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ACKNOWLEDGEMENT
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In the name of ALLAH, the most kind and most merciful,

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.
More than anybody else, I would like to acknowledge my project advisor, Mr.
Muhammad Saleem mirani teacher of GCUF for his never ending support and
untiring efforts. He was always there to guide me whenever I felt stuck off and his
encouragement always worked as morale booster for me. I have found him very
helpful while discussing the difficult issues in this assignment work.
I would also like to express thanks Mr. Waqar Ahmad (Branch Manager of MCB) for
providing me the information to have an excellent knowledge skill during my visit.

HISTORY AND INTRODUCTION OF MCB BANK LTD.:

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1.1 Incorporation:
MCB Bank Ltd formerly known as Muslim Commercial Bank Limited was
incorporated by the Adamjee Group on July 9, 1947, under the Indian
Companies Act, VII of 1913 as a limited company. The bank was established
with a view to provide banking facilities to the business community of the
sub-continent. The bank was nationalized in 1974 during the government of
Zulfikar Ali Bhutto.MCB earned Revenue of PKR 31.787 billion and Net
Income of PKR 15.266 billion in 2007..

1.2 Privatization:
This was the first bank to privatize in 1991 and the bank was purchased by a
consortium of distinguished Pakistani corporate groups led by Nishat Group.
Nishat Group is one of the leading and most diversified business groups in
Pakistan. The group has strong presence in the most important business
sectors of the country such as banking, textile, cement and insurance. Mian
Muhammad Mansha is the head and chairman of the group .He is regarded
as one of the richest persons in Pakistan. He owns textile mills, the Muslim
Commercial Bank and is a major player in cement. .He was awarded the
Tamgha-e-Imtiaz civil award by President Musharraf on March 23, 2004..

1.3 Network:
MCB is the fourth largest bank of Pakistan. Its wide network includes fully
facilitated branches all over Pakistan. It covers 125 cities, comprising of 978
branches out of which 262 have the ATM machines.

1.4 Milestones:
MCB has been awarded as Euro money Award 2008 for the "Best Bank in
Asia". In 2006 MCB yet again received the esteemed Euro money Award for

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the Best Bank in Pakistan. It is the only bank to receive the Euro money
Award for Excellence for the sixth time in the past seven years.MCB
Continues to shine as once again Asia Money declares MCB as "The Best
Domestic Commercial Bank in Pakistan" for the year 2004 and 2005.

Mission Statement
MCB Banks team of committed professionals is dedicated to maintaining
long

term

customer

relationships

through

outstanding

service

and

convenience
We see that MCBs mission statement emphasizes on committed, skilled
professionals. Such professionals are responsible to being the best financial
services in most effective and efficient way. By using breadth of experience,
capabilities and skills, they create value for all stakeholders that include
clients, investors, employees, and society as a whole. And thus make long
term profitable relationship with customers. Although the present world is so
dynamic, but key to success remains constant: focus on customer needs,
spirit

of

innovation,

creative

ideas

and

expertise

combined

with

technology.MCB Bank Limited has a highly talented management team that

loves and enjoy the challenges of solving problems and taking the initiative to
continually learn. MCBs team is fully dedicated towards its mission
statement and passion to be customer focused. It is committed to
pLan ahead of time
kEeping a steady course.
tAking on challenges
aDding values to MCBs services
sEcuring common interest
bRidging the distances

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aSsociating with you..

Thus having a true sense of a successful leader.

CONTENTS OF MISSIONSTATEMENT
i.

Concern for growth, survival:

MCB is dedicated to maintain long term profitable relationships with

customers.
ii.

Concern for customers:

MCB is fully indented to be customer oriented by providing them maximum

satisfaction through outstanding service and convenience.
iii.

Concern for employees:

MCB has always welcomed and motivated energetic, passionate and

committed professionals.MCB considers its employees as Human Asset, the
most important of all of its assets.
iv.

Profitability Concern:

MCB believes in earning profit by providing best services to their customers.

v.

End users:

The end users include salaried class, businessmen, students, industrialist,

farmers, working women etc.
vi.

Market:

MCB is the fourth largest bank of Pakistan that prevails throughout the
Country comprises of more than 900 countrywide branches. Also its

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penetrating in international market. It has 9 branches in different countries

and the journey is still going on.

ORGANIZATIONAL STRUCTURE OF MCB BANK LTD

As MCB is a banking company listed in stock exchange therefore it follows all
the legalities which are imposed by concerned statutes Mr. Muhammad
Mansha is chairman& chief executive of the company with a team of 10
directors and 1 vice chairman to helping the business control and strategy
making for the company. Operational Management of the bank is being

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handled by a team of 10 professionals. This team is also headed by Mr.

Muhammad Mansha. The different operational departments are Consumer
Banking & IT div; Financial & Inter branch div; Banking operations div; HR &
Legal div; financial control & Audit div; Credit management div; Commercial
Banking div; Corporate Banking div; Treasury management & FX Group and
lastly Special Assets Management (SAM) Group. For effective handling of
branches, it has been categorized into three segments with different people
handling each category. These categories are:
Corporate Banking
Commercial Banking
Consumer Banking

CORPORATE BANKING
These are branches, which have an exposure of over Rs. 100 million.
Usually includes multinational & public sector companies.

COMMERCIAL BANKING
The branches which have a credit exposure of less than Rs. 100 million but
having a credit portfolio of more than Rs. 20 million (excluding staff loans)
Usually branches in large markets and commercial areas come under this
category.

CONSUMER BANKING
These are the branches that have exposure up to Rs. 20 million and these
include all the branches that are neither corporate nor commercial branches.
Recently the organizational structure was re-designed as follows:

PROVINCES WISE BRANCHES:

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Corporate

Consumer

20 branches

Commercial

637 branches

383 branches

2.1 ORGANIZATIONAL STRUCTURE ON BANK LEVEL

President
Group heads
Divisions and field
Circle offices
Regional offices
Branch officer

2.2 ORGANIZATIONAL STRUCTURE ON BRANCH LEVEL:

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JOB DESCRIPTION AT BRANCH LEVEL:

Job Description of MCB bank Jinnah colony branch. The branch code of this bank is
(0331).

BRANCH MANAGER:

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A branch manager is an executive who is in charge of the branch office of

a bank or financial institution. A branch manager is responsible for all of the functions of
a branch, like hiring employees, approving loans and credit.

OPERATION MANAGER:
The assistant bank branch manager/operation manager supports the
branch manager by overseeing the efficient operation of the branch to ensure all
operational functions are completely and properly performed by the staff while
conveying a feeling of trust, service, security, and satisfaction to customer and staff.

GENERAL BANKING OFFICER:

The general banking officer online cheques transfer same bank and
check the customer balance enquiry fully secrecy maintained not leak the any
information about customer.

Clearing officer:
The Clearing Officer will be responsible for the daily support to the front
office in processing of transactions related to Inward & Outward Clearing and settlement
between banks.

Customer relationship manager:

A retail Relationship Manager would primarily deal with individual retail
customers and advice them on various banking and financial products and services
offered by the bank. A wholesale Relationship Manager would be catering to the
corporate clients like SME's or large corporations.

Credit officer:
Also referred to as "Mortgage Loan Originators", work for banks and other
financial

institutions

with

the

main

objective

to

recommend

individual

and

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business loan applications for approval loan officers specialize in commercial, consumer
and mortgage loans.

CHIEF TELLER:
Supervises and coordinates activities of workers engaged in receiving and
paying out money and keeping records of transactions in banks and similar financial
institutions: Assigns duties and work schedules to workers to ensure efficient functioning
of department.

TYPES OF TELLER

PAYMENT OFFICER:
Balance currency, coin, and checks in cash drawers at ends of shifts, and
calculate daily transactions using computers, calculators, or adding machines. Cash
checks and pay out money after verifying that signatures are correct, that written and
numerical amounts agree, and that accounts have sufficient funds .

RECEVIED OFFICER:
Receive checks and cash for deposit, verify amounts, and check accuracy of
deposit slips. Examine checks for endorsements and to verify other information such as
dates, bank names, identification of the persons receiving payments and the legality of
the documents.

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MCB PRODUCTSAND SERVICES

Commercial Banking
Deposit Accounts:
Basic Banking Account:
A simple account to produce the habit of saving for beginners like students.
The account can be opened with only Rs. 1000, no minimum balance
required; no any monthly or annual charges applicable on this account, two
deposits and two withdrawals can be made in a month. Also you can avail
the facility of MCB ATM card and MCB smart card.

Pak Rupee Current Account:

MCBs Pak Rupee Current Account offers you the convenience of unlimited
withdrawals i.e. access to your funds whenever you want without any notice.
There is no limit on the number of transactions you make in a day plus you
can avail finance facility up to 75% of the total deposit. In addition, you have
access to a countrywide ATM network convenient cash accessibility 24 hours
a day. The facility also provides you with unlimited daily transactions with
a limit on maximum withdrawal amount through the ATM machines

Pak Rupee Savings Account:

MCBs Pak Rupee Savings Account offers you attractive returns on your Pak
Rupee investment with a minimum balance of Rs. 10,000.In addition; you
have access to a countrywide ATM network convenient cash accessibility 24
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hours a day. The facility also provides you with unlimited daily transactions
with a limit on maximum withdrawal amount through the ATM machines. You
can also use MCB Smart card and Locker Facility at economical charges.

Pak Rupee Term Deposit:

MCB Pak Rupee Term Deposit gives a higher rate of return. It gives you
choice of 1 month, 3 months, 6 months, 1 year, 2 years, 3 years, 4years and
5 year term deposits. Saving 365 The MCB Saving 365 calculates profits on
a daily product basis and gives you the facility of unlimited withdrawals.

Foreign Currency Savings Account:

MCBs Foreign Currency Savings Account offers you attractive returnson
your Foreign Currency investment. You can invest in any of the four
currencies i.e. US Dollar, UK Pound Sterling, Japan or Euro your foreign
currency account is exempted from Zakat and withholding tax.

Foreign currency current account:

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MCBs Foreign Currency Current Account offers you the convenience

of unlimited withdrawals i.e. access to your funds whenever you want without
any notice. There is no limit on the number of transactions you make in a
day.

MCB Foreign Currency Term Deposit:

MCB Foreign Currency Term Deposit gives a higher rate of return. It gives
the choice of 1 month, 3 months, 6 months, 1 year, 2 years, 3years, 4 years
and 5 year term deposits.

Smart Dollar Account:

The Dollar Khushali Account, a Dollar based account was introduced in1993
at selected MCB Bank branches. Today, you can open a Smart Dollar
Account at over 200 branches in Pakistan with a minimum amount of
USD 10,000.

Business Account:
With MCB Business Account you can avail higher number of free
transactions with higher balance. The account can be opened with Rs.50,

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000. You can make free Deposits and Withdrawals from all nation-wide
branches.

Loan Products:
MCB Business Sarmaya:
MCB Business Sarmaya is the best Running Finance facility against your
residential property which empowers you to manage your business dealings
better. So act today and get MCB Business Sarmaya and thus improve your
business, avail lucrative opportunities and expand your business, with
absolute satisfaction of cash flows.

MCB Car4u:

Life is like a chess board. You plan your career options. You analyze your
business moves. But when you really want to improve your life, you make a
power move. MCB CAR4U Auto Finance is the power move that assists you
in more ways than you ever imagined. It is affordable, with lowest mark up
16%, flexible conditions, easy processing and above all, no hidden costs.
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MCB Pyara Ghar:

Some destinations require a long wait. Like waiting for a home of your own
But with MCB Pyara Ghar it is now easy to step into your home and start
living a real life. MCB Pyara Ghar is an ideal Home Finance from your own
bank that lets you Purchase, Renovate or Construct your home the way you
have always wanted. Having your own home was never so easy.

Easy Personal Loan:

MCB Easy Personal Loan provides you with the financial advantage to do
things you've always wanted to but never had the sufficient funds for. Take
that much-needed holiday. Buy a car. Refurnish your house. Purchase a new
TV. Finance a better education for your children.

MCB Master Card:

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Since the beginning of time, people have tried to find more convenient ways
to pay, from gold to paper money and checks. Today, money is moving away
from distinct hard currencies and towards universal payment products that
transcend national borders, time zones, and, with the Internet, even physical
space. Plastic or "virtual" money, credit, debit, and electronic cash products,
inevitably will replace cash and checks as the money of the future.

MCB Rupee Traveler's Checks:

MCB Rupee Traveler's Checks were first introduced in 1993 as safe cash for
traveling and travel related purposes. The product has been extremely
popular and is preferred over cash by customers while traveling and in all
walks of life. MCB Rupee Traveler's Checks- The safest way to carry Cash.

Corporate Banking:

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Cash Management Services:

MCBs network of over 1700 branches in Pakistan enables it to collect and
disburse payments efficiently with its cash management services. This also
enables it to offer you a choice of paper based or electronic fund transfer
solutions including collection amounts, cross branch on-line transactions etc.

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 includean
entire range of import and export activities including issuing Letters of Credit
(L/Cs), purchasing export documents, providing guarantees and other
support services.

3.2 MCB SERVICES

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3.2.1 FIELD OF ACTIVITIES

Commercial banks are the most effective mobilize of savings and have been
providing short term requirements of working capital to trade; commerce &
industry .The commercial banks are authorized to engage in forms of
business. The banks play a very important role in economy of a country.
Businesses depend upon banks for carrying out various activities relating to
finances, obtaining agency services etc .Banks provides facilities to
individuals too. The manifold services of the bank can be divided into major
head as 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 indifferent forms. The Muslim Commercial Bank (MCB) is a
commercial bank, in modern time commercial banks play a very important

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role and their functions are manifold. The main functions and services which
Muslim Commercial Bank Limited provides to different peoples are as
follows.

Open Different accounts for different peoples.

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.
Collecting interest due, dividend, pensions and other sum due to
customers.
Transfer of money from place to place.
Acting an executor, trustee or attorney for the customers. Providing
safe custody and facilities to keep jewelry, 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
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jobs so that division of work is there for improvement of functions and

also it is easy to control the situation.

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SWOT ANALYSIS OF MCB:

The acronym SWOT stands for a firm is internal Strengths and Weaknesses
and its external Opportunities and Threats. The purpose of such analysis is
to build on companys strengths in order to exploit opportunities and counter
threats and to correct companys weaknesses. SWOT analysis is based on
the assumption

that if managers carefully review such

strengths,

weaknesses, opportunities, and threats, a useful strategy for ensuring

organizational success will become evident. Strengths and weaknesses
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typically relate to the internal environment of an organization, whereas

opportunities and threats are brought about by the external environment of
an organization. In the following section both internal and external analyses
of MCB are outlined:

4.1 INTERNAL ANALYSIS:

Internal analysis of a firm is the analysis of its strengths and weaknesses.
Unless a firm has internal strengths and controls its weaknesses, it cannot
take advantage of opportunities and escapes threats which the external
environment presents. Following are the main strength and weaknesses of
MCB.

4.1.1 Strengths:
Strength can be defined as an area where a company is best at doing
something or a feature that puts the company at an advantage in comparison
to its competitors. MCB enjoys the following strengths:
I.

MCB is a well established bank enjoying long history of over 55 years

of experience and profitable operation.

II.

MCB was the first privatized bank that gives it an edge over other
nationalized banks as it can develop any strategy consistent with the
demand of market and free from any political or bureaucratic
influence.

III.

MCB is the largest private bank in Pakistan and third largest bank
among all banks.

IV.

It has the largest branch network among private banks of Pakistan.

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V.

MCB is the market leader in introduction of e-banking and it has the

largest ATM network in the country.

VI.

The Banks Rupee Traveler Cheques have been market leaders for
the past six years.

VII.

MCB rated the best domestic bank for two consecutive years of 2000
and2001 by euro money, a leading international publication.

VIII.

MCB has forged strategic alliances with international banks for

expanding its network further, both locally and internationally.

IX.

MCB has the ability to bring innovative products and services like
personalized service, electronic funds transfer, sophisticated financial
products such as electronic banking, auto-teller machines and evening
banking.

X.

MCB has been very effective in controlling costs as it successfully

restructured itself after its privatization. During this process more
than1, 600 employees were relieved under a golden handshake
scheme and 110 branches were closed.

XI.

Excellent branches appearance gives an edge to MCB over other

banks. The branches are well furnished even in less developed areas
where other banks branches give a poor view. The same is included in
the mission statement of MCB in following words: and to be the
best place to work.

4.1.2 Weaknesses:
A weakness is defined as an area in an organization where the organization
is not as good at doing something as its competitors or a thing which an

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organization lacks thus putting the organization at disadvantage in

comparison to its competitors. Based on the above definition, MCB has the
following weaknesses.
I.

Mission of MCB is not well defined. It restricts MCB from extending its
operations to other countries. This is evident from this sentence of the
mission statement Our mission is to become the preferred provider of
quality financial services in the country... Either it means that MCB
will not provide quality service in other countries where it operates or it
will not extend its operations to other countries. In either case, the
bank suffers.

II.

Though MCB is third largest bank in Pakistan, yet the fact remains
that its not market leader as HBL and NBP. Total assets of HBL and
NBP are Rs. 333,751 millions and Rs. 415,088millions respectively as
at December 31st, 2001. While total assets of MCB are Rs.187055
millions. Similar is the case with other financial strengths in deposits
and advances.MCB does not enjoy the support of government as the
other nationalized bank do. At the time of any financial difficulty, the
other banks can easily seek support from government while MCB will
have to rely on its own resources. One example of that came to the
front when it started restructuring to streamline its operations and to
achieve cost efficiencies, unlike other public sector banks, which
received assistance from Asian Development Bank to the tune of US$
250million, MCB carried out restructuring at its own initiative and
without financial assistance from the government. The second
example was the rejection of its offer to take over United Bank Ltd.
Through its bid was the highest of Rs. 12 billion: almost double of the
bids offered by other participant in the bidding.

III.

The overseas branch network of MCB is limited. It has only four

overseas branches whereas HBL has twenty overseas branches,
three subsidiaries, two affiliates, and one representative office.
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Similarly NBP has fifteen overseas branches, one subsidiary, and four
representative offices.
IV.

Employees at branch level are not properly motivated to work by

heart. They take the all routine activities as a boring job.

V.

Most of the employees lack managerial training as they are not

properly educated. Due to seniority, they have moved up on the
hierarchy line to Grade-I, II or III positions having hardly bachelor
degrees. This type of senior staff cannot apply the modern and
innovative techniques of management in decision making.

4.2 EXTERNAL ANALYSIS

An organization has to monitor its environment constantly to keep up with
new developments and changes in the environment. A change in the external
environment may be either an opportunity or threat. In either case the
organization has to properly use it strengths to avail the opportunities and
avoid or minimize the negative effects of threats. Following are the main
opportunities and threats of MCB.

4.2.1 Opportunities
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An opportunity can be defined as a change in external environment which if

properly exploited with the organizational strengths will result in enhanced
sales market share or income. Using its strengths. MCB can avail the
following opportunities.
I.

MCB may enhance its Rupee Travelers Cheques (RTCs) sales by

searching for new market niches.

II.

It can introduce debit card system or may convert the existing ATM
cards into a complete debit card.

III.

New products like personal loans mortgage and auto leasing and each
management which diversify credit risk and add to revenue generating
products are currently provided in big cities like Lahore, Islamabad,
Karachi and Rawalpindi, these products may be tested for success in
other areas like Peshawar, Quetta and Sargodha.

IV.

Developing network for electronic transaction require huge investment

which cant be made all at once, there exists an opportunity for MCB
to enter into agreement with other banks to use each others ATMs
which will result in an increased convenience to MCB customers and
customers of other banks.

V.

As all around the world remittances of money are strictly monitored so

as the money remitted may not fall in hands of so called terrorists for
that all conventional money laundering through Hundies have been
stopped there is an opportunity for MCB to extend its branch network
to various countries emphasizing mainly on introducing electronic fund
transfer facilities.

4.2.2THREATS
Threat can define as a change in external environment which if not met with

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proper strategies will result in loss of revenues market share or income. In

the context of MCBs external environment the following potential threats
exist:
I.

The Rupee Travelers Cheque (RTC) sales volumes may be affected

on account of regulatory restriction imposed by SBP on issuance to
large value denominations.

II.

The tax refund by CBR to exporters during second quarter of financial

year 2002 and excessive remittances from abroad by Pakistan have
increased liquidity resulting in low demand for credit that would
inevitably have dampening effect on all banks profitability including
MCB.

III.

The frequent reduction on 6-month and 12-month Treasury Bills

discount rates by SBP may create pressure on the banks profitability.

IV.

The low discount rates are also negatively influencing the advances
rates which may affect the banks profits from the other side. Foreign
banks operating in Pakistan are playing a significant role by
incorporating new technologies and providing better quality services
thus creating a threat to the local banks especially to MCB which tries
to develop core competence in electronic based products. Policies of
privatization, foreign exchange reforms and structural adjustments
have increased the inflow of foreign resources through direct and
portfolio investment. In trade financing the role of foreign banks is
even more significant as approximately 30 percent of the total trade of
the country is transacted through them. Major portion of the trade
financing is for importers to establish letters of credit.

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