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EVOLUTION OF BANKING The word 'Bank' is said to have been derived from the words Bancus or Banque or Bank.

This history of banking is traced to as early as 2000 B.C. The priests in Greece used to keep money and valuables of the people in temples. These priests thus acted as financial agents. The origin of banking is also traced to early goldsmiths. They used to keep strong safes for storing the money and valuables of the people. The persons who had surplus money found it safe and convenient of deposit their valuables with them. The first stage in the development of modern banking, thus, was the accepting of deposits of cash from those persons who had surplus money with them. The goldsmiths used to issue receipts for the money deposited with them. These receipts began to pass from hand to hand in settlement of transactions because people had confidence in the integrity and solvency of goldsmiths. When it was found that these receipts were fully accepted in payment of debts; then the receipts were drawn in such a way that it entitled any holder to claim the specified amount of money from goldsmiths. A depositor who is to make the payments may now get the money in cash from goldsmiths or pay over the receipt to the creditor. These receipts were the earlier bank notes. The second stage in the development of banking thus was the issue of bank notes. The goldsmiths soon discovered that all the people who had deposited money with them do not come to withdraw their funds in cash. They found that only a few persons presented the receipts for encashment during a given period of time. They also found that most of the money deposited with them was lying idle. At the same time; they found that they were being constantly requested for loan on good security. They thought it profitable to lend at least some of the money deposited with them to the needy persons. This proved quite a profitable business for the_ goldsmiths. They instead of charging safe keeping charges from the depositors began to give them interest on the money deposited with them. This was the third stage in the development of banking. DEFINITION OF A 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 debtshis 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 Banking companies ordinance 1962 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."

COMMERCIAL BANKING IN PAKISTAN The interesting point which I observed during the span of mine internship was the historical background of Banking & Financial sector which is the one in which great improvement and growth is observed since the formation of Pakistan. For studying the growth of this sector we can divide it into three stages, which are as follows: a) Pre-Nationalization Era b) Nationalization Era c) Post Nationalization Era A) PRE NATIONALIZATION PERIOD: There were only two Muslim banks in Indo Pak before partition, they were; Habib Bank Ltd. (estd. in 1941 at Bombay) & Australia Bank Ltd. (estd. In 1944 at Lahore). All other banks, at that time, were either owned by Hindus or Foreigners. At the time of partition there were 631 bank branches in area which came under Pakistani control. But due to blood shed and violence at large scale, mostly branches were closed and the disparity can be assessed from the fact that on July 1948 there were 195 branches with deposits of Rs.88 crore (880 million) only. Also a factor lagging in Pakistani industry was a central bank of its own, by that time Reserve Bank of India was acting as central bank for both countries and same currency notes were used in both territories. But Reserve Bank of India was biased and Set down Pakistan on many occasions such as the issue of funds transfer etc. In this period drastic steps were taken in government sector for the improvement of overall position. The private sector also responded to these changes and some very positive changes were observed. Some of the steps taken by the government in this regard were as under: 1) Inauguration of State Bank of Pakistan (SBP) on 1st July, 1948. 2) Setting up of National Bank of Pakistan in November, 1949 to control the 'jute' export

in East Pakistan and to act as agent of SBP. 3) Larger powers were given to SBP through SBP Act (1956) for controlling purposes. 4) Banking Companies Ordinance 1962 for protection and guidance to banks. 5) Establishment of specialized banks, such as ADBP (1952); a) HBFC (Nov, 1952); b) P1CIC (Oct, 1957) c) IDBP (Aug. 1961); d) NDFC (Jan, 1973). These were the steps, which built a strong banking sector in Pakistan. This is also obvious from the facts that by 1973 there were almost 10 foreign banks were working in Pakistan and all over deposit position was around Rs.2300 crore (23,000 million). A bird eye view of 5 top banks was as given below: BANK POSITION IN 1973 BANK NO. OF BRANCHES DEPOSITS HBL 667 6,160 NBP 579 5,660 UBL 497 5,670 MCB 506 1,640 ABL 145 570 B) NATIONALIZATION PERIOD On January 01, 1974 all Pakistani banks were nationalized through Nationalization Act 1974. Under this law all Pakistani banks became a public property. All small banks were merged in bigger banks to create 5 major Pakistani banks Pakistani banks. These banks were to control by Pakistan Banking Council. There are still controversies about this act of government as whether it contributed in success of failure of banks. However the major changes after nationalization were as follows: Working of banks was extended to under developed areas. Market expansion for credit and deposits. Decrease in service level of bank officers.

Decrease in profitability as well. However the effect of expansion was enormous and it can also be depicted with the help of table 2 which shows the deposit & branch positions of different nationalized banks. BANK POSITION IN 1992 Bank No. of Branches Deposits (Rs. In Millions) HBL 1926 153,431 NBP 1448 128,679 UBL 1684 87,482 MCB 1288 50,013 ABL 750 33,757 TOTAL 7096 453,362 C) POST NATIONALIZATION ERA In 1990 the government decided to denationalize all the nationalized institutes. Some was also suggested in banking sector. For this purpose, amendments were made to Nationalization Act 1974 and two nationalized banks were privatized. Along with this a permission to open banks in private sector was also granted. The rules regarding establishment of new banks and for incoming foreign banks were also Relaxed. The-three privatized banks are; a) MCB taken up by a private group in April, 1991 b) ABL taken up by its own employees in September, 1991. c) UBL taken up by UAE party in 2002. After these changes a large number of private and foreign banks started their operations in Pakistan and the present status can be seen from the following figures:

SCHEDULE BANKS Category No. of Banks Nationalized Commercial Banks 3 Private / Privatized Commerce Banks 18 Public Sector Specialized Banks 4 Foreign Banks 19 Total Schedule Banks 44 In addition to above mentioned scheduled banks there are 7 Development Financial Institutes, 14 Investment Banks and Modarbah Companies. MUSLIM COMMERCIAL BANK LTD. (HISTORICAL BACKGROUND) Now let us discuss the historical background of Muslim Commercial Bank Limited. Before separation of Indo Pak, the need for more Muslim banks was felt. And Muslims having strong financial capacity were thinking to invest in this sector as well. This was the idea which paved the way for setting up Muslim Commercial Bank Ltd known as MCB. This was the third Muslim bank in the subcontinent. HISTORY This bank was incorporated under companies act 1913 on 9th July, 1947 (just before partition) at Calcutta. But due to changing scenario of the region, the certificate of incorporation was issued on 17th August, 1948 with a delay of almost 1 year; the certificate was issued at Chitagong. The first Head office of the company was established at Dacca and Mr. G.M. Adamjee was appointed its first chairman. It was incorporated with an authorized capital of Rs. 15 million. After some time the registered office of the company was shifted to Karachi on August 23rd, 1956 through a special resolution, now recently the Head office of MCB has been transferred to Islamabad in July, 1999 and now Head office is termed as Principle Office. This institute was nationalized with other on January 1st, 1974. At that time it had 506 branches and deposits amounting to Rs. 1,640 million. Although. MCB has a reputation of a conservative bank but nationalization also left its effects on this institute as well and by end of year 1991 in which it was privatized the total number of branches were 1.287 and deposits amounting to as high as Rs. 35,029 million. 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. DEVELOPMENTS After privatization, the growth in every department of the bank has been observed. Following are some key developments: 1) Launching of different deposit schemes to increase saving level.

2) Increased participation on foreign trade. 3) Betterment of branches and staff service level. 4) Introduction of Rupee Traveler Cheques & Photo Credit Card for the first time in Pakistan. 5) Extended use of information technology which is evident from the fact that there are 768 fully automated branches, 243 online branches (integrated networking), 151 ATMS in 27 cities nation wide and a M.C.B continuously innovate new product.

MANAGEMENT OF THE ORGANIZATION MANAGEMENT OF THE BANK 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 Raza Mansha Director Sarmad Amin Director Mian Umer Mansha Director AUDIT COMMITTEE Mian Mohammad Mansha Chairman Shaikh Mukhtar Ahmed Member Shahzad Saleem Member CHIEF FINANCIAL OFFICER Ali Amin COMPANY SECRETARY Tameez-ul-haque ORGANIZATIONAL STRUCTURE As MCB is a banking company listed in stock exchange therefore it follows all the legalities which are imposed by concerned statutes Mr. Muhammad Mansha is chairman & chief executive of the company with a team of 10 directors and 1 vice chairman to help in the business control and strategy making for the company. Operational Management of the bank is being handled by a team of 10 professionals. This team is also headed by Mr. Muhammad Mansha. The different operational departments are Consumer Banking & IT div; Financial & Inter branch div; Banking operations div; HR & Legal div; financial control & Audit div; Credit management div; Commercial Banking div; Corporate Banking div; Treasury management & FX Group and lastly Special Assets Management (SAM) Group. For effective handling of branches, it has been categorized into three segments with different people handling each category. These categories are: a) Corporate Banking b) Commercial Banking c) Consumer Banking A) CORPORATE BANKING: These are branches which have an exposure of over Rs. 100 million. Usually includes multinational & public sector companies. B) COMMERCIAL BANKING; The branches which has a credit exposure of less than Rs. 100 million but having a credit

portfolio of more than Rs. 20 million (excluding staff loans) Usually branches in large markets and commercial areas come under this category. C) CONSUMER BANKING These are the branches which have exposure up to Rs. 20 million and these include all the branches which are neither corporate nor commercial branches. Recently the organizational structure was re-designed as follows: Province wise branches Corporate Consumer Commercial 20 branches 637 branches 383 branches

NUMBER OF BRANCHES IN DIFFERENT LOCALITIES Punjab 632 Sindh 232 NWFP 123 Blochistan 34 Azad Kashmir 19 Domestic 1040 Overseas 4 EPZ 1 Total 1045 Sri Lanka 3 Bahrain 1 Furthermore, the bank has some proposals under consideration to open more brances in some European countries and as well as in japan & china HIERARCHY OF MANAGEMENT

MEDIOCRE LEVEL MANAGEMENT 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)

FIELDS OF ACTIVITIES OF MCB 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 Muslim Commercial Bank (MCB) 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 Muslim Commercial 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: a) Collecting cheques and bill of exchange for the customers. b) Collecting interest due, dividend, pensions and other sum due to customers. c) Transfer of money from place to place. d) Acting an executor, trustee or attorney for the customers. Providing safe custody and facilities to keep jewellery, documents or securities. e) Issuing of travelers cheques and letters of credit to give credit facilities to travel. f) Accepting bills of exchange on behalf of customers. g) Purchasing shares for the customers. h) Undertaking foreign exchange business. i) 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) Foreign exchange department 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: 1. Receiving Cash Book 2. Paying Cash Book 3. Token Book 4. Scroll Book 5. Cash Balance Book When cash is received in counter, it is 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 A/C (CD): 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 SAVING BANK A/C (SA): 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. KUSHALI BACHAT A/C (KBA): 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 SAVING A/C: 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. NOTE: PLS Saving, Kushali Bachat & PLS 365 saving accounts can be opened in foreign currency also. Before nuclear tests of 1998 these accounts were opened in four major currencies but now these are only opened in USD ($). However, now bank discourages the opening of foreign currency accounts because no forward cover risk is provided by State Bank of Pakistan (SBP) and all the loss in case of devaluation or depreciation in local currency has to be born by bank himself. This increase in cost has left foreign currency account of no use, therefore, now bank prefers to accept deposits in local currency rather in foreign exchange. KHANUM 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. HAJJ MUBARIK SCHEME: This is also very closely related with Khanum Bachat scheme. This was designed to help the persons who are willing to offer Hajj but are unable to save required funds. In this deposit schemes, 2 or 3 years agreement is entered with a customer. During this time he keeps on depositing monthly deposits and his account is charged with the accumulated profits calculated on 6 monthly basis. The scheme is so designed that total amount to be received at the end of this scheme comes equal to the anticipated cost of offering Hajj at the end of tenor. Zakat & withholding tax are deducted at the time of payment. MONTHLY KUSHALI SCHEME: This scheme is similar to CGC in the sense that an initial deposit is made in this case also but instead of lump sum payment at the end of the tenor, the person gets a monthly profit on his deposits. Under this scheme, the bank has guaranteed minimum rate of 1% per month but usually this rate is more than 1% per month. Zakat & withholding tax are calculated as per rules laid down by the government. PLS TERM DEPOSIT RECEIPTS (TDRS) 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.

SPECIAL NOTICE DEPOSITS (SND): 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. There are two types of SNDs, they are 7 days and 30 days notice deposits. The profit is paid on these deposits but it is nearly equivalent to saving account rate. FUNCTIONS 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. PROCEDURE FOR OPENING: Procedure for opening of account is as follows: A person, who wants to open any kind of account, has to fill in a printed form which is provided by the bank, free of cost. Separate account opening forms are used for different types of accounts. Bank usually requires that new depositor must be introduced by some one. An introducer can be any person known to the bank but preferably it should be a customer of the bank. However, the manager can open the account by his own introduction. If the manager is satisfied, it will obtain the full signature of the customer- on the form and specimen signature card, makes the first deposit, and issues the cheque book. The following are given to the customers: Pay-in-slip is the proof of deposit. For every payment which is. to be deposited in the bank, the pay-in-slip is to be filled up. The object of this book is to provide the customer with the bank's acknowledgment for receipt of money to be credited this account. Cheque Book contains a number of cheques. It enables a customer to make withdrawal from this account or make payment of various parties by issue of cheque. Pass Book is a copy of the customers account as appears in the books of the bank. Balance is recorded in this book by the Clerk. NOTE: 1) In case of partnership account partnership deed should be attached. 2) In case of companies memorandum and article of association, certificate of incorporation, certificates for commencement of business, list of directors and board resolution for opening of account is also obtained from the customer. 3) Accounts of Trusts, Executors & Administrators can also be opened but with the prior approval of the Head Office. 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 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 COLLECTED 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 SDEPARTMENT: 1. To accept Transfer, Transfer delivery, clearing and collection cheques from the customers of the branch and to arrange for their collection. 2. 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. 3. 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. COMMON PROCEDURE FOR ALL CHEQUES: i) Receiving and scrutinizing the cheques and other deposit instruments, and the pay-inslip at the counter.

ii) Fixing the stamps. iii) Scrutiny and receipt by the authorized officer. iv) Returning the counter file to the depositor. v) Certificate and confirmation by the officer in charge of the department. , vi) Separating the cheque into transfer, transfer delivery, and clearing cheques. SCRUTINY OF CHEQUES a) The instrument should be neither stale/ nor post-dated. b) If the instrument is crossed not negotiable it can be for the third party (an endorsee of an order cheque, or a holder of bearer cheque). c) The Instrument should not bear any unauthorized alternation. d) The instrument should not be mutilated. e) The amount in words and figures should be same. f) The instrument should be drawn on any local branch. g) If cheque is "crossed Account Payee's" only or "Payee's Account", it should only be accepted for collection for the payee's account. h) The cheques or drafts should not be crossed specially to any other bank. i) A cheque payable to a firm should not be accepted for credit to a partner's account. j) A cheque payable to one of the joint account holders should not be collected for the joint account without the payee's endorsement, or consent. k) A cheque drawn by a customer in the capacity of agent, Attorney, or Manager of his company or firm, should not be collected for credit to his personal account. l) Pay orders, although negotiable should not be collected for third parties. m) Do not collect an instrument in the account of an agent or of the servant of the payee or endorsee of the instrument. n) Not transferable" instruments, like Telegraphic Transfer, or Mail Transfer Receipt, Pay-slips, and Treasury Receipts, should be collected for a person other payee. o) If an account is new or the balance or operation of the account is not satisfactory, satisfy your self about the title of the customers to the instruments before accepting the deposits. p) Branch agent's permission should be obtained before accepting a third party cheque or draft for the credit of the member. q) If the payee is a Government Department, Government Official, or a trust account the instrument cannot be collected, but for the payee's account. r) If the payee of an instrument is UBL, it can be collected for credit of the drawers account, or the amount of the instrument may be utilized as desired by the drawer in writing. s) Cheque payable to a trust, account should not be collected for credit to a trustee's account. t) All the endorsement should be regular, and no endorsement should be missing. Note: No charges are charged by the bank for this purpose. LEDGERS OF DEPOSIT DEPARTMENT: The following types of ledgers are concerned with deposit departments: 1. Saving Ledgers 2. Current Ledgers

3. Profit & Loss Sharing Ledgers 4. Fix Deposit Register 5. S.N.T.D. Register 6. Call deposit register 7. Cumulative deposit certificate register 8. Cash book 9. Daily profit and loss summary book 10. Officer spaceman signature book 11. Voucher register However, in computerized branches all these ledgers are no more there but only day books are maintained. The rest of the work is done on computers. 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. 1) Loans 2) Cash Credits 3) Overdraft 1) 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; A) 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.

B) LOAN AGAINST PLEDGED OF STOCK: In case of advancing such types of loans, the following precautions are dept in the mind: i) Stock pledged must be readily saleable ii) Products should be readily saleable iii) Advance should be within the borrows means REQUIREMENT FOR LOAN: For granting loan to any party or individual, the bank checks following particulars of the client: 1) Credibility 2) 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. 2) CASH CREDIT Cinder 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: 1. ADVANCES AGAINST PLEDGE STOCK IN TRADE OR PRODUCTS When a 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 product are placed under the bank's lock or the document of title are duly endorsed to the bank by the borrower. 2. HYPOTHECATION OF STOCK ON FINISHED PRODUCTS: 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. 3. MORTGAGES OF PROPERTY: Title deeds of immovable property are accepted by the bank only as collateral security or alternatively as unauthorized security. MODES OF CREDIT FACILITIES There are two types of facilities

A FUNDED FACILITY 1) Running finance 2) Cash finance 3) Demand finance 4) Payment against documents 5) Finance against imported merchandise 6) Finance against trust receipt 7) Export finance 8) Foreign bill purchased 9) Others NON FUNDED FACILITY 1) Letter of credit 2) Letter of guarantees 3) Bid bonds 4) Performance bonds 5) Other facilities

REMITTANCES DEMAND DRAFT 1) Demand draft is a written order drawn by a branch of a bank upon the branch of same or any other bank to pay certain sum of money to or to the order of specified person 2) Demand draft is a negotiable instrument. 3) Legal provisions are same as that of cheque. 4) It is to be ensured that purchaser can at least sign. 5) Thumb expression is not accepted on DD 6) The following are the parties. a) purchaser b) issuing branch c) drawee branch d) payee A demand draft may be issued against the written request of the customer before issuing it must be seen that the demand draft is in order. SCRUTINY OF APPLICATION The DD application must be scrutinized by the counter clerk in respect of following points. A There should be branch where payment is to be made. B full name of payer should be mentioned C amount in words and figures must be same D application to be signed by the purchaser

TELEGRAPHIC TRANSFER Transfer of funds from one branch to another branch of the same bank or upon other bank under special arrangements. Telegraphic transfer is not negotiable The funds are not payable to bearer Minor cannot avail this facility PARTIES Following are the parties involved Applicant Drawing branch Drawee branch Beneficiary Full name of the beneficiary or account number should be mentioned in the application form. Instruction regarding mode of payment should be obtained. A record in the remittance outward register should be maintained. All the remittance must be controlled through number. MAIL TRANSFER Transfer of funds from one branch to another branch of the same bank with in or out side the city is called mail transfer. Mail transfer is not negotiable The procedure is same as for DD All precautions must be observed PAY ORDERS Pay order is meant for bank own payment but in practice they are also issued to customers. A pay order is written authorization for payment made in a receipt form issued and payable by the bank. To the person named and address. The following are the parties A purchaser B issuing branch C payee Charges must be recovered at prescribed rate. Pay order should be prepared like demand draft. A record of all issued and paid should be maintained. Credit voucher should be prepared 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. MCB WEB SITE MCB has also initiated its own website on internet with the address. www.mcb.com.pk

MISCELLANEOUS PRODUCTS AND SERVICES OF MCB Following are some products of MCB that are introduced by Musing Commercial Bank after privatization. 1) MCB RUPEE TRAVELLER 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 FEATURE: a) Minimum amount of investment shall be Rs.0.010m and the maximum amount of investment would be Rs. 1.000m. b) Khushali Certificates can be purchased by individuals (singly or jointly) or by the Proprietorship/Partnership concerns or Companies, etc. in their name c) The Khushali Certificate will be of five years maturity. d) 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. e) Zakat will be deducted wherever applicable on yearly basis whether you will be receiving your profit or encashing your certificates. f) 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: FEATURES: a) 8% rate of return per annum. b) Returns calculated on daily.

c) Average balance and paid half yearly. d) Introduced first time in Pakistan. e) The facility of helping account holders pays utility bills (electricity, telephone and gas) through their account. No queues. No delays. 4) PRIME CURRENCY ACCOUNT SCHEME: Launched to attract deposits in foreign currencies. US Dollars, Pound Sterling, Euro and Japanese Yen. FEATURES: a) Owing foreign currency account under the Prime Currency Scheme allows you to earn attractive rates of interest in foreign currency. b) You have a choice between opening this account in your personal name and opening it under joint names. c) Whether you are a resident or a non-resident Pakistan, MCB Prime Currency Scheme invites all to operate a foreign currency account. d) Foreign nationals and foreign companies can also open a foreign currency account under the Prime Currency Scheme. e) Your foreign currency account can be opened in four global currencies: The United States Dollar, the Pound Sterling, the Japanese Yen and the Euro. f) Travellers Cheques and Foreign Currency Notes can also be issued to holders of persona! and Joint accounts. g) Remittance from abroad, Travellers Cheques, Foreign Currency Notes and Foreign Exchange generated by encashing F.E.B.Cs may be deposited in these accounts. h) Rupee Loan facility will also available against this account. i) 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. j) 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. k) The Prime Currency Scheme is exempt from al! forms of taxes including Income Tax, Wealth Tax and Zakat deductions. l) MCB Prime Currency Scheme is a world in itself. MCB - committed to working for your convenience - offers the foreign currency account facility at more seventy of its branches all over Pakistan. 5) 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. 6) 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. 7) 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. 8) 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. 9) 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. 10) 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. 11) 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. 12) UTILITY BILLS COLLECTION With the aim of extending this service to wider range of customers, the number of MCB branches collecting Utility Bills more than 900. 1. MCB Mobile 2. Islamic Banking Services 13. MCB MOBILE Banking at your fingertips. Dial in anytime to get information regarding balance and mini statements. 14. PYARA GHAR Flexible and competitive home financing facility with options of home purchase, construction and renovation. 15. 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. 16. MCB CAR CASH

Car financing and leasing at competitive rates with flexible options Carcash finances both semi-commercial and non-commercial vehicles for personal and business use. 17. MCB LOCKERS The best protection for your valuables. Lockers of different capacities are available nationwide. Objectives of MCB The following are the objectives of Muslim Commercial Bank Limited. CREATING AND MANAGING VALUES. The first objective of Muslim Commercial Bank Limited is to create and mange the values, which is one of the back bone of the objectives of any well organized and managed organization. HUMAN CAPITAL. The second objective of Muslim Commercial Bank is to take care of the Human capital which is a necessary thing for the development and prosperity of any well established organization. BEST PLACE TO WORK. The third objective of Muslim Commercial Bank Limited is to make it a place which is much feasible and comfortable for employees of the bank. The MCB is always conscious in developing such place where employees of the bank feel easiness. TECHNOLOGY. The forth objective of Muslim Commercial Bank Limited is to bring new and latest technology in the operations of the bank. At MCB, technology has a direct relation with your needs; it is a means for creating value and convenience for the customer. Over the last few years MCB has invested heavily into strengthening its technology backbone. Today it is leading the way in banking technology and setting new standards for the banking industry; penetrating into the local market, listening to the needs of the people and educating them of simple financial products and services that create both value and convenience. MCBs strength lies in providing a technological base at the grass roots level of the society with a challenge to educate and assimilate such systems across vast cultural and economic backgrounds. With over 768 automated branches, 243 online branches, over 151 MCB ATMs in 27 cities nationwide and a network of over 16 banks on the MNET ATM switch, MCB continuously innovates new products and services that harness technology for the customers benefit. UNDERSTANDING & RELATIONSHIP. The fifth and very important objective of Muslim Commercial Bank Limited is to create such an environment which is suitable for creating understanding and relationship between the employees, thus going towards the way of development and prosperity. Over the years, MCB has fostered strong bonds with its customers. Understands them; their needs. They feel comfortable with MCB; its their bank; it responds to them; listens to them; partners with them; grows with them. At MCB, banking is all about being there for people, making a home in their hearts-continuously building relationships on mutual trust and confidence. We understand that relationships are about expectations-our products and services are based on your customers, expectations. Be it financing for personal or

business related needs, funds transfer and trade related facilities or need for different types of deposit accounts, MCB offers you a variety of products and services customized to satisfy your individual needs. UNDERSTANDING CONVENIENCE. The next objective of Muslim Commercial Bank Limited is to make understanding a convenient thing for the whole environment of the bank, for the purpose of boosting up its values and prosperity in such a competitive environment. Convenience is what the customer is looking for; and this is what we at MCB are continuously striving to provide. Whether it is the 24 hours cash convenience of our ATM network or the easy availability of financing requirements or simple opening of account, MCB has tailored its products and services to make your life easier. MCB knows the particular needs of its diverse customer base d continuously develop products and services that fulfill these needs. UNDERSTANDING RELIABILITY. The last but not least objective of Muslim Commercial Bank Limited is to make an environment which have an understanding of reliability in the whole structure of the bank. With a strong financial base, a promising team and the right resources, MCB has proved to be a reliable partner indeed. MCB understands the special needs of the business, trading and agricultural sectors. Strategically located branches in small towns and cities provide warm services and advice to the small businessmen and local traders. MCB speaks their language; it understands their needs and provides tangible results. By responding in a timely manner with a flexible approach, MCB provides its clients with the reliable financial service and support they require to successfully achieve their business objectives. With a solid foundation of over 50 years in Pakistan and having recently completed 10 successful years of privatization, MCB is strongly positioned to lead the banking sector in the new millennium. You can feel safe in our hands. BRANCH NETWORK The following is the Branch Network of Muslim Commercial Bank Limited. Sector wise position of circle, As on 30-12-2002 Consumer Sector 810 Branches.

Commercial Sector 210 Branches

Corporate Sector 20 Branches Overseas Branches 4 EPZ Branch 1 Total Branches 1045

INFORMATION ABOUT MY BRANCH I did my internship in Muslim Commercial Bank Limited Grain Market Branch, Renala Khurd.And some important informations about my branch which I observed are as follows: MANAGEMENT OF THE BRANCH BRANCH MANAGER GHULAM MUJTABA ACCOUNTANT MUHAMMAD SADIQUE GRADE ONE OFFICER MALIK TUFAIL CASHIER WAHEED AHMED HEAD CLERCK M. SHAFIQUE JUNIOR CLERCK M. ASIF PEON JAMEEL SECRITY GUARD M. ASLAM SWEEPER IFTIKHAR AHMED TRAINEE ABDUL SATTAR AMIR OTHER GENERAL INFORMATION DEPOSITS: The total deposits of this about to 207.10 million. NUMBER OF ACCOUNTS: Accounts in this branch of MCB are as follows: CURRENT ACCOUNT: Total numbers of current accounts are 1049. PLS ACCOUNT: Total numbers of profit and loss accounts are 2120. KHUSHALI BACHAT ACCOUNT: These are about to 600 accounts. REMITTANCE: Total remittance of this branch is 26.22 million. NO. OF VOUCHERS: The vouchers which are transacted in this branch are as follows: TYPES DEBIT CREDIT Transfer 961 901 Clearing 591 810 Cash 1754 1389 Rate of interest 4.45%

Maximum 9% That gives to this year. RATE OF INTEREST: The rate of interest provided by such bank is minimum 4.45% and maximum 9%. FINANCING: Mainly, the short term financing schemes are being dealt here. CAPITAL: Capital of branch is treated in its Head Office. REVENUES: The total revenues of this branch are near to 11.25 million. WORK DONE BY ME In the Muslim Commercial Bank Ltd. I really enjoyed working with the staff of Ghalla Mandi Branch Renala Khurd and having 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 feel highly indebted to work in the Renal Khurd Branch on the request of the manager of that branch Ch. Abdul Sattar, because I learnt a lot in that branch. During my internship training in the MCB as I early mentioned that I have worked in different departments & seats and learnt the followings. UTILITY BILLS COLLECTION Muslim Commercial Bank Ltd. collects utility bills on behalf of WAPDA, Sui Gas Companies, and Pakistan Telecommunication Corporation Limited by putting the stamp on the utility bills Paid, Date of payment, Signature of the officer receiving the utility bills. After receiving utility bills a list is made on the form which is called Bills scroll form. One copy of the scroll is with the bank for evidence whereas the original copy with the receipt of the bills is sent to the billing department of the respective corporation. The bank charge commission on the bills. OPENING NEW ACCOUNT BASICS 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 establishment of a contractual relationship between the banker and the customer. By opening an account at a bank a person becomes a customer of a bank. Further I am going to express the basic requirements and steps involved in the opening of an account.

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 customers 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 Ladbroke & Co. V Todd (1914), the banker did not obtain introduction at the time of opening the account, and it was construed a negligence within Section 82 of the Bills of Exchange Act 1882. 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. HOW TO OPEN AN ACCOUNT (IN GENERAL) Before opening an account in MCB I observed that the following points must be considered in this regard. 1. Another account holder of the bank should properly introduce the new customer. 2. The account holder should sign the account opening form in the presence of bank officer and the signature is duly verified. 3. A copy of identity Card is required by Bank. 4. Against submission of the Banks 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. 5. Each account shall be allotted a distinct number that is to be quoted in all correspondence with the bank relation to the account. 6. Minimum amount to open an account is required regarding the nature of 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 1. Title of Account 2. Full Name of Applicant 3. Occupation 4. Address 5. Telephone No.

6. Currency of account 7. Nature of Business 8. Introducers Name, Address & Signatures 9. Special instruction regarding the account 10. Initial Amount of the Deposit 11. Signature of the applicant PROCEDURE TO HONOUR A CHEQUE During my internship training in the Muslim Commercial Bank Limited, I observed and found Cheques are received for the following purposes. i) For Cash payments ii) For transfer(from one account to another account) iii) For Clearing I) FOR CASH PAYMENTS Cheques which are presented on Bank counter must be checked in the following way: 1) Date. 2) Signature of Drawer. 3) Signature of Payee. 4) Whether Bearer has cancelled. 5) Whether Payee account duly is there. If condition 4&5 exist then check the signatures of Drawer. 6) Match the figure and wordily amount of cheque. When all above matters are satisfied then come to the Token register and check: 1) Token number. 2) Cheque number. 3) Amount of cheque. 4) Particulars. Two stamps are put on cheque. a) Cash Payment (on the face of cheque). b) Stamp for Token (on the back of cheque). On stamp which is put for token their details are as follows: Token number. Time of giving token to client. Signature of token giver. Note: Payment is also made when cheques of same branch account is presented for transfer to other account in same ranch along with cheque for payment.

II) CHEQUE FOR TRANSFER: When cheques are presented to be sent for collection and drawn on bank situated within the city then there are three stamps to be put on face as well as on back of cheque. a) Crossing Stamp (face). b) Transfer Stamp (face). c) Bank Manager Stamp (back). Only in MCB branches. CHEQUES FOR CLEARING: There are two stamps put on each cheque, sent for clearing: a) Crossing Stamp. b) Manager Stamp. CHEQUES IN COLLECTION: When cheques received in clearing are intra city then these are controlled under CC. First of all, these cheques are recorded in day book then allotted number and then serial number. Then a performa is prepared in which Bank on whom was drawn, cheque number, amount, beneficiary name are recorded. After completing that performa cheque is posted along with performa. CLEARING Following information is entered in clearing register. a) Name of favoring party. b) Name of bank on whom drawn. c) Branch. d) Cheque number. e) Amount. Clearing is sent after entering in register. In clearing register future date and day is putted. Cheques and vouchers are then separated and Cheques are sent for clearing. Clearing credit vouchers are entered on clearing sheet. Such credits are balanced by giving debits to cheques received in clearing from other branches. At the beginning of the day clearing return sheet is received. Vouchers are made if 1. Clearing received is more than clearing delivered then Credit voucher. 2. Clearing delivered is more than clearing received then Credit voucher. On the same day, credit vouchers sent for clearing are entered on the sheet's credit side. Cheques are sent to NIFT after taking them on calculator, their total amount along with total number of instruments. A summary is prepared and sealed after noting the number of seal in summary. Telephonic Transfer DD- Demand Draft PO- Payment Order For TT, the account of beneficiary must be there in branch. DD is also prepared and beneficiary can get payment.

First of all, Performa is filled by purchasing party along with cheque or cash payment. When cheque is received it is first posted in computer section in order to check the balance of account. After posting the bank officer calculate tax if National Tax number is not there. i.e. Rs.100000 @0, 1% More than Rs.40000 @0.4% Commission and postage charges are also calculated. These are paid in cash or otherwise by cheque. ISSUANCE OF CHEQUE BOOK During my period of internship in MCB i observed that when a account is opened then a cheque is issued to thecustomer for drawing his money at per rules. Following procedure is adopting for the issuance of cheque. 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 clients 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. RUPEE TRAVELLER CHEQUES: RTCS When RTCs are to be issued payment is received in cash or by cheque, tax @0.03% is charged id National Tax number is nor available. RTCs are issued in consecutive number of face value of v Rs.1000 v Rs.5000 v Rs.10000 v Rs.50000 v Rs.100000 Specimen signatures of buyer are taken and clearing slip is in four pages. One is sent to Head office, one to RTC division, one for bank record and one for client. If client wants immediate payment of RTCs then he will bring RTCs with two s

Muslim Commercial Bank Ltd MCBS PERFORMANCE IN COMPETITIVE BANKING SECTOR & ITS PRODUCTS & SERVICES AT MCB PAKISTANI CHOWK BRANCH LARKANA AUTHOR SHAFEEQUE REHMAN MEMON ROLL NO: 02 M.COM (FINAL) MASTER OF COMMERCE SESSION 2008 2009 The report is being made for the fulfillment of course the course No: 600 Business Internship Report of M.Com (Final). The Business Internship is prepared on MCBs performance in competitive banking sector & its products & services at MCB Pakistani Chowk Branch Larkana. I would like to thank the following people at MCB Pakistani Chowk Branch who provided me help to learn as much as possible during a short span of time. Mr. Nazeer Ahmed Shaikh (Branch Manager) Mr. Aamir Ali Mangi (Operation Manager) The Business Internship Report is prepared under the supervision of Professor Dr. GHULAM MURTAZA MAITLO Chairman Department of Commerce, Shah Abdul Latif University Khairpur, Mirs.

I would like to extend my gratitudes to my teacher for his advice, encouragement and valuable suggestions which made it possible for me to complete my Business Internship Report. I | business internship report The purpose of research work is to analyze the organization and the performance of MCB Ltd. since 200809. This Business Internship Report is prepared on MCBs performance in competitive banking sector & its products & services. The Business Internship Report contains Executive Summary, Introduction, History of MCB Ltd, Product & Services of MCB. During the Internship, I worked in various operations as general banking including cash operation, clearing remittances, ATM, account opening procedure and advances. The bank will have to work hard and to meet the challenges of competition and to satisfy the customer to accelerate the business. In this report primary and secondary data is used. In primary data the information is collected by getting briefings from Branch Manager and from the Operation Manager and in secondary data published literature of MCB and the electronic data on MCBs website. II | business internship report

MCBS PERFORMANCE IN COMPETITIVE BANKING SECTOR & ITS PRODUCTS & SERVICES AT MCB PAKISTANI CHOWK BRANCH LARKANA. TOPICS PAGE #: Acknowledgement I Abstract II Table of Contents III Executive Summary 01 About MCB 01 Our Vision and Mission 02 Vision Statement 02 Mission Statement 02 Introduction 03 Achievements 03 Company History 03 Main Departments and Their Jobs 04 General Banking 04 Remittance 04 Pay Order 04 Demand Draft 04 Mail Transfer 05 Telegraph Transfer 05 Payment of Pay Order and Demand Draft 05 Cancellation of Pay Order and Demand Draft 05 Vouchers 05 Inward Clearing 06

Outward Clearing 06 Token 06 Issuance of Cheque Books 06 Issuance of ATM Cards 07 Cancellation of ATM Cards 07 Sale of RTC 07 Short Notice Term Deposits 08 Amount, Rate, Number of Days / 365 Days 08 Call Deposits 08 Foreign Exchange 08 LCS Establishment 08 Payment or Retirement 08 III | business internship report Foreign Currency Deposits 08 Foreign Remittances 09 Advances / Credit 09 Basic Banking Account 09 Pak Rupee or Foreign Currency Account 10 Saving Account 10 MCB Rupee Maximizer Account 10 Current Account 10 Khushali Bachat Account 10 MCB Enhanced Saving Account 10 MCBs Partners in Bill Payment 11 Investment Banking 11 About Remit Express 11 Features 12 Personal Loan 12 Products and Services 12 On-line 12

MCB Full Day Banking 12 365 12 MCB Special Rupee Term Deposits 12 MCB Lockers 13 MCB Remit Express 13 MCB Islamic Banking 13 MCB Cards 13 Cirrus 13 Maestro 13 MCB Virtual Internet Banking 13 MCB Call Centre 14 MCB Mobile Banking 14 MCB ATM 24-Hour Cash 14 MNet 14 MCB Smart Cards 14 MCB Easy Bill Pay 14 Corporate Financing 14 Instant Financing 14 MCB Rupee Travelers Cheque 15 MCB Business Sarmaya 15 MCB Pyara Ghar 15 MCB Car4u 15 Six Years Progress 16 Balance Sheet 18 Profit and Loss Account 19 Cash Flow Statement 20 Statement of Changes in Equity 22 Conclusion 24 Recommendations 25 Bibliography 26

Copy Right 27 IV | business internship report ABOUT MCB MCB (Formerly Muslim Commercial Bank Ltd.) is the largest private sector bank in Pakistan. The Adamjee group incorporated in 1948. It proposed during the 1950s and 60s. In 1975 it was nationalized with all other private sector bank. Then 1991 it was privatized. Since the bank has been headway in improving of technology. In the year 2006 bank name was changed to MCB Limited. The bank is now included as one of the top most bank of the nation. MCB has been awarded as a Euromoney Award 2008 for the "Best Bank in Asia" The Chairman of MCB is Mian Mohammad Mansha and the President / CEO is Mr. Atif Aslam Bajwa. MCB is one of the leading banks of Pakistan with a deposit base of about Rs. 280 billion and total assets of around Rs.300 billion. Incorporated in 1947, MCB soon earned the reputation of a solid and 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 and a nationwide distribution network of 1,026 branches, including 8 Islamic banking branches, and over 300 ATMs, in a market with a population of 60 million. 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. I have learnt a lot in Pakistani Chowk Branch about Opening of Accounts, Clearing and Transferring of Cheques, Issuing the Cheques Books, Demand Drafts other Documents etc. The exposure has given me a lot of knowledge especially about consumer banking operations in branch. Bank was previously working on MIBs software. In the year 2004 bank introduced new latest software SYMBOL. Now most of the branches located in Karachi, Lahore and Islamabad regions are working on SYMBOL software. MCB is the leading entity of the country that has always been at the forefront of economical, technological, financial growth and stability. 01 | business internship report OUR VISION & MISSION To become the preferred provider of quality financial services in the country with profitability and responsibility and to be the best place to work 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. 02 | business internship report Banking industry is one of the fasting growing industries of the last decade. We have seen many ups and downs in the banking industry. This is the requirement of Shah Abdul Latif University to do Eight Weeks Internship in any organization to gain practical exposure of the theoretical aspects studied in the semesters. MCB is one of the leading banks of Pakistan with a market share of 12.5%. It is also the pioneer in innovative consumer banking in Pakistan. It is the largest private sector bank in Pakistan. It is the most preferred provider of quality financial services and is usually considered the best place to work. It has developed a large stable deposit base. The bank today boasts of largest online branch and ATM network in the country. ACHIEVEMENTS MCB is the only bank in Pakistan that has achieved 7 Euro Money Awards and 5 Asia Money Awards for being The Best Domestic Commercial Bank in Pakistan, along with several other Awards including the Best Trade Finance of Pakistan for two consecutive years. These accolades are the proof of our consistent effort in providing the customers with utmost care and quality. COMPANY HISTORY Muslim Commercial Bank Limited. (MCB), the largest private sector bank in Pakistan. Incorporated in 1948 by the Adamjee group, MCB soon earned a reputation of solid and conservative financial institution. During the 1960s the bank grew rapidly with a concentration on trade finance products. In 1947, MCB was nationalizes along all other private sector banks. MCB was the first bank to be privatized in 1991 during the Nawaz Sharifs government financial sector deregulation policies. During the first five years, the private management concentrated on growth utilizing its extensive network of branches and developed a large and stable deposit base. Since privatization, the bank has made tremendous headway in improving the operational efficiency through human resource development and employment of technology. The bank today boasts the target online brand and ATM network in the country. MCBs main focus remains on consumer banking and its growing reputation as a full service provider gives

the bank an edge in front of increased competition in the banking sector in Pakistan. With a network of over 1200 branches and a team of dedicated professionals, MCB with an international outlook and a regional focus ensures prompt customer service and innovative solutions to business and personal needs. 03 | business internship report The consumer banking provides customers with innovative saving schemes, products and services. The ATM network is the largest in Pakistan and the Pak Rupee Travelers Cheques are market leaders. MCB was the first to introduce the photo card with the introduction of MCB Master Card. Corporate banking ensures assistance from a dedicated team of professional financial advisors for underwriting, project finance or corporate advisory services. MAIN DEPARTMENTS AND THEIR JOBS There are three main departments in any branch of MCB GENERAL BANKING FOREIGN EXCHANGE ADVANCES/CREDIT GENERAL BANKING General banking deals with following services: REMITTANCE It is transfer of funds. Funds can be transferred in shape of pay orders, demand draft, mail telegram and telegraph transfer. Payments of fees of different organizations, fulfillment of tenders, and collection of funds are the main functions of remittance. Maximum part of general banking depends on this department. Issuance of different kinds of remittance: PAY ORDER Pay order is the property of person/company that has to take the benefit of the amount being pay ordered by the concerned person. Pay orders are made for the payment of fees, tender or issued for the payments of dealings. These are required for the proof of payments made between the bank and the customer in the favor of beneficiary. These are noted in printed block letters and yearly serial numbers are issued from computerized system. DEMAND DRAFT Demand drafts are made for the beneficiary for payments, funds etc, these are made for outstation branches of the concerned banks. An advice is also made for the confirmation of the draft send. These are also approved and safe way of sending amount to the beneficiary. These are also noted by computerized system and a serial number is issued from the computer system.

04 | business internship report MAIL TRANSFER Mail Transfer is made with in the city for transfer of amount. An advice is also made for the confirmation of the draft send. These are also approved and safe way of sending amount to the beneficiary. These are also noted by computerized system and a serial number is issued from the computer system. TELEGRAPHIC TRANSFER Telegraph Transfer is telegram message for transferring the amount from one branch to other branch. A message advice and a confirmation advice both are made with TT numbers that are issued for TEST. TEST depends on two steps: 1. First TEST is on Day, Date and Code Number of branch. 2. Second TEST is on Currency, whether Pak rupees or foreign currency, amount and TT number issued from manual registers and confirmed from computerized system. PAYMENT OF PAY-ORDER AND DEMAND DRAFT Pay-Order and Demand Draft both could be paid in shape of physical payment of cash and in case transfer of amounts; the amount could be transferred in the beneficiary account. In case of physical payment authorized signature of beneficiary are taken for the proof of amount being paid to him and in case of transferring of amount authorized signature of the beneficiary are checked and verified for reducing risks. CANCELLATION OF PAY-ORDER AND DEMAND FRAFT Any type of Pay-Order / Demand Draft is cancelled by the permission and instructions made by the beneficiary. The customer could only cancel the pay-order/demand draft as the verified signatures of beneficiary are present on the advice. VOUCHERS Vouchers are made for records and they should be completed in all respects, the amount, date, its head, particulars, amount in words, authorized signatures and contra advice or voucher should be present. Vouchers are advice either debit or credit slips. They are contra of each other. If any voucher of debit is passed its contra credit voucher should also be passed for the balancing of accounts, their respective sheets. 05 | business internship report INWARD CLEARING

It depends on those checks that are cleared inter branch and with in the city. As the concerned branch receive any type of clearing check first of all physical checking is taken place. For clearing procedure there should be two days margin. These cheques have their vouchers and the amount of the cheque and voucher should be identical. Than these cheques are stamped and noted on receiving sheet as well as feed in to the computerized system. OUTWARD CLEANING It depends on those cheques that are cleared out side the city. For outward clearing cheques are send because the home branch has there accounts but checks are of other banks. Contras of these cheques are vouchers that are recordrd in the home branch. TOKEN Token is the process of different steps of checking of the cheque: 1. PHYSICALLY CHECKING First of all the cheque is physically checked. 2. Date It should not be advanced of the latest date, date should be limited to only past six months. 3. AMOUNT Amount in which words and figures should be written in clear writing. Any kind of over writing and cutting should be prevented. Otherwise it would not be passed and returned to the customer. 4. PAYEES / BEARER CHEQUES If the cheques are payees accounts head or they have marked bearer then these cheques are not labeled token. 5. VERIFICATIION OF SIGNATURES Signatures are checked as well as verified. In case of other representative of the account holder brings the cheque then two signatures of that person are taken. 6. STAMPS After physical checking of the cheques they are stamped. ISSUANCE OF CHEQUE BOOKS Any account holder that has opened the account he/she could credit his/her account and for this purpose there should be a cheque book, so he/she could be able to credit the needed amount whatever he/she wishes. For the issuance of the cheque book a person is advised to fill a requisite slip with his/her full names and the account number with two verified signatures. These signatures are checked and then another requisite slip prepared by the bank staff send to the NIFT, and it issues the printed cheque books after completion of the procedure in two or three days. 06 | business internship report

Account holder can take it by singing on the issuance register or if the absence of the account holder another person could also take the cheque book only if he/she has authorized signature of the account holder. When the cheque books are issued they are feed in the computer system from the requisite slip so when the cheques are given for the credit/transfer of amount they could checked. In this way neither the cheques could be repeated nor could the invalid cheques be claimed. ISSUANCE OF ATM CARDS Head office issues ATM (Auto Teller Machine) cards with their PIN (Personal Identification Number) codes and when the customer claims for their ATM card they are checked from the list that is also issued from the head office, and the claim is checked from the list and if the name is found than the cards are issued by taking a signature and their PIN codes are given to them by taking signatures on their ATM card forms. The ATM card has been activated by the number provided at or with the specific card. CANCELLATION OF ATM CARDS The Cancellation of ATM Cards becomes necessary in the following conditions: If folded or damaged Stolen PIN code missed or forgotten Card captured by the machine and expired If requested by the customer The cancellation or inactivity of the card is being processed by the request or instructions provided from the customer. SALE OF RTC The selling of the RTC has been described in step wise as follow: In this step the bank initially seeks the information whether the person is going to purchase the RTCs on cash or on account basis. If the transaction is based on account then initially the cheque has been cleared than if the amount is sufficient than RTC has been issued after deducting after the amount from the account. If the amount of RTC is more than Rs. 25000 than tax has levied by 0.3% in case of absence of the tax deduction form. After this the bank handed over a form for RTC sale dully filled by the concerned person and after this RTC number has been noted on the form as well as their amount and quantity. After this we note down the sold RTC in the concerned register. MCB Pak rupee travelers cheques the fastest way to carry cash for high value cash transactions. MCB rupee travelers, the market leader in the rupee travelers cheque market in Pakistan is celebrating nine years of leadership in July 2002. Launched in July 1993, MCB RTCs have been preferred choice of the rupee travelers cheques target market. With over 1.5 million satisfied customers in five years, MCB has been striving hard to package their product better and better each year. 07 | business internship report We now have RTCs with maximum security features, we have incorporated tele verification with the product where customers can call and check whether the RTC is valid. At the same time, our RTC team

anywhere in Pakistan ensures superior quality service. SHORT NOTICE TERM DEPOSIT There are short times either for seven days or for thirty days and the profit is calculated by the given percentage from the head office at the payment time. If the customer fails to complete the duration of seven days or thirty days then no profit is given. If any amount is outstanding, only in case of automatic continuity, then the profit is calculated for the whole period by the rate given from the head office multiplying from the numbers of days divided by the 365 for the one-day profit. AMOUNT, RATE, NUMBER OF DAYS / 365 DAYS Profit is calculated for the six months only for outstanding SND. Zakat is also deducted but if Zakat deduction form is submitted to the bank, no Zakat will be deducted then, 10% with holding tax is also deducted from the profit to calculate net profit. CALL DEPOSIT It is highly liquid instrument, it can be cashed at any time when needed. This instrument bears no profit on it. It is mostly used for the purpose of tenders. FOREIGN EXCHANGE LCS ESTABLISHMENT Any company can provide its documents containing e-form, bill of lading, short shipment notice in case of short shipment, packaging list etc. the information provided from the documents is recorded in the LC establishment portion or section in the computer. PAYMENT OR RETIREMENT When the transactions have been completed then approved documents from the concerned bank are sent to the home bank for the payment or retirement of the LC. These transactions have recorded in the payment or retirement section of the computer. FOREIGN CURRENCY DEPOSITS The Foreign Currency Deposit relates with the foreign currency accounts, cash deposit or credit and foreign remittances. 08 | business internship report FOREIGN REMITTANCES In this we received the messages through SWIFT for foreign remittances, which we record in their respective accounts, if these are relates with Pak rupees than it was transferred in Pak rupees with the latest rate and if this relates to the foreign currency than it is dealt with accordingly. The amount has been credited to the respective account and the head office has been debited against it. After crediting the amount to the respective account. All the subsequent entries have been made in the registers and also in the computer record as the system now have been upgraded on computers. As we are reporting daily to the head office, so an annexure has been maintained and faxed to the head office. ADVANCES / CREDIT

This department deals with the approval of different kinds of loans to different business entities. The loans, which are being approved by the department, are kept with some securities such as bonds, properties and any other type of asset, which is equally valuable or more than this as a guarantee. Every branch has its own limit, if the amount of loans is with in the limit of the branch then it is being approved by the branch but if the amount of loan is exceeding the limit then it has to make it approved by the head office. In this case the branch stored all the required papers and sent them to the head office for necessary action. If the head office approved the loan then mostly the period contains a year. And if the party requires more loan than after a year the loan has been re-approved required that they should have the limit. In case if the head office do not approve the loans then the return letter came back with the reasons of not approval of loan and if the reasons have been made approved by the concerned party then it could be sent again for approval. This whole process is recorded in the back remain with the bank until the party has not refunded all the amount of loan and bank has the authority to liquidate those assets for preventing it from loss. BASIC BANKING ACCOUNT In compliance with the directives of State Bank of Pakistan via BDP Circular No. 30, issued on 29th November 2005, the Basic Banking Account has been launched with effect from 27th February 2006. This product has been introduced to facilitate the low income group as well as the existing account holders who wish to convert their regular savings or current account into Basic Banking Account. The Basic Banking Account is a current account and can be opened with a minimum initial deposit of Rs. 1000/- only. Account holders will be allowed 2 deposit transactions (each cash or through clearing) and 2 withdrawals (cash or clearing) each month. All customer-initiated transactions over and above this limit will be charged a transaction fee. However unlimited free charge cash withdrawals are allowed through MCBs own ATMs. 09 | business internship report PAK RUPEE OR FOREIGN CURRENCY ACCOUNTS SAVING ACCOUNT MCBs Foreign Currency Savings Account offers you attractive returns on your foreign currency investment. Unlimited transaction facility, profit credited to your account on a half yearly basis. You can avail a credit facility up to 75% of the total deposits value. A foreign currency account can be opened at any of our foreign exchange dealing branches. MCB RUPEE MAXIMIZER ACCOUNT MCB Rupee Maximizer Account provides you an opportunity to convert your the recent changes in the economic scenario MCB launched the Rupee Maximizer Account exclusively for its Foreign Currency Account Holders. MCB Foreign Currency Account holders now have an opportunity to convert their Foreign Currency Account balances into Pak Rupees and earn a profit at the rate of 12.6% per annum. Other features include profits calculated on a daily product basis, no restrictions on the number of the withdrawals, no minimum deposit required. Special benefits include one free ATM card and locker facility free of cost. MCB Rupee Maximizer Account is being advertised in leading daily newspaper as well as local papers. Foreign Currency Account into Pak Rupee and earn profit at the rate of 12.6% per annum. CURRENT ACCOUNT MCBs Foreign Currency Current Account offers you the convenience of unlimited withdrawals i.e. access

to your funds whenever you want without any notice. There is no limit on the number of transactions you make in a day. KHUSHALI BACHAT ACCOUNT Open a Khushali Bachat or Dollar Khushali Account, both require low minimum income deposits plus you receive profit on daily product basis. Get a saving with current account facilities through saving 365 or double your investment through capital growth and receive monthly profits through monthly Khushali. MCB ENHANCED SAVING ACCOUNT Keeping in view the small savers, looking for higher returns on their savings, MCB introduces the Enhanced Saving Account (ESA). This account can be operated via all the channels available at the MCB such as Cheques, Virtual Banking, Mobile Banking, MCB Smart Card and ATMs/Point of sales all across Pakistan. MCB ESA, governed under PLS rules, can be opened with a minimum initial deposit of Rs. 5000 and the profit shall be calculated on an average basis maintained by the customer during that month. 10 | business internship report Following shall be the slabs used for profit calculation: If average balance is greater than Rs. 20,000 standard PLS rates will apply. If average balance less than Rs. 20,000 (or equal to 20,000) with up to 4 withdrawal transactions per month (excluding ATMs, PSO, and VB) 4.0% p.a. If average balance is less than Rs.20,000 (or equal to 20,000) with over 4 withdrawal transactions per month (excluding ATMs, PSO, and VB) then standard PLS rates will apply. The rates mentioned above are expected and shall be revised at least every six months. Average account balances can exceed Rs. 20,000 during a month. However, in that case, they shall be paid profit as per the standard PLS rates, as mentioned in slabs above. Profit shall be calculated on average basis and shall be credited to the account after each calendar quarter. MCBs PARTNERS IN BILL PAYMENT Pay your bills 24 hours a day, a day, 7 days, and a week. Make total payments of up to Rs. 20,000 per day. Carry out up to 10 transactions per day per card. Make either full or partial payments. Full payment is required for PTCL only. Recharge your pre-paid account for Mobilink, Ufone and Telenor as per their fixed slabs. Pay as a registered or non-registered user. Registration will help you avoid the time delay in entering details each time you carry out a transaction. Pay with MCB ATM Pay through MCB Virtual Pay through MCB Call Centre INVESTMENT BANKING Our investment banking team has emerged as a leading player in Pakistans investment banking arena. The team handles advisory, corporate finance and capital markets related transactions, within these areas the team has developed expertise in:

Private Placements Debt/Equity Underwriting Team Finance Certificates Loan Syndication Arrangement of Non-Fund Facilities Mergers and Acquisitions Privatization Corporate Advisory ABOUT 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. 11 | business internship report FEATURES Easiest and safest way to remit funds, remittance within 24 to 74 hours, personal delivery to the beneficiary, delivery confirmation to the remitter, message facilities for both parties. Your beneficiary will receive the amount even if he/she does not have an MCB account. PERSONAL LOAN The more you praise and celebrate your life, the more there is in life to celebrate MCB personal loan shortens the distance between your dreams and your celebrations. It is fast, flexible and affordable, speedy loan approval. No guarantor / security / collateral required. Borrow up to Rs. 1,000,000. 1 to 5 year tenures, partial and full adjustments allowed anytime during the tenure, optional insurance, equal monthly installments, lower interest rates, higher loan limits, loan amount renewed anytime after nine months. You as an individual can gain and benefit the through MCB consumer banking. In MCB you get friendly, efficient and attentive personalized banking services, a unique banking relationship experienced by each MCB client. PRODUCTS AND SERVICES ON-LINE The largest network of over 315 on-line branches in the country and growing. Providing customers with 24 * 7 real time on-line transaction facilities. MCB FULL DAY BANKING Enjoy the convenience of extended banking hours from 9 to 5, even on Saturdays, for satisfying your banking needs at all MCB Full Day Banking branches across the country where you are now served with a wide range of services through the day. 365

A deposit account for customers with substantial balances, offering profit on a daily product basis with the facility of unlimited withdrawals. MCB SPECIAL RUPEE TERM DEPOSITS MCBs Special Rupee Term Deposits offer a very attractive term investment option with ease and convenience. Tenors options available are of 3 months, 6 months, 1 year, 3 years and 5 years. You can also avail a credit facility up to 75% of your total deposits. 12 | business internship report MCB LOCKERS The best protection for your valuables. Lockers of different capacities are available nationwide. MCB REMIT EXPRESS International remittances with a two-way messaging facility delivered at your doorstop within 24 to 72 hours. MCB ISLAMIC BANKING MCB Islamic Banking provides Riba Free and Shariah Complaint solutions to various customer segments in a growing number of cities. With the help of Shariah specialists, lawyers and professional commercial bankers, we have the best solutions to cater your needs the Islamic way. MCB CARDS A local Point of Sale acquiring network facilitating acceptance of all major card brands. CIRRUS MCB Smart Card and ATM card holders can avail cash withdrawal facility at over 900,000 ATMS worldwide. MAESTRO MCB Smart Card and ATM card holders enjoy the convenience of shopping at over 5 million POS locations globally. MCB VIRTUAL INTERNET BANKING

MCB provides the convenience of banking on the internet. Whether at office, home or traveling log on to www.mcb.com.pk and enjoy 24-hour access to all your accounts at MCB for the largest array of services. 13 | business internship report MCB CALL CENTRE Call now for answers to your queries about banking services. ATM services, mobile banking services, RTC services, tele-banking services and MCB product information. MCB MOBILE BANKING Banking at your fingerprints. Dial in anytime to get information regarding balance and mini statements. MCB ATM 24-HOURS CASH The nations largest network of over 210 ATMs and growing. Get 24-hour convenience of cash withdrawal, mini-statement, bill payment and funds transfer services. MNET MNET is an electronic hub for ATM sharing plus other touch points. Members include 12 local financial institutions enjoying ATM sharing and bureau services. Pakistans largest operating switch with the highest transactions volume. MCB SMART CARDS MCB Smart Card - a secure instrument of payment, offering Cash Free convenience. It provides 24-hour direct access to your bank account and unmatched functionalities. MCB EASY BILL PAY MCB Easy Bill Pay is an easy solution to pay Utility and Mobile Phone bills. MCB ATM Card or MCB Smart Card holders can easy pay their bills through MCB ATMs, MCB Virtual-Internet Banking and MCB Call Centre with security and peace of mind. CORPORATE FINANCING Providing access to diversified financing options, including working capital loans, term loans, trade finance services and investment banking. INSTANT FINANCING Get a loan instantly at any MCB branch. Offering same day financing facility against liquid collateral at competitive pricing.

14 | business internship report MCB RUPEE TRAVELLERS CHEQUE The most widely accepted way to pay cash for travel-related purposes. A safe and secure way to make payments nationwide. MCB BUSINESS SARMAYA MCB Business Sarmaya is a Running Finance facility against your residential property. It offers Running Financing up to 20 million with low mark-up and BTF at competitive rates. MCB PYARA GHAR MCB Pyara Ghar is an ideal Home Finance product that lets you purchase, renovate or construct your home the way you have always wanted. Financing available is up to Rs. 20 million. MCB CAR4U MCB CAR4U Auto Finance is your move that gets you not only a car of your own choice but leads you to the best in life. It is affordable with competitive mark-up, flexible conditions, easy processing and above all, no hidden costs. 23 | business internship report During the study of internship, I drew the following conclusions. MCB limited has implemented a SYMBOL system which promises the efficiency growth of the bank. MIS and computerization of branches has enhanced the efficiency of the bank. Delegation of authority, wide branch network with ATM installation and wide participation of employees in the decision making provides the bank a competitive edge. The bank provides a conducive environment for career growth. The bank pays a too low rate of interest on deposits which in unattractive for its customers. There are too lengthy formalities and procedures involved in mortgage of properties offered as collateral to the bank. The MCB bank made substation progress, recording strong growth in revenues and earnings. The main derives were increase in outreach, strengthened human resources. Including changes at the senior management level, enhanced product portfolios, improved control and vigilant credit risk management. Our primary focus was our customers and we worked diligently through the year to increase satisfaction and

loyalty as the needs and expectation of our diversified base of customers continued to expand. A key initiative aimed at including a segment based approach to the overall business was the segregation of the retail banking group into commercial and consumer banking groups. This expected to help the MCB bank in providing customer centric solution in a more group generated healthy deposit and strengthened its SME lending. 24 | business internship report 1. Training can be provided with job rotations so each of the employees is capable of doing others work in case of emergency, this will ensure no delays are met. 2. As MCB earning a lot of profit stock options should be given to every employee. 3. Workers need more computer training. 4. MCB need to invest more in technology and bring all banking procedures up-to-date. 5. They should implement advance technology and make it one window shopping or one window service where each teller is capable of handling every transaction for example payments, deposits, transfers, bill payments, foreign exchange, ATM card issue and opening of new account. This will make MCB more proficient in customer service. 6. ATM network needs to be updated more to handle transfers, deposits, bill payments and print statements. This will free up a lot staff time.

25 | business internship report 1. News Letters 2. Magazines of MCB 3. Annual Report of MCB 2008 4. Website: www.mcb.com.pk 5. Review of President of MCB 2004 Page No: 08 to 12 6. Personal interview with Nazeer Ahmed Shaikh (Branch Manager) 7. Personal interview with Aamir Ali Mangi (Operation Manager) 26| business internship report Attention is drawn to the fact that the copy right of this report rests with author. This copy of report has been supplied on condition that any one who consults it is the understood to recognize that its copy right with its author and no information derived from it may be published without the prior written consent author.

This report contains material, which is the property of the MCB Limited, Karachi and is clearly marked as such. Although they have given me their kind permission for its reproduction. This material remains protected under their copy right. This report may be made available for consultation within University / Department of Commerce library and may be published on or lent to other libraries for the purpose of consultation. 27| business internship report