internship report majid 31st august

8/14/2019 Internship Report Majid 31st August

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PREFACE

Prerequisite of B.Com(Hons.) study is to undergo internship. I got the opportunity

to join the MCB Ghallah Mandi Branch, Bahawalnagar for the said purpose for a

period of 6 weeks.

Practical involvement was a great experience as interactions both with the

experienced executives and clients cemented the base of knowledge I have been

acquiring in the classroom.

This internship report includes the material about MCB and different departments

along with their working procedure.

For the completion of this project I met the various persons of these organizations.As far as my knowledge and hard work is concerned this report will provide a good

in sight of MCB.

I have special thanks for following persons who have encouraged & guide me lot. I

learned very much under their guidance.

Mr. Ahmad Jabbar Watto Branch Manager.

Mr. Sagheer Officer.

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Acknowledgements

Praise is to Allah, the most Gracious and Merciful, who blessed me with theknowledge and wisdom and enabled me to overcome this task. Heartiest

gratitude to my parents without their continuous encouragement and love Icould not have accomplished this task.

I am very grateful to my advisorMr.Syed Javed Iqbal for their continuoushelp, support and time during the entire course of my internship. I am alsovery grateful to all the staff members at MCB Ghallah Mandi Branch,Bahawalnagar especially Ahmad jabbar watto and Mrs. Asma for theirguidance and encouragement

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Dedication

I dedicate this internship report to my parents. Because of their prayers andencouragement I have been able to complete this report

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TABLE OF CONTENTS

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EXECUTIVE SUMMARYEXECUTIVE SUMMARY

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Pakistan after getting its independence, did not inherit a strong banking industryand since then saw a number of events in the industry, like the nationalization ofbanks in the 1970s. However today, the banking industry of Pakistan has been

growing over the past few years, mainly because of the consistent policiesimplemented by the Government of Pakistan, including the privatization of banksin Pakistan. Also the State Bank of Pakistans, monetary policy has been veryfriendly toward the banking industry.

There are a number of different banks established in Pakistan, including localincorporated commercial banks, foreign incorporated commercial banks,development financial institutions, investment banks, discount & guaranteehouses, housing finance companies, venture capital companies, micro financebanks and Islamic banks.

MCB Bank was incorporated in 1947 and was later privatized by the Governmentof Pakistan. MCB Bank has implement different policies to make it one of thebest banks of Pakistan, which included introducing new products and servicesand increase its operations by opening new branches in Pakistan.

Today MCB is one of the leading banks of Pakistan with a deposit base of aboutRs. 280 billion and total assets of around Rs.300 billion. Incorporated in 1947,MCB soon earned the reputation of a solid and conservative financial institutionmanaged by expatriate executives. In 1974, MCB was nationalized along with allother private sector banks.

The Bank has a customer base of approximately 4 million and a nationwidedistribution network of 1,026 branches, including 8 Islamic banking branches,and over 300 ATMs, in a market with a population of 60 million.

During the last fifteen years, the Bank has concentrated on growth throughimproving service quality, investment in technology and people, utilizing itsextensive branch network, developing a large and stable deposit base

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. The increase in the number of employees joining MCB Bank shows that peoplefeel confident in MCB Bank as a prospect employer.

The stock prices and earning per share of the bank have also increased over theyears. MCB Bank promotes its products and services through print andelectronic media. MCB Bank also promotes itself by sponsoring different events.

During the course of internship I learned about documentationrequirements and record keeping for different activities and processes,especially the documentation requirement for different kinds of financingfacilities, and documents for the product and services

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MUSLIM COMMERCIAL BANK

LIMITED

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INTRODUCTION:

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HISTORY

This bank was incorporated under companies act 1913 on 9th July, 1947(just before partition) at Calcutta. But due to changing scenario of theregion, the certificate of incorporation was issued on 17th August, 1948

with a delay of almost 1 year; the certificate was issued at Chitagong. The

first Head office of the company was established at Dacca and Mr. G.M.Adamjee was appointed its first chairman. It was incorporated with anauthorized capital of Rs. 15 million.

After some time the registered office of the company was shifted to Karachion August 23rd, 1956 through a special resolution, now recently the Headoffice of MCB has been transferred to Islamabad in July, 1999 and nowHead office is termed as Principle Office.This institute was nationalized with other on January 1st, 1974. At that timeit had 506 branches and deposits amounting to Rs. 1,640 million. Although.MCB has a reputation of a conservative bank but nationalization also left itseffects on this institute as well and by end of year 1991 in which it wasprivatized the total number of branches were 1.287 and deposits amountingto as high as Rs. 35,029 million.

When privatization policy was announced in 1990, MCB was the first to beprivatized upon recommendations of World Bank and IMF. The reason forthis choice was the better profitability condition of the organization andless risky credit portfolio which made'' it a good choice for investors. On

April 8th, 1991, the management control was handed over to NationalGroup (the highest bidders). Initially only 26% of shares were sold to

private sector at Rs. 56 per share.

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MCB is one of the leading banks of Pakistan with a deposit base of aboutRs. 280 billion and total assets of around Rs.300 billion. Incorporated in1947, MCB soon earned the reputation of a solid and conservative financialinstitution managed by expatriate executives. In 1974, MCB wasnationalized along with all other private sector banks.

The Bank has a customer base of approximately 4 million and a nationwidedistribution network of 1,026 branches, including 8 Islamic banking

branches, and over 300 ATMs, in a market with a population of 60 million.

During the last fifteen years, the Bank has concentrated on growth throughimproving service quality, investment in technology and people, utilizing itsextensive branch network, developing a large and stable deposit base.

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MISSION STATEMENT

We are a team of committed professionals, providing innovative

and efficient financial solutions to create and nurture long-termrelationships with our customers. In doing so, we ensure that our

shareholders can invest with confidence in us.

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Products and Services

Personal Banking

Deposit Accounts

Khushali Bachat Account

Khushali Bachat Account, a Rupee savings account is one of MCB Banksmost popular products. Due to the low initial deposit, the account can beopened by people from all walks of life and still avail the facility of dailyproduct profit calculation.

Mahana Khushali Bachat

MCB Monthly Khushali Scheme provides you with a steady income everymonth. Just purchase a Monthly Khushali Certificate and you will enjoy asteady income of your total deposit every month.

Pak Rupee Savings Account

MCBs Pak Rupee Savings Account offers you attractive returns on your PakRupee investment.

In addition, you have access to a countrywide ATM network convenientcash accessibility 24 hours a day. The facility also provides you withunlimited daily transactions with a limit on maximum withdrawal amountthrough the ATM machines.

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Pak Rupee Current Account

MCBs Pak Rupee Current Account offers you the convenience of unlimitedwithdrawals i.e. access to your funds whenever you want without any

notice. There is no limit on the number of transactions you make in a dayplus you can avail finance facility up to 75% of the total deposit.

In addition, you have access to a countrywide ATM network convenientcash accessibility 24 hours a day. The facility also provides you withunlimited daily transactions with a limit on maximum withdrawal amountthrough the ATM machines.

Pak Rupee Term Deposit

MCB Pak Rupee Term Deposit gives a higher rate of return. It gives youchoice of 1 month, 3 months, 6 months, 1 year, 2 years, 3 years, 4 years and5 year term deposits.

Saving 365

The MCB Saving 365 calculates profits on a daily product basis and givesyou the facility of unlimited withdrawals.

Foreign Currency Savings Account

MCBs Foreign Currency Savings Account offers you attractive returns onyour Foreign Currency investment.

You can invest in any of the four currencies i.e. US Dollar, UK PoundSterling, Japanese Yen or Euro

Your foreign currency account is exempted from Zakat and withholding

tax

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Foreign Currency Current Account

MCBs Foreign Currency Current Account offers you the convenience ofunlimited withdrawals i.e. access to your funds whenever you want without

any notice. There is no limit on the number of transactions you make in aday.

MCB Foreign Currency Term Deposit

MCB Foreign Currency Term Deposit gives a higher rate of return. It givesthe choice of 1 month, 3 months, 6 months, 1 year, 2 years, 3 years, 4 yearsand 5 year term deposits.

Dollar Khushali Account

The Dollar Khushali Account, a Dollar based account was introduced in1993 at selected MCB Bank branches. Today, you can open a DollarKhushali Account at over 200 branches in Pakistan.

Loan Products

MCB Business Sarmaya

MCB Business Sarmaya is the best Running Finance facility againstyour residential property which empowers you to manage yourbusiness dealings better. So act today and get MCB Business Sarmayaand thus improve yourbusiness, avail lucrative opportunities and expandyour business, with absolute satisfaction of cash flows.

MCB Car4u

Life is like a chess board. You plan your career options. You analyze your

business moves. But when you really want to improve your life, you make a powermove. MCB CAR4U Auto Finance is the power move that assists you in moreways than you ever imagined. It is affordable, with lowest mark up, flexibleconditions, easy processing and above all, no hidden costs.

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MCB Pyara Ghar

Some destinations require a long wait. Like waiting for a home of your own. Butwith MCB Pyara Ghar it is now easy to step into your home and start living a reallife.

MCB Pyara Ghar is an ideal Home Finance from your own bank that lets youPurchase, Renovate or Construct your home the way you have always wanted.Having your own home was never so easy

Easy Personal Loan

MCB Easy Personal Loan provides you with the financial advantage to do thingsyou've always wanted to but never had the sufficient funds for. Take that much-needed holiday. Buy a car. Refurnish your house. Purchase a new TV. Finance abetter education for your children.

MCB Master Card

Since the beginning of time, people have tried to find more convenient ways topay, from gold to paper money and cheques. Today, money is moving away fromdistinct hard currencies and towards universal payment products that transcendnational borders, time zones, and, with the Internet, even physical space. Plasticor "virtual" money, credit, debit, and electronic cash products, inevitably willreplace cash and cheques as the money of the future.

MCB Rupee Traveler's Cheques

MCB Rupee Traveler's Cheques were first introduced in 1993 as safe cash fortraveling and travel related purposes. The product has been extremely popularand is preferred over cash by customers while traveling and in all walks of life.

MCB Rupee Traveler's Cheques- The safest way to Carry Cash

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Corporate BankingCash Management Services

MCBs network of over 900 branches in Pakistan enables it to collect anddisburse payments efficiently with its cash management services. This alsoenables it to offer you a choice of paper based or electronic fund transfersolutions including collection amounts, cross branch online transactions etc.

Working Capital Loans

Based on the customers specific needs, the Corporate Bank offers a number ofdifferent working capital financing facilities including Running Finance, CashFinance, Export Refinance, Pre-shipment and Post- shipment etc. Tailor- madesolutions are developed keeping in view the unique requirements of yourbusiness.

Term Loans

MCB offers Short to Medium Term Finance to meet capital expenditure and short

term working capital requirements of our customers. The loans are structured onthe basis of underlying project characteristics and cash flows of the business.

Trade Finance Services

Under Corporate Banking MCB offers trade finance services that include anentire range of import and export activities including issuing Letters of Credit(L/Cs), purchasing export documents, providing guarantees and other supportservices.

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Online Services

MCB ATM Services

With a solid foundation of over 50 years in Pakistan, with more than 750automated branches, 269 online branches, over 222 MCB ATMs in 41 citiesnationwide and a network of over 12 banks on the MNET ATM switch, MCB ispositioned at the forefront of the banking industry in Pakistan. This success has

been possible because of a never-ending drive to achieve higher levels ofexcellence, constantly striving to raise the level of performance.

MCB Mobile Banking

At the forefront of technological excellence, MCB proudly introduces MCBMOBILE BANKING. The convenience of accessing your account balanceinformation and mini statements whenever you want or wherever you may needthem, with comfort and peace of mind.

MCB Call Center

Keeping up with banking services can be tedious but not with MCB Bank, wherephone service is at your fingertips. Just dial our Call Centre from the comfort ofyour home or office or wherever you happen to be. It offers basic banking servicesfor your convenience, eliminating the need for you to make unwanted trips toyour branch.

MCB Smart Card

MCB now brings you MCB SmartCard -a secure and convenient instrument ofpayment with unmatched functionalities. It provides 24-hour direct access toyour bank account.

The convenience and flexibility of MCB SmartCard will help you live a smarterlife. It not only helps you manage your expenses, but also eliminates undueinterest on your day to day credit card transactions. Your balance is always within

your reach and you spend accordingly.

MCB Debit CardNow MCB brings a secure, convenient and quick payment facility that enablesyou to do purchasing by using your existing MCB ATM / MCB Smart Card as aDEBIT CARD.

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Virtual Banking

MCB Virtual Internet Banking offers you the convenience to manage and controlyour banking and finances when you want to, where you want to. MCBs VirtualInternet Banking facility is simple and secure. And its free of cost. With MCB

Virtual Internet Banking you can access any of the banking services, 24 hours aday, 7 days a week and throughout the year.

MCB Virtual Internet Banking offers a wide range of online services which makesyour banking accessible anytime and from anywhere.

Detailed Account Summary of all listed accounts.

Mini-statements of each of the listed accounts showing recent transactionhistory for that account(s).

Statement-by-Period of each of the listed accounts, based on the periodspecified.

Immediate or Scheduled Transfer of Funds between your own accounts, as wellas to third-party accounts setup as beneficiaries, maintaining accounts withMCB.

Scheduling of One-Time as well as Recurring Funds Transfers.

Payment of utility bills for registered Utility Companies.

Immediate or Scheduled Bills Payment. Scheduling of One-Time as well asRecurring bill payments. Option for Full or Partial payment based on thepayment conditions specified by a particular Utility Company.

Bulk Salary Transfer for Corporate Customers, to facilitate them in payingsalary to the corporate employees, who maintain accounts with MCB.

Bulk Funds Transfer for Corporate Customers.

Cheque Book Request for any of your listed accounts.

Payment/Transfer Alerts for reminding, in advance, prior to the processing ofspecified payments and transfers.

Personal Alerts for reminding of pre-specified events and occasions.

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Islamic Banking

Deposit Schemes

For customers who are looking for a deposit opportunity where they can purse

their funds and reap halal returns on it, we offer the following products:

Al-Makhraj Saving Account

Al-Makhraj Ianat Account

Al-Makhraj Term Deposit

Fund Based Facilities

Ijarah ProductsMCBs Islamic Ijarah, analogous to the English term 'leasing, is based onthe Ijarah wa Iqtina concept which means the sale of the asset to thelessee after the Ijarah has matured. Under this scheme, MCB will be theowner of the asset, and the customer (lessee) will be given the asset to usefor a certain period of time in return for monthly rental payments. MCBwill give a separate unilateral undertaking that it will offer to sell the assetto the customer (lessee) at thematurity of the Ijarah agreement at a pricethat may be equal to the security deposit amount, hence the term WaIqtina.

Types of Ijarah

o Car Ijarah

o Equipment Ijarah

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CORPORATE STRATEGIES

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CORPORATE INFORMATION

Corporate Information

Board of Directors

Mian Mohammad Mansha

Chairman

S.M.Muneer

Vice Chairman

Members

Tariq Rafi

Mohammad Arshad

Shahzad Saleem

Sarmad AminMian Raza Mansha

Aftab Ahmad Khan

Datos Mohammad Hussein

President & Chief Executive

Atif Bajwa

Advisor

Raza Mansha

Audit Committee

Tariq Rafi

Chairman

Mian Raza Mansha

Member

Aftab Ahmad Khan

Member

Datos Mohammad HusseinChief Financial Officer

Ali Munir

Company Secretary

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Abdus S. Sami

Auditors

KMPG Taseer HAdi& Co.Chartered Accountants

Riaz Ahmed & Co.Chartered Accountants

Legal Advisors

Mandiwalla & ZafarAdvocates & Legal Consultants

Registered Office

MCB Building, F-6 / G-6,Jinnah Avenue, Islamabad.

Principal Office

MCB TowerI.I. Chundrigar Road, Karachi.

Registrar's and Share Registration Office

THK Associated (Pvt.) Ltd.

Shares Department, Ground Floor,

Modern Motors HouseBeaumont Road, Karachi.

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STRUCTURE OF MCBSTRUCTURE OF MCB

PRESIDENT AND CEO

EXECUTIVE EXECUTIVE

DIRECTOR DIRECTOR

INT SAMG INSPECTION OPERATION GSD

DIV &

FRAUD

FORGERY

CONSUMER CORPORATE HRD

BANKING BANKING

GROUP GROUP

(continued)

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CONSUMER CORPORATE

BANKING BANKING

GROUP GROUP

GENERAL

MANAGER

REGIONAL

MANAGER

CHIEF

MANAGER

MANAGER

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STRUCTURE OF MCB GHALLAH

MANDI BRANCH BAHAWALNAGAR

27

G u

M e s s

C a s h

O f f i c

A c c o

A s s i s

M a n a

B r a n c h


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PERFORMANCE OVERVIEW

MCB Bank Ltd. reported earnings results for the first half ended June 30,

2009. Profit before tax was PKR 11.7 billion registering a significant growth

of 10% over the reported profit before tax of corresponding period last year.

Profit after tax was at PKR 7.76 billion translating into an EPS of PKR 11.22.During the period under review the bank's deposits showed a growth of 10%

from December 31, 2008 and closed at PKR 362 billion. Net mark-up interest

income in creased by 44%, due to a growth in CASA, which kept the increase

in cost of funds subdued in comparison to increase in interest revenues

During the year the Bank continued to make strong progress inspite of the difficult market conditions. Revenues grew stronglyand considerable advancement has been achieved in expanding

our asset base. In addition to close focus on P&L and liquiditysituation in 2008, the Bank continued to invest in humanresources, enhancing customer segments and product portfoliosand further strengthening our controls and credit riskmanagement, a number of strategic action have been taken toensure that we are well positioned for the future and are ableexcel in the years to come. The Bank has reviewed its governancestructures and has further strengthened the roles of the board,management and staff ensure strict compliance to good

governance.

In 2008 MCB was given the award as the Best Bank in Asia byEuro Money. This was a significant milestone for the Bank andreaffirms the efforts and vision of the management to positionMCB at par with the best international banks.Another key development of MCB in 2008 was the acquisition of20%shareholding in BCB by Malayan Banking Berhad, the largestfinancial institution in Malaysia. This partnership will furtherimprove and enhance our business processes and will strengthenour footings on domestic and international frontiers.

Commercial Branch Banking Group, with its large network ofbranches continued to drive MCB growth in 2008. they enhancedtheir sales model through the introduction of a direct sales forceteam and personal bankers in many branches while continuing tostrengthen their customer service quality. The year witnessed asuccessful restructuring of the agriculture division and this led to

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people as the true competitive advantage steps have been takento promote employee engagement and satisfaction. Areas offocus for 2009 remain training and development, internalrelationship management and an improved performancemanagement system to bring our organization closer tointernational standards.

Operation Group continued to focus on centralization of processedand business continuity. Internal control Division wasstrengthened and led the Bank wise efforts for compliance to theCOSO based internal control framework.

The Board of Directors continued to take steps to improvegovernance in the Bank. The reform and revision in policiesinitiated in 2007 on the basis of the guidelines provided by theState Bank of Pakistan were carried further and consolidated. Thedemarcation between the Board and management functions werefurther clarified, the Board began to focus on its role in theformulation of policies and monitoring of the progress of the Bankwhile leaving the operational matters in the hands of the

management and staff. The coordination between the staff,management and board was further enhanced to improveeffectiveness and cohesiveness of Bank operations. The Boardexpects to continue to improve governance, strengthen financialcontrols, enhance transparency, promote professionalism,increase customer service, promote work efficiency and expandBank business.

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Financial analysis

Despite the slowdown in the economy during 2008, the Bank registered

healthy revenues for the year and witnessed a significant growth in Balance

sheetthe profit before and after taxation, available for appropriation together

with the recommended appropriation is as under;

Rs.in million

Profit before taxation 21,868

Taxation 6,493

Profit after taxation 15,375

Un-appropriated profit brought forward

Transfer from surplus on revaluation of asset(net of tax) 15,375

Profit available for appropriation 20,527

Appropriations

Statutory Reserve 1,537

General Reserve 1,000

Final cash dividend-Dec.2007 3,141

Interim dividend-March 2008 1,885

Interim dividend-June 2008 1,885Interim dividend-September 2008 1,885

Total appropriations 11,333

Un-appropriated profit carried forward 9,193

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Due to the sudden down turned in the economy and the sharp decline in ;equity

prices, Karachi Stock Exchange placed a floor mechanism on individual security

prices whereby they could vary within the normal circuit breakout limit but notbelow the floor price. This mechanism remained in place from August 28,2008 to

December15,2008, consequent to the removal of floor mechanism the KSE 100-

index fell to the level of 6,037 points against its all time high level of about 15,676

points. This resulted into significant diminution in the value of Banks investment

in equity share held under Available for Sale (AFS)category. Keeping in view

this deteriorated situation, SBP&SECP issued instructions whereby they gave the

option to companies to charge the diminution directly to equity without routing it

through profit &loss account and then while adjusting the future prices, amortize

the same on quarterly basis during 2009. total impairment loss on the basis ofmarket values of Dec. 31,2008 of all equity shares under AFS came to 4893.73

million.

As for as the current financials under review are concerned, profit before tax has

registered an increase of Rs.560 million over 2007 and is reported at

Rs.21.9jbillion for 2008. the Banks profit after tax for the year 2008 was Rs. 15.4

billion, and increase of Rs. 109million over the profit reported for the year 2007.

Interest income remained the main contributor towards the Banks total income.

Markup income has gained momentum in 2008 with an increase of 26% over the

previous year.

The share of markup on loans and advances (30 billion) continued to dominate the

overall composition of the markup income for the Bank(Rs.40 billion).

In non-markup income, the major contribution of 2.86 billion was from fee,

commission and brokerage income which increased by 8.8% over 2007. however,

the total non-markup income for the Bank registered a decline of Rs.657 million in

2008 compared to the previous year. This decrease was primarily due to lower

returns from equity investments.

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Due to high inflation the cost to income ration has gone up to 24.47% from 18.57%

in 2007. however, this ration still remains one of the lowest in the industry.

Despite the challenging times faced by the Bank in 2008, the balance sheet has

witnessed considerable improvement over 2007. assets increased by Rs.34

billion-8% over the previous year whereas liabilities increased by R.30 billion-

8.4% over the previous year,=. This has resulted in an increased in shareholders

equity before surplus of Rs.52 billion up by 15%over 2007.

The increase in assets was driven primarily by the increase in Advances and

lending to financial institutions which grew by 19% and 290% respectively. TheAdvance portfolio showed a remarkable growth with the corporate portfolio taking

the lead. Performance was strong both I volumes and rated of return. To ensure

optimal segmental diversification the Bank executed strategic monitoring of

portfolio expansion through diversification. Adverse economic conditions and

increased discount rates have contributed to a ramp rise in non-performing loans in

the overall Banking sector. Consequently, Banks classified portfolio was also

adversely affected by a sharp increase in NPLs of 70% from Rs10.7 billion in 2007

to Rs. 18.3 billion in 2008. This has also been reflected in the gross NPL to

Advances ratio which has increased from4.67% in 2007 to 6.63% in 2008.

Similar to the previous yea, in 2008 Banks major concentration of investment

remained in Government securities, followed by shares in listed companies and a

portion in debentures &TFCs. Due to the strong and extensive branch network,

deposits of the bank have registered a growth of Rs.38 billion. This increase is

primarily driven by the growth in current deposits of 13.3% and fixed deposits

growth of 92%. The favorable deposits mix has been instrumental in maintaining

the cost of funds on the lower side.

Reported earnings per share grew from 24.30 in 2007 24.47 in 2008. The return on

Equity and return on assets have decr3eased mainly due to the increase in equity

(35%) and an increase in assets of 20%. Due to the collapse of the stock market in

2008, MCBH share price registered a blow and closed significantly lower than the

same period last year. However, despite these circumstances, the performance of

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MCB shares was still significantly better than other ;layers in the market

reaffirming the trust of its investor base in

SWOT ANALYSIS

STRENGTHS

1. MCB has the highest ROE amongst its

competitors

2. MCB has the highest Net Interest

Margin compared to HBL, NBP, etc.

3. It has lowest average deposit rates.

4. It has a high consumer loan growth

rate.

5. It has an extensive branch network

6. It has less exposure to textile sector as

compared to peer banks.

WEAKNESSES

1. It has an increasing rate of NPLs

2. Its EPS growth rate is decreasing over

the past years.

3. Does not have international

recognition.

4. Though its investments are increasing

but 40% are confined to investment in

government securities only. This

reduces its returns.

5. Its return on average assets is

decreasing

OPPORTUNITIES

1. MCB can focus on consumer banking

to increase yields

2. It can work to improve the conditions

of NPLs

3. During recession, it can take advantage

of decreased Cash Reserve

Requirement.

4. It can expand its Islamic banking.

THREATS

1. MCB has threat from banks like UBL

which has low cost deposit base

2. It also has threats from banks

including NBP and UBL that areincreasing their branch network to

encourage deposit raising.

3. Threats from Government if it raises

CRR and SLR.

4. It has threats from Al-falah and UBL

as far as Car Financing is concerned

5. Similarly NBP is a threat in house

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financing.

CONCLUSION:

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The economy of the country is booming and with the investment favorable policies

and their smooth implementation, the role of banks in todays economy have

become an important one.

The banking industry is also reaping the fruits of this economic boom by growing

rapidly over the past few years. There are a number of mergers happening in the

economy with foreign investments coming into the banking sector.

In conclusion I would like to say that currently MCBs stock seems to be a

profitable one to invest in. This decision is supported by the thorough Fundamental

and Technical Analysis. Muslim Commercial Bank is a financially strong company

and its past & recent performance shows favorable trend in prices which may give

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investors an opportunity to make capital gains by buying its stock or by taking long

positions for their stocks in the market.

RECOMMENDATIONS

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Technological AdvancementsTechnological AdvancementsBank Alfalah should develop a modern connectivity architecture to effectively

maintain an online connection of the branch with other branches and also the ATM

link, which may include using modern technologies like fiber cables, routers etc.

Also backup links should also be developed,

Also a proper IT department should be established in all branches, with

professional having the knowledge to maintain a secured connection with other

banks. Also scheduled backups of data should be done with in the bank.

Workshops and CounselingWorkshops and CounselingWork shop programs should be conducted in every city, rather than just two

centers, for all Bank Alfalah employees. These workshops should relate to all

aspects of banking and may also be conducted with other banks as a joint program.

Also as parts of the human resource training, counseling programs should be

started for junior executives or new entrants into the bank, introducing them to

their prospects in this industry.

The lower staff employed at Bank Alfalah should also be given a chance to

succeed in life by training them in different simple jobs at the bank, which my

include sorting of cheques, phone banking etc.

IncentivesIncentivesIncentive schemes should be developed for the employees that can help motivate

them, which might include:

Personal loans and car financing facilities for all ranks of employees.

Scholarship programs for all employees.

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Introducing employee awards at branch and regional levels.

Job rotation programs to enhance the skills of employees.

Priority Banking and BusinessPriority Banking and BusinessDevelopment DepartmentDevelopment Department

There is no priority banking department at Bank Alfalah, like that of other bank. A

priority banking department should be developed so as to give even more exclusive

and customized services to high end customers with large deposit accounts. Also

Business Development Department should be developed in all branches, so that

they can actively find prospect customers to take up products from Bank Alfalah.

Innovative ProductsInnovative ProductsNew and innovative products should be introduced by Bank Alfalah, like other

bank such as Citibank and Standard Chartered Bank develops for their customer.

For this purpose, special teams should be developed that include professional from

all departments of the banks to come with ideas. This process will increase the

number of ideas generated and even produce innovative products for the bank thatmight give them the edge.

Placements of EmployeesPlacements of EmployeesThere are some departments in the bank that do not have enough employees, while

some have more than needed. All this creates inefficiencies and so the operations

manager should look at the department of the branch and see where inefficiencies

lie, in consultation of with the heads of the departments and hire individuals where

there are less employees or rotate employees from other departments.

Amenities in BranchAmenities in BranchThere should be a prayer room developed in all branches as many employees want

to pray, but do not have the proper place to do it. Also work like sorting, which

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internship report majid 31st august

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