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Internship Report


It is the requirement of the BBA(hons) course Islamia university of

Bahwalpur that all students of BBA have to spent Six to Eight
Weeks in any organization to get practical exposure and to get
familiarized with the ways to live in the organizational environment
which is dramatically different from the educational environment.
That six weeks period called “Internship Period “, if spent properly
and sincerely, enables the students to be more confident, more
knowledgeable, more responsible and, above all, more committed to
its work in the practical field. I have also been assigned to do
internship of six weeks period in MCB Mian Channu City main Branch.

It has enabled me to understand the practical scenario and

sharpen our decision making power and utilizing the resources
in an effective manner, so that our resources generate
maximum profit.

In preparing this report, I have put all of my best efforts and

tried my level best to give maximum knowledge. Despite of my
all the coherent efforts, I do believe that there will always be
a room for improvement in the efforts of learner like me.

Yasir Ayaz

Executive Summary

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MCB has been playing a splendid role in banking industry of Pakistan.

Formed since 1947 and passed through nationalization and privatization
modes, now bank is in hand of Mian Mansha’s group which is one of
powerful and strong business group. MCB is performing in very good
position since 10 year and winning best domestic bank awards and
especially have been rewarded a sitra-e-imtiaz Pakistan very honorable
and precious award. MCB is currently dealing through number of
different departments, account opening department where different type
of accounts are available with different products and there are specified
procedures to open, operate and close the account. Cash department is
very responsibly dealing with cash withdrawals, deposit, cash online and
cash in hand. Accounts department is working to monitor the branch
expenses, to keep record of them and makes balance sheet, profit &
loss account to report manager. Remittance department is on the job to
facilitate customer where DD, pay order and FDD are made and posted.
Credit department is working to provide loans to needy entity where
personal, commercial and Industrial loans are extended after evaluating
the entity, their need and security through pre specified procedure.
Agriculture loan is also given to farmer in different products, which are
categories in Farm and Non Farm based. MCB is very much
concentrating on changing world and introduced some remarkable
services for the convenience of customer in which Virtual Banking,
Mobile Banking and SMS Banking are included where customer can
enjoy number of features like fund transfer, bill payment, mobile

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recharge and statement of account also can post standing order to

payment and many more without going to bank, just by using internet
and your handheld device. MCB also providing debit and credit card to
their customer which is acceptable in large network of MCB and n other
bank ATM’s and at different spots. Calculated ratios show the some
financial aspect of MCB and pinpoints that should be considered. MCB
Mian Channu branch’s SWOT analysis shows statements under the
heads of strengths, weaknesses, Opportunities and Threats that should
be consider for the betterment of branch. As a student intern I performed
duties under supervision of bank officers in which includes account
opening, cheque book issuance, slips filling etc. during this period I have
also learned many moral and working skills. In last I have reported some
suggestions to improve the branch performance for fruitful results.


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The term 'bank' is being used for a long time, yet it has no precise
definition. The basic reason is that the commercial banks perform not
just one but many types of functions. The term bank has been defined
differently by different authors. Some are as follows:
According to Crowther,

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

According to G.W. Gilbert,

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

an intermediate party between the borrower and the lender. He borrows
from one party and lends to another."
According To Bamkinh Companies Ordinance

U/s3 (B) of Banking Companies Ordinance 1962 "Banker means person

transacting the business of accepting for the purpose of lending or
investment, of deposits of money from the public, repayable on demand
or otherwise and withdraw able by cheque, draft, order or otherwise and
includes any Post Office Savings Bank."

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History of Banking

Evolution of Banking
It has not so far been decided as to how the word ‘Bank’ originated. The
explanation of this origin is attributed to the fact that the Jews in
Lombardy transacted the business of money exchange on branches in
the market place and when the business failed, the people destroyed the
Bank. Incidentally, the word ‘bankrupt’ is said to have been evolved from
this practice. The opponents of this opinion argue that it was so, then
how is that the Italian moneychangers were never called ‘Banchierei’ in
the Middle Ages?

Other authorities hold the opinion that the word ‘Bank’ is derived from
the German word back which means joined stock fund. Then ‘Back’ was
Italianize into ‘Bank’.

Early Growth
Banking in fact is as primitive as human society for ever since man came
to realize the importance of money as a medium of exchange. Perhaps it
was the Babylonians who developed banking system as early as 2000
B.C. It is evident that the Temples of Babylon were used as ‘Banks’
because of the prevalent respect and confidence in the clergy.

King Hammurabi (1728 – 1686 B.C), the founder of the Babylonian

empire, drew up accede where in he laid down standard rules of
procedure for banking operations by temples and great landlords. He got
his code inscribed on the block of diorite about 8 feet tall, containing
about 150 paragraphs which deals with nearly all aspects of loans,
interest, pledges, guarantees, natural accidents, loss, theft etc. Later on
Sumerians, Babylonians, Hittites and Assyrians standardized the values
of the goods in silver, copper and bronze.

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It is not certain as to who invented money but history recess that king of
Lydia castled electrum ingots of identical shapes and of uniform weights
with a triple emblem engraved on it as an official guarantee of value in
687 B.C. In 1401 a German public bank was framed comprising the
operations of discounting and transferring of money. By the 16th century,
some more public banks were formed in Venice, Milan, Amsterdam,
Hamburg and Nuremburg. In order to streamline Banking organizations
and techniques, conferences were held in Nuremburg from 1548 to 1551
and it was agreed that the commercial interest of the time needed a
bank with facilities of growth and transfer but it should not be a bank run
by private individuals. Ultimately in 1587, a State Bank under the name
of banco DI rialto was formed in Genoa. Later the bank of Amsterdam
was also formed in 1609. This Bank had a guarantee by the State and
rendered valuable services to the Netherlands traders up to the year

Similarly in 1690, the Bank of Hamburg came into existence in Hamburg

with the business of accepting deposits of fine silver or of foreign money
and to run accounts on these deposits. This Bank rendered great service
to the merchants as well as countries it dealt with until 1873, when it was
merged with the Reich bank. By the year 1700, the bank of England was
not only issuing notes but also conducting accounts for customers. Its
directors were conducting the business like that of limited companies.
The bank had the monopoly of issuing banking notes. Up to 1813 or
there about in England, the main profit of bank was derived from the
circulation of notes.

Development of Modern Banking

In 1918 came into being eleven clearing banks of today. The effect of
this historical development of banking in England has been fairly wide.
First, emergence of a small number of large banks with wide network of
branches. Second, increase in the popularity of bank accounts and a
large-scale use of cheques.

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In 1946, the labor government nationalized the bank of England and

transferred the existing stock to the nominee of British treasury. In 1955,
the British Banks made a departure from traditional banking by
undertaking hire-purchase finance for companies buying industrial plants
and machinery and took interest on hire-purchase finance.

Banking In Pakistan
At the time of independence, there were 631 offices of scheduled banks
in Pakistan, of which 487 were located in West Pakistan alone. As a
new country without resources it was very difficult for Pakistan to run its
own banking system immediately. Therefore, the expert committee
recommended that the Reserve Bank of India should continue to
function in Pakistan until 30th September 1948, so that problems of time
and demand liability, coinage currencies, exchange etc. be settled
between India and Pakistan. The non-Muslims started transferring their
funds and accounts to India. By the end of June 1948 the number of
officers of scheduled banks in Pakistan declined from 631 to 225. There
were 19 foreign banks with the status of small branch offices that were
engaged solely in export of crop from Pakistan, while there were only
two Pakistani institutions, Habib Bank of Pakistan and the Australasia
Bank. The customers of the bank are not satisfied with the uncertain
condition of banking. Similarly the Reserve Bank of India was not in the
favor of Govt. of Pakistan. The Govt. of Pakistan decided to establish a
full-fledge central bank. Consequently the Governor-general of Pakistan
Quaid-I-Azam inaugurated the State Bank of Pakistan on July 1, 1948.
Thus a landmark was made in the history of banking when the state
bank of Pakistan assumed full control of banking and currency in

The banking structure in Pakistan comprises of the following types.

1) State Bank of Pakistan.

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2) Commercial Bank of Pakistan.

3) Saving banks.
4) Co-operative banks
5) Specialized credit institutions.
Up to December 31, 1973, there were 14 Pakistan commercial banks
that functioned all over the country and in some foreign countries
through a network of branches. All these commercial banks were
nationalized in January 1, 1974, and were recognized and merged into
the following five banks:

1) National Bank of Pakistan

1) Muslim commercial bank limited
2) Habib Bank Limited
3) United Bank Limited
4) Allied Bank of Pakistan
The state bank of Pakistan is the Central bank of the country and was
established on July 1, 1948.The separation of East Pakistan and its
repercussion in the form of economic depression has caused a lot of
difficulties to the banking system in Pakistan. The network of bank
branches now covers a very large segment of national economy. The
numbers of branches have increased appreciably and there is now on
branch of bank for every 3000 heads of population approximately. There
is done reasonable growth in deposits from the establishment of
Pakistan. Besides this growth, specialized credit and financial
institutions have also developed over the years.

The Government of Pakistan in the late 90’s introducing the need for the
privatization of state owned banks and companies. The private sector
has accepted the challenge and most of the banks are privatized today.
The State Bank of Pakistan issues the shares of these periodically.

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Bank employees and other common peoples can also purchase these
shares and earn profit.

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MCB History & Current Position

MCB Bank Limited formerly known as Muslim Commercial Bank Limited

was incorporated by the Adamjee Group on July 9, 1947, under the

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Indian Companies Act, VII of 1913 as a limited company. The bank was
established with a view to provide banking facilities to the business
community of the South Asia. The bank was nationalized in 1974 during
the government of Zulfikar Ali Bhutto subsequently in June 1974 Premier
Bank Limited merged with MCB. This was the first bank to be privatized
in 1991 and a consortium of Pakistani corporate groups led by Nishat
Group purchased the bank. As of June 2008, the Nishat Group owns a
majority stake in the bank.

Founded in 1948, Nishat Group is one of the leading and most

diversified business groups in Pakistan. The group has strong presence
in the most important business sectors of the country such as banking,
textile, cement and insurance.

Mian Mohammad Mansha is the Chairman of the group (and also MCB)
and has played instrumental role in its success. In recognition of Mr.
Mansha’s contribution, the Government of Pakistan has conferred him
with "Sitara-e-Imtiaz", one of the most prestigious civil awards of the

MCB Current Position:

Singapore18th April, 2010 – At an impressive ceremony held in

Singapore, President and CEO MCB Bank Atif Bajwa was awarded “The
Qatar Financial Centre (QFC) Asian Banker Leadership Achievement
Award 2010” for Pakistan. MCB Bank was also the recipient of “The
Strongest Bank” award for being Pakistan’s best-performing financial
institution. The Advisory Council of the Asian Banker Leadership

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Achievement Awards Programme recognized the role played by MCB in

developing systems and in driving innovation through the launch of new
products and services such as the ability for its customers to make
payments using mobile phones.

MCB is one of the leading banks in Pakistan with a deposit base of Rs

368 Billion and total assets of over Rs 500 Billion. The Bank has a
customer base of approximately 4 million, a nationwide distribution
network of over 1,100 branches and over 450 ATMs. Based on its robust
financial performance, healthy capitalization, high quality assets, and the
country’s lowest cost deposit franchise, MCB is ranked as one of the
best banks in the region. The bank has also successfully attracted
partnerships, in the form of an equity tie-up with Maybank, Malaysia’s
largest financial institution. Moreover it is Pakistan’s 1st organization to
be listed on the London Stock Exchange.

Vision Statement

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“To be the leading financial services

provider, partnering with our customers for
a more prosperous and secure future”

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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”

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MCB Values


We are the trustees of public funds and serve our community with
integrity. We believe in being the best at always doing the right thing. We
deliver on our responsibilities and commitments to our customers as well
as our colleagues.


We respect our customer’s values, beliefs, culture and history. We value

the equality of gender and diversity of experience and education that our
employees bring with them. We create an environment where each
individual is enabled to succeed.


We take personal responsibility for our role as leaders in the pursuit of

excellence. We are a performance driven, result oriented organization
where merit is the only criterion for reward.

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

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and unrealized. We make every effort to exceed customer expectations

through superior services and solutions.


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

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Corporate Profile

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Mian Mohammad Mansha

Vice Chairman
Mr. S. M. Muneer

Audit Committee
Mr. Tariq Rafi

Human Resources Committee

Mian Mohammad Mansha

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Risk Management & Portfolio Review Committee

Mr. Shahzad Saleem Director

Business Strategy & Development Committee

MianMohammadMansha Director

Chief Financial Officer

Mr.Salman Zafar Siddiqi Director

External Auditors
KPMG Taseer Hadi & Co.(Chartered Accountants)

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Shareholders Details

Share Perc
holding entage

Directors, CEO and children 52,190,877 7.5518

Associated Companies 57,009,034 8.2490

NIT & ICP 5,835 0.0008

Banks, DFI & NBFI 2,239,307 0.3240

Insurance Companies 46,052,057 6.6635

Modarabas & Mutual Funds 7,208,703 1.0431

Public Sector Cos. & Corp. 131,749,731 19.0636

General Public (Local) 101,843,819 14.7364

General Public (Foreign) 2,400,126 0.3473

Others 44,237,663 6.4010

Foreign Companies 246,167,375 35.6194

Company Total 691,104,527 100.00

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MCB Achievements

Awards & Accolades:

President and CEO MCB Bank Atif Bajwa was awarded “The Qatar
Financial Centre (QFC) Asian Banker Leadership Achievement Award
2010” for Pakistan. MCB Bank was also the recipient of “The Strongest
Bank” award for being Pakistan’s best-performing financial institution.

Euromoney Awards:

Best Bank in Asia Award 2008

Best Bank in Pakistan Award 2006

Best Bank in Pakistan Award 2005

Best Bank in Pakistan Award 2004

Best Bank in Pakistan Award 2003

Best Bank in Pakistan Award 2001

Best Domestic Bank Award 2000

Asia Money Awards:

The Best Domestic Commercial Bank Award 2004

The Best Domestic Commercial Bank Award 2005

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Structure of MCB



Structure of MCB main branch mian channu 0482

Management of the branch

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Branch Manager Doger Aamir Hussain

Operational Manager Muhammad Imran

Accountant Fozan ul Qamer

Credit Manager Imran Arshad

Forex Manager Ayesha Zafar

Chief Cashier Khursheed Ahmed

Cashier Muhammad Usman

Billing Cashier Miss Farwa Asif

Account Opening Department

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To open an account the customer have to meet the general banking

manager with an introducer (the person who is going go introduce that
person in the bank) and get an application form used for account
opening. Along with the form a card for specimen signature is also
supplied to customer. Manager has every right not to accept this contract
if he is not satisfied by the details provided by the customer. In case the
contract is acceptable to both, now it is ready to open the account


The procedure begins with the punching of account opening form to the
customer file i.e. customer’s master file. The manager records the
necessary details into this register and allots an a/c number from this a/c
opening register. This register is maintained for each type of account
and the a/c no’s are allotted serially. After opening a saving and current
account every applicant’s data is entered into the computer to maintain a
safe record and application form is properly filled so that it can be
available when necessary. Checking officer is responsible to Tele the
manual application form with the computerized a/c opening file. For
fixed deposit only that application form is needed this is prepared
manually, because most of the procedure of fixed deposit is done
manually. The signature specimen card contains three signatures of an
applicant, applicant a/c no, a/c type, branch code, title of a/c, it will be
attached with an application form. Banker uses this card at the time
when he receives the amount.

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Account Types

Though in theory there many types of accounts but commonly account

operators can be classified in one of the following categories, each have
different documentation requirements:

• Single
• Joint
• Partnership
• Private Limited
• Public Limited


Only one person can operate this a/c. An individual who can fulfill the
requirement of bank can open this a/c. We can call it a personnel or
individual a/c. The requirements for this type are National Identity Card
Photocopy, Minimum Deposited Balance, Account Opening Form, Letter
of Kinship etc.

In case of illiterate person or shaky sing, two recent passport size

photographs of the new account holder besides taking his right and left
thumb impression on the specimen signature card.


In case of joint a/c applicant mentions that how much person will operate
the a/c. Instruction are given for joint a/c such that the account shall be

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operated by anyone or more. The requirements for this type are National
Identity Card Photocopy, Minimum Deposited Balance, Account Opening
Form, Letter Kinship, Additional Signature Form (For Joint Account),
Declaration regarding the operator of account.


For partnership a/c, along with the application form other requirements
needs satisfied.

The requirements for this type are National Identity Card Photocopy,
Minimum Deposited Balance, Account Opening Form, Registration
certificate, agreement among partners and Commencement of business
and private registration, resolution of board of directors, commencement
of business, memorandum and articles of association and balance sheet

Private Limited
Such type of account is opened in the name of the businesses having
private limited concern and mostly medium business enterprises open
such kind of accounts. All the board of directors have to submit the
declaration regarding the account operator on the company pad and with
the rubber stamp with the signature of the all the members of the board
of directors. In case of any change in director bank must be informed
regarding that. In case funds are borrowed by the company all the
directors approval is necessary rather not only the authorized partner
who can be the operator of the account.

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Public Limited

Public Limited A/C type of account is opened in the name of the

businesses having Public limited concern and mostly medium business
enterprises open such kind of accounts. All the board of directors have
to submit the declaration regarding the account operator on the company
pad and with the rubber stamp with the signature of the all the members
of the board of directors. In case of any change in director bank must be
informed regarding that. In case funds are borrowed by the company all
the directors approval is necessary rather not only the authorized partner
who can be the operator of the account.

Cheque book issuance procedure:

First cheque book is given on letter of thanks issued by bank. Letter of

thanks is issued against account new opened account. Bank print two
letter of thank one is attached to account opening form and one is
dispatched to new accountholder. After receiving dispatched letter of
thanks customer comes to bank to receive new cheque book.

Following procedure is required to obtain cheque book:

• First cheque book requisition slip is filled that slip contains

information of,
• Account title & number

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• No of leafed cheque book required (25, 50, 100) each leaf is

• Information of other person if accountholder allowed any person
to take cheque book and signature
• Two signature of accountholder

Note: Each cheque book contains a white color page which is necessary
to obtain next cheque book to accountholder.

Next cheque book is obtained by following the procedure,

• Cheque book requisition slip is filled

• White page from previous cheque book is attached
• If customer lost their white page of previous cheque book then
application is required from customer of lost of cheque book slip
and attached with requisition slip.
• Posted by bank officer in computer
• Cheque book is given to accountholder and signature of
receiver is taken on receiving register. If cheque book is being
received by any other person permitted by accountholder CNIC
copy is attached of that person.

Closing of an account:

There are some conditions under any of them account can be closed or

• On court orders

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• In case of death of accountholder (kinship rights cannot be used till

death certificate is submitted to bank).
• If customer signed any term and conditions and does not meet
• In case of customer own will

Above mentioned in first three conditions no filing is required from

customer, but in case of customer own will there are some requirement
from customer procedure and documents are as follows:

• Application from customer to close the account

• Account close form
• Signature specimen card
• Returned worn out cheque book is attached
• Customer will have to pay 250 charges to close the account
• Statement of account last month

Note: to close the account it is necessary that account should in active

position, if not so first it needs to be active (dormant to active).

Dormant account/ procedure to active:

Dormant account means when customer does not make any transaction
(Dr or Cr) to his/her account. With above mention condition after 6 month
account automatically becomes dormant. To withdraw amount customer
will have to first active the account.

Following procedure and documents are required:

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• Dormant application
• CNIC copy
• NADRA verification
• Customer will have to deposit sum of amount

After getting all requirements account has been marked active.


• Basic Banking Account

• Current Account
• Savings Account
• Special Rupee Term
• Savings 365 Gold
• Business Account
• Current Life Account
• Foreign Currency Account

Locker Facility:

To avail this facility customer should have account in MCB bank.

• Valid national identity card is required

• Next of kin ID card
• Locker form is being filled
• Security charges (refundable) Rs. 2000/-
• Yearly rent Rs.1400 + FED 16% of rent

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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 relative’s 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.


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.

Procedure to encash amount of remit express:

• Pic code is given to bank officer

• If amount is available against pin code Beneficiary name will be
asked by bank officer
• Sender name will be matched
• Amount will be matched
• Receiver CNIC is required and copy
• Voucher is repaired by bank officer and signed
• Customer encash it from cash counter

Accounts Department

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Every transaction which takes place recorded in the computer so all

transactions in different departments are forwarded to account
department. Since all vouchers from different departments are forwarded
to current department so this department tallies all such transactions
with current department after maintaining the ledger of each department.
Following are different functions performed by this department:

• Preparation of Financial Statements for different time span

• Maintain all accounts of different departments
• Calculation of profit on different schemes
• Calculation of markup on different advances
• Preparation Different types of reports for State Bank
• Daily position of cash & every accounts
• Matching daily summaries of all departments with ledger

Remittance Department

The need of remittance is commonly felt in commercial life particularly

and in every day life general. A major function of any banking system is
the transfer of funds from one client or one place to another. By
providing this service to the customer the bank earns a lot of income in
the form of service charges. This department deals with local currency
remittance i.e. remittance from one city to another without actually
carrying the currency. MCB uses following instrument for transferring of

• Demand Drafts (DD)

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• Pay Order (PO)

• Online transfer
• Rupee traveler cheque(Rtc)

Demand Drafts (DD)

DD is a written order given by the branch of the bank on behalf of the

customer to other branch of the same bank to pay the certain amount to
the customer. DD are issued for the particular place other than place of
issuance. A draft is a Cheque drawn by a bank on its own branch or any
other branch of another bank at a different place requesting it to pay on
demand a specified amount of money which is already received to the
person named on it. It is used payment is done out of station and it is
garneted by bank once it is made (if it is not cancelled by customer).

Documentation and procedure of clearing of DD:

DD can be obtained by both accountholder and non-accountholder. For

both customers one form with name SF-100 is available which is filled
and proceeds to make a DD that form contains information about
beneficiary, purpose of making DD, customer identity (in case of
accountholder account title and number is written but in case of walking
customer CNIC copy and information as per CNIC is written) and DD
charges Up to 100000: commission 100, postage 75, FED 16,
withholding tax .3%(in case of cash). More than 100000: commission
(Rs 150 or .1% which ever is higher), postage 75, FED 16, withholding
tax 0.3% (in case of cash).

Note: DD can be on cash or on cheque.

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After completing all information and attached requirements original DD is

made and handover to customer with signature of authorized bank
officer. Each DD contains one original instrument and two carbon copies
one for dispatch to branch to whom DD is drawn on and other for record
keeping. As the correspondent branch to whom DD is drawn on receives
the dispatched copy of DD that branch entered DD but do not posts to
any account till the original instrument is presented through clearing.

Pay Order:

Pay order is used when customer wants to payment some one and the
party want secured payment mode. Pay order does not dishonor as
cheque. It is written order issued by the bank drawn and payable on
itself. It is used for local transfer of money from one person to another

Documentation and procedure of clearing of pay order:

Slip is filled (SF-100) and deposited to concerned officer in case of cash

customer will have to deposit cash first and in case of cheque after
verification of signature customer directly goes to remittance officer.
Remittance officer check balance in customer account first and then
debited the customer account and make pay order. It will always be
deposited in mentioned person account and if it is deposited in other
than drawer bank it will be cleared in local clearing.

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Pay order charges: Rs 75/- for accountholder and Rs 250/- for non-
accountholder (walking customer/ in cash).

Note: no charges from students for payment of fee favoring educational


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Online Transfer:

When branches were not online for transfer of out station branches of
bank TT (Telegraphy Transfer) were use. In this way message was sent
through FAX or through email. But now its time to be connected via
internet globally and branches are online. Now other branch account can
also be access and can be debited or credited when needed.

Documentation and procedure of clearing of pay order:

First SF-100 been filled. This form contain information about beneficiary
name, account number, branch code, accountholder name, account
number and Two signature of applicant. Online transfer can be through
cheque or by cash. In case of cash online CNIC copy is essential. Online
charges are as follows: Commission 100, FED 16 and in case of cash
online 0.3% if amount is more than Rs. 25,000.

Rupee traveler cheque (Rtc):

• Can be a safest way to carry cash

• Cheque is accepted at trade centers &
• No need to be a/c holder for traveler cheques
• Cheque is signed once when issued.
• Upon delivering second signed are made

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Cash Department

In cash department both deposits and withdrawals go side by side. This

department maintains the following heads:

• Cash online
• Cash deposited by customer
• Cash received against any utility bill
• Cash withdrawal by customer through cheque

At the time of payment against cheque following things are being


• Signature & date

• Cross cutting
• Drawee’s a/c title
• Amounts in words & figures
• Two signatures at the back

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Clearing Department

Clearing is a system by which banks exchange cheques and other

negotiable instruments drawn on each other within a specified area and
thereby securing the payment for its clients through the clearinghouse. A
clearinghouse is a general organization of the banks at a given place, its
main purpose is offsetting the cross obligation in the form of cheques.
When there are many banks in the country each will receive a number of
cheques drawn on other banks, deposited within for collection. A
clearinghouse is an organization where these cheques are brought and
the mutual claims of each bank on the other are offset and a settlement
is made by the payment of differences. The representatives off all the
banks in Pakistan attend office of the bank, which is performing these
duties of clearinghouse, on each business day at a fixed time. They
deliver cheques that their bank may have negotiated and receive in
exchange cheques drawn on their bank negotiated by other bank. The
responsibility of smooth cooperation of the clearing function lies with the
National bank of Pakistan.

The operation of clearing refers to the collection of cheques drawn on

other banks. These cheques may be drawn on UBL, HBL, NBP, or any
other bank of Pakistan. The respective clerk collects all cheques and
enters them in clearing Register. Then he affixes stamps on these
cheques and sorts out cheques of different banks and prepares.
Schedule for them. These cheques are sent to clearing house. National

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bank of Pakistan has extended the service of Clearing House. MCB will
receive all the cheques drawn by other banks. Finally they exchange
their cheques mutuality. MCB representative will give cheques of UBL,
HBL, ABL, NBP, and SBP to their representatives, and get the cheques
drawn on MCB from this representative.

Further they settle their account. National bank of Pakistan

representative will work out the balances and will settle their account
from their balances with National bank of Pakistan. The amount of the
cheques is credited in the account of depositor on the 2nd or 3rd day. If
the cheques are not returned it is under stood that all the cheques are

Steps in clearing:

Customer deposits instrument. (Cheque, DD, PO, RTC, etc)

There are four available possibilities about instrument.

1. Other Bank intercity cheque.

2. Other bank outside city cheque.
3. Other branch cheque.
4. Branch’s own cheque.

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1. If other bank intercity cheque is deposited by customer in their

account cheque is dealt in local clearing. Cheque is given to
concerned bank and that bank check the status of their own
customer reference to clearing instrument, if the other bank find
everything clear(balance, signature, date) then reports to MCB
to pay against the instrument. MCB then deposit the
instrument’s amount by giving credit to the customer account.
2. If other bank outside city cheque is deposited by customer,
cheque is dealt through OBC (outward bills for clearing).
3. Example: suppose if MCB Mian Channu customer deposits
Alfalah Lahore branch cheque in their account. MCB Mian
Channu branch will send this cheque to MCB Lahore branch so
that the may clear the cheque in Lahore local clearing and
report back to MCB Mian Channu branch. If Alfalah Lahore
clear that cheque then MCB Lahore branch report MCB Mian
Channu by using advice which contains the information about
the cheque and confirmation about the amount is transfer to HO
account you may take the amount from there. As the advice
received by MCB Mian Channu the customer account is
4. Other branch cheque deposited by customer can be adjusted in
the bank (MCB Mian Channu) in case of online. Because all
information is available online they just check the required
information and make payment or transfer. If cheque is

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amounted above 100,000 then confirmation is required through

5. If customer deposits Branch’s own cheque in their account then
it is treated in local transfer.

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Clearing Process (Flow Chart)

Cheque with slip given Slip is asked & filled

Cheque along with slip checked, signed &

received by officer

Entries in daybooks are made

Entries checked & verified by another

officer after banking hours by officer

Cheques collected at the day end by Main

Branch’s Officials

Cheques are sent to respective banks next

day after posting in computer by Main

The same day not honored cheques are

returned to Main Branch

The day after tomorrow the banks are

informed about dishonored cheques

Provisional entries for returned cheques are

debited again in both computer & daybooks

Party is informed about returned cheques

through Phone or personal contact

Cheques are mailed through TCS in case of

no personal contact the same day

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Credit Department

MCB divided the advances in to two major types:

• Fund Based
• Non Fund Based

In the fund base advances, the funds of MCB is involved and in Non
Fund based only guarantee is given by the bank.

Fund Based Loan:

In fund based loan bank actually grant real cash to borrower against any

Non-Fund Base Loan:

In this case bank does not actually handover cash to borrower instead
issues guaranties.

Mcb Pyara Ghar

Owning your dream home has never been

easier. MCB ‘Pyara Ghar’ is the most
sensible option for purchasing, building, or renovating your new/existing
home. It offers you a range of financing options to help you realize your

After all ", Apna Ghar Pyara Ghar".

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Cities offering housing finance:

Karachi, Lahore, Faisalabad, Rawalpindi and Islamabad cities are

offering housing finance.


Life in the fast lane can be really slow without a

car. MCB Car 4 U makes it a breeze to finance/lease your new/used car.
So get up to speed, because "Kahin Na Kahin Tau Hai…1 Car 4 You".


• Option for financing or leasing

• Financing tenures from 1 to 7 years
• Option for new as well as used cars
• Options for local as well as imported cars
• Financing upto Rs. 25 lacs
• Option for early payment
• Option for replacement loan
• Minimum 20% down payments

Currently available in the following cities:

Karachi, Lahore, Faisalabad, Rawalpindi, Islamabad, Sialkot,

Gujranwala, Hyderabad.

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Agriculture loan:

Agriculture Sector Financing

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 agri 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. Agri financing facilities are available through out the
country at designated Lending Branches. All types of financing is
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.

Eligibility Criteria

The applicant should be a farmer & includes

tenants/individuals/partnerships and corporate farms engaged in farm or
non farm activities are eligible to avail credit facilities under MCB Green
Scheme. Minimum age limit for individual is eighteen years (18).

The applicant should be able to offer adequate Security acceptable to

the bank. The applicant should not be a defaulter of any other bank and

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must be having a clean CIB report. The farmers should be having an

account with the branch. Ladies are eligible to avail credit facilities as co-


Documents required will be the following:

• Agriculture Credit Application (MF-5).

• Appraisal Form (MF-46-Revised).
• Report from Credit Information Bureau (CIB) if required.
• Borrower Basic Fact Sheet (BBFs).
• Valuation of security offered.
• Legal Opinion upon security (where applicable).
• Attested Copy of CNIC of Borrower.
• Copy of Agriculture Pass Book or copies of rural/urban property
documents/Girdawari etc. or any other security acceptable to the
• Proof of having leased land in case the farmer is tenant


The intending borrower is advised to visit the nearest MCB Branch for
information. This will enable him to discuss his / her requirements and
have first hand information on every aspect of the process through face
to face interaction.

Bank shall consider only those credit proposals for financing which are
viable. However, as a general rule, bank will always obtain adequate

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security / collateral, in accordance with sound and prudent banking

practices, for agriculture loans / finances, detailed as under.

a) Mortgage of Agriculture land through Pass Book system (Note:

Financial accommodation against security of third party pass book is not
permissible under loans for Agriculture Purpose Act 1973).Or Mortgage
of rural, urban or commercial property Or Pledge of cash collateral,
securities, lien on bank deposit Or Any other tangible collateral security
acceptable to the bank.

Valuation of Properties:

The property offered as security outside the Pass Book will be valued by
bank's approved evaluators. Branch Manger / officer personally visits the
Agriculture land / property before accepting the same as security. The
Market Value / FSV of agriculture land or rural/urban property shall also
be assessed by Branch Manager / AMM / AMO as independent inquiries
to ensure that market price is realistic and not exaggerated. Market
value of Agriculture land may be accepted (calculated by revenue
department) taking three years average "Baiy" of same locality.

Note: agri loan are categories in tow heads and products are also
divided according to these heads.

• Farm based
• Non Farm based

Farm Credit

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These are the credits provided by the MCB for the purchases of inputs
for development of agriculture sector. Following are two main sub
classes of Farm Credit.

• Production Finance
• Development Finance

Production Finance:

These are short term loans. These loans are provided to farmers for
purchases of different type of input, for example, Seeds, Fertilizers, and
Pesticides. These loans are provided against personal guarantees or
mortgage of land as a security.

Development Finance:

These are medium or long term loans. These loans are provided for the
development of agriculture sector. Main purpose of these loans is to
purchase instrument:

• Tractors
• Installation of tube-well
• Planting of garden

The loans are disbursed against security of land (mortgage) or any other
security acceptable to bank.

Non Farm Credit:

Second major form of agriculture advance is Non-Farm Credit. These

loans are provided against mortgage of land as a security or pledge of

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equipment as a Collateral security. These are medium or long term

investment depending up the project. These loans are provided to boost
up agriculture sector to provide the sources of earning of foreign
exchange as well as to provide employment to people. Following are the
different types of small industries for which loans are provided to
improve the economy of the country:

• Fish Farm
• Cattle Farm
• Poultry Farm
• Dairy Farm

Products are available with different name:

• Shadabi Plan
• Khushali Scheme
• Tractor Finance Scheme
• Aabiari Scheme
• Dairy and Meat Plan
• Murghbani Scheme
• Baghbani Scheme

MCB Card

Smart Card / Debit Cards:

Smartcard is your debit card for cash free

convenience. Use it for your shopping and

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purchases at a rapidly growing nationwide network of merchant locations

including petrol pumps, stores, bakeries, departmental stores, jewelers,
travel agents, restaurants, chemists, hospitals etc.

Utility Bill Payment

Make bill payments upto Rs. 20000 per day per card.

Currently available for payment of gas bills of Sui Southern Gas

customers, this facility is being expanded to cover all utility bill payments.

Funds Transfer

Transfer funds between a maximum of 8 pre-registered online accounts

within the growing network of MCB branches across 30 cities.

24 Hours Cash Withdrawals

Balance Inquiry

Mini Statement

MCB Visa Platinum:

MCB Visa Platinum Credit Card is accepted at nearly 29 million locations

in more than 150 countries around the globe and over 30,000
establishments in Pakistan.

MCB Visa Platinum Credit Card members can avail the comfort of CIP
lounges at no cost at all. Just present your MCB Visa Platinum Credit
Card and relax in the CIP lounge at Karachi, Lahore and Islamabad
International airports.

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• Access to over 600 airport VIP lounges in over 100 countries and
over 300 cities – so you can treat yourself like a VIP no matter
where you travel, or which airline and class you fly.
• Peace and quiet – relax and unwind away from the chaos of the
airport, and enjoy a range of complimentary refreshments.
• Full business facilities – most lounges offer phone, fax, email and
internet facilities, some even have conference rooms.
• Excellent value for money – three membership plans designed to
offer you VIP airport lounge access at competitive rates no matter
• how frequently you travel.

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MCB Virtual, Mobile & Sms Banking

Virtual Banking:

MCB Virtual Internet Banking offers

you the convenience to manage and control your banking and finances;
when you want and where you want. MCB’s Virtual Internet Banking
facility is:

• Simple
• Secure
• Free of cost

MCB Virtual Internet Banking allows you to access banking services, 24

hours a day, 7 days a week and throughout the year.

MCB offers

• Detailed Account Summary of all listed accounts.

• Mini-statements of each of the listed accounts showing recent
transaction history for those account(s).
• Statement-by-Period of each of the listed accounts, based on the
period specified.
• Immediate or Scheduled Transfer of Funds between your own
accounts, as well as to third-party accounts setup as beneficiaries,
maintaining accounts with MCB.

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• Scheduling of ‘One-Time’ as well as ‘Recurring’ Funds Transfers.

• Payment of utility bills for registered Utility Companies.
• Immediate or Scheduled Bill Payments. Scheduling of ‘One-Time’
as well as ‘Recurring’ bill payments. Option for ‘Full’ or ‘Partial’
payment based on the payment conditions specified by a particular
Utility Company.
• Bulk Salary Transfer for Corporate Customers, to facilitate them in
paying salary to the corporate employees, who maintain accounts
with MCB.
• Cheque Book Request for any of your listed accounts.
• Payment/Transfer Alerts for reminding, in advance, prior to the
processing of specified payments and transfers.
• Personal Alerts for reminding of pre-specified events and
• Mobile Recharge facility for all Telco’s!

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How can you start:

• Click on the register link on the MCB Virtual Banking page &
complete the application form, suggest your MCB Virtual Internet
Banking User ID choices and click submit.
• Visit any MCB ATM, select the option “Service Requests” and on
the next screen select Internet Banking Reg. Wait a while for the
Registration to complete and the appropriate message will be
• Check your registered email address for the registration
confirmation containing your Virtual Internet Banking Password
and Customer number.
• With your Customer Number handy, call the MCB Call Centre on
(021) 111-000-622 to obtain your User ID. After verification User
ID will be disclosed to you, enabling you to start using the MCB
Virtual Internet Banking service.

To enable you to use the MCB Virtual Internet Banking Service, we will
give you an initial login password and a user identification code you may
then choose your own Password for the MCB Virtual Internet Banking
Service. These are your Security Codes and both will be used to identify
you whenever you access the MCB Virtual Internet Banking Service.

Mobile Banking:

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MCB Mobile is a brand new way to check your account balance, view
your mini-statement and do the following:

• Recharge Prepaid Mobile Connections

• Pay Postpaid Mobile Bills
• Pay Utility Bills
• Transfer funds instantly (to any MCB account)
• Pay MCB Credit Card Bills
• Make Donations and lots more…

It’s quick: Transactions at the speed of thought!

You can do transactions wherever and whenever you want to.

Thinking of paying a bill, buying mobile credit or sending money to

anyone with an MCB Account? You can do it NOW.

• No need to call the call center.

• No need to visit a branch.
• Just use your mobile phone to login to MCB Mobile and all of this
is possible in a matter of seconds.

It’s Easy

MCB Mobile is one of the easiest ways to make payments. Avoid the
cost of physically going to a branch to make your payment. Avoid the
hassle of standing in a line to do a transaction. Simply use your mobile
phone to make your everyday payments.

It’s Secure

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MCB Mobile gives you peace of mind.

• Communication between the mobile phone and MCB takes place

over encrypted channels.
• No Bank Account related information is stored on your Mobile
• MCB Mobile is VeriSign certified.

To ensure maximum security this service uses two PINS for transactions
to take place. Without the two PINs no activity can take place via MCB

• The Mobile PIN is the PIN which you receive when you register for
this service. This PIN only allows you to login to this service.
• The ATM PIN is the same as the ATM Card’s PIN which you used
to register for the service. This PIN allows you to conduct any
• For eligibility you must have active MCB ATM card.

Registration process:

• Visit any MCB ATM, insert your ATM card and enter your ATM PIN
to for authentication.
• Select mobile banking registration from Service Request menu.
• Enter the mobile number you want to register for mobile banking
and confirm entry.
• You will receive a SMS confirming registration

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• Call our call centre at 111-000-622 to speak to an agent. After

verifying your information you will be activated and a Mobile PIN
will be sent to you via an SMS.
• Point your mobile browsers to to start

Charges / Limits:


• An annual fee of Rs. 300 + FED is applicable for MCB Mobile

• All customers get a Three (3) Month Free trial period from date
of activation.
• MCB does not charge a transaction fee. All transactions
(financial & non financial) are FREE of cost.

Transaction Limits:

• Overall Daily financial transaction Limit of Rs. 100,000.

• Prepaid Mobile Top-up limit of Rs. 10,000 per day.
• Number of financial transactions limited to 10 per day.
• Credit Card Bill Payment is as per your actual outstanding
balance. It does not fall under the Overall Daily limit.

Sms Banking:

Now, MCB SMS Banking gives you quick and easy access to your
account(s) round the clock, at your convenience.. This service is
available to all MCB Account Holders anytime, anywhere.

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MCB SMS Banking allows you to avail the following services:

• Account Balance Inquiry.

• Account Mini Statement (last 5 transactions).
• View Credit Card(s) minimum payment.
• View Credit Card(s) outstanding balance.
• View Credit Card(s) bill.

A Free Service

MCB SMS Banking is a free service for all MCB account holders.
However, standard SMS charges levied by your service provider are

This service is currently available for Mobilink Customers.

Registration process:

Simply follow the steps below:

Step 1: Contact MCB Call Center on 111-000-622(MCB). The call center

executive will verify your account information. After successful
verification, you will receive a welcome message on your mobile phone

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Step 2: Once you receive the Welcome Message on your mobile phone,
you need to generate your SMS Banking PIN in order to start using the
service. To generate PIN:

• Type RG, give a space, then type a 4 digit PIN of your choice and
Send to 6222
• For example, if you select 1234 as your 4 digit PIN code, send RG
1234 to 6222.

You will receive a message confirming your PIN on your mobile.

Step 3: Congratulations! Now you can start using SMS Banking service.

Just type the required Service Code, give a space and type your four
digits SMS Banking PIN and send to 6222

For example: BAL 1234 and send to 6222

Bank Charges (July 2010)

S. # Item Rate

1 Telegram on TT Actual-

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2 Postage on MT Actual-MinimumRs.75

3 Cancellation of DD/Pay Rs.150 far Account

order holder
Rs.400 far non Account
4 Issuance of Cheque Book Rs. 6 per leaf

5 Account closing Cost Rs.250 for LCY

6 Issuance of duplicate Draft Rs.400 far Account

Rs.300 far non Account

7 Issuance of duplicate FDD Rs.500

8 Issuance of duplicate Pay Rs.200 far Account

order holder
Rs.250 far non Account

9 Issuance of RTC Rs.10 per piece

10 Stop payment charges Rs.300

11 Issuance of fresh statement Rs.50

12 Issuance of duplicate Rs 50

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SWOT Analysis


• Strong customer relationship

• MCB is the first Pakistani privatized bank and because of its
quality management, marketing, innovation in products and
services. Owing to all such factors they have established a good
reputation in the banking market. The name of MCB makes you
recall the highly cooperative and professional individuals ready to
serve you with maximum zeal and zest.
• Flexible behavior of employees to customers
• MCB in Pakistan is the also in the list of highly automated banks
like Emirates because of its modern style of banking through fully
computerized control and twenty four hour banking.
• Working since 1980 in Mian Channu
• Experienced staff

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• Staff is not enough to deal with customer; at least one CSO is

• Duties are performed without sequence which later leads to delay
and inconvenience
• A behavior has been noted that bank tries to feel at ease with
good looking; rich and educated people and the poor looking
customers feel some bit strange in the environment of the bank.
• To give everyone equal protocol is lacking among employees.
• No IT review is taken. (Weakly or monthly)
• Mismanagement of time is another big mistake in MCB branches,
the bank official time of closing is 5:30pm but due mismanagement
of time allocation and work the staff is normally on their seats till
7:00 or 8:00 clock.
• Space is not enough to deal with large number of customers inside
the bank and building is in bad condition.
• No proper parking area with shade.
• The majority of people are not well aware about the products of
MCB. Therefore it should advertise extensively especially RTC and
Master Cards.
• No ATM is available in MCB Mian Channu branch.


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• Bank is situated at market comity gate so it can grasp more

customers by marketing that would be fruitful to the bank.
• Mian Channu is seen very busy market for business activities so
there are number of opportunities to find loyal and successful
people who need funds to expand the business.
• Mian Channu city has very beautiful and grassy stadium that
remains busy with variety of game activities so bank can sponsor
them at small level and can earn attention.
• The belt where Mian Channu is situated is also called agriculture
belt so there are number of opportunities to issue more agriculture
base loan.


• Competitions among banks / new banks are being opened.

• Electricity shortfall
• Political instability
• Natural disasters
• Terrorist activities
• Increment in taxes

Competitive Strategy

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To be competitive the Bank has further reinforced its position in the

Consumer banking area by streamlining and re-launching the
consumer financing products and introducing more convenience
based solutions. With the re-launch of auto finance and house finance
products, the Bank pushed the products with full thrust. The Bank has
also launched a running finance facility against mortgage of property.
technology continued to play an important role in improving and
expanding product offerings.

The Bank introduced more IT based products to cater to the changing

lifestyles and needs of the customers. MCB Virtual-Internet Banking
was launched with wide ranging banking solutions for the
customers ranging from individual to corporate customers and it has
become the most preferred Internet banking solution in the country.

MCB also had the privilege of being the first Bank in Pakistan to launch
the comprehensive bill payment facility through its alternate delivery
channels which include Internet Banking, ATMs and MCB Call Centre,
currently with six payment partners. Similarly, the Bank also took
initiatives to increase the usage of debit facility. To provide timely and
updated information, MCB has also provided a new look to its website
which is user friendly and considerably easy to browse. The Islamic
Banking initiative has been very successful in attracting new customer,
both individuals and companies. Similarly, those relationships, which
were confined only to current account facility, have grown into stronger
business relationships. The branch network was expanded to Lahore,
Multan, Hyderabad and Faisalabad. The Bank plans to further expand its

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Islamic Banking branch network to other metropolitan areas and also to

introduce new sharia compliant banking solutions to a wider range of
customers for satisfying their individual and business needs. Some wide-
ranging new strategic initiatives were also taken up which will be
important for the Bank in years to come. A private company has been
formed in Hong Kong (fully owned subsidiary of MCB) in partnership with
Standard Chartered Bank, handling trade transactions of select countries
in the Asia-Pacific region. It is projected to earn US$ 1 million in its first
year of operations. To increase its international presence, the Bank will
be opening its representative office in Dubai and entering into major
strategic alliances with banks in the UAE/ especially for marketing our
consumer banking products to non-resident Pakistanis. Furthermore,
feasibility is also being carried out for entering other international
markets. MCB's operations continued to be streamlined with focus on
rationalization of expenses, re-alignment of back-end processing to
increase productivity, enhancement of customer service standards,
process efficiency and controls. The Bank has taken the lead in
introducing the innovative concept of centralizing Trade Services in the
country by providing centralized foreign trade services to branches with
a view to improve efficiency, expertise and reduce delivery cost.

Management of Human Resources has been one of our core focus

areas. MCB is committed towards attracting, retaining and motivating
outstanding people. Challenge for MCB is to provide an environment in
which employees can better realize their potential. The Bank introduced
'reward for performance' where high potential officers were identified and

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rewarded accordingly. In view of the competitive environment, the Bank

is focusing on performance and introducing a more robust performance
management system. MCB is also strongly committed to training its staff
at all levels. The Bank will also be implementing the full suite of the latest
version of SYMBOLS Version 8. MCB Bank will run SYMBOLS E-
Finance modules to deliver personalized services to its customers over
multiple delivery channels, while SYMBOLS Enterprise Operations
Center will serve as its core banking transaction-processing engine. By
implementing SYMBOLS, MCB Bank aims to raise the level of its
customer service and its time to market in new product offerings for its
three core banking businesses in Corporate, Commercial and Consumer
Banking retaining its market leadership as Pakistan’s progressive Bank.

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Learning & Duties Performed

During my internship in MCB Mian Channu I found my supervisor and
other staff very cooperative.
• Customer dealing especially in account opening department where
I did open number of accounts.
• I learned about how to adjust myself in organization environment.
• How motivation leads the person towards better performance.
• Punctuality towards work
• If you will leave the today’s work on tomorrow how it will make your
tomorrow painful.


• Filling of slips for: Online transfer, Deposit slip, DD slip, pays order
and RTC.
• Issuance of cheque book
• Account opening
• Active dormant account
• Making of clearing
• ATM card form filling and sending request
• Making of speed and exchange payment vouchers
• Maintaining of cheque return register
• Making of NADRA verification of bank customers

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Knowledge Acquired & Experience Impact

New Knowledge Acquired

It was really great experience for me to work in the practical scenario

because before this internship training I was not aware at all that how
the work is actually done in the organizations. The bank in which I have
done internship was basically a consumer bank providing facilities of
personal and business loans. They are not dealing with import & export.
The working environment of bank was very friendly and cooperative; all
the seniors really helped me whenever I asked about any thing. In the
starting days I was put on to the job of cheque filling and deposit slip
filling. I also learned how to issue cheque book. After one week I have
shifted to account opening cell where I learned about account opening
procedures customer dealing and filing about opened account under
supervision of Sir Mustafa. I opened more than 15 accounts. I have also
worked in remittance department where I learned the method and
charges schedule of making Pay Order, Traveler Cheques and Demand
Draft etc under supervision of Miss Aysha Zafar. I have also worked in
clearing department with clearing Officer Tajammul Niazi where I learned
how out station cheques and other banks cheques been cleared and
making of OBC.

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How Experience Impacts Career

In educational institutions one gets only bookish knowledge and there is

not too much training given to them about the actual working
environment prevailing in the organizations. It does not matter how much
intelligent a person is, when he first time steps into the practical life
he/she thinks that we have not learnt enough to work in the practical life.
Experience makes a man perfect for work and practical life. The bank
where I have done internship is having qualified staff but they are
excellent in their work due to experience. After the internship I also feel
that now I can perform the assigned activities effectively and efficiently.


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In Mian Channu MCB branch there are number of things that should
notified by the manager and their staff for the betterment of the branch. I
observed and feel some activities that should be taken to improve the
performance of the branch.

• MCB Mian Channu branch building is in very pathetic position and

immediately needs to be change or reconstruct.
• There is a need of one CSO (customer service officer) to deal such
a large number of customers. This action will make the stationary
cost low, decrease in some usual error of slip filling and release
burden from other employees.
• IT review should be taken weekly where all computer and other
accessories should be tested.
• Proper parking area should be provided.
• There should be a training session on monthly basis for staff.
• Job rotation should be done; it will provide help to keep operation
smooth if any employee is on vacation.
• Marketing rounds for new and fruitful accounts once in two months
should be taken.
• Computerized token system should be installed to avoid long
queues for cash deposit and withdrawal.

By implementing the above mentioned suggestions ultimate customer

will be facilitated and happy customer is a way of getting more
customers through their word of mouth.

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Earning per Share

This ratio determines the amount of income that has been earned on each
share outstanding.

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Earning per share=Net profit after tax/ Total no of shares

EPS of 2008 15, 374, 600000/ 691,104,527=22.25

EPS of 2009 15, 495, 297000/691,104,527=22.42


. Earning per share is better in 2009 because in this year return

on investment was also satisfied.

Net Profit Margin

N.P.A.T/ Total Income * 100 (Rupees i000)

Net profit of 2009 = 15,495,297/51,616,007*100

2006 2007 2008 2009

47.1% 48.02 % 38.39% 30.02%


Net profit margin in 2009 is less than the previous years due to
increase its expenses

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2006 2007 2008 2009

111.84% 110% 111% 124.56%

Current ratio
[Current Ratio = Current Assets / Current Liabilities](Rupees in 000)

Current ratio of 2009 = 468168736/375850551


In 2009 current ratio of MCB is higher than previous

year it means in 20098 company current assets is higher
than its current liabilities

Working Capital

It is the difference of current assets and current liabilities.

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Working capital=current asset-current liability (Rupees in 000)

Working capital of 2009 = 468168736-375850551

2006 2007 2008 2009

31,757,831 34,129,446 43052232 92318185


Working capital of 2009 is much better then past years. It

means that assets are utilized more economically in 2009 as
compared to others years.

Return on assets

NPAT/total assets*100 (Rupees i000)

Return on assets of 2009 = 15,495,297/509,223,727*100

2006 2007 2008 2009

7.53% 7.74% 9.02% 3.04

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In 2009 the net profit of the bank as compare to its assets is

less than the previous years of 2008 and 2007 which is
mentioned in this graph.

Return on Investment (ROI)

It is the return on investment..

Return on investment= Net profit after tax/Total investment (Rupees


Return on investment of 2009 = 15,495,297/167,134,465

2006 2007 2008 2009

19.12% 48.25 15.91% 9.27%


The return on investment in 2007 is much higher than

current year return in 2007 the bank earned a
reasonable profit so its roi is 48 % and in 2007 it is only
9.27 %

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Gross Profit Margin

Net markup/ Interest earned (Rupees 000)

Gross Profit Margin of 2009 = 35,774,544/ 51,616,007

2006 2007 2008 2009

82.44% 75.26% 71.11% 69.30%


Due to decrease in profit before tax in 2009 its gross profit

margin is also lower than previous years

Fixed Assets Turnover

Fixed assets turnover ratio is also known as sales to fixed assets ratio.
This ratio measures the efficiency and profit earning capacity of the

Fixed Assets Turnover Ratio = Cost of Sales / Net Fixed Assets (Rupees

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Fixed Assets Turnover Ratio of 2009= 51,616,007/ 18,014,896

2006 2007 2008 2009

2.84 1.98 2.31 2.86


The MCB bank in 2009 utilize its fixed assets more effectively
than previous years to generate its sales

Return on Equity
Return on Equity of 2009 24, 710, 953000/ 6, 911, 045000=3.56

2006 2007 2008 2009

3.14 3.31 3.27 3.56


Return in equity in 2009 is 3.56 % which is higher than previous

years so its means that the return on equity capital is very

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Net Profit Margin


N.P.A.T/ Total Income * 100

Net Profit Margin of 2009 15, 495, 297000/ 51, 616, 007000=

2006 2007 2008 2009

47.1% 48.02 % 38.39% 30.02%


Net profit margin is increasing in 2026 to 2007. It means the

bank is going in better position. But in2008 and 2009 it
decreases gradually which bad sign for bank.

Acid Test Ratios

It is the ratio of liquid assets to current liabilities.

Quick ratio= current assets-inventories/current liabilities


2006 2007 2008 2009

89.06 76.94 85.36 80.09%

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In 2006 acid test ratio is higher than 2009 which means the
bank has less most liquidate assets in less proportion than in


In a nut shell it can be concluded that the overall performance

of the bank is quite satisfactory. MCB's total assets,
investments, deposits and equity has increased but profitability
has decreased by a soaring percentage of 58.23%. The reasons
which I have traced out of my analysis and studies are as

• Increased financial costs of funds for which expected

investment revenues did not open up.
• Return on lending has been reduces
• Bank has increased its classified advances by 35% to fulfill
the requirements of Prudential Regulations. The fresh
increase is mainly 51% in the other assets especially
mentioned classification. According to the prudential

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regulations requirements, accrued markup cannot be

credited to income but to suspense A/C.
• During the year 2008, the economy of the country
remained in sluggish. In spite of various policy measure
initiated by the government for confidence building of the
domestic and foreign investors and steps taken such as:
○ Creation of small and medium entries development
authority (SMEDA).
○ Financing under prime minister's self employment
○ Launching of Mera Ghar scheme etc.
○ For revival of economy, the expected investment
environment could not be created and economy did
not pick up.
• The large number of non-commercial banking institutions
(DFI's and NBFI's) also competed for limited resources and
investment avenues- thus further narrowing the spread of
banking industry.
• Although, economic sanctions imposed as a result of
nuclear blast and the country's level of foreign debt and
directly impending economic growth, but the debt
rescheduling at the Paris Club and large financial
commitments by the multilateral agencies will improve
country's external position and provide a sound footing for

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medium term planning. In this improved and stable

economic environment, the bank will get opportunities
and by making sincere efforts can increase its profitability
and equity.

Previous year is expected to pose a tough market

environment. Shortage of rains and electricity can seriously
impact overall GDP growth. The tight monetary policy is
impacting the country's exports with a ripple effect on the
manufacturing sector. The documentation drive, which is good
for the country over a long period of time, is being expectantly
viewed with concern by certain segments. The combined
impact of these factors may cause a slowdown of economic
activity in certain pockets of the economy.

On the positive side, the resolution of issues in political and

pragmatic handling of the documentation deive by the
government and continuous efforts to normalize international
relations should bring positive results.

MCB is and will positioned and flexible enough to operate

effectively in the changing scenario. We will continue to
broaden our customer base, harnessing the growing strength of
the MCB brand and expand the platform to provide value based
propositions to our customers.

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Mr. Imran Operational Manager of MCB Mian Channu branch

Mr. Mustafa In account opemimg Cell

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Miss Aysha Zafar Remittance Officer

Mr. Imran Aslam in Creditdit department

Reding of MCB internship report hard copy

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