Internship Report

Internship Report on MCB Bank
INTERNSHIP REPORT ON
MCB BANK LTD (BAGHBANPURAN BRANCH)
SUBMITTED TO:
MUGHIRA BADAR
SUBMITTED BY:
KINZA IRSHAD
ROLL # 1060
BBA
University of Sargodha
Lahore Campus
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Contents
HISTORY OF THE MCB BANK LIMITED ............................................................................................... 7
MCB Bank Today .................................................................................................................................. 7
Awards and Achievements of MCB: .................................................................................................... 8
Vision Statement ....................................................................................................................................... 9
Mission Statement..................................................................................................................................... 9
Our Core Values ....................................................................................................................................... 9
NATURE OF THE ORGANIZATION ...................................................................................................... 10
ORGANIZATIONAL SETUP OF MCB .................................................................................................... 11
Mediocre level MANAGEMENT........................................................................................................... 12
ORGANIZATIONAL STRUCTURE OF THE BRANCH ........................................................................ 12
DEPARTMENTS OF Baghbanpura branch Lahore (0181) ....................................................................... 13
CLEARING DEPARTMENT................................................................................................................. 14
REMITTANCE DEPARTMENT ........................................................................................................... 15

ACCOUNTS DEPARTMENT ............................................................................................................... 16
CREDIT DEPARTMENT ...................................................................................................................... 17
FOREIGN EXCHANGE DEPARTMENTS .......................................................................................... 18
INTERNAL CONTROL DEPARTMENTS ........................................................................................... 18
Products and services offered ..................................................................................................................... 18
MCB ONLINE SERVICES ........................................................................................................................ 20
MCB CARDS ......................................................................................................................................... 20
MCB INVESTMENT BANKING .......................................................................................................... 22

ISLAMIC BANKING ............................................................................................................................. 23
My Internship experience & Fields of Activities ........................................................................................ 25
FUNCTIONS OF DEPOSIT DEPARTMENT ....................................................................................... 27
CLEARING DEPARTMENT................................................................................................................. 28
REMITTANCE DEPARTMENT ........................................................................................................... 30
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ADVANCES DEPARTMENT ............................................................................................................... 32
LOAN AGAINST PLEDGE OF STOCKS ............................................................................................ 33
Pest Analysis ............................................................................................................................................... 34
SWOT Analysis .......................................................................................................................................... 35
Recommendations ....................................................................................................................................... 36
Conclusion .............................................................................................................................................. 38
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DEDICATED
THIS REPORT IS DEDICATED TO MY BELOVED
PARENTS AND TO MY RESPECTED TEACHERS FOR
HAVING FIRM BELIEF IN MY ABILITIES & WHOM
PRAYERS ENABLED ME TO ACCOMPLISH THIS
MILESTONE
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Acknowledgement
First of all Im grateful to ALLAH ALMIGHTY, who
bestowed me with health, abilities and guidance to
complete the project in a successful manner, and without
HIS help I was unable to perform this task. I want to
express my most humble gratitude to my supervisor and
all other teachers and class fellows who furnished me
with the opportunity to complete report I m also thankful
to the oprational manager Sir Tanveer Hussain of MCB, I
am also grateful to my Supervisor Sir salman And Miss
Rubab syed & my colleagues and friends who provided
with the moral support during the completion of this
report.
KINZA IRSHAD
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EXECUTIVE SUMMARY
The banking structure in Pakistan comprises of the following types,
The state Bank of Pakistan,

Commercial Bank of Pakistan;
Exchange Banks,
Saving banks,
Cooperative banks,
Specialized credit institutions.
Bank of Pakistan is the Central bank of the country and was established on July 01, 1948. The
network of bank branches now covers a very large segment of national economy. The State Bank
of Pakistan issues the shares of these periodically. Bank employees and other common people
can also purchase these shares and earn profit. In 1956, MCB transferred its registered office to
Karachi, where the Head Office is presently located. In April 1991, MCB became Pakistans first
privatized bank.
The corporate branch at Shah rah-e-Faisal Karachi (SFK) branch is the corporate branch of MCB
in Karachi. The bank is using SWIFT for transfer of information about imports and exports.
MCB SFK branch has Currently Following three Departments
1) General Banking Department
2) Advances Department
3) Foreign Exchange Department
MCB is one of the leading banks of Pakistan incorporated in 1947 MCB Bank has made
significant contributions in building and strengthening both corporate and retail banking sector in
Pakistan.
This report is an upshot of my Six weeks internship in MCB Bank of Pakistan. MCB of Pakistan
possesses an imperative and historical importance in the banking sector of Pakistan. It always
remains the center of hustles in business activities. The main purpose of internship is to learn, by
working in practical environment and to apply the knowledge acquired, during the studies, in a
real world scenario in order to tackle the problems. In this report the detailed analysis of the
organization has been done and all the financial, technical, managerial and strategic aspects have
been evaluated to analyze the current position of the organization. Along with it, the background
analysis, the prevailing competition analysis, the business process analysis, and the internal
environment and external environment of the organization have been discussed and the
recommendations & suggestions for the improvement have been made wherever required.
During my Six weeks internship program, I mainly worked with the following departments
General Banking Department
o Clearing Department
o Remittance Department
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Credit Department
Accounts Department
Foreign Trade
Internal Control Department
HISTORY OF THE MCB BANK LIMITED

Before separation of Indo Pak, the need for more Muslim banks was felt. And Muslims having
strong financial capacity were thinking to invest in this sector as well. This was the idea which
paved the way for setting up MCB Bank Ltd known as MCB. This was the third Muslim bank in
the subcontinent.
This bank was incorporated under companys 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. This institute was nationalized
with other on January 1st, 1974. At that time it had 506 branches and deposits amounting to Rs.
1,640 million. Although. MCB has a reputation of a conservative bank but nationalization also
left its effects on this institute as well and by end of year 1991 in which it was privatized the total
number of branches were 1.287 and deposits amounting to as high as Rs. 35,029 million
MCB Bank Today

MCB today, represents a bank that has grown with time, experience and Pakistan. A major
financial institution, in scope and size, it symbolizes a fully growing tree evergreen, strong, and
firmly rooted. MCB has significant contributions in building & strengthening both corporate and
retail banking sector in Pakistan. MCB Bank Ltd in 2009 delivered a profit before tax of Rs. 23.2
Billion registering a growth of 6% over last year This growth is directly attributable to an
increase of 14% in cash deposits, 21% in revenues and a tight control on expense base enabling
to retain position as one of the most profitable banks in the country.
In 2009, MCB delivered a superior return on equity of 27.4% and assets crossed the Rs. 500
Billion mark. This performance is all the more remarkable keeping in view the economic &
political challenges faced by the country during this past year and miscreant created issues that
MCB specifically grappled with for a large part of the year. MCB fundamental belief is that a
financial services company can only succeed if it meets its customers needs. If they can
understand customers financial objectives and offer them the right products and services so that
they can be financially successful, then MCB Bank will continue to build on its leadership
position and provide requisite returns to its shareholders. During 2009, MCB took several
initiatives that brought even closer to their customers. With the launch of MCB Privilege, MCB
became the first local bank to offer a dedicated proposition for the affluent segment; to meet the
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growth and protection needs of customers, we introduced Bancassurance and Investment
Products in many of our branches; to enhance transactional convenience for customers, MCB
became the first Pakistani bank to launch mobile banking. These coupled with several other
initiatives enabled us to continue on the path of growing customer base and profitability. Last
year, to expand and reach customer proposition, MCB also reached an agreement with RBS
Pakistan to acquire their business. Unfortunately, the deal did not go through but bank continue
to invest organically to further strengthen businesses.
Awards and Achievements of MCB:
2013 The Asset Triple A:
2013 ICAP and ICMAP:
2013 LK Domain Registry Sri Lanka:
2013 Lanka Clear Pvt. Limited:
Best Domestic Bank - Pakistan

Best Islamic Deal
1st - BCR Award 2012 - Banking Sector
Best Website Award
T+1 Cheque Clearing Award

2012 Euromoney:
2012 NFEH:
2012 World Finance:

2012 Pakistan Centre for Philanthropy:
Best Domestic Bank - Pakistan

Best Bank in Pakistan
CSR Business Excellence Award Best Media
Coverage
2nd Best Corporate Report Award 2011 - Banking
Sector
Best Commercial Bank - Pakistan
PCP Corporate Philanthropy Award
2011 CFA Association Pakistan:

2011 CFA Association Pakistan:
2011 Euromoney:
2011 ICAP / ICMAP:
Most Stable Bank of the Year

Best Bank of the Year
1st - BCR Award 2010 - Banking Sector
2011 SAFA:
Joint 2nd Runner-up for BCR 2010
2010 MMT Award:
Worlds Best Mobile Money Transfer Bank
2009 Asiamoney:
2009 The Asset:
Best Domestic Bank in Pakistan

2008 Euromoney:
2008 Euromoney:
2008 Asiamoney:
Best Bank in Asia

2006 Asiamoney:
2006 Euromoney:

2005 Asiamoney:
2012 ICAP and ICMAP:
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2005 Euromoney:
2004 Euromoney:
2004 Asiamoney:

2003 Euromoney:
2001 Euromoney:
2000 Euromoney:

Vision Statement
Challenging and changing the way you bank
Mission Statement
To become the preferred provider of quality financial services in our country with the
profitability and responsibility and to be best place to work
Our Core Values

CUSTOMER FOCUS
We treat each of our customer equality & as the most important person while we interact with
him/her. We must ensure that we do everything to meet and exceed the customers expectations
with perfect to times, accuracy & quality services.
EMPLOYEE RESPECT AND DIGNITY
We treat each of our employees with fairness, which includes giving constructive feedback for
their development. We celebrate diversity and seek suggestions from all employees for
improvement. We ensure that responsibility & fairness in all our decision-making.
We work towards achievement of our vision & mission as a combines group. We encourage inter
& intra-departmental communications. We treat our colleagues as our internal customers &
ensure that the requirements of internal customer focus are always met.
TEAM BASED APPROACH
We work towards achievement of our vision & mission as a combines group. We encourage inter
& intra-departmental communications. We treat our colleagues as our internal customers &
ensure that the requirements of internal customer focus are always met.
QUEST FOR QUALITY
We ensure that each moment of our time is spent on value adding activity. We always seek ways
for exceeding expectations of customers & colleagues. We also ensure that we do things right,
first time every time.
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GOOD CORPORATE CITIZENSHIP
We ensure that we contribute our due share to the Govt. we realize that we have a responsibility
to the society in which we operate & we seek ways of playing a positive role for the betterment
of the community at large.
NATURE OF THE ORGANIZATION

MCB Bank Limited is a banking company incorporated in Pakistan and is engaged in
commercial banking and related services. The Banks ordinary shares are listed on all the stock
exchanges in Pakistan whereas its Global Depository Receipts (GDRs) representing two
ordinary shares are traded on the International Order Book (IOB) system of the London Stock
Exchange.
MCB Bank Limited is a Pakistan-based company. The Bank operates in four business segments
o
o
o
o
Corporate finance
Trading and sales
Retail and consumer banking
Commercial banking
CORPORATE FINANCE
Corporate finance includes underwriting, securitization, investment banking,
syndications; initial public offerings (IPO) related activities (excluding investments) and
secondary private placements.
TRADING & SALES
Trading & sales segment includes fixed income, equity, foreign exchange
commodities, lendings to financial institutions and brokerage debt.
RETAIL & CONSUMER BANKING
Retail & consumer banking includes retail lending and deposits, banking services,
private lending and deposits, banking services and retail offered to its retail customers and
small and medium enterprises.
COMMERCIAL BANKING
Commercial banking segment includes project finance, export finance, trade finance,
leasing, lending, guarantees and bills of exchange relating to its corporate customers. MCB
is one of the leading banks of Pakistan. Its deposit base of Rs. 368 Billion and total asset
saver Rs.500 Billion. MCB soon earned the reputation of a solid and conservative financial
institution managed by expatriate executives. In 1974, MCB was nationalized along with all
other private sector banks. The Bank has a customer base of approximately 4 million, a
nationwide distribution network of over 1,000 branches and over 450 ATMs in the market
during the last fifteen years, the Bank has concentrated on growth through improving service
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quality, investment in technology and people, utilizing its extensive branch network,
developing a large and stable deposit base
ORGANIZATIONAL SETUP OF MCB
1. ORGANIZATIONAL CHART
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Mediocre level MANAGEMENT

The organization chart within a department and in different offices is as follows:
Divisional Heads .. Head Office
Regional Head (EVP) .. Regional Office
Zonal Head (VP) .. Zonal Office
Branch Manager .. Branch
ORGANIZATIONAL STRUCTURE OF THE BRANCH

A well-developed and properly coordinate structure is an important requirement for the success
of any organization. It provides the basic framework within which functions and procedures are
performed. Any organization needs a structure, which provides a framework for successful
operations. The operation of an organization involves a number of activities, which are related to
decision making, and communication of these decisions. These activities must be well
coordinated so that the goals of the organization are achieved successfully
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DEPARTMENTS OF Baghbanpura branch Lahore (0181)

The departments are as under
General Banking Department
o Clearing Department
o Remittance Department
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Credit Department
Accounts Department
Foreign Trade
Internal
CLEARING DEPARTMENT
Clearing means collection of cheques receive from our customers but drawn on other
banks. Receiving the instruments deposited by customers posting the amount of instruments in
credit of customers account if cheque returns from the concerned bank, the customer account is
debited. Crossing stamp is put on the instrument and slip given to customer on receipt of the
instrument. Clearing stamp and payee account credited are put on the instrument and the
voucher. Clearing House has provided this facility. Clearing house facilitates different banks, in
one city, to get their cheques drawn upon other banks to be cleared.
Cheques lodged in clearing constitute in clearing constitute two types of clearing
a) Outward Clearing
b) Inward Clearing
OUTWARD CLEARING
Outward clearing means cheques sent for collection.
PROCEDURE OF OUTWARD CLEARING
o The name of the branch appears on its face where it is drawn
o It should not stale or post - dated or without date.
o Amount in words and figures does not differ.
o Signature of the drawer appears on the face of the instrument.
o Instrument is not mutilated.
RETURN OUTWARD CLEARING
o Over writing
o No stamp of clearing or if it is not clear
o No stamp of crossing or if it is not clear
INWARD CLEARING
Inward clearing means cheques receives by bank from other bank.
PROCEDURE OF INWARD CLEARING
o Instruments with schedules are received from NIFT.
o Amount of each instrument entered is in inward clearing register.
o Instruments are detached and handed over to the deposits and other respective
department for checking and payment.
CHECKING / RETURN OF INSTRUMENTS
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o Over writing
o No stamp of clearing or if it is not clear
o No stamp of crossing or if it is not clear
REMITTANCE DEPARTMENT
The Remittance department deals with the transfer of money from one place to another.
Funds transfer facility or remittance of funds is one of the key functions of the banks all over
a)
b)
c)
d)
e)
f)
the world. Remittances through banking channels save time, costs less and eliminate the
risks involved in physical transportation of money from one place to another. Muslim
Commercial Bank of Pakistan transfers money in the following ways.
Demand Draft
Pay Order
Mail Transfer
Call Deposit Receipt
Letter of Credit
Rupee Travelers Cheque
DEMAND DRAFT
It is used for payment made outside the city. It is writing on the name of head
office. Accounting entry by drawing branch. When the customer purchases a draft, the
drawing branch sends the advice (a copy of DD) to the drawee branch and the original
copy of DD is given to the purchaser. On the arrival of advice the drawee branch debits
HO account and credits the DD payable account. When the customer comes with the
original DD to the drawee branch, his account is credited by debiting the DD payable
account.
Charges Commission 50/- but if amount increase or decrease then it will also increase or
Decrease and FED 8/- also increase or decrease.
PAY ORDER
Payment Orders are issued for the money transfer within the city. Pay order is
made for local transfer of money. Pay order is the most convenient, simple and secure
way of transfer of money.
MAIL TRANSFER
A Mail Transfer is a form of remittance in which the amount remitted by a
customer or a non-customer is directly credited to the account of the beneficiary with
another branch. Move your money safely and quickly using MCB Mail Transfer service.
And MCB also offer the most competitive rates in the market. They charges Rs 50/exchange rate and RS 75/- postage charges on issuing mail transfer. When the money is
not required immediately, the remittances can also be made by mail transfer (MT). Here
the selling office of the bank sends instructions in writing by mail to the paying bank for
the payment of a specified amount of money. Debiting to the buyers account at the
selling office and crediting to the recipients account at the paying bank make the
payment under this transfer.
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CALL DEPOSIT RECEIPTS
It is a kind of deposit. This deposit does not offer any income or profit to the
depositors. Call deposit does not earn any income or profit following are the
characteristics of CDR
o No Zakat is deducted on Call Deposits.
o Call Deposit Receipt is issued in the name of Beneficiary
o Receipt is payable/encashable to beneficiary on proper discharge through
collection/ clearing/ internal transfer.
o When payment is made in cash over the counter, discharge of
the purchaser on revenue stamp of required value must be obtained.
o CDR is issued in favor of Government, Semi-Government, Institutions,
Corporations, and Semi-Autonomous Bodies etc as a security deposit.
o It is also issued in favor of Individuals.
RUPEE TRAVELER CHEQUE
MCB Banks Rupee Traveler Cheques enable you to travel with complete peace
of mind! Rupee Traveler Cheques provide a safe and secure solution that acts as an
alternative to the carrying of cash for travel and everyday use. These Cheques are
currently available in the Rs. 10,000 denomination and can be issued to individual PKR
account holders of Summit Bank. You can encash your Traveler Cheques through any
MCB Bank branch across Pakistan.
ACCOUNTS DEPARTMENT
Opening of account is the most important department of the Branch as this is a
contract between the customer and bank. All future transaction/operation are carried out
as per this contract and any deviation may jeopardize the banks interest. The opening of
a new account is the establishment of customer banker relationship. By opening an
account at a bank, a person becomes a customer of the bank. The customers can open
following accounts
o
o
o
o
Current Account (CD A/C)

Profit and loss sharing Account (PLS A/C)
Basic Bank Account (BBA A/C)
Fixed Deposit (FDR/TDR)
CURRENT ACCOUNT
MCB Bank offers a variety of current accounts that include: the basic account that
has no minimum balance; Business Account offering free online transactions, Demand
Drafts, Pay Orders and lots more; Current Life Account which offers the security of life
insurance free of cost; and for all the others the conventional Current Account.
SAVING ACCOUNT
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It offers a wide range of savings offering attractive profit rates. 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, Smart
Savings is an account run solely via a debit cart, offering a very competitive rate to small
savers
ACCOUNT OPENING
When a client comes to the bank, and makes a request for opening of an A/C. The
officer says that first fill up a prescribed application form. If he/she wants to open a PLS
A/C, then he/she has to fill a form according to the account.
REQUIREMENTS
ID Card of applicant
ID Card of father, mother, brother, sister, husband or wife
Student card (if applicant is student)
Two photos for illiterate person or those who use Urdu signatures
DOCUMENTS ATTACH WITH A/C OPENING FORM
A/c opening form

Specimen signature card
Zakat form (for non-Muslims)
Deposit slip
Requisition form
ISSUANCE OF CHEQUE BOOK

After opening an A/C with the bank, the A/C holder once again makes a request
in the name of bank for the issuance of a cheque book. The A/C holder mentions title of
A/C, A/C number, sign it properly and mentions the no of leaves he requires.
CREDIT DEPARTMENT
The bank is profit seeking institution. It attracts surplus balance from the customer at low
rate of interest and makes advances at a higher rate of interest to the individuals and business
firms. Credit extensions are the most important activity of all the financial institutions, because it
is the main source of earnings. Advances department is one of the most sensitive and important
department of the bank. The major portion of the profit is usually earned through this
department. The job of this department is to make proposals about the loans; the credit
management division of head office directly controls all the advances. The advances Department
receive application from intending borrowers. After receiving application the advance
department processes it further. After analyzing and detailed investigation, they decide whether
to approve the loan or not. Some loan approvals are made by the Manager of the branch within
his powers as prescribed by the banks higher authorities, while some loan applications are
submit to higher authorities for their approval.
Some advances are of the following nature
Loan against Gold
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Agriculture advance to farmers
Medium term advance for working capital
Long term advance for setting industry
Short term advance to businessman
FOREIGN EXCHANGE DEPARTMENTS

This department mainly deals with the foreign business. The main functions of this
departments are
o L/C dealing.
o Foreign currency accounts dealing.
o Foreign Remittance dealing.
L/C Dealing
MCB is committed to offering its business customers the widest range of options in the
area of money transfer. If you are a commercial enterprise then our Letter of Credit service is just
what you are looking for. With competitive rates, security, and ease of transaction, MCB Letters
of Credit are the best way to do your business transactions.
Foreign Currency Account Dealing
This department deals with the foreign currency accounts which mainly include
dollar account, euro account etc.
INTERNAL CONTROL DEPARTMENTS

Role of branch compliance department is to reconcile the prescribed frequencies,
investigate long pending reconciliation item, and ensure correct treatment every half-year and
clearing system service branch-in major cities. Internal control is the integration of the activities,
plans, attitudes, policies and efforts of the people of the bank working together to provide
reasonable assurance that the organization will achieve its objectives and mission.
Products and services offered

o Mobile Services
o An easy way to recharge mobile balances, pay utility bills, credit card payments, donation,
transfer funds, check account balance and review mini statements.
o MCB ATM Services
o MCB Online Banking
o ATM Smart Card enables you to access fast cash, inquire account balance, transfer funds and
pay utility and mobile bills from 550 MCB ATMs and over 4,500 ATMs nationwide.
o MCB Cash Management
o MCB Remittance
o It provides a seamless inflow of foreign remittances credited in the beneficiarys account.
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o MCB has a fast growing network of over 1,100 online branches in the country.
o MCB Corporate Financing
o MCB Corporate Financing provides access to diversified financing options, including
working capital loans, term loans, trade finance services and investment banking.
o MCB Islamic Banking
o MCB provides Riba Free and Shariah Compliant solutions to various customer segments.
o MCB Investment Services:
o It offers distribution of mutual funds managed by the leading fund managers of Pakistan.
o MCB Agri products
o It is fulfilling financing requirements of the farming community and facilitates in achieving
increased productivity.
o MCB Visa Credit Card:
o It offers Classic, Gold and Platinum Cards focusing on providing, superior service.
o MCB Car4U:
o It provides you a car with competitive mark-up & easy processing with no hidden costs.
o MCB SMS Banking
o SMS anytime to get info regarding balance, mini statements and credit card information.
o MCB Rupee Travelers Cheque:
o It is a secure way to make payments nationwide in denominations of Rs 1000, Rs 5000, Rs
10,000 and is valid for 10 years after purchase.
o MCB Lockers:
o Lockers of different capacities are available nationwide.
MOBILE BANKING
At the forefront of technological excellence, MCB proudly introduces MCB
MOBILE BANKING. MCB Mobile is a quick easy and secure way to recharge mobile
phones, transfer money, pay bills and do much more. No need to visit a branch or an
ATM anymore, login to www.mcbmobile.com using your mobile phone and start
transacting.
BILL PAYMENTS
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, Supernet,
IESCO,HESCO, and Ufone. So, save your precious time by avoiding long queues and pay
your bills through MCB Easy Bill Pay.
ONLINE BANKING
MCB has a fast growing network of over 1,100 online branches in the country
providing customers real time online transaction facilities.
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MCB ONLINE SERVICES
ATMS
MCB has one of the nation's largest ATM networks with over 450 ATMs and still
growing.MCB ATMs give you 24-hours convenience of cash withdrawal, mini-statement,
utility bill payment, funds transfer services and much more. With MCB Mobile ATM not
only do we provide you with world class banking service but we also provide convenience.
Our innovative mobile ATMs ensure that you are given service close to you.
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. Theres no easier way to bank than the new enhanced 24/7
MCB Call Center, which blends innovation and convenience to provide Banking Services
that go beyond expectations. With MCB Call Centre you can maintain your VISA credit
& ATM/Debit cards, check your account balances, confirm last 5 transactions, pay utility
& mobile phone bills, top-up your mobile, pay MCB Visa Credit Card bill from your
MCB account, transfer money within your own accounts in MCB and register complaint.
MCB CARDS
SMART CARD
MCB Smart Card is the key that enables access to convenient banking services.
Smart Card allows you to manage your account, withdraw cash, transfer funds, pay utility
and mobile bills, recharge prepaid connections, register for mobile and internet banking
services and much more. 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. MCB now brings MCB SmartCard -a secure and
convenient instrument of payment with unmatched functionalities. It provides 24-hour direct
access to your bank account.
VISA DEBIT CARD
Now MCB brings a secure, convenient and quick payment facility that enables
you to do purchasing by using your existing MCB ATM / MCB Smart Card as a DEBIT
CARD.
VISA CREDIT CARD
MCB offers a complete suite of Classic, Gold and Platinum Visa Credit Cards
focusing on providing, superior service, travel privileges & shopping pleasure. It also offers
comprehensive insurance & installment plans, reward points and SMS alerts that give a
different feel to the world of Credit Cards. These unique features include i-revolve, which
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makes variable mark-up rate available to customers allowing them to repay at affordable
rates.
MCB LITE CARD
Introducing the Worlds 1st Socially Connected Mobile Wallet powered by a Visa
Car the perfect combination to extract the maximum value out of your smartphone.MCB
Lite (pass it on) is a socially connected payments solution that saves you time and
money. Whats more, the time and money saved is not just limited to you as
these benefits extend to your inner circle - the 6 to 8 people you love and care about the
most and the ones whose lives are interconnected and interwoven with yours.We have
demonetized digital payments and have made them free of bank charges so that you and
your inner circle enjoy the benefits of being on the Mobile Payments Grid without the
worry of paying a charge every time you make a payment or access your money.You
only pay an annual fee and there are zero bank charges when you make payments and
conduct transactions using your Mobile Wallet or VISA card.You can apply for
the Mobile Wallet either through phone, internet or face-to-face and the starter pack will
be delivered to you shortly thereafter.
MCB CORPORATE FINANCING
MCB Corporate Financing provides access to diversified financing options, including
working capital loans, term loans, trade finance services and investment banking.
WORKING CAPITAL LOANS
Based on the customers 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.
TERM LOANS
MCB offers Short to Medium Term Finance to meet capital expenditure and short
term working capital requirements of our customers. The loans are structured on the basis
of underlying project characteristics and cash flows of the business.
TRADE FINANCE SERVICES
Under Corporate Banking MCB offers trade finance services that include an
entire range of import and export activities including issuing Letters of Credit (L/Cs),
purchasing export documents, providing guarantees and other support services.
CASH MANAGEMENT
Cash Management provides a wide range of value added services to large
corporations through its vast network of online branches. Our structured and customized
products enable our customers to realize their sales proceeds swiftly from all over the
country, supported by real-time MIS.
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TRANSACTION BANKING DIVISION
Transaction Banking provides wide range of value added services to large
corporations through its vast network of real-time online branches network. Our
structured and customized products enable our customers to realize their sales proceeds
swiftly from all over the country, supported by real-time MIS. The basic products offered
by Transaction Banking Division are as under
a)
b)
c)
d)
e)
Collections
Payments
Channel Financing
Local Rupee Drawing Arrangement
Home Remittances
MCB INVESTMENT BANKING

Make the most of your wealth with investment opportunities that match your
unique financial aspirations. MCB Investment Services offer distribution of mutual funds
managed by the leading fund managers of Pakistan. We can suggest the products most
suited for your needs, or work with you to create a personalized solution completely
focused on your expectations of the capital markets MCB goal is to provide best financial
solutions to client helping them achieving their objectives and support economic growth
of the Country. The basic services offered by investment banking are as under:
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 AND DEBT CAPITAL MARKETS
It involves structuring/advisory arrangement, underwriting and placement services
for significant financing requirements by large corporate and institutional clients to other
financial institutions or through the debt capital markets.
QUASI EQUITY/HYBRID INSTRUMENTS

It structures and places a category of debt that has some characteristics of equity
such as being unsecured, subordinated or with a potential equity upside.
EQUITY CAPITAL RAISING
Equity Services relate to raising capital for clients by offering common or
preferred equity to public or private investors, through initial public offers, offers for sale,
rights issues and private equity placements.
ADVISORY SERVICES
Page 22

Financial and Capital Raising Advisory provides clients with financial advisory
services, commercial structuring support and access to capital resources to help
companies successfully finance their business/project.
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.
ISLAMIC BANKING
With the help of Shariah specialists, lawyers and professional commercial
bankers, MCB Islamic Banking provides Riba Free and Shariah Compliant solutions to
various customer segments in a growing number of cities.
DEPOSIT SCHEMES
For customers who are looking for a deposit opportunity where they can purse
their funds and reap halal returns on it, MCB offer the following products
Al-Makhraj Saving Account

Al-Makhraj Ianat Account
Al-Makhraj Term Deposit
FUND BASED FACILITIES

MCB offers 3 broad Islamic fund based facilities:
Ijarah
Murabahah
Diminishing Musharika Equipment
IJARAH PRODUCTS
MCBs 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 after the Ijarah
has matured.Under this scheme, MCB will be the owner of the asset, and the customer
(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 the customer (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
Page 23

Types of Ijarah
Car Ijarah
Equipment Ijarah
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. Murabah Sale Price = Cost + Expenses incurred + Agreed Profit
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 banks 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.
Page 24

My Internship experience & Fields of Activities
WHICH I OBSERVED AND DONE
The purpose of banks is to provide some services to the general public. And for this
purpose different banks provide different services to the people in different forms. The MCB
Bank is a commercial bank, in modern time commercial banks play a very important role and
their functions are manifold. The main functions and services which MCB Bank Limited
provides to different peoples are as follows.
Open Different accounts for different people
Accepting various types of deposits
Granting loans & advances
Undertaking of agency services and also general utility functions, few of those are as
under
Collecting cheques and bill of exchange for the customers.
Transfer of money from place to place.
Acting an executor, trustee or attorney for the customers. Providing safe custody and
facilities to keep jewellery, documents or securities.
Issuing of travelers cheques and letters of credit to give credit facilities to travel.
Accepting bills of exchange on behalf of customers.
Purchasing shares for the customers.
Undertaking foreign exchange business.
Furnishing trade information and tendering advice to customers.
For proper functioning of branches and the overall bank has been divided in different
departments. These departments handle different jobs so that division of work is there for
improvement of functions and also it is easy to control the situation. The general division in a
branch is as follows:
(i) Cash department
(ii) Deposit department
(iii)Advances & credit department
(iv) Remittance department
(v) Technology department (new addition in order to cop with the growing needs of day to
day technology requirements)
CASH DEPARTMENT
The following books are maintained in the Cash Department
Receiving Cash Book
Paying Cash Book
Page 25

Token Book
Scroll Book
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.
OPENING BALANCE + RECEIPTS - PAYMENTS = CLOSING BALANCE.
This is very important department because cash is the most liquid asset and mostly frauds are
made in this department, therefore, extra care is taken in this department and nobody is allowed
to enter or leave the area freely. Mostly, cash area is grilled and its door is under supervision of
the head of that department. All the books maintained in this department are checked by an
officer.
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.
TYPES OF DEPOSITS
Deposits can be segregated on two bases, one is the duration in which there funds are
expected to be with the bank and second is the cost of getting these funds. So divide deposits
in two classes according to duration of deposits i.e.
(i)
Time deposits / liabilities
(ii)
Demand deposits / liabilities
And on the basis of the cost to acquire these funds, a deposit can be classified as any one of
following four, High Cost Medium Cost, Low Cost No Cost.
Banks has different kinds of deposit schemes in order to induce deposits. These schemes are a
mixture of the above mentioned two types of deposits with an addition of different services &
requirements such as minimum balance' requirement, mode of transaction, basis for calculation of
profit, deductions, additional benefits, eligibility for different groups.
In the similar fashion, MCB has a large variety of deposit schemes and some of them are as follows:
Page 26

CURRENT ACCOUNT
In this type of accounts the client is allowed to deposit or withdraw money as and
when he likes. He may, thus, deposits or withdraws money several times in a day if he likes.
There is also no restriction of amount to be deposited or withdrawn. However, there is
requirement of minimum balance maintenance of Rs. 1000/-. Usually this type of account is
opened by the businessmen. No profit is paid by the bank and no service charges are
deducted by the bank on current deposits account. These types of deposits are also exempt
from compulsory deduction of Zakat.
PLS ACCOUNT
This type of account is for those persons who want to make small savings'. This type
of account is opened with a minimum deposit of Rs. 1000/-. Under this scheme deposits can
be made only up to a-costing amount and withdrawals are allowed twice a week or 8 times a
month. If a big amount is required a seven days notice is required before the withdrawal. The
profit is paid on these accounts on the minimum balance during a month for the whole of that
month. Zakat & other withholding taxes are deducted as per rules of the government. Zakat
and withholding taxes are deducted as per rules only at the time of maturity while making
payment to the customer.
TERM DEPOSITS RECEIPTS
This is a type of term deposit in which a receipt is issued for varying tenors ranging
from 1 month to 5 years or more. These are in the form of receipts and profit on these
receipts is paid biannually. These receipts are encashable after expiry of the period for which
they were issued. Different profit rates are applied to different type of TDRs.
FUNCTIONS OF DEPOSIT DEPARTMENT

This was a brief review of different types of deposit schemes. The Deposit
Department handles the account opening, profit payment and accounting of all types of
deposit schemes.
o 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.
o 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 are also
calculated on monthly basis by the same department in order to calculate the net profit or loss
position of the branch.
Page 27

o 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.
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.
TYPES OF CHEQUES
o TRANSFER CHEQUES
are those cheques, which are collected and paid by the same branch of bank. Both
parties have account in the same bank
o TRANSFER DELIVERY CHEQUES
are those cheques, which are collected and paid by two different branches of the
same bank situated in the same city.
o CLEARING CHEQUES
are those chequnes, which are drawn on the branches of some other bank of the
same city or of the same area, which is covered by a particular clearing house.
o COLLECTION CHEQUES
are those cheques, which are drawn on the branches of either the same bank or of
another bank, but those branches, are not in the same city or they are not the members of
clearing house.( out station cheques)
FUNCTIONS OF CLEARING DEPARTMENT
o To accept Transfer, Transfer delivery, clearing and collection cheques from the
customers of the branch and to arrange for their collection.
o To arrange the payment of cheques drawn on the branch and given for collection to any
other branch on MCB or any other members or sub member of the local clearing house.
Page 28

o To collect amount of cheques drawn on members, sub-member of local clearing house,
sent for collection by MCB Branches, not represented at the local clearing house
o Receiving and scrutinizing the cheques and other deposit instruments, and the pay-in-slip
at the counter.(verify by the way of a/c number and a/c title)
o Fixing the stamps.
o Scrutiny and receipt by the authorized officer.
o Returning the counter file to the depositor.
o Certificate and confirmation by the officer in charge of the department.
o Separating the cheque into transfer, transfer delivery(same bank diff branch), and
clearing cheques.
Page 29
REMITTANCE DEPARTMENT
Remittance is the monitory transfer from one place to another place or from one country
to another country to fulfill the requirements of the customers by the order of customer
Remittance department performs following functions:
Demand Drafts (DD)
Pay order (PO)
Page 30

CDR
Online Cheque transfer of MCB
DEMAND DRAFT (DD)
Demand draft is just like cheques and issued when the customer wants to take cash
with him personally. The idea behind is to avoid the risk and burden of currency notes in
huge quantity. Demand draft can easily be handled whatever amount it has and the money
can easily be taken from the bank when it is presented. In fact, the bank persuades the
customer to transfer money by drafts and avoid the risk of frauds involves in MT and T.T.
Draft is only issued when the bank knows customer and bank has the confidence in him In
case of transfer of money by drafts, the customer has to fill an application form. Then the
concerned officer fills the following forms:
Customers advice
Customers debit form
Register copy
Cover Advice
FOREIGN DEMAND DRAFT
Foreign Demand Draft is just like demand draft. The only difference is that a bank
issues FDD to the bank of another country. It requires foreign exchange and it involves seven
forms, which are to be filled.
PAY ORDER
Pay order is an instrument through which payment can be made from one bank to
another bank within city. Pay order is made for local transfer of money. Pay order is the
most convenient, simple and secure way of transfer of money.
o It is issued by and drawn upon and payable by the same branch of bank
o It is neither transferable nor negotiable and as such it is payable to the payee
named therein.
PARTIES TO PAY ORDER

o Purchaser
o Issuing/ Payee branch
o Payee
CALL DEPOSIT RECEIPTS
Page 31

It is a kind of deposit. This deposit does not offer any income or profit to the
depositors. Call deposit does not earn any income or profit following are the
characteristics of CDR
o No Zakat is deducted on Call Deposits.
o Call Deposit Receipt is issued in the name of Beneficiary
o Receipt is payable/encashable to beneficiary on proper discharge through
collection/ clearing/ internal transfer.
o When payment is made in cash over the counter, discharge of
the purchaser on revenue stamp of required value must be obtained.
o CDR is issued in favor of Government, Semi-Government, Institutions,
Corporations, and Semi-Autonomous Bodies etc. as a security deposit. It is also
issued in favor of Individuals.
ADVANCES DEPARTMENT
Advances are the most important source of earning for the banks. MCB is also giving
full attention towards this aspect and it is also obvious from the growing portfolio of advances
and from very low delinquency rate. The credit portfolio of this institution is in a very much
better shape than other financial institutions of Pakistan and the credit goes to the management
and the staff who are concerned about the quantity and quality as well.
1. Loans
2. Cash Credits
3. Overdraft
LOANS
Loans are monetary assistance by a financial institution to a business, individual etc.
The loans are granted by the bank in lump sum, so these types called fixed or demand loans.
Interest is charged on the whole amount of a fixed loan. The borrower withdraws whole the
amount of loan. This type of loan is normally granted against security of gold documents. In
case of demand loans against gold or documents, a demand promissory note for the amount
of loan is taken from the borrower loans are granted under;
o LOAN AGAINST GOLD
Under this type of loan, which is granted to the borrower the Head Cashier
estimates the value of Gold or Gold ornaments through an agent (Gold smith) and keeps a
margin of 40 to 50 percent. After the opening the gold loan account a token is given to the
borrower, which is a bank receipt. On repayment of loan, the gold or ornaments held as security
for it, together with the demand promissory note duly discharged is returned to the borrower and
his receipt for the gold ornament taken in the demand loan ledger. This receipts states that he
ornaments returned are complete and in order. Part delivery of ornaments is given against part
payment of a loan but care is taken that the ornaments still in banks possession fully covers the
balance of the loan outstanding. The interest gold loan is to be applied with quarterly.
Page 32

LOAN AGAINST PLEDGE OF STOCKS
In case of advancing such types of loans, the following precautions are kept in the mind:
Stock pledged must be readily saleable
Products should be readily saleable
Advance should be within the borrows means
REQUIREMENTS OF LOAN
For granting loan to any party or individual, the bank checks following particulars of the
client
Credibility
Feasibility Report
By Credibility, bank Judges the credibility of the client by his past bank record, CBI report
etc. it is very important in making decision about giving him loan.
Feasibility report is on the running or proposed business of the client. The report enables the
bank to judge the likely return of the business.
CASH CREDIT
Such cash account is opened in the name of the customer who borrows from the bank.
Customer is granted a loan up to a certain limit, sanctioned by the head office, from which he
can draw when he requires and interest is charged on the amount actually utilized by the
customer. In order to avoid the danger of idle fund, the bank charges a certain rate of interest,
even if the customer does not withdraw any amount. The rate charged by the bank on cash
credit in 46 paisa per thousand on daily basis. The credit is usually given against the
securities of goods or merchandize as follows:
ADVANCE AGAINST PLEDGE OF STOCKS
When cash is granted against the pledge of stock or product, cash credit form is taken,
from the certain products or stock, but the actual pledge is created when the stock or finished
products are placed under the bank's lock or the document of title is duly endorsed to the
bank by the borrower.
MORTGAGE OF PROPERTY
Title deeds of immovable property are accepted by the bank only as collateral
security or alternatively as unauthorized security
Page 33

Pest Analysis
Page 34

SWOT Analysis
Page 35

Recommendations
MCB 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 observation and suggestion to improve the efficiency for the development of
the bank.
There is a criticism on the banking management that the salaries of the employees are
decreasing in every succeeding year. And I think this will shake the confidence and
working habit of the employees.
There is another recommendation about the bank that there is no proper timing of the
bank and there is made an unnecessary delay in the banking transactions, which might
not be a good sign for the bank from future prosperity point of view.
Staff turnover particularly of trained staff result in financial and other losses. The
amount spent by the bank on employment, induction and training of outgoing officers
constitutes to beat till another officer should ready prove this work. The exodus of bank
officer in the past has worsened the situation.
Most of the bank employees, 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 all the employees should have regular job experience all out-look towards
banking. The promotion policy should be adjusted.
Refresher Courses for the staff are most important in any international organization. Alt
the employees should have these courses according to their requirement. Foreign experts
can also be called for this purpose.
Every year some of the employees should be sent for training to other countries and
employees from other branches should be brought here. Some more reading material
should be provided.
Educate the employees with the advance studies in their field. The employee should be
provided the opportunities to attend and participate in seminars and lectures on banking.
Bank should give some more incentive to its employees in order to remove the conflict
between lower and higher officers and should try to improve the working condition of
the bank.
As such system should be designed that every employee who has some problems with
his officers can communicate it to the higher management and some steps must be taken
to improve that.
Page 36

Recruitments should be strictly on merit basis and induction should be after proper and
extensive training.
Old and lazy staff should be replaced by young, qualified and energetic staff.
Foreign branches should be opened in order to capture the international market and to
earn international repute for the bank.
Working environment, equipment, furniture and staff dressing should be according to the
modern banking style.
Proper attention should be paid to upgrade customer services.
Bank should adopt the global organizational banking structure to meet the international
standards of banking sector.
The period of internship should be divided in to the number of department of the Muslim
Commercial Bank Ltd. The internee should be given timetable mentioning the number of
days he has to work at different places in the bank. On the first 4 days in each
department internee should be given a lecture the officer of the department concerned
about working of the department.
Bank should give some more incentive to its employees in order to remove the conflict
between lower and higher officers and should try to improve the working condition of
the bank. Such system should be designed that every employee who has some problems
with his officers can communicate to the higher management and some steps must be
taken to improve that.
Smart, educated, skilled, well spoken and well versed staff personals should be rewarded
and appreciated, while on the other hand lazy, lethargic, heard, rough-dealers and ill
mannered must be warned and penalized but this all should be on merit and considering
the policy of honesty is the best policy and not due to some personal liking, disliking
prejudice and patrimonial. It is therefore suggested certain schemes and checks may be
introduced in banks to increase efficiency through reward and punishment system.
Page 37

Conclusion
With
Cooperation of all branch members, I have been able to learn & experience many new things
related to the banking sector & to the banks working. I am able to handle the public with respect
to many different working on many different instances and also in account opening for customers
and can handle many other tasks as well. Finally I concluded that MCB s a good organization for
a person for his long term career working. Overall working & environment of the bank is very
comfortable & the Staff is very helpful & respectful of each other and it still maintains a
professional environment. Management of the bank is very strong. Employees of MCB
Baghbanpura Branch (0181) work more than their working hours and the entire working take
place in a very friendly atmosphere that does not induce pressure on the person working there. It
also shows their loyalty and commitment to the organization. The branch of MCB relatively
small and has climbed its way up very quickly and all that only because of the employees effort
and consideration for each other.
Page 38

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Internship Report on MCB Bank