In the Name of AllahThe most Gracious, The most

Mercifull

Presented To: Mr. Niaz

Presented By:Marium BibiAbdul Majid

SalimRaja Shoaib

Ayesha AroojSehrish KiyaniAamir Kiyani

GroupNumber

5

Scrolling Ticker

Group Leader Mariam Bibi…. Prepared by Raja Shoaib…. With coordination of Abdul Majid, Ayesha Arooj, Amir Kiyani & Sehrish Kiyani….

FINAL PROJECT

Project Name:Project Name:

World of Finance

MMuslimuslim C Commercialommercial B Bankank

Location of MCB Head Office:Location of MCB Head Office:

Contents of Project

History Of MCB

Organizational Hierarchy

Operational Analysis

Functional Analysis

Marketing Analysis

Technology Analysis

SWOT Analysis

Problems & Recommendations

Conclusion

Pakistan Bank Ranking

MCBAskariAlliedHabib

NBPUBL

Standard CharteredFirst women

Bank of PunjabCITI bank

ABN-AMRO

History On July 9,1947 Adamjee Group

incorporated a bank called MCB

It provided banking facility to the business

community

In 1974 the bank was nationalized

In 1991 the bank was privatized

(Nishat Group purchased MCB)

Mian Muhammad Mansha is the chairman of

the Nishat group

Features of MCB First bank having unlimited liability

Pakistan’s fourth largest bank by asset(US $ 6.7 Billion)

Highest market capital in all over the Pakistan(US $ 4.1 Billion)

Nationwide distribution network(1026 Branches)

Facility of ATM machines(300 ATM machines)

MCB Tower Tallest Tower of Pakistan

Representing MCB leadership position

Features of MCB: Safety & Security features Bank generates its own power

(1.2 MW Gas Turbine) Heat recovery system Central air conditioned Fire / Smoke detection alarm Rooftop garden & Gymnasium 6high speed elevators working Helipad for the helicopter access

In 2012Mubarik Center Tower

60 floors250m height

In 2012Enshaa Twin Tower

56 floors230m height

MCB ision

Agenda

V

MCB issionM

Challenging and Changing the Way you Bank

Maintaining long term customer relationshipsthrough outstanding service & convenience

V

M

HierarchyBoard of Directors

Audit Committee

Internal AuditPresident

Commercial & RetailBanking

Risk Management

Operations

Compliance& Control

Consumer Banking

Special AssetManagement

InformationTechnology

Corporate Affairs

Corporate &Investment Banking

Treasury

Finance

Human Resources

Operational Analysis Before privatization:

Provincial headquarter had to deal Top management consisted of politicians Politicians appointed the president of the bank Motive is to earn profit only

After privatization:

Politicians had been converted into professional selectors MBA’s were recruited directly to strengthen the top management Executive Development Centers (EDC) had been developed Raised salaries of the Staff Fringe Benefits were introduced Motive is to get customer’s satisfaction Golden Handshake Schemes were introduced

Used high Technology & Automation 50% of the branches have been computerized Pioneer in the provision of ATM Conducts different Seminars Brought Revolution in the business operations Promoted Team working operations Promoted customer services & productivity

Functional Analysis Make Rational Decisions Financial Manager must have certain Analytical Tools Involves finding answers to questions

(Data which is available in Financial Statement)

Objectives:

Depends on the special interest of the stakeholders Examines that whether MCB has some sources to contribute Appraisal of

Bank Performances Risk Management Working Capital Management Credit Management Funds Management

Technology Analysis

Signature Cards Vouchers Computerization at the Bank

Machines:

FAX Machines Scanners Photocopier Machines ATM Facility

Marketing Analysis

Marketing department at the head office level

Product, Planning & Development Pricing & Costing Branch Distribution Branch Promotion & Advertisement Branch

Marketing activities at Circle & Regional level Marketing at the branch level MCB marketing efforts at the branch level Overall marketing strategy

Environment Analysis Major product lines

Rupee Traveler Cheques (RTC)

Master Card

Easy personal Loan

Speed Cash

Home Remittance

Money Gram & Global Money

WOT AnalysisS Stable position in the banking sector

Having maximum branches in all over in Pakistan

Enjoys competitive advantage

Enjoys competitive profitability

Captured majority of potential customers

High customer share

Strategies are market oriented

MCB owner is the richest person of Pakistan

S OT AnalysisW Decisions making process is very slow

Not maximum branches in abroad

ATM network is strong but still some potential area don’t have an ATM facility

Professionals are not in Top management level

Only 50% branches are computerized

All branches had not the facility of online banking

Lack of Emotional Intelligence

SW T AnalysisO Leasing opportunity

Grab more customers by providing lower rates

Provide Finance to cottage industries

Facility of advance payment

Networking & IT potential of MCB

ATM card facility

SWO AnalysisT Economic instability is a big threat

Pakistan is facing political instability

Foreign banks are flourishing

People don’t prefer banking culture

Different bank comes with innovative ideas

Department of MCB

Cash Department:

Receiving Cash book Paying Cash book Token book Scroll book Cash Balance book

Deposit Department Clearance Department Technology Department ATM Networks Remittance Department Advance Department

SBU’s of MCB

Branch Banking

Consumer Banking

Electronic Banking

Corporate Banking

Treasury & Investment

Deposit RatesForeign TradeLockers

Credit CardsMaster Cards

Internet BankingATM’s FacilityOnline Banking

Agriculture FinanceRunning FinanceDemand FinanceStructured Finance

Money MarketInvestmentsGovernment SecuritiesFinancial Advisory

Competitors of MCB

Nationalized Bank

Specialized Bank

Privatized Bank

Private Bank

Foreign Bank

First Women Bank LimitedKhushhali BankNational Bank of PakistanThe Bank of KhyberThe Bank of Punjab

The Punjab Provincial Cooperative Bank LimitedZari Taraqiati Bank LimitedSME Bank of PakistanIndustrial Development Bank of Pakistan

Allied Bank LimitedHabib Bank LimitedUnited Bank Limited

Askari BankBank Al-falah LimitedAtlas Bank LimitedFaysal Bank LimitedBank Al-Habib LimitedHabib Metropolitan Bank LimitedKASB Commercial Bank LimitedPICIC Commercial Bank LimitedSoneri Bank LimitedMy Bank LimitedMeezan Bank LimitedSaudi-Pak Commercial Bank Limited

ABN-AMRO BankAl-Baraka Islamic BankCiti BankDubai Islami Bank

Problems Faced by MCB Lack of high technology, advancement & professionals

Bad staff attitude

Workers are lazy & shift their work to others

In specialized field… workers are not educated

Unawareness of new Technology

Don’t know how to deal with customers

Fresh workers feel problem while working

“5km range to other bank” This statement is wrong

Recommendations Emotional Intelligence should be applied

Goals & Objectives should be clear to all the employees

Seminars & Training sessions should be conducted

Should spend huge amount in Technology Sector

Should provide Awareness of new Technology

On-line banking facility should be activated in every branch

Hire those who are competent for the required Job

Should open more branches in the rural areas

Conclusions

History of MCB

Structural Hierarchy of MCB

Different Analysis conducted by the bank

Faces different problems

Recommendations & solutions for problems