Zeeshan Internship Report

INTERNSHIP REPORT ON MCB BANK LIMITED
MCB Bank Ltd.
Mall Road Branch, Lahore.
An internship report submitted in partial satisfaction
Of the requirement for the degree of
MASTERS OF BUSINESS ADMINISTRATION
In
Marketing
By
M.Zeeshan Ishfaq
July 2010
Submitted to: Placement Coordinator
Nasir Mahmood
Institute of Management Sciences Lahore 1

Dedication & Acknowledgements
I dedicate this internship report to my parents. Because of their prayers and

encouragement I have been able to complete this report.
Praise is to Allah, the most Gracious and Merciful, who blessed me with the knowledge
and wisdom and enabled me to overcome this task. Heartiest gratitude to my parents
without their continuous encouragement and love I could not have accomplished this
task.
I am very grateful to my advisor Miss Hina and Mr. Incharge placement centre for their
continuous help, support and time during the entire course of my internship. I am also
very grateful to all the staff members at MCB Mall road Branch, Lahore especially Mr.
Junaid Butt , Mr. Abdul Sami and Mr. Imran for their guidance and encouragement

Table of Contents Page #
Definition of Bank 4
Pakistan Banking Sector 5-9

DEFINITION OF BANK
The term 'bank' is being used for a long time, yet it has no precise definition. The basic
reason is that the commercial banks perform not just one but many types of functions.
The term bank has been defined differently by different authors. Some are as follows:
According to Crowther,
"Bank is a dealer in debts—his own and of other people."
According to G.W. Gilbert,
"A banker is a dealer in capital or more properly a dealer in money. He is an intermediate

party between the borrower and the lender. He borrows from one party and lends to
another."
According To Bamkinh Companies Ordinance
U/s3 (B) of Banking Companies Ordinance 1962 "Banker means person transacting the
business of accepting for the purpose of lending or investment, of deposits of money
from the public, repayable on demand or otherwise and withdraw able by cheque, draft,
order or otherwise and includes any Post Office Savings Bank."

PAKISTAN BANKING SECTOR
• Nationalized Commercial Banks

• Privatized Banks
• Specialized banks
• Private banks
• Foreign banks
• Other financial Institutions
NATIONALIZED SCHEDULE BANKS
• First Women Bank Ltd.

• National Bank of Pakistan
• Habib Bank Ltd.
DE-NATIONALIZED SCHEDULE BANKS
• Allied Bank of Pakistan Limited

• MCB Bank Limited
• United Bank Ltd.

SPECIALIZED BANKS
• Zarai Taraqiti Bank of Pakistan (ADBP)

• Industrial Development Bank of Pakistan(IDBP)
• Punjab Provincial Cooperative Bank
• Federal bank for Cooperatives
PRIVATE SCHEDULE BANKS
• Askari Commercial Bank Ltd.

• Bank Alfalah Ltd.
• Bank Al-Habib Ltd.
• Bolan Bank Ltd.
• Faysal Bank Ltd.
• Habib Credit & Exchange Bank
• Indus Bank Ltd.
• Metropolitan Bank Ltd.
• Platinum Bank Ltd.
• Prime Commercial Bank Ltd.
• Prudential Bank Ltd.
• Soneri Bank Ltd.
• The Bank of Khyber
• The Bank of Punjab
• Union Bank Ltd.

FOREIGN BANKS
• ABN AMRO Bank N.V.

• Albaraka Islamic Bank BSC (EC)
• American Express Bank Ltd.
• ANZ Grindlays Bank Ltd.
• Bank of America (NT & SA)
• Bank of Tokyo Mitsubishi Ltd.
• Bank of Ceylon
• Banque Indosuez
• Citibank N.A.
• Credit Agricole A.G.
• Deutche Bank A.G.
• Doha Bank Ltd.
• Emirates bank International Ltd. P.J.S.C.
• Habib Bank A.G. Zurich
• Hong Kong and Shangai Banking Crop. Ltd.
• International Finance Investment and Commerce Bank Ltd.
• Mashreq Bank PSC
• Oman International Bank SOAG
• Rupali Bank Ltd.
• Societe Generale, the French Int. Bank Ltd.
• Standard Chartered Bank
• Trust Bank Ltd.

DEVELOPMENT FINANCIAL INSTITUTIONS (DFIS)
• Investment Corp of Pakistan

• National Development Finance Corp.
• Pakistan Industrial Credit and Investment Corp.
• Pak Kuwait Investment Company
• Pak Libya Holding Company
• Regional Development Finance Corp.
• Saudi Pak Industrial & Agricultural Investment Corporation
• Small Business Finance Corporation
• House Building Finance Corporation
• National Investment Trust
INVESTMENT BANKS
• Crescent Investment Bank

• First International Investment Bank
• Atlas BOT Investment Bank
• Security Investment Bank
• Fidelity Investment Bank
• Prudential Investment bank
• Islamic Investment Bank
• Asset Investment Bank
• Al-Towfeek Investment Bank
• Al-Faysal Investment Bank
• City Corporation Investment Bank (Pak) Ltd.

HISTORY OF THE MCB BANK LIMITED
MCB is one of the leading banks of Pakistan with a deposit base of Rs. 368 Billion and
total assets over Rs.500 Billion. Incorporated in 1947, MCB soon earned the reputation of
a solid and conservative financial institution managed by expatriate executives. In 1974,
MCB was nationalized along with all other private sector banks.
The Bank has a customer base of approximately 4 million, a nationwide distribution

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

“CHALLENGING AND CHANGING THE WAY YOU BANK”
Mission Statement
To become the preferred provider of quality financial services in our country with the
profitability and responsibility and to be best place to work
Our Core Values

CUSTOMER FOCUS
We treat each of our customer equality & as the most important person while we interact
with him/her. We must ensure that we do everything to meet and exceed the customers
expectations with perfect to times, accuracy & quality services.
EMPLOYEE RESPECT & DIGNITY

We treat each of our employees with fairness, which includes giving constructive
feedback for their development. We celebrate diversity and seek suggestions from all
employees for improvement. We ensure that responsibility & fairness in all our decision-
making.
TEAM BASED APPROACH

We work towards achievement of our vision & mission as a combines group. We
encourage inter & intra-departmental communications. We treat our colleagues
as our internal customers & ensure that the requirements of internal customer
focus are always met.
QUEST FOR QUALITY

We ensure that each moment of our time is spent on value adding activity. We always
seek ways for exceeding expectations of customers & colleagues. We also ensure that we
do things right, first time every time.
Management Committee

Board of Directors

Mian Mohammad Mansha Chairman
S.M. Muneer Vice Chairman
Mohammad Aftab Manzoor President & Chief Executive
Tariq Rafi Director

Sheikh Mukhtar Ahmed Director
Mohammad Arshad Director
Shahzad Saleem Director
Mian Umer Mansha Director

ORGANIZATIONAL HIERARCHY OF MCB
PRESIDENT
SENIOR EXECUTIVE
VICE PRESIDENT
EXECUTIVE VICE
PRESIDENT
SENIOR VICE
PRESIDENT
VICE PRESIDENT
ASSISTANT VICE
PRESIDENT
OFFICERS GRADE
I II III
ASSISTANTS
CASHIER

MANAGEMENT LEVEL
The organization chart within a department and in different offices is as follows:
Divisional Heads ………..…………………… Head Office
Regional Head (EVP) ………..…………………… Regional Office
Zonal Head (VP) ………..…………………… Zonal Office
Branch Manager ………..…………………… Branch
(VP, AVP, GRADE 1, 2, 3)

ORGANIZATIONAL SETUP OF MCB
HEAD QUARTER KARACHI
PROVINCIAL HEAD
QUARTERS
PUNJAB LAHORE
SINDH KARACHI
BALOCHISTAN PESHAWAR
NWFP & AZAD

QUETTA
KASHMIR
CIRCLE OFFICES
BRANCH OFFICES
Euromoney Awards :

Best Bank In Asia Award 2008
MCB has been awarded as a Euromoney Award 2008 for the " Best Bank in Asia".
Best Bank In Pakistan Award 2006
MCB has yet again received the esteemed Euromoney Award for the “Best Bank in
Pakistan”. It is the only bank to receive the Euromoney Award for Excellence for the
sixth time in the past seven years.
MCB has again received the esteemed Euromoney Award for the “Best bank in
Pakistan”. It is the only bank to receive the Euromoney Award for Excellence for the fifth
time in the last six years.
In a continuous winning streak, MCB once again takes pride in being conferred with
Euromoney's prestigious award of excellence, for being the "Best Bank in Pakistan" for
the fourth time in the last five years.

MCB believes in you. Together we work with quality, integrity and dedication, striving
to achieve collective success by understanding changing trends and assimilating into
diverse cultures. Your trust in our ability and our commitment to deliver has again won
us the Euromoney Award 2003 for the "Best Bank in Pakistan".
Your trust and our commitment is always an award wining combination MCB was
awarded as a Euromoney Award 2001 for the " Best Bank in Pakistan".
Best Domestic Bank Award 2000
MCB was awarded as a Euromoney Award 2000 for the " Best Domestic Bank in
Pakistan".
The Best Domestic Commercial Bank Award 2005
MCB Continues to shine as once again Asia Money declares MCB as "The Best
Domestic Commercial Bank in Pakistan" for the year 2005.
The Best Domestic Commercial Bank Award 2004
MCB has a distinction of winning the Asia Money 2004 award for being "The Best
Domestic Commercial Bank in Pakistan".

MARKETING MIX OF MCB BANK LIMITED
Marketing is the task of creating, promoting and delivering goods and services to
consumers and businesses. Organizations identify and profile distinct group of buyers
who might prefer or require varying products and marketing mixes. The customer seeks
for value and satisfaction. The organizations can increase the value of the customer
offering in several ways e.g. raising benefits, reducing costs etc. marketing mix is a set of
marketing tools that the firm uses to pursue its marketing objectives in the target market.
These marketing tools are known as 4 p’s of marketing. These four marketing tools are
viewed as 4c’s by the consumers.
4 P’s 4 C’s
Product/ Service Customer Solution
Price Customer Cost
Place Convenience
Promotion Communication
To identify the customer needs and fulfilling hem is the basic objective of an
organization. Marketing is not just satisfying your customers, you have to delight them
and this can be done by acting upon this phrase.
“Under Promise and Over Deliver”
MCB Bank provides a winning combination of products and services to its prime
customers. It is one of the country’s leading commercial banks, which ensures complete
security, and reliability in all-financial transactions.
PRODUCT MIX & PRICES OF MCB BANK

1. MCB Rupee Traveler Cheque
MCB Rupee Travelers Cheques are as good as cash, infact

better. Better because with Rupee Travelers Cheques you have
the power to purchase and a feeling of security that should you
lose them, you will get a refund.
MCB Rupee Travelers Cheques are accepted at major shops, travel agents, hotels,
business establishments and MCB branches all over Pakistan. You don't have to be an
MCB account holder to buy the Rupee Traveler Cheques. Anybody can purchase them.
It's a safe and convenient way to conduct everyday business. At a time when thefts and
robberies are on the increase, you are better off carrying Travelers Cheques rather than
money.
2. Mahnama Khushali Scheme
A 5- year fixed Deposit Scheme, targeted to persons with small savings who would desire
a regular monthly return on their investment.
Salient Features
• Minimum amount of investment shall be Rs.0.010m and the maximum amount of

investment would be Rs. 1.000m.

• Khushali Certificates can be purchased by individuals (singly or jointly) or by the

Proprietorship/Partnership concerns or Companies, etc. in their name
• The Khushali Certificate will be of five years maturity.
• The interim rate of profit offered will be minimum 1% per month. If the profit
declared by the bank is higher, additional profit will be paid.
• Zakat will be deducted wherever applicable on yearly basis whether you will be
receiving your profit or encashing your certificates.
• As per Government Directions, tax on the profit / return is to be deducted by

MCB branches at the time of payment.
3. MCB Khushali Bachat Account
Salient Features
• 8% rate of return per annum.
• Returns calculated on daily.
• Average balance and paid half yearly.
• Introduced first time in Pakistan.
4.Prime Currency Account Scheme

Launched to attract deposits in foreign currencies. US Dollars, Pound Sterling, Euro and
Japanese Yen.
Salient Features
• Owing foreign currency account under the Prime Currency Scheme allows you to
earn attractive rates of interest in foreign currency.
• You have a choice between opening this account in your personal name and
opening it under joint names.
• Whether you are a resident or a non-resident Pakistan, MCB Prime Currency

Scheme invites all to operate a foreign currency account.
• Foreign nationals and foreign companies can also open a foreign currency account
under the Prime Currency Scheme.
• Your foreign currency account can be opened in four global currencies: The
United States Dollar, the Pound Sterling, the Japanese Yen and the Euro.
• Travellers Cheques and Foreign Currency Notes can also be issued to holders of
persona! and Joint accounts.
• Rupee Loan facility will also available against this account.
• You can draw any amount of foreign exchange from your foreign currency
account and transfer or remit the amount freely to any part of the world without
any restrictions.

• The restrictions imposed by the State of Pakistan for the opening of foreign
currency accounts in case of passport; Work-permit and resident Visa have been
withdrawn. Your account will be restriction free.
• The Prime Currency Scheme is exempt from al! forms of taxes including Income
Tax, Wealth Tax and Zakat deductions.
• MCB Prime Currency Scheme is a world in itself.
4. Hajj Mubarak Scheme
A saving scheme, of 2/3 years duration, for the convenience of persons, with a limited
income, who desire to perform Hajj was introduced.
Under the 2 years scheme, a monthly deposit of Rs.1800 is required, whereas under the 3
years scheme, the required monthly deposit is only Rs.1200
5. Capital Growth Certificate Scheme
For long term depositors under which the amount deposited almost doubles at the end of
5 years. For the scheme, the minimum amount of deposits is Rs. 10000 while there is no
maximum limit. In case of premature encashment of the certificate, the depositor will
profit at the same rates as that of PL Saving Account.
6. Fund Management Scheme

This scheme is offered to corporate and customers and is aimed at providing better rate of
return up to 15% per annum. One of the objectives of the scheme is to develop secondary
market for Government Securities.
7. 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.
8. 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.
9. 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.
10. 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.
11. Utility Bill Collection
With the aim of extending this service to wider range of customers, the number of MCB
branches collecting Utility Bills more than 900.
12. MCB Mobile Banking
At the forefront of technological excellence, MCB proudly introduces MCB MOBILE

BANKING*. The convenience of accessing account balance information and mini
statements whenever want or wherever may need them, with comfort and peace of mind.
MCB Mobile Banking service is available to all MCB ATM cardholders, 24 hours - 365
days.
MOBILE BANKING AT A GLANCE
MCB Mobile Banking gives easy and quick access to account(s) at a time find
convenient, including all holidays.
• WITH MCB MOBILE BANKING

· Check balance
· View the last 4 transactions of your MCB account(s).
• A FREE SERVICE
MCB Mobile Banking is a free service for MCB account holders who have an ATM card
of an SMS message if charged by the service provider.
• BANKING AT FINGERTIPS
Dial in anytime to get information regarding balance and mini statements.
13. MCB Islamic Banking Services
Islamic banking services through exclusive units/branches offering a range of liability

and asset based Sharia compliant products like Musharika, Murabaha, Ijara and Istasana.
14. MCB Car Cash
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.
15. MCB Locker
The best protection for your valuables. Lockers of different capacities are available
nationwide

16. MCB Master Card
THE FUTURE OF MONEY
Since the beginning of time, people have tried to find

more convenient ways to pay, from gold to paper money and checks. Today, money is
moving away from distinct hard currencies and towards universal payment products that
transcend national borders, time zones, and, with the Internet, even physical space.
Plastic or "virtual" money, credit, debit, and electronic cash products, inevitably will
displace cash and checks as the money of the future.
MasterCard International has expanded globally in more locations in the world than any
other card. The card was introduced by MCB Bank Limited in 1995 and now offers card
members over 15 million outlets in 232 countries.
• Photo security- The first bank in Pakistan to introduce the enhanced feature of
photograph on the card limiting fraud in case of card loss.
• Welcomed at over 3, 000 outlets in Pakistan.
• Provides up-to 45 days Free Credit.
• Joining and Annual Fees to suit you.
• 24 Hour Customer Services- Call 111-700-700 and you can get information
from our customer services representatives
• on new card application or have your queries resolved anytime of the day.
•

• Cash Advance Facilities
Available in Pakistan and worldwide with a network of over 1,000 branches and a
team of dedicated professionals, MCB is Pakistan’s largest private sector commercial
bank.
Our Consumer Banking provides customers with innovative saving schemes, products
and services. Our ATM network is the largest in Pakistan and our Pak Rupee Travelers
Cheques are market leaders. We were the first to introduce the photo card with the
introduction of the MasterCard.
Our Corporate Banking ensures assistance from a dedicated team of professional

financial advisors for underwriting, project finance or corporate advisory services.
When it comes to banking practices, you can depend on us. We’ve been around for over
fifty years.
17. MCB Smart Card
MCB now brings you MCB SmartCard -a secure and

convenient instrument of payment with unmatched
functionalities. It provides 24-hour direct access to your bank
account
The convenience and flexibility of MCB SmartCard will help live a smarter life. It not
only helps you manage your expenses, but also avoids undue interest on your day to day
credit card transactions.
Your balance is always within your reach and you spend accordingly.

MCB is the only bank to introduce a debit card that gives the option to choose from
domestic and international card for local and global usage respectively
18. Remit Express
Fastest to Pakistan. Anywhere in Pakistan.
The fastest way of getting your money across to Pakistan.

Remit Express offers low cost remittance from U.A.E. and
Saudi Arabia. Your relatives, friends or business associates receive drafts within 72
hours.MCB Remit Express has been specifically designed to meet the needs of the
expatriate Pakistani community residing in the Gulf countries.
19. Easy Personal Loan
Helping You Do More
MCB Easy Personal Loan provides you with the financial advantage to do things you've
always wanted to but never had the sufficient funds for. Take that much-needed holiday.
Buy a car. Refurnish your house. Purchase a new TV. Finance a better education for your
children.
Salient Features
• MCB will lend you any amount, from Rs 30,000 to Rs 490,000, depending upon
your net monthly income
• You can choose tenure of 1 to 3 years for the repayment of the loan

• Bank to Bank Balance transfer
• Credit Card balance transfer
• Loan Protector Shield- insurance coverage of balance loan amount in case of

death or permanent and total disability
• Availability of early repayment option
• Repayment Arrangements
• Repayment of principal and mark-up is monthly and can repaid using either one
of the following modes:
• Direct Salary Transfers
• Payroll Deduction
Eligibility Criteria
• Minimum net monthly income Rs 10,000
• 25 to 55 years of age
• Pakistani national
• At least 2 years of employment with current employer.
• Processing fee of 1% of the principal loan amount to be charged at the time of

loan disbursement.
20. MCB Pyara Ghar

MCB gives dream home at the lowest and best possible mark-up rates. You can choose
either one of our two mark-up rate options- fixed or variable.
Early repayment option tailor-made to allow making partial prepayments at dates that
suit.
Who Can Apply
Anyone who fulfills the following criteria is eligible to apply:
• Pakistani national residing in the city and area where the product is launched.
• 25 years old or above when you apply and under 60 at the time of maturity of the
applied financing period.
• Salaried person, self-employed professional or a businessman with a verifiable

monthly income stream.
• Net take -Home income not less than Rs. 25,000 per month.
• Have 5 years or more of business or professional experience.
• Employed with the present employer for 2 years with a total employment history
of 5 years.
• Home Purchase Home Renovation Home Construction
• Tenure 3 years to 15 years 2 years to 5 years 3 years to 15 years
21. MCB Virtual

MCB Virtual provides the continence of banking on internet. Whether at office or home
or traveling. Log on at www.mcb.com.pk and enjoy 24 hours access of all your accounts
for the largest array of service.
22. MCB Business Sarmaya
MCB Business Sarmaya is a running finance against your residential

property. It offers running finance up to 20 millions with low markup.
23. MCB Car 4 U
MCB car 4 u auto finance is a power move that gets you not only a
car of your own choice but leads you best in life. It is affordable with competitive
markup, flexible conditioning and easy processing and above all no hidden cost.

FIELDS OF ACTIVITIES
The purpose of banks is to provide some services to the general public. And for this
purpose different banks provide different services to the people in different forms. The
MCB Bank is a commercial bank, in modern time commercial banks play a very
important role and their functions are manifold. The main functions and services which
MCB Bank Limited provides to different peoples are as follows.
1) Open Different accounts for different peoples

2) Accepting various types of deposits
3) Accepting various types of deposits
4) Granting loans & advances
5) Undertaking of agency services and also general utility functions, few of those are
as under
• Collecting cheques and bill of exchange for the customers.

• Collecting interest due, dividend, pensions and other sum due to customers.
• Transfer of money from place to place.
• Acting an executor, trustee or attorney for the customers. ‘Providing safe
custody and facilities to keep jewellery, documents or securities.
• Issuing of travelers cheques and letters of credit to give credit facilities to
travel.
• Accepting bills of exchange on behalf of customers.

• Purchasing shares for the customers.

• Undertaking foreign exchange business.

• Furnishing trade information and tendering advice to customers.
For proper functioning of branches and the over all bank has been divided in different
departments. These departments handle different jobs so that division of work is there for
improvement of functions and also it is easy to control the situation. The general division
in a branch is as follows:
1. Cash department
2. Deposit department
3. Advances & credit department
4. Remittance department
5. Foreign exchange department
6. Technology department (new addition in order to cop with the growing needs
of day to day technology requirements)
CASH DEPARTMENT
The following books are maintained in the Cash Department:
• Receiving Cash Book
• Paying Cash Book
• Token Book
• Scroll Book
• Cash Balance Book

When cash is received in counter, it is entered in the Scroll Book and Receiving Cashier
Book. At the close of the day, these are balanced with each other.
When the cheque or any negotiable instrument is presented at counter for payment, it is
entered in the token book and token is issued to the customer. The token clerk and the
Cashier make entries in the paying book and payment is made to payee. At the close of
day, the Token Book and Paying Cashier Book are balanced.
The consolidated figure of receipt and payment of cash is entered in the cash balance
book and drawn closing balance of cash.
Opening Balance + Receipts - Payments = closing Balance.
This is very important department 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 its door is
under supervision of the head of that department. All the books maintained in this
department are checked by an officer.
DEPOSIT DEPARTMENT
Bank deals in money and they are merely mobilizing funds within the economy. They
borrow from one person and lend to another, the difference between the rate of borrowing
lending forms their spread or gross profit. Therefore we can rightly state that deposits are
the blood of the bank which causes the body of an institution to get to work. These
deposits are liability of the bank so from point of view of bank we can refer to them as
liabilities.

The total deposits of MCB are growing since its inauguration but after privatization there
is a sharp incline in over all deposits of the bank. The increase in deposits is also a cause
of increase on total number of accounts; bank has progressed in both aspects.
TYPES OF DEPOSITS
Deposits can be segregated on two bases, one is the duration in which there funds are
expected to be with the bank and second is the cost of getting these funds. So divide
deposits in two classes according to duration of deposits i.e.
1) Time deposits / liabilities
2) Demand deposits / liabilities
And on the basis of the cost to acquire these funds, a deposit can be classified as any one
of following four, High Cost Medium Cost, Low Cost No Cost.
Banks has different kinds of deposit schemes in order to induce deposits. These schemes
are a mixture of the above mentioned two types of deposits with an addition of different
services & requirements such as minimum balance' requirement, mode of transaction,
basis for calculation of profit, deductions, additional benefits, eligibility for different
groups.
In the similar fashion, MCB has a large variety of deposit schemes and some of them are
as follows:

CURRENT ACCOUNT
In this type of accounts the client is allowed to deposit or withdraw money as and when
he likes. He may, thus, deposits or withdraws money several times in a day if he likes.
There is also no restriction of amount to be deposited or withdrawn. However, there is
requirement of minimum balance maintenance of Rs. 1000/-. Usually this type of account
is opened by the businessmen. No profit is paid by the bank and no service charges are
deducted by the bank on current deposits account. These types of deposits are also
exempt from compulsory deduction of Zakat.
PLS ACCOUNT
This type of account is for those persons who want to make small savings'. This type of
account is opened with a minimum deposit of Rs. 1000/-. Under this scheme deposits can
be made only up to a-costing amount and withdrawals are allowed twice a week or 8
times a month. If a big amount is required a seven days notice is required before the
withdrawal. The profit is paid on these accounts on the minimum balance during a month
for the whole of
that month. Zakat & other withholding taxes are deducted as per rules of the government.
KHUSHALI BACHAT ACCOUNT
This is an advance form of PLS saving a/c, in this type of account. The minimum
balance requirement for this type is Rs. 2500/-. There is also restriction on the number of
withdrawals as well, i.e. up to 4 times in a calendar month. For maintaining this extra
balance the customer gets the benefits of profit calculation on daily product basis and

also free service of standing instructions of paying utility bills and HBFC installments.
All other rules of saving account are applicable.
PLS 365 GOLD
This is a special type of saving account in which customer maintains a minimum balance
of Rs. 300,000- and in turn he gets the benefits of daily profit calculations and also there
is no restriction on the maximum number of withdrawals as was there in the case of
KBA. There is also another advantage of this scheme that if balance on a particular day
falls below the minimum balance then only the product of that day is ignored whereas in
KBA, if balance falls below the minimum limit then all the products for that month are
ignored on in other words no profit is paid for that month.
Khaunm Bachat Scheme
This is a type of term deposit, in this type of deposit an account is deposited and monthly
payments of Rs. 1000/- are made by the account holder in this account for a minimum of
10 years. After
the expiry of term, he receives his funds along with profit for the tenor. The distinctive
feature of this product is that profit is calculated on monthly basis and charged to account
on end of each half /ear. Then profit is also calculated on that amount of profit which is
credited to the customer's account. So we can say that in this type of account there is a
concept of accumulated profits on profit. This ends in getting a heavy return for the
depositor at the end of tenor for his small savings. This product was actually introduced
to promote saving habits in the people. Zakat and withholding taxes are deducted as per
rules only at the time of maturity while making payment to the customer.

Term Deposits Receipts
This is a type of term deposit in which a receipt is issued for varying tenors ranging from
1 month to 5 years or more. These are in the form of receipts and profit on these receipts
is paid biannually. These receipts are encashable after expiry of the period for which they
were issued. Different profit rates are applied to different type of TDRs.
Under this deposit scheme, a deposit is received from the depositor under the condition
that he will intimate the bank before a certain period in case of withdrawals.
FUNCTIONS OF DEPOSIT DEPARTMENT
This was a brief review of different types of deposit schemes. The Deposit Department
handles the account opening, profit payment and accounting of all types of deposit
schemes.
Account Opening
Account opening is an agreement in which customer offers his funds and bank accepts
these funds, therefore the nature of relation between a banker and customer is of a
contractual one and all the conditions applicable to this contract act are also applicable.
Profit payment & calculation
Profit payment & calculation is done in accordance with the rules of each type of deposit
scheme-by the deposit department. The products for each deposit scheme are calculated
separately and added till the end of 6 month period. Then the sum total of these products
is multiplied with the respective profit rates which are issued by the Head Office at the
end of each half yearly closing. The profit provisions for each type of deposits are also
calculated on monthly basis by the same department in order to calculate the net profit or
loss position of the branch.
Accounting Entries

Accounting entries are also made in the respective books of account by this department.
However, in small and medium size branches, the accountant performs the book keeping
duties for all kinds of ledgers.
CLEARING DEPARTMENT
Every banker acts both as a paying as well as a collecting banker, It is however an

important function of crossed cheques. A large part of this work is carried out through the
bankers clearing house.
A clearing house is a place where representative of all banks of the city get together and
settle the receipts and payment of cheques drawn on each other. As the collecting banker
runs certain risks in receipt of their ownership the law has provided certain protections to
the banks.
The Negotiable Instrument Act, 1881, lays down hat drawer or holder of a cheque or
draft may cross the instrument generally or specially. It further lies down that a crossed
cheque can only be paid to a banker, who collects it for a customer in good faith and
without negligence.
Types of Cheques
• Transfer cheques: are those cheques, which are collected and paid by the
same branch of bank.
• 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: are those cheques, which are drawn on the branches of
some other bank of the same city or of the same area, which is covered by
a particular clearing house.
• Collection cheques: are those cheques, which are drawn on 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.
Functions of Clearing Department
• To accept Transfer, Transfer delivery, clearing and collection cheques from the
customers of the branch and to arrange for their collection.
• To arrange the payment of cheques drawn on the branch and given for collection
to any other branch on MCB or any other members or sub member of the local
clearing house.
• To collect amount of cheques drawn on members, sub-member of local clearing

house, sent for collection by MCB Branches, not represented at the local clearing
house
• Receiving and scrutinizing the cheques and other deposit instruments, and the
pay-in-slip at the counter.
• Fixing the stamps.
• Scrutiny and receipt by the authorized officer.
• Returning the counter file to the depositor.
• Certificate and confirmation by the officer in charge of the department. ,
• Separating the cheque into transfer, transfer delivery, and clearing cheques.

CLEARING PROCESS (FLOW CHART)
Cheque with slip given Slip is asked & filled
Cheque along with slip checked, signed &

received by officer
Entries in daybooks are made
Entries checked & verified by another

officer after banking hours by officer
Cheques collected at the day end by Main

Branch’s Officials
Cheques are sent to respective banks next

day after posting in computer by Main
Branch
The same day not honored cheques are

returned to Main Branch
The day after tomorrow the banks are

informed about dishonored cheques
Provisional entries for returned cheques are

debited again in both computer & daybooks
Party is informed about returned cheques

through Phone or personal contact
Cheques are mailed through TCS in case of

no personal contact the same day
(If there is any availability)

ADVANCES DEPARTMENT
Advances are the most important source of earning for the banks. MCB is also giving full
attention towards this aspect and it is also obvious from the growing portfolio of
advances and from very low delinquency rate. The credit portfolio of this institution is in
a very much better shape than other financial institutions of Pakistan and the credit goes
to the management and the staff who are concerned about the quantity and quality as
well.
• Loans
• Cash Credits
• Overdraft
LOANS
Loans are monetary assistance by a financial institution to a business, individual etc. The
loans are granted by the bank in lump sum, so these types called fixed or demand loans.
Interest is charged on the whole amount of a fixed loan.
The borrower withdraws whole the amount of loan. This type of loan is normally granted
against security of gold documents.
In case of demand loans against gold or documents, a demand promissory note for the
amount of loan is taken from the borrower loans are granted under;

LOAN AGAINST GOLD
Under this type of loan, which is granted to the borrower the Head Cashier estimates the
value of Gold or Gold ornaments through an agent (Gold smith) and keeps a margin of 40
to 50 percent. After the opening the gold loan account a token is given to the borrower,
which is a bank receipt.
On repayment of loan, the gold or ornaments held as security for it, together with the
demand promissory note duly discharged is returned to the borrower and his receipt for
the gold ornament taken in the demand loan ledger. This receipts states that he ornaments
returned are complete and in order. Part delivery of ornaments is given against part
payment of a loan but care is taken that the ornaments still in banks possession fully
covers the balance of the loan outstanding. The interest gold loan is to be applied with
quarterly.
LOAN AGAINST PLEDGE OF STOCKS
In case of advancing such types of loans, the following precautions are kept in the mind:
• Stock pledged must be readily saleable
• Products should be readily saleable
• Advance should be within the borrows means

REQUIREMENTS OF LOAN
For granting loan to any party or individual, the bank checks following particulars of the
client:
 Credibility
 Feasibility Report
By Credibility, bank Judges the credibility of the client by his past bank record, CBI
report etc. it is very important in making decision about giving him loan.
Feasibility report is on the running or proposed business of the client. The report
enables the bank to judge the likely return of the business.
CASH CREDIT
Such cash account is opened in the name of the customer who borrows from the bank.
Customer is granted a loan up to a certain limit, sanctioned by the head office, from
which he can draw when he requires and interest is charged on the amount actually
utilized by the customer. In order to avoid the danger of idle fund, the bank charges a
certain rate of interest, even if the customer does not withdraw any amount. The rate
charged by the bank on cash credit in 46 paisa per thousand on daily basis.
The credit is usually given against the securities of goods or merchandize as follows:
ADVANCE AGAINST PLEDGE OF STOCKS
When cash is granted against the pledge of stock or product, cash credit form is taken,
from the certain products or stock,

but the actual pledge is created when the stock or finished products are placed under the
bank's lock or the document of title is duly endorsed to the bank by the borrower.
HYPOTHECATION OF STOCKS
The difference between pledge and hypothecation is that under a pledge the borrower's
goods are placed in the bank's possession under own lock, whereas, under a
hypothecation, they remain in the possession of the borrower or guarantor and are merely
charged to the bank under documents signed by them. Even though the documents
empower the bank to take possession of the goods hypothecated, but it is possible that the
borrower may actually resist any attempt.
MORTGAGE OF PROPERTY
Title deeds of immovable property are accepted by the bank only as collateral security or
alternatively as unauthorized security.

REMITTANCE DEPARTMENT
Remittance department performs following functions:
• Mail Transfer (MT)
• Telegraphic Transfer (TT)
• Demand Drafts (DD)
MAIL TRANSFER (MT)
When a customer requests the bank to transfer his money from one branch of bank to
another branch of the same bank or from one city to another city to the same bank or any
other bank. Customer fills the form given by bank. If the customer has an account with
that amount as mentioned in the application form then concerned officer will undertake
the following procedure to make the mail transfer complete.
1. Branch Mail transfer form

2. Receiving Branch Register copy
3. Issuing branch register Copy
4. beneficiary advice
5. advice to customer
In case where the customer is not account holder of the bank then the customer will have
to deposit the amount which he wants to transfer under Mail. Then the above said
procedure will be done.

TELEGRAPHIC TRANSFER (TT)
This type of transfer is simple. After filling the application form the concerning officer
shall fill the telegraphic transfer form. Then it is sent to the required bank which on
receiving it immediately makes the payment to the customer and afterwards the voucher
are sent to that bank by ordinary mail.
DEMAND DRAFT (DD)
Demand draft is just like cheques and issued when the customer wants to take cash with
him personally. The idea behind is to avoid the risk and burden of currency notes in huge
quantity. Demand draft can easily be handled whatever amount it has and the money can
easily be taken from the bank when it is presented. In fact, the bank persuades the
customer to transfer money by drafts and avoid the risk of frauds involves in MT and
T.T. Draft is only issued when the bank knows customer and bank has the confidence in
him
In case of transfer of money by drafts, the customer has to fill an application form. Then
the concerned officer fills the following forms:
1. Customer’s advice
2. Customer’s debit form
3. Register copy
4. Cover Advice

TECHNOLOGY DEPARTMENT
Technological advancements are also affecting the banking industry. The foreign banks
have a competitive edge over all local banks in their technologies' advancements and
automated systems. Local banks have also realized the gravity oil this situation and are
striving to add computerized systems to their branches
MCB is ahead of all other local banks in this field and now it is in a position to even
compete with foreign banks. There are more than 1045 branches of MCB all over
Pakistan and out of these more than 300 branches are fully computerized Almost all .the
branches of big cities are computerized; therefore, the need for a technology department
at each branch is growing. Now a day, a computer division is working in each city to
provide service to ad the branches of that area.
MCB has also introduced the now concept of online banking. There are now more than
250 branches linked through this system and they can transact with each other directly
using computer systems at their own branches. Now customers do not have to wait long
for their transactions and can operate their account through all the online branches.
ATM NETWORK
ATM stands for Automatic Teller Machine. This machine is used to transact in one's
account without intervention of humans. These machines are basically used for taking
cash, confirming balances and requesting statements / cheque books.

MCB has the largest ATM network in the country at the moment with almost one ATM
at each online branch and also ATM terminals at International Airports. This network
covers more than the 27 cities of Pakistan including the provincial capitals and large
commercial cities of the country.
ATMs are operated through a card issued to the valued customers and by application of
Personal Identification Number (PIN number). A person can withdraw from any machine
across Pakistan with having an account in only one branch of MCB. This was only
possible with the help of online system. In this system all the machines are linked to
central banking host at IRM division Karachi through either satellite or telephone
controller. This system identifies the card holder and his PIN Number.
Now MCB has also entered into a contract with Cirrus which is a subsidiary of
MasterCard. This contract will enable an ATM card holder to use his account even
when he is out of country at all the ATMs where Cirrus logo is displayed.
Green Cards are ordinary cards with a maximum withdrawal facility of Rs.
10,000/- in a day. The annual fee for this card is Rs. 300/- only.
Gold Cards are special cars with maximum withdrawal limit of Rs. 25000/- in
a day. These cards are issued to the persons having more than Rs. 500000/- as their
average balance.
International Cards are issued in collaboration with Cirrus and are useable all
over the world with maximum withdrawal facility according to the standards of Cirrus.

INFORMATION ABOUT MY BRANCH
I did my internship in MCB Bank Limited The Mall Branch. Some important information
about my branch which I observed is as follows:
MANAGEMENT OF THE BRANCH
Branch Manager Junaid akhtar Butt
Operational Manager Muhammad Imran

Accountant Fozan ul Qamer
Credit Manager Farruk Afrooz
Forex Manager Majid Iqbal
Chief Cashier Khursheed Ahmed
Cashier Muhammad Usman
Billing Cashier Miss Farwa Asif
CSO Miss Kanwal

WORK DONE BY ME
During my internship in the MCB Limited, I really enjoyed to work with the staff of
Branch, The Mall, Lahore , and have a wish to be employee of MCB. It was almost
impossible to work in all the departments within that limited time. But on my request, the
staff of the branch provided me the opportunity to work in the different departments for
the sake of practical knowledge. I am really very thankful to branch manager Mr. Junaid
Butt that provides me a learning environment in the branch.
During my internship training in the MCB as I early mentioned that I have worked in
different departments & seats and learnt the followings.

ACCOUNT OPENING DEPARTMENT
Account opening and closing is the function of accounts departments. Bank’s customers
may be individuals (Single or Joint), firms (partnership/proprietorship), Autonomous
F
corporations, Limited Companies, Charitable Institutions, Associations Educational
Institutions or Local Bodies.
I
R
S
T
BASICS TO OPEN AN ACCOUNT
T
During the span of mine internship in MCB, I learned and observed a lot of about the
opening of an account. Basically I think that the opening of an account is the
W and the customer. By
establishment of a contractual relationship between the banker
O of a bank. Further I am
opening an account at a bank a person becomes a ‘customer’
going to express the basic requirements and steps involved in the opening of an account.
W
E
E
K
S
INTRODUCTION AND PRELIMINARY INVESTIGATION
Before opening an account MCB as like the other banks in Pakistan ascertain whether or
not the person who is going to open the account is a desirable customer or not. Then
MCB determine the prospective customer’s integrity, respectability, occupation and the
nature of business by the introductory references given at the time of account opening.
Negligence in this informal preliminary investigation may result in serious consequences
not only for the banker concerned directly but also for other bankers and the general
public who may be affected indirectly.
In order to further strengthen and streamline this process, the Federal Ombudsman of
Pakistan, vide his ruling on complaint No. II/31/5186, has directed the banks to retain
with the account opening form a Photostat copy each of the National Identity Cards of the
person desiring to open an account as well as that of the introducer. As per these
directions, the concerned Branch Managers are required to obtain the original National
Identity Cards along with their Photostat copies and then return the original after attesting
the authenticity of the retained copy.
Preliminary investigation is necessary because of the following reasons:
Avoid Frauds: In this regard I learned that if a banker does not make the necessary
inquiries mentioned above he may enable dishonest persons to possess cheque books for
fraudulent purposes. If any such person happens to be an undercharged bankrupt, the
banker might be placed in an awkward position for having allowed such a person to open
and open a bank account.

Safeguard against unintended overdrafts: Sometimes due to a mistake an account may

be given an overdraft, For instance, the ledger keeper, misreading the balance of an
account honors a cheque for an amount larger than the balance. Similarly a credit entry
belonging to a customer may be made by mistake in another customer’s account. In such
situations the excess amount withdrawn by the customer can only be realized if the
customer is a respectable person.
Inquiries about clients: Being a banker I think MCB has a business obligation to
respond to inquiries from other banks etc. about his customer’s financial position.
Though the banker gives only a general ideal about the financial standing of his
customer, it should nevertheless have the necessary information available with him.
Specimen Signature
When an account is opened with MCB customer provides to the bank a specimen of the
form of signature which would appear on all his cheques to express his authority for the
payment of cheques drawn on his banker. This specimen is taken generally on a card
specially designed for this purpose, and rule for the customers, full name, and account
number are entered on it.
If the bank has reasons to doubt the genuineness of a signature, he should either get it
confirmed for his satisfaction or return the cheque with the remark ‘Signature differs’. If
the signature of the customer is forged the banker cannot escape his liability because he
has actually acted on his customer’s mandate.

HOW TO OPEN AN ACCOUNT (GENERAL)
Before opening an account in MCB I observed that the following points must be
considered in this regard.
• Another account holder of the bank should properly introduce the new customer.
• The account holder should sign the account opening form in the presence of bank
officer and the signature is duly verified.
• A copy of identity Card is required by Bank.
• Against submission of the Bank’s prescribed application form, duly introduced in

the manner provided and on supplying such document, as may be required and
account may be opened. The Bank reserves to itself the right to refuse to open and
account without assigning any reason.
• Each account shall be allotted a distinct number that is to be quoted in all

correspondence with the bank relation to the account.
PROCEDURE TO OPEN AN ACCOUNT
According to my practice in MCB, when a customer wants to open an account, the bank
officer gives him an application form. All information, which is necessary to be known
by the bank, are requirements of the application form. Form also requires the essential
documents to be attached by the customer.
Basically following information is required to open an account with MCB.
• Title of Account
• Full Name of Applicant

• Occupation
• Address
• Telephone No.
• Currency of account
• Nature of Business
• Introducer’s Name, Address & Signatures
• Special instruction regarding the account
• Initial Amount of the Deposit

• Signature of the applicant
DOCUMENTS TO BE ATTACHED
Further I learned that if you wanted to open an account with MCB then you should attach
the following documents with your application form which are different for different
categories.
SOLE PROPRIETOR’S ACCOUNT
In order to open an account with MCB Sole Proprietors have to submit their business
registration certificate number.
PRIVATE / JOINT ACCOUTS
For individual or private or joint accounts National Identity Card is required.

JOINT STOCK COMPANY
Before an account of a Public Limited Company is opened MCB must ask the person
authorized to do so to submit the certified copies or the following documents
• Certified true copy of the Memorandum and Articles of Association of the

company.
• Certified true copy of the resolution of the board of directors / managing

committee / governing body regarding conduct of the account.
• Certified list containing names and signatures of the directors / office bearers.
• Certified true copy of the certificate of incorporation or registration.
• Certified true copy of the certificate of commencement of business (in case of

public limited companies).
• Balance Sheet
• I.D. Card copy of each director
• Original is also enclosed for inspection and return
• List of persons authorized to operate the account.
• Power of Attorney in favor of the person opening account.
PARTNERSHIP FIRM ACCOUNT
Information which is required to be submitted to MCB by a partnership firm in this case

is as follows:
• Full Names
• Address

• Specimen of signatures of the partners
• Certified true copy of partnership deed

• Registration No. if the Partnership is registered
SOCIETIES / CLUBS AND ASSOCIATIONS ACCOUNT
MCB is authorized to open the accounts of the societies/clubs and associations, These are
non-trading organizations, formed for the promotion of culture, science, education,
recreational activities and charitable purposes etc. some of these institution are registered
under the Societies Registration Act, 1866, and are issued a certificate of registration
after they have been found fit for registration.
ISSUANCE OF CHEQUE BOOK
When a customer opens an account with the bank, he is provided with cheque book for
withdrawals from account. However, the first cheque book is given to the customer only
when all the required documents are checked. A cheque book contains ten, twenty five,
fifty or hundred leaves. The cheque book also carries a requisition slip for the issuance of
the new cheque book. This slip is duly filled and singed by the customer. 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. Along with the
signature, person should also write his full name & address.
Usually only one cheque book is issued at a time, however big concerns who need a
number of cheque books at a time, may ask the bank to stock as number of cheque books
in their name and to point their name on these cheque books.
Bank debits the client’s account for excise duty of Rs.2.50/- per cheque and keeps the
cheque book ready for the customer, as on his advice.
The officer keeps and maintains the cheque book register Cheque book inventory and
cheque books issued are recorded in this register. The account number for which the

cheque book is issued and the number of leaves are also recorded in this register when the
cheque book issued an entry is passed in the cheque book issue register.
In case of loss of cheque book or requisition slip on cheque book the customer has to fill
the Form No. 216-B to obtain a new cheque book.
UTILITY BILLS COLLECTION
I worked in the utility bills collection department as the MCB collects utility bills on
behalf of WAPDA, Sui Gas Companies, and Pakistan Telecommunication Corporation
T
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 a list is made on the form
H
which is called Bills scroll form. One copy of the scroll is with the bank for evidence
I to the billing department of
whereas the original copy with the receipt of the bills is sent
R
the respective corporation. The bank charge commission on the bills.
W
E
E
K
CASH MANAGEMENT
The most important department of MCB which deals in money (receiving deposits at
F
lower rates and lend them out at higher rates of interest). This department also called as
Chest Department and manager of it is called Cash Manager or Chest Manager. In those
Obranch manager performs
branches where this department is not separately existed, the
the duties of the Chest Manager.
R
T
H
The excess cash (More than its insured limit by the insurance company) of the branches
of the region is collected by the main branch. The main branch is also bound to send its
excess cash (more than its insured limit) to the State Bank of Pakistan. No branch can
W
have cash its safe more than its insurance at any time at the time of closing cash, if it is so
the manager will be responsible (not the insurance company) whether or not he informed
to the regional office (exception to the limit which is insured E
for the day).
E
K
New Notes and Prize Bonds are also part and parcel of the Cash Management. Keys of
the Safe lockers are with the three authorized persons each one of them is responsible for
cash as at the time of closing the cash the officers including Cash officer presented and
lock the safe after counting and scrutinize the cash. The cash officer maintain its daily
cash book with specification of notes (Bonds are also recorded in the books in

relation with cash) and other vouchers, after being satisfied the manager authenticates the
books and vouchers regarding cash with stamp and signature. at the end I would like to
conclude that the cash management is being done in the MCB very effectively.
ADVANCES DEPARTMENT
On my first day of Internship, Manager gives me some advice and told me the ways to
success. He told me that if some one wants to get success in banking career then he must
L
have the knowledge of the one major department of the bank. I.e. Advances. So from
A and at my request bank

very first day I was interested to work in advances department
S
offer me opportunity to work in this department last two weeks
Bank adopts the following procedure in order to grant a loan. A customer applies for a
loan to the manager, who says him to give details of hisTproperty. The details of the
proposal and the photocopies of the document to the title of property are sent to the legal
T
advisor of bank. The legal advisor gives his legal opinion upon the documents. The
branch manager, in the light of the opinion received from the legal advisor, discusses the
Wthe loan to the applicant. If
proposal with the advancing manager whether to give or not
O
manager allows granting the loan all the documents along with request letter are sent to
regional office for approval. In the regional office the proposal is analyzed and if the
office is satisfied a consent letter prepared which is signed by the regional controller
W
credit. This letter is sent to the branch manager. After receiving it the manager finance
E
reviews the consent letter, and prepares a DAC (Disbursement Authorization Certificate).
DAC can be made only for people who have a bank account.
E
. K
S
RECOMMENDATIONS
From the Quantum of the profit and its financial data it can be easily judged that after
privatization, MCB is performing well. Its deposits are growing day by day and so its
profitability. The controlling body is responsible for the productive performance of the
Bank.
Following are my observation and suggestion to improve the efficiency for the
development of the bank.
• 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.
• Staff turnover particularly of trained staff result in financial and other losses. 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. The
exodus of bank officer in the past has worsened the situation.
• Most of the bank employees, are sticking to one seat only with the result that they
become master of one particular job and loose their grip on other banking
operation. In my opinion all the employees should have regular job experience all

out-look towards banking. The promotion policy should be adjusted.
• Refresher Courses for the staff are most important in any international
organization. Alt the employees should have these courses according to their
requirement. Foreign experts can also be called for this purpose.
• 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.
• Bank should give some more incentive to its employees in order to remove the
conflict between lower and higher officers and should try to improve the working
condition of the bank.
• 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.
• Recruitments should be strictly on merit basis and induction should be after

proper and extensive training.
• Old and lazy staff should be replaced by young, qualified and energetic staff.
• Foreign branches should be opened in order to capture the international market

and to earn international repute for the bank.
• Working environment, equipment, furniture and staff dressing should be

according to the modern banking style.
• Proper attention should be paid to upgrade customer services.
• Bank should adopt the global organizational banking structure to meet the
international standards of banking sector.


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INTERNSHIP REPORT ON MCB BANK LIMITED

MCB Bank Ltd.

Mall Road Branch, Lahore.

An internship report submitted in partial satisfaction

Of the requirement for the degree of

MASTERS OF BUSINESS ADMINISTRATION

Submitted to: Placement Coordinator

Institute of Management Sciences Lahore 1

Dedication & Acknowledgements

I dedicate this internship report to my parents. Because of their prayers and

Institute of Management Sciences Lahore 2

Table of Contents Page #

Institute of Management Sciences Lahore 3

"Bank is a dealer in debts—his own and of other people."

According to G.W. Gilbert,

"A banker is a dealer in capital or more properly a dealer in money. He is an intermediate

According To Bamkinh Companies Ordinance

Institute of Management Sciences Lahore 4

PAKISTAN BANKING SECTOR

• Nationalized Commercial Banks

NATIONALIZED SCHEDULE BANKS

• First Women Bank Ltd.

DE-NATIONALIZED SCHEDULE BANKS

• Allied Bank of Pakistan Limited

Institute of Management Sciences Lahore 5

• Zarai Taraqiti Bank of Pakistan (ADBP)

PRIVATE SCHEDULE BANKS

• Askari Commercial Bank Ltd.

Institute of Management Sciences Lahore 6

• ABN AMRO Bank N.V.

Institute of Management Sciences Lahore 7

DEVELOPMENT FINANCIAL INSTITUTIONS (DFIS)

• Investment Corp of Pakistan

• Crescent Investment Bank

Institute of Management Sciences Lahore 8

HISTORY OF THE MCB BANK LIMITED

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

Institute of Management Sciences Lahore 9

“CHALLENGING AND CHANGING THE WAY YOU BANK”

Our Core Values

Institute of Management Sciences Lahore 10

EMPLOYEE RESPECT & DIGNITY

TEAM BASED APPROACH

QUEST FOR QUALITY

Institute of Management Sciences Lahore 11

Institute of Management Sciences Lahore 12

Mian Mohammad Mansha Chairman

S.M. Muneer Vice Chairman

Mohammad Aftab Manzoor President & Chief Executive

Tariq Rafi Director

Institute of Management Sciences Lahore 13

Sheikh Mukhtar Ahmed Director

Mohammad Arshad Director

Shahzad Saleem Director

Mian Umer Mansha Director

Institute of Management Sciences Lahore 14

ORGANIZATIONAL HIERARCHY OF MCB

Institute of Management Sciences Lahore 15

The organization chart within a department and in different offices is as follows:

Divisional Heads ………..…………………… Head Office

Regional Head (EVP) ………..…………………… Regional Office

Zonal Head (VP) ………..…………………… Zonal Office

Branch Manager ………..…………………… Branch