not be materialized.
The various types of consumer loans include
1. Car Financing
2. Credit Card
3. Personal Financing
55

4. Flexi Loans
5. Demand Finance (staff) The Loan for staff can also be included in loans offered to individuals
i.e. consumer loans. Loans are offered to the staff of the
following categories.
- House Building loans against property mortgage
- Loans equivalent to monthly salary
- Loans for purchasing vehicles.
Collection of Utility Bills
MCB collects utility bills on behalf of WAPDA, Sui Gas Companies, and Pakistan
Telecommunication Corporation Limited by putting the stamp on the utility bills Paid,
Date of payment, Signature of the officer receiving the utility bills. After receiving utility bills
from people a list is made on the form which is called Bills scroll form. One copy of
the scroll is held with the bank for evidence whereas the original copy with the receipt of
the bills is sent to the billing department of the respective corporation. The bank charge
commission on the bills for collection
ATM Service
Through ATM facility customers can use the amount in their accounts at any time. An
account in MCB is necessary for ATM facility
A form is filled by customer where the basic information about the customer and
if he wants supplementary card, the details about that supplementary is given.
It is checked by the officer and sent to the head office.
Head office sends the card to the customer at the address given by the customer.
56

Pin code is held by the customer
Then customer will come to the branch take pin code and the card become active.
1st time he has to use the card in the bank timings.
Charges for this facility are taken on annual basis.
Locker facility
Lockers are provided to the customers of MCB. They are of different sizes for
example small, medium and large. Charges on lockers are on annual basis and
vary according to the size of locker.
The customer must have an account in MCB in order to open the locker.
Then he will fill the locker opening form which will be checked and signed by
the officer of the bank.
It may be opened by singly, jointly and up to three persons.
Bank will take the copy of customers ID card and now the key is given to the
customer but the master key is held by the officer and to operate the locker
firstly the master key will be required
Annual charges are debited to the customer account when they become due.
If the locker holder died the legal heirs can go to the court within 18 months. If the dont
go the court the officer sends the remainder. If they dont react the bank will open locker
in presence of lawyer after 18 months, takes his charges due and return the remaining to
the heirs.
Dealing with Cash
57

Dealing with cash is a very major operation of cash department which involves payment
of cheques presented by the customer and receipt of the cash deposited by the customer
in their accounts.
Cash Payments: Payment of cash to customer involves the following procedure
1. The cheque is presented to the cashier first, who takes care of following
precautions
a) It should not be out dated.
b) There should not be any crossing on it, if so the signature should be with cutting.
c) Two signature of the customer receiving the cheque should be in the back of the
cheque.
d) There should not be any difference between the amount and figures
e) It should not be crossed.
2. The cheque is entered in the computer by the cashier and customer account is
debited.
3. If the amount of the cheque exceed the customer balance in that account a note
regarding this will automatically appeared on the computer screen. Such entries
are immediately scratched.
4. Finally the cheque goes to the officer, who first, checks the signatures, whatever it
is according to the specimen signature card, he will also check the conditions mentioned in no.1.
If he has any doubt he will reject the transaction. Otherwise he
authenticated the transaction and sign on the cheque.
5. The cheque is finally returned to the cashier for payment.
6. If the cheque is dishonored due to any reason Rs.200 is deducted from the
58

account of the customer as a penalty for that return.
7. At the start of next day all the cheques, which are honored by the bank on
previous day, are sent to account department for permanent record.
Receipts of Cash: Receipt of cash involves the following procedures.
1. All the cash is deposited on a specific deposit slip. The depositor has to mention
specific deposit account number, name of the account holder and the amount which he wishes to
deposit in his account on this slip.
2. This slip is presented to the cashier along with the currency note, he count the
notes and stamp the slip with cash received if he is satisfied, then he enters the
slip in the computer by crediting the account.
3. Finally the transaction regarding deposit of cash is authenticated by the
responsible officer and put his signature on the slip. Now the transaction is
permanently stored in the computer.
4. At the start of next day all deposit slip of the previous day is sent to accounts
department for permanent record.
The following books are maintained in the Cash Department:
Receiving Cash Book
Paying Cash Book
Cash Balance Book
The consolidated figure of receipt and payment of cash is entered in the cash balance
book and drawn closing balance of cash.
16-DUTIES
59

DESCRIPTION OF THE DEPARTMENT
During my internship at MCB G. T Road Branch, I got an opportunity to work in the
following departments
Cash department
Remittances department
Clearing department
Advances department
Clearing Department
Types of Clearing
Outward clearing: Cheques drawn on other banks here the bank act as Collecting
Bank.
Inward clearing: Cheques drawn on us here the bank act as Paying Bank.
Types of Cheques Collected
Transfer cheques: transfer cheques are those cheques, which are collected and
paid by the same branch of bank.
Transfer delivery cheques: transfer delivery cheques are those cheques, which are
collected and paid by two different branches of the same bank situated in the
same city.
Clearing cheques: clearing cheques are those cheques, which are drawn on the
branches of the other banks located in the same city or in the same area. And
which is covered by a particular clearing house.
Collection cheques: collection cheques are those cheques, which are drawn on
60

the branches of either the same bank or of another bank, but those branches are
not in the same city or they are not the members of clearing house
Function of Clearing Department
1. First important function of clearing department is to accept transfer, transfer
deliveries and clearing cheques from the customer of the branch and to arrange for
their collection.
2. Another important function is to arrange the payment of cheque drawn on the
branch and given for collection to any other branch of MCB or any other members, or
sub-members of the local clearing house.
3. To collect amounts of cheques drawn on members, sub-members of the local
clearing house, sent for collection by MCB branches which are not represented the
local clearing house. Bank charges some commission of these facilities.
Now a days clearing is being supervised and conducted by a private company NIFT.
Remittance Department
It is a most important and interesting department. Transfer of money or equivalent to
money from one branch to another of the same bank is called remittance. Now it is
become easier and safer method for the client and banker to transfer their money from
one branch to another within the city and outside the city.
Benefits and Functional Importance
Cheap as compared to other modes of remittances available to the public i.e. money
order. Normally any amount can be remitted through banks. Important source of
earnings i.e. commission, service charges, and FED. The risk involved in physical
transportation of money is eliminated.
61

Types of Remittance
Inward remittance
Outward remittance
Inward Remittance: The branch receives the instrument directly from the customer or
from the originating branch, and is responsible to pay to part is called inward remittance.
Outward Remittance: The branch, which issue or sold the instrument to the responding
branches, called outward remittance.
Modes of Payment
1. Bankers Cheque
2. Telegraphic Transfer (TT)
Bankers Cheque
A Banker's Cheque is a Cheque where the funds are taken directly from the financial
institution rather than the individual drawer's account.
A normal cheque represents an instruction to transfer a sum of money from the drawer's
account to the payee's account. When the payee deposits the cheque into their account,
the cheque is verified as genuine. Any individual or company operating a current
account (or checking account) has authority to draw cheques against the funds stored in
that account.
By contrast, when an individual requests a banker's cheque they must immediately
transfer the amount of the draft plus any applicable fees and charges from their own
account to the bank's account. An individual without an account at the issuing bank may request
a banker's draft and pay for it in cash, subject to applicable anti-money
62

laundering law and the bank's issuing policies. Because the funds of a banker's draft have
already been transferred they are proven to be available; unless the draft is a forgery or
stolen, or the bank issuing the draft goes out of business before the draft is deposited and
cleared, the draft will be honored. Like other types of cheques, a draft must still be
cleared and so it will take several days for the funds to become available in the payee's
account.
Following three parties are involves in the pay order:
Purchaser
Issuing branch
Payee
2. Telegraphic Transfer:
Transfer of funds from one branch to another branch of the same bank or
upon other bank under special arrangements. This type of transfer is
simple
Telegraphic transfer is not negotiable
The funds are not payable to bearer
Minor cannot avail this facility
PARTIES:
Following are the parties involved
1. Applicant
2. Drawing branch
3. Drawee branch
4. Beneficiary
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Cash Department
The books that are maintained in the Cash Department are as under:
1. Receiving Cash Book
2. Paying Cash Book
3. Token Book
4. Scroll Book
5. Cash Balance Book
When cash is received in counter, it is normally entered in the Scroll Book and Receiving
Cashier Book. At the close of the day, these two 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 then token is issued to the customer. After that 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 both are balanced.
The consolidated figure of receipt and payment of cash is entered in the cash balance
book and then drawn closing balance of cash.
Opening Balance +Receipts - Payments =closing Balance
This section of general banking is very important because cash is the most liquid asset and
mostly frauds are made in this department, therefore, extra care is taken in this
department and nobody is allowed to enter or leave the area freely. Mostly, cash area is
grilled and the doors of this area are under supervision of the head of that department.
All the books maintained in Cash department are checked by an officer.
Advances Department
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Advances are one of the most important sources of earning for the banks. When a
customer borrows a fixed amount from a banker, which is repayable either in periodic
installments or in lump sum at a fixed future times, Customer has to pay mark-up
normally termed as interest on the entire amount.
MCB is also giving full attention towards its advances department and it is also obvious
from the growing portfolio of advances and from very low delinquency rate. The credit
portfolio of MCB is in a very much better shape than other financial institutions of
Pakistan and for this all credit goes to the management and the staff who are concerned
about the quantity and quality as well. This department basically deals with
Loans
Cash Credits
Overdraft
TASKS ASSIGNED TO ME
During my internship at MCB, G. T Road Branch I was assigned with different tasks such as
Opening of an account
I firstly learn about different types of accounts that MCB offers to its customers and the
requirements for opening a new account. Then after having a complete knowledge, I opened two
individual accounts and a sole proprietors account with the help of my supervisor.
Issuance of cheque book
I issued cheque book to the customers and learns that when a customer opens an account with the
bank, he is provided with the cheque book for withdrawals from account. However the first
cheque book is issued to the customer after checking all the required documents. The cheque
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book also contains a requisition slip for the issuance of the new cheque book. This requisition
slip is duly filled and signed by the customer. In case of re issuance the signature of the customer
is verified by the bank and new cheque book is issued to the customer and serial numbers of the
cheque are duly entered in the book of the bank. Person has to write his full name and address
along with the signature.
Making Entries in Clearing Register
I made entries in clearing register and record the following information in register
Name of the favoring party
Name of the bank on whom drawn
Account title
Account number
Cheque number
Amount of transaction
Issuing Deposit Slips to Customers
Worked in clearing department, received cheques from customers and issued deposit
slips to them.
Collection of Utility Bills
MCB collects utility bills on behalf of WAPDA, Sui Gas Companies, and Pakistan
Telecommunication Corporation Limited by putting the stamp on the utility bills Paid,
Date of payment, Signature of the officer receiving the utility bills. After receiving utility
bills from people a list is made on the form which is called Bills scroll form. One copy of
the scroll form is kept with the bank for evidence whereas the original copy with the
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receipt of the bills is sent to the billing department of the respective corporation. The
bank charge commission on the bills collection.
Working as Customer Service Officer
During my internship at MCB, I also worked as Customer Service Officer and provided the
people with the general information that they needed like how to open an account, how
to fill up the form etc.

17-CRITICAL ANALYSIS ON MANAGEMENT PATTERNS
First on the counter of customer service officer ,there must two officers because that officer have
to deal with the customers as well he /she have to submit the forms to Lahore (Head Office) till
12 AM ,after that account will not open next day.
There are so many people gather on this counter for filling the slips ,online transfer slips so there
must be two officers on that post.
Second ,the system hanged to mush in this branch whatever the purpose, if the customer want to
inquire about his/her balance in the account or he/she want to get his /her last months statement
.The customer got difficulty in this situation.
This will cause lose their customers from the bank .and their Goodwill is affecting from it.
The employees are not fully awared about which service is exactly deliver by which employee,
this cause again difficult for customer.
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The bank pay more attention to the specific customer not on the specifically on the middle class
businessmen.
The important reason is that this bank take charges on cash online transfer if the amount is above
RS.25000, Most of the customers argue on that but at the end just said to him/her that Madam
/sir it is the policy of the bank.
Most of the senior used that language which is not allowed in professional especially in front of
public.
There are no specific duties assign to employees ,if a person knows about the work he/she do it .

18-PROBLEM ENCOUNTERS
-This week A person came to transfer his money through cash online service ,My senior told me
that whenever the customer of online transfer came first ask for the charges which are as follow
For Cash online
200+32 and .3% charges
For Example A person want to transfer the amount of Rs.100000 so one option is that the
deduction is made in the amount which is going to transfer and another way that the customer
paid the additional charges which mean he have to pay Rs.100532
So the customer augmenting with me that why the bank is receiving that much amount I just said
that it is the bank policy but the kept on saying that the charges are very high I sent him to the
senior officer to held him.so He satisfy him in better way.
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There are different codes for every branch
One of the customer came and ask me would you tell me about the where this branch locate ,he
gave me the number /code of the branch
I went to my senior and ask that person want to know about the baranch he told me to open the
file which is on the desktop name branches name
In this way I held the customer in few minutes.
To deal with different type of people is challenge itself .Some people has different accent to
pronounciate the amount it create problem to write the amount on the cheque.
A person came to bank ,he was in a great hurry because he had flight to London that evening and
he want to activate his inactive account .But the rule is that who have inactive account must
submit his /her ID card copy and a Form which is being provided by the bank.So after some time
I just told him to give authority to his father or wife that he \she gave the signature and deposit
or withdraw the amount from his account then the problem solved.

19-HOW INTERNSHIP IMPACT MY CAREER
I did my internship at MCB G. T Road Branch, one of the leading banks of Pakistan. The
bank has completed more than 15 years, since its privatization and during this period,
MCB has performed well and has sustained growth.
It was a great experience for me to work with such a well-known and reputed bank. The
internship proves very valuable for me as it not only enhances my skills and qualifications
but also gives me experience and brings clarity in my future plans. I gained a number of
skills that will be beneficial for me in my future career some of these are
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Enhanced my confidence level
Strengthen my interpersonal and communication skills
Developed work ethics in me
Helped to improve team work and leadership skills
It gave me a lot of confidence and manners to behave in the working environment
Improved time management skills and made me punctual
It helps me to understand how to behave in different situations professionally
It made me think critically in difficult situations and act accordingly
Improved my decision making capability
After doing internship I acquired good work habits
It provided in depth knowledge of the formal functions of the banking sector.
During my internship period I got an opportunity to work in the General Banking, Cash,
Remittances, Credit and Clearing department and learned about the basic functions
performed by these departments and bank as a whole. I also come to know about banks
relationship with their customers and within branches. I come to know about
documentation requirements and record keeping by bank for different activities and
processes of the bank, especially the documentation requirement for different kinds of financing
facilities.
I was assigned with multiple tasks and responsibilities that I had completed successfully
under the guidance of my supervisors. Different responsibilities assigned to me were
1-Assigned with the responsibility to open two individual and one sole proprietors
account. I completed this task after getting complete knowledge about the
different types of accounts offered by MCB to its customers and their
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requirements.
2-Issuance of cheque book to the customers. I completed this responsibility and
issued cheque books to both the existing and the new customers.
3- Data entry in clearing registers.
4- I was asked to work as Customer Service Officer. Being a customer service officer,
provided information to the new people who are interested in becoming the
customer of MCB and listened the problems and issues of the customers of the
bank.
5-Collection of Utility Bills was another responsibility handed over to me.
6- Issuance of deposit slips
Internship provides information to the new people who are interested in becoming the
customer of MCB and listened the problems and issues of the customers of the
bank.
7- Collection of Utility Bills was another responsibility handed over to me.
8- Issuance of deposit slips
Internship provides opportunities to experiment and purse careers that match academic
and personal interest. Planning about the career is always difficult as there are many
doubts regarding different possible opportunities and it is really difficult for the students
to select the best possible place for their future job because they do not have enough
knowledge about different work settings, they do not have the experience that can
provide help to them in attaining the best possible job alternative. So in this situation
internship programs provides great help and gave the students and the people who are
looking for jobs for the first time, the opportunity to select the best field in which they
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can show their full potential, can better utilize their skills and knowledge, and most
importantly that matches and suits to their temperament .
I am always interested to get a job in banking sector. Six weeks internship program
helped me to critically analyze the banking sector as a whole and I can openly say that
banking sector provides conducive environment for career growth. After completing my
education I will look forward to join a well reputed bank like MCB because I feel that the
banking sector is where I can better utilize my academic and personal interests.
Another important aspect of internship was that, it provided the opportunities to practice
and apply our theoretical class room knowledge into real work settings. During my study I
studied different subjects such as money and banking, economics and Public Relation and
I observed that these subjects are closely related to the banking sector. In the subject of
Money and Banking I studied about banking sector, how the overall banking operations
are conducted, various types of banks, opening and operations of different accounts and
different types of cheques, procedure to fill those cheques, parties to the cheque and
other similar topics in detail but I got only the theoretical knowledge. During my
internship, I practically applied all my concepts in the real work settings. I opened
different accounts, fill up and guide customers about how they can fill a cheque and
personally observed the different operations of banking that I had studied theoretically in
my class room.
Internship also helped me to practically learn and observe about the motivation,
leadership and team work concepts that I studied in my class room. I learned that how
manager influence and motivate the employees of the branch. I studied Public
Relationing as s subject that is really important in this field. The first objective of every
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bank is to build the strong customer relationship that is possible only by having good
relationship with them, by knowing their needs and then offering them accordingly.
Choosing MCB for my internship was really a good decision and it created a big worth for
me. It was a very rewarding experience to work in such a disciplined organization with
highly experienced and cooperative staff. I really gained very beneficial knowledge about
banking during my 6 weeks internship and also enjoyed working with experienced and
Intelligent staff.

20-CONCLUDING REMARKS
The Bank has now completed more than 15 years, since its privatization and it is, indeed,
gratifying to note that during this period, MCB has performed well and has sustained its
growth in all the major sectors. The well deserved credit, for this good performance and
progress, must surely go to the Banks management, its Directors and, in no small
measure, to the entire MCB team for its dedication, concerted efforts and excellent team
spirit.
MCB has been a pioneer among the banks in Pakistan, particularly in introducing a
number of innovative banking products and services. For the first time in the history of
Pakistan, these multifarious products mostly in the shape of saving schemes have been
introduced by MCB with brand names. This has set the trend and many other banks, both
local and foreign, have since followed in MCBs footsteps, by launching new products and
services, on similar lines.
MCB has implemented a SYMBOL system which promises the efficiency and the growth of
the bank in the long run. MIS and computerization of branches all over the country has
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enhanced the overall performance of the bank. The bank provides a flexible environment
for career growth and development. The bank pays a very low rate of interest on deposits
which in unattractive for its customers. Formalities and procedures involved in mortgage
of properties offered as collateral to the bank are very lengthy.
Banking is now become an important part of our economic system. I observed that
although banks create no new wealth but they borrow exchange and consume wealth. In
this way, banks become effective partners in the process of economic development.
Modern banks are very helpful for the utilization of the scarce resources of the country. In
the broader sense we can say without the availability of the suitable banking services
modern trade and commerce would almost be impossible
Recommendations
From the Quantum of the profit and its financial data it can be easily judged that after
privatization, MCB BANK is performing well. Its deposits are growing day by day and so its
profitability. The controlling body of the bank is responsible for the productive
performance of the Bank.
Following are my observation and suggestion to improve the efficiency of the bank for the
development of the economy.
1. A big portion of the home remittance is sent by Pakistan working capital through
MCB. A big portion of this amount is normally wasted purchasing of luxuries.
However the people motivated to save money by offering the deposit through
various investment schemes. The rate of profit should increase 1% or 2% than other banks and it
would really be a profitable step for bank.
2. There is a criticism on the banking management that the salaries of the employees
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are decreasing in every succeeding year. And I think this will shake the confidence
and working habit of the employees.
3. There is another recommendation about the bank that there is no proper timing
of the bank and there is made an unnecessary delay in the banking transactions,
which might not be a good sign for the bank from future prosperity point of view.
4. Turnover of the staff, especially the turnover of trained staff results in financial
and other loss for the bank. The amount spent by the bank on employment,
induction and training of outgoing officers constitutes to beat till another officer
should ready prove this work.
5. I observed that most of the bank employees, are sticking to one seat only with the result that
they become master of one particular job and lose their grip on other
banking operation. In my opinion all the employees should have regular job
experience about all out-look towards banking. The promotion policy should be adjusted.
6. 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.
7. 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 employee should be provided the
opportunities to attend and participate in seminars and lectures on banking.
8. 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
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condition of the bank.
9. As 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.
10. Recruitments should be strictly on merit basis and induction should be after
proper and extensive training.
11. Old and lazy staff should be replaced by young, qualified and energetic staff.
12. Foreign branches should be opened in order to capture the international market
and to earn international repute for the bank.
13. Working environment, equipment, furniture and staff dressing should be
according to the modern banking style.
14. Proper attention should be paid to upgrade customer services.
15. Banks different schemes must be conveyed to the targeted customers so that to
have a have a reasonable share in market.
16. Bank should help the society by providing interest free loans to the Talented
Students.
17. Mismanagement of resources must be avoided as much as possible as it decreases
profit but also discourage hard worker and honest employees.
18. Bank should adopt the global organizational banking structure to meet the
international standards of banking sector

Conclusion
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After completing my internship in MCB and having the experience to work in the different
department of bank I have concluded that MCB is really a big organization which is
providing wide range of services to a large number of customers. The financial conditions
are also great and it has a great market share.
The environment should be changed, it should be more welcoming and appropriate space
for the customers should be provided during the rush hours. One thing I really observed
for a lot of time during my internship that the customers have a great brand loyalty for
MCB. This is really a big strength of MCB.
Choosing MCB for my internship was really a good decision and it created a big worth for
me. It was a very rewarding experience to work in such a disciplined organization with
highly experienced and cooperative staff. I really gained very beneficial knowledge about
banking during my 6 weeks internship and also enjoyed working with experienced and
intelligent staff.
21-Origin of the Report
The purpose of this report is to focus practical Experiences of my day-to-day work as a part of
my internship period.
Methodology what I have applied to prepare this report
Observation
Projection Techniques
Depth Interviews
Interaction with the Customers and Colleagues
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21.1-Sources of Data
Doing practical work in different desks
Study of old files/documents/formats
Personal investigation.
My colleagues and Customers
Collection of Data from different statements and abstracts.
Internet, Brochures, annual report etc.


21.2-Objective of the Report
The main objective of this report is to fulfill partial requirements of M.S.C degree program. In
order to be able to obtain the M.S.C degree program from GIFT University of Gujranwala, every
student is required to do internship program in a well-reputed organization for 1 months and 15
days , after completing all the required courses. After the internship period, each student or intern
has to submit a report about the respective organization. I have completed my internship program
in Muslim Commercial Bank Ltd. And this report is about this bank.
As one of the main objectives of internship is to gather job experience, I have tried to put some
of the experiences that I have learnt from my internship in this report.
The specific objectives of this report are

To present an overview of Muslim Commercial Bank Ltd.
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To appraise the performance of Muslim Commercial Bank Ltd.
To apprise financial performance of Muslim Commercial Bank Ltd.
To identify the problems of Muslim Commercial Bank Ltd.
To recommend/ remedial measures of the development of Muslim Commercial bank Ltd.

21.3-Methodology of the study:

Both the Secondary and Primary Sources have been used to collect data for this purpose
Collection of Secondary Data:
Data regarding the operations of Muslim Commercial Bank Ltd. and analysis of financial
statement were collected from secondary sources like annual report, Brochures, Manuals
and Publications of Muslim Commercial bank Ltd.
Collection of Primary Data:
Many of the data and information were collected from my practical experience and
queries from the executives while doing our assignment period at National Bank Ltd.
Information and data regarding products & services, interest rates & charges, banking
operations, organization structure, management personnel, and policies were collected
from these sources

21.4-Limitations of the report:

To prepare the internship I encountered some limitations. The limitations are given below-
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Limitation of time was a major constraint in making a complete study, due to
time limitation. The duration was only six weeks. It was too limited to cover
all the banking area. Many aspects could not be discussed in the present study.
Lack of comprehension of the respondents was the major problem that created
a lot of confusion regarding verification of conceptual question.
Confidentiality of data was another important barrier that was faced during the
process of this study.
As being an intern, it also created some problems as I was unable to acquire
hands-on-experience in all the departments, due to the banks policy of
maintaining secrecy and also because I did not get the opportunity in all the
departments.











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