final report mcb

Internship Report on Muslim Commercial Bank, Gondal Branch Attock

EXECUTIVE SUMMARY

By the grace of almighty God, I have successfully completed my

6 weeks internship as per requirement of MBA course. I was appointed at

Muslim Commercial Bank Ltd Gondal Branch Distt. Attock.. I feel my self lucky

to have worked with such a cooperative, dedicated, result oriented team. They

all helped me in every possible way they can. I was happened to work with all

three departments i.e. Computer Department, Cash Department, & Accounts

Department.

In Computer Department I worked with the Computer

operator. I was assigned to the issuance of token and entering the token

number and cheque number of customers on the registers and was also

happened to watch and operate the computer software LINUX that how they

debit and credit the amount of account holders; there I was happened to meet

with the people of different business areas. In Cash Department I was

happened to work with cashier, who was basically responsible for the

withdrawal and deposit of cash from the customers and also entering the

amount deposited or withdrawn from the bank in the Bank’s transfer sheets

and at the end of the day the entering of the total cash that the bank has in

the Cash books. I also learned from the cashier how to check the fake

currency notes and that was an interesting work. In the Accounts department I

worked with the accountant for the preparation of Demand Drafts, Telegraphic

transfer, Issuance of Rupee Travelers Cheques, Preparation of Debit and

Credit vouchers, Demand Drafts of Different Oil companies Like Shell and

PSO, I was also introduced with the preparation of transfer sheets and utility

bills scroll sheets. There I also happened to work in place of accountant when

he was on the leave for two days and the Bank Manager was very satisfactory

with my work.

At the end I would conclude that the internship had helped me a

lot in different areas of banking and other concern areas of my study. I also

learned how to work in tough situations which would help me in a long way.

And it wouldn’t be possible without the assistance of the team with whom I

had spent 6 weeks.

Comsats Institute of Information Technology, Attock 1


Chapter # 1

Introduction to Report &

Organization



Background to Study

Internship training program during Master in Business administration

program is necessary for the partial fulfillment of the completion of Degree of

Master in Business Administration. It is offered in spring semester in Comsats

Institute of Information Technology, Attock. I am also a student of M.BA-IV

(Spring) that’s why it is necessary for me to complete an internship session of

about 6 weeks in some manufacturing or service industry relevant to my area

of interest and specialization.

Purpose of Study:

The purpose of this study is to explore the functions, operations and

services of Muslim Commercial Bank by taking Gondal branch Distt. Attock as

a model. The readers of this report will quickly understand the way MCB

Branch works and through this concise report they might get the full-fledged

idea of working of banking industry of Pakistan.

Scope of study:

This study will facilitate the students regarding the working of Banking

sector of Pakistan because most of the teachers during their lectures use the

examples of Banks like Muslim Commercial Bank, National Bank, UBL, Bank

Alfalah and many others, students should study this report so that they must

grasp the functioning of such Banks.

Methodology of study:

There are mainly two methods that are used for the collection of data.

Primary Data:

Interviews from my immediate supervisor and management personnel

such as managers and different officers in the branch.

Observation of functions of Branch operations on the spot.

Observation of different processes of Branch on the spot.



Secondary Data:

Copies of the reports of Bank operations such as computerized

statements which includes different type of records about the

customers and the bank.

Internet is also very helpful for me to study more about banking sector

of Pakistan.

Different type of booklets of the Bank.

Registers of the Bank.



Chapter # 2

Introduction To Banking



BANK:The word bank is said to have derived from the Italian word

‘Bancus’ or ‘Banque’. The History of banking is traced to as early year 2000

B.C. The priests in Greece used to keep money and valuable of the people in

the templates. These priests thus acted as financial agents. The origin of

banking is also treated to early goldsmith.

In order to regulate the banking organization a conference was

held in 1548 in Nuremberg. It was decided that a bank should be set up by the

state, which should streamline the banking organization and techniques. The

first central bank was found in Geneva in 1578. The Bank of England was

established in 1694.

DEFINITION OF BANK

1. Banking Companies Ordinance 1962“Banker means a person transacting the business of accepting

for the purpose of lending or investment of deposits and withdraw able by

cheques, drafts or otherwise and includes any post office saving banks.”

2. Prof. Dr. Harts “A banker is one of the ordinary course of his business receives

money which he repays by honoring cheques of persons from whom or on

whose accounts he received it”.

3. Prof. 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 lender. He

borrows from one party and lends to the other party”.

FUNCTIONS OF THE COMMERCIAL BANKS

The banking business as we know it today is compared of three

separate and distinct principal functions.

The acquiring of funds to invest and loan.



The investing of such funds in loans and bonds.

The searching of such funds, such as providing of checking saving

facilities and the collection of drafts notes and cheques.

These functions while differing in detail of operations follow the same

principles established hundreds of years ago by moneylenders and

exchangers.

TYPES OF BANKS

Today the principal banking and financial available to serve

commercial are provided, and made available to them through following types

of banks.

Commercial banks

Trust companies

Saving banks

Saving and loans associations

Finance companies

Scheduled and non scheduled banks

Industrial development bank

BANKING IN PAKISTAN

HISTORY OF BANKING IN PAKISTAN:

At the time of independence, commercial banking facilities were

provided fairly well here. There were 487 offices of schedule banks in the

territories now constituting Pakistan. An Expert committee was appointed. The

committee recommended that the reserves bank of India should continue their

function in Pakistan until 30th September. 1948, and Pakistan would take over

the management of public debt and exchange control from reserve bank of

India on April 1948 and that Indian notes would continue to be legal tender in

Pakistan until 30th September 1948. Moreover the banks including those

having their registered office in Pakistan transferred them to India in order to

bring a collapse of a new state. By 30th June 1948 the number of the offices of



scheduled banks in Pakistan declined from 487 to only 195.In order to make

necessary arrangement for the assumption of control and expert committee

was appointed to recommend necessary steps, including the required

legislation to establish a central bank for Pakistan. The governor-general of

Pakistan Quaid-i-Azam Muhammad Ali Jinnah inaugurated the State Bank of

Pakistan order was promulgated on May 12, 1948. The first Pakistani notes

were issued in October 1948 in the State Bank of Pakistan withdrew the

reserves Bank of India notes of the value of Rs. 125.02 crores with the help

the Pakistan notes.

COMMERCIAL BANKING IN PAKISTAN:

Commercial banking in Pakistan are companies “Which transact the

business according to provision of the banking companies ordinance 1962

section 5(b) which says “Banking” means the accepting for the purpose of

lending investment of deposits of money from the public repayable on

demand or otherwise and withdraw able by cheques drafts order or

otherwise”.

Commercial banks in Pakistan have been authorized to engage

in any one or more of the following forms of business in according with section

7 of the following forms of the banking companies’ act 1965.

The borrowing raising or making up of money the lending or advancing

of money either upon or without security the drawing making, accepting

discounting, buying, selling, collecting and dealing in bills of exchange,

houndies, promissory notes, coupons, drafts, scripts, and other

instruments and securities whether transferable or negotiable or not:

the granting and issuing of letter of credits; traveler’s cheques and

circular notes; the buying selling of foreign exchange including foreign

Bank notes; the purchasing and selling of bonds the providing of safe

deposits vaults; the collecting and transmitting of money securities.

Acting as agent for any government or local authorities or any other

person or persons; the carrying on of agency business of any

description including the clearing and forwarding of goods, giving of



receipt and discharges, and otherwise acting as an attorney on behalf

of customers, but excluding the business of a managing for public and

private loans negotiating and issuing the same.

The effecting, insuring, guaranteeing, underwriting, participating in

managing and carrying out of any issue, public or private, government

or municipal or other loans or shares, stock or debenture of any

company, corporation or association and the lending of money for the

purpose of any such issue.

Carrying on and transacting every kind of guarantee and indemnity

business.

Managing, selling, and realizing any property or any right, title or

interesting in any such property which may from the security for any

such security.

Undertaking and executing trust.

Undertaking the administration of estates as executive trustee or

otherwise.

Establishing and supporting or siding in the establishment a support of

association.

Acquiring and holding general dealing.

Any other forms of business, which the central government may, by

notification in the official gazette specify as a form of business in which

it is lawful for banking company to engage.

It means that the above-mentioned services of the present’s day can be

categorized as under:

Agency services

General utilities services.

Collaborating of loans raised by the government or public bodies and

trading by corporation.

Commercial banks constituted the most important source of

institutional credit in the economy of Pakistan.



Chapter # 3

Introduction to MCB



HISTORY OF MUSLIM COMMERCIAL BANK LIMITED:

Muslim commercial Bank (MCB) is not an overnight success. It

started corporate life in Calcutta on July 9, 1947. After the partition of the

indo-Pak sub continent the Bank moved to Dacca (the capital of former East

Pakistan) from where it commenced business in august 1948. In 1956 the

Bank transferred its registered office to Karachi where the head office is

presently located. Thus, the Bank inherits a 50-year legacy to trust in its

customer and the citizens of Pakistan.

NATIOINALIZATION:

In January 1974, the government of Pakistan nationalized MCB

following the banks (Nationalization) Act 1974, subsequently, in June 1974,

Premier Bank limited merged with MCB.

PRIVATIZATION:

A wave of economic reforms swept Pakistan in the late 1990’s

introducing the need for privatization of state owned banks and companies in

April 1991, MCB because Pakistan’s first privatized Bank, the government of

Pakistan transferred the management of the Bank to a national group – group

of leading industrialists of the country by selling 26% shares of the Bank. With

a view to broaden equity holding the government sold 25% of the paid up

capital to the general public.

In terms of agreement between the government of Pakistan and

the national group additional 24% shares have been purchased by the group

making their holding 50%. 25% was retained by the government.

Now it is fully privatized.

Vision Statement

Challenging and Changing the Way you Bank.



Mission Statement

MCB Bank’s team of committed professionals is dedicated to

maintaining long term customer relationships through outstanding service and

convenience.

CORE VALUES

Trust

We are the trustees of public funds and serve with integrity &

commitment. Ethical behavior is of critical importance to us. We adopt full

compliance with internal and external policies and procedures, operating

within the legal framework

Customer FocusWe continuously seek to exceed our customer’s expectations, forging

and maintaining long term relationships

InnovationWe strive to be the market leaders in innovative products and services

offering customized financial solutions with flawless execution

Teamwork

The diversity of our people is our strength. We inspire and challenge

each other – working together to achieve synergy

Achievement

Our people are our most valuable asset. We are committed to a result

oriented culture. Our goals are clear and merit is the only criterion for reward

Social Responsibility



As responsible citizens we contribute to the social welfare of the

community we live in

SWOT Analysis

Strengths

MCB is in its over 50 years of operation. It has a network of over 1,200

branches all over the country with business establishments in

Bangladesh, Sri Lanka and Bahrain. The branch break-up province

wise is Punjab (57%), Sindh (21%), NWFP (19%) and Baluchistan

(3%) respectively.

Being the senior bank in Pakistan it is highly recognized all over

Pakistan and it is very well known among its customers

MCB has a huge amount of Branches all over Pakistan where other

banks still can not be able to provide their services and that is a huge

bonus point for the bank

The bank has huge amount of assets

The bank is involved in different investing activities where there is a

huge amount of output available for the bank that bank can use for its

growth

MCB has a very senior and dedicated work force as well as young and

creative staff which is a very big asset for the bank.

MCB has an edge over other local banks, as it was the first privatized

bank. The State Bank of Pakistan has restricted the number of

branches that can be opened by foreign banks, an advantage that

MCB capitalizes because of its extensive branch network.

Eight years after privatization, MCB is now in a consolidation stage

designed to lock in the gains made in recent years and prepare the

groundwork for future growth.

MCB looks with confidence at year 2001 and beyond, making strides

towards fulfillment of its mission, "to become the preferred provider of



quality financial services in the country with profitability and

responsibility and to be the best place to work".

Weaknesses

With the strengths the Bank has also some weaknesses which are as

under

Though Muslim Commercial Bank installed computer yet the system

has not totally shifted on computer. Manual procedure is still there

hence computer facility is not fully availed. It should be fully availed and

system should be fully computerized.

A lot of productive time is wasted by the staff in unproductive pursuits

and tea and lunch breaks are got voluntarily extended and the time

spent in corridors, courtyards, depends on the staff will. This tendency

of late must be eliminated which reflect adversely on the image of the

institution and has posed a serious problem.

It should not be like that a person who may be a very good worker but

possessing lack of managerial capabilities should be posted as

manager. But as second place in command or some heavy working

department wished persons together with managerial qualities and

manners in the same fashion should be posted and placed as

manager.

People have to wait for re-cashing their cheques for about 10 to 12

minutes, which is not good for the reputation of bank.

It is human nature one goes behind reward and incentives while and try

to avoid from punishment. Likewise in commercial institution like bank

this system be introduced with full force means active smart, educated

skilled, self spoken and well versed staff personal, should be reward

and appreciates, while on the other hand lazy, lethargic, heard, rough

dealers and ill mannered must be warned penalized and punishes

Opportunities

The bank has a lot of opportunities which includes



Since the Bank has an extensive networks of branches so if the bank

can be able to computerize all of its branches then it can be able to

capture the market more efficiently

The bank has already a huge amount of customers by providing better

and better services to their existing customers, but word of mouth can

also be helpful in increasing the number of customers to have a

competitive advantage over its growing number of competitors.

Since the Bank is earning a lot of profit per annum so by increasing the

employee’s salaries and providing incentives the Bank can produce

more loyal employees that can increase the productivity.

THREATS

With opportunities the Bank has also some threats which includes

Due to increasing number of foreign banks in Pakistan which offer a

very attractive package for their employees the very key employees of

the bank are more likely to resign which is a very major threat.

Not all branches are computerized neither providing ATM services and

no online banking and the customers demand for these services is

increasing day by day so Bank should computerize all its branches.

At some places, the Muslim Commercial Bank Limited is over-

employed. which is causing over expenditure



Chapter # 4

Products & Services



MUSLIM COMMERCIAL BANK-CREATING VALUE

The world has entered a new era. So has banking. The modern

customers want excellent services and newer cost effective products at his

fingertips. With a mission to meet customer’s expectations and a vision to be

preferred provider of financial services, MUSLIM COMMERCIAL BANK has

come a long way. And with the same enthusiasm keeps achieving goal after

goal, aim after aim.

Do you require a savings account with attractive returns or investment

products that give you monthly profits?

How about 24-hour cash access in major cities of Pakistan or safe payment

products for your high value transactions?

Or maybe you need a convenient payment instrument that has the highest

acceptance around the world.

MCB provides you a choice of products and accounts that suit your lifestyle

and your needs.

Our products are designed to cater to all your financial needs: Convenient 24 hour banking services through the largest ATM network in

Pakistan and global acceptance via partnership with MasterCard International.

Buy MCB Pak Rupee Travelers Cheques the safest way to carry cash for

high value cash transactions.


http://www.mcb.com.pk/mcbrupee.htm

http://www.mcb.com.pk/mcbatm.htm


PRODUCTS & SERVICES

The Corporate Bank offers a whole range of banking products/services

that can be broadly divided into the following categories:

Demand Draft

If you are looking for a safe, speedy and reliable way to transfer

money, you can now purchase MCB’s Demand Drafts at very reasonable

rates. Any person whether an account holder of the bank or not, can purchase

a Demand Draft from a bank branch.

MCB Rupees Travelers Cheques

MCB Rupee Travelers Cheques are as good as cash, infact better.

Better because with Rupee Travelers Cheques you have the power to

purchase and a feeling of security that should you lose them, you will get a

refund.

MCB rupee Travelers Cheques are accepted at major shops, travel

agents, hotels, business establishments and MCB branches all over Pakistan.

You don’t have to be an MCB account holder to buy the Rupee Travelers

Cheques. Any body can purchase them. It is a safe and convenient way to

conduct everyday business. At a time when thefts and robberies are on the

increase, you are better off carrying Travelers Cheques rather than money.

The bank charge Rs. 50 per traveler cheque, Govt. tax is 01%.

Working Capital Loans

Based on the customer’s specific needs, the Corporate Bank offers a

number of different working capital financing facilities including Running

Finance, Cash Finance, Export Refinance- Pre-shipment and Post- shipment

etc. Tailor- made solutions are developed keeping in view the unique

requirements of your business.



Term Loans

We offer Short to Medium Term Finance to meet capital expenditure

and short-term working capital requirements of your customers. The loans are

structured on the basis of underlying project characteristics and cash flows of

the business.

Trade Finance Services

The Corporate Bank offers trade finance services that include an entire

range of import and export activities including issuing Letters of Credit (L/Cs),

purchasing export documents, providing guarantees and other support

services.

Cash Management

Our network of about 1200 branches in Pakistan enables us to collect

and disburse Payments efficiently with our cash management services. This

also enables us to offer you a choice of paper based or electronic fund

transfer solutions including collection amounts cross branch online

transactions etc.

Investment Banking

Our Investment Banking Team has emerged as a leading player in Pakistan’s investment banking arena. The Team handles advisory, corporate finance and capital markets related transactions. Within these area, the team has developed expertise in:

* Private Placements

* Debt/Equity Underwriting

* Term Finance Certificates

* Loan Syndication

* Arrangement of Non- Fund Facilities

* Mergers and Acquisitions

* Privatization



* Corporate Advisory

DEPOSIT DEPARTMENT

The function of deposit department is to collect deposits from

customer the following types of deposits are offered.

Current deposit

Saving Bank deposit

Profit and loss saving account

Fixed deposit

Now I will explain the above type of deposit offered is one by one.

Current deposit

In this type of deposit the client is allowed to deposit or withdraw

money as and when he likes. He may, thus, deposit or withdraw money

several times in a day if he likes. Usually this is allowed by Bank and no

service charges are deducted by the Bank on current deposit account.

Saving Bank deposit

This type of account is for those persons who want to make small

savings. This type of account is open with Rs. 1000/-. In this case deposits

can be made only up to a costing amount and withdrawals are allowed twice a

week. If the depositor wants to withdrawal more than Rs.25000 a notice is

required before the withdrawal.

Profit & loss sharing account

These types of accounts are one step towards the Islamic banking

system in the Pakistan. Under such types of accounts, the bank allows no

interest to the customer. Profit or loss is declared every year by the executive

board of the bank. PLS saving account having a running minimum credit

balance of Rs.1000/- would be eligible for sharing profit/loss of the bank. The

bank at the close of each half-year shall determine the rate of profit or loss on



PLS saving accounts. In its safe discretion and the banks decision shall b final

and binding on the PLS account holder.

Fixed deposit

In this type of account a certain mount is deposited for certain period

such as six months, two years or longer. A fix deposit receipts is issued in the

name of the depositor. The officer incharge and the bank manager sign the

receipt. The interest allowed on fixed varies with the period for which the

deposit is made.

FOREIGN EXCHANGE DEPARTMENT

The main function of the foreign exchange department is

To open the letter of credit (to facilitate import and export)

And this department also deals with foreign currency accounts.

Importance of letter of credit

The bulk of import trade now a day is mostly financed through letter of

credits. The method of making payment through letter of credit has greatly

facilitated commercial relations between the importer and exporter they can

safely rely on the credit of the bank rather than on the credit standing of the

importer. The importer too will pay for the goods, 0nly when they re shipped

and documents re received by the buyer’s bank.

Definition

“Letter of credit is written undertaking by bank given to the seller, at the

request and on the instruction of thee buyer to pay at sight or at a

determinable future date up to a stated amount within a prescribed time limit

and against stipulated document”.

Different parties involved in letter of credit:



Buyer (applicant)

Seller (beneficiary)

Bank (issuing authority)

Procedure of opening letter of credit

The letter of credit is opened by filling an application with the bank and

following information’s should be provided to the bank.

Name of beneficiary (seller)

Complete address of beneficiary

Type of letter of credit whether

Revocable Irrevocable

Mode and time of payment

Description of goods

Payment of freight (paid or not)

Replacement or dispatch of goods

Detail of documents such as bill of lading, shipment certificate,

clearance of goods certificate.

Place of shipment

Replacement of dispatch of goods

Whether the trans-shipment is allowed or not. (Trans-shipment means

change of the ships).

Whether the partial-shipment is allowed or not?

The date of shipment

The date and expiry of credit

Whether the credit is transferable or not?

How the credit is to be advised by mil, cable, telex etc.

Condition of letter of credit

An importer will have to fulfill the following conditions before submission of

credit application.

It is essential that he should be an account holder of that bank, where

he will open letter of credit



Registered importer with chief controller of imports and exports.

Possession of import license.

Importable merchandise should not be restricted

SECURITIES

Banker’s lien: Lien is the bankers right to withhold property until the claim on the

property is paid. The banker looks at their lien as a protection against loss on

loan or any other credit facility. In ordinary lien the borrower remains the

owner of the property, but the actual or constructive possession remains with

the creditors, though he has no right to sell it.

Guarantees: When an application for an advance cannot offer any tangible security,

the banker may rely on personal guarantees to protect himself against loss on

advances or overdraft to the applicant.

Mortgage: Mortgage is the transfer of an interest in specific immovable property

for the purpose of securing the payment of money advanced or to be

advanced by way of loan, and existing or future debt, or the performance of

an engagement, which may rise to a pecuniary liability. The transfer is called

a mortgagor, the transferee a mortgage.

ON-LINE SERVICES

ONLINE SUPPORTStriving to serve you better

MCB is pleased to introduce its MCB Virtual Banking Online Support

which is specifically meant for existing MCB Virtual Banking (Internet)

customers, requiring help on various e-Banking issues.

This service is available from 9:30 am to 4:30 pm Monday to Thursday (with a

lunch break from 1:00 pm to 2:00 pm, Friday Lunch break will be from 1:00

pm to 3:00 pm). And on Saturdays, the service will be available from 9:30 am

to 1:00 pm.



MCB ATM Card

Welcome to a world of convenience with the MCB ATM 24- Hour Smart

Card. "It Works. Anytime in Pakistan and abroad."

With an ever growing number of ATMs operating across the nation, the MCB

ATM Network is the largest and most advanced of its kind in the country, and

is part of MCB's continuing efforts to provide you with convenience that suits

your requirements most. And now the MCB ATM has gone global. MCB's

affiliation with Master Card International brings about added facilities for the

MCB traveler abroad with the Cirrus and Maestro networks.

So go ahead! Use your MCB ATM 24- Hour Cash Card day or night, at home

or abroad.

CARD CATEGORIES

MCB ATM Regular Card

The MCB ATM Regular Card allows withdrawal of

up to Rs. 10,000 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. 25,000 per day

and a maximum of 6 withdrawals per day per card. The cardholder has to

make at least two transactions to withdraw the full amount of Rs. 25,000.

MOBILE BANKING

At the forefront of technological excellence, MCB proudly

introduces MCB MOBILE BANKING. The convenience of accessing

your account balance information and mini statements whenever

you want or wherever you may need them, with comfort and peace



of mind.

MCB Mobile Banking service is available to all MCB ATM

cardholders, 24 hours - 365 days.

BILL PAYMENTS

About 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 is the only bank that offers you 3 convenient options of

making bill payments to PTCL, SSGC, KESC, Instaphone, Mobilink,

Paktel and Ufone. So, save your precious time by avoiding long

queues and pay your bills through MCB Easy Bill Pay.

MCB Smart Card or MCB ATM Card Holder can easily pay their

bills or re-charge their prepaid mobile phone account through the

following convenient options of MCB easy bill pay.

Bill Payments Features

allows you to :

Pay your bills 24 hours a day 7 days a week.

Make total payments of up to Rs. 20,000 per day.

Carry out up to 10 transactions per day per card.

Make either full or partial payments. Full payment is

required for PTCL only.

Recharge your pre-paid account for Ufone, Instaphone and

Paktel as per their fixed slabs.

Pay as a registered or non-registered user. Registration

will help you avoid the time delay in entering details each

time you carry out a transaction.



MCB's Partners in

CALL CENTER The state of the art MCB call center is the right choice to keep you in step

with your ever hectic schedule by providing you services relating to your

account and Smart card at any point in time.

Our well-abreast and friendly call center team is available 24 x 7, 365 days a

year to ensure that your daily financial obligations are taken care of

guaranteeing you a good night’s sleep.

SERVICES OFFERED

General Inquires

ATM locations

Account opening procedures

MCB bank charges

Product information

MCB merchant locations

Financial Services

Account Balance inquire

Pay orders request

Funds transfer request



Debit card Transactions details

Last five transactions details

Demand drafts request

Cheque book request

24 Hour ATM card blocking

Bill Payments (PTCL, SSGC, Mobilink, UFONE, Paktel)

Non Financial Services

Balance Certificate request

Bank Statements request

Address Change request

Virtual Banking activation

24 Hour complaint registration

Zakat Deduction certificate request

Tax deduction certificate request

Mobile Banking activation

Debit card blocking



Chapter # 5

Corporate Information



CORPORATE INFORMATION

Mian Muhammad Mansha

Chairman

MR.S.M.MUNEER

Vice chairman

Tariq RafiShahzad SaleemSarmad AminMian Umer ManshaAftab Ahmad KhanAtif YaseenDr. Muhammad Yaqoob

MR. MOHAMMAD AFTAB MANZOOR

PRESIDENT &CHIEF EXECUTIVE

Raza ManshaAdvisor

Audit CommitteeDr. Muhammad Yaqub - ChairmanTariq rafi - MemberMain umer mansha - MemberAftab ahmad khan - Member

Registered officeMcb building, F-6,G-6Junnah aveue, Islamabad

Principal officeMCB Tower,I.I. Chundrigar Raod, Karachi.



Different scale levels in Muslim commercial bank.

EXECUTIVE VICE PRESIDENT (EVP)

VICE PRESIDENT (VP)

REGIONAL HEADS/ZONAL CHIEF

ASSISTANT VICE PRESIDENT (AVP)

CHIEF MANAGER

MANAGER

Management Structure

Chairman

Chief Executive Officer

Manager

Adviser

Audit Committee

Chief Financial Officer



Secretary

Auditors

Legal Advisor



Chapter # 6

Islamic Banking



INTRODUCTION MCB now provides its customers with the reliable Islamic Financial

Services and support they require to successfully achieve their business

objectives.

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

Operation and offer Islamic Banking Products.

ISLAMIC BANKING MANAGEMENT COMMITTEE

The bank has established an Islamic Banking Management Committee

comprising of the senior executives representing various important functions

of the bank, such as, Credit & Risk Management, Finance, Treasury,

Operations, Islamic Banking Division and Sharia Advisor.

The objective of this committee was to review the products offered by Islamic

Banking Branches, and to improve them not only to make them competitive

and practicable but also make them truly Sharia Compliant.

Sharia Advisor

Dr. Muhammad Zubair Usmani, working as Sharia Advisor in our bank

since July 2000 is a prominent scholar having Ph.D. degree in Islamic

Finance as well as Fazil Takhassus from Jamia Darul Uloom Karachi, (i.e.

specialist of Islamic Fiqh and Fatawa).

He has attended and addressed several international and local seminars /

conferences as guest speaker in Pakistan as well as abroad.

He has also worked as Research Scholar and member of various forms and

committees formed for promoting the cause of Islamic Banking in Pakistan

and abroad

Legal Advisor

M/s Mohsin Tayebaly & Co., Advocates & Legal Consultants, has

vetted all documentation. M/s Mohsin Tayebaly & Co. not only has expertise



in legal affairs but also has competent lawyers possessing knowledge of

Sharia.

FUND BASED FACILITIES

MCB offers 2 broad Islamic fund based facilities: Ijarah

Murabahah

Ijarah

MCB’s Islamic Ijarah, analogous 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. Under this scheme, MCB will

be the owner of the asset, and you (lessee) will be given the asset to use for a

certain period of time in return for monthly rental payments. MCB will give a

separate unilateral undertaking that it will offer to sell the asset to you (lessee)

at the maturity of the Ijarah agreement at a price that may be equal to the

security deposit amount, hence the term ‘Wa Iqtina’.

We currently offers 2 types Ijarah Products:

Car Ijarah

Equipment Ijarah

Murabahah

It 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


http://mcb.com.pk/islamic_banking/fund_equipment.asp

http://mcb.com.pk/islamic_banking/fund_car.asp


Chapter # 7

Training in Branch



In terms of policy and instruction of Comsats Institute of Information

Technology, I have undergone for 6 weeks internship with Muslim

Commercial Bank Gondal Branch Distt. Attock.

I reported at the Branch on 23 July 2007. I was really astonished to see the

building of this Branch outward and inward at a first look and its location at a

prominent place on GT Road. A part from cleanliness and tidiness of the

Branch the atmosphere and dealing of the staff with their clients was a

surprising factor for me and it has given me a good understanding that how

the commercial institutions are extending services to the people.

On the very first day of my joining, the Manager of the Branch Mr. Sheikh

Tariq Pervez depicted brief introduction of

Muslim Commercial Bank Limited

The definition of the Bank

The Departments of the Bank

And different types of services being rendered by MCB to the people.

What is Bank?

Bank is an institution which accepts deposit from customers for the

purpose of investments and also keeps valuables of the customers.

Who is Banker?

Who deals with the financial matter & money directly.

INTRODUCTION OF THE BRANCH

Then I was introduced by the Manager with all the other staff of the

Branch who have also ensured me to extend every possible cooperation.

MANAGEMENT OF BRANCH:

OG-I 1



OG-II 1

OG-III 2

Cashier 2

Peon 3

During first three week of my internship I was provided opportunity to work to

work with the following departments:-

Computer department

Accounts Department

Bills Department

I was told by the Branch Manager about different types of the accounts like,

PLS (SB) Deposits

Current Deposits (CD)

Fixed Deposits

How they are opened and what requirements are necessary for opening of

these accounts. Beside, I was told about different Outward Bills Collection

(OBC) and Local Bills Collection (LBC) and the Books and Registers used for

it.

TYPES OF ACCOUNTS

Pak Rupee Currency Accounts :

MCB provides you with a selection of accounts to suit your needs.

Account Minimum Balance

Profit Rate% Year Limit

Pls Rs. 1 to 20000 0.10(semi-annually) No Limit

Current 10000 No No Limit

MCB Saving 365 Less than 300,000

0.10 1 year

MCB saving 365 Gold

Less than 500000

0.10 1 year


http://www.mcb.com.pk/mcb11.htm

http://www.mcb.com.pk/mcbpak.htm


New FC a/c Savings $500 2.5 No Limit

Capital growth Certificates

10,000 1.50 5 Years

Khushali Bachat 20000 0.10 No Limit

PLS term Deposit 10,000 Depend on Time 7Days-5 years

0.025 7 days

1.00 1 month

2.50 3 months

3.00 6 months

4.00 1 year

5.00 2 years

6.50 3 years

7.00 4 years

7.50 5 years

Mahana Khushali Scheme

50,000 1.00 Monthly

In the next week I was engaged with the following departments:-

Remittance Department

Accounts Department

In these department I was practically remained involved and availed the

opportunity that how the Remittances are made through the bank from one

place to the other with out involving cash, and how quickly the money is

received into the accounts of the people through these remittances like

Demand Drafts (DD), Pay Orders, Telegraphic Transfer (TT), Mail Transfer

(MT), Home Mail Transfer (HMT), Foreign Mail Transfer (FMT).



It was also an interesting job that how withdrawals of cash are made by the

people through their Cheque, Demand Drafts (DD) and other Instruments.

How quickly these are processed and scrutinized for payments. How

specimen signatures of the clients are tallied and how the cash payment is

made by the cashier on the counter to the specific person by the system of

tokens. I was also given to understand the books and registers which are

used in the process. I personally and practically worked with the staff of the

Bank in all these Departments and my pickup, handling and approach were

not only appreciated by the entire staff of Muslim Commercial Bank Limited

Gondal Branch but also the Branch Manager as well. The most important

factor which I have noticed during the tenure of my internship was the stick

observing of the timings in the morning that is from 9:00 AM and then

continuing the working of the bank with full swing till 5:00 PM through out. I

bound my self in observing the timings of the bank and all the rules and

regulations as well like other bankers.

The most essential and surprising thing which I have noticed in the bank is

keeping of secrecy of the clients accounts strictly.

During the remaining three weeks of my tenure I remained busy in posting of

cheque, feeding of information about new accounts opened in the bank and

the processing of the loan proposals. The papers and the requirements to be

made for availing loans from the bank is most important factors which I have

not only helped the Manager for preparation of different Credit proposals but

also discussed the same while preparing Balance Sheets of the firms and the

Companies.

I think that the CREDIT is the most important and vast department of the bank

being the second one of the function of the bank as acceptance of the

deposits from the pubic and investment of the same in the shape of loan to

the public.

On completion of my internship period the Branch Manager and the entire

staff of the Bank appreciated my efforts and hard working in extending and



helping hand to the staff in quick disposal of their daily working in

achievement of their goals.

Consequently I was relieved on 31st August 2007. After completion of my

period and my performance report was submitted by the Branch Manager to

their Head Office Karachi with his recommendations.



Chapter # 8

Analysis



FINANCIAL HIGHLIGHTS



MARKETING ANALYSIS

EUROMONEY DECLARES MCB "Best Domestic Bank" in Pakistan:

Euro money, one of the leading financial magazines in the world has

declared MCB as the "Best Domestic Bank" in

Pakistan in its July issue. The Euro money Awards

for excellence 2000, selects banks worldwide for

excellence in their fields.

MCB with a healthier balance sheet, an efficient

cost structure and a well-established brand name

is ready to address future challenges.

In this regard, the President has issued a circular

to all employees. Excerpts from the circular are,

" Euro money, one of the most influential financial

magazines in the world has included MCB for "Euro money Awards for

Excellence 2000". It has declared MCB as the "Best Domestic bank in

Pakistan."

ENVIRONMENT ANALYSIS

Major product lines and market segmentation:

MCB have offers many different product to its clients for their

conveniences such as.

RTC’s (rupees traveler Cheques).

MCB ATM Card.

MCB ATM Gold Card.

MCB Master Card.

MCB MNet service.



MCB have a complete hold on the one segment of banking industry, which is

RTC”S (Rupees Travelers Cheques). There is little comparison of MCB RTC’s

with other National and International banks located on Pakistan.

Comparison Of RTC’s Market Share Of MCB With Other Banks:

MCB 67%

Habib Bank Limited 15%

United Bank Limited 5%

Allied Bank Limited 3%

National Bank Of Pakistan 7%

Other banks 3%

COMPETITOR ANALYSIS

Major Competitors and their Market shares:

MCB have many competitors in Government sector as well as some of

private banks located in private sector.

The comparisons of market share of MCB with its some major competitors are

given as under.

MCB 25%Habib Bank Limited 20%United Bank Limited 15%Allied Bank Limited 10%National Bank Of Pakistan 20%Other banks 10%

Their Goals:

Try to become equal or if not then try to minimize their Gap.

To create a sound base and brought efficient system to achieve

modern banking through out Pakistan

To create unit banking network in all the branches of their branch.

The management of other fellow banks has their goal to inter the

multinational market next year.



Fellow banks have their goal to achieve of increases deposit by 6

billion every year.

Their Strategies:

Try to provide best customer service to their clients.

Inform their clients about new attractive schemes and new facilities of

bank.

Very important aspect of fellow banks to provide the main security to

the deposits of general public.

Strategy of fellow banks to invest in the art of IT.

TECHNOLOGY ANALYSIS

Self Service Banking (Automated Teller Machine ATMs)

As the symbol of the arrival of the modern technology, one can see

ATM at several important points in big cities. Most of ATM introduced in

Pakistan is just cash dispending machines. However, latest type of ATM being

introduced can perform a variety of routine banking functions, such as cheque

and cash deposits and provision of bank statement etc. more and more banks

are trying to acquire ATM machines, despite the fact that due to low level of

literacy and awareness the utilization of ATM machines so far is rather limited.

MCB is basically pioneer of ATM machines and being the pioneer of

introducing the customer banking system, related to customer’s related

services. MCB is introducing its leadership in providing ATM services to its

valued customers through its nation wide network over 80 ATMs in 11 cities

and now much more are installed in more branches. Six foreign banks have

joined MCB M-net switch that is a reflection of internationally accepted

standards maintained by the bank in technology. M-net is now linked with the

CIRRUS and MAESTRO enabling its customers to use MCB ATM cards

anywhere in the world.



ATM NETWORK

MCB ATM REGULAR CARD

The MCB ATM Regular card allows withdrawal up to Rs. 10,000 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. 25,000 per day and a maximum of 6 withdrawals per day per card. The cardholder has to make at least two transactions to withdraw the full amount of Rs. 25,000.



Chapter # 9

Suggestions and Recommendations



SUGGESTIONS FOR THE IMPROVEMENT OF BRANCH

Shortage Of Staff:

Almost in all branches of Muslim Commercial the problem of Shortage

Of Staff is very common. There are only few employees who are the be all

and end all of the whole branch resulting in burden of work. Basically the main

idea behind it is that whenever there is shortage of staff in any organization it

always result in lot of work and also boots up the destructiveness as well

because people working over there feel like that they can do whatever they

feel like so are least bothered about the rules and regulations as implemented

by the head office and mostly it results in corruption.

This problem result in more corruption because there are less number of

people to keep check and balance and more work load so when they got to do

lot of work they wont be creative and imaginative enough to take part in the

evolution of new products and wont be satisfied with their job as well.

Staff Is Not Adequately Trained:

Staff in almost all branches of Muslim Commercial bank is not

adequately trained with the contemporary era. Basically Muslim Commercial

Bank is from the very beginning, is pioneer of new products including ATMs,

Mobile Banking and Online banking as well but as they developed the new

systems and products in order to satisfy the customers want they didn’t get

their staff trained in relation with those innovations. Muslim commercial bank

having two staff colleges one in Lahore and One in Karachi but both make

you aware of the systems and procedures but are not training or can say

emphasizing on these innovated products. This problem seems to be quiet

minor but result in major destruction because it takes a lot of time to make

employees aware of these systems and when they don’t know about these

systems they wont be able to help their customer out and when they wont be

able to do so means they are no more going through their mission.



Online Banking

This problem is related to the previous problem as well because when

the staff is not adequately trained then how can they satisfy their customer’s

needs, which is the basic theme or mission of Muslim Commercial Bank.

When Muslim Commercial bank started their online banking, there were only

one or two banks (foreign Banks) doing this practice because of having a

larger network as compared to all other domestic banks Muslim Commercial

Bank started doing this practice but not successful in it because of the above

two problems.

Others

A lot of productive time is wasted by the staff in unproductive pursuits

and tea and launch breaks are got voluntarily extended and the time spent in

corridors, depends on the staff will. This tendency of late must be eliminated

which reflect adversely on the image of the institution and has posed a

serious problem.

No proper allocation of duties, suitable person for suitable job. Distribution of

work is not on equity basis, work has not been allocated properly some

workers have to work hard in late hours without any extra reward. So I

suggest that steps should be taken to allocate the work properly.

No periodic increase on salaries of employees.

Overall Suggestions For Improvement

From the quantum of the profit and its financial data it can easily

judged that after privatization Muslim Commercial Bank is performing well. Its

deposits are growing day-by-day and so is profitability. The controlling body is

responsible for the productive performance of the bank.



Following are my observation and suggestion to improve the efficiency

for the development of the economy.

Introduce Various Profitable Investment Schemes

A big portion of the home remittance is sent by Pakistan working

capital through Muslim Commercial Bank Limited. As we know a big portion of

this amount is wasted purchasing of luxuries. The people motivated to save

money by offering the deposit through various investment schemes. The rate

of profit should increase 1% or 2% than the other banks and it would be

profitable step for bank.

Training Staff

Staff turnover particularly of trained staff result in financial and other

losses. The amount spent by the bank on employment, induction and training

of an outgoing officer constitutes to beat till another officer should ready prove

his work. The exodus of bank officer in the past has worsened the situation.

Change The Nature Of Work

Most of the bank employees are sticking to one seat only with the

result that they become master of one particular job and loose their grip on

other banking operation. In my opinion all the employees should have regular

job experience all out-look towards banking. The promotion policy should be

adjusted.

Refresher Courses

Refresher courses for the staff are most important in any international

organization. All the employees should have these courses according to their

requirement. Foreign experts can also be called for this purpose.

Special Training In Abroad

Every year some of the employees should be sent for training to other

countries and employees from other branches should be brought here. Some



more reading material should be provided the purpose should be to educate

the employees with the advance studies in their field. The employees should

be provided the opportunities to attend and participate in seminars and

lectures on banking.

Incentive To Employees

Bank should give some more incentive to its employees in order to

remove the conflict between lower and higher officers and should try to

improve the working condition of the bank.

Such system should be designed that every employee who has some

problems with his officers can communicate it to the higher management and

some steps must be taken to improve that.

Computer System

Though Muslim Commercial Bank installed computer yet the system

has not totally shifted on computer. Manual procedure is still there hence

computer facility is not fully availed. It should be fully availed and system

should be fully computerized.

Others

The period of internship should be divided into the number of

department of the Muslim Commercial Bank Ltd. The internee should be given

timetable mentioning the number of days he has to work at different places in

the bank. On the 1st 4 day in each department internee should be given a

lecture by the officer of the department concerned about working of the

department.

A lot of productive time is wasted by the staff in unproductive pursuits and tea

and lunch breaks are got voluntarily extended and the time spent in corridors,

courtyards, depends on the staff will. This tendency of late must be eliminated

which reflect adversely on the image of the institution and has posed a

serious problem.



Distribution of work is not on equity basis, work has not been allocated

properly some workers have to work hard and have to work in late hours

without any extra reward. So I suggest that steps should be taken to allocate

the work properly.

Reward And Punishment

It is human nature one goes behind reward and incentives while and try

to avoid from punishment. Likewise in commercial institution like bank this

system be introduced with full force means active smart, educated skilled, self

spoken and well versed staff personal, should be reward and appreciates,

while on the other hand lazy, lethargic, heared, rough dealers and ill

mannered must be warned penalized and punished. But this all should be on

merit and considering the policy of honesty is the best policy and mot due to

some personal liking, disliking prejudice and patrimonial. It is therefore

suggest certain schemes and checks may be introduced in banks to increase

efficiency through reward and punishment system.

Survival Of The Fittest

It is not nearly a sentence or idiom right man for the right job according

to his qualification to his qualification, profession skills and experience with

the job specification must be considered while posting and placing the

employees.

It should not be like that a person who may be a very good worker but

possessing lack of managerial capabilities should be posted as manager. But

as second place in command or some heavy working department wished

persons together with managerial qualities and manners in the same fashion

should be posted and placed as manager.

Over Employed

At some places, the Muslim Commercial Bank Limited is over-

employed, which is causing in expenditure. I think that the best way out for



this problem is to open new branches in remote areas and encourages the

employees to work for creating the habit of saving in the people.

Customer Problems

People have to wait for re-cashing their cheques for about 10 to 12

minutes, which is not good for the reputation of bank. This delay is due to

manual work. Therefore I suggest that computers and other electronic

machine should be installed in the bank so that time could be saved.



REFERENCES

www.mcb.com.pk

www.google.com.pk


http://www.google.com.pk/

http://www.mcb.com.pk/

final report mcb

Documents

internship report

cash department

gondal branch attock

computer department

bank manager

weeks internship

gondal branch distt

accounts department