internship report at mcb bank limited

INTERNSHIP REPORT ON

MCB BANK LIMITED

PRESENTED TO:

PROF. DR. EHSAN MALIK

PRESENTED BY:

SHEHZAD WAHEED

(MC09124)

UNIVERISITY OF PUNJAB

GUJRANWALA CAMPUS

SUPERVISED BY:

MR. HAFIZ IMRAN AKRAM

SIGNATURE: _____________

PRESENTED BY:

SHEHZAD WAHEED

(MC09124)

EXECUTIVE SUMMARY

As a compulsory part of degree of master of commerce, I did my 6 weeks internship

in a branch of MCB Bank Limited, located at Bank Square Gujranwala.

MCB Bank Limited (formally known as Muslim Commercial Bank) is one of the

oldest and biggest banking company of Pakistan with a domestic network of over

1,130 branches and 600 ATMs across Pakistan with a customer base of 4.5 million

(approximately). It was incorporated on July 09, 1947 under Indian Company Act

1913 and was nationalized in 1974 as part of Government of Pakistan's economic

reform movement and was later privatized to Nishat Group in 1991. MCB Bank has

won various “Euro money” and “Asia Money” awards as best bank in Asia and

Pakistan. 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.

During the period of my internship at MCB, I did not find any problem in my learning

process. Although there were some limitations but they were manageable. I learned

the processes of remittances, account opening, ATM Card, dealing with information

seeking customers, sending and receiving confirmation mail and different types of

letters. I mainly worked in clearing and posting department most of the period of my

internship. I also commented on daily high value transactions of the branch and

prepared KYC forms and different debit and credit vouchers. Financial analysis and

SWOT analysis of MCB are also included in this report. As a whole, it was quite a

good and exciting learning and practical experience because it was my first time to

having opportunity of learning in real business world and other than class rooms.

ACKNOWLEDGEMENT

First of all I am really thankful to almighty ALLAH, who gave me the

strength to complete degree and internship in time and without problems.

I am grateful to all my teachers who gave me knowledge and enabled me

to use that knowledge into practical field during my internship.

I am also thankful to staff at MCB, Bank Square branch for being a help

in matching my class room knowledge with practical working processes.

Especially the branch manager “Khawaja Salman” and “Chowdary

Afzal”. They were really a useful help during my internship period.

My Loving Parents and

Honourable Teachers

Table of Contents

Content Page#

Title Page i

Inner Page ii

Executive Summary iii

Acknowledgment iv

Dedication v

Table of Contents vi

1.0: INTRODUCTION TO REPORT 8

1.1: Introduction 9

1.2: Purpose 9

1.3: Sources and Methods of Collecting Information 9

1.4: Limitations of Information Gathering 10

1.5: Explanation of Accounting & Business Techniques and Limitations 10

2.0: ORGANIZATIONAL PROFILE 13

2.1: About MCB 14

2.2: History of MCB 15

2.1.1: Nationalization 15

2.1.2: Privatization 15

2.2.3: Board of Directors 16

2.2.4: Other Information 16

2.3: VISION STATEMENT 17

2.4: MISSION STATEMENT 17

2.5: Values at MCB 18

2.6: Awards & Accolades 19

2.6.1: Euro Money Awards 19

2.6.2: Asia Money Awards 20

2.7: Organizational Setup 21

2.8: Management Structure 22

2.9: MANAGEMENT HIRARCHY 23

2.10: Policy Formation 24

2.11: Managerial Policies 24

2.12: Products & Services: 25

2.12.1: Personal Banking 25

2.11.2: Corporate Banking 54

2.11.3: Islamic Banking 58

2.11.4: Agriculture Division 61

2.11.5: Other Services 67

3.0: DEPARTMENTS 69

3.1: Departments at Main Office 70

3.2: Departments at Branch 70

3.2.1: General Banking 71

3.2.2: Foreign Exchange Department 75

3.2.3: Credit Department 76

4.0: AREA OF INTERNSHIP 77

4.1: Work Done by Me 78

4.1.1: First Week 78

4.1.2: Second Week 81

4.1.3: Third Week 81

4.1.4: Fourth Week 83

4.1.5: Fifth Week 84

4.1.6: Sixth Week 85

5.0: FINANCIAL ANALYSIS 86

5.1: Financial Statements 87

5.2: Results 89

5.3: Explanation of Results 93

6.0: SWOT ANALYSIS 96

6.1: Internal Analysis 97

6.1.1: Strengths 97

6.1.2: Weaknesses 98

6.2: External Analysis 99

6.2.1: Opportunities 99

6.2.2: Threats 100

7.0: RECOMMENDATIONS 101

8.0: CONCLUSION 104

9.0: BIBLIOGRAPHY & REFRENCES 106

10.0: GLOSSARY 108

11.0: ANNEXURE 114

INTRODUCTION TO

REPORT

8

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UNIVERSITY OF PUNJAB, GUJRANWALA CAMPUS 9

1.1: Introduction:

In this section a brief explanation of purpose of this report, sources and methods of

information gathering, accounting and business techniques used in this report and

limitation of information gathering and accounting and business techniques will be given.

1.2: Purpose:

This report is prepared in the result of internship done at a branch of MCB Bank Limited

located at Bank Square Gujranwala. After completing four semesters of M.COM, a six

weeks internship is a necessary part of the degree at any manufacturing or service

organization.

Internship is indeed a first step into practical field and to work in real business settings. It

gives opportunity to use and match the class room knowledge with practical skills and let

the student do the research work himself while observing and understanding accounting,

finance and management system of the organization. One of the useful objectives of the

internship is to work with business professionals.

1.3: Sources and Methods of Collecting Information:

To make this report various sources of information are used. The most important sources

of information is staff of branch and self collected data during the course of internship.

Financial statements of MCB, website of MCB, different economic reports, press

releases, articles, business record and different books of the course are some other names

of sources of information used for making this internship report. Financial statements of

MCB are collected from the website of MCB and different press releases and news

reports are taken into consideration in order to have an understanding of situation of MCB

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in banking sector of Pakistan. Annual reports of three previous years of MCB are

collected from the financial performance portion of the website of MCB and for the

financial and ratio analysis business finance books and different business and information

websites and a special lecture given by Sir Hafiz Imran Akram helped me to have a better

understanding of analytical methods and to perform the report work in a better way.

1.4: Limitations of Information Gathering:

In large companies like MCB, the access to primary information is a point where different

facts do matter like economical and social position of internee. Secrecy policies of bank,

non-availability of information in a manner required for analysis are some of the

limitations and due to work load on staff of the bank they have very small amount of time

to proper assist. The availability of high speed internet connection is also necessary

otherwise it seems near to very hard to complete this project in time.

1.5: Explanation of Accounting & Business Techniques and Limitations:

SWOT analysis and financial analysis are explained below:

1.5.1: SWOT Analysis:

SWOT analysis is a strategic planning method used to evaluate the Strengths,

Weaknesses, Opportunities, and Threats involved in a project or in a business venture. It

involves specifying the objective of the business venture or project and identifying the

internal and external factors that are favorable and unfavorable to achieve that objective.

SWOT analysis groups the information into two main categories, internal analysis and

external analysis.

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The internal analysis is a comprehensive evaluation of the internal environment's

potential strengths and weaknesses. Factors should be evaluated across the organization in

areas such as company culture, company image, key staff, access to natural resources,

operational efficiency, operational capacity, brand awareness, market share, financial

resources, patents and trade secrets etc.

External analysis covers the study of opportunities and threats in particular organization.

Changes in the external environment may be related to customers, competitors, market

trends, suppliers, partners, social changes, new technology, economic environment,

political and regulatory environment etc.

1.5.2: Ratio Analysis:

Ratio Analysis enables the stakeholder to spot trends in a business and to compare its

performance and condition with the average performance of similar businesses in the

same industry. Ratio analysis may provide the all-important early warning indications that

allow you to solve your business problems before your business is destroyed by them.

Financial ratios are calculated from the annual financial reports of the particular

company.

Financial ratio analysis groups the ratios into categories (solvency ratios, activity ratios,

liquidity ratios, profitability ratios) which tell us about different facets of a company's

finances and operations. Financial institutions such as banks, financial service companies,

insurance companies, securities firms and credit unions have very different ways of

reporting financial information, i.e. they use some specialized ratios like earning assets to

total assets ratio, net margin to earning asset ratio, deposits times capital etc. Here earning

assets are those assets which give markup.

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1.5.3: Trend Analysis:

In trend analysis there are two types of analysis are done which are:

1.5.3.1: Horizontal Analysis:

Horizontal analysis is a form of trend analysis. It uses the figures from a prior year’s

income statement as the basis for calculating percentage increases and decreases over

time. It is conducted by setting consecutive balance sheet, income statement or statement

of cash flow side-by-side and reviewing changes in individual categories on a year-to-

year or multiyear basis.

A comparison of statements over several years reveals direction, speed and extent of a

trend(s). The horizontal financial statements analysis is done by restating amount of each

item or group of items as a percentage.

1.5.3.2: Vertical Analysis:

Vertical analysis examines relationships within a given year. To do this with the income

statement, divide each line by the first item, net sales. Net sales are a summary measure

of a firm’s total activities, so evaluating each income statement item relative to net sales

makes sense. The result yields common-size income statements in percentage terms.

ORGANIZATIONAL

PROFILE

13

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2.1: About MCB:

MCB Bank Limited, with more than 60 years of experience as one of the leading banks in

Pakistan, was incorporated on July 9 in 1947. The bank has journeyed remarkable tenure

of more than half a century of competitively edged and well positioned heights of success

by deploying quality banking, heads on technological developments, professionally

leading management and prudent and ethical work methodologies. MCB was nationalized

along with other private banks in 1974 as part of Government of Pakistan's economic

reform movement and was later privatized to Nishat Group lead consortium in 1991.

Since privatization, MCB's growth has been phenomenal. Today, MCB in one of the

largest foreign banks in Sri Lanka, the first bank in Pakistan to launch Global Depository

Receipts (GDR) in 2006, has strategic foreign partnership with Maybank of Malaysia

which holds 20% shares in MCB through its wholly owned subsidiary Mayban

International Trust (Labuan) Berhad since 2008, has international indirect regional

presence in Dubai (UAE), Bahrain, Azerbaijan, Hong Kong and Sri Lanka and serving

through a domestic network of over 1,130 branches and 600 ATMs across Pakistan with a

customer base of 4.5 million (approx.)

MCB is reputed as one of the soundest financial institution and as one of the leading

banks in Pakistan with a deposit base of PKR. 462 billions (approx.) and total assets of

PKR 605 billions (approx.). The bank is versed as one of the oldest and most responsible

banks in Pakistan and has played pivotal role in representing the country on global

platforms while being one of the few institutions that are recognized and traded in the

international market.

The bank has also been acknowledged though prestigious recognition and awards by Euro

Money, MMT, Asia Money, SAFA (SAARC), The Asset and The Asian Banker.

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2.2: History of MCB:

This bank was incorporated under companies’ act 1913 on 9th July, 1947 (just before

partition) at Calcutta. But due to changing scenario of the region, the certificate of

incorporation was issued on 17th August, 1948 with a delay of almost 1 year; the

certificate was issued at Chittagong. 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 an authorized capital of Rs. 15 million.

After some time the registered office of the company was shifted to Karachi on August

23rd, 1956 through a special resolution, now recently the Head office of MCB has been

transferred to Islamabad in July, 1999 and now Head office is termed as Principle Office.

2.2.1: Nationalization:

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

(Nationalization) Act 1974. MCB was 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.

2.2.2: 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.

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2.2.3: Board of Directors:

Mian Mohammad Mansha Chairman

Mr. S. M. Muneer Vice Chairman

Mr. Tariq Rafi Director

Mr. Shahzad Saleem Director

Mr. Sarmad Amin Director

Dr. Muhammad Yaqub Director

Dato' Mohammed Hussein Director

Mian Raza Mansha Director

Mr. Aftab Ahmad Khan Director

Mian Umer Mansha Director

Dato' Seri Ismail Shahudin Director

Mr. Manzar Mushtaq Director

Mr. M.U.A. Usmani President / CEO

2.2.4: Other Information:

Total Branches 1130

Islamic Branches 8

Staff Strength 10488

Overseas Branches 7

Total ATMs 600

Islamic Branches 8

Total Deposits 431 Billions

Total Assets 567 Billions

Principle Office MCB Tower, I.I. Chundrigar Road, Karachi.

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.

17

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2.5: Values at MCB:

MCB have some values which are as follow:

Integrity:

MCB is the trustees of public funds and serve the community with integrity. It believes in

being the best at always doing the right thing. It delivers on its responsibilities and

commitments to its customers as well as its colleagues.

Respect:

MCB respects its customer’s values, beliefs, culture and history. It values the equality of

gender and diversity of experience and education that its employees bring with them. It

creates an environment where each individual is enabled to succeed.

Excellence:

MCB takes personal responsibility for its role as leaders in the pursuit of excellence. It is

a performance driven, result oriented organization where merit is the only criterion for

reward.

Customer Centricity:

MCB’s customers are at the heart of everything it does. It thrives on the challenge of

understanding their needs and aspirations, both realized and unrealized. It makes every

effort to exceed customer expectations through superior services and solutions.

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2.6: Awards & Accolades:

MCB has won some awards in recent years which are as follow:

2.6.1: 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.

Best Bank Award 2005:

MCB has 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

fifth time in the last six years.


In a continuous winning streak, MCB once again takes pride in being conferred with Euro

Money's prestigious award of excellence, for being the "Best Bank in Pakistan" for the

fourth time in the last five years.

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MCB believes in you. Together we work with quality, integrity and dedication, striving to

achieve collective success by understanding changing trends and assimilating into diverse

cultures. Your trust in our ability and our commitment to deliver has again won us the

Euro Money Award 2003 for the "Best Bank in Pakistan".


Your trust and our commitment is always an award wining combination MCB was

awarded as a Euro Money Award 2001 for the “Best Bank in Pakistan".

Best Domestic Bank Award 2000:

MCB was awarded as a Euro Money Award 2000 for the “Best Domestic Bank in

Pakistan".

2.6.2: Asia Money Awards:

Best Domestic Commercial Bank Award 2005:

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

Best Domestic Commercial Bank Award 2004:

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

Domestic Commercial Bank in Pakistan".

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2.7: Organizational Setup:

PUNJAB

KPK & AZAD KASHMIR

SINDH

BALOCHISTAN

KARACHI

LAHORE

PESHAWAR

PROVINCIAL HEAD QUARTERS

QUETTA

HEAD QUARTER

CIRCLE OFFICES

BRANCH OFFICES

KARACHI

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President

Executive Vice President

Vice President

Assistant vice President

Officers Grade 1, 2, 3

Assistants/Clerks

Peon/Guards

2.8: Management Structure:

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2.9: Management Hierarchy (Branch):

Manager

Operations Manager

Credit

Department

Supervisor

Clearing

Remittance Assistant

Cashier

Teller

Teller

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2.10: Policy Formation:

At MCB Bank all policies are formulated at the Head Office at Karachi and are then

distributed among the vast network of more than 1130 branches of MCB.

One of the policies they implement is that the Commercial Office – East or West, keeps

in view new opportunity for a suitable and profitable location for its new branch. But as

all policies are done by the HO no suitable information could be gathered.

2.11: Managerial Policies:

Managers handle their staff at branch level. The duties assigned to them are to keep the

monthly deposit up to the mark; opening of new accounts has to be either stable or

increasing.

They are responsible for assigning leaves to their staff on yearly basis and even handle

emergency absence. MCB has a rule of working 9 to 5 daily but, internally their staff has

alternate off on Saturdays. The manager has to develop a leave program so as this routine

does not disturbs any customer.

They have to handle the problems of disappointed or angry customers and convince them

about the best service MCB provides.

They receive specific targets which they have o achieve within the given time period

which results in bonuses distributed among the staff and the manager released by the HO.

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2.12: Products & Services:

2.12.1: Personal Banking:

2.12.1.1: Online Services:

MCB provides very excellent online services which are as follow:

2.12.1.1.1: ATM Services:

MCB ATM Smart Card is accepted at over 4,500 ATMs nationwide. MCB ATM Smart

Card enables you to access fast cash, inquire account balance, transfer funds and pay

utility and mobile bills/mobile top-ups from any of over 550 MCB ATMs in the country.

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

Network is the largest and most advanced of its kind in the country, and is part of MCB's

continuing efforts to provide you with convenience that suits your requirements most.

And now the MCB ATM has gone global. MCB's affiliation with Master Card

International brings about added facilities for the MCB traveler abroad with the Cirrus

and Maestro networks.

o MCB ATM Regular Card:

MCB ATM Classic Card allows withdrawal of up to Rs.15,000 per day and

a maximum of 3 withdrawals per day per card.

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o MCB ATM Regular Card:

The MCB ATM Gold Card allows withdrawal up to Rs. 25,000 per day and a

maximum of 6 withdrawals per day per card. The cardholder has to make at

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

ATM Usage within Pakistan:

MCB Bank has the largest ATM Network in the country with over 400 ATMs and over

700 online branches. The MCB ATM Card can be used in over 70 cities in Pakistan.

Whether you want to withdraw cash or ask for a mini-account statement, or even use it as

a debit card at Maestro POS terminals, the MCB ATM Card gives you instant access to

your bank account, anytime, anywhere.

o Additional Convenience:

MCB's revolutionary M-Net Switch enables you to access your MCB

Account from any member bank's ATM Machine.

Mobile Banking helps you use your GSM Phone to access mini-

account statements and balance information from anywhere.

Funds Transfer Facility enables you to transfer funds from one

registered.

ATM Usage outside Pakistan:

Your MCB ATM Card can be used to access your MCB account from anywhere around

the globe. MCB ATM is accepted at 634,700 locations where there are Master Card or

Cirrus ATMs allowing you a daily withdrawal limit of US$ 200 (or equivalent in other

currencies) on availability of funds in your account plus the convenience of shopping

through over 5 million Maestro POS (Point of Sales) terminals globally.

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ATM’s Additional Information:

o Pin Change:

PIN change option is now given so that customers can have added security

with their card. For added security, it is advisable to customers to change

their PIN as soon as they receive the card. It is also advisable to keep on

changing PIN on a regular basis. If customers feel that their PIN has been

disclosed to others, be sure to change the number as soon as possible.

o Pin Forgotten:

Customers are advised to memorize their PIN and are asked to never write

their PIN down on anything in their wallet, or on the card itself. In case if

customers forget their PIN, a new card will have to be made, which can be

done by returning the old card to the MCB online branch and submitting an

application for a new card. The new card can be received by MCB users

within 72 hours to 5 days.

o Damaged Card:

If card breaks in two or gets distorted, please return the card to MCB Online

branch. Customers can receive new MCB ATM card from MCB Online

branch within a few days.

o Card Loss:

In case of card loss, customers are advised to visit MCB Online branch or

call 24-hour MCB Call Centre number at (021) 111-000-622. Customers can

receive MCB ATM card from MCB Online branch within a few days. If

card is not returned from the ATM, contact the branch where the card is lost.

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Customers will have to complete a form and will then receive their card

from MCB Online branch.

o Incorrect Payment:

If by any chance the ATM does not dispense the correct amount of money or

does not dispense the money at all, customers can contact the branch where

the ATM was used or their home branch and inform them immediately.

They will have to complete a form and the amount will then be credited to

their bank account.

o ATM Receipts:

Customers are advised to keep their ATM receipts after every transaction. It

is a good way to guard against fraud and make record-keeping easier.

2.12.1.1.2: MCB Mobile:

At the forefront of technological excellence, MCB has proudly introduced MCB

MOBILE. MCB Mobile is a quick, easy and secure way to top up mobile phone balances,

transfer money, pay bills and do so much more. MCB’s globally recognized and award

nominated mobile payments service allows existing account holders at MCB to conduct

both non financial and financial transactions such as:

o Check account balances

o View Mini Statements (last 6 transactions)

o Transfer funds to any MCB account

o Pay Utility Bill

o Pay MCB Visa Credit Card Bills

o Recharge MCB Visa Prepaid cards

o Pay mobile post paid bills

o “Top up” prepaid mobile phones

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o Make donations to charities

o Block their ATM Card for the day

Who is Eligible?

o MCB Account Holders

All you need is an active MCB ATM card. Please visit your nearest

MCB ATM and register to enjoy the service.

If you do not have an ATM card, please visit your branch or call us at

111-000-622 to request for one.

Charges:

o Charges:

An annual fee of Rs. 300 + FED is applicable for MCB Mobile

customers.

All customers get a Three (3) Month Free trial period from date of

activation.

does not charge a transaction fee. All transactions (financial & non

financial) are FREE of cost.

o Transaction Limits:

Overall Daily financial transaction Limit of Rs. 100,000.

Prepaid Mobile Top-up limit of Rs. 10,000 per day.

Number of financial transactions limited to 10 per day.

Credit Card Bill Payment is as per your actual outstanding balance. It

does not fall under the Overall Daily limit.

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2.12.1.1.3: MCB Call Center:

The state of the art MCB call center is the right choice to keep you in step with your ever

hectic schedule by providing you services relating to your account and Smart card at any

point in time.

MCB’s well-abreast and friendly call center team is available 24 x 7, 365 days a year to

ensure that your daily financial obligations are taken care of guaranteeing you a good

night’s sleep.

Services Offered at Call Center:

o General Inquires:

ATM locations

Account opening procedures

MCB Bank charges

All MCB Product related information

CB merchant locations

o Financial Services:

Account Balance inquiry

Funds transfer request

Debit card Transactions details

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Last five transactions details

All credit card related requests

24 Hour ATM card blocking

Bill Payments (PTCL, SSGC, SNGPL, KESC, HESCO, IESCO,

Mobilink, UFONE, Zong, TELENOR) Purchase Vouchers

(Mobilink, Ufone, Zong, Warid Telenor).

o Non Financial Services:

Credit Card Address Change request

Virtual Banking activation

24 Hour complaint registration

Mobile Banking activation

2.12.1.1.4: Bills Payment:

MCB easy bill pay offers unmatched convenience to pay your utility and mobile phone

bills or re-charge your prepaid mobile phone accounts anywhere, anytime with security

and peace of mind.

MCB is the only bank that offers you 3 convenient options of making bill payments to

PTCL, SSGC, SNGPL, KESC, Mobilink, IESCO, HESCO, and Ufone. So, save your

precious time by avoiding long queues and pay your bills through MCB Easy Bill Pay.

MCB Smart Card or MCB ATM Card Holder can easily pay their bills or re-charge their

prepaid mobile phone account through the following convenient options of MCB easy bill

pay.

o Features:

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

Make either full or partial payments. Full payment is required for

PTCL only.

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Recharge your pre-paid account for Ufone, Mobilink and Zong as per

their fixed slabs.

Pay as a registered or non-registered user. Registration will help you

avoid the time delay in entering details each time you carry out a

transaction.

2.12.1.1.4: Virtual Banking:

MCB Virtual Internet Banking offers you the convenience to manage and control your

banking and finances; when you want and where you want. MCB’s Virtual Internet

Banking facility is:

o Simple

o Secure

o Free of cost.

MCB Virtual Internet Banking allows you to access banking services, 24 hours a day, 7

days a week and throughout the year.

o Offers:

Detailed Account Summary of all listed accounts.

Mini-statements of each of the listed accounts showing recent

transaction history for those account(s).

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

period specified.

Immediate or Scheduled Transfer of Funds between your own

accounts, as well as to third-party accounts setup as beneficiaries,

maintaining accounts with MCB.

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

Payment of utility bills for registered Utility Companies.

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Immediate or Scheduled Bill Payments. Scheduling of ‘One-Time’ as

well as ‘Recurring’ bill payments. Option for ‘Full’ or ‘Partial’

payment based on the payment conditions specified by a particular

Utility Company.

Bulk Salary Transfer for Corporate Customers, to facilitate them in

paying salary to the corporate employees, who maintain accounts

with MCB.

Cheque Book Request for any of your listed accounts.

Payment/Transfer Alerts for reminding, in advance, prior to the

processing of specified payments and transfers.

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

Mobile Recharge facility for all Telco’s!

2.12.1.2: Accounts:

MCB offers various types of accounts which are as follow:

2.12.1.2.1: Basic Account:

It’s as simple as ABC to start banking with MCB. Looks after your money the simple

way, with MCB Basic Banking Account.

o Key Points:

Open a Basic Banking Account with as little as Rs.1000/- only.

No minimum balance maintenance requirement.

No monthly account maintenance charges.

Two free deposits per month (including cash and clearing).

Two free withdrawals per month (including cash and clearing).

Unlimited free withdrawal transactions through MCB's ATMs.

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Unlimited transactions through Virtual Banking.

Use your MCB Smartcard to shop at thousands of merchant outlets

across Pakistan.

2.12.1.2.2: Current Account:

Discover the quick, easy, and convenient way to manage and use your money with an

MCB Current Account.

o Key Points:

Low minimum balance requirements.

Unlimited cash deposit and withdrawal facility at hundreds of

branches nationwide.

Use your MCB Smartcard to shop at thousands of merchants across

Pakistan.

Lockers and other affordable transactional facilities.

2.12.1.2.3: Savings Account:

MCB Savings Account offers you one of the most suitable ways to manage your hard-

earned money. So start saving and earning profit today.

o Key Points:

Low monthly average balance requirements.

Profit paid into your account every six months.

Unlimited cash deposit and withdrawal facility at hundreds of


Use your MCB Smartcard to shop at thousands of merchants across

Pakistan.

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Locker facility at economical rates.

2.12.1.2.4: Foreign Currency:

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

your Foreign Currency Investment.

o Key Points:

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

Open for as little as US$ 500 or equivalent.

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.

2.12.1.2.5: Smart Dollar Account:

MCB Smart Dollar Account is a sensible way to maintain or grow your US Dollar deposit

across USD Current, Savings or Term Deposits.

o Key Points:

USD Current, Savings and Term Deposit accounts.

Competitive profit rates.

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Attractive incentives being offered, if you maintain the minimum

amount of USD 10,000/- or above.

2.11.1.2.6: Saving 365 Gold:

MCB Savings 365 Gold Account offers you a wide range of attractive profit rates. The

higher you save, the higher you go.

o Key Points:

The higher your balance, the higher your rate.

Profit calculated on daily basis.

Profit paid into your account every month.

Open your account with Rs. 500,000/- only.

Cash deposit and withdrawal facility at hundreds of branches

nationwide.

2.12.1.2.7: Special Rupee Term:

With a wide range of choices and tenors, you can open one or more term deposit accounts

that best suit your current or long term needs.

o Key Points:

Highly attractive profit rates.

Multiple tenors from one month onwards.

Option of premature encashment.

Option for ATM debit card to access profit earned.

Option for automatic renewal of term deposits.

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2.12.1.2.8: Business Account:

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

discounted transaction fees, and more.

o Key Points:

Higher the balance, the higher the number of free transactions.*

Open a Business Account with Rs.50,000 only.

Unlimited free cash deposit and withdrawal facility at hundreds of

branches nationwide. Option for automatic

2.12.1.2.9: Saving XTRA Account:

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

discounted transaction fees, and more.

o Key Points:

Higher the balance, the higher the number of free transactions.

Open a Business Account with Rs.50,000 only.

Unlimited free cash deposit and withdrawal facility at hundreds of


o Free Services:

Demand Drafts/Pay Orders.

Cancellation for Demand Drafts/Pay Orders.

Cheque Book.

International ATM Gold Card.

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2.12.1.2.10: Current Life Account:

MCB Current Life gives you the peace of mind of comprehensive life insurance in a

current account and fits right into your lifestyle.

o Key Points:

Open a Current Life Account with just Rs.1,000.

Free comprehensive life insurance coverage.

No joining fees on Debit/ATM Card.

50% discount of Debit Card Annual Fee at the time of renewal.

Low monthly average balance requirement.

Unlimited free cash deposits/withdrawals across hundreds of

branches

2.12.1.3: Loans:

MCB offers personal loan for car purchasing.

2.12.1.3.1: CAR4u:

Life in the fast lane can be really slow without a car. MCB Car 4 U makes it a breeze to

finance/lease your new/used car. So get up to speed, because “Kahin Na Kahin Tau

Hai…1 Car 4 You".

o Flexible:

Option for financing or leasing

Financing tenures from 1 to 7 years

Option for new as well as used cars

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Options for local as well as imported cars

Financing up to Rs. 25 lacs

Option for early payment

Option for replacement loan

o Affordable:

Lower mark up rates

Lower insurance rates

Minimum 20% down payments

o Speed:

Fast and hassle free processing of application

Priority delivery on different vehicles

o Special Benefits:

No processing fee if the case is declined

Pay your down payment after your loan is approved

o Availability:

Currently available in the following cities:

Karachi, Lahore, Faisalabad, Rawalpindi, Islamabad, Sialkot,

Gujranwala, Hyderabad.

2.12.1.3.2: MCB Pyara Ghar:

MCB offers three home financing options for Pyara Ghar. MCB Pyara Ghar provides

flexible and competitive home financing facility with options of home purchase,

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construction and renovation. With the MCB Pyara Ghar Scheme customers can obtain the

financing to purchase a house/apartment, construct own house or renovate existing house

immediately. Nothing could be more convenient than owning a house and paying easy

installments that takes a step closer to becoming the owner of their house. It is better than

paying a monthly house rent which takes no where other than increasing your expenses.

Pyara Ghar is definitely the most feasible and direct route to a dream house.

MCB gives its customers their dream home at the best possible mark-up rates. They can

choose either one of their two mark-up rate options- fixed or variable. They also have an

option to club spouse’s income to avail higher financing amount.

Early repayment option is tailor-made to allow making partial prepayments at dates that

suit Pyara Ghar Clients.

o Benefits:

Option to Purchase, Renovate or Construct.

Competitive financing rates.

Financing tenure from 2-20 years.

Financing up to Rs. 20 Million.

BTF-hassle free process to transfer your facility from another

institution.

Pre-approved for Auto Finance.

Service at your doorstep.

o Eligibility:

Applicant(s) must be Pakistani National.

Salaried, Self employed businessmen (SEB) and Self employed

professionals (SEP) are eligible for application.

Satisfactory verifications.

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Satisfactory bureau checks.

Satisfactory income estimation, property valuation and legal opinion.

o Processing:

Customers are advised to carefully read and fill out the MCB Pyara Ghar

application and the Letter of Understanding (LOU), which will be provided at

their doorstep by MCB sales staff. Submit it along with the related documents.

On the approval of application, customers will get a Sanction letter.

In case of Home Purchase the property will be transferred through relevant

Housing Authority / Registrar office / Society in your presence along with

Bank’s authorized officer, lawyer and seller of the property. Whereas for others,

MCB will disburse the sanctioned amount in your presence and bank’s

authorized officer.

2.12.1.4: Cards:

MCB offers Smartcard, MCB VISA Platinum Card and MCB VISA Card.

2.12.1.4.1: Smart Card:

MCB now brings you MCB Smartcard, a secure and convenient instrument of payment

with unmatched functionalities. It provides 24-hour direct access to your bank account.

The convenience and flexibility of MCB Smartcard will help you live a smarter life. It

not only helps you manage your expenses, but also eliminates undue interest on your

day to day credit card transactions. Your balance is always within your reach and you

spend accordingly.

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o Features:

Purchasing

Bill Payment

Funds Transfer

24 Hours Cash Withdrawals

Balance Inquiry

Mini Statement

MCB Mobile Banking

2.12.1.4.2: MCB Visa Platinum Credit Card:

MCB Visa Platinum Credit Card - a world full of surprises waiting to be explored. With

our perfect combination of premier features and superior service, the enclosed rewards

and recognition offer you the prestige and luxury of a lifestyle you can uniquely call your

own.

MCB Visa Platinum Credit Card is the most reliable, competitive and gratifying Credit

Card offering a tantalizing mix of luxurious shopping, dining and traveling opportunities

which will undoubtedly be a treat for you and your family.

It is accepted at nearly 29 million locations in more than 150 countries around the globe

and over 30,000 establishments in Pakistan. So make the most of a powerful card and

expect what you deserve, a liberating experience that redefines the way you spend.

Enjoy the influence of your card as you become platinum.

o Features:

Access to over 600 airport VIP lounges in over 100 countries and

over 300 cities – so you can treat yourself like a VIP no matter where

you travel, or which airline and class you fly.

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Peace and quiet – relax and unwind away from the chaos of the

airport, and enjoy a range of complimentary refreshments.

Full business facilities – most lounges offer phone, fax, email and

internet facilities, some even have conference rooms.

Excellent value for money – three membership plans designed to

offer you VIP airport lounge access at competitive rates no matter

how frequently you travel.

2.12.1.4.3: MCB Visa Card:

MCB Visa is not just another card in your wallet. It not only provides the conventional

credit card services in a manner that is superior in comparison, but goes an extra mile.

o Features:

Makes MCB Visa the most affordable credit card in your wallet.

MCB VISA offers you a wide range of products that will cater to

your diversified taste perfectly.

Buy now and pay later in easy and affordable monthly installments!

Saving you from the hassle of making multiple payments on your

various credit cards.

You need cash and want to pay back in installments. Just dial 111-

000-MCB (622).

Life is too precious to be spoilt by unforeseen events and mishaps.

Hard Cash

Now experience peace of mind of having a credit card free from

fraud or misuse!

CB Cards SMS Facility.

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2.12.1.5: Traveler's Cheque:

MCB offers Rupee Traveler's Cheque.

2.12.1.5.1: Rupee Traveler's Cheque:

MCB Bank has been at the forefront of providing it’s customers with new and innovative

products and financial instruments that are safe, secure and profitable.

MCB Rupee Traveler's Cheques were first introduced in 1993 as safe cash for traveling

and travel related purposes. The product has been extremely popular and is preferred over

cash by customers while traveling and in all walks of life.

o Features:

Easily available: Buy them from any of the designated branches in

Pakistan.

As good as cash: MCB RTCs are safe to carry and can be used

without any inconvenience specially by Travelers.

Easily encased: At any designated MCB branch.

Easily refunded: in case of loss or theft, you can get the full amount

back.

Exclusive security features: Due to special printing and safety

precautions, Cheques cannot be duplicated.

Denominations: Available in denominations of Rs 1000, Rs 5000, Rs

10,000.

Validity: 10 years from the date of purchase.

Customer Service Facility: (021) 111-000-123.

More than 900 MCB Authorized branches are selling and purchasing

Cheques all over Pakistan.

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2.12.1.6: Remittance:

MCB also provides remittance facility in Pakistan.

2.12.1.6.1: Home Remittance:

o MCB brings FAST and FREE Home Remittance service to beneficiaries in

Pakistan. With our large network of over 1100 branches, MCB can deliver

your remittances to every part of Pakistan.

o MCB Pak Cash enables you, the Non Resident Pakistanis, to send money to

your loved ones in Pakistan quickly, easily and conveniently. MCB Home

Remittance Service is FREE and available at all MCB correspondents

(Banks/ Money Transfer Cos) Worldwide. For details please see our list

available at Remitter Locator.

o MCB Remittance Service offers you two ways of sending money to your

loved ones:

MCB Fast Transfer (Account to Account Transfer):

Same day credit to MCB Account holders

Fast, prompt and hassle free funds transfer

Free of charge

SMS alert for beneficiary (subject to provision of mobile

number)

For Non MCB Account holders, funds are transferred online

or via bank draft to any other bank

MCB Pak Cash:

Receiver's account in MCB is not required

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Instant cash payment of up to Rs. 500,000/- over the counter

can be made to the beneficiary at any MCB branch

Fast, dependable and hassle-free funds transfer

SMS alert for beneficiary (subject to provision of mobile

number)

2.12.1.6.2: Money Gram:

Money Gram is a global leader in worldwide money transfer services, working closely

with specially chosen agents in 176,000 locations across 190 countries and territories,

offering a customer-to-customer money transfer service which is fast, convenient and

trusted. They provide a secure way to send and receive money to and from your loved

ones worldwide – and make sure that your money gets to where it’s needed quickly.

o Features:

Any one can receive money through 100 designated MCB branches

displaying the Money Gram logo across Pakistan.

Receive Money in as little as 10-15 Minutes.

No Bank Account needed.

Fast, Secure and Easy.

Compliant with State Bank of Pakistan regulations.

2.12.1.6.3: MCB Motherland Account:

o Features:

Overseas Pakistanis can open PKR accounts whilst abroad.

Free first cheque book + ATM card.

Free PO/DD and Online Transfers.

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Account access via Internet Banking, Mobile Banking and Call

Centre.

2.12.1.7: Bancassurance:

The Bank Insurance Model ('BIM'), also sometimes known as 'Bancassurance', is the term

used to describe the partnership or relationship between a bank and an insurance company

whereby the insurance company uses the bank sales channel in order to sell insurance

products. MCB also provide bancassurance services.

2.12.1.7.1: FlexiLife:

Your family is your joy, your pride and your world. And you strive to give them a life full

of cheerful and happy moments. However, life has its uncertainties and risks. For this,

you would require an investment plan that is flexible enough to keep up with the

changing circumstances of life. Flexilife is a unit-linked plan to help you secure your

family’s future with a wide range of benefits and options to meet a variety of different

financial needs and make your ‘Har Pal Mehfooz’.

o Benefits:

Family Income Benefit

Critical Illness Benefit

Permanent Total Disability

Partial Withdrawal

Complete Surrender

Protection Benefit

Flexibility of Choice

Inflation Protection

Additional Top-Ups (Ad-hoc Feature)

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o Free Look Period:

The plan offers you a free-look period of 14 days, in which you can cancel your

policy by contacting NJI Life, and have your premium refunded. However, as

per law, NJI Life reserves the right to deduct the expenses incurred on medical

examination(s) of the Life Assured in connection with the issuance of this

Policy.

2.12.1.7.2: Life Partner:

Some things in life are too important to be left unplanned. Whether it is your life

companion or your business partner, you have responsibilities to ensure the financial

security of your dependants and business. Life Partner is a plan that will help you provide

financial protection for both partners under a single plan. We can help you keep your

loved ones or your business financially secure, given you may not always be there to

help. Let us be there to make your ‘Har Pal Mehfooz’.

o Benefits:

Accidental Death

Accidental Death or Dismemberment

Waiver of Premium

Hospitalization Cash Reimbursement

Partial Withdrawal

Complete Surrender

Protection Benefit



Additional Top-Ups (Ad-hoc Feature)

Free-Look Period

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2.12.1.7.3: EDU CARE:

You may not imagine a future for your children without college, but before you prepare

them for that, you may have to prepare yourself - financially. Your child’s college

education could be one of the largest expenditures you ever make. EduCare is a long term

saving plan which provides disciplined approach to save for your child's higher education.

It will help you to accumulate a lump sum fund over a period, which can be used to pay

for your child's higher education, making your ‘Har Pal Mehfooz’.

o Benefits:

“Education Continuation” Benefit

“Choices of Life ” Benefit

“Education Support” Benefit

Accidental Death and Disability Benefit

Fund Acceleration Premium


Partial Withdrawal

Complete Surrender

Plan Maturity Benefit

Income Benefit

Waiver of Premium

Additional Term Assurance

Free-Look Period

2.12.1.7.4: Dream Wedding:

Nowadays, a DreamWedding for your children requires a substantial investment. MCB

DreamWedding helps you accumulate a lump sum fund over a period for your children’s

marriage expenses, in a disciplined manner. The plan provides high-value savings,

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guaranteed level of life assurance protection and flexible options to customize the benefits

according to your needs making your ‘Har Pal Mehfooz’.

o Benefits:

“Marriage Continuation” Benefit

“Choice of life” Benefit

“Engagement Support” Benefit

Accidental Death and Disability Benefit

Fund Acceleration Premium (Ad-hoc Feature)


Access to Your Savings

Partial Withdrawal

Complete Surrender

Plan Maturity Benefit

Income Benefit

Waiver of Premium

Additional Term Assurance

Free-Look Period

2.12.1.7.5: Capital Sure:

A risk-free savings plan, if you prefer to play it safe with your investments, for a secure

future. With this plan your premiums are guaranteed, as a lump sum amount, to be paid at

the end of your policy term. It is designed to give you complete security and peace of

mind making your ‘Har Pal Mehfooz’.

o Benefits:

Partial Withdrawal

Guaranteed Maturity

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Protection Benefit

Complete Surrender

Loan

Premium Escalation

Level Term Insurance Rider (LTR)

Accident Care Benefit (ACB)

Family Protection Rider (FPR)

Free-Look Period

2.12.1.7.6: Retire Easy:

RetireEasy has been designed to give you a respectable and secure retirement life. You

can choose to receive a life long monthly income after retirement or a lump sum amount

to invest on your own. Continue to support yourself and your family while enjoying the

pleasure of a secure retirement, making your ‘Har Pal Mehfooz’.

o Benefits:

Guaranteed Loyalty Bonus

Guaranteed Benefit In case of death

Partial Withdrawal

Complete Surrender

2.12.1.7.7: Income Max:

Gain maximum returns on your savings, with a great mix of investment choices. You can

make limited withdrawals at any time for short or mid-term purchases e.g. buying a house

and enjoy flexibility to meet any other unexpected financial requirement. At the end of

policy term you receive your accumulated investments as a lump sum amount, so you can

make your ‘Har Pal Mehfooz’.

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o Benefits:


Guaranteed Loyalty Bonus

Account Value Acceleration Premiums

Guaranteed Death Benefit

Partial Withdrawal

Complete Surrender

Maturity Benefit

Premium Escalation

Additional Benefits:



Accident Care Benefit (ACB)

Free-Look Period

2.12.1.7.8: Future Assure:

FutureAssure is a risk-free savings plan that gives you capital protection and control over

returns with flexibility and a peace of mind that your family will be secure in case of any

unfortunate events. The policy will cover risks for your loved ones, secure savings for

your children’s higher education or marriage expenses and ensure a healthy future. With

FutureAssure, be secured and ‘Har Pal Mehfooz’.

o Benefits:

Guaranteed Maturity

Protection benefit

Partial Withdrawal

Complete Surrender

Loan

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Inflation protection

Continuation Bonus



Accidental Death and Accidental Disability Benefit (AD&ADB)

Monthly Income Benefit

Free-Look Period

2.12.1.7.9: Protection Plan:

MCB Bancassurance brings you broad access to finding financial solutions even if you

don’t have formal banking relationships. All you need is your mobile phone and you can

get yourself a complete comprehensive protection plan and insurance coverage with just a

few easy steps. You don’t even have to get any medical endorsements to get this

protection plan. Register to MCB Mobile Banking and get yourself instantly insured in a

quick and easy way at a very nominal cost with the MCB Protection Plan and get your

‘Har Pal Mehfooz’.

o Benefits:

Natural Death Benefit

Payment of lump sum amount (Sum Assured) to your family

in the event of death within the policy term.

Accidental Death Benefit

If the insured person dies due to accident, a sum, double the

Natural death benefit will be paid to the beneficiary.

Customer has the option to take 50% of the accidental death

benefit as lump sum immediately upon Accidental death and

remaining 50% can be taken in the form of 120 equal

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monthly installments of 1 % of the Accidental death Sum

Assured.

Accidental Disability Benefit

The Natural death benefit will be paid even if the customer

becomes permanently disabled due to accidental causes.

Customer has the option to take Accidental Disability Benefit

as in the form of 120 equal monthly installments of 1% of the

basic death benefit.

2.12.2: Corporate Banking:

2.12.2.1: Loans

MCB provides business loan as term loans and working capital loans.

2.11.2.1.1: Term Loans:

You as an individual can gain and benefit the most through MCB Consumer Banking. In

MCB you get friendly, efficient and attentive personalized banking services - a unique

banking relationship experienced by each MCB client.

2.12.2.2.2: Working Capital Loans:

Based on the customer's specific needs, the Corporate Bank offers a number of different

working capital financing facilities including Running Finance, Cash Finance, Export

Refinance, Pre-shipment and Post- shipment etc. Tailor- made solutions are developed

keeping in view the unique requirements of your business.

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2.12.2.2: Financing

MCB also offers its services as trade financer.

2.12.2.2.1: Trade Financing

MCB offers trade finance services that comprise of an entire range of import and export

activities including issuing Letters of Credit (L/Cs), purchasing export documents,

providing guarantees and other support services.

o Trade Products:

Import Services

Below is a list of few services MCB provides to help any business

having importing needs:

Import Documentary Credits (LCs) both Inland and Foreign

o Sight

o Usance

o Mix Payment

Back to back Documentary Credits (LCs)

Standby Documentary Credits (LCs)

Documentary Collections

Shipping Guarantees

Import Contract Registration

Open Account Transactions

Export Services

MCB can help your export business through any one or combination of

following products being offered through wide network of our branches

and Trade Services Centers (TSCs).

Documentary Credit (LC) Advising

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Documentary Bills Drawn Against LCs

Standby Documentary Credits (LCs)

Documentary Collections

Documentary Credit (LC) Confirmation

Trade & Credit Information

Trade Financing

The range of financing options for the trade business is as follows:

Bill Purchase /Negotiation

Foreign Currency Bill Discounting

Foreign Currency Export Finance

Finance Against Packing Credit

Finance Against Foreign Bills

SBP Export Refinance (Part-1 and Part-11)

Finance Against Imported Merchandise

Finance Against Trust Receipt

Foreign Currency Import Finance

2.12.2.3: Investment Banking

Our Investment Banking arm has played a dynamic role in the local market space in

Pakistan through innovative structured solutions for its customers and is regarded as one

of the leading investment banking house in the country. Our IB team has strong

origination and distribution capabilities and a successful track record for efficient

execution. In 2007, a USD 53 million listed bond issue led by MCB was awarded The

Banker's Deal of the Year for Pakistan, by Financial Times, UK. During the last three

years, we have led or participated in deals over USD 5bn, of which 65% are in the energy

sector, 14% in fertilizer and chemicals, 11% in telecom and 10% in other industries.

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Our goal is to provide best financial solutions to our client helping them achieving their

objectives and support economic growth of the Country.

o Products:

Project & Structured Finance

Involves financing complex projects, usually in an SPV structure, where

the loan is tightly structured around the cash flows, risks are allocated

amongst various stakeholders, and there is limited or no recourse to the

sponsors.

Syndicated Loans & Debts Capital Market

Involves structuring/advisory arrangement, underwriting and placement

services for significant financing requirements by large and medium

sized corporate and institutional clients. Our wide array of activities also

includes financial restructuring of corporate, issuance of commercial

paper, placement of syndicated loans and bonds.

Hybrid Instruments

Structuring and placement of a category of debt that has some

characteristics of equity such as being unsecured or subordinated or with

a potential equity upside.

Equity Capital Raising

Services include due diligence and valuation, private placements,

underwriting and management of public offers.

Advisory Services

Varied services such as financial advisory, commercial structuring

support and M&A advisory.

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Facility Administration

Management of creditor interests in syndicated transactions in capacities

such as facility agent, security trustee, project monitoring bank, book-

runner etc.

Commercial Banking

Complementary products and services such as revolving lines of credit,

trade services and cash management that may be bundled with our

Investment Banking Products.

2.12.3: Islamic Banking:

Islamic Banking Division was formed with effect from 1st January 2003, which in a short

span of time, has developed sufficient expertise, necessary infrastructure, information

technology, and manpower to run Islamic Banking Operations and offer Islamic Banking

Products.

2.12.3.1: Mission Statement:

To play a dynamic role in promotion of Islamic Banking and win customers trust by

providing sharia compliant financial services.

2.12.3.2: Vision Statement:

To become a leader among Islamic Banks of the country in the coming years capturing

major share of the domestic Islamic financial market.

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2.12.3.3: Deposit Schemes

If you are looking for a deposit opportunity where you can purse your funds and reap

HALAL returns, we offer following products:

o Al Makhraj Saving Account:

The minimum deposit requirement for Al-Makhraj Saving Account is only Rs.

5,000 and profits can be earned semi annually.

o IANAT Account:

If you are looking for a chequing account that gives you the ease of doing

unrestricted number of transactions, we offer Al-Makhraj Ianat Account. Ianat

Account may be opened with a minimum of only Rs. 10,000. With all the

features and facilities that this product offers, it is highly recommended for

management of business funds.

o Al Makhraj Term Deposit:

If you are looking for a chequing account that gives you the ease of doing

unrestricted.

2.12.3.4: Funds Based Facilities:

MCB offers 3 broad Islamic fund based facilities:

o Ijarah:

MCB’s Islamic Ijarah, analogous to the English term 'leasing’, is based on the

‘Ijarah wa Iqtina’ concept which means the sale of the asset to the lessee

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(customer) after the Ijarah has matured. Under this scheme, MCB will be the

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

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

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

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

security deposit amount, hence the term ‘Wa Iqtina’. MCB currently offers 2

types Ijarah Products:

Car Ijarah

Equipment Ijarah

o Murabahah:

It is a contract between a buyer and a seller under which the later first

purchases the goods at the request of the former i.e., customer and then sells it

to same customer after adding profit.

o Diminishing Musharika Equipment:

It is a contract through which the bank and its client participate in the joint

ownership of a property. The share of the Bank is further divided into a

number of units and it is agreed that the client will purchase the bank’s share

periodically, thus increasing his own share until all the units of the bank are

purchased by him so as to make the client the sole owner of the property.

2.12.3.5: Upcoming Products:

o Diminishing Musharika Housing

o Guarantee

o Istisna cum Murabahah

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o Istisna Post Shipment

2.12.4: Agriculture Division:

MCB also offers agriculture products which are as follow:

2.12.4.1: Shadabi Plan:

Shadabi Plan caters the financing needs for production activities on the farm which

mainly include seed, pesticides and fertilizers along with provisions for miscellaneous

expenses like payment of electricity & diesel bills of tube wells, maintenance expenses

for tractors and the like items as per list of Eligible items.

o Features:

Financing requirement is ascertained for a period of three years

Limit is sanctioned for three years on revolving basis with one time

documentation subject to annual clean up along with markup.

Mark up is charged on the limit amount utilized by the farmer

There is no prepayment penalty

There is no hidden cost involved

Forms & documents are provided free of cost.

2.12.4.2: Khushali Scheme:

Under Khushali Scheme loans/finances are allowed for farm/non farm credits which

include fixed investments/working capital requirements. Amount of finances sanctioned

depend upon the credit requirement and collateral.

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Financing for land leveling/development, heavy equipments, agriculture machinery,

vehicles/transport for agri purpose are covered under this scheme. There may be other

development projects proposed by the farmers falling with in the ambit of agri financing,

which can be considered under this scheme.

o Features:

Short, medium and long term financing facilities are extended

The repayment is scheduled on the basis of farmers’ convenience on

annual/ biannual basis.

2.12.4.3: Tractor Financing:

To boost up the mechanized farming in the country, Tractor Finance Scheme is

introduced to offer specialized services to farmers. Under this scheme, there is no

requirement of minimum land holding because of multipurpose use of tractor for

agriculture cum commercial. However, the repayment capacity and potential use of

tractor will be evaluated at the time of loan processing.

o Features:

All types & makes of tractors either locally manufactured or

imported can be financed

Tractor is financed for a period of five years or earlier as per farmers

choice

Installment is on biannual basis.

Comprehensive insurance is required to be intact during the tenure of

finance

Tractor will be jointly registered in the name of the borrower and the

bank.

INTERNSHIP REPORT


Tractor will remain hypothecated in banks favor till the loan is repaid

in full

Security/collateral will be required as per bank policy.

2.12.4.4: Aabiari Scheme:

Under the Aabiari scheme, financing facilities for tube well, other wells, irrigation

systems of all types including sprinklers are covered. The purpose is to facilitate the

farmers in overcoming the shortage of water for cultivation/plantation since water is

essential requirement for crops.

o Features:

The requirements may differ from farmer to farmer.

Evaluation/assessment of finance will be made on case to case basis.

The finance will be for a period to be determined on the basis of

assessment

Repayment of the loan will be on biannual basis or linked with crop

cycle

Three quotations will be required in case of machinery to be

installed.

2.12.4.5: Growers Finance:

Grower Finance is a unique way of financing registered/(bonafide) growers/farmers of

sugarcane, cotton and rice(mills). The special characteristic is that the financing facilities

are extended to farmers against the Mill/Factory guarantee. Fixed/floating charge may be

created on the Mill's assets and the loan is disbursed directly to the growers. This finance

is short term in nature but the tenure may extend to eighteen months in case of growers of

sugarcane.

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o Features:

The grower should have his account opened in MCB Branch

The BOD of the Mill should pass a resolution for financing request

addressed to MCB

The charge over the assets of the company is created

KYC requirements are complete

Growers crop is hypothecated

Repayment of the loan is linked with crop harvesting

2.12.4.6: Dairy & Meat Plan:

The plan is aimed at promoting the Dairy sector & meat production in the country. The

farmers are extended financing facilities to purchase dairy animals for milk and for the

establishment of animal fattening stations to increase meat production on commercial

line, thus enabling the farmer to create more income.

o Features:

The amount of loan is assessed on the basis of the purpose for which

loan is required

The repayment of loan may be scheduled in installments on monthly,

quarterly and half yearly basis

The cash flows to be routed through MCB account

The animals are comprehensively insured till the repayment of the

loan

The animals financed are hypothecated in banks' favor

Nestlé’s identified borrowers are also accommodated under this plan

Farmers supplying milk to Milk processing units are covered under

this plan.

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2.12.4.7: Muraghbani Scheme:

Muraghbani Scheme covers extensively all requirements of the poultry industry with

focus on facilitating the farmers. We offer financing facilities of all types of activities in

the value chain starting from establishment of poultry farms infrastructure to all

requirements in the process till the final out put including marketing of the same by the

farmers. Value addition process by the farmers for poultry processing is also covered

under the scheme.

o Features:

All farmers engaged in non farm activity of poultry financing are

encouraged to avail financing facilities.

The loan requirement & tenure of finance depends upon the purpose

and life of the project

Comprehensive insurance has to be arranged by the borrower where

possible

The intending borrower should be able to offer adequate security

acceptable to the bank along with Hypothecation of stock.

2.12.4.8: Baghbani Scheme:

The scheme aims at facilitating the farmers engaged in horticulture by extending credit

facilities covering the entire range of related activities. The proposals are assessed

keeping in view the market potential and repayment capacity based on the cash flows of

the activity. The farmers are extended all type of credit facilities required to produce

fruits & vegetables of better quality. The repayment of the loan is as per farmer

convenience or linked to crop cycle and timings of cash flows. Facilities like running

finance, working capital requirements, infrastructure development, machinery &

INTERNSHIP REPORT


equipment, irrigation etc are all covered under this scheme. Progressive farmers are

especially encouraged.

o Features:

The farmer/applicant should be having an account with our branch.

The purpose/project should be viable.

Should meet all documentation formalities.

Should be experienced to handle the project.


and life of the project.


acceptable to the bank.


possible.

2.12.4.9: Mahigeri Scheme:

Mahigeri Scheme caters to the credit needs of fish farmers covering entire range of

activities including marketing of their produce. The loans are of short, medium and long

term depending upon the purpose. Financing for value addition process by the fish

farmers is also covered under the scheme.

o Features:

All farmers/Fishermen engaged in non farm activity related to

fisheries are encouraged to avail financing facilities


and life of the project


acceptable to the bank

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possible

2.12.5: Other Services:

MCB also some other services to attract the customers:

2.12.5.1: Locker:

Basically it is a facility which is provided by the bank to its customers in order to secure

there money gold important property documents etc. before this locker concept people are

very much worried about the lose of there money, gold and important documents so now

the people are very much relax because now they use this facility quite frequently.

2.12.5.2: Discounting Bill of Exchange:

The bank utilizes their surplus funds in another important way. They discount the bills of

exchange at their market worth, i.e., the pay to the holders of the bill an amount equal

to their face value after deducting interest at the current market rate for the period

the bill has to mature. The bills of exchange are a very liquid asset for a bank to

hold. These bills are usually drawn for three months and are used for financing internal as

well as external trade.

2.12.5.3: Collection of Bill of Exchange:

The bank provides a very useful service in the collection of dividends or interest earned

on stocks and shares held by his customers. The customer is simply to inform the issuer

of the securities that the interest on the securities is to be credited to his account in the

bank.

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2.12.5.4: Sale Purchase of Securities:

MCB is authorized by the customer, purchase or sale securities on his behalf and thus

adds other benefits to his portfolio.

2.12.5.5: Collection of Dividends:

The bank provides a very useful service in the collection of dividends or interest earned

on stocks and shares held by his customers. The customer is simply to inform the issuer

of the securities that the interest on the securities is to be credited to his account in the

bank.

2.12.5.6: Transfer of Funds:

MCB also transfer funds of the customers from one bank to another bank. If the transfer

is at one station, they don’t charge any commission and even if they charge, they charge

on reduce rate.

DEPARTMENTS

69

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UNIVERSITY OF PUNJAB, GUJRANWALA CAMPUS

70

3.1: Departments at Main Office:

The head office is operationally in charge of central affairs including the delegation of

powers and authority to the regional head quarters throughout the country. All the senior

management team works in the Head office of MCB bank is situated in Karachi. And it’s

all branches, regional offices, corporate branches and overseas branches and online

branches and representative offices work according to rules and regulation set by the head

office.

Following are the departments that are working at head office:

Administration

Credit Management

Investment Banking

Human Resource

Information Technology

Corporate Planning & Budgeting

Finance & Treasury

International Division

Inspection & Audit

Law Division

Marketing & Development

Trustee Division

3.2: Departments at Branch:

There are three main departments in any branch of MCB

General Banking

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71

Foreign Exchange

Advance/Credit

3.2.1: General Banking:

General banking deals with following services:

3.2.1.1: Cash Department:

The following books are maintained in the Cash Department:

o Receiving Cash Book

o Paying Cash Book

o Token Book

o Scroll Book

o Cash Balance Book

When cash is received in counter, it is entered in the Scroll Book and Receiving Cashier

Book. At the close of the day, these are balanced with each other.

When the cheque or any negotiable instrument is presented at counter for payment, it is

entered in the token book and token is issued to the customer. The token clerk and the

Cashier make entries in the paying book and payment is made to payee. At the close of

day, the Token Book and Paying Cashier Book are balanced.

The consolidated figure of receipt and payment of cash is entered in the cash balance

book and drawn closing balance of cash.

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72

3.2.1.2: Deposit Department:

Bank deals in money and they are merely mobilizing funds within the economy. They

borrow from one person and lend to another, the difference between the rate of borrowing

lending forms their spread or gross profit. Therefore we can rightly state that deposits are

the blood of the bank which causes the body of an institution to get to work. These

deposits are liability of the bank so from point of view of bank we can refer to them as

liabilities.

The total deposits of MCB are growing since its inauguration but after privatization there

is a sharp incline in over all deposits of the bank. The increase in deposits is also a cause

of increase on total number of accounts; bank has progressed in both aspects.

o Functions of Deposit Department:

Account Opening:

Account opening is an agreement in which customer offers his funds and

bank accepts these funds, therefore the nature of relation between a

banker and customer is of a contractual one and all the conditions

applicable to this contract act are also applicable.

Profit Payment & Calculation:

Profit payment & calculation is done in accordance with the rules of

each type of deposit scheme-by the deposit department. The products for

each deposit scheme are calculated separately and added till the end of 6

month period. Then the sum total of these products is multiplied with the

respective profit rates which are issued by the Head Office at the end of

each half yearly closing. The profit provisions for each type of deposits

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73

are also calculated on monthly basis by the same department in order to

calculate the net profit or loss position of the branch.

Accounting Entries:

Accounting entries are also made in the respective books of account by

this department. However, in small and medium size branches, the

accountant performs the book keeping duties for all kinds of ledgers.

3.2.1.3: Remittance Department:

It is transfer of funds. Funds can be transferred in shape of pay orders, demand draft, mail

telegram and telegraph transfer. Payments of fees of different organizations, fulfillment

of tenders, and collection of funds are the main functions of remittance. Maximum part of

general banking depends on this department.

Issuance of different kinds of remittance:

o Pay Order:

Pay order is the property of person/company that has to take the benefit of the

amount being pay ordered by the concerned person. Pay orders are made for the

payment of fees, tender or issued for the payments of dealings. These are

required for the proof of payments made between the bank and the customer in

the favor of beneficiary. These are noted in printed block letters and yearly

serial numbers are issued from computerized system.

o Demand Draft:

Demand drafts are made for the beneficiary for payments, funds etc, these are

made for outstation branches of the concerned banks. An advice is also made

for the confirmation of the draft send. These are also approved and safe way of

sending amount to the beneficiary.

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74

These are also noted by computerized system and a serial number is issued from

the computer system.

o Mail Transfer:

Mail Transfer is made with in the city for transfer of amount. An advice is also

made for the confirmation of the draft send. These are also approved and safe

way of sending amount to the beneficiary. These are also noted by computerized

system and a serial number is issued from the computer system.

o Telegraphic Transfer:

Telegraph Transfer is telegram message for transferring the amount from one

branch to other branch. A message advice and a confirmation advice both are

made with TT numbers that are issued for TEST. TEST depends on two steps:

First TEST is on Day, Date and Code Number of branch.

Second TEST is on Currency, whether Pak rupees or foreign

currency, amount and TT number issued from manual registers and

confirmed from computerized system.

o Payment of Pay Order & Demand Draft:

Pay-Order and Demand Draft both could be paid in shape of physical payment

of cash and in case transfer of amounts; the amount could be transferred in the

beneficiary account. In case of physical payment authorized signature of

beneficiary are taken for the proof of amount being paid to him and in case of

transferring of amount authorized signature of the beneficiary are checked and

verified for reducing risks.

o Cancellation of Pay Order & Demand Draft:

Any type of pay order/demand is cancelled by the permission and instructions

made by the beneficiary. The customer could only cancel the pay order/demand

draft as the verified signatures of beneficiary are present on the advice.

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75

3.2.1.4: Clearing Department:

Every banker acts both as a paying as well as a collecting banker, It is however an

important function of crossed cheques. A large part of this work is carried out through the

bankers clearing house.

A clearing house is a place where representative of all banks of the city get together and

settle the receipts and payment of cheques drawn on each other. As the collecting banker

runs certain risks in receipt of their ownership the law has provided certain protections to

the banks.

The Negotiable Instrument Act, 1881, lays down hat drawer or holder of a cheque or

draft may cross the instrument generally or specially. It further lies down that a crossed

cheque can only be paid to a banker, who collects it for a customer in good faith and

without negligence.

3.2.2: Foreign Exchange Department:

Foreign Exchange deals with following services:

3.2.2.1: LC’s Establishment:

Any company can provide its documents containing e-form, bill of lading, short shipment

notice in case of short shipment, packaging list etc. the information provided from the

documents is recorded in the LC establishment portion or section in the computer.

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76

3.2.2.2: Payment or Retirement:

When the transactions have been completed then approved documents from the

concerned bank are sent to the home bank for the payment or retirement of the LC. These

transactions have recorded in the payment or retirement section of the computer.

3.2.2.3: Foreign Currency Deposits:

The Foreign Currency Deposit relates with the foreign currency accounts, cash deposit or

credit and foreign remittances.

3.2.3: Credit Department:

This department deals with the approval of different kinds of loans to different business

entities. The loans, which are being approved by the department, are kept with some

securities such as bonds, properties and any other type of asset, which is equally valuable

or more than this as a guarantee. Every branch has its own limit, if the amount of loans is

with in the limit of the branch then it is being approved by the branch but if the amount of

loan is exceeding the limit then it has to make it approved by the head office. In this case

the branch stored all the required papers and sent them to the head office for necessary

action. If the head office approved the loan then mostly the period contains a year. And if

the party requires more loan than after a year the loan has been re-approved required that

they should have the limit. In case if the head office do not approve the loans then the

return letter came back with the reasons of not approval of loan and if the reasons have

been made approved by the concerned party then it could be sent again for approval. This

whole process is recorded in the back remain with the bank until the party has not

refunded all the amount of loan and bank has the authority to liquidate those assets for

preventing it from loss.

AREA OF INTERNSHIP

77

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4.1: Work Done by Me:

Week wise work done by me is as follow:

4.1.1: First Week:

In joining week of my internship at MCB Bank Limited, Bank Square Gujranwala, I

worked first 2 days under branch manager

He told me about high value transaction and how to comment on it. Explanation of high

value transaction is as follow:

o High Value Transactions:

All those transactions which are of 1 million or above 1 million are considered

as high value transactions. According to the instructions of SBP, the record of

daily high value transactions is kept separately and then bundled by months and

years.

The branch manager has to comment on these transactions. The comment

consists on following 3 parts:

Business of the customer

Nature of the transaction

Know your customer (KYC)

For example if there is a transaction that Bilal Velvet (a trader in Daal Bazaar)

has deposited or withdrawn cash of 1 million the comment will be:

Trader of Velvet

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Sale/Purchase of Velvet

Within Parameter

Similarly, if there is a transaction that Madina Traders (a sugar trader in Daal

Bazaar) has deposited or withdrawn cash of 2 millions the comment will be:

Trader of Sugar

Sale/Purchase of Sugar

Within Parameter

Branch manager uses “within parameter” rather than writing KYC because he

takes the responsibility to the extent of the dealing of the customer with bank.

He gave me the undone work of previous 6 months which I completed in 3

weeks.

In remaining days of the week I sat with the clearing person Mr. Afzal. He told me some

basics about clearing procedure which is as follow:

o Clearing at MCB:

MCB collects the cheques of its customers on behalf of them. If you have an

account in MCB and your customer has given you cheque of another bank then

you can give this cheque to MCB and MCB will collect it for you.

MCB divided cheques into three categories:

Intra City/Local Cheques

Inter City Cheques

Same Day Cheques

INTERNSHIP REPORT


Local cheques are those which are within city or with region. These cheques

take usually 2 days in clearing process.

Inter city cheques are those which are of other cities or other regions. These

cheques are sent to their particular cities.

Same day cheques are those which are of within city but these cheques are

stamped as same day and these are passed on same day on which they are

presented.

Some banks like “Standard Chartered Bank”, “NIB Bank”, “Habib Metropolitan

Bank” passed inter city locally. Charges for inter city cheques are 250 rupees

and local cheques are free. Cheque return charges are 300.

All cheques are sent via NIFT (National Institutional Facilitation Technologies).

It performs the role of middle man between banks and state bank. It collects all

the cheques from the banks and then sorts them and makes a list of it and

forwards it t SB. After these cheques have been processed in SB, NIFT’s agent

takes it their head office and from where these cheques are sent to particular

destination.

Every Morning Mr. Afzal posts the information of the slips of last days cheques which

are handed over to the NIFT’s agent on MCB’s own developed software “Branch Teller”.

At the closing time of bank when NIFT’s agent come with the passed cheques and

information and dishonored cheques, Mr. Afzal make of reversal of that posted slip.

Cheques which are of MCB and online fund transfer applications are also stamped at this

seat and handed over to the posting person. A daily sheet of record of local cheques

(account number, cheque number, bank name of cheque and amount) is made on excel

sheet. Inter city and same day cheques are recorded in separate register.

INTERNSHIP REPORT


4.1.2: Second Week:

During whole period of internship, mainly I sat on clearing seat and I indeed worked on

that seat rather than just learning.

My tasks on that seat in second week were as follow:

Receiving and stamping cheques

Sorting them as local and inter city

Making local cheques record in excel

Making inter city record on register

Verification of the working of the day

Printing

One of the works of the my daily routine was commenting on high value, as I had

commented undone work of previous months in last week so now I was enable to do this

work easily because now I know the businesses of the customers.

4.1.3: Third Week:

In third week there were some more tasks added to my clearing work. Now the total tasks

which I was doing at clearing seat were:

Receiving and stamping cheques

Sorting them as local and inter city

Making local cheques record excel

Making inter city record on register

Separating cheques and deposits slips

Putting different necessary stamps on cheques (explained below)

INTERNSHIP REPORT


Preparing covers for inter city cheques (city wise)

Preparing cover for local cheques

Receiving passed cheques information and dishonored cheques from NIFT’s agent

Attaching slips of dishonored cheques with them

Informing related parties to dishonored cheques

Giving dishonored cheques to related parties

Names of Various Stamps which are stamped on cheques are as follow:

Crossing Stamp (on every cheque)

Date Stamp (on every cheque)

Payee’s A/C will be credited on Realization (on every cheque)

Previous Clearing Stamps Cancelled (on dishonored cheques which are to be send

again)

Inter city clearing (on inter city cheques)

All our stamps cancelled (for canceling stamps)

Posted (on deposit slips after posting)

Crossing stamp is stamped on every received cheque in order to confirm receiving. Next

day date stamp is stamped on every cheque because cheques will be presented at next day

to particular branches. Payee’s A/C will be credited is also necessary to mention that the

amount of the cheque will be credited to payee’s account when cheque would be passed.

There is a float of two days in available balance and ledger balance. There for if any

cheque is dishonored then a reversal is made.

If any customer wants to resend dishonored cheque in clearing, then previous clearing

stamp is stamped on those cheques on back side. If any customer wants to take back his

cheque before sending of clearing then crossing stamp is cancelled by canceling stamp.

INTERNSHIP REPORT


In third week I also made KYC forms for customers. These forms are made once to twice

in the year and different things are mentioned on that form like their debit and credit

turnover, nature of their business, their dealing with bank and comment on future

business with the bank.

4.1.4: Fourth Week:

In fourth week time I started giving time to some other functions in bank along with my

clearing work like:

Account opening

Using “branch teller” to check the balances of the customers

Issue the bank statement of account

Sending letters to dormant or inactive account holders

Scanning cheques and e-mailing them to particular branch

Filling deposit slips and online fund transfer applications.

To open an account, a form is available which is called account opening form. It’s a form

on which different fields are given which is to be filled by customer by the help of

banker. Some common fields are:

Branch Name & Code (bank square branch code is 0190)

Type of Account (current, business, profit and loss etc)

Currency of Account (local or foreign)

Contact Information

Category of Account (individual, joint, partnership etc)

Occupation (business of the customer)

Operational Instructions (any other able to operate this account)

Reference

Know Information Next

INTERNSHIP REPORT


Specimen Signature Card

Nadra Verisys Form

On this seat I spent couple of days. And my other daily routines were same as previous

weeks i.e. doing clearing work, commenting on high value transactions, calling

customers for reminders.

4.1.5: Fifth Week:

In fifth week I did some additional works which are as follow:

Learned Procedures of Demand Drafts & Pay Orders

Making Debit & Credit Vouchers For Remittance

Filling ATM Forms

Demand drafts and pay orders are prepared by clearing person MCB, Bank Square

Branch. Information is entered into “branch teller” and printed on DD stationary.

Demand drafts are made against cash or amount is debited from account. Rupees 100 are

charged as charges against issue of DD by MCB if amount is up to 100000. For non

account holder it is 200 Rupees. For amount of more than 100000, charges are 0.1% of

the amount and for non account holders it is 0.2% of the amount. For pay order charges

are charges are 100.

Debit & Credit vouchers are also filled at clearing seat. Instruments are issued by Global

Transaction Banking Branch, Karachi under home remittance scheme or speed or any

other scheme. And it is mentioned on instrument that amount is payable at which branch.

A credit voucher is sent to GTB, Karachi and a debit voucher is prepared for branch it

self.

INTERNSHIP REPORT


I filled some forms for request of ATM issue and called those customers whose cards

were ready but they did not collect. MCB charges 250 Rupees as issues fee and 250 as

annual renewal.

4.1.6: Sixth Week:

In sixth week I started sitting with posting person who was responsible for posting the

checques of MCB from one account to another account. All those cheques which are of

MCB are transferred online by Mr. Noman. Online fund transfer applications are also

posted by this person. Both cheques and applications are stamped at clearing seat and

handed over to Mr. Noman. Difference between online fund transfer applications and

cheques with deposit slips is that cheques are of other branches which are to be

transferred in MCB, Bank Square branch accounts and online fund transfer applications

are used to transfer money to account of another branch from the MCB, Bank Square.

He first checks the balance in account of cheque and then he makes verification about

signatures, account number and account title from the “branch teller” software. If the

payee party is trusted then he makes the transfer other wise he sends the cheques in

clearing or sends fax or mail to particular branch of cheque. He gave me opportunity to

post a couple of cheques under his care.

On the other hand I was doing my tasks at clearing seat. I went to head office of MCB

with manager a couple of times where he took import forms. Sometimes I went with him

to different customers for telling bank services and motivating them to open accounts and

make deposits. I commented on high value transactions this week make some other debit

voucher for expense.


FINANCIAL ANALYSIS

86

INTERNSHIP REPORT


In this section, statements, results and explanation of results will be presented

respectively.

5.1: Financial Statements:

Balance Sheet:

Amounts 2007 2008 2009 2010 (RS. In 000)

Assets Cash and balances with treasury banks 39,683,883 39,631,172 38,774,871 45,407,183 Balances with other banks 3,867,591 4,043,100 6,009,993 1,478,569 Lendings to financial institutions 1,051,372 4,100,079 3,000,000 4,401,781 Investments – Net 115,358,590 96,631,874 167,134,465 213,060,882 Advances – Net 218,959,786 262,135,470 253,249,407 254,551,589 Operating fixed assets 16,082,781 17,263,733 18,014,896 20,947,540 Deferred tax assets – net 0 0 0 0 Other assets – Net 17,896,838 19,810,476 23,040,095 27,705,069 412,900,841 443,615,904 509,223,727 567,552,613

Liabilities Bills payable 10,479,058 10,551,468 8,201,090 10,265,537 Borrowings 39,406,831 22,663,840 44,662,088 25,684,593 Deposits and other accounts 292,088,347 330,181,624 367,604,711 431,371,937 Sub–ordinated loan 479,232 0 0 0 Liabilities against assets subject to finance lease 0 0 0 0 Deferred tax liabilities – net 1,183,586 437,137 3,196,743 4,934,018 Other liabilities 11,716,465 21,345,781 15,819,082 16,092,319 355,353,519 385,179,850 439,483,714 488,348,404

Net Assets 57,547,322 58,436,054 69,740,013 79,204,209 Owner's Equity Share capital 6,282,768 6,282,768 6,911,045 7,602,150 Reserves 34,000,927 36,768,765 38,385,760 40,162,906 Unappropriated profit 7,054,472 9,193,332 15,779,127 21,414,955 47,338,167 52,244,865 61,075,932 69,180,011 Surplus on revaluation of assets – Net of tax 10,209,155 6,191,189 8,664,081 10,024,198

Total Equity 57,547,322 58,436,054 69,740,013 79,204,209

INTERNSHIP REPORT


Income Statement:

Amount

2007 2008 2009 2010 (RS. In 000) Mark–up / return / interest earned 31,791,754 40,043,824 51,616,007 54,821,296 Mark–up / return / interest expensed 7,858,819 11,560,740 15,837,322 17,987,767

Net mark–up / interest income 23,932,935 28,483,084 35,778,685 36,833,529 Provision for diminution in the value of investments – Net 105,269 2,683,994 1,484,218 444,476 Provision against loans and advances – Net 2,959,583 1,335,127 5,796,527 3,100,594 Bad debts written off directly 199 0 41,576 52,047 3,065,051 4,019,121 7,322,321 3,597,117 Net mark–up / interest income after provisions 20,867,884 24,463,963 28,456,364 33,236,412

Non–mark–up / interest income Fee, commission and brokerage income 2,772,615 2,953,394 3,331,856 4,129,540 Dividend income 535,813 617,554 459,741 543,906 Income from dealing in foreign currencies 693,408 727,564 341,402 632,346 Gain on sale of securities – Net 1,507,610 740,429 773,768 411,834 Unrealized gain on revaluation of investments (3,329) (103,198) 0 0 Other income 1,002,160 855,697 736,118 547,680 6,508,277 5,791,440 5,642,885 6,265,306 Total non–mark–up / interest income 27,376,161 30,255,403 34,099,249 39,501,718

Non–mark–up / interest expenses Administrative expenses 5,440,305 7,546,878 10,111,330 12,173,942 Other provision – Net (3,743) 23,135 142,824 88,261 Other charges 642,780 817,824 690,150 986,440

Total non–mark–up / interest expenses 6,079,342 8,387,837 10,944,304 13,248,643 Extra ordinary / unusual item 0 0 0 0 Profit before taxation 21,296,819 21,867,566 23,154,945 26,253,075 Taxation – Current year 6,463,560 7,341,257 7,703,305 8,027,433 – Prior years (1,294,586) (864,824) (2,232,226) 0 – Deferred 899,898 16,533 2,188,569 1,352,467 6,068,872 6,492,966 7,659,648 9,379,900

Profit after taxation 15,227,947 15,374,600 15,495,297 16,873,175 Unappropriated profit brought forward 6,278,593 5,130,750 9,193,332 15,779,127 Transfer from surplus on revaluation of fixed assets 11,860 21,319 22,324 21,792 6,290,453 5,152,069 9,215,656 15,800,919

INTERNSHIP REPORT


Profit available for appropriation 21,518,400 20,526,669 24,710,953 32,674,094

5.2: Results:

Horizontal Analysis (Balance Sheet):

Horizontal Analysis Speed Direction Favorable 2008 2009 2010 % % % %

Assets Cash and balances with treasury banks (0.13) (2.29) 14.42 4.00 Upward Fav Balances with other banks 4.54 55.39 (61.77) (0.61) Downward Unfav Lendings to financial institutions 289.97 185.34 318.67 264.66 Upward Fav Investments – Net (16.23) 44.88 84.69 37.78 Upward Fav Advances – Net 19.72 15.66 16.25 17.21 Upward Fav Operating fixed assets 7.34 12.01 30.25 16.53 Upward Fav Deferred tax assets – net Other assets – Net 10.69 28.74 54.80 31.41 Upward Fav Total Assets 7.44 23.33 37.45 22.74 Upward Fav Liabilities Bills payable 0.69 (21.74) (2.04) (7.69) Downward Fav Borrowings (42.49) 13.34 (34.82) (21.32) Downward Fav Deposits and other accounts 13.04 25.85 47.69 28.86 Upward Fav Sub–ordinated loan 0.00 0.00 0.00 Liabilities against assets subject to finance lease 0.00 0.00 0.00 Deferred tax liabilities – net (63.07) 170.09 316.87 141.30 Upward Unfav Other liabilities 82.19 35.02 37.35 51.52 Upward Unfav Total Liabilities 8.39 23.68 37.43 23.16 Upward Unfav

Net Assets 1.54 21.19 37.63 20.12 Upward Fav

Owner's Equity Share capital 0.00 10.00 21.00 10.33 Upward Fav Reserves 8.14 12.90 18.12 13.05 Upward Fav Unappropriated profit 30.32 123.68 203.57 119.19 Upward Fav 10.37 29.02 46.14 28.51 Upward Fav Surplus on revaluation of assets – Net of tax (39.36) (15.13) (1.81) (18.77) Downward Unfav

Total Equtiy 1.54 21.19 37.63 20.12 Upward Fav

INTERNSHIP REPORT


Horizontal Analysis (Income Statement):

Horizontal Analysis Speed Direction Nature

2008 2009 2010

% % % %

Mark–up / return / interest earned 25.96 62.36 72.44 53.58 Upward Fav

Mark–up / return / interest expensed 47.11 101.52 128.89 92.50 Upward Unfav

Net mark–up / interest income 19.01 49.50 53.90 40.80 Upward Fav

Provision for diminution in the value of investments 2449.65 1309.93 322.23 1360.60 Upward Unfav

Provision against loans and advances – Net (54.89) 95.86 4.76 15.24 Downward Fav

Bad debts written off directly 0.00 20792.46 26054.27 15615.58 Upward Unfav

31.13 138.90 17.36 62.46 Downward Fav

Net mark–up / interest income after provisions 17.23 36.36 59.27 37.62 Upward Fav

Non–mark–up / interest income

Fee, commission and brokerage income 6.52 20.17 48.94 25.21 Upward Fav

Dividend income 15.26 (14.20) 1.51 0.86 Upward Fav

Income from dealing in foreign currencies 4.93 (50.76) (8.81) (18.21) Downward Unfav

Gain on sale of securities – Net -50.89 (48.68) (72.68) (57.42) Downward Unfav

Unrealized gain on revaluation of investments 2999.97 0.00 0.00 999.99 Downward Unfav

Other income (14.61) (26.55) (45.35) (28.84) Downward Unfav

(11.01) (13.30) (3.73) (9.35) Downward Unfav

Total non–mark–up / interest income 10.52 24.56 44.29 26.46 Upward Fav

Non–mark–up / interest expenses

Administrative expenses 38.72 85.86 123.77 82.78 Upward Unfav

Other provision – Net (718.09) (3915.76) (2458.03) (2363.96) Downward Fav

Other charges 27.23 7.37 53.46 29.36 Upward Unfav

Total non–mark–up / interest expenses 37.97 80.02 117.93 78.64 Upward Unfav

Extra ordinary / unusual item

Profit before taxation 2.68 8.72 23.27 11.56 Upward Fav

Taxation – Current year 13.58 19.18 24.20 18.98 Upward Unfav

– Prior years (33.20) 72.43 0.00 13.08 Downward Fav

– Deferred (98.16) 143.20 50.29 31.78 Downward Fav

6.99 26.21 54.56 29.25 Upward Unfav

Profit after taxation 0.96 1.76 10.80 4.51 Upward Fav

Unappropriated profit brought forward (18.28) 46.42 151.32 59.82 Upward Fav

Transfer from surplus on revaluation of fixed assets 79.76 88.23 83.74 83.91 Downward Unfav

(18.10) 46.50 151.19 59.86 Upward Fav

INTERNSHIP REPORT


Profit available for appropriation (4.61) 14.84 51.84 20.69 Upward Fav

Vertical Analysis (Balance Sheet):

Vertical Analysis 2007 2008 2009 2010 % % % % Assets Cash and balances with treasury banks 9.61 8.93 7.61 8.00 Balances with other banks 0.94 0.91 1.18 0.26 Lendings to financial institutions 0.25 0.92 0.59 0.78 Investments – Net 27.94 21.78 32.82 37.54 Advances – Net 53.03 59.09 49.73 44.85 Operating fixed assets 3.90 3.89 3.54 3.69 Deferred tax assets – net Other assets – Net 4.33 4.47 4.52 4.88 100.00 100.00 100.00 100.00 Liabilities Bills payable 2.54 2.38 1.61 1.81 Borrowings 9.54 5.11 8.77 4.53 Deposits and other accounts 70.74 74.43 72.19 76.01 Sub–ordinated loan Liabilities against assets subject to finance lease Deferred tax liabilities – net 0.29 0.10 0.63 0.87 Other liabilities 2.84 4.81 3.11 2.84 86.06 86.83 86.30 86.04 Net Assets 13.94 13.17 13.70 13.96

Owner's Equity Share capital 1.52 1.42 1.36 1.34 Reserves 8.23 8.29 7.54 7.08 Unappropriated profit 1.71 2.07 3.10 3.77 11.46 11.78 11.99 12.19 Surplus on revaluation of assets – Net of tax 2.47 1.40 1.70 1.77 Total Equity 13.94 13.17 13.70 13.96

INTERNSHIP REPORT


Vertical Analysis (Income Statement):

Amount 2007 2008 2009 2010 % % % % Mark–up / return / interest earned 72.44 100.00 100.00 100.00 Mark–up / return / interest expensed 128.89 24.72 28.87 30.68

Net mark–up / interest income 53.90 75.28 71.13 69.32 Provision for diminution in the value of investments – Net 322.23 0.33 6.70 2.88 Provision against loans and advances – Net 4.76 9.31 3.33 11.23 Bad debts written off directly 26054.27 0.00 0.00 0.08 17.36 9.64 10.04 14.19 Net mark–up / interest income after provisions 59.27 65.64 61.09 55.13 Non–mark–up / interest income Fee, commission and brokerage income 48.94 8.72 7.38 6.46 Dividend income 1.51 1.69 1.54 0.89 Income from dealing in foreign currencies (8.81) 2.18 1.82 0.66 Gain on sale of securities – Net (72.68) 4.74 1.85 1.50 Unrealized gain on revaluation of investments 0.00 (0.01) (0.26) 0.00 Other income (45.35) 3.15 2.14 1.43 (3.73) 20.47 14.46 10.93 Total non–mark–up / interest income 44.29 86.11 75.56 66.06

Non–mark–up / interest expenses Administrative expenses 123.77 17.11 18.85 19.59 Other provision – Net (2458.03) (0.01) 0.06 0.28 Other charges 53.46 2.02 2.04 1.34

Total non–mark–up / interest expenses 117.93 19.12 20.95 21.20 Extra ordinary / unusual item Profit before taxation 23.27 66.99 54.61 44.86 Taxation – Current year 24.20 20.33 18.33 14.92 – Prior years 0.00 (4.07) (2.16) (4.32) – Deferred 50.29 2.83 0.04 4.24 54.56 19.09 16.21 14.84

Profit after taxation 10.80 47.90 38.39 30.02 Unappropriated profit brought forward 151.32 19.75 12.81 17.81 Transfer from surplus on revaluation of fixed assets 83.74 0.04 0.05 0.04 151.19 19.79 12.87 17.85

INTERNSHIP REPORT


Profit available for appropriation 51.84 67.69 51.26 47.87

Ratio Analysis:

Ratios 2008 2009 2010 Overall Specialized Ratios Earning Assets to Total Assets% 91.65 92.11 90.26 Favorable

Return on Earning Assets 0.05 0.05 0.05 Favorable

Net Margin to Earning Asset% 7.01 7.63 7.19 Favorable

Loan Loss Coverage Ratios 17.38 4.96 9.31 Favorable Deposits Times Capital 6.32 6.02 6.24 Favorable Loans to Deposits% 81.86 71.34 60.37 Favorable Earning assets to deposits 1.23 1.28 1.19 Favorable

Solvency Ratios Debt to Total Assets 0.87 0.86 0.86 Unfavorable Debt to Equity 7.37 7.20 7.06 Unfavorable Equity Capital to Total Assets 0.13 0.14 0.14 Unfavorable Profitability ratios Net Profit Marin% 38.39 30.02 30.78 Favorable Return on Assets% 3.47 3.04 2.97 Favorable Return on Equity% 29.43 25.37 24.39 Favorable

Marketability Ratios Earning per Share 20.22 20.38 22.20 Favorable Dividend per Share 11.50 11.00 11.50 Favorable Price Earning Ratio 6.22 10.78 10.29 Favorable Market to Book Value ratio 1.51 2.49 2.51 Favorable Dividend Payout Ratio% 56.87 53.97 51.80 Favorable Dividend Yield Ratio% 9.14 5.01 5.03 Favorable

5.3: Explanation of Results:

If we see towards the specialized ratios of MCB, then we come to know that MCB has

very good earning assets to total assets ratios in recent years. It shows the efficiency of its

management that it is putting its assets to work and making earnings. The efficiency of

the banking firm is measured by its ability to utilize its assets in a manner that they could

be profitable for the firm. Lendings, advances, investments are increasing every year.

INTERNSHIP REPORT


There is decrease in balance with other banks and that for there is a little decrease in the

ratio in year 2010.

Return on earning asset is not quite good for MCB in recent years. Net profit is almost

same in year 2007 to 2009 and there is a little increase in net profit due to higher markup

and non markup interest income in 2010 and there for ratio is a point better than 2009.

This ratio shows real profitability position of business and MCB has some good ratios.

Net margin to earning assets ratio shows the management’s ability to control the spread

between interest income and interest expense. There is mix trend in this ratio in recent

years for MCB. In year 2008, MCB has some good earning assets but interest earned was

not ideal due to slump period. In year 2009 ratio had increased in quite good way but in

year 2010, ratio is little less than last year due to high interest expense but there is a good

amount of interest earned so ratio is up to the mark.

Loan loss coverage ratio helps in determining the asset quality and the level of protection

of loans. This Ratio is unfavorable for MCB in recent year because of increasing trend in

bad debts. MCB has to reconsider its policies in order to correct this situation.

Deposit times capital ratio to some extent, is a type of debt/equity ratio, indicating a

bank’s debt position. More capital greater margin of safety and more deposits more

money available for investment. There is increasing trend in deposits every year which

shows the trust of public in MCB. And there is almost same increasing trend in equity

thus MCB is maintaining this ratio.

Loan to deposit ratio shows the assets available against deposited demand. MCB has

good ratios but there is decreasing trend in recent year in this ratio. Because there is

increasing trend in deposits and decreasing trend in loans (balance with other banks and

lendings to financial institutes).

INTERNSHIP REPORT


Solvancy analysis gives not much favorable picture. Equity to total assets ratio measures

the extent of equity ownership in the bank. MCB should increase this ratio for the wealth

of shareholders. On the other hand debt ratios are also not favorable. Debts have been and

investing in a company having higher debt ratios may be risky due to high amount of

interest paying especially when interest rate is high.

MCB has good profitability ratios overall but as compare to 2009, these ratios are

unfavorable having decreasing trend because of higher amount of bad debts and mark up

and non markup interest expense.

MCB offers good opportunities for investors having good earning per share and dividend

per share. Price to earning ratio is good which shows the good reputation of MCB in

market. There is increasing trend market to book value ratio which shows that value of

MCB in market is greater than value of MCB in its books which is favorable for MCB

and it will motivate investors to invest in MCB. Dividend payout ratio is almost stable

which shoes the solid dividend policy of MCB. The Dividend Yield ratio can be helpful

when looking for income producing stocks, ratio has decreased in 2009 and 2010 as

compare to 2008 but still it is useful for wealth of shareholders.

Horizontal analysis of balance sheet and income statement shows that MCB has

increasing trends in incomes, profits and earning assets. Equity has also increasing trend

which shows that MCB thinks for wealth of its shareholders and improving its policies

every year. Vertical analysis shows the stability of MCB policies that it is marinating

equity and assets position, and improving its net income every year with reference to

markup interest.

SWOT ANALYSIS

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6.1: Internal Analysis:

6.1.1: Strengths:

Long & Strong Establishment:

MCB has a lot of experience than other private banks plus it has strong financial

background by national group. Now it has a strong brand name for people to trust.

Network of branches:

MCB has a wide network of branches in all over the country plus location of branches is

very good. MCB tries to establish branch at those location where deposits are highly

expected. Branches like MCB, Bank Square Gujranwala, and Lahore are examples of

this.

Products & Services:

MCB is providing almost all possible banking products and services from insurance to

financing, from agriculture to house schemes, from individual loans to agency services,

from full day banking to online banking even mobile banking and foreign exchange.

Increasing Trends:

MCB has very good investor and marketability ratios there are increasing trends in

equity, assets, deposits and incomes.

INTERNSHIP REPORT


6.1.2: Weaknesses:

Employees Dissatisfaction:

Most of the employees in MCB are dissatisfied due to low salaries as compared to same

positions in other banks plus they are not satisfied with incentives given by MCB to

them. They also complain about overload of work That’s why turn over rate at MCB is

high.

Effect of Nationalization:

A large number of MCB employees are of that period when MCB was a nationalized

bank. They are now unwilling to present like employees in other private banks. Their

attitude is not much motivating for customers.

Lack of Training & Skills:

There is lack of training and skills in employees. MCB is not paying much attention to

improve the abilities and skills of its employees according to modern banking

requirements.

Lack of Advertisement:

MCB is one of most powerful banks of Pakistan and it can create more customers by

advertising regularly about its products and services on proper media channels but due to

lack of services MCB is missing this opportunity.

INTERNSHIP REPORT


6.2: External Analysis:

6.2.1: Opportunities:

Motivation:

MCB can motivate its customers by spreading information about social and cultural

benefits of adopting its product and services and depositing their money in a bank like

MCB.

Islamic Banking:

Islamic Banking is a growing concept and MCB can overcome this field by offering more

attractive Islamic banking products and opening new Islamic banking branches.

Need of Every Business:

Banking sector is most growing sector of Pakistan. It is now need of every business. It’s

opportunity for MCB to offer products and services to every business according to their

need. Even it can offer to overseas customers.

Modernization:

MCB can follow the modernization in banking business. It can avail more modern IT

technology, it can offer micro financing to make low income people into customers, and

it can apply more modern training programs for skills improvement.

INTERNSHIP REPORT


6.2.2: Threats:

Huge Competition:

Banking sector is growing but actually pretty much grown sector in Pakistan. This

attracts businessmen to enter into banking business in Pakistan. Many private banks have

come into establishment in recent years and many foreign banks have started their

branches in Pakistan. They are equipped with latest banking knowledge and skills as well

as modern technology. So MCB has to compete them with more and more effort.

Current Situation of Pakistan:

o Recent years were not good for Pakistan, because law and order situation

left huge impacts on all businesses.

o Shortage of energy also indirectly affect banking sector because other

businesses rely on it.

o Pakistan is an Islamic country and people here think that bank business is

not halal so most of the time they avoid it.

Govt. Policies:

Government of Pakistan is making is huge borrowings from state bank as well as from

commercial banks. This cause many banks to bankrupt when they have no actual money

to give back to its depositors. Banks are merging into one another to keep their neck up in

water.

RECOMMENDATIONS

101

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Motivation & Training Programs:

MCB should apply some serious motivation programs to its employees. Its employees

seem to be dissatisfied from their jobs. They think that they are overloaded with work and

pay is not up to the mark. MCB has to remove the gap between management and non-

management. Proper meetings should be arranged for this purpose, this will reduce their

frustration.

It seem that MCB employees are hunted by lack of training, even they don’t know

properly about major running software called “symbols branch teller”. MCB should train

them as all rounder bankers that they could perform more and more banking tasks. MCB

should train them with modern banking policies and attitudes and enable them to run with

modern concept of customer relationship. Employees should also be enable to work on

modern machinery and remaining manual procedures should be converted to

computerized systems as early as possible to increase efficiency, following survival of the

fittest. They should be taught the concepts of team work and job rotation.

Using Proper Channels:

MCB should advertise its products and services using all popular and proper channels like

TV and print media. Mere having a website is not enough plus MCB should consider on

advertising its products in easily understandable way, because pure banking terms are not

understand by common people. People even don’t properly understand English so it is

recommended that spreading should also be in popular languages. It will make ease to

build relations in bank and general public.

INTERNSHIP REPORT


Islamic Banking:

In Islamic countries, a huge number of people avoid banking systems because they think

that banking is totally based on interest system which is haram. So, now a day’s concept

of Islamic banking is growing in muslim countries and capturing market. MCB should

understand the future market of Islamic banking and should make policies for it.

Rewards & Promotions:

MCB should reconsider its rewards and promotion policies because their pay is not up to

the mark in comparison of other banks. They should adopt performance based reward

system along with seniority based reward system. This should encourage hard workers.

Good salaries will help in reducing turnover and it will also attract trained professionals.

Customer Relationship Management:

MCB has weak customer relationship management policies. It is running on its brand

name and old establishment. There is lack of innovation in MCB. So, MCB should think

about it. It should think that how to secure future and how to retain and gain customers. In

this age of huge competition customer now are enable to compare the services and

products of one bank with another. Availability of information is also high so there is a

strong need for MCB to improve its customer relationship policies that will help it to

secure its future.

CONCLUSION

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At the end of this concluding this report I’m feeling joy that with blessings of Allah, I

finally completed by internship successfully and now I have made a report on it.

Internship at MCB Bank Limited, Bank Square was a pleasant experience. Most of the

staff there was cooperative and they helped me in my leanings. I notice working at MCB

that most of the MCB branches at those places where deposits come in huge amount and

MCB has advantage of trust of people that its deposits are increasing every year.

MCB bank has a history as old as Pakistan and it is one of most powerful and largest

banks of Pakistan. Huge number of branches in all over the Pakistan and largest ATM

network plus strong financial and market position and a good brand name are some of the

strengths of MCB. MCB has good financial ratios and increasing trends in profits,

incomes, assets and equity, which shows the ever improving policies of MCB and

thinking about wealth of its stakeholder.

MCB has good future in commercial banking with variety of products and services and it

just need to improve its customer relationship management and it has to think seriously

about Islamic banking plus MCB is facing some serious issues like high employee turn

over because employees at MCB are less satisfied with their jobs and pays. So MCB has

to apply some measures to overcome these problems as described in recommendation

section that modern training and motivations programs should be applied at MCB.

I think I honestly did all my tasks during internship period which resulted in a very useful

increase in my knowledge, experience and skills. I hope it will help me in future.

BIBLIOGRAPHY &

REFRENCES

106

INTERNSHIP REPORT


Managerial Finance By Lawrence J. Gitman

Principles of Marketing By Philip Kotler

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

References:

Altman, E.I. (1968), “Financial ratios, Discriminant analysis and the prediction of

corporate bankruptcy”, Journal of Finance, September, pp. 189-209.

LAWRENCE J. GITMAN (2005) - Principle of Managerial Finance (Eleventh Edition).

Addison-Wesley. ISBN: 9780321267610.

MCB BANK LIMITED (2011) – Company Profile [online]. Retrieved from:

http://www.mcb.com.pk/mcb/about_mcb.asp [Accessed: July 18, 2011].

MCB BANK LIMITED (2011) – Annual Reports [online]. Retrieved from:

http://www.mcb.com.pk/ir/fin_data_rep.asp [Accessed: July 25, 2011].

WEIHRICH, H. (1982) The TOWS Matrix – A tool for situational analysis. Journal of

Long Range Planning, 15.

SALMAN AMIN, Branch Manager at MCB Bank Square Branch, Information about high

value transactions.

Chowdary Afzal, Officer at MCB Bank Square Branch, Information about clearing

process, demand draft, pay order, posting.

Glossary

108

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B

BASIC Banking Account:

This type of account is for the student and low income group having no account maintenance

charges.

Business Account:

Special account for the business group having large transaction limit and free fund transfer

facility.

C

Credit Card:

A plastic card issued by a bank authorizing payment for purchases. Interest is charged on

the outstanding balance.

Current Account:

It is a type of account that allows the account holder to maintain the money more conveniently

Clearing:

Clearing is the facility in which cheaques relating to other branch and other bank is transferred to

the account holder account.

Credit:

Credit is defined as direct or indirect lending enabling a person to take possession of

goods for future payment.

Cheques:

It is a written order of the depositor upon a bank to pay to or to the order of designated

party or to a bearer, a specified sum of money on demand.

INTERNSHIP REPORT


D

Demand Draft:

It is a written order, drawn by one office (branch) of a bank upon another office (branch)

of the same bank, to pay a certain sum of money to or to the order of a specified person.

E

Euro Money:

It is the international magazine which gives awards in its magazines.

F

Foreign Remittance:

Transfer of money from one country to another country is called foreign remittance

H

High Value Transaction:

The transactions above of the amount of 1 million or above is known as high value transactions.

K

KYC

It is a special type of form which banker has to fill as instructed by SPB. It stands for Know Your

Customer.

INTERNSHIP REPORT


L

Letter of Credit:

A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and

for the correct amount. In the event that the buyer is unable to make payment on the purchase, the

bank will be required to cover the full or remaining amount of the purchase.

M

Mail Transfer

The transfer of funds from one bank’s branch to some bank other branch either inside or outside

the city is known as mail transfer.

Mark Up

It is the extra amount charged by the bank on the principle amount, it is actually the profit of the

bank.

Musharakah:

It is an agreement under which the Islamic bank provides funds which are mingled with

the funds of the business enterprise and others. The profit is distributed among the

partners in pre-determined ratios, while the loss is distributed by each partner in

proportion to his contribution.

Mudarabah:

Sale on profit; Cost plus profit, sale at stated cost price and mark-up, sale at a specified

profit margin.

INTERNSHIP REPORT


N

Next of Kin:

The person who is legally entitled to handle the account in case of death of account holder.

National Group:

The consortium which called itself the National Group comprised the following leading industrial

groups and families:

o Mohammad Abdullah Saphire

o S.M.Muneer Din

o S.S.Saleem Universal Leather and Footwear

o Mian Mohammad Mansha Nishat

o Haji Bashir Ahmad Sitara

o Tariq Rafi Sadiqsons (United)

o Mohammad Naseem Shafi Tanneries

o Mohammad Arshad Arshad Textiles

o Sheikh Mukhtar Ahmad Ibrahim

o Saqib Elahi Be Be Jan Pakistan (Pvt) Ltd.

o Bashir Jan Mohammad F and B Bulk Storage (Pvt) Ltd.

o Khawaja Mohammad Javed Chakwal

P

Pay-in-Slip:

It is a slip used by the customer to deposit a amount in its account.

Pay Order:

It is a written order, drawn by one office (branch) of a bank upon itself, to pay a certain sum of

money to or to the order of a specified person.

INTERNSHIP REPORT


R

Remittance:

A remittance is a transfer of money by a foreign worker to his or her home country.

S

Signature Card:

It is a card which is annexed to the account opening form having two signatures of the applicant.

T

Telegraphic transfer

Transfer of funds from one branch to another branch of the same bank or upon other bank under

special arrangements.

Term deposit certificate

It is the certificate of deposit which is issued for a specified future time period

Transfer cheaque

These are those cheques which are collected and paid by the same branch of bank.

V

Verisys

Bank confirms the computerized national identity cards are confirmed by this system

through NADRA.

Annexure

114

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Internship Certificate

Deposit Slips

Debit & Credit Voucher

ATM Application Form

Cheque Book Requisition Slip

Accounting Opening Form

Specimen Signature Card

Fund Transfer Application

ATM Transaction Dispute Form

Knowledge is Light, which enlightens our lives. And I believe that my honorable teacher is like shining moon and I am like a little star which absorbs this light of the Moon.

internship report at mcb bank limited

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