INTERNSHIP REPORT

MUSLIM COMMERCIAL BANK LTD

SUBMITTED TO:

MBA 6TH SEMESTER

Dedication To

I dedicated to my internship to my parents. I also want to show my gratitude to

my loving parents and humble teachers who make me able to be at this position.

Acknowledgement
All praise to Allah, the Beneficent, the merciful, and respect for His Prophet
Peace Be upon Him who made us recognize our creator.
I am also thankful to the Employees of MCB who provided me a friendly and
knowledgeable environment through which I learned a lot
I also want to show my gratitude to my loving parents and humble teachers who
make me able to be at this position.

Executive Summary
MCB bank limited with more than 60 years of experience as one of the leading banks in Pakistan
,was incorporated on July 9th 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 development, professionally leading management and prudent
and ethical work methodologies .MCB was nationalized along with other private banks in 19 74
as part of government of Pakistans economics reform movement and was later privatized to
Nishat group lead consortium in 1991.The bank has also been acknowledged though prestigious
recognition and awards by euro money, MMT, Asia money, SAFA (SAARC), the asset and the
Asian bank.
My duration of internship at MCB was stated from 28 th August and ended on 14th September
2013.
It was an honor to learn precious skills from highly motivated and professional individuals from
different departments of the company .the two months time was even not enough to know
everything about such large organization but mangers was co operated me in such a way that it
was so easy to understand what this organization is all about.
During the internship I found many qualities skills in myself because I was not aware before .it
gave me a recognition of whole new world of professional business life and it before .it helped
me to know about people ,their attitude ,level of motivation ,professional abilities ,skills ,values,
cultural diversification etc.
MCB bank limited is group of companies has a vast human resources management system as it is
a big organization having operative in several countries. The employee are well trained and are
compensated by MCB bank limited to a larger extent .the bank has very good system of hiring
new employees. Keep good standards of employee selection ,selection process is structured and
of high quality ,sources of recruitment is internal as well as external ,incentives are being given
to the employees on good performance ,good promotional system etc.
I conducted the SWOT analysis of the MCB bank limited and my findings are explained here
under .strength are safe and secure investment venture, innovative and new technology adapter
employee satisfaction ,well equipped and fully secure environment, modernized banking (online
+ internet )and complete supervision at every level. Weakness are weaker organizational culture,
HR policies (appraisal, compensation, career planning), networking problems regarding ATM,
weak MIS interconnectivity among the division, and no mobile ATM services in rural areas.
Threats are downsizing is potential threat for MCB employees and they are losing their
confidence towards bank performance ,fierce competition ,changing environment of banking,
economical political condition are a great threat, entrance of international banks.
Conclusion and recommendations are an important parts this report.
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Table of Contents
Dedication To........................................................................................................... 2
Executive Summary.......................................................................................................... 4
Overview of Organization.................................................................................................. 8
NATIONALIZATION.................................................................................................... 8
CHANGE OF OWNERSHIP........................................................................................... 8
PRIVATIZATION......................................................................................................... 8
MCB TODAY.............................................................................................................. 9
Introduction.................................................................................................................. 10
Vision Statement............................................................................................................ 10
Mission Statement.......................................................................................................... 10
Our Values................................................................................................................... 11
Integrity................................................................................................................... 11
Respect.................................................................................................................... 11
Excellence................................................................................................................ 11
Customer Centricity.................................................................................................... 11
Innovation................................................................................................................ 11
Organizational Structure of the MCB Branch Ghalla Mandi, Gujranwala......................................12
Accounts and types of Customers....................................................................................... 13
Individual................................................................................................................. 13
Joint........................................................................................................................ 13
Partnership Account.................................................................................................... 13
Company Account...................................................................................................... 14
Accounts Department...................................................................................................... 14
DEPOSIT ACCOUNTS................................................................................................... 14
Current Account......................................................................................................... 14
Savings Account......................................................................................................... 15
Foreign Currency Account............................................................................................ 15
Saving 365 Gold......................................................................................................... 15

Smart Dollar Account.................................................................................................. 15

Special Rupee Term..................................................................................................... 15
Business Accounts...................................................................................................... 16
Saving Xtra Account.................................................................................................... 16
Current Life Account................................................................................................... 16
Term Deposits............................................................................................................ 16
Closing of an Account..................................................................................................... 16
General Banking Operations............................................................................................. 17
Payment of Cheques.................................................................................................... 17
PayIn Slip............................................................................................................... 17
Remittances.................................................................................................................. 17
Demand Drafts (DD)................................................................................................... 18
Pay Order (PO).......................................................................................................... 18
Cancellation of Pay Order and Demand Draft.....................................................................18
Telegraphic Transfer (TT)................................................................................................ 18
Clearing House............................................................................................................. 19
Inward Clearing......................................................................................................... 19
Outward Clearing....................................................................................................... 19
Locker........................................................................................................................ 20
Issuance of Travelers Cheques.......................................................................................... 20
Issuance of Cheque books................................................................................................ 20
Issuance of Auto Teller Machine (ATM) CARDS...................................................................20
Cancellation of ATM Cards.............................................................................................. 20
Credit/Advances Department............................................................................................ 21
Preparation of Credit Proposal........................................................................................ 21
Types of Advances......................................................................................................... 22
Fund Base Advance........................................................................................................ 22
Demand Finance......................................................................................................... 22
Cash Finance............................................................................................................. 22
Running Finance............................................................................................................ 23
Non-Fund Base Advance................................................................................................. 23
Guarantee................................................................................................................. 23
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Foreign Currency Deposits............................................................................................... 23

Foreign Remittances....................................................................................................... 23
SWOT Analysis............................................................................................................. 24
Strength...................................................................................................................... 24
Weakness..................................................................................................................... 26
Opportunities................................................................................................................ 27
Threats........................................................................................................................ 28
PEST Analysis.............................................................................................................. 29
Political................................................................................................................... 29
Economic................................................................................................................. 29
Social and Cultural...................................................................................................... 29
Technical.................................................................................................................. 29
Conclusion................................................................................................................... 30
Recommendations and Suggestions.................................................................................... 30
LIST OF ANNEXURE.................................................................................................... 31
REFERENCES............................................................................................................. 32

Overview of Organization
MCB was founded by ISFHANI and ADAMJEE families in Calcutta on July 9, 1947. MCB is
not an overnight success story rather good track of services are responsible for the leaps and
bounds progress. After the partition of the Indo-Pak Subcontinent, the bank moved to Dhaka
from where it commenced business in August 1948. In 1956, the Bank transferred its registered
office to Karachi, where the Head Office is presently located. Thus, the bank inherits a 64 years
legacy of trust in its customers and the citizens of Pakistan. Muslim Commercial Bank (MCB)
unfolds 64 years of growth. MCB is not an overnight success story. The bank started corporate
life in Calcutta on July 9, 1947. After the partition of the Indo-Pak Subcontinent, the bank moved
to Dhaka from where it commenced business in August 1948. In 1956, the Bank transferred its
registered office to Karachi, where the Head Office is presently located. Thus, the bank inherits a
52-year legacy of trust in its customers and the citizens of Pakistan.

NATIONALIZATION
In January 1974, the Government of Pakistan nationalized MCB following the banks
(Nationalization) Act 1947, Premier Bank Limited merged with MCB.

CHANGE OF OWNERSHIP
The performance of MCB was badly affected by bureaucrat government. In January 1974, MCB
was nationalized by Bhutto Government following the bank act 1974 subsequently in June 1974
Premier Bank Limited merged with MCB.

PRIVATIZATION
In the late 1990 after long period of time newly established Democratic Government of Pakistan
have decided to sell nationalized assets of country for better utilization. In April 1991, MCB
became Pakistans first privatized bank. The government of Pakistan transferred the
management of the Bank to National Group, a group of leading industrialists of the country by
selling 26% shares of the bank. In terms of agreement between the Government of Pakistan and
the National Group, the group, making their holding 50% has purchased additional 24% shares.
Now, 25% is purchased by the Government, which shall be sold in the near future. A wave of
economic reforms swept Pakistan in the late 1990, introducing the need for privatization of state
owned banks companies. In April 1991, MCB became Pakistans first privatized bank.
8

The government of Pakistan transferred the management of the Bank to National Group, a group
of leading industrialists of the country by selling 26% shares of the bank. In terms of agreement
between the Government of Pakistan and the National Group, the group, making their holding
50% has purchased additional 24% shares. Now, 25% is purchased by the Government, which
shall be sold in the near future.

MCB TODAY
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 Pakistans economic reform movement and was later privatized
to Nishat Group lead consortium in 1991.Since privatization, MCBs 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 approximately.
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 billion approximately and total assets of PKR 605
billion approximately. 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.

Introduction
MCB is reputed as one of the most sound financial institution and as one of the leading banks in
Pakistan. 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.
During the last fifteen years, the Bank has concentrated on growth through improving service
quality, investment in technology and people, utilizing its extensive branch network, developing
a large and stable deposit base and managing its non-performing loans via improved risk
management processes.

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 in us with confidence.

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Our Values
These are the standards and principles which determine our behavior and how we interact with
our customers and each other:

Integrity
We are the trustees of public funds and serve our community with integrity. We believe in being
the best at always doing the right thing. We deliver on our responsibilities and commitments to
our customers as well as our colleagues.

Respect
We respect our customers values, beliefs, culture and history. We value the equality of gender
and diversity of experience and education that our employees bring with them. We create an
environment where each individual is enabled to succeed.

Excellence
We take personal responsibility for our role as leaders in the pursuit of excellence. We are a
performance driven, result oriented organization where merit is the only criterion for reward.

Customer Centricity
Our customers are at the heart of everything we do. We thrive on the challenge of understanding
their needs and aspirations, both realized and unrealized. We make every effort to exceed
customer expectations through superior services and solutions.

Innovation
We encourage and reward people who challenge the status quo and think beyond the boundaries
of the conventional. Our teams work together for the smooth and efficient implementation of
ideas and initiatives.

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Organizational Structure of the MCB Branch Ghalla Mandi,

Gujranwala

Branch Manager

Operational
Manager

Advances

Cash
Departmen
t

Forex
Departmen
t

Clearing

Remittance
s

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Accounts and types of Customers

Individual
Only one person can operate this account. We can call it a personnel or individual account
Followings are required to open it.

Signature of customer on back of Account Opening Form.

N.I.C photocopy attached
Mention next of kin (nominee)
Source of income

Joint
In case of joint Account, applicant mentions that how much person will operate the Account.
Instructions are given for joint Account such that the account shall be operated by any one of us
or survivor.
In first case if one of the account holders died then the other can operate the account individually.
In second case if one of the account holders died then the other partner cant operate this account
individually without having permission from the court.

Partnership Account
For partnership accounts, documents are also needed such as
Partnership deed certified copy
NIC photocopies of all partners.
Partnership mandate for account signed by all the partners
A letter duly signed by all the partners containing the operating instructions of the account
also has to be taken.
In case of addition or withdrawal of any partner a new agreement will be required.

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Company Account
For company accounts following documents are required

Copy of certificate of incorporation

Memorandum of Association
List of Directors
Copy of board resolution
Certificate of Commencement of Business
Copies of NIC of Directors
Companys Balance Sheet

Accounts Department
Every transaction which takes place recorded in the computer so all transactions in different
departments are forwarded to account department. Since all vouchers from different departments
are forwarded to accounts department so this department tallies all such transactions with current
department after maintaining the ledger of each department. I was not allowed to use software
but I observed all the functions performed. Following are different functions performed by this
department:

Preparation of Financial Statements for different time span

Maintain all accounts of different departments
Calculation of profit on different schemes
Calculation of markup on different advances
Preparation Different types of reports for State Bank
Daily position of cash & every accounts
Matching daily summaries of all departments with ledger

DEPOSIT ACCOUNTS
Current Account
MCB Bank offers a variety of current accounts to cater to the everyday transactional needs of
various customers. The different accounts include: the basic account that has no minimum
balance; Business Account offering free online transactions, Demand Drafts, Pay Orders and lots
more to meet the day to day business requirements; Current Life Account which offers the
security of life insurance free of cost; and for all the others the conventional Current Account.

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Savings Account
It offers a wide array of savings products that suit short term growth & transactional needs. Our
savings accounts offer attractive profit rates as well as flexibility to transact. Savings Xtra is
targeted for customers having Rs. 5 million deposit, 365 Gold offers profit rate on daily balance
while PLS savings has a lower minimum balance requirement. In addition, a unique product:
Smart Savings is an account run solely via a debit cart, offering a very competitive rate to small
savers.

Foreign Currency Account

Enjoy the confidence of op4erating an international account, locally. MCB Foreign Currency
Account offers the option of earning attractive returns on your Foreign Currency Investment.

Saving 365 Gold

MCB Savings 365 Gold Account offers you a wide range of attractive profit rates. The MCB
Saving 365 calculates profits on a daily product basis and gives you the facility of unlimited
withdrawals.

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.

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 MCB Term Deposits offer attractive short to mid-term
investment options with flexibility, convenience and security. With various tenor options
available customers can choose one that suits their needs. This is combined with different profit
payout options and the added facility of being able to avail credit facility against their deposits.

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Business Accounts
MCB Business Account lets you build your business through the accrued savings from
discounted transaction fees, and more

Saving Xtra Account

MCB Savings Xtra Account offers you a wide range of attractive profit rates. Grow with MCB
Xtra by saving more and earning greater profit.

Current Life Account

The coverage you need for the life you lead. MCB Current Life gives you the peace of mind of
comprehensive life insurance in a current account and fits right into your lifestyle.

Term Deposits
Term deposits are fixation of certain amount of money for a specific span of time. The
instrument term deposit is like a slip containing issuing bank name, account number to operate
on computer, deal number, customer name, reference #, date of issue, amount, rate maturity date
etc.

Closing of an Account
There is number of reasons of closing an account. Some are listed below:

If customer desires to close his account

In case of death of one account holder
Bankruptcy of the account holder
If an account contain nil balance or not up to the requirement of rules.
Before closing any account, bank send letter to the account hold for informing him that
his account is going to be closed. There is need an approval from higher authority to close
any account.

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General Banking Operations

Payment of Cheques
The first work that was assigned to me was Scrutiny of cheques. It is considered, as the simplest
work in consumer banking operations, but actually it is not that simple. The cheques that are
presented for either payment or for deposit are the main points where most of the frauds occur.
There are few points to be noted while scrutinizing a cheque for payment or deposit

Date of the cheque

Signatures of drawer
Signature of Presenter
Amount in figures and words
Branch stamp
Account number of the drawer
Lines at left corner of cheque Crossing in favor of any other person

The cheques which are presented for deposit in accounts of customers for them a pay-in-slip is to
be filled in with a cheque number and attach the cheque is presented along with that slip. As the
cheques are taken for deposit in customers account, a Cheques Receipt Summary is prepared in
which cheques are entered according to their category, i.e., Transfer Delivery, Clearance or
Collection.

PayIn Slip
This slip is used for depositing the additional amount. The bank will accept the Pakistanis notes.
All cheques and other instruments should be crossed before they are deposited for credit into the
account. There shall be no restriction on number of withdrawals in current account. An account
holder wishing to close his account must surrender the unused cheques to the bank. The current
account is computerized, thus it generate the statement of account for all account holders
periodically.

Remittances
The need of remittance is commonly felt in commercial life particularly and in every day life
general. A major function of any banking system is the transfer of funds from one client or one
place to another. By providing this service to the customer the bank earns a lot of income in the
form of service charges. MCB used following instrument for transferring of money.

Demand Drafts (DD)

Pay Order (PO)
Telegraphic Transfer (TT)
Mail Transfer (MT)

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Demand Drafts (DD)

DD is a written order given by the branch of the bank on behalf of the customer to other branch
of the same bank to pay the certain amount to the customer. DD are issued for the particular
place other than place of issuance. A drafts is a Cheque drawn by a bank on its own branch or
any other branch of another bank at a different place requesting it to pay on demand a specified
amount of money which is already received to the person named on it. DD is of following two
types
DD payable
DD Paid Suspense account
In the first type as advice reaches for payment the immediately pay to the customer while in later
as DD presented by the customer, it is paid and the suspense account is debited.
A printed application form is provided for filling in completely and signing by the applicant.
After depositing an amount of draft and commission of the bank, duly completed and signed by
two authorized officers, then it is handed over the applicant and credit order is dispatched to
drawer branch.

Pay Order (PO)

For this kind of remittance the payer must have the account in the issuing bank. Pay order are
more liquid as compared to cheques because cheques may be dishonored while PO cant be. It is
written order issued by the bank drawn and payable on itself. It is also used by the public for
depositing money with Government or Semi Government department. The party who requires a
pay order will get a printed application from the bank. He will fill it and deposits the amount and
commission.

Cancellation of Pay Order and Demand Draft

Any type of pay order /Demand draft is cancelled buy the permission and instruction made by
the beneficiary. The client could only cancel the pay order/and demand draft as verified
signatures of beneficiary.

Telegraphic Transfer (TT)

In this case the authority is given from one bank to other on the behalf of the customer through
telecommunication to debit their inter office account through them and credit their parties
account mentioned in TT. It is an inter bank transaction. Telegraphic transfer is an instant transfer
of funds. Through this method applicant can transfer money from one place to another place.

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There are two types of TT, Both types of TT are maintained in separate registers, test is applied
by the manager of every amount of TT.
Incoming TT
Outgoing TT
Applicant has to fill a form along with depositing amount to be transferred and bank
commission. MCB charges the commission at the same rate as in the case of demand drafts.

Documentation

Issuing Branch Name & Code

Beneficiary Branch Name & Code
No. of TT
Amount in words & Figure

Clearing House
All the external functions of clearing are carried by NIFT (National Institute of Facilitation
Technology) while the internal operations are performed by clearing department. It is just like
any courier service which takes the cheques of other banks and delivers the cheques of that
branch to it. Clearing is a system by which banks exchange cheques and other negotiable
instruments drawn on each other within a specified area and thereby securing the payment for its
clients through the clearing house.
A clearing house is a general organization of the banks at a given place, Its main purpose is
offsetting the cross obligation in the form of cheques. It depends on those cheques that are
cleared may be local or intercity. The operation of clearing refers to the collection of cheques
drawn on other banks. These cheques may be drawn on UBL, HBL, NBP, or any other bank of
Pakistan. The respective officer collects all cheques and enters them in clearing Sheet. Then he
affixes stamps on these cheques and sorts out cheques of different banks and prepares schedule
for them.

Inward Clearing
It depends on those cheques that are cleared inter branch and within the city. As the concerned
branch receive any type of clearing cheques first of all physical checking is taken place. For
clearing procedure it takes 2 days. These cheques have their vouchers and the amount of the
cheque. Than these cheques are stamped and noted on receiving sheet as well as Debit the
account title by the specified amount.

Outward Clearing
It depends on those cheques that are cleared out of city. For outward clearing cheques are send
because the home branch has their accounts but checks are of other banks. Contras of these
Cheques are voucher that are recorded in the home branch.

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Locker
MCB also provides locker facility to its valuable customer where of people can kept their
precious things like gold, property Documents etc. The client is free to store anything without
any permission.

Issuance of Travelers Cheques

The banks issue the traveler cheques for the convenience of their customer and charge a small
amount of commission.

Issuance of Cheque books

In order to withdrawal his funds from the bank with a cheque, the accountholder can make
request for cheque book on the requisite slip thats shows the account title and two verified
signatures. The bank staff do online request of cheque book. It takes 6-7 working days for
cheque book. The NIFT makes delivery of cheque books to the MCB. At the time of receiving
the accountholder sign the requisite again and handover the cheque book. In case of third person
receiving the authority letter is needed for delivering the cheque book to him.

Issuance of Auto Teller Machine (ATM) CARDS

Head office issues ATM cards with their PIN. When the customer Claims for their ATM cards he
fills the Application for debit card. The customer has to be verified with original CNIC and sign
the register and handover the card to the customer after verification. The ATM card has been
activated by calling at MCB helpline and gets the Pin number.

Cancellation of ATM Cards

The cancellation of ATM cards becomes necessary in the following conditions:

If folded or Damaged
Stolen
Pin code missed or forgotten
Cards captured by the machine and expired
If requested by the customer

The cancellation or inactivity of the card is being processed by the request or instructions
provided from the customers

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Credit/Advances Department
It is another major department of the branch. Bank provides this facility to the people who need
advance money to meet their requirements. For getting the advances, the first step is the
preparation of credit proposal. Some principles of lending are considered whenever financing
being is made. These principles are

Character
Capacity
Collateral
Capital
Condition

Required Information

An assessment of his business abilities

Accurate & up-to-date financial statements
Market reports about the borrower
Party dealing with other banks
Nature and structure of borrower business
Names of proprietors, partners or Directors
Detail of companies associated with borrower business
Financial condition of borrower business

Preparation of Credit Proposal

At first, a formal application for credit approval is obtained from the party along with complete
group position. The parties credibility report is also obtained from the banks from which the
party has been doing the business.
For obtaining credit, party has to submit the last two years Balance Sheet and Profit & Loss
Statement duly attested but authorized auditors. If the party also involve in export or import
business then the bank also consider the data of three years about imports and exports.
The Current and Debt equity ratio is also calculated by the bank. Then recommendations are
made the type of data required to prepare the credit proposal is to be gathered from different
departments. Some data is obtained from the foreign exchange department. Some data is
obtained from current account department and some data is available in Advance Department.
The purpose for which the financing is required should be explained very clearly. The securities
offered by the party to the bank are also evaluated.
In case of pledging of the property in shape of land or building the complete evaluation of the
property should also be attached. After all the requirements and necessary documents for

21

applying for advances is fulfilled by the party then, the case is sent to the Chief Manager for
approval. If the manager has identified any discrepancies, he may write on these documents.

If the credit limit is in his range, he may approve the party for credit. If the amount is exceeding
the Chief Manager send the case is forward to the Circle Office for approval and here the same
procedure is repeated and if the credit amount is in the range of GM, he can approve
If the credit amount is very large from Circle Office, the case is then sent to Head Office and if it
is a real big then is to be decided by Board of Director. MCB provides advances which are two
types. These are two types of advances

Secured Advances
Unsecured Advances
In Secured Advances, the bank takes any security against the loans while
In case of unsecured advance no security is taken by the bank.

Types of Advances
MCB divided the advances in to two major types
Fund Based
Non Fund Based
In the Fund base advances, the Funds of MCB is involved
In the Non-Fund based only Guarantee is given by the bank.

Fund Base Advance

MCB have following Fund base facilities of advance in its corporate branches.
Demand Finance (DF)
Cash Finance (CF)
Running Finance (RF)

Demand Finance
This is a type of secured loan and demand loan never allowed without security. It is a type of
long term financing. MCB also gives loan under the head of demand finance to individuals,
industrial units commercial business etc.

Cash Finance
In this, the borrower gives a specific reason for the need of cash. MCB gives the facility of cash
credit to business. The amount is passed through voucher and credit to the party account.

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Running Finance
These finances as evident by the name are given to the business to meet their daily needs. The
mark up is charged on daily balances. These types of advances are given to trade, commerce and
manufacturing for general purpose. It is drawn through Cheque.

Non-Fund Base Advance

Guarantee
Counter-Guarantee means any signed undertaking, however named or described, that is given by
the counter-guarantor to another party to procure the issue by that other party of a guarantee or
another counter-guarantee, and that provides for payment upon the presentation of a complying
demand under the counter-guarantee issued in favor of that party;
Demand Guarantee or Guarantee means any signed undertaking, however named or described,
providing for payment on presentation of a complying demand. Applicant means the party
indicated in the guarantee as having its obligation under the underlying relationship supported by
the guarantee. The applicant may or may not be the instructing party. Beneficiary means the
party in whose favor a guarantee is issued. Guarantor means the party issuing a guarantee, and
includes a party acting for its own account.

Foreign Currency Deposits

The foreign currency deposits relates with the foreign currency accounts , cash deposited or
credit and foreign remittances

Foreign Remittances
In this we received the messages through SWIFT for foreign remittance, which we record in their
respective accounts, if these are relates with Pak rupees than it was transferred in Pak rupees
with the latest rates.

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SWOT Analysis
The overall evaluation of a company, s strength, weakness, opportunities, and threats is called
SWOT analysis.

Strength
The main strength of the bank lies in its services. The other fact that contributes is approaching
to each segment of society .another positive concern that becomes the strength of the bank is its
innovation some others are as follows.

Bank reputation
MCB has made a status of a compact economic institutions over 60 years it focus on growth
done enlightening services quality investment in technology and people developing its extensive
branch network and evolving a large and stable deposits based . MCB is the first Pakistani
privatized bank and because of its quality management, marketing, innovation in products and
services is performing well in financial market. It has established a good reputation in the
banking market.

Technical management skills

Different department of the MCB bank are developed with technical management skills different
issues are technically managed to avoid any disturbance and to run the business smoothly.
Flexibility exists with the changing environment. Induction of the highly qualified professionals
to change overall set up of organization.

Customer satisfaction
MCB bank enables the customer thorough providing those appropriate services and guiding them
in their investment choices. Customer always reliable and believe MCB. Bank believes in
building and keeping close relationship built on supreme care and devotion itself as an
compliment to MCB credit. Better focus on customer services and customization

Promotion effectiveness
MCB has developed a very encouraging promotional principle which create great loyalty and
motivations in employees towards the bank.

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Team based approach

MCB is team of loyal determined and faithful experts who keep quality of services done
outstanding performance and presentation. In MCB bank there established a team determination
and accord among employees projects are accomplished through members connectively working
as team.

Continual improvement
MCB bank held diverse training programs which enables the members or staff upgrade their
knowledge .MCB has taken initiative to introduced new schemes regarding its product and
services .in this way it continuously made improvement in its employees and services. Strong
and its attractive products.

Seek for quality

MCB bank always tries to give its customers quality product and services to keep them
permanent client of bank. It always uses different channels to improve the quality.

Employee esteem and dignity

Every employee in the organization is given due respect and owner irrespective of its status and
level .employee feel proud to be a part of the organization.

Large number of branches

MCB is function by the great net work of 100 plus online branches nationwide MCB determined
constantly to develop and enhanced its branch network day by day to confirm satisfy and
approachability to its customer.

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Weakness
Less efficiency from staff
The bank management is unable to utilize optimum productivity from the staff. The matter of
fact is that staff is skilled and experienced but that are not utilized properly to gain optimal
productivity Process of development is bit slow due to its conservative approach. Never prefer to
be a leader and prefer to be a follower of others.

Overload staff
Staff is overburdened with unproductively tasks from the management .employee should be used
when and where required to get maximum output from them. Right man for right job should be
used. The bank should concentrate upon increasing its abilities on individual service basis.

Late sitting trend

The most prominent fault in the banks management is that late sitting is becoming the trend of
the bank. Although, overtime or late sitting in necessary for the sake of meeting deadlines .but
late sitting without purpose is of no use in MCB late sitting is now trend. If they utilize their
proper time then they do not need sit late in the evening.

Lack of organization dedication

Organization loyalty has deficiency between employees. Employees dont pay attention to their
tasks as they think their job as permanent. More emphasis on deposit accumulation and less on
their mobilization

Attitude of seniors towards to juniors

Attitude of seniors has to change toward to juniors .some time seniors attitude are not
professional. Some seniors get the advantage of their seniority and they treat the juniors harshly
if they do not perform according to their will.

Lack of leadership qualities

For the proper performance towards the achievement of organization goals a strong working
environment is necessary and to create this environment senior should play the role of leader.
They should understand the problems of their subordinates and try to solve their problems and
build a strong relationship that results in the achievement of organization goals efficiently and
effectively.
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Opportunities
New Contracts
MCB bank enter into contract with other banks to use each other ,s ATMs which will result in an
increased accessibility to MCB customers and customers of other banks as well as all around the
world settlements money are strictly observed so as the money paid may not fall in hands of thus
termed extremists for that all predictable money filtering done HUNDIES have been still there is
an opportunity for MCB to spread its branch network to several countries highlighting mostly on
introducing electronic fund transfer services.
Different banking courses can be offered for improving of banking staff

Market share

More mobilization of accumulated deposit is possible through innovative financing

Agro Based Sector
Leasing
Personalized Financing
Can grab more market share for its RTCs, remittances and forex
department through effective management

Management skills
Different management skills courses should be introduced to employees in order to make them
familiar management abilities. Inclusion of highly qualified professional can change the whole
scenario and position of the bank if they have given the due liberty in performing their duties.

Technological Changes
Various refresher courses should be conducted for the staff to keep them abreast. Fast
improvement and acceptance of technological changes. Adoption of information technology will
improve the customer services.

Foreign training
Staff should be sent for some foreign courses in order to known them for global progress in their
respective fields.

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Threats
Competitions are increasing day by day
Due to the increase in the number of conventional commercial banks, there is an increase in
competition. Also there is a lot of aggressive marketing by the competitor banks .this is also a
threat for MCB bank. it should advertise extensively especially RTC and Master Cards. The
Competition has become severe by the entrants of so many banks, So to exist one will have to
prove himself in its services through excellent management and will have to satisfy its
shareholders. Otherwise he will be out the market.

Increasing interest rates

Due to increases in interest rate against loans customer and investors cannot get loan from
bank .customer will feel unhappy and they are enable to take much loans which will decreases
the business of bank.

Instability of government policies

Government policies changing day by day and government stability is not there. Change in
government policies has affected the banking business. Still banks have to wait to get permission
of state bank. The freezing of foreign currency accounts is a vital example of letting people not
to trust on banks.

Entrance of foreign banks in local market

Increasing number of foreign bank is entering day by day in local market .which is increasing
competitive market of banking sector. Introduction of credit marketing by local and foreign
banks is badly affecting the mobilization of the MCBs deposits due to the non presence of such
department in it.

Weak economic condition of Pakistan

Weak economic condition of Pakistan is producing hindrance in the way to progress because
people are not in good financial position to do business themselves or to finance it from the
banks. The decrease purchasing power of consumer in the current economic situation of the
country affecting the business activity speed too much and the result is the low investment from
the investors in new projects can create problem for the bank because it is working a lot in trade.

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PEST Analysis
Political
Employment practices are expected to change.
Unions, Associations are being allowed to work effectively which can
affect the performance of the company both positively or negatively.
Political interference regarding policies is expected to increase as current
government is in race of power gain.
Due to lack of confidence on government investor is reluctant so
mobilization of funds is going to decrease.

Economic
Inflation is very high which will decrease the demand as purchasing power is decreasing.
Staff cost is increasing as basic wage rate has increased and inflation has compelled to will
compel to increase salaries.

Operating costs are increasing due to inflation.

Interest rate is increasing so loan taking has decreased.
Value of rupee is decreasing which is pressurizing the economy.
Social and Cultural
Lack of experts is in our country regarding management hence innovative activities are slow and
conventional methods are adopted.
Cultural strain to savings is the reason due to which investment remains low.
Declining work ethics is also our problem which is mainly due to poverty
Lack of training
Inadequate Accountability lack of good governance and lack of good
infrastructure helps creditor to cheat and heavy bad debts occur.
Same situation is hoped to prevail.
Inadequate Empowerment is also a usual problem in our organization as
every person want to get more power hence there is less delegation of authority and
decision making.

Technical
MCB has computerized its most of the branches but still some are manual there is need to
computerized otherwise customers will get bad image. Now a days computerized system is used
by banks which are very effective. MCB will have to improve its computerized technology as
some fake transactions occur by ATM. Shortage of electricity is a big problem. Employees of
each organization need IT training and organization has this trend. MCB will have to follow it.

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Conclusion
MCB is providing their customers with variety of services including online banking. Virtual
banking and some of their new products in the pipeline, include ATM network etc. shows that
MCB bank is taking good care of their customers.MCB bank made heavy investments, towards
enhancing its competence in the area of automation and technology .MCB is well positioned to
meet client needs, with improved competitive advantage.
During my stay at bank MCB I have observed that some people are overburdened and some
people used to sit idle for most of their working hours. There should to work load analysis for all
employee and work load should be distributed respectively keeping in views the capacities and
capabilities of employees. The bank should improve its online transaction system and intranet.
Bank should improve its online transaction system .new marketing strategies should developed
to attract customers.
More training and developments programs should be lunched in order to clear the concepts of
employees about new products and banking techniques there is need to develop a good
relationship among employees and their seniors.

Recommendations and Suggestions

From the quantum of the profit and its financial data it can easily judged the after privatization
Muslim Commercial Bank is performing well. Its deposits are growing day-by-day and so its
profitability. The controlling body is responsible for the productive performance of the bank.
Following are my observations and suggestion to improve the efficiency for the development of
the bank.
In some branches of MCB there is a problem of staff shortage .there are only few employees who
are the be all and end all of the whole branch resulting in burden of work shortage of staff should
be handled timely. Most of the bank employee are sticking to one seat only with the result that
they become master of one particular job and lose their grip on other banking operation. In my
opinion the entire employee should have regular job experience all outlook towards banking job
rotation is must for making people and assets fir the company.
Banks should give some incentives to its employees in order to remove the conflict between
lower and higher officers and should try to improve the working condition of bank. The period of
internship should be divided into the number of department of the MCB the internee should be
given time table mentoring the number of days he has to work at different places in the bank on
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each department internee should be given lectures by the officers of the department concerned
about working of the department.

LIST OF ANNEXURE
ACCOUNT OPENING FORM
DEBIT VOUCHER
CREDIT VOUCHER
SPECIMEN SIGNATURE CARD
CHEQUE BOOK REQUISTION
CHEQUE RETURN MEMO
CHEQUE STOP PAYMENT
ATM APPLICATION FORM
ATM TRANSACTION DISPUTE FORM
CREDIT CARD DEPOSITE SLIP
FUND TRANSFER APPLICATION

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REFERENCES
http://en.wikipedia.org/wiki/MCB_Bank_Limited
https://www.mcb.com.pk/mcb/about_mcb.asp
https://www.mcb.com.pk/mcb/mission_vision.asp

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