Internship Report

Submitted to:

Uog
Learnt From

Muslim Commercial Bank Ltd.

Railway Road Hafizabad

DEDICATION
I dedicated all my efforts to my parents and teachers. Their
prayers are always with me. I am also thankful to my all
friends who help me in every matters of life including my
studies during MBA.

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EXECUTIVE SUMMARY

The reason of this to explore and study the potential of banking in Pakistan and to gain
success in commerce field.
To gain and explore my knowledge and to enjoy the facility of internship that
is given by the Virtual University of Pakistan to become a successful commerce student, I
favored to do internship in MCB limited. MCB limited nationalized in 1947 become
traditional institute in south Asia, in these days MCB make progress very fast. I work six
week in different departments of MCB I really like the environment of MCB. During my
internship in MCB bank I worked in various departments and tried to gain more
knowledge about banking sector. I worked in Departments like Account Opening,
learning, Voucher, Loan, Cheque books Customer services, and Advances department. I
successfully completed all the tasks/duties that were assigned to me. During the course of
internship I learned about different functions performed by Account Opening, Cheque
book clearing vouchers, ATM and Advances department. I learnt rules and regulation of
the bank I also trained myself about dealing and communication with customers in my
training. I study the history and complete profile also study the organization sectors
Future Prospects of the organization. I also analyzed financial data that is also part of this
report. I learnt various things and then convert this information into report

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INTRODUCTION TO THE ORGANIZATION

MCB BANK LIMITED
I completed my internship from MCB (0191) main Railway road branch Hafizabad. My
report containing the main part of the MCB in which I tried my best to work and to gain
the knowledge about this which cover my report.
SECTORS OF THE MCB:
Currently MCB limited is handling and working in these main sectors.
1. Islamic banking
2. Corporate banking
3. Retail banking
4. Virtual banking

Introduction to the organizational sectors of MCB:

ISLAMIC BANKING
Under Islamic banking sector MCB provides a variety of services and offer Islamic
banking products. Customers can enjoy the facilities of account according to the Islamic
rules in which they can gain HALAL return in Al Makhraj saving account, and they have
the option of different types of accounts and others services under Islamic rules.
MCB provide the facility of deposit scheme they take care of that the investing and
accepting deposits form customers are in Islamic modes of financing.
CORPORATE BANKING
MCB provide corporate banking facilities to their honorable customers. In these sectors
they provide the information and motivate the people that can gain and get benefit and
enjoy the good banking services.
MCB provide the facilities of providing the loans according to the fulfillment and the
requirement of the banking rules. They give short term, long term and working capital
loans.
RETAIL BANKING
Retail banking is the sector of the MCB, in which Bank provides the facilities to
their customers. They facilitate their customers providing the facility about the account

basics; give the facility of self services channel, loans, cards traveler cheque and
remittance. In account basics they give the information about which one is suitable for
the customers, Offer the loans in loan provide the facility of Car4U and Agricultural loan,
cards like ATM cards and credit cards facility, services of mobile banking, bill payment.
VIRTUAL BANKING
MCB also provide the services of virtual banking. They provide
the facility of internet banking by use of internet you can handled the banking and
finance in any where and any time in 7 days of week and 24 hours online banking.
Bank provides the information of the accounts that are listed and provide the mini bank
statement. They also provide the facility of online payment of utility bills.

OVERVIEW OF THE ORGANIZATION

BRIEF HISTORY
MCB is now the leading bank in Pakistan. The bank was incorporated
with the aim to provide all the banking facilities to their customers.
When we see the history of the MCB bank the changes occurred in the MCB from July 9,
1947 they grow with time to time. MCB bank limited was incorporated in 1947, the first
head office of the bank was established in the Dacca and the first chairman appointed was
Adamjee. First the bank was incorporated under the Indian act, the MCB bank limited
was nationalized in 1947 and they soon earned the solid and traditional institute in South
Asia.
MCB bank limited is nationalized along with all private sector banks in
1947. In these days MCB bank limited grew under the leadership of Mian Muhammad
Mansha. Mr. M.U.A Usmani appointed president of MCB bank after the clearance of SBP
in 2010.
Muslim commercial bank has concentrated on improving services quality,
to compete with their competitors, utilizing its branch network and developing the
modern method of banking, maintain its large and stable deposit base, and their goodwill.

MCB BANK LIMITED MAIN OFFICE

MCB bank limited has main office in main gulberg Lahore.
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
efficient solution to create and

and

nurture long term relationship with our

valuable and honorable customers. In doing so, we ensure that our

shareholders can invest with confidence in our organization
OUR VALUES
Innovation:
We encourage and reward people who challenge the status quo and think beyond the
boundaries of the conventional. Our teams work together for the smooth and efficient
implementation of ideas and initiatives.
Excellence:
We take personal responsibility for our role as leaders in pursuit of excellence.
We are a performance driven, result oriented organization where merit is the only criterion for
reward.
Customer Centricity:
Our customers are at the heart of everything we do. We thrive on the challenge of
understanding their needs and aspirations, both realized and unrealized. We make every
effort to exceed customer expectations and satisfactions through superior services and
solutions.
ORGANIZATIONAL HIERARCHY CHART
In hierarchy chart of MCB, there are three levels of mangers includes

1. Top Level Manager

2. Middle Level Manger
3. Low level Manger
Top Level Manager Hierarchy Chart

Board of Directors

Chairman
Vice Chairman

Acting President
Members

Chief Financial officer

H. R. Managers
Risk & Portfolio Managers

I.T. Managers

Principal Office
Registration
Office

Middle level Manager Hierarchy Chat

MANAGER

SECRETARY

AUDITORS

SUPERVISOR

OFFICERS

CASHIERS

MESSENGER

PEONS

CLERKS

ASSISTANTS

OFFICEBOY

Low Level Manger Hierarchy Chart

(Branch Manager)
Furqan Saleem Danish

Operation Manager

Muhammad Imran

PRODUCT LINE

Remittance & Clearing

Imran Siddiqui

Cash officer
Muhammad Qasim

Customer Services
Officer
Madiha

MCB Accounts
Basic Account
Current Account
Saving Account
Foreign Currency Account
Smart Dollar Account
Saving 365 Gold
Special Rupee Term
Business Account
Smart Saving Account
Savings XTRA Account
Current Life Account
Basic Account
In MCBs Basic account, Basic Banking Account can be open with as little as Rs.
1000/- only. No minimum balance maintenance requirement etc.
Current Account
Discover the quick, easy, and convenient way to manage and use your money with
an MCB Current Account
Saving Account
MCB Saving Account offers you one of the most suitable ways to manage your hard
earned money.
Foreign Currency Account
MCB Foreign Currency Account offers you the option of earning attractive returns
on your foreign Currency Investment. Through MCB Foreign Currency Account you can
enjoy the confidence of operating an international account, locally.
MCB E-CARDS

MCB Visa Debit Card

MCB Visa

MCB Visa Prepaid Card

MCB VISA Debit Card

MCB VISA Debit Card allows the customers to enjoy unmatched convenience,
enhanced security and round-the-clock accessibility to their funds. The MCB Visa Debit
card offers innovative promotional schemes designed to reward the customers every time
they use the card to pay for shopping, dining, fuel, travel etc
MCB Visa Prepaid Card
MCB Visa Prepaid Card is providing convenience and control that will completely
change the way you transact. It can be used to withdraw cash, shop and make online
payments locally and internationally.
SERVICES OF MCB
Mobile Banking
MCB ATM Services
MCB Call Center
MCB Bill Payments
MCB Consumer banking
MCB Mobile Banking
MCB provide the facility of mobile banking to own customer. MCB mobile
includes Check account balances, View Mini Statements (last 6 transactions), Transfer
funds to any MCB account, Pay Utility Bill, Pay MCB Visa Credit Card Bills, Recharge
MCB Visa Prepaid cards, Pay mobile post paid bills, and Top up prepaid mobile
phones, Make donations to charities, Buy Insurance, Block their ATM Card for the day
etc.
MCB ATM Services
MCB has one of the nations largest ATM networks with 550 ATMs across the
country and still growing. MCB ATMs give you to access fast cash, inquire account
balance, transfer funds and pay utility and mobile bills/mobile top-ups from any of over
550 MCB ATMs in the country and much more.
MCB Bill Payments
MCB easy bill pay offers unmatched convenience to pay your utility and mobile phone
bills or re-charge your prepaid mobile phone accounts anywhere, anytime with security

and peace of mind. MCB Smart Card or MCB ATM Card Holder can easily pay their bills
or re-charge their prepaid mobile phone account etc.
MCB CONSUMER BANKING

MCB Pyara Ghar

MCB Car 4 U

MCB Personal Loan

MCB Pyara Ghar

Some destinations require a long wait, like waiting for a home of your own. But
with MCB Pyara Ghar it is now easy to step into your home and start living a real life.
MCB Pyara Ghar is an ideal Home Finance from your own bank that lets you Purchase,
Renovate or Construct your home the way you have always wanted.
MCB Car 4 U
Life in the fast lane can be really slow without a car. MCB Car4U not only gets you
a car of your own choice but is also affordable with competitive mark-up, flexible
conditions, easy processing and above all, no hidden costs etc.
MCB Personal Loan
MCB Easy Personal Loan provides you with the financial advantage to do things
you've always wanted to but never had the sufficient funds for. Personal loan include Buy
a car, Purchase a new TV and also Finance a better education for your children.
MCB AGRICULTURE SECTOR FINANCE
MCB is financing agriculture sector since 1973. Due to large branch network and
specialized staff posted in the branches, MCB caters to the financing requirement of the
farming community spread through out the country and facilitates in achieving increased
productivity. MCB has reinvigorated its agriculture financing products under the brand
name MCB Green Scheme. The scheme is designed and aimed at meeting all types of
financial needs of agriculture sector covered under extended list of eligible items.
Agriculture financing facilities are available through out the country at designated
Lending Branches. All types of financing are available for short, medium and long term
depending upon farmers choice and the nature of finance. MCB gives top priority to
small & medium size farmers so that they could be protected from the exploitation of
private money lenders.

MCB ISLAMIC BANKING

Islamic Banking Division was formed with effect from 1st January 2003, which in a short
span of time, has developed sufficient expertise, necessary infrastructure, information
technology, and manpower to run Islamic Banking Operations and offer Islamic Banking
Products.
MCB offers 3 broad Islamic fund based facilities:

Ijarah

Murabahah

Diminishing Musharika Equipment

MCB Islamic Ijarah

MCB Islamic Ijarah, similar to the English term 'leasing, is based on the Ijarah wa
Iqtina concept which means the sale of the asset to the lessee (customer) after the Ijarah
has matured. Currently offers 2 types Ijarah Products Car Ijarah and Equipment Ijarah.
MCB Murabahah
Murabahah is a contract between a buyer and a seller under which the later first
purchases the goods at the request of the former i.e., customer and then sells it to same
customer

after

adding

profit.

Murabah Sale Price = Cost + Expenses incurred + Agreed Profit

MCB Diminishing Musharika Equipment
Diminishing Musharika Equipment is a contract through which the bank and its
client participate in the joint ownership of a property. The share of the Bank is further
divided into a number of units and it is agreed that the client will purchase the banks
share periodically, thus increasing his own share until all the units of the bank are
purchased by him so as to make the client the sole owner of the property.
COMPETITORS
Growing industry becomes the cause of competition in the business
market. For attaining the monopoly competition is needed. MCB constructed herself to
compete his past and up coming competitors
COMPETITORS OF MCB BANK
MCB competitors are as following:
Habib Bank Limited
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Fasial Bank
Bank Alfala Limited
Meezan Bank Limited
Allied Bank
United Bank Limited
City bank
National Bank of Pakistan etc.

INRODUCTION TO ALL DEPARTMENTS

The main departments of MCB are as following:

Operations Department

Corporate Banking

Islamic Banking

Operations Department
Operations department is the most important department in the bank. It is also
known as the backbone department of the bank. Operation department of the MCB is
working very effectively and almost all the customers are satisfied with the service of this
department. Mr. Sohail Chima (Operations manager) is a qualified person which he is
controlling the entire staff member in the pleasant atmosphere. Number of employees
working in the operations department is so sincere in his/her work. Operations
department performs the function of account opening, clearing of cheques, deposits of
cheques, payment of cheques, lockers facility, chequebook issuance, transfer of funds as
well as foreign remittances.
Clearing department
Almost every bank provides a variety of services to its customers, from which
Clearing is the most important. Clearing of cheques is the function of operations
department.. In clearing bank transfers money from the branch of a same bank or any
other bank with the help of state bank clearing house.
In Clearing, bank collects the cheques of other banks, whether these banks
are in the same city or outside the city. Bank receives these cheques in the clearing

10

department, and later collects these cheques from the bank on which that are drawn by
NIFT/State bank.
Lockers
MCB provides the facility of lockers to its customers for safe keeping of
valuable instruments of customers like property documents, jewelry and securities etc.
MCB provide the facility of small, medium and large lockers to its valued customers.
Use of locker
Two keys are used to operate a locker

Master key

Customer key
A single key is of no use. Bank holds master key with itself for emergency

use. A locker is being operated with the help of both of these keys.. First of all, customer
has to sign in the locker register and then master key is used. After the master key,
customer key is plugged in to the locker and then customer is allowed to operate the
locker.
Cash Management Services
Branches of MCB in Pakistan are 900 plus which enable it to collect and payments
efficiently with its cash management services from the valued customers. This also
enables it to offer electronic fund transfer solutions including collect amounts, cross
branch on- line transactions etc.
Corporate department
Corporate department is also known as credit management department
Corporate department is an important department of the bank. This department deals with
the credits for the business purposes. This department has the responsibility to collects
and manages of all the credits smoothly by affecting the customers relationship.
Corporate department deals in cash management, working capital loans and term loans.
Types of corporate department

Cash management

Working capital loans

Trade Finance Services

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Term loans

Working Capital Loans

It is based on the customers specific needs and wants in which the Corporate Bank
offers a number of different working capital financing facilities including Running
Finance, Cash Finance and Post- shipment etc.
Term Loans
MCB offers various terms of loans include short, medium and long term loans. Short
to Medium Term Finance to meet capital expenditure and short term working capital
requirements of the valued customers, the loans are depending upon project and cash
flows of the business.
Islamic Banking
MCB is also playing an important role in providing the Islamic services with near
about 22 islamic banks and products to its customers as following
Trade Finance Services
In Corporate Banking, MCB offers trade finance services to own customers that
include an entire range of import and export activities including issuing (LOC) Letter of
Credit, purchasing export documents and guarantees etc.
Sharika AL-AQD
MCB is also helping customers in Sharika AL-AQD. Sharika Al- AQD is known as a
contractual partnership. It means an agreement between two or more parties to combine
their assets, labourr or liabilities for the purpose of making profits i.e business.
Mudarabah Finance
Mudarabah finance service is also the service offered by the MCB. Mudarabah is a
business in which a person participates with his money while the other with his skills or
efforts or both his skills and efforts. NIT units and Mutual funds are the best example of
Modarabah in Pakistan.

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PLAN OF INTERNSHIP PROGRAM

I select the Muslim Commercial Bank Ltd. (MCB) railway road main branch Hafizabad
code (0191).
BRIEF INTRODUCTION OF THE BRANCH
The formation of the bank is very high quality and has good structure. MCB
bank railway road branch (0191) in which I work to complete my internship program is
oldest branch of MCB in Hafizabad. There are two branches of MCB bank are available
in Hafizabad. This branch in which I do my internship is old first branch of MCB bank in
Hafizabad and located near the grain market and this market is commercial area of
Hafizabad. This area is very helpful to the grain investor they can easily handled their
account in this MCB branch. MCB bank started their operations with a good vision and
mission statement. I see during my internship there are many business men who maintain
there accounts in MCB railway road branch. The whole staff of MCB bank is supportive
and very efficient in his working system they all are very intellectual. They all are
participative, cooperative and help by all means to internees.
STARTING AND ENDING DATE OF MY INTERNSHIP
Starting date of internship
Ending date of internship

18-07-2013
28-08-2013

NAME OF THE DEPARTMENTS IN WHICH I GOT TRAINING AND THE

DURATION OF MY TRAINING
DEPARTMENTS
1- ACCOUNT OPENING

STARTING
18-07-2013

ENDING
26-07-2013

DEPARTMENT
2- REMITTANCE

27-07-2013

05-08-2013

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(DD,PO)
DEPARTMENT
3- CLEARNING

06-08-2013

14-08-2013

DEPARTMENT
4-VOUCHERS

15-08-2013

22-08-2013

DEPARTMENT
5- CHEQUE BOOK

23-08-2013

28-08-2-13

DEPARTMENT

TRAINING PROGRAM
TASK ASSIGNED TO ME
During my internship in the MCB bank limited I really
enjoy the work in the organization I have tried my best to learn more in the duration of
my internship program that is about up to six week.
I am really thankful to the branch operation manager (BOM) of MCB bank
limited Mr.Muhammad Imran who provide me a learning environment in the branch.
During my internship training I have work in the following departments.
1. ACCOUNT OPENING
2. REMITTANCE (DD,PO)
3. CLEARNING
4. VOUCHERS
5. CHEQUE BOOK
1.ACCOUNT OPENING DEPARTMENT
WORK DONE BY ME
In account opening department I have worked from 22-10-12 to 30-10-12. I try to
know about the procedure of account opening in MCB Bank Limited under the
supervision of that department, and I also learn to issue the cheque book that is done after

14

the opening of the account. I work on cheque books and learn all the procedure, process
of the cheque book issue and the recording of cheque books.
Account opening documentation is the primary evidence that show the relationship with
the bank of customers. Account opening is the basic function of the account opening
department.
Account opening the major and most important function of operation of bank during my
internship program I got the opportunity of working in the account opening department I
have described the procedure and the type of account in which the MCB bank provide the
services to their customers.
TYPES OF ACCOUNT
Basically there are two types of accounts

Individual account

Business account

INDIVIDUAL ACCOUNT
Single account
Joint account
BUSINESS ACCOUNT
Sole proprietorship
Joint stock company
Partnership
There is further classification of account according to the nature of accounts as current
account, khushali bachat, basic banking account, PLS saving, smart saving account etc
PROCEDURE TO OPEN AN ACCOUNT
According to my practice in account opening department, when the
customer come and want to open an account in the MCB bank they required the
necessary information from the customer which is necessary to be known by the bank.
Account opening bank officers give the form and required the essential document to be
attached by the customer and the information to fulfill the account opening form.

15

Basically they require the information like

Title account
Full name of applicant
Occupation
Complete address
Stamp paper
Currency of account
Nature of account
Original copy of CNIC of customer and the next of Kin
Mobile number of applicant and also next of Kin.
The person who is going for opening an account must specify the type and nature of
account and then fill the third part of the form which contains his or her personal
information. The applicant must fill the form in a proper way that there should not be any
overwriting or cutting. He should also specify the initial deposit amount. The limit of
initial deposit in PLS account is 5,000 and 10,000 in current account.
Requirement of documents for different accounts is different. I specifying required
documents for salaried individual only and those are as follows:

Two Clear Copies of Computerized National Identity Card (card holder's

signatures, name, card number and photo should be clear).

Introducer (A person who is old customer of the bank or from the person known
to the bank).

Customer's service card/appointment letter/ salary slip or any other documentary

evidence of service, including, but not limited to a certificate from the employer.

If Customer signs in language other than English, an undertaking is required on

Stamp Paper worth Rs.100 containing text of Bank's prescribed format.

Signatures of customer should match with that of Computerized National Identity

Card. if not then a separate undertaking will be obtained on Bank's prescribed
format and the same will be authenticated by Introducer.

Two passport size photographs required if customer's signatures are shaky.

16

If customer signs in a shaky style or affix thumb impression, a separate indemnity

will be obtained on bank's prescribed format and the same will be authenticated
by the introducer.

In case National Identity card (CNIC) does not contain a photograph, then, in
addition to CNIC, any other document such as Driving License etc. that contains a
photograph is required. If customer does not have any other valid document
which hears photograph, then following documents will be obtained.

A passport size photograph and CNIC duly attested by gazetted officer / Nazim.

A confirmation in writing to the effect that the individual have no other document
bearing photograph.

Documents required for clubs, societies, associations, sole proprietorship accounts,

partnership accounts, agents, business individual and for account of limited companies are
different.

The signatures of the client are obtained on a Specimen Signature Card. These cards are
obtained in duplicate with two signatures on each card from the customer. These
Specimen Signature Cards (SSCs) are then scanned in the computer. Every time a Cheque
is received for a payment from the client, the signature on the Cheque are verified by
comparing them with the S.S. Card.
After completing this procedure form is sent to the head office for opening an account and
account is opened within one week. After opening an Account with the bank, the Account

holder once again makes a request in the name of bank for the issuance of a Cheque
book. For issuing Cheque book at very 1st time bank requires a letter of thanks from
customer that is sent to customer by head office at his or her home address. Every Cheque
book also contains one leaf that is used for another issuance of a Cheque book, which is
also known as requisition slip. Now customer can make transactions with bank either by
using Cheque book or through ATM card.
After opening of account, all information concerning the account is entered into the
computer. Currently, a program is being used for this purpose. Record of all the
transactions regarding the account of a customer is kept updated in the computer.
2.REMITTANCE DEPARTMENT

17

WORK DONE BY ME
I worked in remittance department one week. I had worked in remittance department
under the supervision of Remittance Officer in MCB limited (0191) Railway Road
Hafizabad.
WHAT IS REMITTANCE
Transfer of money or equivalent to money from one branch to another
branch of the same bank is called remittance.
A major function of the bank is to transfer of money from one branch to
another branch. This department means the transfer locally fund it can be within city or
out of city. Miss Sadia Akbar guide me about the remittance process and the all the
instrument that are use in the local remittance.
Instrument in local Remittances are as follows
1. Demand draft
2. Pay order
3. Telegraphic transfer
4. Rupee Traveler cheque
PARTIES INVOLVED IN REMITTANCE
Four parties are involve in this process
1. Remitter
2. Remittee
3. Issuing bank
4. Paying bank
DEMAND DRAFT (DD)
She guides me about the instrument of the local remittance that is demand
draft and also the procedure. MCB bank provides me this opportunity to gain more and
increase my knowledge and experience in this department. DD demand draft is a written
order given by the bank on behalf of the customer to other branch of the same bank to
pay the convinced amount to the customer of the demand draft. DD demand draft is
issued for the particular place. MCB bank limited is used demand draft to send money,
transfer fund, and make outstation payment and to out of city. Therefore DD demand
draft is always for a particular city.
PROCEDURE TO ISSUE DEMAND DRAFT
18

Under the duration of my work in this department I learn that, when any customer wants
to make a demand draft he comes to bank and gets a form and often customer services
officer (CSO) help customers to fill the form and infrequently customers fill form
themselves. CSO tell me how to fill the form. I had filled the form many times. After
mentioning the branch name branch code and date we mention the type of remittance. Is
it cash, demand draft (DD), pay order, telegraphic transfer/mail transfer, or internal
transfer? Then write amount in words and figure that is transferred and tick the currency
type and then write beneficiaries details as his/her name, address, account no, CNIC No.,
bank branch name and address and purpose of remittance. After this details about
applicant are given, his/her name/ title of account, account number, CNIC number, and
signature of the applicant and then remittance amount, commission, charges and taxes are
written according to the rules. At the end a copy of CNIC is attached with the form and
form is rechecked by the operation manager and he verify and attest it.
Any person who have not account in MCB bank can make a demand draft. Charges up to
Rs.25, 000 are Rs, 145 only in which Rs.125 is commission and 20 are charges. When
amount is more than 25,000 there is tax @ 0.3% on it and if person making demand draft
is not a customer of MCB Bank limited but DD is more then 25,000 then a document
called walk in customer also attached with the form. Walk in customer is shown below.
Demand draft can be issued on the behalf of Cheque issued by the customer having
account in the bank or else customer also has the option to make payment in cash. If the
payment is made through Cheque the customer account is debited and the branch on
which the draft is to be drawn is credited and charges are Rs.116 only.
After filling the form it is presented towards the remittance officer and he/she deals with
it and funds transfer takes place very quickly.
PAY ORDER
In MCB bank it is used to transfer the fund. For this kind of remittance
the payer must have the account in the MCB bank limited or in the issuing bank. It is
more liquid as compare to the cheque. It is a written order and it use for local transfer of
money from one person to another. It is also used by the public for depositing money.
PROCEDURE TO ISSUE PAY ORDER

19

When a customer come to the bank and has to make the pay order, they
give the application to the operation officer dealing with the local remittances. The
customer sign this application and pay order issued to the customer.
3. CLEARING DEPARTMENT
WORK DONE BY ME
I spent my 2nd week of internship in clearing department. I try to know about the
procedure of the clearing and gain the knowledge what is clearing and types of clearing.
There are two methods for clearing 1st is NIFT and second is OBC. It is way of
transfer of fund from a branch to the other branch through the clearing house State
Bank of Pakistan. State bank of Pakistan hires an institution for these services named
(NIFT) National institutional facilitation technology. MCB bank provides the various
services from all of these one is clearing.
Clearing through NIFT takes 1 or maximum 2 days for funds collection and transfer I see
that one person of NIFT come in bank and collect all those checks which come form
clearing and through OBC it takes 6 to 7 days in funds collection and transfer. OBC
method is used by those banks that are not member of NIFT.
Clearing department work efficiently and has important part in the banking operations. I
work in this department and I really enjoy working in this department I gain knowledge
of that when clearing department holder Medium Maryam told me that when any cheque
is received along with slip for clearing, we first of all check it in following ways,
1. Date
2. Amount of cheque in word and figure
3. Signature
4. Account title
I learn that sometime the account holders of MCB bank limited present a cheque which is
not drawn on MCB bank but the person has an account in MCB bank. In this case bank
accepts this cheque in clearing department and ager completing the procedure of clearing
from the other bank and receiving the amount form the bank after that MCB bank transfer
this amount to the amount of the cheque holder. This task is called clearing.

TYPES OF CLEARING
20

I learnt from this department that there are following three types of clearing:
Inward Clearing
Outward Clearing
Intercity Clearing
Outstation
(intercity)

Local

Inward clearing

Outward clearing

Inward clearing

Outward clearing

1. INWARD CLEARING
When account holders of MCB bank give the cheque to any other bank
account holder then inward clearing take place. The cheque received by MCB bank from
NIFT for clearing and funds ejection from your bank accounts it is called inward clearing.
2. OUTWARD CLERING
When account holder of other bank give the cheque to our account
holder and our account holder give the cheque to our clearing department this situation
crate outward clearing. Cheque is sent by MCB bank to NIFT for collection of amount of
the cheque from other bank it is called outward clearing.
3. INTERCITY CLEARING
When the customers of the MCB bank Hafizabad give the cheque to the MCB bank
Lahore branch it come under intercity clearing and they are not the member of the
clearing in the range of the Hafizabad NIFT. Then the Lahore branch sends the cheque to
the Lahore NIFT and the Lahore NIFT send the cheque to the Gujranwala NIFT which
further send the cheque to the Hafizabad bank, the Whole process is called intercity
clearing.
PROCESS OF CLEARING
Clearing functions are performed in the clearing house. It is a place
where all banks of the city acquire and settle their receipts and payments of cheques
drawn on them. All these facilities provided by the State bank of Pakistan. State bank of
21

Pakistan hire the NIFT for these services of clearing. All the area near to the Gujranwala
comes under the NIFT Gujranwala. Hafizabad branch of MCB bank is also come under
the NIFT of Gujranwala.
STAMPS USED FOR CLEARING
According to my work in this department I learn that the three stamps are used.
1. Crossing Stamps (At front or on the face of cheque)
2. Clearing Stamps (At front or on the face of cheque)
3. Endorsement Stamps (on the back side of the cheque containing the statement
Payee account will be credited on realization)
When the main branch sends the cheque to the clearing these stamps are used.
When the Hafizabad branch sends the cheque in clearing NIFT perform these services
and collect the fund on behalf of the sending bank and then these fund transfer to the
bank from where it receive the cheque and then that bank credit the customer account
against that cheque in this way the whole process come to the end.
Inward clearing book
Outward clearing book
Return books
And in work in these books they record all the information about the
clearing that is inward, outward clearing and the returns and I also work in these books.
CHEQUE BOOK DEPARTMENT
WORK DONE BY ME
According to my work in MCB bank I also work in the cheque book
department. The authority of this department also helps me to gain knowledge about the
cheque book. Cheque book is evidence for the customer that he or she have the account
in the bank.
CHEQUE BOOK REQUEST
I have done the lot of work under the supervision of Syed Waqar Haider,
he guide me about the work in this department and all the procedure to issue cheque
book.
Title of account
Account number
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 Sign it properly
Number of leaves
The first cheque book is given to the customer only when all the required documents are
checked. 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.
ISSUING CHEQUE BOOK
When I work in this department I learn that they maintain the cheque
book issue register and I try to learn about this register and work in this register that
contain all the information of the customer that issue their cheque book.
All the information is entered to the register that is maintained by the department holder.
The officer keeps and maintains the cheque book register Cheque book inventory and
cheque books issued are recorded in this register. A cheque contains the ten, twenty, fifty,
or hundred leaves. The cheque book is issue according to the requirement of the customer
what the customer want according to the leaves because the charges are taken by the bank
according to the leave of the cheque book.
The officer keeps and maintains the cheque book register. He help me considering the
cheque book register recording system the Cheque book list and cheque book issued are
recorded in this register. Account number, number of leaves, are also recorded in this
register.
CUSTOMER SERVICES DEPARTMENT
WORK DONE BY ME:
I also worked to understand the customers services department.
According to my work experience during my internship program I learn that in this
department they received the deposits form customers and also provided guide to the
customers who wants to open accounts in bank and also give guide line about the services
and products of the bank.
I performed two main tasks in this department.
1. ATM
2. DEPOSITS SLIPS

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ATM (Automated Taller Machine)

MCB bank provides the facility of automated teller machine ATM. It is a
computerized telecommunication device that provides the access or work anytime, any
where, in Pakistan and in abroad.
MCB bank ATM smart card is accepted at over ATMs nation wide. MCB ATM smart
Card enables you to access fast cash, transfer fund, inquire account balance, and pay
utility and mobile bills form any of over 650 MCB bank ATMs in the country.
CARD CATEGORIES
1. MCB ATM Regular card
2. MCB ATM Gold card

MCB ATM REGULAR CARD

MCB ATM regular card allow withdrawal of up to Rs.15000 per day and a
maximum of 3 withdrawals per day per card.
MCB ATM GOLD CARD
The MCB ATM gold card allows withdrawal up to Rs.25000 per day and a
maximum of 6 withdrawals per day per card. The cardholder has to make at least to
transaction to withdrawal of full amount of 25000.
PROCEDURE AND CONDITIONS
ATM card is provided to the customer that have account in MCB bank and
who required from them to issues ATM card. In my internship program I learn that CSO
are performs these services for their customers they provide all the information and
facilities about the ATM card related and fill a form of ATM card and require the copy of
C.N.I.C of customer that is attached with the ATM form. According to the form it contain
the four part,
After completion of this procedure the form is send to the head office of the
branch. The department holder maintain all the procedure and information related to the
ATM, they maintain the two books of ATM that called ATM register and PIN code
register. These books have the information related to customer like account number,

24

mobile number, and the signature of ATM holder and the signature of authority who
maintain this and the time and date of receiving and issuing the ATM card. All the
condition must be followed by the customer that are mentioned on the ATM form that are
all for the security of the customers.
DEPOSITS SLIPS
In which it receives deposits from customers and gives different information to the
customers according to their requirements. I worked under the supervision of Miss
Madiha (CSO) who tells me how to fill deposit slips. On that day I filled the deposit slips
only. MCB (0191) Hafizabad branch is situated in commercial area and there are so many
customers and so many transaction takes place there. I have filled about 50 slips first day.
There are two pieces of that slip in which one is original and other is carbon copy. In case
of cash deposit after filling the slip it is handed over to customer who present it to the
cashier and cashier receive cash from customer and after signing the slip, Corbin copy is
given to the customer but original is retain in record for prove. In other case when
customer deposits cheque instead of cash, the slip is presented to the clearing officer for
clearing of cheque. Cheque is may be of the same bank or may be of any other bank.
Some customers require information about balance in their account, some require
statement of their account, some want to know status of their account etc, I have tried my
best to tell them and give them required information. As I was working with CSO and it
is her responsibility to tell each and every thing to the customers about which they want
to know. I have got much knowledge from this field and thankful to Miss Madiha for her
co-operation

Ratio Analysis of MCB

1. Net Profit Margin:
formula (Net profit after taxation / Net Sale) * 100
2010
2011
2012
16,873,175 / 54,821,296*100 19,424,906 / 68,146,588*100 20,940,696 / 68,356,191*100
= 30.78%

= 28.50%

=30.63%

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Working:
2010, 2011
(Annual report 2010, page # 81)
2011
(Annual report 2011, page # 102)

Graphical Presentation of Ratios:

Interpretation:
It shows the profitability of a business. If this ratio is growing then it shows that business
in a good position. Above calculation shows that the latest year profit margin of the bank
is decreased as compared to pervious years. This is not good for the business. In 2010
business has good condition it shows that company have more efficient work in 2010 and
in 2011 there shows less efficiency but in 2012 there is effecient profit as compare to
2010 and 2011.

2. Return on Assets (ROA)

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Formula (Profit After tax / Total Assets)*100

2010
2011
2012
16,873,175/567,552,613*100 19,424,906/653,233,223*100 20,940,696/765,898,992*100
= 2.972 %

= 2.973 %

=2.734%

Working:
2010, 2011
(Page # 81 Annual reports of 2010)
2011
(Page # 102 Annual reports of 2011)

Graphical Presentation of Ratios:

Interpretation:
Return on assets measure the net income to total assets. This ratio has an increasing trend.
It means the assets of the business are fully utilized in more and efficient way and also
shows the favorable trend of the business. Above ratio shows the bank was high ratio in
the year 2010, and also same in year 2011 and it was much better in the year 2010.

3. Return on Total Equity (ROE)

Formula (Net income / Total Equity)*100

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2010
16,873,175/69,180,011*100

2011
19,424,906/78,915,003*100

2012
20,940,696/88,156,909*100

= 24.39%

= 24.62%

=23.75%

Working:
2010, 2011
Net Income (Page # 81 Annual reports of 2010)
Total Equity (Page # 80 Annual reports of 2010)
2011
Net income (Page # 102 Annual reports of 2011)
Total Equity (Page # 101 Annual reports of 2011)

Graphical Presentation of Ratios

Interpretation:
The ratio of net operating profit will be higher in 2010 as compare to 2011 and 2012 so
MCB improve his return on total equity ratio there is a little bit increase in 2012 as
compare to 2010 but MCB should improve it.

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4. Debt Ratio
Formula (Total Liabilities / Total Assets)
2010
488349 / 567553

2011
564431 / 653233

= 0.86 time

= 0.86 time

2012
664,148,186/765,898,992
=0.87 times

Working:
2010 ,2011
(Page # 80 Annual reports of 2010)
2011
(Page # 101 Annual reports of 2011)

Graphical Presentation of Ratios:

Interpretation:
Debt ratio shows the liabilities of a company. IT shows if the debt ratio is more than 1 it
indicates that company has more debt position. So it has high debt from external sources
as compared to previous year. Debt ratio is 0.8630 in 2010 and 0.8604 in 2011 and in

29

2012 it 0.8671. Finally debt ratio in not favorable as compared to pervious year though
the change is more.

5. Earning Per Share

Formula (Net income / no of outstanding share)
(No of Outstanding Share = No of share closing balance / 10)
2010
16,873,175/ 760215

2011
19,424,906 / 760,215

2012
20,940,696/836236.5

= 22.20 Rs.
Working:

= 23.23 Rs.

=25.04 Rs.

2010, 2011
Net Income (Page # 81 Annual reports of 2010)
(No of Outstanding Share = No of share closing balance / 10)
2010(= 7602150 / 10 = 760215)
2011
Net Income (Page # 102 Annual reports of 2011)
(No of Outstanding Share = No of share closing balance / 10)
2012
Net Income (Page # 102 Annual reports of 2011)
(No of Outstanding Share = No of share closing balance / 10)
(= 8362365 / 10 = 836236.5)
20,940,696/836236.5
=25.04 Rs.

Graphical Presentation of Ratios:

30

Interpretation:
It shows the allocation of profit to shareholder. Earning per share (ESP) in 2012 will
show better result as compare to 2010and 2011. So bank is now improving the EPS.

31

Structure of the HR Department

Department Hierarchy:
Main HR department of MCB Bank situated is in central office Karachi and all the
function performed by this department there and also operated the whole branches from
there. So there is no HR department in Hafizabad branch consequently HR department
hierarchy is not accessible in Hafizabad Branch.

Number of employees working under HR department:

Main head office of MCB bank Limited in Karachi and HR Department also held in
Karachi. The main head of Human Resource Department of MCB Bank Limited Dr. Razi
Asmat S.E.V.P The number of employees of MCB Bank HR Department is 11.
There is only one person in the HR department in MCB Bank Hafizabad branch Mr.
Zafar Cheema acting as a public relation officer he is responsible for all the public
dealing and working of this department. And he is also conduct the internship program in
MCB Limited Hafizabad branch.

Sub department under HR Department:

There is no sub department of HR Department of MCB.

Function of HR Department
There is the following function of HR department:
Main function of HRM Department:
Employees performance evaluation
Job evaluation
Job analysis
Develop job Description
Develop job specification according to the organization needs
Staffing
Issuance of vacancies
Employees promotions and transfers
Record maintenance
Compensation and benefits
Coordination and arrangements of meeting for promotions
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A.

Human resource planning and forecasting:

HR Department of any organization is evaluation the obligation of Human Resource for

planning and forecasting to be required the employees for the banks.
Forecasting includes the demand and supply of employees in MCB Bank Limited of
Pakistan.

HRP process:
Human resource planning engages in the location of short term and long term purpose
and ambition. HRP make sure that the goals are quantifiable and exact opportune
demanding. Human resource planning is very important appendage of an bank to make
sure that the bank

has necessary the authority of competent person obtainable at

appropriate occasion.

Forecasting HR Requirement:
In this process human resource department make need assessment and forecast employee
of the bank and future requirement of the bank .forecasting of HR is require for elevation
of achievement plane and future goals of the bank performed by employees.

Methods to forecast HR Needs:

There are following method of forecast HR needs

Zero base forecasting

Floor up approach

Aptitude inventory

Accomplishment plan

Assessment and organize

HR forecasting

b. Employees

recruitment and selection:

Human resource department asses the need of employees to be hired then the post against
each vacancy is show in the market through media. The bank main purpose is select the
qualified employees for the accomplishment of bank goals.
Employees recruitment:
The recruitment policies of MCB BANK the condition are the following;

33

Applicant ought to be a citizen of Pakistan

He ought to have reach the age of 18 years

He ought to be a commerce graduate

Sources of Candidates:
o Internal sources
o External sources
o Internal sources:
Internal sources are within the organization and this category, opportunity is given to
MCB lower managers by promotion them.
There are the following categories of the internal recruiting in the MCB bank Limited of
Pakistan.

Contacts and referrals

Job posting

Promotion

o External sources:

Employment selection process:

MCB Bank can choose the following steps for employment selection:

Appliance is issued in an arranged method alongside the job published in

newspapers.

After examination qualified applicant are describe for written test.

After passing the written test are called for interview.

C. Training & development:

Training need assessment
Human resource department can asses the employee of the bank and then feel that more
training of the employees. MCB Bank Limited of Pakistan qualified its staff through
training programmed for junior officers and clerical staff. All training program can held
in head office of the bank.

: Employee development Training

34

Serving the employees develop a stronger base of knowledge on topics that effect
their personal lives can make them more productive and less distracted in their jobs.
There are the following categories can be develop the employees.
Communication skills
Conflict management training

Performance management:
Human resource department of the bank conduct the performance appraisal.
Performance management is assisting the employee performance.

Standards of performance management:

The HR department of the bank support yearly performance appraisal of the
employees.
The executive locate the performance standard and everyday jobs for each
subdivision and work out the predictable result in the form of over products.

How performance reports are written:

The HR mangers write annual performance report on the basis of performance of
employee at operational throughout the entire year. The mangers write the ACR
at the end of the year after learning the work report of employees.

E. employee compensation & benefits:

Type of compensation & Benefits
In the Compensation all plunder that and worker be given as a result of their
service. Worker of MCB Bank receives benefits and compensation in the
form of:
Extra monetary compensations
Sick leaves
Holidays
Group life insurance
Medical allowance

Organizational career management:

Employee job changes
35

HR department can Employee job changes for the reason that of promotion and transfer
and on the occasion of demotion. The HR manger changes job only the selected
employees.

Job changes with the organization:

Promotion:
The Promotion of employees on the basis performance appraisal of employees. Some
promotion occur resignation of an employ and duration of its job in the bank. On the
basis of efficient performance and experience of employee are given probability for
promotion a stair higher evaluate to his current position. The human resource
department is main office in Karachi is accountable for maintenance the information
for the reason of promotion.

Transfer:
Human resource department is also deals the transfer of employ from one department to
other department or one bank to another bank. Transfer is depending on the job that the
right person transfers from one post to another post on the basis of experience of
employees. Transfer of employees is only conduct by head office of the bank. Eventually
all the workers revolve elsewhere to be enduringly situated at their location of job
whether in head office or the field office of the bank. The purpose of getting staff
prepared to recognize pioneering challenge employ new talents and widen the possibility
of information.

Demotion:
The HR department demoted the employee because of violate the policy and regulation
of bank and carelessness of the employees. The demotion is imposing a penalty for short
period of time after the expiry of this period employ reposition normally. The employee is
demoted because of employee do not conventional the appoint authority. The employee is
demoted when the position of employee downwardly reclassified. The HR department is
demoted employees when one employee is demoted another employee with more
advantage during reduce in manpower.

Separations:s

36

The HR department can take a step of separation when the employee is separated the
management. The separation of employees is some time permanently and some time
temporarily .some time separation is due to termination and resignation.

Termination:
HR manager is terminating the employees when agreement of employment is end.
Employee is also terminating when no more service is required to the employees. HR
manger also terminates the employees when they do not show the proper result according
to bank rules.

Resignation:
The employee is comforted as of the bank owing to his acceptance. When the manger is
resign the HR manger send the resignation letter to the head of department. After
resignation they insure that final salary imbursement is right. The HR manager positions
become aware of date of leaving job and confirm yearly leaves that are exceptional with
the employees. Any exceptional yearly leave residual should be taken prior to say
farewell to the bank at whatever time likely.

Retirement:
The employee is alienated from the bank on explanation of retirement. Human Resource
management Department explanation downward the employee to manger through sendoff dates. Manger put in order informal meeting with employ to converse about the
modus operandi and confirm correct to inquire for incessant functioning. Final the HR
manger retirement letter send to the chief excite.

Labor management relations:

Labor management relation is process of relationship between employees and employer.
These relationships is give confidence the commencement of cooperation of agreement
concerning wages hours and other terms and conditions of employment rule and
regulations. MCB forever demonstrate a loving and helpful intellect locates towards new
employees and welcome these employees.

37

CONCLUSION
During my internship learning program in MCB bank limited Hafizabad. I have
learnt that MCB bank limited is very growing bank amongst commercial banks and is
continuously trying to improve its position. MCB bank is engaged in the commercial
banking and related services also growing Islamic banking. After analyzing the MCB
banks Profit and Loss account, Balance Sheet, Cash Flow Statement, Product and
services and other ratios I have concluded that MCB bank limited is progressing and
rising bank and trying to become the world best bank.
Operating cash flow ratio is showing normal results but there are some fluctuations in
market ratios of the bank which includes dividend per share, earning per share and price
earnings ratio and organization be supposed to take steps for the reason of civilizing it.
According to my evaluation and ratio psychoanalysis of MCB bank the net profit ratio
need to be better as it is symbol of winner for any bank. Gross spread ratio is falling year
to year that is not high-quality for the corporation and non interest income to total income
ratio shows income from operations, it is variable on the other hand in year 2011 it is
showing good indication. Spread ratio is also decreasing in all years which are not good
for the health of business. In go back on assets ratio I see that bank is making efficient
use of its property other than DuPont return on assets bank is in front of defeat. revisit on
total evenhandedness is moribund incessantly from year to year that is not a good
symbol. Debt ratio is representative satisfactory results and Debt/equity ratio also
indicating favorable condition for bank. Times attention earned ratio is showing best state
but Advances/ Deposits ratio is not in positive stipulation for the bank.
While my internship in MCB bank limited (0191) railway road branch Hafizbad I
checked that this bank is working well as compared to its competitors and implementing
computerization in all its branches which make the operational easy and efficient.

38

Extensive branch network with ATM installation, wide participation of employees in

decision making, allocation of power and helpful staff give spirited perimeter to the MCB
and due to these reasons MCB has been confirmed seven times for Euro money award
and Asia Money Award for the last five years which is main attainment of bank. In
2012 the MCB 7 awards received in its excellent working.

SWOT Analysis of Organization

SWOT analysis is one of the most important and most modern tool the lets organizations
see the actual picture of their portfolios and competitors. SWOT analysis of my
organizations is as below:

Strengths:

Branch Network: Branch network of my organizations is a huge strength. A

branch in every Tehsil and District is a whole mark of this bank.

The bank enjoys a huge portfolio of customer accounts and there are numerous
products of this bank.

The hygiene in the bank branches is quite up to the modern standards.

Most important strength of

MCB is that it has all well trained staff in all

branches.

Weakness:

Branch network is not that much in number as its competitors like HBL Bank
Limited, Allied Bank Limited etc.

There is lack of proper infrastructural amenities in some of the branches of

this bank.

There is a reduced employees ratios to branch.

Limited marketing and lack of divertissement is also its weakness.

Opportunities:

Horizons in other countries can be a good opportunity.

Focused marketing and promotion strategy can uplift the banks current output.

By adding more dynamics to its current online system.

39

Threats:

The major threat for the MCB Bank is that increasing number of private and
international banks in the market because they also provide the same facilities.

Other banks are upgrading their portfolios of products and services which is a
fatal thing for this bank.

Small businesses can be a source of good revenue which is ignored by this

financial intermediary.

RECOMMENDATION FOR IMPROVEMENT

MCB Bank Limited should strive in following fields:

It should focus on its Human Capital training toward better using of

internationally used banking equipment.

It should consistently upgrade its software as per the requirements of the State
Bank of Pakistan.

It should wholly penetrate into the relationships of existing customers.

It also should look and invest heavily in finding new clients.

Its banking hours should also be different from other banks. A Sunday
opening in a busy branch can help this.

The bank should promote its products and services in equivalence to modern
day marketing tools.

The bank should also heavily stress upon the need of constant training and
development of its existing as well as new recruiters.

The bank should provide a more charming rewarding plan to its employees
which should base on performance.

The banks rotation polices should also be more frequent.

The bank should must display proper information to its clients as per the
requirements of State Bank of Pakistan Prudential Regulations.

40

The should also strive to increasing its potential clients.

REFERENCES AND SOURCES

1. www.mcb.com.pk
2. www.google.com.pk
3. www.wikipedia.com
4. www.answer.com
5. Karachi stock exchange
And all the staff of MCB bank helps in my working and they are very cooperative in my
internship program and the instructor of fin619 they guide with time to time according to
my internship report.

41