final internship report mcb

8/10/2019 Final Internship Report Mcb

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CHAPTER #1


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INTRODUCTION

"A banker is a dealer in capital or more properly a dealer in money. He is anintermediate party between the borrower and the lender. He borrows from one partyand lends to another."

According to Banking companies ordinance 1962

Under section 3(B) of Banking Companies rdinance !#$ "Banker meansperson transacting the b%siness of accepting for the p%rpose of lending or in&estment'of deposits of money from the p%blic' repayable on demand or otherwise andwithdraw able by che%e' draft' order or otherwise and incl%des any ost ffice*a&ings Bank."

Gomal University D.I Khan


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Commercial Banking in Pakistan+he interesting point which , obser&ed d%ring the span of mine internship was

the historical backgro%nd of Banking - inancial sector which is the one in whichgreat impro&ement and growth is obser&ed since the formation of akistan. orst%dying the growth of this sector we can di&ide it into three stages' which are asfollows/

re01ationali2ation ra

Banks Position in 19!

BAN" NO# O$ BRANC%&' D&PO'IT'

HB4 ##5 #'!#6

1B 75 7'##6

UB4 85 7'#56

9CB 76# !'#86

AB4 !87 756

B(Nationali)ation Period*

n :an%ary 6!' !58 all akistani banks were nationali2ed thro%gh1ationali2ation Act !58. Under this law all akistani banks became a p%blicproperty. All small banks were merged in bigger banks to create 7 ma;or akistanibanks akistani banks. +hese banks were to control by akistan Banking Co%ncil.+here are still contro&ersies abo%t this act of go&ernment as whether it contrib%ted in

s%ccess of fail%re of banks. Howe&er the ma;or changes after nationali2ation were asfollows/

ecrease in ser&ice le&el of bank officers.

>ecrease in profitability as well.

Howe&er the effect of e=pansion was enormo%s and it can also be depictedwith the help of ta+le 2 that shows the deposit - branch positions of differentnationali2ed banks.

Banks Position In 1992



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Bank No# o, Branc-es De osits Rs# In /illions HB4 !$# !73'83!

1B !88? !$?'#5

UB4 !#?8 ?5'8?$

9CB !$?? 76'6!3

AB4 576 33'575

++A4 56# 873'3#$

C(Post Nationali)ation &ra

,n !6 the go&ernment decided to denationali2e all the nationali2ed instit%tes.*ome was also s%ggested in banking sector. or this p%rpose' amendments were madeto 1ationali2ation Act !58 and two nationali2ed banks were pri&ati2ed.

Along with this a permission to open banks in pri&ate sector was also granted.+he r%les regarding establishment of new banks and for incoming foreign banks werealso@ela=ed.

+he0three pri&ati2ed banks are

a) 9CB taken %p by a pri&ate gro%p in April' !!

b) AB4 taken %p by its own employees in *eptember' !!

c) UB4 taken %p by UA party in $66$.

After these changes a large n%mber of pri&ate and foreign banks started their

operations in akistan and the present stat%s can be seen from the following fig%res/

'C%&DU0& BAN"'

Categor No# o, Banks

1ationali2ed Commercial Banks 3

ri&ate ri&ati2ed Commerce Banks !?

%blic *ector *peciali2ed Banks 8

oreign Banks !

+otal *ched%le Banks 88

,n addition to abo&e mentioned sched%led banks there are 5 >e&elopmentinancial ,nstit%tes' !8 ,n&estment Banks and 9%darabah Companies.



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CHAPTER#2

mc+ -istorical Backgrond

/CB Bank 0td#.

to +e t-e +est place to 3ork 4#

%istor*

+his bank was incorporated %nder companies act !!3 on th :%ly !85 (;%stbefore partition) at Calc%tta. B%t d%e to changing scenario of the region' the certificateof incorporation was iss%ed on !5th A%g%st !8? with a delay of almost ! year the

certificate was iss%ed at Chitagong. +he first Head office of the company wasestablished at >acca and 9r. D.9. Adam;ee was appointed its first chairman. ,t was



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MCB AWARDS

! %ro money Awards



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CHAPTER#3

Organi)ational strctre

ORANI7ATIONA0 'TRUCTUR&

As 9CB is a banking company listed in stock e=change therefore it follows allthe legalities which are imposed by concerned stat%tes 9r. 9%hammad 9ansha ischairman - chief e=ec%ti&e of the company with a team of !6 directors and ! &icechairman to help in the b%siness control and strategy making for the company.

A team of !6 professionals is handling operational 9anagement of the bank.9r. 9%hammad 9ansha also heads this team. +he different operational departmentsare Cons%mer Banking - ,+ di& inancial - ,nter branch di& Banking operations

di& H@ - 4egal di& financial control - A%dit di& Credit management di&Commercial Banking di& Corporate Banking di& +reas%ry management - Dro%p



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and lastly *pecial Assets 9anagement (*A9) Dro%p.

or effecti&e handling of branches' it has been categori2ed into three segmentswith different people handling each category. +hese categories are/

Corporate Banking

Commercial Banking

Cons%mer Banking

A( Corporate Banking*

+hese are branches' which ha&e an e=pos%re of o&er @s. !66 million. Us%allyincl%des m%ltinational - p%blic sector companies.

B( Commercial Banking*

+he branches which has a credit e=pos%re of less than @s. !66 million b%t

ha&ing a credit portfolio of more than @s. $6 million (e=cl%ding staff loans)Us%ally branches in large markets and commercial areas come %nder this

category.

C( Consmer Banking*

+hese are the branches' which ha&e e=pos%re %p to @s. $6 million' and theseincl%de all the branches' which are neither corporate nor commercial branches.

@ecently the organi2ational str%ct%re was re0designed as follows/

Pro5ince 3ise +ranc-es

Corporate Consmer Commercial

$6 branches #35 branches 3?3 branches

1%mber of Branches in >ifferent localities/

%n;ab #3$



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*indh $3$

1omestic !686

&erseas 8

I !

+otal !687

O5erseas Branc-es

*ri 4anka 3

Bahrain !

U@+H@9@' +H BA1E HA* *9 @*A4* U1>@C1*,>@A+,1 + 1 9@ B@A1CH* ,1 *9 U@A1CU1+@,* A1> A*


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% i e r a r c - O , / a n a g e m e n t


RAD&' O$ BAN"

'&P

&'&P

*J

VP

AVP

GRADE-1

GRADE-2

GRADE-3

A''I'TANT

Clerical staff Non-clerical staff

Cashier

Technical Staff

Messenger

Dispatch Rier


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BRANC% N&T:OR"+he following is the Branch 1etwork of 9CB Bank 4imited.

*ector wise position of circle'

As on 360!$0$665

Consmer 'ector ;1< Branc-es.

Commercial 'ector 21< Branc-es

Corporate 'ector 2< Branc-es

O5erseas Branc-es =

yo% a &ariety of prod%cts and ser&ices c%stomi2ed to satisfy yo%r indi&id%al

needs.

Understanding Con5enience#

+he ne=t ob;ecti&e of 9CB Bank 4imited is to make %nderstanding acon&enient thing for the whole en&ironment of the bank' for the p%rpose of

boosting %p its &al%es and prosperity in s%ch a competiti&e en&ironment.Con&enience is what the c%stomer is looking for and this is what we at 9CBare contin%o%sly stri&ing to pro&ide.


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CHAPTER#4

$ields o, Acti5ities o, /CB

$ields o, Acti5it ies o, /CB

+he p%rpose of banks is to pro&ide some ser&ices to the general p%blic. And for thisp%rpose different banks pro&ide different ser&ices to the people in different forms.



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+he 9CB Bank (9CB) is a commercial bank' in modern time commercial banks playa &ery important role and their f%nctions are manifold. +he main f%nctions andser&ices which 9CB Bank 4imited pro&ides to different peoples are as follows.

pen >ifferent acco%nts for different peoples

Accepting &ario%s types of deposits

Dranting loans - ad&ances

Undertaking of agency ser&ices and also general %tility f%nctions' few of those are as%nder/

Collecting che%es and bill of e=change for the c%stomers.

Collecting interest d%e' di&idend' pensions and other s%m d%e to c%stomers.

+ransfer of money from place to place.

Acting an e=ec%tor' tr%stee or attorney for the c%stomers. Kro&iding safec%stody and facilities to keep ;ewellery' doc%ments or sec%rities.

,ss%ing of tra&elers che%es and letters of credit to gi&e credit facilities to

tra&el.

Accepting bills of e=change on behalf of c%stomers.

%rchasing shares for the c%stomers.

Undertaking foreign e=change b%siness.

%rnishing trade information and tendering ad&ice to c%stomers.

or proper f%nctioning of branches and the o&er all bank has been di&ided in differentdepartments. +hese departments handle different ;obs so that di&ision of work is therefor impro&ement of f%nctions and also it is easy to control the sit%ation. +he generaldi&ision in a branch is as follows/

Cash department

>eposit department

Ad&ances - credit department

oreign e=change department

+echnology department (new addition in order to cop with the growing needs of dayto day technology re%irements)

C a s - D e p a r t m e n t

+he following books are maintained in the Cash >epartment/!. @ecei&ing Cash Book



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$. aying Cash Book

3. *croll Book

8. Cash Balance Book


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D e p o s i t D e p a r t m e n t

Bank deals in money and they are merely mobili2ing f%nds within theeconomy. +hey borrow from one person and lend to another' the difference betweenthe rate of borrowing lending forms their spread or gross profit. +herefore we can

rightly state that deposits are the blood of the bank which ca%ses the body of aninstit%tion to get to work. +hese deposits are liability of the bank so from point of&iew of bank we can refer to them as liabilities.

+he total deposits of 9CB are growing since its ina%g%ration b%t afterpri&ati2ation there is a sharp incline in o&er all deposits of the bank. +he increase indeposits is also a ca%se of increase on total n%mber of acco%nts bank has progressedin both aspects.

Tpes o, deposits

>eposits can be segregated on two bases' one is the d%ration in which theref%nds are e=pected to be with the bank and second is the cost of getting these f%nds.*o di&ide deposits in two classes according to d%ration of deposits i.e.

!) +ime deposits liabilities

$) >emand deposits liabilities

And on the basis of the cost to ac%ire these f%nds' a deposit can be classifiedas any one of following fo%r' High Cost 9edi%m Cost' 4ow Cost 1o Cost.

Banks has different kinds of deposit schemes in order to ind%ce deposits.+hese schemes are a mi=t%re of the abo&e mentioned two types of deposits with anaddition of different ser&ices - re%irements s%ch as minim%m balanceF re%irement'mode of transaction' basis for calc%lation of profit' ded%ctions' additional benefits'eligibility for different gro%ps.

,n the similar fashion' 9CB has a large &ariety of deposit schemes andsome of them are as follows/

Crrent ac .CD(*

,n this type of acco%nts the client is allowed to deposit or withdraw money asand when he likes. He may' th%s' deposits or withdraws money se&eral times in a dayif he likes. +here is also no restriction of amo%nt to be deposited or withdrawn.

Howe&er' there is re%irement of minim%m balance maintenance of @s. !6660.Us%ally this type of acco%nt is opened by the b%sinessmen. 1o profit is paid by thebank and no ser&ice charges are ded%cted by the bank on c%rrent deposits acco%nt.+hese types of deposits are also e=empt from comp%lsory ded%ction of Iakat.



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P0' 'a5ing Bank ac .'A(*

+his type of acco%nt is for those persons who want to make small sa&ingsF.+his type of acco%nt is opened with a minim%m deposit of @s. !6660. Under thisscheme deposits can be made only %p to a0costing amo%nt and withdrawals areallowed twice a week or ? times a month. ,f a big amo%nt is re%ired a se&en daysnotice is re%ired before the withdrawal. +he profit is paid on these acco%nts on theminim%m balance d%ring a month for the whole of that month. Iakat - otherwithholding ta=es are ded%cted as per r%les of the go&ernment.

"s-a0i Bac-at ac ."BA(*

+his is an ad&ance form of 4* sa&ing ac' in this type of acco%nt. +heminim%m balance re%irement for this type is @s. $7660. +here is also restriction on

the n%mber of withdrawals as well' i.e. %p to 8 times in a calendar month. ormaintaining this e=tra balance the c%stomer gets the benefits of profit calc%lation ondaily prod%ct basis and also free ser&ice of standing instr%ctions of paying %tility billsand HBC installments. All other r%les of sa&ing acco%nt are applicable.

P0' !6 'a5ing ac*

+his is a special type of sa&ing acco%nt in which c%stomer maintains aminim%m balance of @s. 366'6660 and in t%rn he gets the benefits of daily profitcalc%lations and also there is no restriction on the ma=im%m n%mber of withdrawals

as was there in the case of EBA. +here is also another ad&antage of this scheme that ifbalance on a partic%lar day falls below the minim%m balance then only the prod%ct ofthat day is ignored whereas in EBA' if balance falls below the minim%m limit then allthe prod%cts for that month are ignored on in other words no profit is paid for thatmonth.

NOT&*

4* *a&ing' E%shali Bachat - 4* 3#7 sa&ing acco%nts can be opened inforeign c%rrency also. Before n%clear tests of !? these acco%nts were opened in fo%rma;or c%rrencies b%t now these are only opened in U*> (L). Howe&er' now bankdisco%rages the opening of foreign c%rrency acco%nts beca%se *tate Bank of akistan

(*B) and all the loss in case of de&al%ation pro&ide no forward co&er risk ordepreciation in local c%rrency has to be born by bank himself. +his increase in costhas left foreign c%rrency acco%nt of no %se' therefore' now bank prefers to acceptdeposits in local c%rrency rather in foreign e=change.

"-anm Bac-at 'c-eme*

+his is a type of term deposit' in this type of deposit an acco%nt is depositedand monthly payments of @s. !6660 are made by the acco%nt holder in this acco%ntfor a minim%m of !6 years. After the e=piry of term' he recei&es his f%nds along with

profit for the tenor. +he distincti&e feat%re of this prod%ct is that profit is calc%lated onmonthly basis and charged to acco%nt on end of each half ear. +hen profit is also

calc%lated on that amo%nt of profit' which is credited to the c%stomerFs acco%nt. *o wecan say that in this type of acco%nt there is a concept of acc%m%lated profits on profit.



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+his ends in getting a hea&y ret%rn for the depositor at the end of tenor for hissmall sa&ings. +his prod%ct was act%ally introd%ced to promote sa&ing habits in the

people. Iakat and withholding ta=es are ded%cted as per r%les only at the time ofmat%rity while making payment to the c%stomer.

%a /+arak 'c-eme*

+his is also &ery closely related with Ehan%m Bachat scheme. +his wasdesigned to help the persons who are willing to offer Ha;; b%t are %nable to sa&ere%ired f%nds. ,n this deposit schemes' $ or 3 years agreement is entered with ac%stomer. >%ring this time he keeps on depositing monthly deposits and his acco%nt ischarged with the acc%m%lated profits calc%lated on # monthly basis. +he scheme is sodesigned that total amo%nt to be recei&ed at the end of this scheme comes e%al to theanticipated cost of offering Ha;; at the end of tenor. Iakat - withholding ta= areded%cted at the time of payment.

/ont-l k-s-ali sc-eme*

+his scheme is similar to CDC in the sense that an initial deposit is made inthis case also b%t instead of l%mp s%m payment at the end of the tenor' the person getsa monthly profit on his deposits. Under this scheme' the bank has g%aranteedminim%m rate of !G per month b%t %s%ally this rate is more than !G per month.Iakat - withholding ta= are calc%lated as per r%les laid down by the go&ernment.

Term deposit receipts .TDRs(

+his is a type of term deposit in which a receipt is iss%ed for &arying tenors

ranging from ! month to 7 years or more. +hese are in the form of receipts and profiton these receipts is paid biann%ally. +hese receipts are encashable after e=piry of the

period for which they were iss%ed. >ifferent profit rates are applied to different typeof +>@s.

'pecial Notice Deposits .'ND(*

Under this deposit scheme' a deposit is recei&ed from the depositor %nder thecondition that he will intimate the bank before a certain period in case of withdrawals.+here are two types of *1>s' they are 5 days and 36 days notice deposits. +he profitis paid on these deposits b%t it is nearly e%i&alent to sa&ing acco%nt rate.

$nctions+his was a brief re&iew of different types of deposit schemes. +he >eposit

>epartment handles the acco%nt opening' profit payment and acco%nting of all typesof deposit schemes.

Accont opening*

Acco%nt opening is an agreement in which c%stomer offers his f%nds and bankaccepts these f%nds' therefore the nat%re of relation between a banker and c%stomer isof a contract%al one and all the conditions applicable to this contract act are also

applicable.



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Procedre ,or opening*

roced%re for opening of acco%nt is as follows/

A person' who wants to open any kind of acco%nt' has to fill in a printed form'

which is pro&ided' by the bank' free of cost. *eparate acco%nt opening forms are %sedfor different types of acco%nts.

Bank %s%ally re%ires some one m%st introd%ce that new depositor. Anintrod%cer can be any person known to the bank b%t preferably it sho%ld be ac%stomer of the bank. Howe&er' the manager can open the acco%nt by his ownintrod%ction.

,f the manager is satisfied' it will obtain the f%ll signat%re of the c%stomer0 onthe form and specimen signat%re card' makes the first deposit' and iss%es the che%e

book.

+he following are gi&en to the c%stomers/

ay0in0slip is the proof of deposit. or e&ery payment' which is to bedeposited in the bank' the pay0in0slip is to be filled %p. +he ob;ect of this book is to

pro&ide the c%stomer with the bankFs acknowledgment for receipt of money to becredited this acco%nt.

Che%e Book contains a n%mber of che%es. ,t enables a c%stomer to makewithdrawal from this acco%nt or make payment of &ario%s parties by iss%e of che%e.

ass Book is a copy of the c%stomers acco%nt as appears in the books of thebank. +he Clerk records Balance in this book.

1+/

,n case of partnership acco%nt partnership deed sho%ld be attached.

,n case of companies memorand%m and article of association' certificate ofincorporation' certificates for commencement of b%siness' list of directors and boardresol%tion for opening of acco%nt is also obtained from the c%stomer.

Acco%nts of +r%sts' =ec%tors - Administrators can also be opened b%t withthe prior appro&al of the Head ffice.

rofit payment - calc%lation is done in accordance with the r%les of each typeof deposit scheme0by the deposit department. +he prod%cts for each deposit schemeare calc%lated separately and added till the end of #0month period. +hen the s%m total

of these prod%cts is m%ltiplied with the respecti&e profit rates' which are iss%ed by theHead ffice at the end of each half yearly closing. +he profit pro&isions for each typeof deposits are also calc%lated on monthly basis by the same department in order tocalc%late the net profit or loss position of the branch.

Acco%nting entries are also made in the respecti&e books of acco%nt bythis department. Howe&er' in small and medi%m si2e branches' the acco%ntant

performs the book keeping d%ties for all kinds of ledgers.



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C0&ARIN D&PART/&NT

&ery banker acts both as a paying as well as a collecting banker' ,t ishowe&er an important f%nction of crossed che%es. A large part of this work is carried

o%t thro%gh the bankers clearing ho%se.A clearing ho%se is a place where representati&e of all banks of the city get

together and settle the receipts and payment of che%es drawn on each other. As thecollecting banker r%ns certain risks in receipt of their ownership the law has pro&idedcertain protections to the banks.

+he 1egotiable ,nstr%ment Act' !??!' lays down hat drawer or holder of ache%e or draft may cross the instr%ment generally or specially. ,t f%rther lies downthat a crossed che%e can only be paid to a banker' who collects it for a c%stomer ingood faith and witho%t negligence.

Tpes o, c-eEes collected*

Trans,er c-eEes*are those che%es' which are collected and paid by thesame branch of bank.

Trans,er deli5er c-eEes*are those che%es' which are collected and paidby two different branches of the same bank sit%ated in the same city.

Clearing c-eEes* are those che%es' which are drawn on the branches ofsome other bank of the same city or of the same area' which is co&ered by a partic%larclearing ho%se.

Collection c-eEes*are those che%es' which are drawn on the branches ofeither the same bank or of another bank' b%t those branches' are not in the same cityor they are not the members of clearing ho%se.

$nctions o, Clearing Department*

+o accept +ransfer' +ransfer deli&ery' clearing and collection che%es fromthe c%stomers of the branch and to arrange for their collection.

+o arrange the payment of che%es drawn on the branch and gi&en forcollection to any other branch on 9CB or any other members or s%bmember of the local clearing ho%se.

+o collect amo%nt of che%es drawn on members' s%b0member of localclearing ho%se' sent for collection by 9CB Branches' not represented atthe local clearing ho%se.

Common Procedre ,or all C-eEes*

i) @ecei&ing and scr%tini2ing the che%es and other deposit instr%ments' and thepay0in0slip at the co%nter.

ii) i=ing the stamps.

iii) *cr%tiny and receipt by the a%thori2ed officer.

i&) @et%rning the co%nter file to the depositor.



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0edgers o, Deposit Department*

+he following types of ledgers are concerned with deposit departments/

a) *a&ing 4edgers

b) C%rrent 4edgers

c) rofit - 4oss *haring 4edgers

d) i= >eposit @egister

e) *.1.+.>. @egister

f) Call deposit register

g) C%m%lati&e deposit certificate register

h) Cash book

i) >aily profit and loss s%mmary book

;) fficer spaceman signat%re book

k) Jo%cher register

Howe&er' in comp%teri2ed branches all these ledgers are no more there b%tonly day books are maintained. +he rest of the work is done on comp%ters.



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ADANC&' D&PART/&NT

Ad&ances are the most important so%rce of earning for the banks. 9CB is alsogi&ing f%ll attention towards this aspect and it is also ob&io%s from the growing

portfolio of ad&ances and from &ery low delin%ency rate. +he credit portfolio of this

instit%tion is in a &ery m%ch better shape than other financial instit%tions of akistanand the credit goes to the management and the staff who are concerned abo%t the%antity and %ality as well.

!) 4oans

$) Cash Credits

3) &erdraft

1( 0oans*

4oans are monetary assistance by a financial instit%tion to a b%siness'

indi&id%al etc. +he loans are granted by the bank in l%mp s%m' so these types calledfi=ed or demand loans. ,nterest is charged on the whole amo%nt of a fi=ed loan.

+he borrower withdraws whole the amo%nt of loan. +his type of loan isnormally granted against sec%rity of gold doc%ments.

,n case of demand loans against gold or doc%ments' a demand promissory notefor the amo%nt of loan is taken from the borrower loans are granted %nder

a( 0oan against old*

Under this type of loan' which is granted to the borrower the Head Cashier

estimates the &al%e of Dold or Dold ornaments thro%gh an agent (Dold smith) andkeeps a margin of 86 to 76 percent. After the opening the gold loan acco%nt a token isgi&en to the borrower' which is a bank receipt.

n repayment of loan' the gold or ornaments held as sec%rity for it' togetherwith the demand promissory note d%ly discharged is ret%rned to the borrower and hisreceipt for the gold ornament taken in the demand loan ledger. +his receipts states thathe ornaments ret%rned are complete and in order. art deli&ery of ornaments is gi&enagainst part payment of a loan b%t care is taken that the ornaments still in banks

possession f%lly co&ers the balance of the loan o%tstanding. +he interest gold loan isto be applied with %arterly.

+( 0oan against pledged o, st ock*

,n case of ad&ancing s%ch types of loans' the following preca%tions are dept inthe mind/

i) *tock pledged m%st be readily saleable

ii) rod%cts sho%ld be readily saleable

iii) Ad&ance sho%ld be within the borrows means



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ReEirement , or loan*

or granting loan to any party or indi&id%al' the bank checks followingpartic%lars of the client/

!) Credibility

$) easibility @eportBy Credi+ilit' bank :%dges the credibility of the client by his past bank

record' CB, report etc. it is &ery important in making decision abo%t gi&ing him loan.

$easi+ilit report is on the r%nning or proposed b%siness of the client. +hereport enables the bank to ;%dge the likely ret%rn of the b%siness.

2( Cas- Credit

Under s%ch cash acco%nt is opened in the name of the c%stomer whoborrows from the bank. C%stomer is granted a loan %p to a certain limit' sanctioned by

the head office' from which he can draw when he re%ires and interest is charged onthe amo%nt act%ally %tili2ed by the c%stomer. ,n order to a&oid the danger of idle f%nd'the bank charges a certain rate of interest' e&en if the c%stomer does not withdraw anyamo%nt. +he rate charged by the bank on cash credit in 8# paisa per tho%sand ondaily basis.

+he credit is %s%ally gi&en against the sec%rities of goods or merchandi2e asfollows/

1# Ad5ances AAIN'T P0&D& stock in trade or

prodcts


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Tec-nolog Department+echnological ad&ancements are also affecting the banking ind%stry. +he

foreign banks ha&e a competiti&e edge o&er all local banks in their technologiesFad&ancements and a%tomated systems. 4ocal banks ha&e also reali2ed the gra&ity oilthis sit%ation and are stri&ing to add comp%teri2ed systems to their branches

9CB is ahead of all other local banks in this field and now it is in a positionto e&en compete with foreign banks. +here are more than !687 branches of 9CB allo&er akistan and o%t of these more than 366 branches are f%lly comp%teri2ed Almostall .the branches of big cities are comp%teri2ed therefore' the need for a technologydepartment at each branch is growing. 1ow a day' a comp%ter di&ision is working ineach city to pro&ide ser&ice to ad the branches of that area.

9CB has also introd%ced the now concept of online banking. +here are nowmore than $76 branches linked thro%gh this system and they can transact with eachother directly %sing comp%ter systems at their own branches. 1ow c%stomers do notha&e to wait long for their transactions and can operate their acco%nt thro%gh all theonline branches.

AT/ Net3o rk*

A+9 stands for A%tomatic +eller 9achine. +his machine is %sed to transactin oneFs acco%nt witho%t inter&ention of h%mans. +hese machines are basically %sedfor taking cash' confirming balances and re%esting statements che%ebook.

9CB has the largest A+9 network in the co%ntry at the moment with almostone A+9 at each online branch and also A+9 terminals at ,nternational Airports. +hisnetwork co&ers more than the $5 cities of akistan incl%ding the pro&incial capitals

and large commercial cities of the co%ntry.A+9s are operated thro%gh a card iss%ed to the &al%ed c%stomers and by

application of ersonal ,dentification 1%mber (,1 n%mber). A person can withdrawfrom any machine across akistan with ha&ing an acco%nt in only one branch of9CB. +his was only possible with the help of online system. ,n this system all themachines are linked to central banking host at ,@9 di&ision Earachi thro%gh eithersatellite or telephone controller. +his system identifies the cardholder and his ,1

1%mber.

1ow 9CB has also entered into a contract with Cirr%s' which is a s%bsidiaryof 9asterCard. +his contract will enable an A+9 cardholder to %se his acco%nt e&en

when he is o%t of co%ntry at all the A+9s where Cirr%s logo is displayed.

Dreen Cards are ordinary cards with a ma=im%m withdrawal facility of @s.!6'6660 in a day. +he ann%al fee for this card is @s. 3660 only.

Dold Cards are special cars with ma=im%m withdrawal limit of @s. $76660in a day. +hese cards are iss%ed to the persons ha&ing more than @s. 7666660 as theira&erage balance.

,nternational Cards are iss%ed in collaboration with Cirr%s and are %seableall o&er the world with ma=im%m withdrawal facility according to the standards ofCirr%s.



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! ( / CB "%U '% A0I BA C%AT ACC OUN T*

$eatres*

a) ?G rate of ret%rn per ann%m.

b) @et%rns calc%lated on daily.

c) A&erage balance and paid half yearly.

d) ,ntrod%ced first time in akistan.

+he facility of helping acco%nt holders pays %tility bills (electricity'

telephone and gas) thro%gh their acco%nt. 1o %e%es. 1o delays.

= ( P RI/ & C URR& NCF ACC OUNT ' C%&/ &*

4a%nched to attract deposits in foreign c%rrencies. U* >ollars' o%nd*terling' %ro and :apanese Nen.

$eatres*

a) wing foreign c%rrency acco%nt %nder the rime C%rrency *cheme allows yo%to earn attracti&e rates of interest in foreign c%rrency.

b) No% ha&e a choice between opening this acco%nt in yo%r personal name andopening it %nder ;oint names.

c)


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been withdrawn. No%r acco%nt will be restriction free.

k) +he rime C%rrency *cheme is e=empt from alO forms of ta=es incl%ding,ncome +a='


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introd%ced at b%sy commercial centers. +raders and other clients can now makedeposit' with case' at s%ch centers %p to ?.669.

1 2( U ti lit Bi ll s Co ll ec ti on


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R & / I T T A N C & '

Demand Dra,t .DD(

>emand draft is a written order drawn by a branch of a bank %pon thebranch of same or any other bank to pay certain s%m of money to or to the order of

specified person

a) >emand draft is a negotiable instr%ment.

b) 4egal pro&isions are same as that of che%e.

c) ,t is to be ens%red that p%rchaser can at least sign.

d) +h%mb e=pression is not accepted on >>

e) +he following are the parties.

f) %rchaser.

g) ,ss%ing branch.

h) >rawee branch.

i) ayee.

A demand draft may be iss%ed against the written re%est of the c%stomerbefore iss%ing it m%st be seen that the demand draft is in order.

'crtin o, Application

+he >emand >raft application m%st be scr%tini2ed by the co%nter clerk inrespect of following points.

A +here sho%ld be branch where payment is to be made.

B f%ll name of payer sho%ld be mentioned

C amo%nt in words and fig%res m%st be same

> application to be signed by the p%rchaser

T&0&RAP%IC TRAN'$&R .TT(

+ransfer of f%nds from one branch to another branch of the same bank or%pon other bank %nder special arrangements.

+elegraphic transfer is not negotiable

+he f%nds are not payable to bearer

9inor cannot a&ail this facility



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Parties

ollowing are the parties in&ol&ed

Applicant

>rawing branch

>rawee branch

Beneficiary

%ll name of the beneficiary or acco%nt n%mber sho%ld be mentioned in theapplication form.

,nstr%ction regarding mode of payment sho%ld be obtained.

A record in the remittance o%tward register sho%ld be maintained.

All the remittance m%st be controlled thro%gh n%mber.

/ail trans,er +ransfer of f%nds from one branch to another branch of the same bank with

in or o%t side the city is called mail transfer.

9ail transfer is not negotiable

+he proced%re is same as for >>

All preca%tions m%st be obser&ed

Pa Orders .PO(

ay order is meant for bank own payment b%t in practice they are alsoiss%ed to c%stomers.

A pay order is written a%thori2ation for payment made in a receipt formiss%ed and payable by the bank. +o the person named and address.

+he following are the parties

A. %rchaser

B. ,ss%ing branch

C. ayee

Charges m%st be reco&ered at prescribed rate.

ay order sho%ld be prepared like demand draft.

A record of all iss%ed and paid sho%ld be maintained.

Credit &o%cher sho%ld be prepared



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IN$OR/ATION ABOUT /F BRANC%

!( Preparation o, AT/ '-eet*

A+9 *heet is prepared on daily basis and m%st be tally on both sides. +hreetypes of acco%nts %se in this statement i.e.' c%rrent acco%nt' sa&ing acco%nt andkh%shali bachat acco%nt. C%rrent acco%nt entries are posted separately and sa&ingacco%nt and kh%shali acco%nt are entered in same head. Use of f%nds from theseacco%nts is mentioned in these acco%nts and at last it m%st be balance on both sidesand then forward it to other transfer sheet.

=( Procedre To %onor a c-eEe

At 9CB Bank 4imited' Che%es are recei&ed for the following p%rposes.

!) or Cash payments

$) or transfer (from one acco%nt to another)

3) or Clearing

i( $or cas- Paments

Che%es which are presented on Bank co%nter m%st be checked in thefollowing way/

!) >ate.$) *ignat%re of >rawer.3) *ignat%re of ayee.8)


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1ote/

ayment is also made when che%es of same branch acco%nt is presented fortransfer to other acco%nt in same ranch along with che%e for payment.

ii( C-eEe ,or Trans,er*


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clearing.

Clearing credit &o%chers are entered on clearing sheet. *%ch credits arebalanced by gi&ing debits to che%es recei&ed in clearing from other branches. At thebeginning of the day clearing ret%rn sheet is recei&ed. Jo%chers are made if

!. Clearing recei&ed is more than clearing deli&ered then Credit &o%cher.

$. Clearing deli&ered is more than clearing recei&ed then Credit &o%cher.n the same day' credit &o%chers sent for clearing are entered on the sheetFs

credit side.

Che%es are sent to 1,+ after taking them on calc%lator' their total amo%ntalong with total n%mber of instr%ments. A s%mmary is prepared and sealed afternoting the n%mber of seal in s%mmary.

+elephonic +ransfer>>0 >emand >raft0 ayment rder

or ++' the acco%nt of beneficiary m%st be there in branch. >> is also

prepared and beneficiary can get payment.irst of all' erforma is filled by p%rchasing party along with che%e or cash

payment.


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in&entory and che%e books iss%ed are recorded in this register. +he acco%nt n%mberfor which the che%e book is iss%ed and the n%mber of lea&es are also recorded in thisregister when the che%e book iss%ed an entry is passed in the che%e book iss%eregister.

6(Trans,er O, Utilit BillsH#

eople pay bills thro%gh checes .in s%ch sit%ation debit is gi&en to c%stomersacco%nt and credit is gi&en to specific %tility bill. ,t m%st also enter into transfer sheet.Beca%se it is transfer from one acco%nt to another.

( Preparation O, TT DD #/T And Pa Order*

+hese are ma;or portion banking work.beca%se in this time world is global a&illage and e&ery one engage in social and economic iss%es. ,n this regard he wantssafe transfer of money from one place to another place. eople can a&ail theopport%nities of >> (>emand >raft) ++( +elephonic +ransfer) 9+( 9ail +ransfer)and ay order. And choose one of them according to their re%irements and benefits.

a( Demand Dra,ts*

>emand drafts is written order' drawn by one branch o f bank %pon Another

branch of the same bank' or %pon other bank %nder some special to pay a certain s%m

of money to or to the order of specified person.

>emand draft is a negotiable instr%ment.

>emand draft is neither iss%ed payable to barer nor drawn on the branches

sit%ated within the same city.

,t is to be ins%red that the p%rchaser of demand draft is able to sign at least

his name.

+( Telegrap-ic Trans,er .TT(*

+ransfer of f%nds from one branch to

another branch of same bank or another bank %nder some special arrangements for

payment to the beneficiary thro%gh +elegram+ele=a= is called +elegraphic transfer.

+elegraphic transfer is not negotiable. +he f%nds remitted thro%gh telegraphic transfer

are not payable to bearer order b%t only to payee. +elegraphic transfer of f%nds to a

branch sit%ated in same city sho%ld not effect.



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@emittance can be for the credit of payee. +o a&oid complication this not to beeffected on application of minor

c( /ail Trans,ers

+ransfer of f%nds from one branch to another of the same bank within or o%tside

city or %pon other bank %nder special instr%ction for payments to beneficiary thro%gh

mailco%rier ser&ice is called 9ail +ransfer. ,t is similar abo%t ++. B%t the difference

is that it can be iss%ed door branch inside the city where in ++ case it is not possible.

d( Pa Order*

A pay order is a written a%thori2ation for payment made in receipt from

iss%ed and payable bank to the person named and address is gi&en. ,t is iss%ed by and

drawn %pon and payable by the same branch of the bank.

+hese are some modes for transferring f%nds from one place to other and ,

try to learn abo%t these %pto some e=tent.

;( Preparation O, Ad5ices*

reparation of in&oices is essential part of banking sector. , learn abo%t the

preparation of ad&ices. Appro=imately all transaction with o%tside the branch in thecity or o%tside city is appeared with ad&ices. , branch there is b%lk transaction of cashremittances. After recei&ing of proper instr%ment it is entered into transferringregister. ither it is paid in cash or it can be deposit into bank acco%nt. Bank sent it toiss%ing branch for clearance of its amo%nt. After it' it enters in receipt register.

@eceipt of %tility and telephone bills and in e&ening its ad&ices are preparewith ne=t day date and deli&er to respecti&e main branch for transferring these f%ndsto concern department'.

Cas- department*

, also work in also in cash department with cash officer. +his is a &ery

technical and painstaking ;ob. Beca%se it is main f%nction of bank to recei&e deposits

and make payments. ,t incl%des two heads/

!. Cash payments

$. Cash @eceipts



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a( Cas- Paments*

Cash is paid against a che%e presented by c%stomers. Cash officer is bo%nd

to make payment against this debit ad&ice (che%e) , learn following points sho%ld be

keep into mind whole making payment against che%e

o It should not be post dated.

o Amount in words and figures should be same.

o Signature should be matched with specimen.

o There is no cutting or over writing in cheque.

o It should not be tear.

o There is availability of balance to make payment.

After checking all these preca%tions payment is made against che%e. +he

amo%nt is posted in a persons acco%nt. And it is also in proper sheet. And at the end

of day cash is sorted and tally with a&ailable f%nds.

+( Cas- Receipts*

Cash is recei&ed thro%gh pay in slip.


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9(Rpee Tra5elers C-eEes* RTCs

card copy. ayment is made. @+Cs can beendorsed to other party. nce recei&ing party will pay the @+Cs along with credit&o%chers in their rele&ant acco%nt with Bank. ayment will be credited to acco%nt of

paying party.



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CHAPTER#9

$INDIN' AND R&CO//&NDATION'



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$INDIN' AND R&CO//&NDATION'

From the Q%ant%m of the profit and its financial data it can be easily ;%dged

that after pri&ati2ation' 9CB BA1E is performing well. ,ts deposits are growing day

by day and so its profitability. +he controlling body is responsible for the prod%cti&e

performance of the Bank.

ollowing are my obser&ation and s%ggestion to impro&e the efficiency for the

de&elopment of the economy.

A big portion of the home remittance is sent by akistan working capital

thro%gh 9CB Bank 4imited. As we know a big portion of this amo%nt is

wasted p%rchasing of l%=%ries. +he people moti&ated to sa&e money by

offering the deposit thro%gh &ario%s in&estment schemes. +he rate of profit

sho%ld increase !G or $G than other banks and it wo%ld be profitable step for

bank.

+here is a criticism on the banking management that the salaries of the

employees are decreasing in e&ery s%cceeding year. And , think this will shake

the confidence and working habit of the employees.

+here is another recommendation abo%t the bank that there is no proper timing

of the bank and there is made an %nnecessary delay in the banking

transactions' which might not be a good sign for the bank from f%t%re

prosperity point of &iew.

*taff t%rno&er partic%larly of trained staff res%lt in financial and other losses.

+he amo%nt spent by the bank on employment' ind%ction and training of

o%tgoing officers constit%tes to beat till another officer sho%ld ready pro&e this

work. +he e=od%s of bank officer in the past has worsened the sit%ation.

9ost of the bank employees' are sticking to one seat only with the res%lt that

they become master of one partic%lar ;ob and loose their grip on other banking

operation. ,n my opinion all the employees sho%ld ha&e reg%lar ;ob e=perience



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all o%t0look towards banking. +he promotion policy sho%ld be ad;%sted.

@efresher Co%rses for the staff are most important in any international

organi2ation.

Al the employees sho%ld ha&e these co%rses according to their re%irement.

oreign e=perts can also be called for this p%rpose.

&ery year some of the employees sho%ld be sent for training to other

co%ntries and employees from other branches sho%ld be bro%ght here. *ome

more reading material sho%ld be pro&ided. +he p%rpose sho%ld be to ed%cate

the employees with the ad&ance st%dies in their field. +he employee sho%ld be

pro&ided the opport%nities to attend and participate in seminars and lect%res on

banking.

As s%ch system sho%ld be designed that e&ery employee who has some

problems with his officers can comm%nicate it to the higher management and

some steps m%st be taken to impro&e that.

@ecr%itments sho%ld be strictly on merit basis and ind%ction sho%ld be after

proper and e=tensi&e training.

ld and la2y staff sho%ld be replaced by yo%ng' %alified and energetic staff.

oreign branches sho%ld be opened in order to capt%re the international market

and to earn international rep%te for the bank.


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CONC0U'ION

,t is e&ident from this report and the financial statements of 9CB that it

is making progress by leaps and bo%nds. +he profits of 9CB ha&e grown

considerably d%ring the last few years and this trend is e=pected to contin%e

into the f%t%re. +herefore' we concl%de that 9CB has a &ery prospero%s present

and f%t%re' which ass%res the shareholders of wealth ma=imi2ation. *ide by

side of it , think that if bank wo%ld be able to co&er and control on the abo&e

mentioned recommendations then it wo%ld be in s%ch a sit%ation that will really

lead it towards the road of prosperity' de&elopment and integrity. And with the

abo&e mentioned sentences , think there is too fa%lt of the c%stomers and in

order to make the proper working of the bank the c%stomers sho%ld also

cooperate with the bank which will be really a good' ambitio%s and diligent

condition for the bank. And then bank will be really in s%ch a sit%ation and

position to compete its competitors in the co%ntry as well as on international

le&el.



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R&$&R&NC&'

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$. www.bankshistory.com

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