intern ship report muslim commercial bank

8/3/2019 Intern Ship Report Muslim Commercial bank

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INTERNSHIP REPORT

ON

MUSLIM COMMERCIAL BANK

Muhammad Sammar Abbas Zaidi

A report submitted in partial fulfillment of the requirements of the degree of

B.COM

AT

Bahauddin Zakariya University, Multan


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Acknowledgement

Person is not a perfect in all the contexts of his life, He has a limited mind and mind thinking

approaches. It is the guidance from Almighty Allah that shows the man light in the darkness and

the person find his way in the light. Without this helping light, person is nothing but a helpless

creation.

The teaching of the Holy Prophet Muhammad (PBUH) were also the continuous source of

guidance for me especially his order of getting knowledge and fulfilling once duty honestly was

key motivation force for me.

With prayers of my parents and support of my teachers it became possible to formulate this

report. I pay high regards to them.

I am also thankful to all my friends and class fellows who helped me and provided me support

to complete this hard task.


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Executive Summary

MCB was incorporated in 1997 and was later privatized by the Government of Pakistan. The

Nishat Group bought the majority shares of the bank and so got the rights to control the banks

operations. Since the privatization of the bank, MCB has implement different policies to make it

one of the best banks of Pakistan, which included introducing new products and services and

increase its operations by opening new branches in Pakistan.

I did my six weeks internship at MCB, and worked in account opening department, operations

department, accounts department, Remmittance, Customer Service department.

Some of the work that I did in these departments included collecting cheques, filling account

opening forms, activity checking and stop payments and closing of accounts.

Although there were no such big problems found in the working of MCB, there were some

problems in training of the employees, incentive schemes and product innovation.

Some of the recommendations include workshops for employees, job rotation, teams work to

find innovative products and scholarship programs for employees.

Lastly MCB has seen a rapid growth in its activities by introducing a range of products and

services and showing its presence in the country by opening new branches and in future should

keep this momentum and always strive to become the best.


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Table of Contents

TOPICS PAGE NO.

Acknowledgement

Executive Summary

Introduction

1.1 Introduction 01

1.2 Background of the study 01

1.3 Purpose 01

1.4 Scope 02

1.5 Methodology 03

1.6 Summary 04

History and About MCB

2.1 HISTORICAL BACKGROUN 05

2.2 About MCB 06

2.4 VISION & MISSION 11

2.4.1 VALUES OF MCB 12

2.4.2 Awards and Achievement 14

2.5 Branches network 16

2.5.1 Organization Structure (MCB 0187) 18

PRODUCT &SEVICES


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3.1 Accounts 19

3.1.1 CURRENT ACCOUNT 19

3.1.2 BASIC BANKING ACCOUNT 21

3.1.3 Smart Dollar Account 23

3.1.4 Foreign currency Account 24

3.1.5 SMART SAVINGS ACCOUNT 26

3.1.6 KHUSHALI BACHAT ACCOUNT 28

3.1.7 PLS SAVINGS 365 30

TERM DEPOSIT

3.2.1 SPECIAL RUPEE TERM DEPOSIT (STD) 35

3.2.2 SPECIAL NOTICE DEPOSIT (SND) 37

Account Opening Documentation Requirement

3.3.1 Individuals Accounts 39

3.3.2 Partnership Account 40

3.3.3 Joint Stock Companies 41

3.3.4 Clubs, Societies and Associations 41

3.3.5 Minor Accounts: (Age below: 18) 43

3.3.8 Illiterate / Photo/ Disable Persons Accounts 43

Client/Account Opening Process Steps 44

Classification of Accounts

3.5.1 Dormant Accounts 51

3.5.2 Inoperative Accounts 51

3.5.3 Unclaimed Deposit Account 51


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3.6 Account Closure 55

Overview of cheque

3.7.1 Procedure for Issuance of Cheque books 59

3.7.2 Collection of Cheque book by the Customer 63

REMITTANCES

3.8.1 Demand Draft 66

3.8.1.1 Parties involved in the Demand Draft 67

3.8.1.2 Accounting entry for DD issuance 67

3.8.1.3 Accounting entry for DD Payable Branch 68

3.8.2 Payment Order 69

3.8.2.1 Characteristics of the Payment Order 70

3.8.2.2 Accounting entries for P.O issuance 71

3.8.2.3 ACCOUNTING ENTRY WHEN PAY 71

3.8.3 Term Deposit Receipt 71

3.8.4 Call Deposit Receipt 74

DIFFERENCE BETWEEN CDR AND TDR 77

Clearing

3.9.1 NIFT 78

3.9.1.1 FLOW CHART OF WORKING OF NIFT 79

3.9.2 In Ward Clearing 79

3.9.3 OUTWARD CLEARING 82

3.9.4 Intercity Clearing 83

Lockers


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3.10.1 Issuance of License 86

3.10.2 Types of Lockers 86

3.10.3 Insurance of Lockers 87

3.10.4 Renewal / Expiry of Lockers 87

Self Experience 88

Financial Analysis of MCB 89

4.1 Horizontal Analysis 89

4.2 Vertical Analysis 91

4.3 RATIO ANALYSIS 93

Annual Financial statement of MCB

5.1Balance sheet 98

5.2 Income Statement 99

5.3 Cash Flow Statement 100

5.4 Statement Of Change In Equity 101

SWOT ANALYSIS 102

CONCLUSIONS 105

RECOMMENDATION 106

SKILLS ACQUIRED 108

GLOSSARY 113

References 114


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1.3 Purpose

Internship is the capstone experience that provides me with hands-on, real-world

experience in a work setting. Ideally, internship will enable internees to:

Use my knowledge and skills get from the classroom,

Discover where further competence is needed,

Convert the bookish knowledge into practical life, and

become better acquainted with the types of work settings in which such Competence

can be applied.

1.4 Scope

This study will facilitate to me regarding the working of Banking sector of Pakistan because

most of the teachers during their lectures use the examples of Banks like MCB, National

Bank, UBL, Bank Alfalah and many others, Students should study about the functioning of

such Banks. It will help full for me in future.

1.5 Limitation of the Study:

The study is done with the sole purpose of doing the best work but there were certain

limitation faced during the internship period. The most important limitation from which

the study suffers is the non-availability of information in a manner required for analysis


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and the secrecy of the bank. Another important limitation of the study is time and space

constraint.

1.6 Objectives:

I worked as an internee in MCB the main objectives to study in MCB were:

To get some experience in working with well reputed organization.

To gain knowledge about the professional environment of the bank.

To know about the technology utilized in the banks.

To deal and manage with the situation of stress.

1.7 Methodology:

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

Primary Data

Secondary Data

(A)Primary Data:

Observation of functions of Branch operations on the spot.


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Observation of different processes of Branch on the spot.

(B) Secondary Data:

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

Pakistan.

Different type of booklets of the Bank.

Annual reports

Journals

Newspapers

1.8 Summary

This is the first chapter of the report containing the detail introduction of the report.

Internship training program during B.com Program is necessary for the partial fulfillment

of the completion of Degree of B.Com Internship will enable internees to integrate and use

knowledge and skills from the classroom. This study will facilitate me regarding the

working of banking sector of Pakistan. For achieving my purposes, objectives and for the

preparation of the internship report I required some kind of data, I used both methods of

data collection that are primary sources and secondary sources for that purpose.


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Chapter # 2 History and About MCB

2.1 HISTORICAL BACKGROUN

MCB Bank Limited formerly known as Muslim Commercial Bank Limited MCB Bank is not

an overnight success story. It was incorporated by the Adamjee Group on July 9, 1947, under the

Indian Companies Act, VII of 1913 as a limited company. The bank was established with a view

to provide banking facilities to the business community of the South Asia

After the partition of the Indo-Pak subcontinent, the bank moved to Dhaka (then 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 59 years legacy of trust of its customers and the citizens of Pakistan.

2.1.1 NATIONALIZATION:

In January 1974, the Government of Pakistan nationalized MCB following the Banks

(Nationalization) Act 1974. MCB was neither the only bank which was nationalized solely as

neither it nor any other bank being merged with it due to its consistent and firm policies and its

sound position.
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2.1.2 PRIVATIZATION:

A wave of economic reforms swept Pakistan in the lattes introducing the Need for privatization

of state owned banks and companies. This was the first bank to be privatized in 1991 and the

bank was purchased by a consortium of Pakistani corporate groups led by Nishat Group. 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. Manshas contribution, the Government of

Pakistan has conferred him with "Sitara-e-Imtiaz", one of the most prestigious civil awards of the

country.

2.2 About MCB:

Over the years MCB has developed strong relationships with its customers by understanding

their needs and treating them with respect, dignity and importance. The driving force behind its

commitment and services is its focus on customers ensuring that it not only meets, but also

exceeds their expectation.

They strive to achieve excellence by ensuring that every moment of their time is spent in adding

value, making sure that they do things right, first time, and every time. With the quest of quality
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MCB has always taken initiatives bringing banking into a new arena; from cash to the

convenience of plastic; from branch banking to internet banking and from face to face customer

interaction to online accessibility.

MCB now focuses on three core businesses namely Corporate, Commercial and Consumer

Banking. Corporate clientele includes public sector companies as well as large local and multi

national concerns. MCB is also catering to the growing middle class by providing new asset and

liability products. MCB Bank Limited (Formerly Muslim Commercial Bank Limited) has a

solid foundation of over 63 years in Pakistan, the Bank provides 24 hour banking convenience

with a network of over 1000 branches, the largest ATM network in Pakistan over 450 ATM

locations in the market.

2.3 Organization Profile

Name of Organization: MCB Limited.

Chairman: Main Mohammad Mansha

Location: New Garden Town Lahore.

Branch code: 1080

Phone: +92-042-7727456 / 7720054

UAN: 111-000-622 (MCB)

Website: www.mcb.com.pk
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2.3.1 Pattern of Share Holdings

Description Shareholding Percentage

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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ORGANIZATION STRUCTURE

As MCB is a banking company listed in stock exchange therefore it follows all the legalities,

which are imposed by concerned statutes. MR. Mian Mohammed Mansha is chairman & chief

executive of the company with a team of 10 directors and 1 vice chairman to help in the

business control and strategy making for the company.

A team of 10 professionals is handling operational management of the bank. MR. Mian

Mohammed Mansha also heads this team.

The different operational departments are:

Consumer Banking & IT Division

Financial & Inter Branch Division

Banking Operations Divisions

HRD & Legal Division

Financial Control & Audit Division

Credit Management Division

Commercial Banking Division

Corporate Banking Division
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2.3.2 Board of Directors

Mian Mohammad Mansha Chairman

Mr. S. M. Muneer Vice Chairman

Mr. Tariq Rafi Member

Mr. Shahzad Saleem Member

Mr. Sarmad Amin Member

Dr. Muhammad Yaqub Member

Mian Raza Mansha Member

Dato' Mohammed Hussein Member

Mr. Aftab Ahmad Khan Member

Mr. Abdul Farid Bin Alias Member

Mian Umer Mansha Member

Mr. Muhammad Ali Zeb Member

Mr. Atif Bajwa President / CEO
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2.4 VISION & MISSION

Vision Statement

To be the leading financial services provider, partnering with our customers for a more

prosperous and secure future.

Mission Statement

We are a team of committed professionals, providing innovative and efficient financial solutions

to create and nurture long-term relationships with our customers. In doing so, we ensure that our

shareholders can invest with confidence in us.

Providing innovative

Efficient financial solutions

Long-term relationships with our customers

Shareholders invest with confidence

2.4.1 VALUES OF MCB

INTEGRITY
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We are the trustees of public funds and serve our community with integrity. We believe in being

the best at always doing the right thing. We deliver on our responsibilities and commitments to

our customers as well as our colleagues.

RESPECT

We respect our customers 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.

EXCELLENCE

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 and unrealized. We make every effort to exceed

customer expectations through superior services and solutions.

INNOVATION


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We encourage and reward people who challenge the status quo and think beyond the boundaries

of the conventional. Our teams work together for the smooth and efficient implementation of

ideas and initiatives.

MCBTODAY

MCB is one of the leading banks of Pakistan with a deposit base of Rs. 368 Billion

and total assets over Rs.500 Billion. Incorporated in 1947, MCB soon earned the

reputation of a solid and conservative financial institution managed by expatriate

executives. In 1974, MCB was nationalized along with all other private sector

banks.

The Bank has a customer base of approximately 4 million, a nationwide

distribution network of over 1,000 branches and over 450 ATMs in the market.

During the last fifteen years, the Bank has concentrated on growth through

improving service quality, investment in technology and people, utilizing its

extensive branch network, developing a large and stable deposit base.
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2.4.2 Awards and Achievement:

Euro money Awards

Best Bank in Asia Award 2008

MCB has been awarded as a Euro money Award 2008 for the Best Bank in Asia".

Best Bank in Pakistan Award 2006

MCB has yet again received the esteemed Euro money Award for the Best Bank in Pakistan.

It is the only bank to receive the Euro money Award for Excellence for the sixth time in the past

seven years.






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Best Domestic Bank Award 2000

MCB was awarded as a Euro money Award 2000 for the Best Domestic Bank in Pakistan".

Asia Money Awards

The Best Domestic Commercial Bank Award 2005

MCB Continues to shine as once again Asia Money declares MCB as "The Best Domestic

Commercial Bank in Pakistan" for the year 2005.

The Best Domestic Commercial Bank Award 2004

MCB has a distinction of winning the Asia Money 2004 award for being "The BestDomestic

Commercial Bank in Pakistan".
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2.5 Branches network

(Domestic operation) (Overseas operation)

(Branches)

1057

Commercial = 986 Sri Lanka = 5

Consumers = 44 Bahrain = 1

WBG = 11 EPZ = 1

Islamic = 11 UAE = 1

Sub branches

05
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2.5.1 Organization Structure (MCB 0187)

Manager Operation Manger

(AVP) (OG | )

Advances(OG |||)

PBA(OG |||)

Forex(OG |||)

CSO(Contract)

Current saving

dep. (OG |||)

Remittance

(Assistant)

Cash(Contract)

Internal control officer(OG |)

RegionalManager

Regional Operational

Manager
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Chapter # 3 PRODUCT &SERVICES

This section is based on my observation and experience and rotation during my internship at the \

MCB Limited. Some of the jobs that I performed or assisted in performing or overlooked in the

various departments were

3.1 Accounts

(Personal Banking Advisor)

Following are the types of account in MCB

3.1.1 CURRENT ACCOUNT

No restriction on Withdrawals and frequency of transactions

No profit is paid on Current Accounts

Service Charges are recovered as specified in the Schedule of Charges

No Zakat is to be deducted on Current Accounts.
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Free of cost account statements are dispatched on half yearly basis within one week

after the mid-year closing. If any customer wishes to receive the account statement other

than the half yearly cycle, charges will be recovered as per the Schedule of Bank

Charges RS.50

Account opening with Rs.1000

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

Eligibility

Individuals (Single/Joint)

Firms (Sole Proprietor Partnership)

Companies (Public and Private Limited), Trust/ Clubs/ Societies and Associations are

eligible to open Current Accounts.
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3.1.2 BASIC BANKING ACCOUNT

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

balance requirement

Features

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

BBA is a Rupee Current Account (non-remunerative account).

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

charges apply.

In case where balance in BBA remains ZERO for a continuous 06 month period, the

account will be closed automatically.


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Each month the account holder is allowed 02 deposits transactions (either cash or

clearing) and 02 withdrawals (cash or clearing). All customer initiated transactions over

and above this limit will be charged Rs. 25 per transaction

All ATM transactions conducted through electronic channels (i.e. ATM, Debit Card POS

machine, Virtual Banking) are exempted of transaction fee. Hence the customer is

allowed unlimited transactions through these channels.

ATM cards are issued to all BBA account holders in on-line branches. Card issuance and

annual fee will be recovered as per Schedule of Bank Charges.

ATM transaction charges on balance enquiry / mini statement and on usage of non-MCB

ATMs will apply as per Schedule of Bank Charges.

Statement of account to be mailed as per existing policy of the Bank. Charges for

duplicate statement will apply as per Schedule of Bank Charges.

Eligibility

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

type.

Existing individual account holders can also convert their regular Savings or current

account into Basic Banking Account.
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This facility is not offered to non-individuals

3.1.3 Smart Dollar Account

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

Complimentary Pak Rupee account without minimum balance requirement.

Free Lockers Facility

Free of Charge Bank Statement & Smart Cards

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

Preferential rates on consumer loans.


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

No Charges on Standing Instructions.

In case of any change in the above features, prescribed procedure by RBG will be

applicable.

Eligibility

Individuals (Single & Joint), Firms, Companies.

3.1.4 Foreign currency Account

Enjoy the confidence of operating an international account, locally.

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

Foreign Currency Investment.

KEY POINTS

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

Open for as little as US$ 500 or equivalent.
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Unlimited transactions at your branch.

Free Foreign Currency cash deposit and withdrawal facility.

Rate of Return directly linked with international market

Profit paid into your account every six months.

Foreign Remittances facility available.

Countrywide network of Foreign Currency Branches.

Cash withdrawal in PKR equivalent

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

locations.

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

Financial Services e.g. Account Balance Inquiry, Debit Card, Transaction detail, bill

payments etc

Non-financial Services e.g. Internet Banking activation etc.
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Bank Account Statement and Cheque Book Request.

Eligibility

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

3.1.5 SMART SAVINGS ACCOUNT

Offers the opportunity to small and medium sized depositors (individuals only) to earn

attractive returns on their deposits. Cash withdrawals takes place only through

ATM/POS.

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

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

quarter

All ATM transactions conducted through electronic channels (i.e. ATM, Debit Card POS

machine, Virtual Banking) are exempted of transaction fees. The customer is allowed

unlimited transactions up to available balance in the account through these channels.

The profit is calculated only on minimum deposit balance between Rs. 10,000/- and Rs.

300,000/- during a month, irrespective of the balance available in the account (as per
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prescribed slabs). This range can be changed by the Bank any time without giving prior

notice to the customer (as and when required).

Profit is calculated monthly, based on the minimum balance of the account during the

month. In case minimum balance exceeds the ceiling of Rs. 300,000/- in a month, profit

would only be paid on Rs. 300,000/-

MCB Smart Savings account can be merged with the regular PLS Savings account any

time by giving 3 months notice to the customers at the discretion of the Bank.

The profit rates are estimated/provisional and subject to change any time at the discretion

of the Bank.

Service charges would be applicable as per Bank policy if the balance goes down below

the prescribed minimum balance.

Cheque book would not be issued to the account holder. ATM Card would be issued to

the customer for cash withdrawals.

A customer can open only one MCB Smart Savings Account in the Bank, in case a

customer is found to have more than one Smart Savings Account, the Bank reserves the

right not to give the profit or recover profit if already paid to the customer on their

account/s.


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Zakat is deducted as per the policy. Withholding Tax is also deducted from profit (where

applicable) as per Income Tax Laws

Rates

Up to RS.199, 999 5%

Rs.200, 000299,999 7%

More than Rs.300, 000 5%

Profit Calculation:

Profit will be calculated on a monthly basis, based on the minimum balance maintained by the

customer during that month.

Eligibility

Only Individuals (Single or Joint) are eligible to open PLS Smart Savings Account.

Non-Individuals like Proprietors Company, Partnership, Trading, Collection accounts

etc are not eligible.
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3.1.6 KHUSHALI BACHAT ACCOUNT

Provides additional facilities for payment of Utility Bills and Loan Installment of HBFC through

debit of Account (free of charge) with added feature of profit calculation at average daily

balance. (At designated branches only

Minimum balance requirement as specified in the Schedule of Bank Charges.Rs.20,000

Profit provisioning/ accruals are made on Daily Closing Balance of the day.

Profit is disbursed /paid on half yearly basis as per the rates notified by the bank.

Free of cost Account Statement is dispatched on half yearly basis.

Zakat is deducted as per the Governments and Zakat Ushr Directives. Zakat is not

deducted on the accounts of Non- Muslims and where Affidavit is provided.

Withholding Tax is deducted on Profit as per the Governments policy.

Standing Instructions:

For all Standing Instructions regarding payment of Utility Bills /HBFC Installments, customer

fills out the Standing Instructions Form (SF- 256A) at the time of opening the account or

subsequently whenever desired to avail such facilities.


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Conversion of Existing Account to Khushali Bachat Account:

Existing PLS Savings Accounts can be converted into Khushali Bachat Account on the request

of the customer. Branch obtains written request duly signed by the customer. Branch verifies the

customers signature from the record/system and attaches the application with the original

Account Opening Form.

Eligibility

Only Individuals (Single or Joint) are eligible

3.1.7 PLS SAVINGS 365

PLS Savings 365 also falls under the category of Savings Deposit Scheme.

It is a checking account and there is no restriction on number of withdrawals and deposits

transactions.

Account is opened with minimum deposit of Rs.300,000/-

Profit is calculated on daily product basis on the balance of Rs.300,000/- and above.

However, if balances in the account fall below Rs.300,000/- on any day, the product will

be considered as well and the profit will be paid as per the rates notified by the Bank on

half yearly basis.

All other terms and conditions including rates of profit, Zakat and Withholding tax

applicable to PLS Savings Bank Accounts are applicable.


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Eligibility

All types of customers are allowed to open PLS- 365 accounts except Development Financial

Institution.

3.1.8 PLS SAVINGS 365-Gold

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

bodies.

Calculation of Profit is made on daily product basis at variable rates according to Deposit

Slab Range at declared rates on Half Yearly basis.

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

The account requires a minimum deposit of Rs. 500,000 or more in order to get attractive

profits. In case, account holder is not maintaining a minimum deposit of Rs. 500,000 in

the account, the profit is paid at the prevailing Savings Rate.

Service charges would be applicable as per Bank Policy if the balance goes below the

prescribed minimum monthly average balance.


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All other terms and conditions including rates of profit, Zakat and Withholding Tax

applicable to PLS Savings Bank Accounts are applicable.

Rates

Less than 10 Million 5%

Rs.10 Million to less than 25 Million 6%

Rs.25 Million to less than 50 Million 6.5%

Rs.50 Million to less than 100 Million 7%

Rs.100 Million to less than 250 Million 7.5%

Rs.250 Million to less than Rs.500 Million 8%

Rs.500 Million and above 8.25%

Eligibility

Individuals and institutions can open the account.
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3.1.9SAVINGS XTRA

Grow with MCB Extra by saving more and earning greater profit.

MCB Savings Extra Account offers you a wide range of attractive profit rates.

KEY POINTS

Initial balance for account opening required Rs.1000

Minimum balance maintain limit Rs.100000

The higher your balance, the higher your profit.

Now avail attractive rates up to 8.5%.*

Profit calculated on monthly basis.


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Profit paid into your account semi-annually.

No joining fee on Debit/ ATM Card.

50% discount on lockers.

Cash deposit and withdrawal facility at hundreds of branches nationwide.

Unlimited number of ATM withdrawal transactions.

3 free withdrawal transactions through the branch every month.

3.1.10 BUSINESS ACCOUNT

MCB Business Account lets you build your business through the accrued savings from

discounted transaction fees, and more.

KEY POINTS

Higher the balance the higher the number of free transactions.

Open a Business Account with Rs.50, 000 only.
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Unlimited free cash deposit and withdrawal facility at hundreds of branches nationwide.

FREE SERVICES

When you maintain average monthly balance of Rs.100, 000 or above

Demand Drafts/Pay Orders.

Cancellation for Demand Drafts/Pay Orders.

Cheque Book.

International ATM Gold Card.

TERM DEPOSIT

3.2.1 SPECIAL RUPEE TERM DEPOSIT (STD):
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The Special Rupee Term Deposit is governed under the PLS rules, but offers the depositor a

stable rate of return for a fixed maturity. It is a mandatory requirement for booking a Term

Deposit to have a checking account (Current/Savings) in the Bank.

Product is available in the following tenors:

3 months, 6 months, 1 year, 3 years & 5 years

The minimum amount to be placed under this scheme is Rs.1000, 000/- (amounts can be booked

in multiples of Rs.1000).

Each tenor is divided into 3 categories based on the deposit amount.

Rs.1,000,000 to less than Rs.10,000,000

Rs.10,000,000 to less than Rs.25,000,000

Rs.25,000,000 and above

Zakat

Zakat is deducted as per the rules of Zakat & Ushr Committee (as advised and amended from

time to time)


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Withholding Tax

Withholding Tax,where applicable shall be deducted from the profit amount, as per Income Tax

Laws in force at the time of profit payment.

This deposit can be used as a security / collateral and the depositor can avail up to 75% of the

principal amount upfront. The depositor also has the option of increasing the financing limit up

to 90% of the principal amount, upon obtaining the necessary approvals from the relevant

authority. The tenor of the financing facility should be within the maturity date of the deposit.

In case of premature encashment, the depositor will bear the tax expense

Profit payment frequency:

Profit on the special TD is paid on the date of maturity of deposit for 3 and 6 months tenor.

Deposits booked for 1, 3 and 5 years tenor is paid profit on a quarterly basis. Hence the depositor

gets the opportunity of investing for a long term without compromising on cash flows.

Payment of profit:

Profit amount will be credited into the depositors linked/ specified current or Savings

account.

Cash payment of profit amount will not be allowed.

Branch is required to maintain maturity date and profit payment dates for each account so

that there is no delay in payment of profit to the depositor.


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Eligibility

(Existing Account Holders) Individuals, Firms and Companies

3.2.2 SPECIAL NOTICE DEPOSIT (SND)

SND is issued for 07 and 30 days.

07 days Notice Deposit:

Issued for 07 days only and if encashed before 07 days is not eligible for profit/interest.

30 days Notice Deposit:

Issued for 30 days and encashed after seven days is eligible for Profit/Interest payable for 07

Days Notice Deposits.

Zakat

Zakatwill be deducted as per Zakat rules as advised and amendedfrom time to time. (Applicable

only on PAK Rupees)

Withholding Tax

Withholding Tax, where applicable will be deducted from the Profit/interest amount, as per

Income Tax Laws in force at the time of profit/interest payment.

These deposits are also received in multiple of Rs. 1000/-

If a depositor withdraws deposit on a date prior to the date of declaration of profit rates, the

profit due can be paid at the rate of profit declared for the last half year.

This, however, shall be a provisional payment with the prior approval of Regional Manager. If

the rate declared for said half year is more than what was paid to such deposit holders then the

difference shall be paid through Payment Order. In case rate of profit announced on Special


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Notice Deposit is less, then customer should pay the difference. It will be appropriate if an

undertaking from the customer is taken in this respect.

The return on Foreign Currency SND is paid on maturity or as prescribed by the Bank or SBP

from time to time.

Eligibility

Existing Account Holders (Individuals, Firms and Companies)

3.2.3 SMART FOREIGN CURRENCY FIXED DEPOSITS

The minimum amount to be placed under this product is USD $ 10,000.

Interest rates are offered based on the amount of deposit.

Free Lockers Facility

Free of Charge Bank Statement & Smart Cards

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

Preferential rates on consumer loans.

Interest on the smart foreign currency fixed deposits is paid on the date of maturity of

deposit for 3 and 6 months tenor. Deposits booked for 1 year is paid interest on a half

yearly basis.

Cash payment of Interest amount is not allowed.

Minimum retention period is 01 month, irrespective of the tenor for which the deposit is

booked. In case depositor wishes to encash the deposit before completion of one month,
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only principal amount will be paid to the customer. If customer wishes to encash the

deposit after one month but before maturity, the branch will pay interest at the Savings

Rate for the number of days completed.

In case of any change in the above features, prescribed procedure by RBG will be applicable.

3.3 Account Opening Documentation Requirement

The details of Account Opening Application, Specimen Signature Cards and other Documents to

be obtained for different types of accounts are as follows:

3.3.1 Individuals Accounts

1. Application for Opening Account (SF-1AA).

2. Specimen Signature Card (SF-6).

3. Attested photocopy of Computerized National Identity Card (CNIC) or Passport. It is a

mandatory requirement to verify the CNIC of the customer before opening the accounts,

from NADRA Online system- VERISYS

4. In case of a salaried person, attested copy of his/her service card or any other acceptable

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

5. In case of illiterate person, a passport size photograph of the new account holder besides

taking left & right thumb impressions on the Account Opening Form & Specimen

Signature Card

6. In case CNIC does not contain a photograph, Banks may allow the said customer to open

the account, subject to provision of the following documents:
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A copy of the photograph duly attested by gazette officer/Nazim.

A copy of CNIC without photograph duly attested by the same person who has attested

the photograph as per above.

A confirmation in writing to the effect that they have no other document bearing their

photograph.

Moreover, the particulars/CNIC of such persons must be confirmed from NADRA in

writing or through its VERYSES system.

3.3.2 Partnership Account

1. Application for Opening Account (SF-1AA).

2. Specimen Signature Card (SF-6).

3. Attested photocopies of Computerized National Identity Card (CNIC) of all partners.

4. Attested copy of Partnership Deed or Letter of Partnership (CF-13), in lieu of the

partnership deed, if not available) duly signed by all partners of the firm.

5. Attested copy of Registration Certificate with Registrar of Firms. In case the partnership

is unregistered, this fact should be clearly mentioned on the Account Opening Form.

6. Authority letter in original, in favor of the person authorized to operate on the account of

the firm.
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3.3.3 Joint Stock Companies

Copies of the following documents duly certified by the authorized officer of the:

1. Resolution of Board of Directors for opening of account specifying the person(s)

authorized to operate the company account.

2. Memorandum and Articles of Association.

3. Certificate of Incorporation.

4. Certificate of Commencement of Business.

5. Attested photocopies of Computerized National Identity Card (CNIC) of all the directors.

3.3.4 Clubs, Societies and Associations

Certified copies of:

1. Certificate of Registration issued by the Registrar of Cooperative Societies/ Registration

Authority.

2. Bye-Laws/ Memorandum and Articles of Association of the Society containing official

seal of the Registration Authority.

3. Permission of the registration authority for opening of Account in the name of

Association as required under section 37 (d) of Co-operative Societies Act, 1925.

4. List of members of the Managing Committee duly certified by the Registrar of Societies.

5. Resolution duly passed by the members of Managing Committee in their meeting

regarding opening and operation of account in the name of said Society. It must be
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ensured that the mandate for operation of Account given in the Resolution is not in

violation of the provision of Bye-Laws/ Memorandum and Articles of Association.

6. Attested copies of CNIC of the authorized officials/ persons.

3.3.5 Agents Accounts

1. Certified copy of Power of Attorney

2. Attested photocopy of Computerized National Identity Card (CNIC) of the agent.

3.3.6 Trust Accounts

1. Attested copy of Certificate of Registration

2. Resolution duly passed by the Trustees regarding opening and operation of Account in

the Bank in the name of said Trust Deed.

3. Attested copies of CNIC of all the trustees.

4. Certified copies of Letter of Administration/ Instrument of Trust.

3.3.7 Minor Accounts: (Age below: 18)

A Minor is a person who has not attained the age of 18 years, if the Court appoints guardian of

his/her person or property, then the period of his minority extends to the age of 21.


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1. An account in the name of minor is allowed to open by his guardian, preferably jointly in

the name of guardian / Minor or Minors, payable to either or survivor opener of the

Account.

2. Title of Account is on the Minors Name (As per Form B) &word Minor be added to

the Title of Account.

3. In the Account Opening Application, the particulars of the Guardian will be filled out in

the column of Personal Information.

4. Attested copy of Computerized National Identity Card (CNIC) of the Guardian.

5. Attested photocopy of Form-B of Minor.

3.3.8 Illiterate / Photo/ Disable Persons Accounts

1. Attested photocopy of Computerized National Identity Cards (CNIC).

2. Two Attested Photographs. (One photograph shall be pasted on the Account Opening

Form and other will be pasted on Specimen Signature Card.

3. Left thumb impression (Right thumb impression in case of female) on the account

opening application & Specimen Signature Card (SSC)


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3.4 Account opening

Client/Account Opening Process Steps

1. Customercomes into the branch and requests for opening an account.

2. Customer Services Officer (CSO): delivers the Account Opening Application along with the

terms and Conditions (AT&C) and relevant documents to the customer.

3. Customer: receives the Account Opening Form (AOF) from CSO and submits duly completed

AOF and relevant documents to the CSO.

4. CSO: checks that all the fields in the Account Opening Form have been duly filled, and the

relevant account documentation required from the customer depending on the type of account are

completed and attached.

Account Opening Form (AOF)

Specimen Signature Card (SSC)

Account Terms & Conditions acknowledgement

Attested copy of CNIC


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Copy of employment or student Card & other verification documents as required on case-

to-case basis.

Obtain customers signatures on the AOF and SS Card (in person). Moreover one signature card

will be used to capture per signature of the client (In case of Joint Account Holders use

additional signature card). Subsequently takes the form to the Relationship and Operations

Manager for Verification and authorization.

5. Operations Manager/ Account Maintenance Officer (AMO):

Verifies introducers signature from Branch Teller Module > Transactions > Non- Financial

Transactions > Customer Signatory (Screen # BT44).

Sign-off and affix stamp on the Account Application.

Forwards AOF & Client Profile Form to Relationship Manager.

6. Relationship/ Branch Manager

Interviews the customer.

Completes and sign off Know Your Customer (KYC)/ Client Profile Form.

Returns the same to the CSO for further processing.
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7. Customer Services Officer (CSO):

Selects SYMBOLS Branch Teller Module > Transaction > Non-Financial Transaction > Client

Definition (Screen # BT41) to create a client.

Insert Client Short Name. This is used as the default Title of Account whenever an

account is opened.

Input Client full Name. Pop-up box will appear on the screen: Input or select appropriate

ID Type & insert CNIC number & press OK. (Box will close automatically)

Insert Country Code, State, Country of Citizen, Country of Risk.

In the next section of the same screen, insert Client Indicator as N Normal, S Staff

and/or V VIP Account.

Input address as written in Account Opening Application- SF-1AA.

Select Account Executive & Client Type then press F-10 or click save icon available on

Tool Bar.

System generates the client number and Pop-up box appear on the screen with the following

message:

SUCCESSFULLY OPENED 09 DIGIT CLIENT NO xxxxxxxxx

CSO notes down the client number on the account opening form.

In case of joint account holders, separate client numbers will be given to each client.


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Account Opening:

Uses SYMBOLS BT Module > Transaction > Non-Financial Transaction > Account Opening >

select type of account Current or PLS (Screen # BT42) and for Term Deposit (Screen # BT422).

Input Account Type, insert Client Number and press enter.

Client information will be retrieved on the screen:

Service Charges:

Service Charges TAB shows following two charges attached with the account.

SVC- Service Charges Current

SVP- Service Charges PLS

ZAK- Zakat Service Charge

Service Charges (SVC & SVP) are not link with the exempted accounts. (The above exemption

would be applicable only on those accounts where account holders have provided relevant

documentary evidence to the branch) Zakat Deduction service charge type (ZAK) is only

attached with the accounts where Zakat Declaration Form is not submitted by the customer (Only

for Muslims). Zakat deduction is not applicable on Non-Muslims.

Select ZAK as Type, ZK as frequency & press enter Next Charge Date by default appears as for

the next year.


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For example: If account opening date is 07th November, 2006 than Next Charge date should be

07th November, 2007.

Note: ZK is the auto frequency type for Zakat Deduction. System generates the account number:

CSO note down Client &/or Account Number on the Account Opening Application and

Deposit slip.

Provides the initial Cash Deposit slip to the customer.

Forwards the Account Opening Form, relevant documents, cheque book requisition &

ATM Request to the Branch Operations for further processing.

8. Customer: Deposit cash in the account & obtains the receipt from the teller and leaves the

branch.

9. Operations Manager:

Admits customers signature, affix stamp & sign-off the Application/ SS Card.

Account Maintenance Officer:Verifies customer data (inserted in BT by CSO) with the Account

Opening Application & other relevant documents.

Step 1.

AMO scans customers signature in the Branch Teller Module (BT) > Transactions > Non-

Financial Transactions > Customer Signatory > (Screen # BT45)


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Input or Select Client Number, press enter customer Name will appear on the screen , Input

Name of Signatory & Description

System shows message at the bottom Scanning to SYMBOLS

Pop-up box appears on the screen and shows message Loading image. Press Ok and

then Click Save icon or press F10.

Popup appear as Transaction completed: Records applied and saved.

Step 02

Select Branch Teller Module >> Transactions >> Non-Financial Transactions >> Account

Signatory (Screen # BT 44). Enter Account number, press enter and save.

Keep Specimen Signature Cards (SSC) in fire proof cabinets.

Forwards Account Opening Application along with the relevant documents to the

Centralized Operations (in a sealed envelop via courier) for insertion of Client

information in Kernel Module (Financial Management), issuance & dispatch of Thank

You Letter to the New Customer and introducers. Also enclose covering note which

contains the total number of forms in the envelope.

10. Central Processing Division (CPD): performs the following functions:


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Selects Kernel Module > Static > Client Information > Client (Screen # FM144) and

completes client opening screen # 144 in Kernel Module (Financial Management).

Dispatches Thank You Letter to the customer and introducer.

After three working days, returns account opening application, relevant documents, copy

of Thank You Letter, Account Details Report & Covering Letter to the branch for their

record. Also enclose undelivered Thank You Letters, if there are any.

11. Operations Manager/ Account Maintenance Officer:

Receives account opening applications from CPD counts the total number of forms and tallies

the number mentioned on the covering letter. After verification branch forwards

acknowledgement to CPD.

Keep Account Opening Forms along with the relevant documents in the Fire Proof

Cabinets or Vault for record.

Keep Signature Cards in the Fire Proof Cabinets in a sequential order.

3.5 Classification of Accounts

3.5.1 Dormant Accounts

Checking accounts are classified as dormant accounts on the following conditions:
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Current accounts not operated for 6 months and Savings accounts not operated for one

year shall be classified as dormant accounts.

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

3.5.2 Inoperative Accounts

Current Accounts not operated for 2 years and Savings accounts not operated for 3

years shall be classified as Inoperative accounts

Half yearly profit shall continue to be applied as usual.

3.5.3 Unclaimed Deposit Account

If a Current & Savings Accounts remains Inoperative for 08 & 07 years respectively will be

classified as Unclaimed Deposit Account. In addition to this, Bank Drafts, Government Drafts,

Payment Orders, Mail Transfers, Fixed/Term Deposits etc. remains outstanding for 10 years

from the date of issuance will be classified as Unclaimed Accounts.

Banking Companies Ordinance 1962 under section 31 clearly defines that Banks are required to

transfer the Unclaimed Deposits to State Bank of Pakistan (SBP) on the completion of a period

of Ten (10) years without any delay.
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All unclaimed deposits including time deposit or any other kind of deposits or financial

instrument (Pay in slips, Payment Orders, Demand Draft, TT, MTs or any other financial

instruments)

However, Deposits/Instruments recorded in the name of Minor or Government

Department/Agency or Courts of Law are not transferred to SBP.

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

service charges are deducted.

3.5.3.1 Notice to the Holder of Unclaimed Deposits/ Instruments

03 months prior to the completion of Unclaimed Deposits, branches are required to

intimate the account holder in writing via mail on the customers address regarding the

settlement of their deposits/instruments.

If on the expiry of the three months period no acknowledgement or reply is received

from the holder of unclaimed Deposit/Instrument, the entire funds should be transferred

to SBP.

Branches are required to maintain complete record of letters sent tithe holders of

Unclaimed Deposits

Branches are also required to send written intimation to the Government Institutions,

Agencies, Court of Law and Minors (After acquiring the age of maturity) for the

settlement of their deposits/instruments.


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3.5.3.2 Reporting Of Unclaimed Deposits

Branch submits list of unclaimed deposits/ instruments separately for Pak Rupee and in Foreign

Currency (FCY) on the Form XI (Annexure- I-05-B) within thirty days after the close of each

calendar year.

3.5.3.3 Transfer of Unclaimed Accounts to State Bank of Pakistan

The amount of unclaimed PKR and FCY deposits/ instruments is transferred to SBP at

the end of each calendar year along with a list of unclaimed deposits/instruments.

In case of Frozen FCY deposits / Instruments of 1998, as and when become unclaimed,

the Bank/DFIs will surrender the equivalent PAK RUPEES to State Bank

3.5.3.4 Retention of Documents

Preserve all signature cards and documents indicating the Signing Authority and other

documents in the dual custody of Operations Manager and Designated Authorized Officer.

3.5.3.5 Refund Procedure

All claims lodged with the Branch about Unclaimed Balances transferred to State Bank of

Pakistan (SBP), should be forwarded to State Bank of Pakistan through Principal Office and after

getting Proceeds from State Bank of Pakistan same shall be paid to the Claimant.


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While forwarding any claim for refund, branches are required to obtain the following documents:

Original application for refund long with verification of attested signature/thumb

impression of the claimant by the Branch Operations Manager or Designated Authorized

Officer with the name and stamp.

Claimants address and contact number must be clearly mentioned in the application.

Copy of Intimation Letter sent to the holder of unclaimed deposit/instrument.

Attested copy of CNIC of the claimant.

Certificate as per Annexure- I-05-C.

3.6 Account Closure

For the purpose of account closing a form has been constructed to aide this process. Whenever

the client wants to close the account, the only responsibility of the bank is to collect the issued

cheque book from the customer and to get the constructed application form of acc