1

Internship Report

Submitted by:
Khadija Arshad
BSBA-VB
2017

Supervised by:
Sir Burhan Ali Shah

Quaid-i-Azam School of Management Science,

Quaid-i-Azam University,

Islamabad
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Internship certificate
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Acknowledgement
Person is not a perfect in all the contexts of his life; He has a limited mind and
mind thinking approaches. It is the guidance from Almighty Allah That shows the man light in
the darkness and the person finds his way in the light. Without this helping light,
person is nothing but a helpless creation. The teaching of the Holy Prophet
Muhammad (PBUH) were also the continuous source of guidance for me especially his
order of getting knowledge and fulfilling once duty honestly was key motivation force for me.
With prayers of my parents and support of my teachers it became possible to formulate
this report. I pay high regards to them. I am also thankful to all my friends and Class fellows who
helped me and provided me support to complete this hard task. I like to thank Mr. Zulqarnain
Khan and all the staff members at MCB Kareem Block Branch as they helped me remarkably
for this report.
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Executive Summary
MCB was incorporated in 1997 and was later privatized by the Government of
Pakistan. The Nishat Group bought the majority shares of the bank and so got
the rights to control the bank’s operations.
Since the privatization of the bank, MCB has implement different policies to make it one of the
best banks of Pakistan, which included introducing new products and services and
increases its operations by opening new branches in Pakistan.

I did my internship at MCB Kareem Block Branch Lahore, and worked in account opening
department, operations department, Accounts department, Customer service department.

Some of the work that I did in these departments included collecting cheques,
filling account opening forms, activity checking and stop payments and closing of accounts.

Although there were no such big problems found in the working of MCB,
t h e r e w e r e s o m e problems in training of the employees, incentive schemes and product
innovation.

Some of the recommendations include workshops for employees, job rotation,

teams work to find innovative products and scholarship programs for employees.

Lastly MCB has seen a rapid growth in its activities by introducing a range of
products and services and showing its presence in the country by opening new branches and in
future should keep this momentum and always strive to become best.
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LIST OF ABBREVIATIONS:

 MCB- Muslim Commercial Bank Ltd.

 GBO- General Banking Officer
 AOF-Account Opening Form
 GAAP-Generally Accepted Accounting Principles
 FGEHS-Federal Government Employee Housing Scheme
 CNIC-Computerized National Identity Card
 NADRA-National Database and Registration Authority
 I-net- (internet networking)
 NIFT-National Institutional Facilitation Technologies
 ATM- Auto Teller Machine
 BBA-Basic Banking Account
 PKR-Pak Rupees
 DD- Demand Draft
 FC -Foreign Currency
 L/C -Letter of Credit
 L/G-Letter of Guarantee
 SBP- State Bank of Pakistan
 UAE-United Arab Emirates
 MCB-Muslim Commercial Bank
 XL-Extra Large
 XXL-Extra Extra Large
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TABLE OF CONTENTS:

Internship Certificate………………………………………………………………….................03
Acknowledgement ……………………………………………………………………………....04
Executive Summary……………………………………………………………………………...05
List of Abbreviations……………………………………………………………….....................06
CHAPTER ONE………………………………………………………………………………..09
Introduction…………………………………………………………………………...................09
Overview of Organization………………………………………………………………………..10
Management and Organization…………………………………………………………………..10

Board of Directors……………………………………………………………………………….11

Vision and Mission Statement…………………………………………………………………...13

Culture of MCB……………………………………………………………………………….....13

MCB Banking Features ……………………………………………………………………….…15

Awards and Achievement………………………………………………………………………..15

CHAPTER TWO

Personal Working and Experiences……………………………………………………………18

Branch Structure……………………………………………………………...............................18

Types of Account in MCB Bank Limited ……………………...................................................18

Classification of Accounts ………………………………………………………………………22

Clearing …………………………………………………………..............................................23

NIFT (National Institutional of Facilitation Technology)……...……………………………….24

Lockers ………………………………………………………...……………………………..…26

Cards ……………………………………………………………...............................................27

CHAPTER THREE

Analysis of MCB………………………………………………………………………………...30

SWOT Analysis………………………………………………………………………………….37
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CHAPTER FOUR

Conclusion……………………………………………………………………………………….37

Recommendations ……………………………………………………………………………….38

If I Were Manager at MCB …………………………………..………………………………….38

References ……………………………………………………………………………………….39
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CHAPTER ONE

INTRODUCTION:

OVERVIEW OF ORGANIZATION:

History and About MCB:

MCB Bank Ltd 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 sub-continent. The bank was nationalized in 1974 during the
government of Zulfiqar Ali Bhutto.MCB earned Revenue of PKR 31.787 billion and Net Income
of PKR 15.266 billion in 2007..

Chairman:

Mian Mohammad Mansha started his career at the age of 24 as the CEO for Nishat Mills Ltd. At
present, the business group is one of the leading and most diversified in South East Asia, having
presence in the Textile, Cement, Insurance, Banking, Financial Services, Power Generation,
Hotel & Hospitality, Dairy, Paper Products and Aviation sectors.

Vice Chairman:

With experience in sectors ranging from tanneries, textiles, Mr. Muneer is a consummate
industrialist. He has been awarded with The Best Export Performance trophy by the Federation
of Pakistan Chamber of Commerce & Industry (FPCCI), the Gold Medallion Award from the
International Export Association, UK and Best Businessman of the Year Award from FPCCI.

Nationalization:

In January 1947, the government of Pakistan nationalized MCB following the Banks
(Nationalization) Act 1974. MCB was neither the only bank which was nationalized solely as
neither it nor any other bank being merged with it due to its consistent and firm
policies and its sound position.
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Privatization:

When privatization policy was announced in 1990, MCB was the first to be privatized upon
recommendations of World Bank and IMF. The reason for this choice was the better profitability
condition of the organization and less risky credit portfolio which made'' it a good choice for
investors.
On April 8th, 1991, the management control was handed over to National Group (the highest
bidders). Initially only 26% of shares were sold to private sector at Rs. 56 per share.MCB
besides being money financial organization have rendered invaluable services in the economics
and social developments of our country. MCB today, represents a bank that has grown with time,
experience and Pakistan. A major financial institution, in scope and size, it symbolizes a fully-
grown tree. Evergreen, Strong, and firmly rooted.

Management and Organization

Organizational Structure:
As MCB is a banking company listed in stock exchange therefore it follows all the legalities
which are imposed by concerned statutes Mian Muhammad Mansha is Chairman 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. Mian
Mohammad Mansha also heads this team.

The different operational departments are:

 Consumer Banking & IT Division

 Financial & Inter Branch Division
 Banking Operations Divisions
 HRD & Legal Division
 Financial Control & Audit Division
 Credit Management Division
 Commercial Banking Division
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 Corporate Banking Division

Boards of Directors:
Mian Mohammad Mansha Chairman
Mr.S.M. Muneee Vice Chairman
Mr. Tariq Rafi Member
Mr.Shahzad Saleem Member
Mr.Sarmad Amin Member
Dr.Muhammad Yaqub Member
Mian Raza Mansha Member
Dato’Mohammed Hussein Member
Mr.Aftab Ahmad Khan Member
Mr.Abdul Farid Bin Alias Member
Mian Umer Mansha Member
Mr.Muhammad Ali Zeb Member
Mr.Atif Bajwa President/CEO

Board Sub Committees: (As of August 10, 2016)

Audit Committee:

1 Mr. Ahmad Alman Aslam Chairman

2 Mr. Aftab Ahmad Khan Member

3 Mr. Muhammad Ali Zeb Member

4 Vacant Member
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Business Strategy & Development Committee:

1 Mian Umer Mansha Chairman

2 Mr. S. M. Muneer Member

3 Mr. Irfan Ahmed Hashmi Member

4 Mr. Ahmad Alman Aslam Member

5 Mr. Mohd Suhail Amar Suresh Member

6 President & CEO Member

Compliance Review & Monitoring Committee:

1 Mr. S. M. Muneer Chairman

2 Mr. Irfan Ahmed Hashmi Member

3 Mr. Ahmad Alman Aslam Member

4 President & CEO Member

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Vision and Mission Statement

Vision Statement:
“To be the leading financial services provider, partnering with our customers for a
more prosperous and secure future”

MISSION STATEMENT:
“We are a team of committed professionals, providing innovative and efficient financial
solutions to create and nurture long-term relationships with our customers. In doing so, we
ensure that our shareholders can invest with confidence in us”
Contents of Mission Statement
 Concern for growth, survival:
MCB is dedicated to maintain long term profitable relationships with customers.
 Concern for customers:
MCB is fully in tented to be customer oriented by providing them maximum satisfaction through
outstanding service and convenience.
 Concern for employees:
MCB has always welcomed and motivated energetic, passionate and committed
professionals.MCB considers its employees as Human Asset, the most important of all of its
assets.
 Profitability Concern:
MCB believes in earning profit by providing best services to their customers.

Culture of MCB
Innovation:
MCB declared innovative and extensive portfolio of investment products in order to achieve
leadership position among financial institutes. A complete new look in MCB’s culture is majorly
because of innovation.
Stability:
MCB has stable and well organized environment. It is highly rule oriented. Every employee
bound to obey rules regarding Dress, Time, and Behavior towards customers.
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Orientation towards employees:

MCB considers its employees as the Human Asset, the most important asset of the whole
organization. So in order to retain this asset as such, MCB’s management fully encourages and
motivates their employees. Special packages, rewards, bonuses etc are awarded to deserve
employees, and this also motivates the other employees.
Orientation towards customers:
MCB not only focuses on to earn profit. But it also focuses on to increase the
customer satisfaction by providing them best services. For this purpose employees of MCB meet
their customers with good care, special attention and responsibility. They listen their problems
and solve them as early possible.
Collaboration:
In MCB we see, if there is any problem occurs. Then branch manager call a meeting of their
employees and get their suggestions. In the end manager take the action which is best in his
view. The culture is very collaborative. The ideas and

Information is shared and decisions are mostly made in collaboration with employees.
Integrity:
We are the trustees of public funds and serve our community with integrity. We believe in being
the best at always doing the right thing. We deliver on our responsibilities and commitments to
our customers as well as our colleagues.
Respect:
We respect our customer’s values, beliefs, culture and history. We value the equality of
gender and diversity of experience and education that our employees bring with
them. We create an environment where each individual is enabled to succeed.
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MCB Banking Features:

Online Services Accounts Loans Cards

ATMs Basic Account Business Sarmaya Smart Card Debit
Card
Mobile Banking Current Account Personal Loan
MCB Visa
Call Centre Saving Account Pyara Ghar

Bill Payments Foreign Currency Car4U

Account
Virtual Banking
Smart Dollar Account

Savings 365 Gold

Special Rupee Term

Business Account

Saving Extra Account

Current Life Account

Awards and Achievement:

Over the past few years, IB (Investment Banking) has received following awards and recognition
for its outstanding performance.

Award Year Award Details / Transaction

Best Bank for Corporate Finance 2016
& Capital Market Development
Corporate Finance House of the 2015
Year Fixed Income (Runner Up)
Asset Triple A, Country Award 2015
Pakistan Banking Awards 2016
CFA Society Pakistan (CFA Pakistan)
Government of Pakistan Privatization of 11.5% stake
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2015 "Deal of the Year - Highly in Allied Bank Limited

Commended"
Asset Triple A, “Highly
Commended Best Islamic Deal”
in Pakistan
Asset Triple A, “The Best Deal”
in Pakistan
The Banker's Asia-Pacific “Deal
of the Year” by Financial Times,
UK
Asset Triple A, “The Best Islamic
Deal” in Pakistan
The Banker's “Deal of the Year”
for Pakistan, by Financial Times,
UK
2013 PKR 6.0 billion Loan Facility to Pakistan Mobile
Communications
2012 Dawood Group acquisition of 16.42% stake in Hub
Power Company
2012 PKR 11 billion Project Finance Facility to FFC
Energy Limited, 49.5MW wind power plant.
2012 PKR 7.1 billion Syndicated Term Finance Facility
arranged and led by MCB Bank for one of the largest
telecom company of Pakistan
2007 USD 53 million listed bond issue led by MCB Bank

Developments:
After privatization, the growth in every department of the bank has been observed. Following are
some key developments:
 Launching of different deposit schemes to increase saving level
 Increased participation on foreign trade
 Betterment of branches and staff service level
 Introduction of Rupee Traveler Cheques & Photo Credit Card for the first time in
Pakistan.
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CHAPTER TWO

PERSONAL WORKING AND LEARNING EXPERIENCE:

My overall experience was very well during my internship period. The branch management pays
keen attention and concern for all employees. The employees are motivated, energetic, well
groomed and trained in order to serve the customers in most effective manner. Special
individualized attention is paid to every customer and is also given proper guidance. All the
departments have their own importance in bank. And so internees are sometimes rotated in all
departments but this gives them negligible time to get adequate grip and knowledge in any
particular department. Before me, few internees were given full rotation in bank but at my time
and after that, internees were confined to few departments only. In Muslim Commercial Bank I
really enjoyed working with the staff of Kareem Block Branch, Lahore having a wish to be
employee of MCB. It was almost impossible to work in all the departments within that limited
time. But the staff of the branch provided me the opportunity to work in the different
departments for the sake of practical knowledge. I feel highly indebted to work in the Kareem
Block. Branch with the manager of that branch Mr. Zulqarnain Khan, because I learnt a lot in
that branch. During my internship training for the Degree of Business Administration as I early
mentioned that I have worked indifferent departments & seats and learnt the following things:

 How to deal with different types of customers

 Account opening.

 Cheque book issuance

 Outward clearing

 Cheque for Collection

 Different forms and vouchers filling.

 Experience of working in a well reputed organization.

The type of work I learnt during my stipulated period of time at different departments of Muslim

Commercial Bank is as follows:

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BRANCH STRUCTURE:

Mr. Zulqarnain Khan Branch Manager

Mr. Haroon Saeed Supervisor Manager and operational Manager
Ms. Hina Arshad Relationship Manager
Ms. Sana Ashraf General Banking Officer
Ms. Momina Incharge Clearing
Ms. Bareera Amir Cashier
Mr. Waqas Incharge Remittence
Mr. Yahsab Ahmad Cashier
Mr. Yasir Cashier
Mr. Nadeem Tea boy
Mr Waseem Peon

Types of Account in MCB Bank Limited:

Some are following types of account in MCB:

 Basic Account

 Current Account

 Savings Account

 Foreign Currency Account

 Smart Dollar Account

 Saving 365 Gold

 Business Account

Basic Account:

To provide banking facilities to low income people without the restriction to maintain
minimum balance requirement.

Features

 The account is opened with a minimum initial deposit of Rs.1000.

 There is no minimum balance requirement, and hence no monthly account maintenance

charges apply.

 In case where balance in BBA remains “ZERO” for a continuous 06 month period, the
account will be closed automatically.
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Eligibility:

 Low income individuals are eligible for opening BBA with single or joint account type.

 Existing individual account holders can also convert their regular Savings or current
account into Basic Banking Account.

 This facility is not offered to non-individuals.

Current Account:

 No restriction on Withdrawals and frequency of transactions

 No profit is paid on Current Accounts

 Service Charges are recovered as specified in the Schedule of Charges

 No Zakat is to be deducted on Current Accounts.

 Account opening with Rs.1000

 Minimum maintain balance Rs.10000 if less then minimum limit Rs.50 will deduct

Eligibility:

 Individuals (Single/Joint)

 Firms (Sole Proprietor Partnership)

 Companies (Public and Private Limited), Trust/ Clubs/ Societies and Associations are
eligible to open Current Accounts.

Savings Account:

 Offers the opportunity to small and medium sized depositors (individuals only) to
earnattractive returns on their deposits. Cash withdrawals takes place only throughATM/
POS.

 Individuals can open an account with a minimum initial deposit of Rs. 1,000.

 Profit is calculated on a monthly basis and credited to the account after each
calendar quarter

 The profit rates are estimated/provisional and subject to change any time at the discretion
of the Bank.
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 Service charges would be applicable as per Bank policy if the balance goes down below
the prescribed minimum balance.

 Cheque book would not be issued to the account holder. ATM Card would be issued to
the customer for cash withdrawals.

Profit Calculation:

Profit will be calculated on a monthly basis, based on the minimum balance maintained by the
customer during that month.

Eligibility:

 Only individuals are eligible to open PLS smart savings Account.

 Non-Individuals like Properties Company, partnership, trading, collection account etc are
not eligible.

Foreign currency Account

Enjoy the confidence of operating an international account, locally.

MCB Foreign Currency Account offers you the option of earning attractive returns on
your Foreign Currency Investment.

Key Points:

 Open your account in US Dollar, UK Pound Sterling, or Euro.

 Open for as little as US$ 500 or equivalent.

 Unlimited transactions at your branch.

 Free Foreign Currency cash deposit and withdrawal facility.

 Rate of Return directly linked with international market

 Profit paid into your account every six months.

 Foreign Remittances facility available.

 Countrywide network of Foreign Currency Branches.

 Cash withdrawal in PKR equivalent

 Network of over a thousand branches, and hundreds of online branches, at convenient

locations.
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 General Inquiry e.g. ATM Locations, Product Information etc

Eligibility:

Only Individuals (Single and Joint) are eligible to open PLS Savings Accounts.

Smart Dollar Account:

 The minimum amount to be placed under this product is USD 100, 00.

 Complimentary Pak Rupee account without minimum balance requirement.

 Free Lockers Facility

 Free of Charge Bank Statement & Smart Cards

 Discount (Up to 50%) on processing charges of Personal Loans & Car Financing.

 Preferential rates on consumer loans.

 Waiver on collection charges for crediting the amount in Foreign Currency.

 No Charges on Standing Instructions.

Eligibility:

 Individuals (Single & Joint), Firms, Companies.

Savings 365-Gold:

Offered to Corporate Groups, Multinational Companies, and Government and Autonomous

bodies.

 Calculation of Profit is made on daily product basis at variable rates according to Deposit
Slab Range at declared rates on Half Yearly basis.

 There is no limitation on number of withdrawals and amount of withdrawals.

 Service charges would be applicable as per Bank Policy if the balance goes below
the prescribed minimum monthly average balance.

Eligibility:

 Individuals and institutions can open the account.

Business Account:
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MCB business account lets you build your business through the accrued savings from discounted
transaction fees, and more.

Key Points:

 Higher the balance the higher the number of free transactions.

 Open a Business Account with Rs.50, 000 only.

 Unlimited free cash deposit and withdrawal facility at hundreds of branches nationwide.

Classification of Accounts

Dormant Accounts:

Checking accounts are classified as dormant accounts on the following conditions:

 Current accounts not operated for “6” months and Savings accounts not operated for one
year shall be classified as dormant accounts.

 Half yearly profit shall continue to be applied as usual on Savings account only.

Inoperative Accounts:

 Current Accounts not operated for “2” years and Savings accounts not operated for
“3”years shall be classified as “Inoperative accounts”

 Half yearly profit shall continue to be applied as usual.

Unclaimed Deposit Account

 If a Current & Savings Accounts remains Inoperative for “08 & 07” years respectively
will be classified as Unclaimed Deposit Account. In addition to this, Bank Drafts,
Government Drafts, Payment Orders, Mail Transfers, Fixed/Term Deposits etc. remains
outstanding for 10 years from the date of issuance will be classified as
Unclaimed Accounts.
 Banking Companies Ordinance 1962 under section 31 clearly defines that Banks are
required to transfer the Unclaimed Deposits to State Bank of Pakistan (SBP) on the
completion of a period of Ten (10) years without any delay.

 All unclaimed deposits including time deposit or any other kind of deposits or financial
instrument (Pay in slips, Payment Orders, Demand Draft, TT, MT’s or any other financial
instruments)

 No profit/interest is paid on deposits transferred to Unclaimed Accounts. Similarly, no

service charges are deducted.
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Clearing:

“Fund transfer between two banks and branches is called clearing”

There are two types of clearing

 Outward clearing

 Inward clearing

Outward clearing:

“Outward clearing is to send the cheques to other branch”

There are three types of outward clearing

1. Same day clearing

2. Normal Clearing

3. Inter city clearing

1. Same day clearing:

In same day clearing send the cheque in the morning and receive the payment in the evening,

There are two conditions in the same day clearing

 Cheque will be 500000 or above

 Member of the same day

2. Normal Clearing:

In normal clearing send the cheque today and receive the payment next day. No condition will
impose in normal clearing like same day clearing.

3. Intercity clearing:

Clearing between two cities is called intercity clearing. In intercity clearing cheque will clear in
two or three days.

To understand the process of clearing we first need to understand and comprehend the working
sand the purpose of the state banks institution called NIFT.
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NIFT (National Institutional of Facilitation Technology)

In the process of clearing NIFT plays a very important role. NIFT (national institutional
facilitation technology) has a very vital role as it is the “middle man” in the purpose of clearing
and issuances of cheque books to the customer on demand of the bank or branch. This institution
has been formed by the State Bank of Pakistan and it performs the duties of receiving all the
clearing cheques from all the branches of all the banks and taking them to the state bank. At the
SBP first the NIFT forms a list of all the cheques from all the banks and then forwards it to the
SBP representative. That Person categorizes all these cheques according to their respective banks
and branches and forms another list of his own. Then these sorted cheques are again given to
the NIFT agent and he then takes them to the head offices of their respective banks and from
there they are distributed to the respective branches also through NIFT. This way NIFT delivers
all the cheques to their parent branch from which they have been issued.

Inward Clearing:

In the morning time I am received the inward clearing from the NIFT employee and then I count
the instruments which I received and match with the summery

This is also attached with these instruments. Then give these instruments to the computer
operator who posts these instruments, after posting all these instruments then he again give me
the instruments and I enter all these instruments into the clearing sheet in his Debit side.

Memo on Cheques Return:

Also prepare the Memo on (S.F 16) in which the details of objections are given that for purpose
we return this instrument, and charge RS 200/- per instrument

Calculate the Difference Vouchers of Clearing:

Difference voucher means the difference between the Out ward Clearing and In Ward Clearing.
If the liabilities are outstanding on our side which means that our branch will pay this difference
amount than I will prepare the H-O Credit Voucher and if the Liabilities are outstanding on their
side which means that now we are receiving the difference amount so I will prepare the H-O
Debit Voucher.

 If liabilities are outstanding on our side than made Credit voucher

 If liabilities are outstanding are on their side than made Debit Voucher

Calculate the Difference Vouchers of Clearing Return:

I have also made the difference voucher of those cheques which are R.U.P means Return Unpaid.
Means those cheques which our branch is returned and those cheques which other banks returned
our cheques which we send for clearing and it had been rejected
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 If liabilities are outstanding on our side than made Credit voucher

 If liabilities are outstanding are on there side than made Debit Voucher than finally enter
all these difference vouchers in to the clearing sheet and balancing with the computer. So
this the complete process of Clearing.

Flow Chart of Inward Clearing:

Outward Clearing:

When the account holder of our bank receives payment from any other party in the form
of cheque, and that cheque is not of our bank or branch, and our account holder deposits it in his
MCB account then that cheque has to pass from the process of outward clearing.

All the cheques deposited in one day of other banks are then again sent through the NIFT to the
SBP which sends them to the head offices of their respective banks which through NIFT sends
the instruments to the respective branches from which they were issued. This process of outward
 26

clearing is exactly opposite to the process of inward clearing which I explained in detail before.
This process of outward clearing is also of three days.

Intercity Clearing:

There is the new concept of clearing which is named as intercity clearing. State Bank of Pakistan
now revises his policies and introduces this concept, because before this action if any instrument
which is belong to out of city, so in order to clear this instrument we sent this cheque through CC
Cheque Collection. Under cheque collection procedure it took five to six days which time taking
even though the CC procedure is not yet finished but minimum up to the certain extent. Now in
most of the big cities intercity Clearing performing his job instead of CC, with the help of
intercity clearing time duration is definitely minimum.

Lockers:

Basically it is a facility which is provided by the bank to its customers in order to secure their
money gold important property documents etc. before this locker concept people are very much
worried about the loss of their money, gold and important documents so now the people are very
much relax because now they use this facility quite frequently.

Issuance of License:

It is not an easy task to get the license of opening the locker facility in the branch for every bank,
for this purpose the bank should get permission from State Bank of Pakistan who is the
banker’s bank; without his permission nobody can provide this facility to the customers. The
branch who wants to get license he must sent a written request letter to State Bank than the state
bank officer visit this branch and see that is there enough place to provide the license of lockers
to this branch or not? If they are satisfy they charge the license fee from this branch.

Types of Lockers:

 Small size lockers

 Medium size lockers

 Large size lockers

Insurance of Lockers:

Bank will also pay the insurance on behalf of this lockers so in case of any bank misshape then
the insurance company will accept the certain claim but it depends open the size of the lockers
Small Size Locker Claim up to RS 500,000/-Medium Size Locker Claim up to RS 10, 00,000/-
Large Size Locker Claim up to RS 15, 00,000/-

Renewal / Expiry of Lockers:

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Usually the time period of this facility is one year, at the end of the time period the bank will
ask to the client that weather he will continue this facility or not if the customer says yes then he
will pay the charges again in order to use this facility which is provided by the bank.

Procedure of Use of Lockers:

One key is given to the customer and the other key is handed over to any bank person who is the
authorized person, and the locker is opened with both keys. The authorized person who keeps
keys He/She note following things

 Customer name

 Signatures of customers

 Time of lockers operating

 Account number

 Leaving time

Customers can use this locker during the banking hour that is 9: Am to 5: PM.

Cards:

MCB Visa Prepaid Card:

MCB Visa Prepaid Card is aimed at providing convenience and control that will completely
change the way you transact. It can be used to withdraw cash, shop and make online payments
locally and internationally.

Features:

Shopping:
Use your MCB Visa Prepaid Card for all your shopping needs at more than 35,000 local and at
several million international outlets accepting Visa.

Dining:
Make your dining a pleasurable experience. Use your MCB Visa Prepaid Card to pay at your
favorite restaurants.

Fuel:
Keep a track of your fuel expenses, as MCB Visa Prepaid Card is accepted at all fuel station.
You may do so by subscribing to a monthly e-statement service or by contacting the Call Centre
and inquiring about your transactions.
 28

Travel:
Use your MCB Visa Prepaid Card while travelling around the world from buying tickets and
hotel reservations and from dining out to shopping, experience the freedom and control your card
offers. You can also avail free travel inconvenience insurance coverage on your card in Freedom
Package.

MCB Visa Debit Card:

MCB Gold plus digital payments are demonetized and made free of charges so that you and your
loved ones can save more time and money as you transact more and more.

So now you can make payments and access your money, anytime, anywhere without the worry
of paying a charge every time.

MCB Visa Debit Platinum Card:

The card that’s built around unmatched convenience with enhanced security and round-the-clock
accessibility to your funds in Pakistan and from around the world. Matching the persona and
lifestyle of high-net-worth customers, the VISA Debit Platinum card is a status symbol. Its
elegant product packaging, dedicated services and complimentary benefits ensure that you feel
privileged! Together with world class services and features, you can now enjoy the best that life
has to offer in a truly deserving way.

Maximum ATM withdrawal limit:

Now with MCB VISA Debit Platinum Card, withdraw up to PKR 200,000 on a daily basis

Shop Around the Globe:

MCB VISA Debit Platinum Card is accepted at millions of merchant locations

nationwide/worldwide with shopping limit of PKR 500,000 per day.

Exclusive discounts at MCB Bank partners outlets:

Be it shopping at popular retail outlets, relaxing at a spa, having fun with friends and family or
dining out at the finest restaurants, benefit from gratifying discounts offered on your MCB VISA
Debit Platinum Card.

Free Mobile Banking:

With your MCB VISA Debit Platinum Card you can avail free Mobile Banking service and
access your bank account online through your mobile phone anywhere anytime.
 29

Free MCB Lite wallet:

MCB Lite combines the power of a mobile wallet with a VISA branded plastic to save you time
and money.

Classic/Gold Credit Card:

MCB Classic/Gold Credit Card is not just another card in your wallet. It not only provides the
conventional credit card services in a manner that is superior in comparison, but goes an extra
mile.

MCB card is accepted at all Automated Teller Machine (ATM) s across Pakistan as well as
several million locations worldwide.

Milestones:

MCB has been awarded as a Euro money Award 2008 for the “Best Bank in Asia" In 2006 MCB
yet again received the esteemed Euro money Award for the “Best Bank in Pakistan”. It is the
only bank to receive the Euro money Award for Excellence for the sixth time in the past seven
years.MCB Continues to shine as Once again Asia Money declares MCB as "The Best Domestic
Commercial Bank in Pakistan" for the year 2004 and 2005.
 30

CHAPTER THREE

ANALYSIS OF MCB

Ratio Analysis:

Ratio analysis is an important and old technique of financial analysis. Ratios are important and
helpful in the reference that:

 These simplify the comprehension of financial statement and tell the whole story of changes
in the financial conditions of the business.

 These provide data for inter-firm comparison.

 These help in investment decision in case of investor and lending decision in case of Bankers
etc.

Advantages of Ratio Analysis:

It helps to give comprehensive financial statements in evaluating aspects of any undertaking in

respect of financial health, operations efficiency and profitability. It provides a good help in
decision making for investors and the financial institutions.

Categories of Ratio Analysis:

 Liquidity ratios

 Activity ratios

 Debt ratios

 Profitability ratios

 Market ratios

Liquidity Ratios:

The liquidity of a firm is measured by its ability to satisfy its short-term obligations as they come
due.

Liquidity Measures are

 Current ratio

 Quick (acid-test) ratio

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Current Ratio:

The current ratio, one of the most commonly cited financial ratios, measure the firm’s ability
to meet its short-term obligations. It is expressed as follows:

Current ratio = Current assets / Current liability

Debt Ratio:

The debt position of a firm indicates the amount of other people’s money being used to generate
profits. In general, the financial analyst is most concerned with long term debts, because these
commit the firm to a stream of payment s over the long run.

The ratio is calculated by following formula

Debt ratio = Total liabilities / Total assets

Market Ratios:

 Return on total assets

 Return on equity

 Earnings per share

Vertical Analysis:

In vertical analysis each item of a financial statement is presented as a % age of the total of items
or some other suitable items.

Horizontal Analysis:

In vertical analysis each item in financial statement of the last year is considered as a base of the
same items.

Pest Analysis:

PEST analyses tell How Political, Economical, Social and technological factors affect MCB.
These are the external factors which affects the whole organization.

Politico-Legal Factors:

 Stable government

 Stable policies in favor of business

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 Improved relation with outside world

 Law and order.

Unstable Government:

Due to this reason foreigners hesitate to invest their savings in banks, as a result of economy of
our country is going downward and banks suffer.

Economic Factors:

Pakistan's economy is going weaker and weaker. 9/11 has a great influence on the economic
crisis of all over the world. With economic factors the bank influenced very much that are as
under:

 Impact of WTO force to cost reduction methodology

 Low interest rate

 Inflation

 Low GDP growth

 Budget deficit

 Increase in Govt. duties

 Fluctuation in exchange rates

Social Factor:

Social environment includes family, friends, a person's role and status. An individual’s life
directly by society and the person acts according to his or her society. Cultural environment
includes norms, values, religion, conception and perception

Technological Factor:

Today is the era of technology. In the every aspect of life technology plays an important role.

 Due to rapid change in technology every bank has to change its technology to compete other
ones.

 Increasing issue of securities due to technology resulted increase in cyber crime. Cybercrime
means manipulation. One person can easily transfer amount from any other's account to his
account.
 33

MCB’s SWOT ANALYSIS

STRENGTHS

MCB is the first Pakistani privatized bank and because of its quality management, marketing,
innovation in products and services. Owing to all such factors they have established a good
reputation in the banking market. The name of MCB makes you recall the highly cooperative and
professional individuals ready to serve you with maximum zeal and zest. The joining of
experienced people, advanced management, advance setup and facilities gave MCB an edge over
its competitors.

Muslim Commercial Bank’s Image:

MCB is a reputable financial organization and is well known all over the Pakistan. Perception is
of producing a high quality services.

Customer Care:

The Bank not only provides high quality services but it also look for the comfort and
convenience of the clients, MCB always preferred their customers.

Market Share:

MCB has covered much of the potential market and the net profit is increasing years after years.
Deposits and advances have sufficiently increased.

Large Number Of Diversify Products:

This is also its main strength as it has diversified in many products such as:

 Debit Card

 Visa Card

 Car Financing

 Agriculture Financing

Branch Network:

It is the greatest strength of the Bank. In 2004, five more branches were added to the network
and by the end of the year 2005 the total number of branches was raised from just 53 to143.
MCB has also planned to open more branches in next coming years.
 34

Sound Marketing:

Skillful marketing of the products is being achieving countrywide goals of Muslim Commercial
Bank Limited.

Phone Banking:

Every account holder can confirm its balance on Phone and may ask for any query. There are
also 24 hours help lines for customers.

Mobile Banking:

It has been launched recently. It helps in getting accounts details and making transactions using
mobiles.

Highly Automatic Bank:

MCB in Pakistan is the also in the list of highly automated banks, about 750, like Emirates
because of its modern style of banking through fully computerized control and twenty four hour
banking.

Faster Banking Service:

MCB have faster banking services that are making it more prominent in the banking industry
especially in operations and Foreign exchange. The customer prefers this bank not only because
of its faster speedy service rather due to reasonable service charges.

Internationally Designed Products:

MCB’s products are internationally designed products. These are valuable and operational in all
over the world.

Contract with Cirrus:

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.

WEAKNESSES

Advertisement:

The majority of people are not well aware about the products of MCB. Therefore it should
advertise extensively especially RTC and Master Cards.
 35

Accommodate Behaviorally:

A behavior has been noted that bank tries to feel at ease with good looking, rich and educated
people and the poor looking customers feel some bit strange in the environment of the bank. The
bank employees should try to accommodate behaviorally all type of customers.

Mismanagement of Time:

Mismanagement of time is another big mistake in MCB branches, the bank official time of
closing is 5:30pm but due mismanagement of time allocation and work the staff is normally on
their seats till 7:00 or 8:00 clock.

And Also,

 Costly documents are required for loan sanctioning.

 Sometimes bank also never meets stated rate of profit

OPPORTUNITIES

Privatization:

As on December 31, 1998, sixty-eight scheduled banks with 9,106 branches are operating in
Pakistan. As on this date, total population of Pakistan is 140.03 million. Total number
of personal accounts with all scheduled banks as on December 31, 1997, is 28.98 million. If we
consider the population statistics of working age group as on December 31, 1997, it stands to the
figure of 96.64 Million. Thus we can say those 28% of working age people of Pakistan are
having accounts with banks while 72% are unbanked. The need of privatization has made people
to switch to banks to satisfy their needs of lending and borrowing. This not only increases the
deposits but also the credit business.

Diversification:

They may enter in new business or any other consumer-durable product in order to promote their
name, by introducing Loan for the students, small businesses, and handicraft industry.

Some More Opportunities:

 Information Technology

 Credit cards can give more earning

 Establishing more foreign Branches

 They should introduce Student Finance Facility

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 They should also introduce mobile ATM

THREATS

Change in Government Policies:

Change in government policies has affected the banking business. Still banks have to wait to get
permission of state bank. The freezing of foreign currency accounts is a vital example of letting
people not to trust on banks.

Competition:

The Competition has become severe by the entrants of so many banks, So to exist one will have
to prove himself in its services through excellent management and will have to satisfy its
shareholders. Otherwise he will be out the market.

Low Investment:

The decrease purchasing power of consumer in the current economic situation of the country
affecting the business activity speed too much and the result is the low investment from the
investors in new projects can create problem for the bank because it is working a lot in trade.

State Bank Regulation:

As the Bank introduces unique products so they face problem if State Bank of Pakistan employ
taxes on them which force them to increase the rate of Interest.

Expectation of the People:

Due to huge competition among those banks and MCB, people are the basic beneficiaries from it
and thus their expectations tend to increase about the products and the relative rate of interest
thus creating a threat for MCB.
 37

CHAPTER FOUR

CONCLUSION

During my internship of six weeks in Muslim Commercial Bank, Ltd. Kareem Block Branch,
Lahore the knowledge given by my respected and devoted teachers proved to be very helpful in
understanding the environment in the organization and working practically .Following are some
key points about application of my class room learning in the organization:

The knowledge achieved from the courses in my “Degree of business administration” helped
me in understanding customer dealing i.e. how to deal with them? How to understand their
problems? It also helped me in understanding the inter Organizational Communication i.e.
circulars, notices etc.

Financial Management and Principles of Accounting helped me in understanding the accounting

terminologies which are used in bank e.g. what is debit and credit vouchers? What are these for?
And also in understanding that how entries are made against certain heads. Furthermore,
Principles of Management and Organizational Behavior helped me in understanding the
professional environment and how to work with different people as well as customers. I could
do this only with the help of the knowledge provided to me in my four semesters of Degree in
Business Administration at Quaid-E-Azam (School of Management Sciences), Islamabad.
Finally I conclude that MCB is a good organization for a person for his long term career
workings. Overall working and environment of the bank is very comfortable and the staff is very
helpful of each other. Management of bank is very strong.

RECOMENDATIONS

After doing a deep study and witnessing everything that goes on in a branch, I would then like to
make the recommendations that; First of all, the management needs to overlook the major
problems that the organization is currently facing and then develop strategies to eradicate them.
Some of the suggestions that I would like to give at the end are:

 Promotion and Mass Media Publicity

MCB Bank can improve its Marketing strategies to acquire more promotion and mass
media publicity by the use of effective channels of promotions like TV, Newspaper
Advertisements. It can also improve its magazine publication that it releases each month.

 Centralized Structure

Centralized Structure that enables employee involvement needs to be formed.

 Better Reward System

 38

Better reward system is one of the most important requirements in order to reduce the problem
of Employee retention and improve Employee motivation.

 ATM Machines Maintained

ATM machine must be maintained properly to make it more convenient for the customers and to
decrease the load of work to the employees of the bank especially in the salary days.

 Staff Member

I have observe during working that there need of more staff due to pressure of work MCB should
hire more employees for better performance even any employee when take leaves Manager has
no choice to his work to other employee so this situation built high pressure.

 Symbol System

To make the SYMBOL system more efficient and make sure its connectivity all the time in
order to provides more convenience to customers.

 Job Rotation for Employees

MCB should to make the strategy where make the job rotation of employees

IF I WERE MANAGER AT MCB

If I would be a manager at MCB I’ll take following steps,

 I will apply such a communication system specially designed for employees trough they
can share the problems regarding work environment.

 Complete working and break hours will be offered so that employees can
work efficiently.

 I will make it sure that some of the employees should be sent for training to
other countries and employees from other branches should be brought here.

 I will make promotions, job rotation and bonuses, an important part of policies of MCB.

 At every month’s closing when employees stay at branch even after working hours, a
dinner from bank will be offered.

 To retain potential customers certain services will be provided and let them know with
advertising.

 I will make it sure that Working environment, equipment, furniture and staff dressing
should be according to the modern banking style.
 39

REFERENCES & RESOURCES

To make this internship report data is taken from the following resources

https://www.mcb.com.pk/about-mcb/history-of-mcb-bank

https://www.mcb.com.pk/about-mcb/vision-mission

https://www.google.com.pk/search?q=mcb&rlz=1C1GKLB_enPK736PK736&source=lnms&tb
m=isch&sa=X&ved=0ahUKEwi2x-
bQzsfVAhXCNxQKHZcdDvgQ_AUICigB&biw=1366&bih=662

https://www.mcb.com.pk/

https://www.mcb.com.pk/privilege-banking/home

https://www.mcb.com.pk/privilege-banking/mcb-visa-gold-credit-card