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Report on Muslim Commercial Bank Ltd. (MCB)

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TERNSHIP REPORT

mercial Bank Ltd

FORMANCE IN COMPETITIVE BANKING SECTOR & ITS PRODUCTS & SERVICES AT MCB CHOWK BRANCH LARKANA REHMAN MEMON

AL)

COMMERCE

8 2009

eing made for the fulfillment of course the course No: 600 Business Internship Report of M.Com (Final).

nternship is prepared on MCBs performance in competitive banking sector & its products & services at i Chowk Branch Larkana.

thank the following people at MCB Pakistani Chowk Branch who provided me help to learn as much as g a short span of time.

med Shaikh (Branch Manager)

Mangi (Operation Manager)

nternship Report is prepared under the supervision of Professor Dr. GHULAM MURTAZA MAITLO artment of Commerce, Shah Abdul Latif University Khairpur, Mirs.

extend my gratitudes to my teacher for his advice, encouragement and valuable suggestions which made it e to complete my Business Internship Report.

ernship report

research work is to analyze the organization and the performance of MCB Ltd. since 2008-09. This Business ort is prepared on MCBs performance in competitive banking sector & its products & services. The nship Report contains Executive Summary, Introduction, History of MCB Ltd, Product & Services of MCB.

ernship, I worked in various operations as general banking including cash operation, clearing remittances, opening procedure and advances. The bank will have to work hard and to meet the challenges of competition he customer to accelerate the business.

rimary and secondary data is used. In primary data the information is collected by getting briefings from er and from the Operation Manager and in secondary data published literature of MCB and the electronic s website.

ernship report

FORMANCE IN COMPETITIVE BANKING SECTOR & ITS PRODUCTS & SERVICES AT MCB CHOWK BRANCH LARKANA.

E #:

ment I

nts III 01

mmary 01

and Mission 02

ment 02

tement 02

nts 03

istory 03

ents and Their Jobs 04

nking 04

ft 04

r 05

ansfer 05

ay Order and Demand Draft 05

of Pay Order and Demand Draft 05

ing 06

aring 06

heque Books 06

ATM Cards 07

of ATM Cards 07

07

Term Deposits 08 08

e, Number of Days / 365 Days 08

hange 08

shment 08

Retirement 08

nternship report

ency Deposits 08

ittances 09

Credit 09

g Account 09

or Foreign Currency Account 10

unt 10

Maximizer Account 10

unt 10

hat Account 10

ced Saving Account 10

rs in Bill Payment 11

nking 11

xpress 11

12

ervices 12

Day Banking 12

al Rupee Term Deposits 12 Express 13 13

rs 13

c Banking 13

al Internet Banking 13

Centre 14

e Banking 14

24-Hour Cash 14 Cards 14

Bill Pay 14

inancing 14

ncing 14

e Travelers Cheque 15

ess Sarmaya 15 15

Ghar 15

ress 16

18

s Account 19

tement 20

hanges in Equity 22

ons 25

nternship report

y Muslim Commercial Bank Ltd.) is the largest private sector bank in Pakistan. The Adamjee group n 1948. It proposed during the 1950s and 60s. In 1975 it was nationalized with all other private sector bank. was privatized. Since the bank has been headway in improving of technology. In the year 2006 bank name was CB Limited. The bank is now included as one of the top most bank of the nation.

awarded as a Euromoney Award 2008 for the "Best Bank in Asia" The Chairman of MCB is Mian ansha and the President / CEO is Mr. Atif Aslam Bajwa. MCB is one of the leading banks of Pakistan with a about Rs. 280 billion and total assets of around Rs.300 billion. Incorporated in 1947, MCB soon earned the solid and conservative financial institution managed by expatriate executives. In 1974, MCB was ong with all other private sector banks. The Bank has a customer base of approximately 4 million and a tribution network of 1,026 branches, including 8 Islamic banking branches, and over 300 ATMs, in a market on of 60 million. During the last fifteen years, the Bank has concentrated on growth through improving , investment in technology and people, utilizing its extensive branch network, developing a large and stable

lot in Pakistani Chowk Branch about Opening of Accounts, Clearing and Transferring of Cheques, Issuing ooks, Demand Drafts other Documents etc. The exposure has given me a lot of knowledge especially about king operations in branch. Bank was previously working on MIBs software. In the year 2004 bank introduced ware SYMBOL. Now most of the branches located in Karachi, Lahore and Islamabad regions are working

oftware. MCB is the leading entity of the country that has always been at the forefront of economical, financial growth and stability.

nternship report

& MISSION

e preferred provider of quality financial services in the country with profitability and responsibility and to be o work

ATEMENT

ng financial services provider, partnering with our customers for a more prosperous and secure future.

TATEMENT

of committed professionals, providing innovative and efficient financial solutions to create and nurture longips with our customers. In doing so, we ensure that our shareholders can invest with confidence in us.

nternship report

try is one of the fasting growing industries of the last decade. We have seen many ups and downs in the ry. This is the requirement of Shah Abdul Latif University to do Eight Weeks Internship in any organization al exposure of the theoretical aspects studied in the semesters.

the leading banks of Pakistan with a market share of 12.5%. It is also the pioneer in innovative consumer istan. It is the largest private sector bank in Pakistan. It is the most preferred provider of quality financial usually considered the best place to work. It has developed a large stable deposit base. The bank today boasts e branch and ATM network in the country.

NTS

ly bank in Pakistan that has achieved 7 Euro Money Awards and 5 Asia Money Awards for being The Best mercial Bank in Pakistan, along with several other Awards including the Best Trade Finance of Pakistan for e years. These accolades are the proof of our consistent effort in providing the customers with utmost care

ISTORY

mercial Bank Limited. (MCB), the largest private sector bank in Pakistan. Incorporated in 1948 by the p, MCB soon earned a reputation of solid and conservative financial institution. During the 1960s the bank ith a concentration on trade finance products. In 1947, MCB was nationalizes along all other private sector as the first bank to be privatized in 1991 during the Nawaz Sharifs government financial sector deregulation g the first five years, the private management concentrated on growth utilizing its extensive network of eveloped a large and stable deposit base. Since privatization, the bank has made tremendous headway in

operational efficiency through human resource development and employment of technology. The bank today et online brand and ATM network in the country.

ocus remains on consumer banking and its growing reputation as a full service provider gives the bank an f increased competition in the banking sector in Pakistan. With a network of over 1200 branches and a team ofessionals, MCB with an international outlook and a regional focus ensures prompt customer service and utions to business and personal needs.

nternship report

banking provides customers with innovative saving schemes, products and services. The ATM network is the stan and the Pak Rupee Travelers Cheques are market leaders. MCB was the first to introduce the photo card uction of MCB Master Card. Corporate banking ensures assistance from a dedicated team of professional ors for underwriting, project finance or corporate advisory services. main departments in any branch of MCB

RTMENTS AND THEIR JOBS

BANKING

EXCHANGE

S/CREDIT

ANKING

ng deals with following services:

NCE

funds. Funds can be transferred in shape of pay orders, demand draft, mail telegram and telegraph transfer. es of different organizations, fulfillment of tenders, and collection of funds are the main functions of ximum part of general banking depends on this department.

ferent kinds of remittance:

e property of person/company that has to take the benefit of the amount being pay ordered by the concerned ders are made for the payment of fees, tender or issued for the payments of dealings. These are required for yments made between the bank and the customer in the favor of beneficiary. These are noted in printed block rly serial numbers are issued from computerized system.

DRAFT

are made for the beneficiary for payments, funds etc, these are made for outstation branches of the concerned ce is also made for the confirmation of the draft send. These are also approved and safe way of sending beneficiary.

noted by computerized system and a serial number is issued from the computer system.

nternship report

NSFER

s made with in the city for transfer of amount. An advice is also made for the confirmation of the draft send. approved and safe way of sending amount to the beneficiary. These are also noted by computerized system mber is issued from the computer system.

PHIC TRANSFER

nsfer is telegram message for transferring the amount from one branch to other branch. A message advice and

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

s on Day, Date and Code Number of branch.

T is on Currency, whether Pak rupees or foreign currency, amount and TT number issued from manual onfirmed from computerized system. OF PAY-ORDER AND DEMAND DRAFT

Demand Draft both could be paid in shape of physical payment of cash and in case transfer of amounts; the be transferred in the beneficiary account. In case of physical payment authorized signature of beneficiary are roof of amount being paid to him and in case of transferring of amount authorized signature of the beneficiary d verified for reducing risks.

ATION OF PAY-ORDER AND DEMAND FRAFT

y-Order / Demand Draft is cancelled by the permission and instructions made by the beneficiary. The d only cancel the pay-order/demand draft as the verified signatures of beneficiary are present on the advice.

made for records and they should be completed in all respects, the amount, date, its head, particulars, amount orized signatures and contra advice or voucher should be present. Vouchers are advice either debit or credit contra of each other. If any voucher of debit is passed its contra credit voucher should also be passed for the ccounts, their respective sheets.

nternship report

CLEARING

hose checks that are cleared inter branch and with in the city. As the concerned branch receive any type of first of all physical checking is taken place. For clearing procedure there should be two days margin. These heir vouchers and the amount of the cheque and voucher should be identical. Than these cheques are stamped eceiving sheet as well as feed in to the computerized system.

D CLEANING

hose cheques that are cleared out side the city. For outward clearing cheques are send because the home re accounts but checks are of other banks. Contras of these cheques are vouchers that are recordrd in the

ocess of different steps of checking of the cheque:

LY CHECKING

cheque is physically checked.

e advanced of the latest date, date should be limited to only past

ch words and figures should be written in clear writing. Any kind of over writing and cutting should be erwise it would not be passed and returned to the customer.

BEARER CHEQUES

are payees accounts head or they have marked bearer then these cheques are not labeled token.

TIION OF SIGNATURES

checked as well as verified. In case of other representative of the account holder brings the cheque then two hat person are taken.

checking of the cheques they are stamped. OF CHEQUE BOOKS

older that has opened the account he/she could credit his/her account and for this purpose there should be a o he/she could be able to credit the needed amount whatever he/she wishes. For the issuance of the cheque is advised to fill a requisite slip with his/her full names and the account number with two verified signatures. es are checked and then another requisite slip prepared by the bank staff send to the NIFT, and it issues the books after completion of the procedure in two or three days.

nternship report

r can take it by singing on the issuance register or if the absence of the account holder another person could heque book only if he/she has authorized signature of the account holder. When the cheque books are issued n the computer system from the requisite slip so when the cheques are given for the credit/transfer of amount cked. In this way neither the cheques could be repeated nor could the invalid cheques be claimed. OF ATM CARDS

ues ATM (Auto Teller Machine) cards with their PIN (Personal Identification Number) codes and when the ms for their ATM card they are checked from the list that is also issued from the head office, and the claim is he list and if the name is found than the cards are issued by taking a signature and their PIN codes are given ng signatures on their ATM card forms. The ATM card has been activated by the number provided at or with d.

ATION OF ATM CARDS

on of ATM Cards becomes necessary in the following conditions:

maged

ed or forgotten the customer

by the machine and expired

on or inactivity of the card is being processed by the request or instructions provided from the customer.

TC

the RTC has been described in step wise as follow:

bank initially seeks the information whether the person is going to purchase the RTCs on cash or on account nsaction is based on account then initially the cheque has been cleared than if the amount is sufficient than issued after deducting after the amount from the account.

of RTC is more than Rs. 25000 than tax has levied by 0.3% in case of absence of the tax deduction form. ank handed over a form for RTC sale dully filled by the concerned person and after this RTC number has the form as well as their amount and quantity. After this we note down the sold RTC in the concerned Pak rupee travelers cheques the fastest way to carry cash for high value cash transactions. MCB rupee market leader in the rupee travelers cheque market in Pakistan is celebrating nine years of leadership in July d in July 1993, MCB RTCs have been preferred choice of the rupee travelers cheques target market. With n satisfied customers in five years, MCB has been striving hard to package their product better and better

nternship report

RTCs with maximum security features, we have incorporated tele verification with the product where call and check whether the RTC is valid. At the same time, our RTC team anywhere in Pakistan ensures y service.

TICE TERM DEPOSIT

times either for seven days or for thirty days and the profit is calculated by the given percentage from the he payment time. If the customer fails to complete the duration of seven days or thirty days then no profit is mount is outstanding, only in case of automatic continuity, then the profit is calculated for the whole period en from the head office multiplying from the numbers of days divided by the 365 for the one-day profit.

RATE, NUMBER OF DAYS / 365 DAYS

ated for the six months only for outstanding SND. Zakat is also deducted but if Zakat deduction form is e bank, no Zakat will be deducted then, 10% with holding tax is also deducted from the profit to calculate net

OSIT

uid instrument, it can be cashed at any time when needed. This instrument bears no profit on it. It is mostly rpose of tenders.

CHANGE

BLISHMENT

can provide its documents containing e-form, bill of lading, short shipment notice in case of short shipment, etc. the information provided from the documents is recorded in the LC establishment portion or section in OR RETIREMENT

actions have been completed then approved documents from the concerned bank are sent to the home bank t or retirement of the LC. These transactions have recorded in the payment or retirement section of the

CURRENCY DEPOSITS

urrency Deposit relates with the foreign currency accounts, cash deposit or credit and foreign remittances.

nternship report

REMITTANCES

ived the messages through SWIFT for foreign remittances, which we record in their respective accounts, if s with Pak rupees than it was transferred in Pak rupees with the latest rate and if this relates to the foreign t is dealt with accordingly. The amount has been credited to the respective account and the head office has gainst it. After crediting the amount to the respective account. All the subsequent entries have been made in d also in the computer record as the system now have been upgraded on computers. As we are reporting ad office, so an annexure has been maintained and faxed to the head office. CREDIT

nt deals with the approval of different kinds of loans to different business entities. The loans, which are being e department, are kept with some securities such as bonds, properties and any other type of asset, which is le or more than this as a guarantee. Every branch has its own limit, if the amount of loans is with in the limit hen it is being approved by the branch but if the amount of loan is exceeding the limit then it has to make it e head office. In this case the branch stored all the required papers and sent them to the head office for

on. If the head office approved the loan then mostly the period contains a year. And if the party requires more a year the loan has been re-approved required that they should have the limit. In case if the head office do not ans then the return letter came back with the reasons of not approval of loan and if the reasons have been d by the concerned party then it could be sent again for approval. This whole process is recorded in the back e bank until the party has not refunded all the amount of loan and bank has the authority to liquidate those enting it from loss.

NKING ACCOUNT

with the directives of State Bank of Pakistan via BDP Circular No. 30, issued on 29th November 2005, the Account has been launched with effect from 27th February 2006. This product has been introduced to w income group as well as the existing account holders who wish to convert their regular savings or current asic Banking Account.

king Account is a current account and can be opened with a minimum initial deposit of Rs. 1000/- only. rs will be allowed 2 deposit transactions (each cash or through clearing) and 2 withdrawals (cash or clearing) ll customer-initiated transactions over and above this limit will be charged a transaction fee. However charge cash withdrawals are allowed through MCBs own ATMs.

nternship report

OR FOREIGN CURRENCY ACCOUNTS

CCOUNT

n Currency Savings Account offers you attractive returns on your foreign currency investment. Unlimited ility, profit credited to your account on a half yearly basis. You can avail a credit facility up to 75% of the alue. A foreign currency account can be opened at any of our foreign exchange dealing branches.

EE MAXIMIZER ACCOUNT

Maximizer Account provides you an opportunity to convert your the recent changes in the economic scenario d the Rupee Maximizer Account exclusively for its Foreign Currency Account Holders. MCB Foreign ount holders now have an opportunity to convert their Foreign Currency Account balances into Pak Rupees it at the rate of 12.6% per annum. Other features include profits calculated on a daily product basis, no the number of the withdrawals, no minimum deposit required. Special benefits include one free ATM card lity free of cost. MCB Rupee Maximizer Account is being advertised in leading daily newspaper as well as oreign Currency Account into Pak Rupee and earn profit at the rate of 12.6% per annum.

ACCOUNT

n Currency Current Account offers you the convenience of unlimited withdrawals i.e. access to your funds want without any notice. There is no limit on the number of transactions you make in a day.

I BACHAT ACCOUNT

ali Bachat or Dollar Khushali Account, both require low minimum income deposits plus you receive profit on asis. Get a saving with current account facilities through saving 365 or double your investment through and receive monthly profits through monthly Khushali.

ANCED SAVING ACCOUNT

w the small savers, looking for higher returns on their savings, MCB introduces the Enhanced Saving ). This account can be operated via all the channels available at the MCB such as Cheques, Virtual Banking, g, MCB Smart Card and ATMs/Point of sales all across Pakistan. MCB ESA, governed under PLS rules, can h a minimum initial deposit of Rs. 5000 and the profit shall be calculated on an average basis maintained by uring that month.

nternship report

l be the slabs used for profit calculation:

alance is greater than Rs. 20,000 standard PLS rates will apply.

alance less than Rs. 20,000 (or equal to 20,000) with up to 4 withdrawal transactions per month (excluding nd VB) 4.0% p.a.

alance is less than Rs.20,000 (or equal to 20,000) with over 4 withdrawal transactions per month (excluding nd VB) then standard PLS rates will apply.

ioned above are expected and shall be revised at least every six months. Average account balances can 000 during a month. However, in that case, they shall be paid profit as per the standard PLS rates, as labs above. Profit shall be calculated on average basis and shall be credited to the account after each calendar

RTNERS IN BILL PAYMENT

24 hours a day, a day, 7 days, and a week. Make total payments of up to Rs. 20,000 per day. Carry out up to per day per card. Make either full or partial payments. Full payment is required for PTCL only. Recharge account for Mobilink, Ufone and Telenor as per their fixed slabs. Pay as a registered or non-registered user. ill help you avoid the time delay in entering details each time you carry out a transaction. ATM

CB Virtual

CB Call Centre

ENT BANKING

t banking team has emerged as a leading player in Pakistans investment banking arena. The team handles orate finance and capital markets related transactions, within these areas the team has developed expertise in: Underwriting

ements

ce Certificates

cation

t of Non-Fund Facilities

d Acquisitions

dvisory

MIT EXPRESS

stan, anywhere in Pakistan, the fastest way of getting your money across to Pakistan. Remit express offers ance from U.A.E and Saudi Arabia. Your relatives friends or business associates receive drafts within 72 mit express has been specifically designed to meet the needs of the expatriate Pakistani community residing ntries.

nternship report

est way to remit funds, remittance within 24 to 74 hours, personal delivery to the beneficiary, delivery o the remitter, message facilities for both parties. Your beneficiary will receive the amount even if he/she does CB account.

L LOAN

praise and celebrate your life, the more there is in life to celebrate MCB personal loan shortens the distance dreams and your celebrations. It is fast, flexible and affordable, speedy loan approval. No guarantor / teral required. Borrow up to Rs. 1,000,000. 1 to 5 year tenures, partial and full adjustments allowed anytime

re, optional insurance, equal monthly installments, lower interest rates, higher loan limits, loan amount me after nine months. You as an individual can gain and benefit the through MCB consumer banking. In riendly, efficient and attentive personalized banking services, a unique banking relationship experienced by nt.

AND SERVICES

work of over 315 on-line branches in the country and growing. Providing customers with 24 * 7 real time onn facilities. DAY BANKING

enience of extended banking hours from 9 to 5, even on Saturdays, for satisfying your banking needs at all Banking branches across the country where you are now served with a wide range of services through the

unt for customers with substantial balances, offering profit on a daily product basis with the facility of drawals.

IAL RUPEE TERM DEPOSITS

l Rupee Term Deposits offer a very attractive term investment option with ease and convenience. Tenors ble are of 3 months, 6 months, 1 year, 3 years and 5 years. You can also avail a credit facility up to 75% of sits.

nternship report

KERS

ction for your valuables. Lockers of different capacities are available nationwide.

T EXPRESS

emittances with a two-way messaging facility delivered at your doorstop within 24 to 72 hours.

MIC BANKING

Banking provides Riba Free and Shariah Complaint solutions to various customer segments in a growing es. With the help of Shariah specialists, lawyers and professional commercial bankers, we have the best er your needs the Islamic way.

DS

f Sale acquiring network facilitating acceptance of all major card brands.

ard and ATM card holders can avail cash withdrawal facility at over 900,000 ATMS worldwide.

ard and ATM card holders enjoy the convenience of shopping at over 5 million POS locations globally.

UAL INTERNET BANKING

the convenience of banking on the internet. Whether at office, home or traveling log on to www.mcb.com.pk our access to all your accounts at MCB for the largest array of services.

nternship report

L CENTRE

nswers to your queries about banking services. ATM services, mobile banking services, RTC services, telees and MCB product information.

ILE BANKING

ur fingerprints. Dial in anytime to get information regarding balance and mini statements.

24-HOURS CASH

rgest network of over 210 ATMs and growing. Get 24-hour convenience of cash withdrawal, mini-statement, nd funds transfer services.

ectronic hub for ATM sharing plus other touch points. Members include 12 local financial institutions sharing and bureau services. Pakistans largest operating switch with the highest transactions volume.

RT CARDS

ard - a secure instrument of payment, offering Cash Free convenience. It provides 24-hour direct access to ount and unmatched functionalities.

Y BILL PAY

l Pay is an easy solution to pay Utility and Mobile Phone bills. MCB ATM Card or MCB Smart Card holders heir bills through MCB ATMs, MCB Virtual-Internet Banking and MCB Call Centre with security and peace

TE FINANCING

ss to diversified financing options, including working capital loans, term loans, trade finance services and nking.

FINANCING

antly at any MCB branch. Offering same day financing facility against liquid collateral at competitive pricing.

nternship report

EE TRAVELLERS CHEQUE

ly accepted way to pay cash for travel-related purposes. A safe and secure way to make payments

NESS SARMAYA

Sarmaya is a Running Finance facility against your residential property. It offers Running Financing up to h low mark-up and BTF at competitive rates.

RA GHAR

har is an ideal Home Finance product that lets you purchase, renovate or construct your home the way you

anted. Financing available is up to Rs. 20 million.

4U

Auto Finance is your move that gets you not only a car of your own choice but leads you to the best in life. It ith competitive mark-up, flexible conditions, easy processing and above all, no hidden costs.

nternship report

dy of internship, I drew the following conclusions.

as implemented a SYMBOL system which promises the efficiency growth of the bank. MIS and n of branches has enhanced the efficiency of the bank. Delegation of authority, wide branch network with on and wide participation of employees in the decision making provides the bank a competitive edge. The a conducive environment for career growth. The bank pays a too low rate of interest on deposits which in r its customers. There are too lengthy formalities and procedures involved in mortgage of properties offered the bank.

k made substation progress, recording strong growth in revenues and earnings. The main derives were reach, strengthened human resources. Including changes at the senior management level, enhanced product roved control and vigilant credit risk management. Our primary focus was our customers and we worked ugh the year to increase satisfaction and loyalty as the needs and expectation of our diversified base of inued to expand. A key initiative aimed at including a segment based approach to the overall business was n of the retail banking group into commercial and consumer banking groups. This expected to help the MCB ing customer centric solution in a more group generated healthy deposit and strengthened its SME lending.

nternship report

n be provided with job rotations so each of the employees is capable of doing others work in case of s will ensure no delays are met.

ning a lot of profit stock options should be given to every employee.

ed more computer training.

o invest more in technology and bring all banking procedures up-to-date.

implement advance technology and make it one window shopping or one window service where each teller andling every transaction for example payments, deposits, transfers, bill payments, foreign exchange, ATM opening of new account. This will make MCB more proficient in customer service.

rk needs to be updated more to handle transfers, deposits, bill payments and print statements. This will free me.

nternship report

of MCB

ort of MCB 2008

ww.mcb.com.pk

resident of MCB 2004 Page No: 08 to 12

erview with Nazeer Ahmed Shaikh (Branch Manager)

erview with Aamir Ali Mangi (Operation Manager)

ternship report

awn to the fact that the copy right of this report rests with author. This copy of report has been supplied on any one who consults it is the understood to recognize that its copy right with its author and no information may be published without the prior written consent author.

ntains material, which is the property of the MCB Limited, Karachi and is clearly marked as such. Although n me their kind permission for its reproduction. This material remains protected under their copy right.

y be made available for consultation within University / Department of Commerce library and may be r lent to other libraries for the purpose of consultation.

ternship report

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